Federal Register - July 7, 2021
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Source: Federal Register
Federal Register / Vol. 86, No. 127 / Wednesday, July 7, 2021 / Proposed Rules II. Authority and Background
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A. Authority Title III, Parts B 5 and C 6 of the Energy Policy and Conservation Act, as amended, EPCA or the Act, Public Law 94163 42 U.S.C. 62916317, as codified, established the Energy Conservation Program for Consumer Products and Certain Industrial Equipment.7 Under EPCA, DOEs energy conservation program for covered products consists essentially of four parts: 1 Testing; 2 certification and enforcement procedures; 3
establishment of Federal energy conservation standards; and 4 labeling.
Subject to certain criteria and conditions, DOE is required to develop test procedures to measure the energy efficiency, energy use, water use as applicable, or estimated annual operating cost of each covered product and covered equipment during a representative average use cycle or period of use. 42 U.S.C. 6293; 42 U.S.C.
6314 Manufacturers of covered products and covered equipment must use the prescribed DOE test procedure when certifying to DOE that their products and equipment comply with the applicable energy conservation standards adopted under EPCA and when making any other representations to the public regarding the energy use or efficiency of those products. 42 U.S.C.
6293c; 42 U.S.C. 6295s; 42 U.S.C.
6314a; and 42 U.S.C. 6316a Similarly, DOE must use these test procedures to determine whether the products comply with energy conservation standards adopted pursuant to EPCA. 42 U.S.C. 6295s; 42
U.S.C. 6316a In addition, pursuant to EPCA, any new or amended energy conservation standard for covered products and at least certain types of equipment must be designed to achieve the maximum improvement in energy efficiency that is technologically feasible and economically justified. 42 U.S.C.
6295o2A; 42 U.S.C. 6316a In determining whether a standard is economically justified, EPCA requires DOE, to the greatest extent practicable, to consider the following seven factors:
4 These proposed revisions are separate from and complementary to the revisions contained in DOEs proposed regulatory text from its April 2021 NOPR.
See 86 FR 18901, 1891518921 April 12, 2021.
5 For editorial reasons, upon codification in the U.S. Code, Part B was redesignated Part A.
6 Part C was added by Public Law 95619, Title IV, 441a. For editorial reasons, upon codification in the U.S. Code, Part C was redesignated Part A
1.
7 All references to EPCA in this document refer to the statute as amended through Energy Act of 2020, Public Law 116260 Dec. 27, 2020.
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1 The economic impact of the standard on the manufacturers and consumers;
2 the savings in operating costs, throughout the estimated average life of the products i.e., life-cycle costs, compared with any increase in the price of, or in the initial charges for, or operating and maintaining expenses of, the products which are likely to result from the imposition of the standard; 3
the total projected amount of energy, or as applicable, water, savings likely to result directly from the imposition of the standard; 4 any lessening of the utility or the performance of the products likely to result from the imposition of the standard; 5 the impact of any lessening of competition, as determined in writing by the Attorney General, that is likely to result from the imposition of the standard; 6
the need for national energy and water conservation; and 7 other factors DOE
finds relevant. 42 U.S.C.
6295o2Bi Furthermore, the new or amended standard must result in a significant conservation of energy 42
U.S.C. 6295o3B; 42 U.S.C.
6313a6; and 42 U.S.C. 6316a and comply with any other applicable statutory provisions.
B. Background DOE conducted an effort between 1995 and 1996 to improve the process it follows to develop energy conservation standards for covered appliance products. This effort involved reaching out to many different stakeholders, including manufacturers, energy-efficiency advocates, trade associations, State agencies, utilities, and other interested parties for input.
The result was the publication of the 1996 Process Rule. 61 FR 36974. This document was codified at 10 CFR part 430, subpart C, appendix A, and it became known colloquially as the Process Rule. The goal of the Process Rule was to elaborate on the procedures, interpretations, and policies that would guide the Department in establishing new or revised energy conservation standards for consumer products. The rule was issued without notice and comment under the Administrative Procedure Acts APA exception for interpretative rules, general statements of policy, or rules of agency organization, procedure, or practice.
5 U.S.C. 553bA
On December 18, 2017, DOE issued an RFI on potential revisions to the Process Rule. 82 FR 59992. DOE subsequently published a NOPR regarding the Process Rule in the Federal Register on February 13, 2019. 84 FR 3910. DOE
held public meetings for both the RFI
and NOPR. After considering the
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comments it received, DOE then published a final rule in the Federal Register on February 14, 2020, which significantly revised the Process Rule.
85 FR 8626.
While DOE issued the 1996 Process Rule without notice and comment as an interpretative rule, general statement of policy, or rule of agency organization, procedure, or practice, the February 2020 Final Rule was issued as a legislative rule subject to notice and comment. For several reasons, as stated throughout this document and in the April 2021 NOPR, DOE believes the Process Rule is best described and utilized as generally applicable guidance that may guide, but not bind, the Departments rulemaking process. In accordance with E.O. 13990, DOE is using a notice and comment process to propose revisions to the Process Rule.
86 FR 7037.
III. Discussion of Proposed Revisions to the Process Rule The following sections discuss the additional, proposed revisions to the Process Rule and request comment on those proposals. DOE is currently only soliciting comments on the new, additional revisions proposed in this NOPR and is not soliciting comments on the revisions proposed in the April 2021
NOPR. In addition to those specific requests for comment, DOE requests comment, data, and information regarding all aspects of this notice of proposed rulemaking.
A. Coverage Determinations In addition to specifying a list of covered products and equipment, EPCA
contains provisions that enable the Secretary of Energy to classify additional types of consumer products and commercial/industrial equipment as covered within the meaning of EPCA. 42 U.S.C. 6292b; 42 U.S.C.
6312b This authority allows DOE to consider regulating additional products and equipment to further the goals of EPCA, i.e., to conserve energy, as long as certain statutory requirements are met. Under 42 U.S.C. 6312b, DOE is required to include commercial/
industrial equipment as covered equipment by rule. While there is no corresponding requirement to include consumer products as covered products by rule,8 DOE conducts coverage determination rulemakings for both 8 Under 42 U.S.C. 6292b, DOE is authorized to classify a consumer product as a covered product if certain conditions are met. But there is no mention of DOE having to make such classifications by rule.
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