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Federal Register / Vol. 86, No. 247 / Wednesday, December 29, 2021 / Rules and Regulations
economic justification, and emissions reductions with greater weight than the potential for fuel switching in all ongoing and upcoming rulemakings, unless otherwise explicitly directed by Congress. CEC, No. 134 at pp. 3, 4
ASAP et al. commented that setting condensing standards have the potential to save U.S. consumers and businesses more than $100 billion on their energy bills through 2050 while reducing cumulative carbon dioxide emissions by more than 500 million metric tons.
ASAP et al., No 143 at p. 1.
As discussed previously, given the multitude of covered products and equipment for which DOE is responsible, the Department has found the concept of feature to be very casespecific. 86 FR 4776, 4797 Jan. 15, 2021. As such, DOE finds that it would not be practicable, as suggested by the CA IOUs, to develop guidelines as to the type and degree of the information and data necessary to make a determination under the features provision.
With regard to rulemakings for residential furnaces and commercial water heaters, as noted, DOE withdrew its March 12, 2015 proposed rule and September 23, 2016 supplemental proposed rule for energy conservation standards for non-weatherized gas furnace and mobile home gas furnaces, as well as its May 31, 2016 proposed rule for energy conservation standards for commercial water heating equipment, for further proceedings consistent with the interpretation contained in the January 2021 Final Interpretive Rule. 86 FR 4776, 4817 Jan.
15, 2021; see also 86 FR 3873 Jan. 15, 2021.
As explained in this document, after a careful review of the available information and public comments received, DOE is adopting the interpretation as proposed in the August 2021 NOPIR, which reinstates its historical interpretation of the features provision. This change in approach should address any competition concerns or preemption waiver issues mentioned by A.O. Smith.
With the finalization of this interpretation, DOE plans to once again evaluate whether amended energy conservation standards for the subject covered products/equipment would result in significant savings of energy, be technologically feasible, and be economically justified, consistent with its latest interpretation. As always, DOE
welcomes public comments from all interested parties and will take into account the viewpoints expressed in this proceeding. As part of that evaluation, DOE will consider the comments addressing the technical and
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economic analyses, as well as any associated assumptions.
As explained in the August 2021
NOPR, in any future rulemaking, DOE
will make clear that the rulemakings for residential furnaces and commercial water heating equipment have been subject to multiple rounds of public comment, including public meetings, and extensive records have been developed in the relevant dockets. See Docket Number EERE2014BTSTD
0031 and Docket Number EERE2014
BTSTD0042, respectively.
Consequently, DOE wishes to reassure stakeholders that the information obtained through those earlier rounds of public comment, information exchange, and data gathering have not gone to waste. Instead, DOE anticipates building upon these existing records through further notice and comment rulemaking.
Such an approach also reflects DOEs cognizance of the statutory deadlines associated with the energy conservation standards for residential furnaces and commercial water heating equipment.
Further, any future rulemakings would evaluate potential energy conservation standards according to the requirements of EPCA and consistent with this document. Comments pertaining to the details of DOEs economic analyses will be addressed, as appropriate, in those individual energy conservation standards rulemakings.
III. Conclusion In summary, for this final interpretive rule, DOE has concluded that differences in cost or complexity of installation between different methods of venting e.g., a condensing residential furnace versus a non-condensing residential furnace; a condensing commercial water heater versus a noncondensing commercial water heater do not make any method of venting a performance-feature under 42 U.S.C.
6295o4 or 42 U.S.C.
6313a6BiiiIIaa; 42 U.S.C.
6316a for certain covered equipment.
Relatedly, DOE has concluded that the possibility that installing an appliance that employs a particular method of venting e.g., a non-condensing residential furnace, a non-condensing commercial water heater may be less costly or less complex than installing a product that employs a different method of venting e.g., a condensing furnace; a condensing commercial water heater does not justify separating the products/
equipment into different product/
equipment classes under 42 U.S.C.
6295q1 or as applicable to certain covered equipment under 42 U.S.C.
6316a.

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Based on the foregoing discussion and careful consideration of available information and comments received, DOE hereby revises its interpretation of EPCAs features provision in the context of condensing and noncondensing technology used in furnaces, water heating equipment, and similarly-situated appliances where permitted by EPCA along the lines discussed previously elsewhere in this document. DOE concludes that in the context of residential furnaces, commercial water heaters, and similarly-situated products/equipment, use of non-condensing technology and associated venting is not a performance-related feature for the purpose of the EPCA prohibitions at 42
U.S.C. 6295o4; 42 U.S.C.
6313a6BiiiIIaa; 42 U.S.C.
6316a.
DOE has determined that its interpretation is the better reading of the relevant language of EPCA and DOEs statutory obligation to establish energy conservation standards for covered products and equipment. Additionally, the interpretation allows DOE to consider more-efficient standards for certain products and equipment, consistent with the agencys statutory mandate.
DOE is revising its application of the features provisions in 42 U.S.C.
6295o4 and 42 U.S.C.
6313a6BiiiIIaa as an interpretive rule within the meaning of the Administrative Procedure Act APA. 5 U.S.C. 5514, 5 U.S.C. 553b.
DOE published the proposed interpretive rule in the Federal Register 86 FR 48049 August 27, 2021 to solicit comment and to provide the public with a clear and transparent explanation of DOEs view of a specific legal question, thereby following a process similar to that which resulted in the January 2021 Final Interpretive Rule.
Review Under Executive Order 12866
The Office of Information and Regulatory Affairs OIRA in the Office of Management and Budget OMB
waived review of this interpretive rule under Executive Order 12866, Regulatory Planning and Review. 58
FR 51735 Oct. 4, 1993.
IV. Approval of the Office of the Secretary The Secretary of Energy has approved publication of this notification of final interpretive rule.
Signing Authority This document of the Department of Energy was signed on December 20,
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