# Energy Conservation Program: Energy Conservation Standards for Fluorescent Lamp Ballasts > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/fr%3A2011-28451 ## Record - **Collection:** Federal Register - **Document type:** Rule - **Published:** November 14, 2011 - **Citation:** 76 FR 70548 ## Text DEPARTMENT OF ENERGY 10 CFR Part 430 [Docket Number EE-2007-BT-STD-0016] RIN 1904-AB50 Energy Conservation Program: Energy Conservation Standards for Fluorescent Lamp Ballasts AGENCY: Office of Energy Efficiency and Renewable Energy, Department of Energy. ACTION: Final rule. SUMMARY: The Energy Policy and Conservation Act of 1975 (EPCA), as amended, prescribes energy conservation standards for various consumer products and certain commercial and industrial equipment, including fluorescent lamp ballasts. EPCA also requires the U.S. Department of Energy (DOE) to determine whether any new or amended standards would be technologically feasible and economically justified, and would save a significant amount of energy. In this final rule, DOE adopts new and amended federal energy conservation standards for fluorescent lamp ballasts. It has determined that the new and amended energy conservation standards for these products would result in significant conservation of energy, and are technologically feasible and economically justified. DATES: The effective date of this rule is January 13, 2012. Compliance with the new and amended standards established for fluorescent lamp ballasts in today's final rule is required as of November 14, 2014. ADDRESSES: The docket for this rulemaking is available for review at http://www.regulations.gov, including Federal Register notices, framework documents, public meeting attendee lists and transcripts, comments, and other supporting documents/materials. All documents in the docket are listed in the http://www.regulations.gov index. However, not all documents listed in the index may be publicly available, such as information that is exempt from public disclosure. A link to the docket Web page can be found at: http://www1.eere.energy.gov/buildings/appliance_standards/residential/fluorescent_lamp_ballasts.html . The regulations.gov page contains instructions on how to access all documents, including public comments, in the docket. For further information on how to review the docket, contact Ms. Brenda Edwards at (202) 586-2945 or by email: Brenda.Edwards@ee.doe.gov . FOR FURTHER INFORMATION CONTACT: Dr. Tina Kaarsberg, U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, Building Technologies Program, EE-2J, 1000 Independence Avenue SW., Washington, DC 20585-0121. Telephone: (202) 287-1393. Email: Tina.Kaarsberg@ee.doe.gov . Ms. Elizabeth Kohl, U.S. Department of Energy, Office of the General Counsel, GC-71, 1000 Independence Avenue SW., Washington, DC 20585-0121. Telephone: (202) 586-7796. Email: Elizabeth.Kohl@hq.doe.gov . SUPPLEMENTARY INFORMATION: I. Summary of the Final Rule A. Benefits and Costs to Consumers B. Impact on Manufacturers C. National Benefits D. Conclusion II. Introduction A. Authority B. Background 1. Ballast Efficacy Factor Standards 2. History of Standards Rulemaking for Fluorescent Lamp Ballasts III. Issues Affecting the Scope of This Rulemaking A. Additional Fluorescent Lamp Ballasts for Which DOE Is Adopting Standards 1. Scope of EPCA Requirement That DOE Consider Standards for Additional Ballasts 2. Identification of the Additional Ballasts for Which DOE Establishes Standards 3. Summary of Fluorescent Lamp Ballasts to Which DOE Extends Coverage B. Off Mode and Standby Mode Energy Consumption Standards IV. General Discussion A. Test Procedures 1. Background 2. Transfer Function 3. Reference Lamp 4. Total Lamp Arc Power B. Technological Feasibility 1. General 2. Maximum Technologically Feasible Levels C. Energy Savings 1. Determination of Savings 2. Significance of Savings D. Economic Justification 1. Specific Criteria 2. Rebuttable Presumption V. Methodology and Discussion A. Product Classes 1. Residential Ballasts 2. Sign Ballasts 3. Starting Method 4. 8-Foot HO 5. Summary B. Engineering Analysis 1. NOPR Approach 2. Available Test Data 3. NEMA-Provided and DOE BLE Data Comparison 4. Accounting for Variation and Compliance Certification Requirements 5. Efficiency Levels 6. Representative Units 7. Scaling to Product Classes Not Analyzed 8. Manufacturer Selling Prices 9. Results C. Markups To Determine Product Price 1. Distribution Channels 2. Estimation of Markups 3. Summary of Markups D. Energy Use Analysis E. Life-Cycle Cost and Payback Period Analyses 1. Product Cost 2. Installation Cost 3. Annual Energy Use 4. Energy Prices 5. Energy Price Projections 6. Replacement and Disposal Costs 7. Product Lifetime 8. Discount Rates 9. Compliance Date of Standards 10. Ballast Purchasing Events F. National Impact Analysis-National Energy Savings and Net Present Value Analysis 1. Shipments 2. Site-to-Source Energy Conversion G. Consumer Sub-Group Analysis H. Manufacturer Impact Analysis 1. Product and Capital Conversion Costs 2. Markup Scenarios 3. Other Key GRIM Inputs 4. Other Comments From Interested Parties 5. Manufacturer Interviews 6. Sub-Group Impact Analysis I. Employment Impact Analysis J. Utility Impact Analysis K. Environmental Assessment L. Monetizing Carbon Dioxide and Other Emissions Impacts 1. Social Cost of Carbon 2. Valuation of Other Emissions Reductions VI. Other Issues for Discussion A. Proposed Standard Levels in April 2011 NOPR B. Universal Versus Dedicated Input Voltage C. Implementation of Adopted Standard Levels VII. Analytical Results and Conclusions A. Trial Standard Levels B. Economic Justification and Energy Savings 1. Economic Impacts on Individual Consumers 2. Economic Impacts on Manufacturers 3. National Impact Analysis 4. Impact on Utility or Performance of Products 5. Impact of Any Lessening of Competition 6. Need of the Nation To Conserve Energy C. Conclusions 1. Trial Standard Level 3B 2. Trial Standard Level 3A D. Backsliding VIII. Procedural Issues and Regulatory Review A. Review Under Executive Orders 12866 and 13563 B. Review Under the Regulatory Flexibility Act 1. Statement of the Need for, and Objectives of, the Rule 2. Summary of and Responses to the Significant Issues Raised by the Public Comments, and a Statement of Any Changes Made as a Result of Such Comments 3. Description and Estimated Number of Small Entities Regulated 4. Description and Estimate of Compliance Requirements 5. Steps Taken To Minimize Impacts on Small Entities and Reasons Why Other Significant Alternatives to Today's Final Rule Were Rejected. C. Review Under the Paperwork Reduction Act D. Review Under the National Environmental Policy Act of 1969 E. Review Under Executive Order 13132 F. Review Under Executive Order 12988 G. Review Under the Unfunded Mandates Reform Act of 1995 H. Review Under the Treasury and General Government Appropriations Act, 1999 I. Review Under Executive Order 12630 J. Review Under the Treasury and General Government Appropriations Act, 2001 K. Review Under Executive Order 13211 L. Review Under the Information Quality Bulletin for Peer Review M. Congressional Notification IX. Approval of the Office of the Secretary I. Summary of the Final Rule Title III, Part B 1 of the Energy Policy and Conservation Act of 1975 (EPCA or the Act), Public Law 94-163 (42 U.S.C. 6291-6309, as codified), established the Energy Conservation Program for Consumer Products Other Than Automobiles. Pursuant to EPCA, any new or amended energy conservation standard that DOE prescribes for certain products, such as fluorescent lamp ballasts (ballasts), shall be designed to achieve the maximum improvement in energy efficiency that is technologically feasible and economically justified. (42 U.S.C. 6295(o)(2)(A)) Furthermore, the new or amended standard must result in a significant conservation of energy. (42 U.S.C. 6295(o)(3)(B)) In accordance with these and other statutory provisions discussed in this notice, DOE adopts new and amended energy conservation standards for ballasts. The new and amended standards, which are based on ballast luminous efficiency (BLE), the ratio of total lamp arc power to ballast input power as defined in Appendix Q1 of title 10 of the Code of Federal Regulations (CFR), part 430, are shown in Table I.1. These new and amended standards apply to all products listed in Table I.1 and manufactured in, or imported into, the United States on or after the compliance date specified in the DATES section. 1 For editorial reasons, upon codification in the U.S. Code, Part B was redesignated Part A. Table I.1—New and Amended Energy Conservation Standards for Fluorescent Lamp Ballasts Fluorescent lamp ballasts * shall have a ballast luminous efficiency no less than A/(1 + B * total lamp arc power‸-C) where A, B, and C are as follow: Product Class A B C Percent improvement over current standard or baseline ** Instant start and rapid start ballasts (not classified as residential) that are designed to operate 0.993 0.27 0.25 5.7 4-foot medium bipin lamps 2-foot U-shaped lamps 8-foot slimline lamps Programmed start ballasts (not classified as residential) that are designed to operate 0.993 0.51 0.37 10.8 4-foot medium bipin lamps 2-foot U-shaped lamps 4-foot miniature bipin standard output lamps 4-foot miniature bipin high output lamps Instant start and rapid start ballasts (not classified as sign ballasts) that are designed to operate 8-foot high output lamps 0.993 0.38 0.25 26.5 Programmed start ballasts (not classified as sign ballasts) that are designed to operate 8-foot high output lamps 0.973 0.70 0.37 26.2 Sign ballasts that operate 8-foot high output lamps 0.993 0.47 0.25 15.1 Instant start and rapid start residential ballasts that operate 0.993 0.41 0.25 7.2 4-foot medium bipin lamps 2-foot U-shaped lamps 8-foot slimline lamps Programmed start residential ballasts that are designed to operate 0.973 0.71 0.37 5.8 4-foot medium bipin lamps 2-foot U-shaped lamps * Fluorescent ballasts that are exempt from these standards are listed in section III.A.3. ** Percent improvement is applicable to the average of ballasts directly analyzed. A. Benefits and Costs to Consumers Table I.2 presents DOE's evaluation of the economic impacts of today's standards on consumers of ballasts for the product classes analyzed as representative (see section V.B.6), as measured by the average life-cycle cost (LCC) savings and the median payback period (PBP). The average LCC savings are positive for all product classes. For example, the estimated average LCC savings are $37−$40 for 2-lamp instant start (IS) and rapid start (RS) ballasts that operate 4-foot T8 2 lamps in the commercial sector. When there was more than one baseline for a representative ballast type, DOE performed separate LCC analyses comparing replacement lamp-and-ballast systems to each baseline. Because T8 systems are generally more efficient and have lower overall LCCs than T12 systems, the LCC savings relative to the T8 baseline are lower than when comparing the same efficiency levels to a T12 baseline. At the adopted standard levels, however, LCC savings are positive for all replacement events and baselines analyzed. 2 A lamp description in the form “T8” refers to a lamp that (1) is tubular (linear) and (2) has a diameter of 8 eighths of an inch (1 inch). Table I.2—Impacts of Today's Standards on Consumers of Ballasts Product Class * Average LCC savings ( 2010$ ) Median payback period ( years ) * IS and RS ballasts (not classified as residential) that operate: 4-foot MBP lamps (T12 baseline) $37 to $40 −1.2 to −1.3. 4-foot MBP lamps (T8 baseline) $3 to $8 2.7 to 4.4. 8-foot slimline lamps (T12 baseline) $22 to $33 0.1. 8-foot slimline lamps (T8 baseline) $5 to $7 0.5 to 0.6. PS ballasts (not classified as residential) that operate: 4-foot MBP lamps $6 to $35 1.3 to 6.0. 4-foot MiniBP SO lamps $10 to $19 2.4 to 3.8. 4-foot MiniBP HO lamps $26 to $28 2.0 to 2.1. IS and RS ballasts (not classified as sign ballasts) that operate: 8-foot HO lamps (T12 baseline) $134 to $230 −0.7 to −1.3. Sign ballasts that operate: 8-foot HO lamps $251 to $403 −0.2 to −0.3. IS and RS residential ballasts that operate: 4-foot MBP lamps $15 to $21 −5.5 to −9.5. *IS = instant start; RS = rapid start; MBP = medium bipin; MiniBP = miniature bipin; PS = programmed start; SO = standard output; HO = high output. **Negative PBP values indicate standards that reduce operating costs and installed costs. B. Impact on Manufacturers The industry net present value (INPV) is the sum of the discounted cash flows to the industry from the base year through the end of the analysis period (2014 to 2043). Using a real discount rate of 7.4 3 percent, DOE estimates that the INPV for manufacturers of ballasts in the base case ranges from $733 million to $1.22 billion in 2010 dollars (2010$). Under today's standards, DOE expects that ballast manufacturers may lose up to 36.7 percent of their INPV, which is approximately $268.6 million. Based on DOE's interviews with the manufacturers of ballasts, however, DOE does not expect any plant closings or significant employment loss. See section VII.B.2.b and VIII.B.3.b for additional discussion on this topic. 3 For ballasts, DOE uses a real discount rate of 7.4 percent. DOE's discount rate estimate was derived from industry financials then modified according to feedback during manufacturer interviews. C. National Benefits DOE's analyses indicate that today's ballast standards would save a significant amount of energy over 30 years (2014-2043)—an estimated 2.7-5.6 quadrillion British thermal units (quads) of cumulative energy. This amount is equivalent to the annual energy use of 14 million to 28 million U.S. homes. 4 4 This estimate is based on the energy use of homes in 2008, which is the most recent data available. See Rosenfeld, Arthur H. and Satish Kumar. Tables to Convert Energy or CO2 (saved or used) to Familiar Equivalents—Cars, Homes, or Power Plants (US Average Data for 2005). May 2008. http://www.energy.ca.gov/commissioners/rosenfeld_docs/EquivalenceMatrix2008.doc The cumulative national net present value (NPV) of total consumer costs and savings of today's ballast standards in 2010$ ranges from $6.7 billion (at a 7-percent discount rate) to $21.6 billion (at a 3-percent discount rate). This NPV expresses the estimated total value of future operating-cost savings less the estimated increased product costs for products purchased in 2014-2043, discounted to 2011. In addition, today's ballast standards would have significant environmental benefits. The energy savings would result in cumulative greenhouse gas emission reductions of 27-106 million metric tons (Mt) of carbon dioxide (CO 2 ) from 2014 through 2043. During this period, the standards would also result in emissions reductions 5 of 22-39 thousand tons of nitrogen oxides (NO X ) and 0.40-1.47 tons of mercury (Hg). 6 5 DOE calculates emissions reductions relative to the most recent version of the Annual Energy Outlook ( AEO ) Reference case forecast. As noted in TSD chapter 16, this forecast accounts for regulatory emissions reductions through 2008, including the Clean Air Interstate Rule (CAIR, 70 FR 25162 (May 12, 2005)), but not the Clean Air Mercury Rule (CAMR, 70 FR 28606 (May 18, 2005)). Subsequent regulations, including the currently proposed CAIR replacement rule, the Clean Air Transport Rule (75 FR 45210 (Aug. 2, 2010)), do not appear in the forecast. 6 Results for NO X and Hg are presented in short tons. One short ton equals 2000 lbs. The value of the CO 2 reductions is calculated using a range of values per metric ton of CO 2 (otherwise known as the Social Cost of Carbon, or SCC) developed by a recent interagency process. The derivation of the SCC values is discussed in section V.L. DOE estimates that the net present monetary value of the CO 2 emissions reductions is between $0.26 and $3.94 billion, expressed in 2010$ and discounted to 2011. DOE also estimates that the net present monetary value of the NO X emissions reductions, expressed in 2010$ and discounted to 2011, is $3.91 to $40.2 million at a 7-percent discount rate, and $7.67 to $78.8 million at a 3-percent discount rate. 7 7 DOE is aware of multiple agency efforts to determine the appropriate range of values used in evaluating the potential economic benefits of reduced Hg emissions. DOE has decided to await further guidance regarding consistent valuation and reporting of Hg emissions before it once again monetizes Hg emissions reductions in its rulemakings. Table I.3 summarizes the national economic costs and benefits expected to result from today's standards for fluorescent lamp ballasts. Table I.3—Summary of National Economic Benefits and Costs of Fluorescent Lamp Ballast Energy Conservation Standards Category Present value Billion 2010$ Discount rate (percent) Benefits Operating Cost Savings 12.0 7 24.1 3 CO 2 Reduction Monetized Value (at $4.9/t) * 0.26 5 CO 2 Reduction Monetized Value (at $22.3/t) * 1.29 3 CO 2 Reduction Monetized Value (at $36.5/t) * 2.16 2.5 CO 2 Reduction Monetized Value (at $67.6/t) * 3.94 3 NO X Reduction Monetized Value (at $450/ton) * 0.004 7 0.01 3 NO X Reduction Monetized Value (at $4,623/ton) * 0.04 7 0.08 3 Total Benefits† 13.3 7 25.4 3 Costs Incremental Installed Costs 3.68 7 6.91 3 Net Benefits Including CO 2 and NO X † 9.62 7 18.5 3 * The CO 2 values represent global monetized values of the SCC in 2010 under several scenarios. The values of $4.9, $22.3, and $36.5 per metric ton (t) are the averages of SCC distributions calculated using 5%, 3%, and 2.5% discount rates, respectively. The value of $67.6/t represents the 95th percentile of the SCC distribution calculated using a 3% discount rate. † Total Benefits for both the 3% and 7% cases are derived using the SCC value calculated at a 3% discount rate, and the average of the low and high NO X values used in DOE's analysis. The benefits and costs of today's standards, for products sold in 2014-2043, can also be expressed in terms of annualized values. The annualized monetary values are the sum of (1) the annualized national economic value, expressed in 2010$, of the benefits from operating the product (consisting primarily of operating cost savings from using less energy, minus increases in equipment purchase and installation costs, which is another way of representing consumer NPV, plus (2) the annualized monetary value of the benefits of emission reductions, including CO 2 emission reductions. 8 8 DOE used a two-step calculation process to convert the time-series of costs and benefits into annualized values. First, DOE calculated a present value in 2011, the year used for discounting the NPV of total consumer costs and savings, for the time-series of costs and benefits using discount rates of three and seven percent for all costs and benefits except for the value of CO 2 reductions. For the latter, DOE used a range of discount rates, as shown in Table I.3. From the present value, DOE then calculated the fixed annual payment over a 30-year period (2014 through 2043) that yields the same present value. This payment includes benefits to consumers which accrue after 2043 from the ballasts purchased from 2014 to 2043. Costs incurred by manufacturers, some of which may be incurred prior to 2014 in preparation for the rule, are not directly included, but are indirectly included as part of incremental product costs. The fixed annual payment is the annualized value. Although DOE calculated annualized values, this does not imply that the time-series of cost and benefits from which the annualized values were determined is a steady stream of payments. Although adding the value of consumer savings to the values of emission reductions provides a valuable perspective, two issues should be considered. First, the national operating cost savings are domestic U.S. consumer monetary savings that occur as a result of market transactions, while the value of CO 2 emissions reductions is based on a global value. Second, the assessments of operating cost savings and CO 2 savings are performed with different methods that use different time frames for analysis. The national operating cost savings are measured for the lifetime of ballasts shipped in 2014-2043. The SCC values, alternatively, reflect the present value of all future climate-related impacts resulting from the emission of one metric ton of CO 2 in each year, with impacts continuing well beyond 2100. Estimates of annualized benefits and costs of today's standards are shown in Table I.4. (The following monetary values are expressed in 2010$.) The results under the primary estimate are as follows. Using a 7-percent discount rate for benefits and costs other than CO 2 reduction, for which DOE used a 3-percent discount rate along with the SCC series corresponding to a value of $22.3/ton in 2010, the cost of the standards in today's rule is $363 million per year in increased equipment costs, while the benefits are $1.2 billion per year in reduced equipment operating costs, $92 million in CO 2 reductions, and $2.2 million in reduced NO X emissions. In this case, the net benefit amounts to $920 million per year. Using a 3-percent discount rate for all benefits and costs and the SCC series corresponding to a value of $22.3/ton in 2010, the cost of the standards in today's rule is $385 million per year in increased equipment costs, while the benefits are $1.3 billion per year in reduced operating costs, $92 million in CO 2 reductions, and $2.4 million in reduced NO X emissions. In this case, the net benefit amounts to $1.1 billion per year. Table I.4—Annualized Benefits and Costs of New and Amended Standards for Ballasts Sold in 2014-2043* Discount rate Monetized million 2010$/year Primary estimate Low estimate (emerging technologies, roll-up scenario) High estimate (existing technologies, shift scenario) Benefits Operating Cost Savings 7% 1,189 886 1,492. 3% 1,344 934 1,754. CO 2 Reduction at $4.9/t** 5% 20 9 30. CO 2 Reduction at $22.3/t** 3% 92 41 143. CO 2 Reduction at $36.5/t** 2.5% 151 66 237. CO 2 Reduction at $67.6/t** 3% 280 124 435. NO X Reduction at $2,537/t** 7% 2.2 1.3 3.0. 3% 2.4 1.6 3.2. Total (Operating Cost Savings, CO 2 Reduction and NO X Reduction)† 7% plus CO 2 range 1,211 to 1,471 896 to 1,011 1,525 to 1,930. 7% 1,283 928 1,637. 3% 1,438 976 1,900. 3% plus CO 2 range 1,366 to 1,626 945 to 1,059 1,788 to 2,193. Costs Incremental Product Costs 7% 363 227 498. 3% 385 218 553. Net Benefits/Costs Total (Operating Cost Savings, CO 2 Reduction and NO X Reduction, Minus Incremental Product Costs)† 7% plus CO 2 range 848 to 1,108 669 to 784 1,027 to 1,432. 7% 920 700 1,139. 3% 1,053 758 1,347. 3% plus CO 2 range 981 to 1,241 727 to 842 1,235 to 1,640. * This table presents the annualized costs and benefits associated with fluorescent lamp ballasts shipped between 2014 and 2043. These results include benefits to consumers which accrue after 2043 from the ballasts purchased from 2014 to 2043. Costs incurred by manufacturers, some of which may be incurred prior to 2014 in preparation for the rule, are not directly included, but are indirectly included as part of incremental product costs. The Primary, Low Benefits, and High Benefits Estimates utilize forecasts of energy prices and housing starts from the AEO2010 Reference case, with the Low and High Estimates based on forecasted ballast shipments in the Emerging Technologies, Roll-up and Existing Technologies, Shift scenarios, respectively. In addition, all estimates use incremental product costs that reflect constant prices (no learning rate) for product prices. The different techniques used to evaluate projected price trends for each estimate are discussed in section V.E.1. ** The CO 2 values represent global monetized values (in 2010$) of the social cost of CO 2 emissions in 2010 under several scenarios. The values of $4.9, $22.3, and $36.5 per metric ton are the averages of SCC distributions calculated using 5-percent, 3-percent, and 2.5-percent discount rates, respectively. The value of $67.6/t represents the 95th percentile of the SCC distribution calculated using a 3-percent discount rate. The value for NO X (in 2010$) is the average of the low and high values used in DOE's analysis. † Total Benefits for both the 3-percent and 7-percent cases are derived using the SCC value calculated at a 3-percent discount rate, which is $22.3/t in 2010 (in 2010$). In the rows labeled as “7% plus CO 2 range” and “3% plus CO 2 range,” the operating cost and NO X benefits are calculated using the labeled discount rate, and those values are added to the full range of CO 2 values. D. Conclusion Based on the analyses culminating in this final rule, DOE found the benefits to the nation of the standards (energy savings, consumer LCC savings, positive NPV of consumer benefit, and emission reductions) outweigh the costs (loss of INPV). DOE has concluded that the standards in today's final rule represent the maximum improvement in energy efficiency that is technologically feasible and economically justified, and would result in significant conservation of energy. DOE further notes that in all product classes, ballasts achieving the standard levels are already commercially available. II. Introduction The following section briefly discusses the statutory authority underlying today's final rule, as well as some of the historical background related to the establishment of standards for ballasts. A. Authority Title III, Part B of the Energy Policy and Conservation Act of 1975, Public Law 94-163 (42 U.S.C. 6291-6309, as codified) established the Energy Conservation Program for Consumer Products Other Than Automobiles, 9 a program covering most major household appliances (collectively referred to as “covered products”), which includes the types of ballasts that are the subject of this final rule. (42 U.S.C. 6292(a)(13)) EPCA prescribed energy conservation standards for these products (42 U.S.C. 6295(g)(5), (6), and (8)), and directed DOE to conduct two cycles of rulemakings to determine whether to amend these standards. (42 U.S.C. 6295(g)(7)) 9 For editorial reasons, upon codification in the U.S. Code (U.S.C.), Part B was redesignated Part A. Pursuant to EPCA, DOE's energy conservation program for covered products consists essentially of four parts: (1) Testing; (2) labeling; (3) the establishment of Federal energy conservation standards; and (4) certification and enforcement procedures. The Federal Trade Commission (FTC) is primarily responsible for labeling, and DOE implements the remainder of the program. Subject to certain criteria and conditions, DOE is required to develop test procedures to measure the energy efficiency, energy use, or estimated annual operating cost of each covered product. (42 U.S.C. 6293) Manufacturers of covered products must use the prescribed DOE test procedure as the basis for certifying to DOE that their products comply with the applicable energy conservation standards adopted under EPCA and when making representations to the public regarding the energy use or efficiency of those products. (42 U.S.C. 6293(c) and 6295(s)) Similarly, DOE must use these test procedures to determine whether the products comply with standards adopted pursuant to EPCA. Id. The DOE test procedures for ballasts currently appear at 10 CFR part 430, subpart B, appendices Q and Q1. Compliance with the ballast efficacy factor energy conservation standards, required until the compliance date specified in the DATES section, is determined according to appendix Q. Compliance with the BLE standards adopted in this rule must be determined according to appendix Q1. The procedures in appendix Q1 were established by the ballast active mode test procedure final rule. 76 FR 25211 (May 4, 2011). DOE must follow specific statutory criteria for prescribing new or amended standards for covered products. As indicated in the beginning of section I, any new or amended standard for a covered product must be designed to achieve the maximum improvement in energy efficiency that is technologically feasible and economically justified. (42 U.S.C. 6295(o)(2)(A)) Furthermore, DOE may not adopt any standard that would not result in the significant conservation of energy. (42 U.S.C. 6295(o)(3)) Moreover, DOE may not prescribe a standard: (1) For certain products, including ballasts, if no test procedure has been established for the product, or (2) if DOE determines by rule that the new or amended standard is not technologically feasible or economically justified. (42 U.S.C. 6295(o)(3)(A)-(B)) In deciding whether a new or amended standard is economically justified, DOE must determine whether the benefits of the standard exceed its burdens. (42 U.S.C. 6295(o)(2)(B)(i)) DOE must make this determination after receiving comments on the proposed standard, and by considering, to the greatest extent practicable, the following seven factors: 1. The economic impact of the standard on manufacturers and consumers of the products subject to the standard; 2. The savings in operating costs throughout the estimated average life of the covered products in the type (or class) compared to any increase in the price, initial charges, or maintenance expenses for the covered products that 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 covered 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 the Secretary of Energy (the Secretary) considers relevant. (42 U.S.C. 6295(o)(2)(B)(i)(I)-(VII)) EPCA, as codified, also contains what is known as an “anti-backsliding” provision, which prevents the Secretary from prescribing any new or amended standard that either increases the maximum allowable energy use or decreases the minimum required energy efficiency of a covered product. (42 U.S.C. 6295(o)(1)) Also, the Secretary may not prescribe a new or amended standard if interested parties have established by a preponderance of the evidence that the standard is likely to result in the unavailability in the United States in any covered product type (or class) of performance characteristics (including reliability), features, sizes, capacities, and volumes that are substantially the same as those generally available in the United States. (42 U.S.C. 6295(o)(4)) Further, EPCA, as codified, establishes a rebuttable presumption that a standard is economically justified if the Secretary finds that the additional cost to the consumer of purchasing a product complying with an energy conservation standard level will be less than three times the value of the energy savings during the first year that the consumer will receive as a result of the standard, as calculated under the applicable test procedure. See 42 U.S.C. 6295(o)(2)(B)(iii). Additionally, 42 U.S.C. 6295(q)(1) specifies requirements when promulgating a standard for a type or class of covered product that has two or more subcategories. DOE must specify a different standard level than that which applies generally to such type or class of products for any group of covered products which have the same function or intended use if products within such group—(A) consume a different kind of energy from that consumed by other covered products within such type (or class); or (B) have a capacity or other performance-related feature which other products within such type (or class) do not have and such feature justifies a higher or lower standard. Id. In determining whether a performance-related feature justifies a different standard for a group of products, DOE must consider such factors as the utility to the consumer of such a feature and other factors DOE deems appropriate. Id. Any rule prescribing such a standard must include an explanation of the basis on which such higher or lower level was established. (42 U.S.C. 6295(q)(2)) Federal energy conservation requirements generally supersede State laws or regulations concerning energy conservation testing, labeling, and standards. (42 U.S.C. 6297(a)-(c)) DOE may, however, grant waivers of Federal preemption for particular State laws or regulations, in accordance with the procedures and other provisions set forth under 42 U.S.C. 6297(d). Pursuant to the amendments contained in section 310(3) of the Energy Independence and Security Act of 2007 (EISA 2007), any final rule for new or amended energy conservation standards promulgated after July 1, 2010, is required to address standby mode and off mode energy use. (42 U.S.C. 6295(gg)(3)) Specifically, when DOE adopts a standard for a covered product after that date, it must, if justified by the criteria for adoption of standards under EPCA (42 U.S.C. 6295(o)), incorporate standby mode and off mode energy use into the standard or, if that is not feasible, adopt a separate standard for such energy use for that product. (42 U.S.C. 6295(gg)(3)(A)-(B)) DOE has determined that ballasts do not operate in an “off mode” as defined by EPCA (42 U.S.C. 6291(gg)(1)(A)(ii)), and that the only ballasts that consume power in a “standby mode” as defined by EPCA (42 U.S.C. 6291(gg)(1)(A)(iii)) are those that incorporate an electronic circuit enabling the ballast to communicate with and be part of a lighting control system. DOE's test procedures for ballasts address such standby mode energy use. 74 FR 54455 (October 22, 2009) and 76 FR 25211 (May 4, 2011); 10 CFR part 430, subpart B, appendix Q, section 3.2 and appendix Q1, section 3. DOE did not adopt standards for standby mode energy use, however, because DOE did not find any covered ballasts capable of operating in this mode in its search of the marketplace. Therefore, this final rule does not include energy conservation standards for standby mode energy use. See section III.B for more detail. DOE has also reviewed this regulation pursuant to Executive Order 13563, issued on January 18, 2011 (76 FR 3281, Jan. 21, 2011). EO 13563 is supplemental to and explicitly reaffirms the principles, structures, and definitions governing regulatory review established in Executive Order 12866. To the extent permitted by law, agencies are required by Executive Order 13563 to: (1) Propose or adopt a regulation only upon a reasoned determination that its benefits justify its costs (recognizing that some benefits and costs are difficult to quantify); (2) tailor regulations to impose the least burden on society, consistent with obtaining regulatory objectives, taking into account, among other things, and to the extent practicable, the costs of cumulative regulations; (3) select, in choosing among alternative regulatory approaches, those approaches that maximize net benefits (including potential economic, environmental, public health and safety, and other advantages; distributive impacts; and equity); (4) to the extent feasible, specify performance objectives, rather than specifying the behavior or manner of compliance that regulated entities must adopt; and (5) identify and assess available alternatives to direct regulation, including providing economic incentives to encourage the desired behavior, such as user fees or marketable permits, or providing information upon which choices can be made by the public. DOE emphasizes as well that Executive Order 13563 requires agencies “to use the best available techniques to quantify anticipated present and future benefits and costs as accurately as possible.” In its guidance, the Office of Information and Regulatory Affairs has emphasized that such techniques may include “identifying changing future compliance costs that might result from technological innovation or anticipated behavioral changes.” For the reasons stated in the preamble, DOE concludes that today's final rule is consistent with these principles, including the requirement that, to the extent permitted by law, benefits justify costs and that net benefits are maximized. Consistent with EO 13563, and the range of impacts analyzed in this final rule, the energy efficiency standards adopted herein by DOE achieve maximum net benefits. B. Background 1. Ballast Efficacy Factor Standards The Federal energy conservation standards for ballasts expressed in terms of ballast efficacy factor are set forth in Table II.1 and Table II.2. The standards in Table II.1 were adopted in a final rule published on September 19, 2000, which completed the first of the two rulemakings required under 42 U.S.C. 6295(g)(7) to consider amending the standards for ballasts (hereafter referred to as the 2000 Ballast Rule). 65 FR 56739. The standards in Table II.2 were established by amendments to EPCA in the Energy Policy Act of 2005 (EPAct 2005), Pub. L. 109-58. Table II.1—Energy Conservation Standards From the 2000 Ballast Rule Application for operation of * Ballast input voltage Total nominal lamp watts Ballast efficacy factor One F40T12 lamp 120 40 2.29 277 40 2.29 Two F40T12 lamps 120 80 1.17 277 80 1.17 Two F96T12 lamps 120 150 0.63 277 150 0.63 Two F96T12HO lamps 120 220 0.39 277 220 0.39 * F40T12, F96T12, and F96T12HO are defined in Appendix Q to Subpart B of Part 430. 10 CFR 430.32(m)(3). Table II.2—Energy Conservation Standards From EPAct 2005 Application for operation of * Ballast input voltage Total nominal lamp watts Ballast efficacy factor One F34T12 lamp 120/277 34 2.61 Two F34T12 lamps 120/277 68 1.35 Two F96T12/ES lamps 120/277 120 0.77 Two F96T12HO/ES lamps 120/277 190 0.42 * F34T12, F96T12/ES, and F96T12HO/ES are defined in Appendix Q to Subpart B of Part 430. (42 U.S.C. 6295(g)(8)(A); 10 CFR 430.32(m)(5)) In summary, as reflected in the previous two tables, the ballasts currently regulated under EPCA consist of ballasts that are designed to operate: • One and two nominally 40-watt (W) and 34W 4-foot T12 medium bipin (MBP) lamps (F40T12 10 and F34T12); 10 A notation in the form “F40T12” identifies a lamp type. This particular notation refers to a lamp that: (1) Is fluorescent; (2) has a nominal wattage of 40 W; (3) is linear (tubular); and (4) has a diameter of 12 eighths of an inch. • Two nominally 75W and 60W 8-foot T12 single-pin (SP) slimline lamps (F96T12 and F96T12/ES); and • Two nominally 110W and 95W 8-foot T12 recessed double contact high output lamps (F96T12HO and F96T12HO/ES) at nominal input voltages of 120 or 277 volts (V) with an input current frequency of 60 hertz (Hz). In addition, several ballasts are exempt from standards. These exemptions consist of ballasts designed to operate those lamps listed in Table II.1 that: • Are designed for dimming to 50 percent or less of its maximum output; • Are designed for use with two F96T12 high output (HO) lamps at ambient temperatures of −20 degrees Fahrenheit (F) or less and for use in an outdoor sign; or • Have a power factor of less than 0.90 and are designed and labeled for use only in residential building applications. 2. History of Standards Rulemaking for Fluorescent Lamp Ballasts EPCA establishes energy conservation standards for certain ballasts and requires that DOE conduct two cycles of rulemaking to determine whether to amend the standards for these ballasts, including whether to adopt standards for additional ballasts. (42 U.S.C. 6295(g)(5)-(8)) As indicated in section II.B.1, DOE completed the first of these rulemaking cycles by publishing the 2000 Ballast Rule. 65 FR 56740 (Sept. 19, 2000). In this rulemaking, the second rulemaking cycle required by 42 U.S.C. 6295(g)(7), DOE is amending the existing standards for ballasts and adopting standards for additional ballasts. DOE initiated this rulemaking on January 14, 2008 by publishing in the Federal Register a notice announcing the availability of the “Energy Conservation Standards Rulemaking Framework Document for Fluorescent Lamp Ballasts.” (A PDF of the framework document is available at http://www1.eere.energy.gov/buildings/appliance_standards/residential/pdfs/ballast_framework_011408.pdf. ) In that notice, DOE also announced a public meeting on the framework document and requested public comment on the matters raised in the document. 73 FR 3653 (Jan. 22, 2008). The framework document described the procedural and analytical approaches that DOE anticipated using to evaluate energy conservation standards for the ballasts, and identified various issues to be resolved in conducting this rulemaking. DOE held the public meeting on February 6, 2008, where it: Presented the contents of the framework document; described the analyses it planned to conduct during the rulemaking; sought comments from interested parties on these subjects; and in general, sought to inform interested parties about, and facilitate their involvement in, the rulemaking. Interested parties at the public meeting discussed the active mode test procedure and several major analyses related to this rulemaking. At the meeting and during the period for commenting on the framework document, DOE received feedback that helped identify and resolve issues involved in this rulemaking. DOE then gathered additional information and performed preliminary analyses to help develop potential energy conservation standards for ballasts. DOE published in the Federal Register an announcement of the availability of the preliminary technical support document (TSD) and of another public meeting to discuss and receive comments on the following matters: Product classes; the analytical framework, models, and tools that DOE was using to evaluate standards; the results of the preliminary analyses performed by DOE; and potential standard levels that DOE could consider. 75 FR 14319 (March 24, 2010) (hereafter referred to as the March 2010 notice). DOE also invited written comments on these subjects. Id. The preliminary TSD is available at http://www1.eere.energy.gov/buildings/appliance_standards/residential/fluorescent_lamp_ballasts_ecs_prelim_tsd.html. In the notice, DOE also requested comment on other relevant issues that would affect energy conservation standards for fluorescent lamp ballasts or that DOE should address in the notice of proposed rulemaking (NOPR). Id. at 14322. The public meeting announced in the March 2010 notice took place on April 26, 2010. At that meeting, DOE presented the methodologies and results of the analyses set forth in the preliminary TSD. Interested parties discussed the following major issues at the public meeting: The efficiency metric; how test procedure variation might affect efficiency measurements; requirements for ballasts in environments that are sensitive to electromagnetic interference (EMI); product classes; manufacturer selling prices (MSPs) and overall pricing methodology; markups; the maximum technologically feasible ballast efficiency; cumulative regulatory burden; and shipments. DOE considered the comments received since publication of the March 2010 notice, including those received at the April 2010 public meeting, in the development of the NOPR. In April 2011, DOE proposed new and amended energy conservation standards for fluorescent lamp ballasts. In conjunction with the NOPR, DOE also published on its Web site the complete TSD for the proposed rule, which incorporated the analyses DOE conducted and technical documentation for each analysis. The TSD included the engineering analysis spreadsheets, the LCC spreadsheet, the national impact analysis spreadsheet, and the manufacturer impact analysis (MIA) spreadsheet—all of which are available on DOE's Web site. 11 The proposed standards were as shown in Table II.3. 76 FR 20090, 20091 (April 11, 2011). 11 The Web site address for all the spreadsheets developed for this rulemaking proceeding are available at: http://www1.eere.energy.gov/buildings/appliance_standards/residential/fluorescent_ballasts_nopr_analytical_tools.html. Table II.3—Energy Conservation Standards Proposed in the April 2011 NOPR Product class Proposed BLE standard IS and RS ballasts that operate 1.32 * ln(total lamp arc power) + 86.11. 4-foot MBP lamps 8-foot slimline lamps PS ballasts that operate 1.79 * ln(total lamp arc power) + 83.33. 4-foot MBP lamps 4-foot MiniBP SO lamps 4-foot MiniBP HO lamps IS and RS ballasts that operate 8-foot HO lamps 1.49 * ln(total lamp arc power) + 84.32. PS ballasts that operate 8-foot HO lamps 1.46 * ln(total lamp arc power) + 82.63. Ballasts that operate 8-foot HO lamps designed for cold temperature outdoor signs 1.49 * ln(total lamp arc power) + 81.34. In the NOPR, DOE invited comment in particular on the following issues: (1) The exemption for T8 magnetic 12 ballasts in EMI-sensitive environments; (2) the appropriateness of establishing efficiency standards using an equation dependent on lamp-arc power; (3) the inclusion of several different ballast types in the same product class; (4) the methodology used to calculate manufacturer selling prices; (5) the efficiency levels considered; (6) the maximum technologically feasible level; (7) markups; (8) the inclusion T12 ballasts in the baseline analysis for life cycle costs; (9) the magnitude and timing of forecasted shipments; (10) the methodology and inputs DOE used for the manufacturer impact analysis—specifically, DOE's assumptions regarding markups, capital costs, and conversion costs; (12) the potential impacts of amended standards on small fluorescent lamp ballast manufacturers; (13) the trial standard levels (TSLs) considered; (14) the proposed standard level; and (15) potential approaches to maximize energy savings while mitigating impacts to certain fluorescent ballast consumer subgroups. 76 FR 20090, 20177 (April 11, 2011). 12 When DOE refers to a magnetic ballast throughout this document, it is referring to a low frequency ballast as defined by as defined in ANSI C82.13-2002. Similarly, when DOE refers to an electronic ballast, it is referring to a high frequency ballast as defined by the same ANSI standard. DOE held a public meeting on May 10, 2011, to hear oral comments on and solicit information relevant to the proposed rule (hereafter the May 2011 public meeting). At this meeting, the National Electrical Manufacturers Association (NEMA) presented test data that they found inconsistent with the data collected by DOE and that could affect the standards established in the final rule. In general, NEMA's ballast luminous efficiency values appeared to be lower than those obtained by DOE. NEMA and other stakeholders agreed that there were discrepancies between the two data sets and emphasized the importance of identifying the source of the differences. In addition, DOE received comments on the methodology used to account for compliance certification requirements, design variation, and lab-to-lab variation and on the appropriate shape of DOE's proposed efficiency level curves. In light of these discrepancies, DOE published a notice of data availability (NODA) on August 24, 2011 to: (1) Announce the availability of additional test data collected by DOE and the data submitted by NEMA; (2) address the differences between test data obtained by DOE and test data submitted by NEMA; (3) describe the methodological changes DOE was considering for the final rule based on the additional data; (4) present efficiency levels developed using the revised methodology and all available test data; and (5) request public comment on these analyses. 13 13 The August 2011 NODA and accompanying data are available here: http://www1.eere.energy.gov/buildings/appliance_standards/residential/notice_of_data_availability.html . DOE considered the comments received in response to both the April 2011 NOPR and the August 2011 NODA when developing this final rule, and responds to these comments in the following sections. III. Issues Affecting the Scope of This Rulemaking A. Additional Fluorescent Lamp Ballasts for Which DOE is Adopting Standards 1. Scope of EPCA Requirement That DOE Consider Standards for Additional Ballasts As discussed in section II.A, amendments to EPCA established energy conservation standards for certain fluorescent lamp ballasts and directed DOE to conduct two rulemakings to consider amending the standards. The first amendment was completed with the publication of the 2000 Ballast Rule. This rulemaking fulfills the statutory requirement to determine whether to amend standards a second time. EPCA specifically directs DOE, in this second amendment, to determine whether to amend the standards in effect for fluorescent lamp ballasts and whether such standards should be amended so that they would be applicable to additional fluorescent lamp ballasts. (42 U.S.C. 6295(g)(7)(B)) The April 2011 NOPR notes that a wide variety of fluorescent lamp ballasts are not currently covered by energy conservation standards, and thus are potential candidates for coverage under 42 U.S.C. 6295(g)(7). DOE encountered similar circumstances in a recent rulemaking that amended standards for general service fluorescent and incandescent reflector lamps (hereafter referred to as the 2009 Lamps Rule). 14 74 FR 34080, 34087-8 (July 14, 2009). In that rule, DOE was directed by EPCA to consider expanding its scope of coverage to include additional general service fluorescent lamps (GSFL). EPCA defines GSFLs as fluorescent lamps that can satisfy the majority of fluorescent lamp applications and that are not designed and marketed for certain specified, non-general lighting applications. (42 U.S.C. 6291(30)(B)) As such, the term “general service fluorescent lamp” is defined by reference to the term “fluorescent lamp,” which EPCA defines as “a low pressure mercury electric-discharge source in which a fluorescing coating transforms some of the ultraviolet energy generated by the mercury discharge into light,” and as including the four enumerated types of fluorescent lamps for which EPCA already prescribes standards. (42 U.S.C. 6291(30)(A); 42 U.S.C. 6295(i)(1)(B)) To construe “general service fluorescent lamp” in 42 U.S.C. 6295(i)(5) as limited to those types of fluorescent lamps would mean there are no GSFLs that are not already subject to standards, and hence, there would be no “additional” GSFLs for which DOE could consider standards. Such an interpretation would conflict with the directive in 42 U.S.C. 6295(i)(5) that DOE consider standards for “additional” GSFLs, thereby nullifying that provision. 14 Documents for the 2009 Lamps Rule are available at: http://www1.eere.energy.gov/buildings/appliance_standards/residential/incandescent_lamps.html . Therefore, DOE concluded that the term “additional general service fluorescent lamps” in 42 U.S.C. 6295(i)(5) allows DOE to set standards for GSFLs other than the four enumerated lamp types specified in the EPCA definition of “fluorescent lamp.” As a result, the 2009 Lamps Rule defined “fluorescent lamp” to include: (1) Any straight-shaped lamp (commonly referred to as 4-foot medium bipin lamps) with medium bipin bases, a nominal overall length of 48 inches, and rated wattage of 25 or more; (2) Any U-shaped lamp (commonly referred to as 2-foot U-shaped lamps) with medium bipin bases, a nominal overall length between 22 and 25 inches, and rated wattage of 25 or more; (3) Any rapid start lamp (commonly referred to as 8-foot high output lamps) with recessed double contact bases and a nominal overall length of 96 inches; (4) Any instant start lamp (commonly referred to as 8-foot slimline lamps) with single pin bases, a nominal overall length of 96 inches, and rated wattage of 52 or more; (5) Any straight-shaped lamp (commonly referred to as 4-foot miniature bipin standard output lamps) with miniature bipin bases, a nominal overall length between 45 and 48 inches, and rated wattage of 26 or more; and (6) Any straight-shaped lamp (commonly referred to 4-foot miniature bipin high output lamps) with miniature bipin bases, a nominal overall length between 45 and 48 inches, and rated wattage of 49 or more. 10 CFR 430.2 In this rulemaking, DOE is directed to consider whether any amended standard should be applicable to additional fluorescent lamp ballasts. (42 U.S.C. 6295(g)(7)(B)) EPCA defines a “fluorescent lamp ballast” as “a device which is used to start and operate fluorescent lamps by providing a starting voltage and current and limiting the current during normal operation.” (42 U.S.C. 6291(29)(A)) For this rule, DOE referenced the definition of fluorescent lamp adopted by the 2009 Lamps Rule. This definition allows DOE to consider expanding coverage to include additional fluorescent lamp ballasts while not eliminating coverage of any ballasts for which standards already exist. 2. Identification of the Additional Ballasts for Which DOE Establishes Standards In considering whether to amend the standards in effect for fluorescent lamp ballasts so that they apply to “additional” fluorescent lamp ballasts as specified in section 325(g)(7)(B) of EPCA, DOE considered all fluorescent lamp ballasts (for which standards are not already prescribed) that operate fluorescent lamps, as defined in 10 CFR 430.2. For each additional fluorescent lamp ballast, DOE considered potential energy savings, technological feasibility and economic justification when determining whether to include them in the scope of coverage. In its analyses, DOE assessed the potential energy savings from market share estimates, potential ballast designs that improve efficiency, and other relevant factors. For market share estimates, DOE used both quantitative shipment data and information obtained during manufacturer interviews. DOE also assessed the potential to achieve energy savings in certain ballasts by considering whether those ballasts could serve as potential substitutes for other regulated ballasts. In the April 2011 NOPR, DOE proposed extending coverage to several additional ballast types including those that operate: Additional numbers and diameters of 4-foot MBP lamps, 8-foot HO lamps, and 8-foot slimline lamps; 4-foot miniature bipin (MiniBP) standard output (SO) lamps; 4-foot MiniBP HO lamps; and 8-foot HO cold temperature lamps commonly used in outdoor signs. DOE did not propose to extend coverage to additional dimming ballasts or T8 magnetic ballasts that operate in EMI-sensitive environments, provided that these magnetic ballasts were designed and labeled for use in EMI-sensitive environments only and shipped by the manufacturer in packages of 10 or fewer ballasts. The Northwest Energy Efficiency Alliance (NEEA) and the Northwest Power and Conservation Council (NPCC), the Northeast Energy Efficiency Partnerships (NEEP), the Appliance Standards Awareness Project (ASAP), and in a joint comment, ASAP, the Alliance to Save Energy, the American Council for an Energy-Efficient Economy, the National Consumer Law Center, and the National Resources Defense Council (hereafter the “Joint Comment”) supported the proposed scope of coverage. ASAP and the Joint Comment stated that the expanded scope contributes significantly to the forecasted energy savings for this rulemaking. (NEEA and NPCC, No. 44 at p. 2 15 ; NEEP, No. 49 at p. 2; ASAP, Public Meeting Transcript, No. 43 at pp. 80-2; Joint Comment, No. 46 at p. 2) DOE also received several comments regarding the proposed exemption for T8 magnetic ballasts that operate in EMI-sensitive environments, coverage of residential ballasts, and additional comments recommending further exemptions. These comments are discussed in further detail in the following sections. 15 A notation in the form “NEEA and NPCC, No. 44 at p. 2” identifies a written comment that DOE has received and has included in the docket of this rulemaking. This particular notation refers to a comment: (1) Submitted by NEEA and NPCC; (2) in document number 44 of the docket; and (3) on page 2 of that document. a. Ballasts That Operate in Environments Sensitive to Electromagnetic Interference DOE received comments at the April 2010 public meeting that standards could eliminate magnetic ballasts that are currently used in certain EMI-sensitive environments. DOE conducted research and interviews with fluorescent lamp ballast and fixture manufacturers to identify the following applications as potentially sensitive to EMI: Medical operating room telemetry or life support systems; airport control systems; electronic test equipment; radio communication devices; radio recording studios; correctional facilities; clean rooms; facilities with low signal-to-noise ratios; and aircraft hangars or other buildings with predominantly metal construction. 16 DOE learned from manufacturer interviews that magnetic ballasts are typically recommended for situations in which EMI has been or is expected to be a concern. 16 This list is not all inclusive. Although there are several methods to reduce electromagnetic interference, available data do not indicate that EMI-related issues with electronic ballasts can be eliminated such that there are no longer safety concerns. For this reason, in the April 2011 NOPR DOE proposed an exemption for T8 magnetic ballasts designed and labeled for use in EMI-sensitive environments only and shipped by the manufacturer in packages containing 10 or fewer ballasts. DOE believed the exemption was necessary because in some environments, EMI could pose a serious safety concern that is best mitigated with magnetic ballast technology. DOE did not believe magnetic ballasts would likely be used as substitutes in current electronic ballast applications due to their higher cost and weight. 76 FR 20090, 20100-1 (April 11, 2011). NEEA and NPCC, NEMA, and ASAP supported the exemption for magnetic ballasts in EMI-sensitive locations. (NEEA and NPCC, No. 44 at p. 2; NEMA, Public Meeting Transcript, No. 43 at p. 70; NEMA, No. 47 at pp. 2-3; ASAP, Public Meeting Transcript, No. 43 at pp. 80-2) ASAP and NEEA and NPCC suggested requiring the description “designed, labeled, and marketed for use in EMI-sensitive applications” to limit the possibility of exempted ballasts being sold in other applications. Philips commented that they are unsure how manufacturers would be able to control the marketing through distributors to the proper market. ASAP and NEEA and NPCC acknowledged that although manufacturers cannot control distribution, they can control how they market their products. (ASAP, Public Meeting Transcript, No. 43 at pp. 80-82; Philips, Public Meeting Transcript, No. 43 at p. 82; NEEA and NPCC, No. 44 at p. 2) DOE did not receive any adverse comment regarding the exemption for T8 magnetic ballasts in EMI-sensitive applications and therefore, for the reasons discussed above, maintains this exemption in the final rule. DOE agrees with ASAP and NEEA and NPCC that this exemption should be designed such that, to the greatest extent possible, it does not become a pathway to circumvent compliance with standards adopted by this rulemaking. Therefore, DOE has modified the description of the exemption to cover ballasts “designed, labeled, and marketed for use in EMI-sensitive applications.” See appendix 5E of the TSD for more details on EMI-sensitive applications. b. Ballasts That Operate in the Residential Sector Radionic disagreed with DOE's decision to cover residential ballasts and stated that new residential models developed to meet standards are likely to have a high initial cost. Because residential consumers are sensitive to first cost, Radionic stated that consumers will choose less expensive and less efficient technologies, thereby potentially decreasing energy savings. (Radionic, No. 36 at p. 1) As discussed in the April 2011 NOPR, DOE believes that residential ballasts represent a sizeable portion of the overall ballast market and represent significant potential energy savings. DOE agrees with comments received in response to the preliminary TSD, stating that demand for residential fluorescent ballasts will likely grow substantially as residential building codes become more stringent. For example, California, Oregon, and Washington have codes that require fluorescent or higher-efficacy systems in homes. Similarly, the 2009 International Energy Conservation Code requires that 50 percent of all permanently installed lighting in residences have a minimum efficacy of 45 lumens per watt. 76 FR 20090, 20099 (April 11, 2011). DOE projects that increased lighting efficacy requirements will drive consumers to continue to purchase fluorescent systems despite incremental increases in first cost. Furthermore, DOE notes that consumers are already purchasing higher efficiency fluorescent ballasts despite their higher initial first cost relative to other lighting technologies. As discussed in section V.A.1 and section V.B.5.g, standards for residential ballasts save significant amounts of energy, and are technologically feasible and economically justified. Therefore, DOE includes residential ballasts in the scope of coverage for this final rule. c. Ballasts That Operate Below Minimum ANSI Current Levels At the May 2011 public meeting, the General Electric Company (GE) commented that DOE's efficiency levels for programmed start (PS) ballasts assumed high efficiency filament cut-out at all arc powers. GE stated, however, that some low ballast factor (BF) PS ballasts operate at currents below minimum American National Standards Institute (ANSI) levels for T8 and T12 lamps and thus require filament heating to maintain lamp life. GE and NEMA noted that these ballasts would be unable to meet BLE requirements proposed in the April 2011 NOPR due to cathode heating, but would offer energy savings due to their relatively low power levels and use in conjunction with occupancy sensors. Thus, GE requested that these low BF ballasts be exempt from standards. (GE, Public Meeting Transcript, No. 43 at pp. 236, 238; NEMA, No. 47 at p. 6) NEEA and NPCC recognized the operating limitations presented by these ballasts, but expressed concern over the lack of information about their fraction of shipments, the markets where they are most commonly sold, and their cost relative to other, more common ballast types designed to operate the same type and number of lamps. Specifically, NEEA and NPCC commented that these ballasts might be the kind of currently exempted product provided to the residential market, and that their continuing exemption could result in an increase in sales and accompanying loss in energy savings. (NEEA and NPCC, No. 44 at p. 4) The Joint Comment also highlighted the possibility of an increase in the use of these low BF ballasts in all applications if they were exempt from standards. They stated that the current small market share did not mean that shipments would not increase substantially in response to an exemption, thereby decreasing the potential energy savings due to the standards adopted by the rulemaking. (Joint Comment, No. 46 at pp. 2, 3) DOE reviewed ANSI C78.81-2010 17 and determined that ballasts designed to operate 4-foot MBP T8 lamps are required to use some level of cathode heating when operating lamps at currents less than 155 milliamperes (mA). Through testing, DOE learned the BF of these ballasts was similar to or less than 0.7. This low BF (which affects light output) is a unique utility that might be removed from the market if these ballasts were held to the established standard level. DOE analyzed test data for 4-foot MBP T8 programmed start ballasts with average currents less than 155 mA to determine if there was a trend between low current and low efficiency. DOE determined that as current decreased, the BLE also decreased. DOE concluded that none of the PS ballasts tested with an average current of less than 140 mA were able to meet the max tech efficiency levels analyzed in the PS product class. Therefore, DOE is exempting these PS low-current ballasts from the standards adopted in this final rule. 17 American National Standard for Electric Lamps—Double-Capped Fluorescent Lamps—Dimensional and Electrical Characteristics, Approved January 14, 2010. DOE does not believe that an exemption for these ballasts will lead to an increase in their use because when current is reduced, light output is also reduced. Consumers have light output requirements and would not consider a ballast that does not meet such a requirement to be an adequate substitute. Reduced light output could also require additional lighting fixtures to be purchased in order to meet expected lighting levels. It is unlikely, however, that consumers would purchase additional fixtures due to high first cost. As a result, DOE establishes an exemption for these PS, low-current ballasts. DOE has determined that the threshold for the exemption will be set at the current levels indicated in its testing, 140 mA for 4-foot MBP ballasts. d. Other Exemptions Radionic commented that DOE should consider exempting outdoor ballasts, cold weather ballasts, “all ballasts for less than 30 watts”, ballasts that have a normal power factor 18 (a power factor equal to or greater than 0.6 and less than 0.9), and ballasts that are produced in small quantities for special applications. (Radionic, No. 36 at p. 1) 18 As defined by ANSI C82.13-2002, the power factor is calculated by determining the ratio of the input power to the apparent power. The input power is measured with a wattmeter, and the apparent power is the ballast input voltage multiplied by the ballast input current. For more information, see chapter 3 of the TSD. DOE notes that several of the ballasts mentioned by Radionic are already subject to standards. For example, because outdoor and cold weather ballasts, apart from sign ballasts, are already covered by current standards, DOE cannot exempt them from standards in this rulemaking due to anti-backsliding statutory provisions (discussed in section II.A). Similarly, DOE interpreted “all ballasts for less than 30 watts” as ballasts that operate total lamp arc powers less than 30 W. Some of these ballasts (such as ballasts that operate F34T12 lamps) are covered by current standards and cannot be exempted in this rulemaking. In general, DOE specifies efficiency levels using a power law equation that assigns BLE values as a function of total lamp arc power. In other words, the equation takes lower lamp arc power into account when assigning appropriate standard levels. Even though they operate lower wattage lamps, these ballasts still demonstrate significant potential energy savings and DOE test data shows they are capable of meeting the standard levels adopted by this final rule. Therefore, DOE will not exempt ballasts that operate total lamp arc powers less than 30 W in this final rule. Ballasts with a normal power factor are classified as residential ballasts. DOE continues to cover residential ballasts as discussed in section III.A.2.b. For residential ballasts, as well as all other types listed above, Radionic did not provide DOE with any specific information regarding ballasts produced in small quantities for special applications, or specific data indicating that these ballasts would be unable to meet any standards. DOE has looked at the market and has not identified any applications, other than those already defined, in which ballasts are unable to meet standards and would require an exemption. For all of the ballast types Radionic listed, DOE has determined that the adopted standard levels are technologically feasible and economically justified. 3. Summary of Fluorescent Lamp Ballasts To Which DOE Extends Coverage With the exception of the comments discussed previously in this section, DOE received no other input related to coverage of fluorescent lamp ballasts. In addition, DOE's revised analyses indicate that energy conservation standards for the ballasts for which DOE proposed coverage in the April 2011 NOPR are still technologically feasible, economically justified, and would result in significant energy savings. Therefore, in summary, this final rule extends coverage to the following fluorescent lamp ballasts: (1) Ballasts that operate 4-foot medium bipin lamps with a rated wattage 19 of 25W or more, and an input voltage at or between 120V and 277V; 19 The 2009 Lamps Rule adopted a new definition for rated wattage that can be found in 10 CFR 430.2. (2) Ballasts that operate 2-foot medium bipin U-shaped lamps with a rated wattage of 25W or more, and an input voltage at or between 120V and 277V; (3) Ballasts that operate 8-foot high output lamps with an input voltage at or between 120V and 277V; (4) Ballasts that operate 8-foot slimline lamps with a rated wattage of 52W or more, and an input voltage at or between 120V and 277V; (5) Ballasts that operate 4-foot miniature bipin standard output lamps with a rated wattage of 26W or more, and an input voltage at or between 120V and 277V; (6) Ballasts that operate 4-foot miniature bipin high output lamps with a rated wattage of 49W or more, and an input voltage at or between 120V and 277V; (7) Ballasts that operate 4-foot medium bipin lamps with a rated wattage of 25W or more, an input voltage at or between 120V and 277V, a power factor of less than 0.90, and are designed and labeled for use in residential applications; and (8) Ballasts that operate 8-foot high output lamps with an input voltage at or between 120V and 277V, have an enclosure with an Underwriters Laboratories (UL) Type 2 rating, and are designed, labeled, and marketed for use in outdoor signs. 20 20 In the April 2011 NOPR, these ballasts were described as “ballasts that operate 8-foot high output lamps with an input voltage at or between 120V and 277V, and operate at ambient temperatures of −20 degrees F or less and are used in outdoor signs.” For the reasons stated in section 0, DOE uses this revised description for the final rule. The following ballasts are exempt from coverage: (1) Additional dimming ballasts; (2) Low frequency T8 ballasts that are designed, labeled, and marketed for use in EMI-sensitive environments and sold in packages of 10 or fewer; (3) PS ballasts that operate 4-foot MBP T8 lamps and deliver on average less than 140mA to each lamp. B. Off Mode and Standby Mode Energy Consumption Standards EPCA requires energy conservation standards adopted for a covered product after July 1, 2010 to address standby mode and off mode energy use. (42 U.S.C. 6295(gg)(3)) Because DOE is required by consent decree to publish a final rule establishing any amended standards for fluorescent lamp ballasts by October 28, 2011, 21 this rulemaking is required to consider standby mode and off mode energy use. DOE determined that it is not possible for the ballasts at issue in this final rule to meet the off-mode criteria because there is no condition in which a ballast is connected to the main power source and is not already in a mode accounted for in either active or standby mode. In the test procedure addressing standby mode energy consumption, DOE determined that the only ballasts that consume energy in standby mode are those that incorporate an electronic circuit that enables the ballast to communicate with and be part of a lighting control interface ( e.g., digitally addressable lighting interface (DALI) enabled ballasts). 74 FR 54445, 54447-8 (October 22, 2009). DOE believes that the only commercially available ballasts that incorporate an electronic circuit to communicate with a lighting control interface are dimming ballasts. 21 Under the consolidated Consent Decree in New York v. Bodman , No. 05 Civ. 7807 (S.D.N.Y. filed Sept. 7, 2005) and Natural Resources Defense Council v. Bodman , No. 05 Civ. 7808 (S.D.N.Y. filed Sept. 7, 2005), as amended, the U.S. Department of Energy is required to publish, as that term is defined in the consent decree, a final rule amending energy conservation standards for fluorescent lamp ballasts no later than October 28, 2011. As discussed in the April 2011 NOPR, DOE did not expand the scope of coverage to include additional dimming ballasts. Therefore, the only covered dimming ballasts are the four products specified in 10 CFR 430.32(m)(5) that operate reduced-wattage lamps. DOE research has not identified any dimming ballasts currently on the market that operate these lamps because the fill gas composition of reduced-wattage lamps makes them undesirable for use in dimming applications. Because DOE is not aware of any other dimming products that are covered by existing standards, DOE was unable to characterize standby mode energy consumption. Therefore, DOE does not adopt provisions to address ballast operation in standby mode as part of the energy conservation standards that are the subject of this rulemaking. IV. General Discussion A. Test Procedures 1. Background As noted previously, manufacturers must use the test procedures for ballasts at 10 CFR part 430, subpart B, appendix Q to determine compliance with the currently applicable ballast efficacy factor standards. On March 24, 2010, DOE issued a NOPR in which it proposed revisions to these test procedures. 75 FR 14288. The principal change DOE proposed to the existing test methods was, in an effort to reduce measurement variation, to eliminate photometric measurements used to determine ballast efficacy factor (BEF). Instead, DOE proposed to use electrical measurements to determine ballast efficiency (BE), which could then be converted to BEF using empirically derived transfer equations. The proposed changes specified that the ballast operate a resistive load rather than a lamp load during performance testing. For consistency with previous methods, no changes were proposed for the measurement of BF (which required photometric measurements). The preliminary TSD for this rulemaking considered standards in terms of BEF, as determined by the methods proposed in the active mode test procedure NOPR. After reviewing comments submitted in response to the active mode test procedure NOPR (75 FR 14287, March 24, 2010) and conducting additional research, DOE issued a supplemental NOPR (SNOPR) proposing a lamp-based ballast efficiency metric instead of the resistor-based metric proposed in the NOPR. 75 FR 71570 (November 24, 2010). The new metric, BLE, was equal to the total lamp arc power divided by ballast input power. DOE believed this lamp-based metric more accurately assessed the real-life performance of a ballast and also reduced measurement variation relative to the existing test procedure for BEF. DOE also proposed a method for calculating the BF of a ballast by dividing the measured lamp arc power on the test ballast by the measured lamp arc power on a reference ballast. In cases where reference ballast operating conditions were unavailable, the SNOPR provided a reference lamp power (specific to the ballast type) from an ANSI standard or from empirical results. The April 2011 NOPR for the standards rulemaking used the BLE procedures specified in the test procedure SNOPR to propose energy conservation standards. The final rule for the active mode test procedure, which was published in the Federal Register on May 4, 2011, adopted the BLE metric proposed in the SNOPR with a few modifications. 76 FR 25211. To account for the increase in lamp efficacy associated with high-frequency lamp operation versus low-frequency, DOE had proposed an adjustment to the BLE of low-frequency systems. DOE had proposed that low-frequency BLE be multiplied by 0.9 to account for the approximately 10 percent increase in lighting efficacy associated with high-frequency lamp operation. For the final rule, DOE assigned specific lamp operating frequency adjustment factors for each ballast type considered. The adjustment factors more accurately approximated the increase in lighting efficacy associated with high-frequency lamp operation. In addition, in the final rule, DOE did not adopt a BF measurement procedure because BF was no longer used to define product classes for energy conservation standards. This final rule for energy conservation standards evaluates standards for ballasts in terms of the BLE metric adopted in the active mode test procedure. Appendix Q1 of 10 CFR part 430 Subpart B will be used to evaluate compliance with the standards adopted in this final rule. 76 FR 25211, 25213 (May 4, 2011) DOE received comments in response to the April 2011 NOPR regarding the new fluorescent ballast testing procedure and BLE metric. Several stakeholders expressed support for the BLE metric. The Pacific Gas and Electric Company, Southern California Edison, the Southern California Gas Company, and San Diego Gas and Electric (hereafter the “CA Utilities”) commented that the new BLE metric is an improvement over the existing BEF metric because it allows for efficiency comparison across a wider range of ballasts. (CA Utilities, No. 45 at p. 1) NEEP and CA Utilities stated that the new BLE metric successfully simplifies testing requirements and enables the vast consolidation of product classes, which will make the compliance and enforcement processes easier. (NEEP, No. 92 at p. 3; CA Utilities, No. 45 at pp. 1-2) CA Utilities also approved of the new test procedure, commenting that they support the use of lamps to measure lamp arc power instead of sets of resistor banks designed to simulate lamps. CA Utilities stated that actual lamps, which have varying impedance based on power, more accurately represent real world loads on ballasts. They added that maintaining different sets of resistor banks at every ballast factor would have increased the testing burden for manufacturers. (CA Utilities, No. 45 at p. 2) DOE also received several comments requesting clarification on the new test procedure. These comments are discussed in the following sections. 2. Transfer Function GE asked if DOE would be creating transfer functions, similar to those proposed in the active mode test procedure NOPR, to convert BLE to BEF for marketing purposes. GE noted that as BEF will continue to be more relevant for consumers using lumens and system watts, manufacturers will continue to publish those numbers even though they will not test the ballasts with that metric. (GE, Public Meeting Transcript, No. 43 at p. 237) As discussed in section VII.D, to verify that no backsliding had occurred, DOE developed a method to convert BEF to BLE in order to compare current and newly adopted standards. However, DOE requires manufacturers to certify compliance in terms of the BLE metric only and therefore does not provide a transfer function for converting BLE to BEF for marketing purposes. 3. Reference Lamp GE noted that it is not always clear what lamp should be used when testing a ballast and requested clarification on this matter. (GE, Public Meeting Transcript, No. 43 at pp. 236-7) DOE notes that Table A in the ballast test procedure, Appendix Q1 of 10 CFR part 430 Subpart B, provides the appropriate lamp wattage, diameter and base to use in testing for each covered ballast type. For example, the first row of Table A shows that ballasts “that operate straight-shaped lamps (commonly referred to as 4-foot medium bipin lamps) with medium bipin bases and a nominal overall length of 48 inches” should be tested with 32W T8 MBP lamps. 4. Total Lamp Arc Power The People's Republic of China (P.R. China) noted that in the April 2011 NOPR, the term “total lamp arc power” was not well-defined. They noted that ANSI C78.81-2010 specifies “arc wattage” for various fluorescent tube lamps but does not define “total lamp arc power.” Furthermore, while the test procedure SNOPR included a definition for “total lamp arc power,” it also included a table that listed a low and/or high frequency “reference lamp arc power” for each covered ballast type. 75 FR 71570, 71592 (November 24, 2010). P.R. China indicated that these terms caused confusion regarding the appropriate value to be used when calculating the efficiency standard. Therefore, they suggested DOE clarify the specific value of “total lamp arc power” and use consistent terminology to avoid confusion. (P.R. China, No. 51 at p. 3-4) CA Utilities and NEEA and NPCC agreed that it was unclear which arc power should be used to calculate the applicable BLE standard. CA Utilities recommended that DOE require manufacturers to use the average lamp arc power of the tested sample to determine the BLE for a given model. (CA Utilities, No. 58 at p. 4; NEEA and NPCC, No. 59 at p. 3) DOE notes that reference lamp arc power refers to the arc wattage listed in ANSI C78.81-2010 and, as shown in that standard, can vary depending on whether the reference ballast operates at low or high frequency settings. 22 These values were provided in the test procedure SNOPR for the purposes of calculating ballast factor. However, because the test procedure final rule did not adopt a procedure for calculating ballast factor, reference lamp arc powers are no longer relevant. Total lamp arc power is a measured, not listed, value and is evaluated according to the recently adopted test procedure. 22 The test procedure defines a low frequency ballast as a fluorescent lamp ballast that operates at a supply frequency of 50 to 60 Hz and operates the lamp at the same frequency as the supply. The test procedure incorporates the ANSI C82.13 definition of high frequency ballast as a device which operates at a supply frequency of 50 or 60 Hz and operates the lamp at frequencies greater than 10 kHz. DOE also notes that 10 CFR 429.26 does not currently reflect the new ballast luminous efficiency metric. DOE plans to consider certification procedures in upcoming rulemakings related to compliance certification and enforcement. 23 For this final rule, DOE computed the reported ballast luminous efficiency and total lamp arc power assuming the ballast basic models would be certified in the following manner. To certify compliance, manufacturers would calculate the total lamp arc power and BLE for each sample tested according to 10 CFR 430, Subpart B, Appendix Q1. They would then average the total lamp arc power of each sample and input that average into the appropriate energy conservation standard efficiency level. The output of that equation dictates the minimum BLE that the reported BLE for each basic model must meet or exceed. To calculate the reported BLE for each basic model, manufacturers would follow the provisions laid out in 10 CFR 429.26(a)(2)(ii). 23 Details on certification and enforcement procedures can be found at: www1.eere.energy.gov/ buildings/appliance_standards/certification_enforcement.html. B. Technological Feasibility 1. General In each standards rulemaking, DOE conducts a screening analysis based on information it has gathered on all current technology options and prototype designs that could improve the efficiency of the products that are the subject of the rulemaking. As the first step in such analysis, DOE develops a list of technology options for consideration in consultation with manufacturers, design engineers, and other interested parties. DOE then determines which of these means for improving efficiency are technologically feasible. DOE considers technologies incorporated in commercially available products or in working prototypes to be technologically feasible. 10 CFR 430, subpart C, appendix A, section 4(a)(4)(i). Once DOE has determined that particular technology options are technologically feasible, it further evaluates each of them in light of the following additional screening criteria: (1) Practicability to manufacture, install, or service; (2) adverse impacts on product utility or availability; and (3) adverse impacts on health or safety. For further details on the screening analysis for this rulemaking, see chapter 4 of the final rule TSD. 2. Maximum Technologically Feasible Levels When DOE considers an amended standard for a type or class of covered product, it must determine the maximum improvement in energy efficiency or maximum reduction in energy use that is technologically feasible for that product. (42 U.S.C. 6295(p)(1)) Accordingly, DOE determined the maximum technologically feasible (“max tech”) ballast efficiency in the engineering analysis, using the design options identified in the screening analysis (see chapter 5 of the final rule TSD). As a first step to identifying the max tech efficiency level, DOE conducted testing of commercially available ballasts. DOE was unable to identify working prototypes that had a higher efficiency than the tested products. Therefore, DOE has determined that TSL 3B, which is based on the most efficient commercially available ballasts tested, represents the highest efficiency level that is technologically feasible for a sufficient diversity of commercially available products (spanning several ballast factors, number of lamps per ballast, and types of lamps operated) within each product class. The max tech efficiency levels require the use of electronic ballasts with improved components (such as high efficiency transformers, diodes, capacitors, and transistors). The max tech levels also require IS instead of RS ballasts, or some form of cathode cut-out technology for PS ballasts. Table IV.1 presents the max tech levels for each product class. Table IV.1—Max Tech Levels BLE = A/(1 + B * total lamp arc power ‸-C) where A, B, and C are as follows Product class A B C IS and RS ballasts (not classified as residential) that operate 0.993 0.27 0.25 4-foot MBP lamps 2-foot U-shaped lamps 8-foot slimline lamps PS ballasts (not classified as residential) that operate 0.993 0.51 0.37 4-foot MBP lamps 2-foot U-shaped lamps 4-foot MiniBP SO lamps 4-foot MiniBP HO lamps IS and RS ballasts (not classified as sign ballasts) that operate 8-foot HO lamps 0.993 0.28 0.25 PS ballasts (not classified as sign ballasts) that operate 8-foot HO lamps 0.973 0.52 0.37 Sign ballasts that operate 8-foot HO lamps 0.993 0.47 0.25 IS and RS residential ballasts that operate 0.993 0.29 0.25 4-foot MBP lamps 2-foot U-shaped lamps 8-foot slimline lamps PS residential ballasts that operate: 0.973 0.50 0.37 4-foot MBP lamps 2-foot U-shaped lamps C. Energy Savings 1. Determination of Savings DOE used its national impact analysis (NIA) spreadsheet to estimate energy savings from new or amended standards for the ballasts that are the subject of this final rule. (The NIA spreadsheet model is described in section V.F of this final rule and in chapter 11 of the final rule TSD.) DOE forecasted energy savings for each TSL, beginning in 2014, the year that compliance with the new and amended standards is required, and ending in 2043. DOE quantified the energy savings attributable to each TSL as the difference in energy consumption between the standards case and the base case. The base case represents the forecast of energy consumption in the absence of new and amended mandatory efficiency standards, and considers market demand for higher-efficiency products. For example, DOE models a shift in the base case from covered fluorescent lamp ballasts toward emerging technologies such as light emitting diodes (LEDs). The NIA spreadsheet model calculates the electricity savings in “site energy” expressed in kilowatt-hours (kWh). Site energy is the energy directly consumed by ballasts at the locations where they are used. DOE reports national energy savings on an annual basis in terms of the aggregated source (primary) energy savings, which is the savings in energy used to generate and transmit the site energy. (See final rule TSD chapter 11.) To convert site energy to source (also known as primary) energy, DOE derived time-dependent conversion factors from the model used to prepare the Energy Information Administration's (EIA's) Annual Energy Outlook 2010 ( AEO2010 ). 2. Significance of Savings As noted in section I, under 42 U.S.C. 6295(o)(3)(B) DOE is prohibited from adopting a standard for a covered product if such standard would not result in “significant” energy savings. While the term “significant” is not defined in the Act, the U.S. Court of Appeals, in Natural Resources Defense Council v. Herrington, 768 F.2d 1355, 1373 (DC Cir. 1985), indicated that Congress intended “significant” energy savings in this context to be savings that were not “genuinely trivial.” The energy savings for all of the TSLs considered in this final rule are nontrivial, and therefore DOE considers them “significant” within the meaning of section 325 of EPCA. D. Economic Justification 1. Specific Criteria As noted in section II.A, EPCA provides seven factors to be evaluated in determining whether a potential energy conservation standard is economically justified. (42 U.S.C. 6295(o)(2)(B)(i)) The following sections discuss how DOE addresses each of those seven factors in this rulemaking. a. Economic Impact on Manufacturers and Consumers In determining the impacts of a new or amended standard on manufacturers, DOE first determines the quantitative impacts using an annual cash-flow approach. This includes both a short-term assessment—based on the cost and capital requirements during the period between the announcement of a regulation and when the regulation requires compliance—and a long-term assessment over the 30-year analysis period. The impacts analyzed include INPV (which values the industry based on expected future cash flows), cash flows by year, changes in revenue and income, and other measures of impact, as appropriate. Second, DOE analyzes and reports the impacts on different types of manufacturers, including an analysis of impacts on small manufacturers. Third, DOE considers the impact of standards on domestic manufacturer employment and manufacturing capacity, as well as the potential for standards to result in plant closures and loss of capital investment. DOE also takes into account cumulative impacts of different related DOE regulations and other regulatory requirements on manufacturers. For individual consumers, measures of economic impact include the changes in LCC and the payback period associated with new or amended standards. The LCC, which is separately specified as one of the seven factors to consider when determining the economic justification for a new or amended standard, (42 U.S.C. 6295(o)(2)(B)(i)(II)), is discussed in the following section. For consumers in the aggregate, DOE calculates the NPV from a national perspective of the economic impacts on consumers over the forecast period used in a particular rulemaking. b. Life-Cycle Costs The LCC is the sum of the purchase price of a product (including its installation) and the operating expense (including energy, maintenance, and repair expenditures) discounted over the lifetime of the product. The LCC savings for the considered efficiency levels are calculated relative to a base case that reflects likely trends in the absence of new or amended standards. The LCC analysis requires a variety of inputs, such as product prices, product energy consumption, energy prices, maintenance and repair costs, product lifetime, and consumer discount rates. DOE assumes in its analysis that consumers purchase the product in 2014. To account for uncertainty and variability in specific inputs, such as product lifetime and discount rate, DOE uses a distribution of values with probabilities attached to each value. A distinct advantage of this approach is that DOE can identify the percentage of consumers estimated to achieve LCC savings or experiencing an LCC increase, in addition to the average LCC savings associated with a particular standard level. In addition to identifying ranges of impacts, DOE evaluates the LCC impacts of potential standards on identifiable sub-groups of consumers that may be disproportionately affected by a national standard. c. Energy Savings While significant conservation of energy is a separate statutory requirement for imposing an energy conservation standard, EPCA requires DOE, in determining the economic justification of a standard, to consider the total projected energy savings that are expected to result directly from the standard. (42 U.S.C. 6295(o)(2)(B)(i)(III)) DOE uses the NIA spreadsheet results in its consideration of total projected savings. d. Lessening of Utility or Performance of Products In establishing classes of products, and in evaluating design options and the impact of potential standard levels, DOE seeks to develop standards that would not lessen the utility or performance of the products under consideration. The efficiency levels considered in this final rule will not affect any features valued by consumers, such as starting method, ballast factor, or cold temperature operation. Therefore, none of the TSLs presented in section VII.A would reduce the utility or performance of the ballasts that are the subject of this final rule. (42 U.S.C. 6295(o)(2)(B)(i)(IV)) e. Impact of Any Lessening of Competition EPCA directs DOE to consider any lessening of competition likely to result from standards. It directs the Attorney General to determine the impact, if any, of any lessening of competition likely to result from standards and to transmit this determination to the Secretary, not later than 60 days after the publication of a proposed rule, together with an analysis of the nature and extent of this impact. (42 U.S.C. 6295(o)(2)(B)(i)(V) and (B)(ii)) To assist the Attorney General in making this determination, DOE transmitted a copy of the April 2011 NOPR and TSD to the Attorney General for review. The Attorney General's response is discussed in section VII.B.5, and is reprinted at the end of this rule. f. Need of the Nation To Conserve Energy The non-monetary benefits of the standards in this final rule are likely to be reflected in improvements to the security and reliability of the nation's energy system. Reduced demand for electricity may also result in reduced costs for maintaining the reliability of the nation's electricity system. DOE conducts a utility impact analysis to estimate how standards may affect the nation's needed power generation capacity. Energy savings from the standards in this final rule are also likely to result in environmental benefits in the form of reduced emissions of air pollutants and greenhouse gases (GHG) associated with energy production. DOE reports the environmental effects from the new and amended standards—and from each TSL it considered for ballasts—in the environmental assessment contained in chapter 16 of the final rule TSD. DOE also reports estimates of the economic value of reduced emissions reductions resulting from the considered TSLs. g. Other Factors The Act allows the Secretary of Energy to consider any other factors he or she deems relevant in determining whether a standard is economically justified. (42 U.S.C. 6295(o)(2)(B)(i)(VII)) Under this provision, DOE considers subgroups of consumers that may be adversely affected by the standards established in this rule. DOE specifically assesses the impact of standards on low-income consumers, institutions of religious worship, and institutions that serve low-income populations. In considering these subgroups, DOE analyzes variations on electricity prices, operating hours, discount rates, and baseline ballasts. See section V.G for further detail. 2. Rebuttable Presumption As set forth in 42 U.S.C. 6295(o)(2)(B)(iii), EPCA provides for a rebuttable presumption that an energy conservation standard is economically justified if the additional cost to the consumer of a product that meets the standard is less than three times the value of the first-year energy (and, as applicable, water) savings resulting from the standard, as calculated under the applicable DOE test procedure. DOE's LCC and PBP analyses generate values that calculate the payback period for consumers of potential new and amended energy conservation standards. These analyses include, but are not limited to, the 3-year payback period contemplated under the rebuttable presumption test. However, DOE routinely conducts an economic analysis that considers the full range of impacts to the consumer, manufacturer, nation, and environment, as required under 42 U.S.C. 6295(o)(2)(B)(i). The results of this analysis serve as the basis for DOE to evaluate the economic justification for a potential standard level (thereby supporting or rebutting the results of any preliminary determination of economic justification). The rebuttable presumption payback calculation is discussed in section VII.B.1.c. V. Methodology and Discussion DOE used three spreadsheets to estimate the impact of the adopted standards. The first spreadsheet calculates LCCs and payback periods of potential new energy conservation standards. The second provides shipments forecasts and then calculates national energy savings and NPV impacts of new energy conservation standards. Through the third, the Government Regulatory Impact Model (GRIM), DOE assesses manufacturer impacts. Additionally, DOE uses a version of EIA's National Energy Modeling System (NEMS) to estimate the impacts of energy efficiency standards on electric utilities and the environment. The NEMS model simulates the energy sector of the U.S. economy. The version of NEMS used for appliance standards analysis is called NEMS-BT, and is based on the AEO2010 version of NEMS with minor modifications. The NEMS-BT accounts for the interactions between the various energy supply and demand sectors and the economy as a whole. 24 24 The EIA approves the use of the name “NEMS” to describe only an AEO version of the model without any modification to code or data. Because the present analysis entails some minor code modifications and runs the model under various policy scenarios that deviate from AEO assumptions, the name “NEMS-BT” refers to the model as used here. (BT stands for DOE's Building Technologies Program.) For more information on NEMS, refer to The National Energy Modeling System: An Overview, DOE/EIA-0581 (98) (Feb.1998), available at: tonto.eia.doe.gov/FTPROOT/forecasting/058198.pdf. As a basis for this final rule, DOE has continued to use the spreadsheets and approaches explained in the April 2011 NOPR. DOE used the same general methodology as applied in the NOPR, but revised some of the assumptions and inputs for the final rule in response to public comments. The following sections discuss these revisions. A. Product Classes In evaluating and establishing energy conservation standards, DOE divides covered products into classes by the type of energy used, or by capacity or other performance-related feature that justifies a different standard for products having such feature. (See 42 U.S.C. 6295(q)) In deciding whether a feature justifies a different standard, DOE must consider factors such as the utility of the feature to users. Id. DOE establishes energy conservation standards for different product classes based on the criteria set forth in 42 U.S.C. 6295(o). For the April 2011 NOPR, DOE undertook extensive testing of fluorescent lamp ballasts to evaluate the impact of numerous ballast characteristics on BLE. Using this test data, DOE empirically found a relationship between the BLE metric and lamp arc power. In general, as lamp arc power increases, BLE increases as well. DOE believes this association is due to the fixed losses of a ballast becoming proportionally less significant at higher lamp arc powers. This relationship allowed DOE to set efficiency levels as a function of total lamp arc power across a wide range of power levels, which simplified the product class structure and the amount of scaling required among product classes. In addition, setting efficiency levels with an equation allows for easier adaption of standards to future innovations. For example, an equation could account for the introduction of new ballast factors. It would also not necessarily have to be revised if the test procedure were modified to require testing with reduced-wattage lamps, toward which manufacturers have commented the market is moving. NEMA agreed that an efficiency standard using pure electrical measurements on a ballast operating a lamp load is appropriate provided the equation accounts for different operating characteristics of the various ballast types that are grouped into each product class. (NEMA, No. 47 at p. 3) NEMA's specific comments regarding the appropriate grouping of various ballast types are discussed later in this section. After considering several potential class-setting factors, DOE proposed in the April 2011 NOPR to separate product classes based on starting method (instant start and rapid start versus programmed start), ballasts that operate 8-foot HO lamps, and ballasts that operate 8-foot HO lamps in cold-temperature outdoor signs. DOE noted that for each of those three ballast types, a difference in utility was accompanied by a difference in the BLE predicted by the power-efficiency relationship. These three distinctions resulted in five product classes for: IS/RS ballasts that operate 4-foot MBP and 8-foot slimline lamps; PS ballasts that operate 4-foot MBP, T5 SO, and T5 HO lamps, IS/RS ballasts that operate 8-foot HO lamps, PS ballast that operate 8-foot HO lamps, and ballasts that operate 8-foot HO lamps in cold temperature outdoor signs. ASAP and CA Utilities commented that the reduction from the 70 product classes considered in the preliminary analysis to the five product classes proposed in the NOPR provides a simpler standard and thus facilitates compliance and enforcement. (ASAP, Public Meeting Transcript, No. 43 at p. 80; CA Utilities, No. 45 at pp. 1-2) In addition, DOE received several comments related to the inclusion of residential and commercial ballasts in a single product class, the definition of the sign ballast product class, the grouping of ballasts with different starting methods, and the potential for additional subclasses within the 8-foot HO product class. These comments are discussed in the following sections. 1. Residential Ballasts Separate minimum power factor and electromagnetic interference requirements exist for residential and commercial ballasts. Specifically, residential ballasts have more stringent (or lower maximum allowable) EMI requirements than commercial ballasts; they also have less stringent (or lower minimum allowable) power factor requirements. 25 Based on these differing requirements, in the April 2011 NOPR, DOE concluded that residential ballasts offer a unique utility in that they serve distinct market sectors and applications. However, because the April 2011 NOPR test data indicated residential ballasts could achieve similar levels of efficiency as commercial ballasts at the highest standard levels analyzed, DOE did not propose a separate product class for residential ballasts. In response to the April 2011 NOPR, DOE received several comments regarding this conclusion. 25 ANSI C82.77-2002 requires residential ballasts to have a minimum power factor of 0.5 and commercial ballasts to have a minimum power factor of 0.9. CA Utilities agreed with DOE's proposal that a separate product class is not necessary for residential ballasts because no specific characteristic affects efficiency. They stated that residential ballasts are not subject to more stringent FCC standards for EMI because these standards only apply to devices operating at frequencies greater than 30 megahertz (MHz). Thus, CA Utilities emphasized that starting method is more relevant to the efficiency of the ballast than the distinction of residential or commercial. (CA Utilities, No. 58 at p. 4; CA Utilities, No. 45 at p. 7) NEMA disagreed, commenting that not only are residential ballasts subject to more stringent standards for EMI, but that this requirement decreases ballast efficiency. NEMA and Universal added that while they support the inclusion of residential ballasts in this rulemaking, they oppose the inclusion of residential ballasts in the same product class as commercial ballasts, given their different efficiencies and application requirements. (NEMA, No. 47 at p. 4; Universal, Public Meeting Transcript, No. 43 at pp. 76-7) Current regulatory requirements subject residential ballasts to more stringent conducted EMI requirements than commercial ballasts. In particular, DOE notes that separate FCC standards exist for both radiated and conducted EMI emissions. The 30 MHz standards cited by CA Utilities correspond to radiated EMI emissions frequencies, not to ballast operating frequencies. Devices that operate at frequencies less than 1.705 MHz, such as fluorescent lamp ballasts, are not required to measure radiated emissions that exist at frequencies above 30 MHz; therefore, radiated EMI standards do not apply to fluorescent lamp ballasts. Ballasts with conducted EMI emissions in the frequency range of 0.45 to 30 MHz, however, must comply with FCC standards for conducted EMI. The conducted EMI requirements are applicable to all fluorescent lamp ballasts, but are more stringent for residential ballasts, necessitating added interference filtration in order to comply. CA Utilities also commented that although residential ballasts are subject to a lower minimum power factor requirement, they do not necessarily have low power factors; in fact, ballasts with either high or low power factors can be installed in the residential sector. CA Utilities concluded that therefore, many high-efficiency commercial ballasts available on the market today can be used in the residential sector without issue. (CA Utilities, No. 45 at pp. 6-7) Philips agreed that ballasts with high power factors can be installed in the residential sector, noting that the ENERGY STAR program for residential fixtures may soon require some level of power factor correction. Philips commented that increased power factor correction actually reduces the efficiency of residential ballasts because the losses associated with meeting FCC Class B requirements become more significant when including power factor correction. (Philips, Public Meeting Transcript, No. 43 at pp. 77-9) Acuity Brands added that a residential ballast that achieves the same efficiency as the most efficient commercial product would be 50 percent more expensive because of the FCC EMI requirements. (Acuity Brands, Public Meeting Transcript, No. 43 at p. 79) NEMA pointed out that that a higher price could influence consumers to migrate from fluorescent luminaires to lower efficiency incandescent or halogen fixtures. (NEMA, No. 47 at p. 4) Edison Electric Institute (EEI) also expressed concern regarding the prices of residential ballasts, stating that a separate product class for residential ballasts is needed to improve economics for residential and low-income consumers. (EEI, No. 48 at p. 2) DOE agrees that high power factor ballasts, similar to the power factors possessed by commercial products, can be installed in the residential sector. However, the addition of a power factor correction stage to a ballast circuit substantially increases the amount of electromagnetic interference due to the presence of high speed switches. Therefore, to meet the FCC requirements for residential products, commercial ballasts would require a more significant EMI filter and thus incur additional power losses. As stated previously, DOE determined in the April 2011 NOPR that despite the differences in power factor and EMI requirements between residential and commercial 2-lamp 4-foot MBP IS/RS ballasts, both ballast types could reach achieve similar levels of efficiency at the highest levels analyzed. Based on the similarity in efficiency, DOE included both ballast types in the same product class. Since publication of the April 2011 NOPR, however, DOE has obtained additional test data for residential ballasts that indicate a separate product class for residential ballasts is warranted. Specifically, DOE tested 4-lamp residential ballasts and was unable to confirm that it was technologically feasible for 4-lamp residential ballasts to meet the commercial ballast efficiency levels. Thus, in the August 2011 NODA, DOE considered establishing a separate product class for residential ballasts. Because DOE proposed extending coverage to residential ballasts with both IS/RS and PS starting methods, DOE considered two new product classes: (1) IS/RS ballasts that operate 4-foot MBP lamps in the residential sector and (2) PS ballasts that operate 4-foot MBP lamps in the residential sector. A separate product class for residential ballasts would allow DOE to adopt separate standard levels for these products based on their associated consumer economics. In response to the August 2011 NODA, the CA Utilities, NEEA and NPCC, and ASAP, the American Council for an Energy-Efficient Economy, and the Natural Resources Defense Council, in a second Joint Comment, disagreed with the establishment of a separate product class for residential ballasts because residential ballasts can meet the same efficiency levels as commercial ballasts. The second Joint Comment added that although the data indicates that 4-lamp residential ballasts cannot achieve the same efficiency as their commercial counterparts, DOE should not establish a separate product class for this reason. They argued that 2-lamp ballasts are far more common in the residential sector than 4-lamp ballasts, which are often installed in commercial buildings. (CA Utilities, No. 58 at p. 4; NEEA and NPCC, No. 59 at p. 3; Second Joint Comment, No. 57 at p. 1-2) In addition, the second Joint Comment, CA Utilities, and NEEA and NPCC stated that even if there were a difference in efficiency, DOE has not demonstrated that residential ballasts provide a unique consumer utility. (Second Joint Comment, No. 57 at pp. 1-2; CA Utilities, No. 58 at p. 4; NEEA and NPCC, No. 59 at p. 3) These interested parties stated that residential ballasts are not subject to more stringent FCC requirements for electromagnetic interference. CA Utilities added that even if they were, EMI filters are available and they do not believe these components affect efficiency. These interested parties also reiterated previous comments that, while residential ballasts have lower minimum power factor requirements, this did not prevent high power factor ballasts from being installed in this market sector. The second Joint Comment, CA Utilities, and NEEA and NPCC concluded that commercial ballasts could be used in the residential sector without issue. DOE notes that both 2-lamp ballasts and 4-lamp ballasts are used in the residential sector. In addition, while 2-lamp ballasts may be more popular in the residential sector, ballasts that operate different numbers of lamps, such as the 4-lamp ballasts described by the second Joint Comment above, provide a unique utility, as explained in the following paragraph. EPCA requires DOE to consider any lessening of the utility or the performance of the covered products likely to result from the imposition of a standard. 42 U.S.C. 6295(o)(2)(B)(i)(IV). EPCA also prohibits DOE from establishing standards that are likely to result in the unavailability of performance characteristics, features, sizes, capacities and volumes that are substantially the same as those generally available in the United States when the standard is established. 42 U.S.C. 6295(o)(4). EPCA further requires DOE to prescribe a lower energy efficiency level for product classes in which the products have a performance-related feature, considering the utility of that feature to consumers and other factors, that justifies a lower efficiency level. 42 U.S.C. 6295(q). Available data indicates that these products cannot achieve the same efficiencies as their commercial counterparts and that, therefore, a separate product class and efficiency standard is warranted. DOE disagrees with the assertion that commercial ballasts can be used as substitutes for residential products. Although both ballasts can have high power factors, residential ballasts are subject to more stringent FCC standards for conducted EMI emissions. DOE agrees that EMI can be mitigated by the addition of a filter, but disputes the CA Utilities' claim that the filter does not affect efficiency. If a residential ballast were designed to have a high power factor, the addition of a power factor correction stage would increase the amount of conducted emissions. Thus, the residential ballast must possess a stronger EMI filter to comply with FCC requirements. DOE notes that only one T8 residential ballast in the data set had a power factor greater than 0.9, and this model did not meet the most efficient EL considered for the residential product class. For these reasons, DOE concludes that residential ballasts are less efficient than commercial ballasts and also offer unique consumer utility. Therefore, as stated above, DOE has established a separate product class for these products in this final rule. DOE also received comments regarding the types of ballasts that should be included in the residential product class. NEMA suggested that the residential ballast product class include ballasts that operate 8-foot slimline lamps in addition to ballasts that operate 4-foot MBP lamps. (NEMA, No. 47 at p. 6) In its search of the market, DOE discovered a small number of 8-foot slimline ballasts in product catalogs that are intended for use in the residential sector. DOE also noted that residential ballasts that are designed to operate 4-foot MBP lamps can also operate 2-foot U-shaped lamps. As described above, DOE finds that residential ballasts cannot achieve the same efficiency levels as commercial ballasts and that they offer the consumer unique utility. Therefore, DOE has modified the description of the residential product class to include: (1) IS/RS ballasts that operate 4-foot MBP, 2-foot U-shaped, and 8-foot slimline lamps in the residential sector and (2) PS ballasts that operate 4-foot MBP and 2-foot U-shaped lamps in the residential sector. 26 26 PS ballasts are not used in combination with 8-foot slimline lamps because the base of these lamps only has a single pin rather than the two required for electrode heating. 2. Sign Ballasts In the April 2011 NOPR, DOE proposed establishing a separate product class for ballasts that operate 8-foot HO lamps in cold temperature outdoor signs. This proposal was based on their unique utility and associated decrease in efficiency relative to standard 8-foot HO ballasts. Sign ballasts operate outdoors in wet and cold temperature environments and have highly flexible lamp pairing possibilities, both in terms of varied individual lamp lengths and different total lamp length (sum of the length of all lamps operated by the ballast). In response to the April 2011 NOPR, DOE received comments that the proposed sign ballast product class description was not sufficient. ASAP encouraged DOE to ensure that the definition of the sign ballast product class is sufficiently narrow. (ASAP, No. 46 at p. 2) CA Utilities commented that DOE should reevaluate the defining characteristics of sign ballasts because it does not seem to accurately capture the products for which it was intended. In particular, CA Utilities and ASAP cited the description “ballasts that operate 8-foot HO lamps” as problematic because it could leave out sign ballasts that are designed for other lamp lengths. (CA Utilities, No. 45 at p. 7; ASAP, No. 46 at p. 2) DOE agrees that sign ballasts capable of operating other lamp lengths, in addition to 8-foot lamps, should be included in the sign ballast product class. However, DOE does not agree that ballasts designed to operate solely these alternate lamps, other than 8-foot HO lamps, should be considered in the sign ballast product class or scope of coverage. In determining the scope of fluorescent ballasts covered by this rulemaking, DOE's research indicated that the vast majority of sign ballasts are capable of operating 8-foot HO lamps, in addition to other lamp lengths. Because sign ballasts that cannot operate 8-foot HO lamps were so rare, there was insufficient available data to analyze the efficiency potential of these ballasts. DOE does not include those ballasts that cannot operate 8-foot HO lamps in the sign ballast product class. DOE defined the added scope of sign ballasts based on their operation of 8-foot HO lamps and assessed the BLE of sign ballasts based on their performance when operating 8-foot HO lamps. Therefore, if the sign ballast cannot operate an 8-foot HO lamp, DOE did not include it in the scope of coverage of this rulemaking. 27 27 For these same reasons, the test procedure in Subpart B of 10 CFR Part 430 Appendix Q1 specifies that a sign ballast must be tested with the maximum number of 8-foot HO (either T8 or T12) lamps it is designed to operate. CA Utilities also commented that it is not clear in the NOPR whether the usage of the phrase “cold temperature” in the product class description is a key factor in the definition of sign ballasts. They pointed out that some standard commercial ballasts and NEMA Premium products are rated for negative 20 degree F temperatures. (CA Utilities, Public Meeting Transcript, No. 43 at pp. 83-5) ASAP and the CA Utilities encouraged DOE to define the sign ballast product class in a way that does not reference cold temperature operation because it is not unique to these products. If the definition does not include better identifying characteristics, the CA Utilities expressed concern that sign ballasts that are not designed for cold temperature environments might be exempt from standards (ASAP, Public Meeting Transcript, No. 43 at p. 87; CA Utilities, Public Meeting Transcript, No. 43 at pp. 89-90) CA Utilities concluded that DOE must ensure that products not intended to provide the specific utility of outdoor sign ballasts cannot be construed as outdoor sign ballasts, and that products which are intended to provide this utility are covered by the standards. (CA Utilities, No. 45 at p. 7) Universal explained that cold temperature does have an effect on efficiency and is one of several characteristics that would separate a sign ballast application from another application. GE also noted that more energy is required to strike at a cold temperature with a longer lamp and it becomes more difficult for a system to start as lamp length increases and as temperature decreases. (Universal, Public Meeting Transcript, No. 43 at pp. 84-5; GE, Public Meeting Transcript, No. 43 at pp. 86-7, 89) Available data support the CA Utilities assertion that cold temperature is not a key factor in the description of sign ballasts. Although sign ballasts are rated to operate in cold temperature environments, often down to −20 degrees Fahrenheit, DOE surveyed the market and found that all ballast types covered by this rulemaking have product offerings that include cold temperature ratings, including 8-foot HO ballasts designed and marketed for traditional non-outdoor sign applications. While a cold-temperature rating may affect efficiency, DOE found that these cold temperature rated non-sign ballasts were among the most efficient ballasts of their respective types. Therefore, DOE agrees that the cold-temperature rating is not a descriptor specific to ballasts intended to be used in outdoor signs. Several manufacturers described alternative characteristics for defining the sign ballast product class. Universal and Osram Sylvania (OSI) [Text truncated at 120,000 characters. The full text is on the page linked above.] --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A2011-28451. Public record. Not legal advice.