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Federal Register / Vol. 86, No. 203 / Monday, October 25, 2021 / Rules and Regulations TABLE IV.14REPRESENTATIVE FIXTURE TYPES

Representative equipment class 50 W and 100 W
>100 W and <150 W
150 W and 250 W
>250 W and 500 W
>500 W and 1,000 W
>1,000 W and 2,000 W

Representative fixture types
Representative wattage
Indoor
70 W
150 W
250 W
400 W
1,000 W
1,500 W

Downlight
Downlight
High-Bay
High-Bay
High-Bay
Sports

Outdoor Bollard, Flood, Post Top, Wallpack.
Area, Flood, Post Top, Wallpack.
Area, Flood, Post Top, Cobrahead.
Area, Flood, Post Top, Cobrahead.
Area, Flood, Sports.
Sports.

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Includes 150 W fixtures initially exempted by EISA 2007, which are fixtures rated only for 150 watt lamps; rated for use in wet locations, specified by the NFPA 702002, section 410.4A; and containing a ballast that is rated to operate at ambient air temperatures above 50 C, specified by UL 10292007.
Excludes 150 W fixtures initially exempted by EISA 2007, which are fixtures rated only for 150 watt lamps; rated for use in wet locations, specified by the NFPA 702002, section 410.4A; and containing a ballast that is rated to operate at ambient air temperatures above 50 C, specified by UL 10292007.

DOE then used teardown information for 31 fixtures that spanned the representative wattages and the applications identified for each representative wattage. The MPC of the empty fixture for each representative wattage was calculated by weighting the empty fixture cost for each application by the popularity of each application.
DOE determined the weightings based on the number of fixtures for each application at each representative wattage in DOEs certification database.
85 FR 47472, 4749047491.
The empty fixture MPCs remained the same at each magnetic efficiency level but incremental costs were added when the fixture contained an electronic ballast. Specifically, in the August 2020
NOPD, DOE applied cost adders to fixtures that use electronic ballasts for 1 transient protection, 2 thermal management, and 3 120 V auxiliary power functionality. These costs varied based on whether the fixture application was indoor, indoor industrial, or outdoor. 85 FR 47472, 47491.
In the August 2020 NOPD DOE
conducted market research to determine the prices of each cost adder. DOE
determined the price of voltage transient protection to be $9.03. DOE determined that the increase in the empty fixture cost to be 20 percent for adding thermal management to a fixture. DOE
determined the average market price of the 120 V auxiliary tap to be $7.38. DOE
added these costs to the empty fixture MPC for outdoor and indoor industrial fixtures at ELs requiring an electronic ballast. Because the auxiliary tap is needed in only 10 percent of the ballasts in indoor fixtures, DOE added $0.74 to the indoor empty fixture MPC for ELs requiring an electronic ballast. 85 FR
47472, 47491.
In the August 2020 NOPD, DOE
applied a fixture manufacturer markup of 1.58 to the empty fixture MPC to determine the MSP of the fixture at each
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EL. DOE maintained the manufacturer markup developed in the 2014 MHLF
final rule. In that rule, DOE determined the fixture manufacturer markup to be 1.58 based on financial information from manufacturers SEC 10K reports, as well as feedback from manufacturer interviews. 85 FR 47472, 47491.
For the August 2020 NOPD, to determine the MPCs of the metal halide ballasts identified in this analysis, DOE
used data from the teardown analysis which included cost data for magnetic ballasts at the baseline in each equipment class. To determine the ballast MPC at the higher efficiency levels, DOE developed a ratio between the average retail price of ballasts at the efficiency level under consideration and ballasts at the baseline. DOE collected retail prices from electrical distributors e.g., Grainger, Graybar as well as internet retailers to determine average retail prices for ballasts. For ELs without retail prices available, DOE used a ratio between the same efficiency levels in a different wattage class or interpolated based on efficiency and ballast MPC. 85
FR 47472, 47491.
In the August 2020 NOPD, DOE
applied a ballast manufacturer markup of 1.47 to the empty fixture MPC to determine the MSP of the fixture at each EL. DOE maintained the manufacturer markup developed in the 2014 MHLF
final rule. In that rule, DOE determined the ballast manufacturer markup to be 1.47 based on financial information from manufacturers SEC 10K reports, as well as feedback from manufacturer interviews. 79 FR 7746, 7783
The CA IOUs stated that DOE used cost assumptions for lamps, ballasts, and housing from the previous rulemaking which was conducted six years ago and did not provide empirical data to support that the assumptions were still valid given the evolving lighting market. CA IOUs, No. 14, p. 2

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As noted, DOE developed fixture and ballast prices based on teardowns and retail price collections conducted for this analysis. Additionally, DOE
conducted market research for this rulemaking to confirm the cost adder estimates used in the 2014 MHLF final rule. DOE determined that there are likely minimal changes to the financial structure of fixture or ballast manufacturers and therefore, the respective markups from the 2014
MHLF final rule remain valid.
DOE is maintaining the results of MSPs determined in the August 2020
NOPD for this final determination. The total empty fixture MSPs, replacement ballast MSPs, and fixture with ballast MSPs are detailed in chapter 5 of the final determination TSD.
D. Markups Analysis The markups analysis develops appropriate markups e.g., manufacturer markups, retailer markups, distributor markups, contractor markups in the distribution chain and sales taxes to convert the MSP estimates derived in the engineering analysis to consumer prices, which are then used in the LCC
and PBP analysis and in the MIA. At each step in the distribution channel, companies mark up the price of the product to cover business costs and profit margin. DOE used the same distribution channels and wholesaler and contractor markups as in the August 2020 NOPD, following the 2014 MHLF
final rule, for this final determination.
1. Distribution Channels Before it could develop markups, DOE
needed to identify distribution channels i.e., how the equipment is distributed from the manufacturer to the end-user for the MHLF designs addressed in this rulemaking. In an electrical wholesaler distribution channel, DOE assumed the fixture manufacturer sells the fixture to an electrical wholesaler i.e., distributor, who in turn sells it to a
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