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Federal Register / Vol. 86, No. 164 / Friday, August 27, 2021 / Proposed Rules
TABLE II.3FEDERAL ENERGY CONSERVATION STANDARDS FOR MEDIUM-VOLTAGE DRY-TYPE DISTRIBUTION
TRANSFORMERS
Single-phase
Three-phase BIL

kVA

2045 kV

4695 kV

96 kV

Efficiency %

Efficiency %

Efficiency %

15
25
37.5
50
75
100
167
250
333
500
667
833

98.1
98.33
98.49
98.6
98.73
98.82
98.96
99.07
99.14
99.22
99.27
99.31

97.86
98.12
98.3
98.42
98.57
98.67
98.83
98.95
99.03
99.12
99.18
99.23

lotter on DSK11XQN23PROD with PROPOSALS1

B. Current Process On June 18, 2019, DOE published notice that it was initiating an early assessment review to determine whether any new or amended standards would satisfy the relevant requirements of EPCA for a new or amended energy conservation standard for distribution transformers and a request for information RFI. 84 FR 28239 June 2019 Early Assessment Review RFI.
Specifically, through the published notice and request for information, DOE
sought data and information that could enable the agency to determine whether DOE should propose a no new standard determination because a more stringent standard: 1 Would not result in a significant savings of energy; 2 is not technologically feasible; 3 is not economically justified; or 4 any combination of foregoing. Id.
Comments received to date as part of the current process have helped DOE
identify and resolve issues related to the preliminary analyses. Chapter 2 of the preliminary TSD summarizes and addresses the comments received.
III. Summary of the Analyses Performed by DOE
For the equipment covered in this preliminary analysis, DOE conducted in-depth technical analyses in the following areas: 1 Engineering; 2
markups to determine product price; 3
energy use; 4 life cycle cost LCC
and payback period PBP; and 5
national impacts. The preliminary TSD
that presents the methodology and results of each of these analyses is available at www.regulations.gov/
docket/EERE-2019-BT-STD-0018.

VerDate Sep<11>2014

BIL

16:25 Aug 26, 2021

Jkt 253001

98.53
98.63
98.80
98.91
98.99
99.09
99.15
99.20

kVA

A. Engineering Analysis The purpose of the engineering analysis is to establish the relationship between the efficiency and cost of distribution transformers. There are two elements to consider in the engineering analysis; the selection of efficiency levels to analyze i.e., the efficiency analysis and the determination of equipment cost at each efficiency level i.e., the cost analysis. In determining the performance of higher-efficiency equipment, DOE considers technologies and design option combinations not eliminated by the screening analysis.
For each equipment class, DOE
estimates the manufacturer production cost MPC for the baseline as well as
Frm 00017

Fmt 4702

4695 kV

96 kV

Efficiency %

Efficiency %

Efficiency %

15
30
45
75
112.5
150
225
300
500
750
1,000
1,500
2,000
2,500

DOE also conducted, and has included in the preliminary TSD, several other analyses that support the major analyses or are preliminary analyses that will be expanded if DOE
determines that a NOPR is warranted to propose amended energy conservation standards. These analyses include: 1
The market and technology assessment;
2 the screening analysis, which contributes to the engineering analysis;
and 3 the shipments analysis, which contributes to the LCC and PBP analysis and the national impact analysis NIA. In addition to these analyses, DOE has begun preliminary work on the manufacturer impact analysis and has identified the methods to be used for the consumer subgroup analysis, the emissions analysis, the employment impact analysis, the regulatory impact analysis, and the utility impact analysis.
DOE will expand on these analyses in the NOPR should one be issued.

PO 00000

2045 kV

Sfmt 4702

97.5
97.9
98.1
98.33
98.52
98.65
98.82
98.93
99.09
99.21
99.28
99.37
99.43
99.47

97.18
97.63
97.86
98.13
98.36
98.51
98.69
98.81
98.99
99.12
99.2
99.3
99.36
99.41

98.57
98.69
98.89
99.02
99.11
99.21
99.28
99.33

higher efficiency levels. The output of the engineering analysis is a set of costefficiency curves that are used in downstream analyses i.e., the LCC and PBP analyses and the NIA.
DOE converts the MPC to the manufacturer selling price MSP by applying a manufacturer markup. The MSP is the price the manufacturer charges its first customer, when selling into the equipment distribution channels. The manufacturer markup accounts for manufacturer nonproduction costs and profit margin. DOE
developed the manufacturer markup by examining publicly available financial information for manufacturers of the covered product.
See Chapter 5 of the preliminary TSD
for additional detail on the engineering analysis.
B. Markups Analysis The markups analysis develops appropriate markups e.g., retailer markups, distributor markups, contractor markups in the distribution chain and sales taxes to convert MSP
estimates derived in the engineering analysis to consumer prices, which are then used in the LCC and PBP analysis.
At each step in the distribution channel, companies mark up the price of the product to cover business costs and profit margin.
DOE developed baseline and incremental markups for each actor in the distribution chain. Baseline markups are applied to the price of products with baseline efficiency, while incremental markups are applied to the difference in price between baseline and higher-efficiency models the
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