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Federal Register / Vol. 86, No. 149 / Friday, August 6, 2021 / Proposed Rules
certification regulations that may be adopted by a subsequent final rule, nor do they represent the entirety of the information required in a certification report. Upon completion of this rulemaking, DOE will revise the reporting templates to reflect the final certification regulations once DOE has received approval from the Office of Management and Budget OMB to collect the revised information. The specific templates that should be used for certifying compliance of covered products and equipment to DOE are available for download at https
www.regulations.doe.gov/ccms/
templates.
IV. Procedural Issues and Regulatory Review A. Review Under Executive Orders 12866 and 13563
OMB has determined that this rulemaking does not constitute a significant regulatory action under section 3f of Executive Order 12866, Regulatory Planning and Review, 58
FR 51735 Oct. 4, 1993. Accordingly, this action was not subject to review under the Executive order by the Office of Information and Regulatory Affairs OIRA at OMB.

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B. Review Under the Regulatory Flexibility Act The Regulatory Flexibility Act 5
U.S.C. 601 et seq. requires preparation of an initial regulatory flexibility analysis IRFA for any rule that by law must be proposed for public comment, unless the agency certifies that the rule, if promulgated, will not have a significant economic impact on a substantial number of small entities.
As required by Executive Order 13272, Proper Consideration of Small Entities in Agency Rulemaking, 67 FR 53461
August 16, 2002, DOE published procedures and policies on February 19, 2003, to ensure that the potential impacts of its rules on small entities are properly considered during the DOE
rulemaking process. 68 FR 7990. DOE
has made its procedures and policies available on the Office of the General Counsels website: https energy.gov/
gc/office-general-counsel.
DOE has tentatively concluded that the removal of outdated reporting requirements and the addition of new reporting requirements as proposed in this NOPR would not impose additional costs for manufacturers of CFLKs, GSILs, and IRLs, ceiling fans, consumer furnaces and boilers except electric steam boilers, dishwashers, CCWs, battery chargers, and DPPPs for the reasons discussed in section III of this
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document. For these products and equipment, DOE has tentatively determined that the proposed amendments would not impose additional costs for manufacturers because manufacturers are already submitting certification reports to DOE
and should have readily available the information that DOE is proposing to collect as part of this rulemaking, and for DPPPs, the proposed amendments clarify the existing reporting requirements. Consequently, for these types of covered products and equipment, the changes proposed in this NOPR would not be expected to have a significant economic impact on related entities regardless of size.
However, for electric steam boilers, no certification is currently required. This proposal would amend 10 CFR 429.18
to include a requirement to certify the standby mode and off mode energy consumption for electric steam boilers.
This amendment aligns the certification requirements with the existing energy conservation standard requirements. 10
CFR 430.32e1iii and e2iiiB.
For electric steam boiler manufacturers that are not already certifying, there could be additional paperwork costs.
Likewise, for grid-enabled water heaters, this proposal would add reporting requirements to align with the requirements of EPCA. EPCA, as amended, requires manufacturers to report the quantity of grid-enabled water heaters that the manufacturer ships each year and requires DOE to keep the shipment data reported by manufacturers as confidential business information. 42 U.S.C. 6295e6Ci iii Therefore, grid-enabled water heater manufacturers would incur additional paperwork costs.
The Small Business Administration SBA considers a business entity to be a small business, if, together with its affiliates, it employs less than a threshold number of workers specified in 13 CFR part 121. The size standards and codes are established by the 2017
North American Industry Classification System NAICS.
Electric steam boiler manufacturers are classified under NAICS code 333414, Heating Equipment except Warm Air Furnaces Manufacturing.
The SBA sets a threshold of 500
employees or fewer for an entity to be considered as a small business in this category. DOE used available public information to identify potential small manufacturers. DOE accessed the Compliance Certification Database 19
19 U.S. Department of Energy Compliance Certification Management System Available at:
https www.regulations.doe.gov/ccms.

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and reviewed manufacturer literature to create a list of companies that import or otherwise manufacture the electric steam boilers covered by this proposal.
Using these sources, DOE identified four manufacturers of electric steam boilers.
All four manufacturers are small businesses. DOE estimates that the increased certification burden would result in 35 hours per manufacturer to develop the required certification reports. Therefore, based on a fully burdened labor rate of $100 per hour, the estimated total annual cost to manufacturers would be $3,500 per manufacturer.20 Using available public information, DOE estimated the annual revenue for all four small businesses that manufacture electric steam boilers.
The small business with the least annual revenue has an annual revenue of approximately $5.4 million.
Therefore, this additional certification cost of $3,500 per manufacturer represents significantly less than 1
percent of each identified manufacturers annual revenue.
Grid-enabled water heater manufacturers are classified under NAICS code 335220, Major Household Appliance Manufacturing. The SBA
sets a threshold of 1,500 employees or fewer for an entity to be considered as a small business in this category. DOE
used available public information to identify potential small manufacturers.
DOE accessed the Compliance Certification Database 21 and the certified product directory of the Air Conditioning, Heating and Refrigeration Institute 22 AHRI, and the Department also reviewed manufacturer literature. These actions allowed DOE to create a list of companies that import or otherwise manufacture the grid-enabled water heaters. Using these sources, DOE
identified five manufacturers of gridenabled water heaters. The five manufacturers exceed the SBA
threshold to be considered a small business. Thus, DOE did not identify any small business manufacturers of grid-enabled water heaters.
DOE reviewed this proposed rule under the provisions of the Regulatory Flexibility Act and the policies and procedures published on February 19, 2003. On the basis of the foregoing, DOE
20 The estimates of 35 hours per response and $100 per hour fully burdened labor rate are based on the collection of information estimates for consumer products and commercial/industrial equipment subject to energy or water conservation standards. See 82 FR 57240 Dec. 4, 2017.
21 U.S. Department of Energy Compliance Certification Management System Available at:
https www.regulations.doe.gov/ccms.
22 AHRI Directory of Certified Product Performance Available at: https
www.ahridirectory.org/Search/SearchHome.

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