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Federal Register / Vol. 86, No. 11 / Tuesday, January 19, 2021 / Rules and Regulations
2. Installation Cost Installation cost includes labor, overhead, and any miscellaneous materials and parts needed to install the equipment. In response to the April 2020 NOPD, DOE did not receive any information on SEM consumer installation costs and has relied on the same approach to estimate installations costs for this final determination. Based on information from the March 2010
Final Rule and installation cost data from RS Means Electrical Cost Data 2020,31 DOE estimated that installation costs do not increase with equipment efficiency except in terms of shipping costs depending on the weight of the more efficient motor.32 To arrive at total installed costs, DOE included shipping costs as part of the installation costs.
These were based on weight data from the engineering analysis, which accounted for updated manufacturer catalog data collected by DOE.
See Chapter 8 of the TSD for more information on the installation costs for SEMs.
3. Annual Energy Consumption For each sampled consumer, DOE
determined the energy consumption for SEMs in each standards case analyzed using the approach described in section IV.E of this final determination.
4. Energy Prices In response to the April 2020 NOPD, DOE did not receive any comments on electricity prices and relied on the same approach to develop national annual marginal and average prices and estimate energy prices in future years.
DOE updated data sources to the most recent information available. For electricity prices, DOE used average and marginal electricity prices. As in the April 2020 NOPD, DOE estimated these prices using the methodology provided in two Lawrence Berkeley National Laboratory reports Coughlin and Beraki.33 In addition, in preparation for
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31 RS

Means. Electrical Cost Data, 43rd Annual Edition, 2020. Rockland, MA. p. 315.
32 For more details see chapter 8 of the 2010 small electric motors final rule TSD, at https
www.regulations.gov/document?D=EERE-2007-BTSTD-0007-0036.
33 See Coughlin, K. and B. Beraki. Residential Electricity Prices: A Review of Data Sources and Estimation Methods. 2018. Lawrence Berkeley National Lab. LBNL, Berkeley, CA United States.
Report No. LBNL2001169. Last accessed May 21, 2019. https ees.lbl.gov/publications/residentialelectricity-prices-review. See also Coughlin, K. and B. Beraki. Non-residential Electricity Prices: A
Review of Data Sources and Estimation Methods.
2019. Lawrence Berkeley National Lab. LBNL, Berkeley, CA United States. Report No. LBNL
2001203. Last accessed May 21, 2019. https
ees.lbl.gov/publications/non-residential-electricityprices.

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this final determination, DOE used updated data published from the Edison Electric Institute Typical Bills and Average Rates reports for summer and winter 2019 to reflect the latest electricity price information available.
To estimate energy prices in future years, DOE multiplied the energy prices by a projection of annual change in average price consistent with the projections in the Energy Information Administrations EIAs Annual Energy Outlook 2020 AEO 2020,34 which has an end year of 2050. To estimate price trends after 2050, DOE used the average annual rate of change in prices from 2028 to 2050.
5. Maintenance and Repair Costs Repair costs are associated with repairing or replacing SEM components that have failed; maintenance costs are associated with maintaining the operation of the equipment. SEMs are usually not repaired. Most small motors are mass produced and are not constructed or designed to be repaired because the manufacturing process uses spot welding welds and rivets to fasten or secure the frame and assembled components, not nuts and bolts meaning that the SEM cannot be readily disassembled and reassembled. In addition, during the rulemaking for the March 2010 Final Rule, DOE found no evidence that repair or maintenance costs, if any, would increase with higher motor energy efficiency.35 DOE
reviewed more recent motor repair cost data for SEMs and found no evidence that maintenance and repair costs increase with efficiency for SEMs in scope.36 In response to the April 2020
NOPD, NEMA supported DOEs finding that SEMs are generally not repaired.
NEMA, No. 22 at p. 4
Accordingly, similar to what was done in the April 2020 NOPD, DOE did not account for any repair costs in the LCC calculation.
See Chapter 8 of the TSD for more information on the repair and maintenance costs for SEMs.
6. Motor Lifetime To characterize lifetimes in a manner to reflect that this factor depends on an 34 U.S. Energy Information Administration, Office of Energy Analysis, U.S. Department of Energy. U.S.
Energy Information Administration. Annual Energy Outlook 2020 with projections to 2050. 2020.
Washington DC. 20585 Last accessed August 11, 2020. https www.eia.gov/outlooks/AEO/pdf/
AEO2020.pdf.
35 For more details see chapter 8 of the 2010 small electric motors final rule TSD, at https
www.regulations.gov/document?D=EERE-2007-BTSTD-0007-0036.
36 Vaughens 2013, Vaughens Motor & Pump Repair Price Guide, 2013 Edition. Available at www.vaughens.com.

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SEMs application, DOE used two Weibull distributions.37 One characterizes the motor lifetime in total operating hours i.e., mechanical lifetime, while the other characterizes the lifetime in years of use in the application e.g., a pump.
In response to the April 2020 NOPD, NEMA commented in support of the lifetime distributions developed by DOE. NEMA, No. 22 at pp. 45
Consistent with the approach used in the April 2020 NOPD, DOE used mechanical lifetime data from the March 2010 Final Rule analysis and from a 2012 report from DOEs Advanced Manufacturing Office 38 to derive an estimated average mechanical lifetime of 30,000 hours for CSCR
motors and 40,000 hours for polyphase motors. The Weibull parameters from the March 2010 Final Rule were used to derive these lifetime distributions.39 In the course of the LCC analysis, DOEs current analysis further combines these two distributions with OEM application lifetimes to estimate the distribution of SEM lifetimes. DOE determined the mechanical lifetime of each motor in years by dividing its mechanical lifetime in hours by its annual hours of operation. DOE then compared this mechanical lifetime in years with the sampled application lifetime also in years, and assumed that the motor would be retired at the younger of these two ages. In the March 2010 Final Rule, this approach resulted in projected average lifetimes of 7 years for singlephase CSCR motors and 9 years for polyphase motors. Because of updates made to the annual operating hours see section IV.E.3 and calculation rounding, the updated analysis for this final determination yielded average lifetimes of 7.0 years for single-phase CSCR motors and 8.7 years for polyphase motors.
See Chapter 8 of the TSD for more information on the lifetime of SEMs.
7. Discount Rates In calculating LCC, DOE applies discount rates appropriate to commercial, industrial, and residential consumers to estimate the present value 37 The Weibull distribution is one of the most commonly used distributions in reliability. It is commonly used to model time to fail, time to repair and material strength.
38 U.S. Department of Energy. Advanced Manufacturing Office. Motors Systems Tip Sheet 3.
Energy Tips: Motor Systems. Extending the Operating Life of Your Motor. 2012. https
www.energy.gov/sites/prod/files/2014/04/f15/
extend_motor_operlife_motor_systemts3.pdf.
39 For more details see chapter 8 of the 2010 small electric motors final rule TSD, at https
www.regulations.gov/document?D=EERE-2007-BTSTD-0007-0036.

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