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Federal Register / Vol. 86, No. 134 / Friday, July 16, 2021 / Proposed Rules
exchangers and with any additional safety measures e.g., labels, ventilation fans, or leak detection sensors that may be required to address the flammability risks of some alternative refrigerants.
DOE also seeks information on whether any updates to the approach used in the analysis supporting the March 2014 Final Rule would be appropriate based on the current CRE
market. For example, customer demand for certain equipment configurations and sizes may have changed. For the March 2014 Final Rule, DOE developed cost-efficiency curves for 25 primary equipment classes based on units with typical sizes and configurations within those classes See chapter 5 and appendix 5A of the March 2014 Final Rule TSD for details on the costefficiency analysis, including the
primary equipment class analysis and representative model configurations.
Issue 27: DOE seeks feedback on whether the 25 primary equipment classes and the corresponding representative unit configurations in the March 2014 Final Rule analysis are still appropriate for the current CRE market.
If not, DOE requests information on whether representative equipment characteristics e.g., volume, dimensions, operating parameters, and controls have significantly changed since the March 2014 Final Rule analysis.
2. Markups Analysis & Distribution Channels In generating end-user price inputs for the life-cycle cost LCC and payback period PBP analysis and national impact analysis NIA, DOE must identify distribution channels i.e., how
the equipment are distributed from the manufacturer to the consumer, and estimate relative sales volumes through each channel. By applying a multiplier called a markup to the manufacturer selling price, DOE estimates the commercial consumers price.
For the March 2014 Final Rule, DOE
defined three distribution channels for CRE and estimated their respective shares of shipments: 1 From manufacturers to consumers national account channel; 2 from manufacturers to wholesalers to consumers wholesaler channel; and 3
from manufacturers to wholesalers to mechanical contractors and then to consumers contractor channel. Table II.5 shows the distribution channel market shares. See chapter 6 of the March 2014 Final Rule TSD for details on this approach.

TABLE II.5DISTRIBUTION CHANNELS MARKET SHARES
National account channel %

Equipment type Display Cases VOP, SVO, HZO, VCT, HCT, SOC, and PD
Solid-Door Equipment VCS and HCS

Issue 28: DOE seeks input on whether the distribution channels described, and the percentage of shipments in each channel, as shown in Table II.5 of this document, are still accurate for CRE.
DOE also requests data and feedback on the magnitude and impact of online sales to the CRE distribution channels.
More specifically, DOE seeks input on whether the markups for online sales are significantly different from CRE sold through conventional distribution channels.
Issue 29: DOE requests similar data on the distribution channels and percentage of shipments in each channel for the other categories of CRE
being considered in a potential energy conservation standards rulemaking i.e., refrigerated salad bars, buffet tables, and preparation tables; solid-door equipment for pull-down applications;
chef bases or griddle stands; hightemperature CRE; and CRE with dedicated remote condensing units.

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3. Life-Cycle Cost and Payback Period Analysis DOE conducts the LCC and PBP
analysis to evaluate the economic effects of potential energy conservation standards for CRE on individual consumers. For any given efficiency level, DOE measures the PBP and the change in LCC relative to an estimated
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baseline level. The LCC is the total consumer expense over the life of the equipment, consisting of purchase, installation, and operating costs expenses for energy use, maintenance, and repair. Inputs to the calculation of total installed cost include the cost of the equipmentwhich includes the manufacturer selling price, distribution channel markups, and sales taxesand installation costs. Inputs to the calculation of operating expenses include annual energy consumption, energy prices and price projections, repair and maintenance costs, equipment lifetimes, discount rates, and the year that compliance with new and amended standards is required.
a. Efficiency Distribution For the March 2014 Final Rule, due to lack of data on CRE market shares by efficiency level within each of the equipment classes, DOE developed the no-new-standards case efficiency distribution of CRE according to a costbased method that used parameters and assumptions from the EIAs National Energy Modeling System NEMS.15
DOE also used CRE market data from 15 U.S. Department of Energy, Energy Information Administration. Commercial Demand Module of the National Energy Modeling System: Model Documentation 2012 DOE/EIAM066. 2012.
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Wholesaler channel %

Contractor channel %
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the ENERGY STAR program. See chapter 10 of the March 2014 Final Rule TSD for details on this approach.
Issue 30: DOE requests data regarding the current, historical, and future market shares of CRE by efficiency level e.g., expressed in terms of increments of 10 percent reduction below the MDEC in kWh/day, as determined by the current standards, specified at 10
CFR 431.62 for each equipment class.
Issue 31: DOE also seeks data on the current, historical, and future efficiency distribution of any additional categories of CRE under consideration broken out by efficiency for potential standards i.e., refrigerated salad bars, buffet tables, and preparation tables; soliddoor equipment for pull-down applications; chef bases or griddle stands; high-temperature CRE; and CRE
with dedicated remote condensing units.
b. Installation Costs For the March 2014 Final Rule, DOE
estimated different installation costs for remote condensing and self-contained CRE but assumed that installation costs do not vary with efficiency levels in any equipment class. Therefore, installation costs did not impact the LCC or PBP
analysis. See chapter 8 of the March 2014 Final Rule TSD.
Issue 32: DOE requests comment on whether any market or technology
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