# Energy Conservation Program: Energy Conservation Standards for Walk-In Coolers and Freezers > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/fr%3A2013-21530 ## Record - **Collection:** Federal Register - **Document type:** Proposed Rule - **Published:** September 11, 2013 - **Citation:** 78 FR 55782 ## Text DEPARTMENT OF ENERGY 10 CFR Part 431 [Docket No. EERE-2008-BT-STD-0015] RIN 1904-AB86 Energy Conservation Program: Energy Conservation Standards for Walk-In Coolers and Freezers AGENCY: Office of Energy Efficiency and Renewable Energy, Department of Energy. ACTION: Notice of proposed rulemaking (NOPR) and public meeting. 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 walk-in coolers and walk-in freezers. EPCA also requires the U.S. Department of Energy (DOE) to determine whether more-stringent, amended standards would be technologically feasible and economically justified, and would save a significant amount of energy. In this notice, DOE proposes amended energy conservation standards for walk-in coolers and walk-in freezers. The notice also announces a public meeting to receive comment on these proposed standards and associated analyses and results. DATES: DOE will hold a public meeting on Wednesday, October 9, 2013, from 9 a.m. to 4 p.m., in Washington, DC. The meeting will also be broadcast as a webinar. See section VII, “Public Participation,” for webinar registration information, participant instructions, and information about the capabilities available to webinar participants. DOE will accept comments, data, and information regarding this notice of proposed rulemaking (NOPR) before and after the public meeting, but no later than November 12, 2013. See section VII, “Public Participation,” for details. ADDRESSES: The public meeting will be held at the U.S. Department of Energy, Forrestal Building, Room 8E-089, 1000 Independence Avenue SW., Washington, DC 20585. To attend, please notify Ms. Brenda Edwards at (202) 586-2945. For more information, refer to section VII, Public Participation. Any comments submitted must identify the NOPR for Energy Conservation Standards for walk-in coolers and freezers, and provide docket number EERE-2008-BT-STD-0015 and/or regulatory information number (RIN) number 1904-AB86. Comments may be submitted using any of the following methods: 1. Federal eRulemaking Portal: www.regulations.gov . Follow the instructions for submitting comments. 2. Email: WICF-2008-STD-0015@ee.doe.gov . Include the docket number and/or RIN in the subject line of the message. 3. Mail: Ms. Brenda Edwards, U.S. Department of Energy, Building Technologies Office, Mailstop EE-2J, 1000 Independence Avenue SW., Washington, DC, 20585-0121. If possible, please submit all items on a CD. It is not necessary to include printed copies. 4. Hand Delivery/Courier: Ms. Brenda Edwards, U.S. Department of Energy, Building Technologies Office, 950 L'Enfant Plaza SW., Suite 600, Washington, DC 20024. Telephone: (202) 586-2945. If possible, please submit all items on a CD, in which case it is not necessary to include printed copies. Written comments regarding the burden-hour estimates or other aspects of the collection-of-information requirements contained in this proposed rule may be submitted to Office of Energy Efficiency and Renewable Energy through the methods listed above and by email to Chad_S_Whiteman@omb.eop.gov . For detailed instructions on submitting comments and additional information on the rulemaking process, see section VII of this document (Public Participation). Docket: The docket, which includes Federal Register notices, public meeting attendee lists and transcripts, comments, and other supporting documents/materials, is available for review at regulations.gov. All documents in the docket are listed in the regulations.gov index. However, some documents listed in the index, such as those containing information that is exempt from public disclosure, may not be publicly available. A link to the docket Web page can be found at: http://www1.eere.energy.gov/buildings/appliance_standards/rulemaking.aspx/ruleid/30 . This Web page contains a link to the docket for this notice on the regulations.gov site. The regulations.gov Web page contains instructions on how to access all documents, including public comments, in the docket. See section VII for further information on how to submit comments through www.regulations.gov . For further information on how to submit a comment, review other public comments and the docket, or participate in the public meeting, contact Ms. Brenda Edwards at (202) 586-2945 or by email: Brenda.Edwards@ee.doe.gov . FOR FURTHER INFORMATION CONTACT: Mr. Charles Llenza, 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) 586-2192. Email: walk-in_coolers_and_walk-in_freezers@EE.Doe.Gov . Mr. Michael Kido, U.S. Department of Energy, Office of the General Counsel, GC-71, 1000 Independence Avenue SW., Washington, DC 20585-0121. Telephone: (202) 586-8145. Email: Michael.Kido@hq.doe.gov . SUPPLEMENTARY INFORMATION: Table of Contents I. Summary of the Proposed Rule A. Benefits and Costs to Consumers B. Impact on Manufacturers C. National Benefits II. Introduction A. Authority B. Background 1. Current Standards 2. History of Standards Rulemaking for Walk-In Coolers and Freezers III. General Discussion A. Component Level Standards B. Test Procedures and Metrics 1. Panels 2. Doors 3. Refrigeration C. Prescriptive Versus Performance Standards D. Certification, Compliance, and Enforcement E. Technological Feasibility 1. General 2. Maximum Technologically Feasible Levels F. Energy Savings 1. Determination of Savings 2. Significance of Savings G. Economic Justification 1. Specific Criteria a. Economic Impact on Manufacturers and Consumers b. Life-Cycle Costs c. Energy Savings d. Lessening of Utility or Performance of Products e. Impact of Any Lessening of Competition f. Need of the Nation to Conserve Energy g. Other Factors 2. Rebuttable Presumption IV. Methodology and Discussion A. Market and Technology Assessment 1. Definitions Related to Walk-In Coolers and Freezers a. Display Doors b. Freight Doors c. Passage Doors 2. Equipment Included in this Rulemaking a. Panels and Doors b. Refrigeration System 3. Equipment Classes a. Panels and Doors b. Refrigeration Systems 4. Technology Assessment B. Screening Analysis 1. Technologies That Do Not Affect Rated Performance 2. Screened-Out Technologies a. Panels and Doors b. Refrigeration 3. Screened-In Technologies C. Engineering Analysis 1. Representative Equipment a. Panels and Doors b. Refrigeration 2. Energy Modeling Methodology a. Refrigeration 3. Cost Assessment Methodology a. Teardown Analysis b. Cost Model c. Manufacturing Production Cost d. Manufacturing Markup e. Shipping Costs 4. Baseline Specifications a. Panels and Doors b. Refrigeration 5. Design Options a. Panels and Doors b. Refrigeration 6. Cost-Efficiency Results a. Panels and Doors b. Refrigeration c. Numerical Results D. Markups Analysis E. Energy Use Analysis 1. Sizing Methodology for the Refrigeration System 2. Oversize Factors 3. Product Load 4. Other Issues F. Life-Cycle Cost and Payback Period Analyses 1. Equipment Cost 2. Installation Cost 3. Annual Energy Consumption 4. Energy Prices 5. Energy Price Projections 6. Maintenance and Repair Costs 7. Product Lifetime 8. Discount Rates 9. Compliance Date of Standards 10. Base-Case and Standards-Case Efficiency Distributions 11. Inputs to Payback Period Analysis 12. Rebuttable-Presumption Payback Period G. National Impact Analysis—National Energy Savings and Net Present Value 1. Shipments a. Share of Shipments and Stock Across Equipment Classes b. Lifetimes and Replacement Rates c. Growth Rates d. Other Issues 2. Forecasted Efficiency in the Base Case and Standards Cases 3. National Energy Savings 4. Net Present Value of Consumer Benefit 5. Benefits from Effects of Standards on Energy Prices H. Consumer Subgroup Analysis I. Manufacturer Impact Analysis 1. Overview 2. Government Regulatory Impact Model Analysis a. Government Regulatory Impact Model Key Inputs b. Government Regulatory Impact Model Scenarios 3. Discussion of Comments a. Cumulative Regulatory Burden b. Inventory Levels c. Manufacturer Subgroup Analysis 4. Manufacturer Interviews a. Cost of testing b. Enforcement and Compliance c. Profitability Impacts d. Excessive Conversion Cost e. Disproportionate Impact on Small Businesses f. Refrigerant Phase-Out J. Employment Impact Analysis K. Utility Impact Analysis L. Emissions Analysis M. Monetizing Carbon Dioxide and Other Emissions Impacts 1. Social Cost of Carbon a. Monetizing Carbon Dioxide Emissions b. Social Cost of Carbon Values Used in Past Regulatory Analyses c. Current Approach and Key Assumptions 2. Valuation of Other Emissions Reductions V. Analytical Results A. Trial Standard Levels 1. Trial Standard Level Selection Process 2. Trial Standard Level Equations B. Economic Justification and Energy Savings 1. Economic Impacts on Commercial Customers a. Life-Cycle Cost and Payback Period b. Life-Cycle Cost Subgroup Analysis 2. Economic Impacts on Manufacturers a. Industry Cash-Flow Analysis Results b. Impacts on Direct Employment c. Impacts on Manufacturing Capacity d. Impacts on Small Manufacturer Sub-Group e. Cumulative Regulatory Burden 3. National Impact Analysis a. Amount and Significance of Energy Savings b. Net Present Value of Consumer Costs and Benefits c. Employment Impacts 4. Impact on Utility or Performance of Equipment 5. Impact of Any Lessening of Competition 6. Need of the Nation to Conserve Energy 7. Other Factors C. Proposed Standard VI. Procedural Issues and Regulatory Review A. Review Under Executive Orders 12866 and 13563 B. Review Under the Regulatory Flexibility Act 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 VII. Public Participation A. Attendance at the Public Meeting B. Procedure for Submitting Prepared General Statements for Distribution C. Conduct of the Public Meeting D. Submission of Comments E. Issues on Which DOE Seeks Comment VIII. Approval of the Office of the Secretary I. Summary of the Proposed Rule DOE proposes creating new performance-based energy conservation standards for walk-in coolers and walk-in freezers (collectively, “walk-ins” or “WICFs”). The proposed standards, which are expressed as an annual walk-in energy factor (AWEF) for refrigeration systems, the maximum allowable U-factor expressed as a function of the ratio of edge area to core area for panels, and the maximum allowable daily energy use expressed as a function of the surface area for non-display and display doors, are shown in Table I.1. These proposed standards, if adopted, would apply to all products listed in Table I.1 and manufactured in, or imported into, the United States on or after 3 years after the publication date of any final rule establishing energy conservation standards for walk-ins. Appendix 10D of the TSD lists the technologies that DOE assumes manufacturers will use to meet the proposed standards. Ep11SE13.000 Ep11SE13.001 A. Benefits and Costs to Consumers Table I-2 presents DOE's evaluation of the economic impacts of the proposed standards on consumers of walk-in coolers and freezers, as measured by the shipment-weighted average life-cycle cost (LCC) savings 1 and the median payback period. 2 The average LCC savings are positive for all equipment classes. At TSL 4, the percentage of customers who experience net benefits or no impacts ranges from 55 to 100 percent, and the percentage of customers experiencing a net cost ranges from 0 to 45 percent. Chapter 11 presents the LCC subgroup analysis on groups of customers that may be disproportionately affected by the proposed standard. The installed cost increase over the 9-year analysis period (2017-2025) for the proposed TSL is 1.98 billion discounted at 7 percent. 1 Life-cycle cost (LCC) of commercial refrigeration equipment is the cost to customers of owning and operating the equipment over the entire life of the equipment. Life-cycle cost savings are the reductions in the life-cycle costs due to amended energy conservation standards when compared to the life-cycle costs of the equipment in the absence of amended energy conservation standards. Further discussion of the LCC analysis can be found in Chapter 8 of the TSD. 2 Payback period (PBP) refers to the amount of time (in years) it takes customers to recover the increased installed cost of equipment associated with new or amended standards through savings in operating costs. Further discussion of the PBP can be found in Chapter 8 of the TSD. Table I-2—Shipment-Weighted Average Impacts of Proposed Standards (TSL 4) on Consumers of Walk-In Coolers and Walk-In Freezers Equipment class Average LCC savings (2012$) Median payback period (years) Refrigeration System Class:* DC.M.I $611 4.4 DC.M.O 3,195 2.2 DC.L.I 1,117 2.7 DC.L.O 2,664 2.3 MC.M 1,724 0.5 MC.L 2,061 0.4 Panel Class: SP.M** 8 4.5 SP.L** 72 3.6 FP.L** 30 4.5 Non-Display Door Class: PD.M 0.3 5.5 PD.L 52 4.7 FD.M 1 5.4 FD.L 136 2.9 Display Door Class: DD.M 228 2.2 DD.L 200 N/A * For dedicated condensing (DC) refrigeration systems, results include both capacity ranges. ** Results are per 100 square feet. 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 (2013 to 2046). Using real discount rates of 10.5 percent for panels, 9.4 percent for doors, and 10.4 percent for refrigeration 3 , DOE estimates that the industry net present value (INPV) for manufacturers of walk-in cooler and freezer refrigeration systems, panels, and doors in the base case (without new standards) is $851 million in 2012$. Under the proposed standards, DOE expects the impact on INPV to range from no change to a 9 percent decrease. Total industry conversion costs estimated to be $51 million are assumed to be incurred in the years prior to the start of compliance with the standards. Based on DOE's interviews with the manufacturers of walk-in coolers and walk-in freezers, DOE does not expect significant loss of employment. 3 These rates were used to discount future cash flows in the Manufacturer Impact Analysis. The discount rates were calculated from SEC filings and then adjusted based on cost of capital feedback collected from walk-in door, panel, and refrigeration manufacturers in MIA interviews. For a detailed explanation of how DOE arrived at these discount rates, refer to Chapter 12 of the NOPR TSD. C. National Benefits 4 4 All monetary values in this section are expressed in 2012 dollars and are discounted to 2013. DOE's analyses indicate that the proposed standards would save a significant amount of energy. The lifetime full-fuel-cycle energy savings for walk-in coolers and freezers purchased in the 30-year period that begins in the year of compliance with new standards (2017-2046) amount to 5.39 quadrillion British thermal units (quads). The average annual energy savings over the life of walk-in coolers and freezers purchased in 2017 through 2046 is 0.18 quads, which is equivalent to 14.8 percent of the annual U.S commercial refrigeration sector energy. 5 5 Total U.S. commercial sector energy (source energy) used for refrigeration in 2010 was 1.21 quads. Source: U.S. Department of Energy—Office of Energy Efficiency and Renewable Energy. Buildings Energy Data Book, Table 3.1.4, 2010 Commercial Energy End-Use Splits, by Fuel Type (Quadrillion Btu). 2012. (Last accessed April 23, 2013.) http://buildingsdatabook.eren.doe.gov/TableView.aspx?table=3.1.4 The cumulative net present value (NPV) of total consumer costs and savings of the proposed standards ranges from $8.6 billion (at a 7-percent discount rate) to $24.3 billion (at a 3-percent discount rate) for walk-in coolers and freezers. This NPV expresses the estimated total value to customers of future operating cost savings minus the estimated increased product costs for products purchased in 2017-2046. In addition, the proposed standards would have significant environmental benefits. The energy savings would result in cumulative emission reductions of 298 million metric tons (Mt) 6 of carbon dioxide (CO 2 ), 1,428 thousand tons of methane, 379.5 thousand tons of sulfur dioxide (SO 2 ), 443.8 thousand tons of nitrogen oxides (NO X ), and 0.6 tons of mercury (Hg). 7 8 6 A metric ton is equivalent to 1.1 short tons. Results for NO X and Hg are presented in short tons. 7 DOE calculates emissions reductions relative to the Annual Energy Outlook (AEO) 2013 Reference case, which generally represents current legislation and environmental regulations for which implementing regulations were available as of December 31, 2012. 8 DOE also estimated CO 2 and CO 2 equivalent (CO 2 eq) emissions that occur through 2030 (CO 2 eq includes greenhouse gases such as CH 4 and N 2 O). The estimated emissions reductions through 2030 are 79 million metric tons CO 2 , 7,897 thousand tons CO 2 eq for CH 4 , and 338 thousand tons CO 2 eq for N 2 O. 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 an interagency process. The derivation of the SCC values is discussed in section IV.M. DOE estimates the net present monetary value of the CO 2 emissions reduction is between $1.9 billion and $27.5 billion, depending on the SCC value used, over a 30-year analysis period. DOE also estimates the net present monetary value of the NO X emissions reduction is $243 million at a 7-percent discount rate and $553 million at a 3-percent discount rate over a 30-year analysis period. Over a 9-year analysis period, DOE estimates the net present monetary value of the CO 2 emissions reduction is between $0.33 billion and $4.07 billion, depending on the SCC value used, while the net present monetary value of the NO X emissions reduction is $70.5 million at a 7-percent discount rate and $99.8 million at a 3-percent discount rate. 9 DOE notes that the estimated total social benefits of the rule outweigh the costs whether a 30-year or a 9-year analysis period is used. 9 DOE has decided to await further guidance regarding consistent valuation and reporting of Hg emissions before it monetizes Hg in its rulemakings. Table I-3 summarizes the national economic costs and benefits expected to result from the proposed standards for walk-in coolers and walk-in freezers. Table I-3—Summary of National Economic Benefits and Costs of Walk-In Cooler and Walk-In Freezer Energy Conservation Standards Category Present value Billion 2012$ Discount rate (percent) Benefits Operating Cost Savings 12.4 7 31.6 3 CO 2 Reduction Monetized Value (at $12.9/t case)* 1.9 5 CO 2 Reduction Monetized Value (at $40.8/t case)* 9.0 3 CO 2 Reduction Monetized Value (at $62.2/t case)* 14.4 2.5 CO 2 Reduction Monetized Value (at $117.0/t case)* 27.5 3 NO X Reduction Monetized Value (at $2,639/Ton)** 0.24 7 0.55 3 Total Benefits† 21.6 7 41.1 3 Costs Incremental Installed Costs 3.8 7 7.2 3 Net Benefits Including CO 2 and NO X Reduction Monetized Value 17.8 7 33.9 3 * The interagency group selected four sets of SCC values for use in regulatory analyses. Three sets of values are based on the average SCC from the integrated assessment models, at discount rates of 2.5, 3, and 5 percent. The fourth set, which represents the 95th percentile SCC estimate across all three models at a 3-percent discount rate, is included to represent higher-than-expected impacts from temperature change further out in the tails of the SCC distribution. The values in parentheses represent the SCC in 2015. The SCC time series incorporate an escalation factor. ** The value represents the average of the low and high NO X values used in DOE's analysis. † Total Benefits for both the 3 percent and 7 percent cases are derived using the CO 2 reduction monetized value series corresponding to average SCC with 3-percent discount rate. The benefits and costs of today's proposed standards, for equipment sold in 2017-2046, can also be expressed in terms of annualized values. The annualized monetary values are the sum of (1) the annualized national economic value of the benefits from consumer operation of equipment that meets the proposed standards (consisting primarily of operating cost savings from using less energy, minus increases in equipment purchase and installation costs, and (2) the annualized monetary value of the benefits of emission reductions, including CO 2 emission reductions. 10 10 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 2013, 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. 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 combining the values of operating savings and CO 2 emission reductions provides a useful perspective, two issues should be considered. First, the national operating savings are domestic U.S. consumer monetary savings that occur as a result of market transactions while the value of CO 2 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 is measured for the lifetime of walk-ins shipped from 2017-2046. The SCC values, on the other hand, reflect the present value of some future climate-related impacts resulting from the emission of one ton of carbon dioxide in each year. These impacts continue well beyond 2100. Table I-4 shows the estimates of annualized benefits and costs of the proposed standards. (All monetary values below are expressed in 2012$.) 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 average SCC series that uses a 3-percent discount rate, the cost of the standards proposed in today's rule is $367 million per year in increased equipment costs, while the annualized benefits are $1.225 billion per year in reduced equipment operating costs, $499 million in CO 2 reductions, and $24 million in reduced NO X emissions. In this case, the net benefit amounts to $1.382 billion per year. Using a 3-percent discount rate for all benefits and costs and the average SCC series, the cost of the standards proposed in today's rule is $399 million per year in increased equipment costs, while the benefits are $1.606 billion per year in reduced operating costs, $499 million in CO 2 reductions, and $31 million in reduced NO X emissions. In this case, the net benefit amounts to $1.737 billion per year. Table I-4—Annualized Benefits and Costs of Proposed Standards for Walk-In Coolers and Walk-In Freezers Discount rate Primary estimate* (million 2012$/year) Low net benefits estimate* High net benefits estimate* Benefits Operating Cost Savings 7% 1,225 1,188 1,279 3% 1,606 1,544 1,687 CO 2 Reduction Monetized Value (at $12.9t case)** 5% 142 142 142 CO 2 Reduction Monetized Value (at $40.8/t case)** 3% 499 499 499 CO 2 Reduction Monetized Value (at $62.2/t case)** 2.50% 739 739 739 CO 2 Reduction Monetized Value (at $117.0/t case)** 3% 1,534 1,534 1,534 NO X Reduction Monetized Value (at $2,639/Ton)** 7% 24 24 24 3% 31 31 31 Total Benefits† 7% plus CO 2 range 1,748 1,712 1,803 7% 1,249 1,212 1,303 3% 1,637 1,574 1,718 3% plus CO 2 range 2,136 2,074 2,217 Costs Total Incremental Installed Costs 7% 367 377 357 3% 399 414 385 Net Benefits Total† 7% plus CO 2 range 1,382 1,335 1,446 7% 883 835 946 3% 1,238 1,160 1,333 3% plus CO 2 range 1,737 1,660 1,832 * This table presents the annualized costs and benefits associated with walk-in coolers and freezers shipped in 2017−2046. These results include benefits to consumers which accrue after 2046 from the walk-in coolers and freezers purchased in 2017-2046. Costs incurred by manufacturers, some of which may be incurred in preparation for the rule, are not directly included, but are indirectly included as part of incremental equipment costs. The Primary, Low Benefits, and High Benefits Estimates utilize projections of energy prices from the AEO2013 Reference case, Low Estimate, and High Estimate, respectively. In addition, incremental product costs reflect a medium decline rate for projected product price trends in the Primary Estimate, a low decline rate for projected product price trends using a Low Benefits Estimate, and a high decline rate for projected product price trends using a High Benefits Estimate. ** The interagency group selected four sets of SCC values for use in regulatory analyses. Three sets of values are based on the average SCC from the three integrated assessment models, at discount rates of 2.5, 3, and 5 percent. The fourth set, which represents the 95th percentile SCC estimate across all three models at a 3-percent discount rate, is included to represent higher-than-expected impacts from temperature change further out in the tails of the SCC distribution. The values in parentheses represent the SCC in 2015. The SCC time series incorporate an escalation factor. The value for NO X 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 series corresponding to average SCC with 3-percent discount rate. In the rows labeled “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. DOE has tentatively concluded that the proposed standards represent the maximum improvement in energy efficiency that is technologically feasible and economically justified. DOE further notes that manufacturers already produce commercially available equipment that achieve these levels for most, if not all, equipment classes covered by today's proposal. Based on the analyses described above, DOE has tentatively concluded that the benefits of the proposed standards to the Nation (energy savings, positive NPV of consumer benefits, consumer LCC savings, and emission reductions) would outweigh the burdens (loss of INPV for manufacturers). DOE also considered more-stringent and less-stringent efficiency levels as trial standard levels (TSLs), and is still considering them in this rulemaking. However, DOE has tentatively concluded that the potential burdens of the more-stringent efficiency levels would outweigh the projected benefits. Based on consideration of the public comments DOE receives in response to this notice and related information collected and analyzed during the course of this rulemaking effort, DOE may adopt efficiency levels presented in this notice that are either higher or lower than the proposed standards, or some combination of level(s) that incorporate the proposed standards in part. II. Introduction The following section briefly discusses the statutory authority underlying today's proposal, as well as some of the relevant historical background related to walk-ins. A. Authority Title III, Part C of EPCA, Public Law 94-163 (42 U.S.C. 6311-6317, as codified), added by Public Law 95-619, Title IV, section 441(a), established the Energy Conservation Program for Certain Industrial Equipment, a program covering certain industrial equipment, which includes the walk-in coolers and walk-in freezers that are the focus of this notice. 11 12 (42 U.S.C. 6311(1), (20), 6313(f) and 6314(a)(9)) Walk-ins consist of two major pieces—the structural “envelope” within which items are stored and a refrigeration system that cools the air in the envelope's interior. 11 All references to EPCA in this document refer to the statute as amended through the American Energy Manufacturing Technical Corrections Act (AEMTCA), Public Law 112-210 (Dec. 18, 2012). 12 For editorial reasons, upon codification in the U.S. Code, Part C was re-designated Part A-1. DOE's energy conservation program for covered equipment generally consists of four parts: (1) Testing; (2) labeling; (3) the establishment of Federal energy conservation standards; and (4) certification and enforcement procedures. For walk-ins, DOE is responsible for the entirety of this program. The DOE test procedures for walk-ins, including those prescribed by Congress in EISA 2007 and those established by DOE in the test procedure final rule, currently appear at title 10 of the Code of Federal Regulations (CFR) part 431, section 304. Any new or amended performance standards that DOE prescribes for walk-ins must achieve the maximum improvement in energy efficiency that is technologically feasible and economically justified. (42 U.S.C. 6313(f)(4)(A)) For purposes of this rulemaking, DOE also plans to adopt those standards that are likely to result in a significant conservation of energy that satisfies both of these requirements. See 42 U.S.C. 6295(o)(3)(B). Technological feasibility is determined by examining technologies or designs that could be used to improve the efficiency of the covered equipment. DOE considers a design to be technologically feasible if it is in use by the relevant industry or if research has progressed to the development of a working prototype. In ascertaining whether a particular standard is economically justified, DOE considers, to the greatest extent practicable, the following factors: 1. The economic impact of the standard on manufacturers and consumers of the equipment subject to the standard; 2. The savings in operating costs throughout the estimated average life of the covered equipment in the type (or class) compared to any increase in the price, initial charges, or maintenance expenses for the covered equipment 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 equipment 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 (Secretary) considers relevant. (42 U.S.C. 6295(o)(2)(B)(i) (I)-(VII)) DOE does not plan to prescribe an amended or new standard if interested persons have established by a preponderance of the evidence that the standard is likely to result in the unavailability in the United States of 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. Further, under EPCA's provisions for consumer products, there is 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. (42 U.S.C. 6295(o)(2)(B)(iii)) For purposes of its walk-in analysis, DOE plans to account for these factors. Additionally, when a type or class of covered equipment such as walk-ins has two or more subcategories, in promulgating standards for such equipment, DOE often specifies more than one standard level. DOE generally will adopt a different standard level than that which applies generally to such type or class of products for any group of covered products that have the same function or intended use if DOE determines that products within such group (A) consume a different kind of energy than that consumed by other covered products within such type (or class) or (B) have a capacity or other performance-related feature that other products within such type (or class) do not have, and which justifies a higher or lower standard. Generally, in determining whether a performance-related feature justifies a different standard for a group of products, DOE considers such factors as the utility to the consumer of the feature and other factors DOE deems appropriate. In a rule prescribing such a standard, DOE typically includes an explanation of the basis on which such higher or lower level was established. DOE plans to follow a similar process in the context of today's rulemaking. DOE notes that since the inception of the statutory requirements setting standards for walk-ins, Congress has since made one additional amendment to those provisions. That amendment provides that the wall, ceiling, and door insulation requirements detailed in 42 U.S.C. 6313(f)(1)(C) do not apply to the given component if the component's manufacturer has demonstrated to the Secretary's satisfaction that “the component reduces energy consumption at least as much” if those specified requirements were to apply to that manufacturer's component. American Energy Manufacturing Technology Corrections Act, Public Law 112-210, Section 2 (Dec. 18, 2012) (codified at 42 U.S.C. 6313(f)(6)) (AEMTCA). Manufacturers seeking to avail themselves of this provision must “provide to the Secretary all data and technical information necessary to fully evaluate its application.” Id. DOE is proposing to codify this amendment into its regulations. Since its codification, one company, HH Technologies, submitted data on May 24, 2013, demonstrating that its RollSeal doors satisfied this new AEMTCA provision. DOE reviewed these data and all other submitted information and concluded that the RollSeal doors at issue satisfied 42 U.S.C. 6313(f)(6). Accordingly, DOE issued a determination letter on June 14, 2013, indicating that these doors met Section 6313(f)(6) and that the applicable insulation requirements did not apply to the RollSeal doors HH Technologies identified. Nothing in this proposed rule affects the previous determination regarding HH Technologies. Federal energy conservation requirements generally pre-empt state laws or regulations concerning energy conservation testing, labeling, and standards. (42 U.S.C. 6297(a); 42 U.S.C. 6316(b)) However, EPCA provides that for walk-ins in particular, any state standard issued before publication of the final rule shall not be pre-empted until the standards established in the final rule take effect. (42 U.S.C 6316(h)(2)(B)) Where applicable, DOE generally considers standby and off mode energy use for certain covered products or equipment when developing energy conservation standards. See 42 U.S.C. 6295(gg)(3). Because the vast majority of walk-in coolers and walk-in freezers operate continuously to keep their contents cold at all times, DOE is not proposing standards for standby and off mode energy use. B. Background 1. Current Standards EPCA defines a walk-in cooler and a walk-in freezer as an enclosed storage space refrigerated to temperatures above, and at or below, respectively, 32 °F that can be walked into. The statute also defines walk-in coolers and freezers as having a total chilled storage area of less than 3,000 square feet, excluding products designed and marketed exclusively for medical, scientific, or research purposes. (42 U.S.C 6311(20)) EPCA also provides prescriptive standards for walk-in coolers and freezers manufactured on or after January 1, 2009, which are described below. First, EPCA sets forth general prescriptive standards for walk-ins. Walk-ins must have automatic door closers that firmly close all walk-in doors that have been closed to within 1 inch of full closure, for all doors narrower than 3 feet 9 inches and shorter than 7 feet; walk-ins must also have strip doors, spring hinged doors, or other methods of minimizing infiltration when doors are open. Walk-ins must also contain wall, ceiling, and door insulation of at least R-25 for coolers and R-32 for freezers, excluding glazed portions of doors and structural members, and floor insulation of at least R-28 for freezers. Walk-in evaporator fan motors of under 1 horsepower and less than 460 volts must be electronically commutated motors (brushless direct current motors) or three-phase motors, and walk-in condenser fan motors of under 1 horsepower must use permanent split capacitor motors, electronically commutated motors, or three-phase motors. Interior light sources must have an efficacy of 40 lumens per watt or more, including any ballast losses; less-efficacious lights may only be used in conjunction with a timer or device that turns off the lights within 15 minutes of when the walk-in is unoccupied. See 42 U.S.C. 6313(f)(1). Second, EPCA sets forth new requirements related to electronically commutated motors for use in walk-ins. See 42 U.S.C. 6313(f)(2)). Specifically, in those walk-ins that use an evaporator fan motor with a rating of under 1 horsepower and less than 460 volts, that motor must be either a three-phase motor or an electronically commutated motor unless DOE determined prior to January 1, 2009 that electronically commutated motors are available from only one manufacturer. (42 U.S.C. 6313(f)(2)(A)) DOE determined by January 1, 2009 that these motors were available from more than one manufacturer; thus, according to EPCA, walk-in evaporator fan motors with a rating of under 1 horsepower and less than 460 volts must be either three-phase motors or electronically commutated motors. DOE documented this determination in the rulemaking docket as docket ID EERE-2008-BT-STD-0015-0072. This document can be found at http://www.regulations.gov/#!documentDetail;D=EERE-2008-BT-STD-0015-0072 . Additionally, EISA provided DOE with the authority to permit the use of other types of motors as evaporative fan motors—if DOE determines that, on average, those other motor types use no more energy in evaporative fan applications than electronically commutated motors. (42 U.S.C. 6313(f)(2)(B)) DOE is unaware of any other motors that would offer performance levels comparable to the electronically commutated motors required by Congress. Accordingly, all evaporator motors rated at under 1 horsepower and under 460 volts must be electronically commutated motors or three-phase motors. Third, EPCA sets forth additional requirements for walk-ins with transparent reach-in doors. Freezer doors must have triple-pane glass with either heat-reflective treated glass or gas fill for doors and windows for freezers. Cooler doors must have either double-pane glass with treated glass and gas fill or triple-pane glass with treated glass or gas fill. (42 U.S.C. 6313(f)(3)(A)-(B)) For walk-ins with transparent reach-in doors, EISA also prescribed specific anti-sweat heater-related requirements: Walk-ins without anti-sweat heater controls must have a heater power draw of no more than 7.1 or 3.0 watts per square foot of door opening for freezers and coolers, respectively. Walk-ins with anti-sweat heater controls must either have a heater power draw of no more than 7.1 or 3.0 watts per square foot of door opening for freezers and coolers, respectively, or the anti-sweat heater controls must reduce the energy use of the heater in a quantity corresponding to the relative humidity of the air outside the door or to the condensation on the inner glass pane. See 42 U.S.C. 6313(f)(3)(C)-(D). 2. History of Standards Rulemaking for Walk-In Coolers and Freezers EPCA directs the Secretary to issue performance-based standards for walk-ins that would apply to equipment manufactured 3 years after the final rule is published, or 5 years if the Secretary determines by rule that a 3-year period is inadequate. (42 U.S.C. 6313(f)(4)) DOE initiated the current rulemaking by publishing a notice announcing the availability of its “Walk-In Coolers and Walk-In Freezers Energy Conservation Standard Framework Document” and a meeting to discuss the document. The notice also solicited comment on the matters raised in the document. 74 FR 411 (Jan 6, 2009). More information on the framework document is available at: http://www1.eere.energy.gov/buildings/appliance_standards/rulemaking.aspx/ruleid/30 . The framework document described the procedural and analytical approaches that DOE anticipated using to evaluate energy conservation standards for walk-ins and identified various issues to be resolved in conducting this rulemaking. DOE held the framework public meeting on February 4, 2009, in which it: (1) Presented the contents of the framework document; (2) described the analyses it planned to conduct during the rulemaking; (3) sought comments from interested parties on these subjects; and (4) in general, sought to inform interested parties about, and facilitate their involvement in, the rulemaking. Major issues discussed at the public meeting included: (1) The scope of coverage for the rulemaking; (2) development of a test procedure and appropriate test metrics; (3) manufacturer and market information, including distribution channels; (4) equipment classes, baseline units, and design options to improve efficiency; and (5) life-cycle costs to consumers, including installation, maintenance, and repair costs, and any consumer subgroups DOE should consider. At the meeting and during the comment period on the framework document, DOE received many comments that helped it identify and resolve issues pertaining to walk-ins relevant to this rulemaking. DOE then gathered additional information and performed preliminary analyses to help develop potential energy conservation standards for this equipment. This process culminated in DOE's announcement of another public meeting to discuss and receive comments on the following matters: (1) The equipment classes DOE planned to analyze; (2) the analytical framework, models, and tools that DOE used to evaluate standards; (3) the results of the preliminary analyses performed by DOE; and (4) potential standard levels that DOE could consider. 75 FR 17080 (April 5, 2010) (the April 2010 Notice). DOE also invited written comments on these subjects and announced the availability on its Web site of a preliminary technical support document (preliminary TSD) it had prepared to inform interested parties and enable them to provide comments. Id. (More information about the preliminary TSD is available at: http://www1.eere.energy.gov/buildings/appliance_standards/rulemaking.aspx/ruleid/30 .)Finally, DOE sought views on other relevant issues that participants believed either would impact walk-in standards or that the proposal should address. Id. at 17083. The preliminary TSD provided an overview of the activities DOE undertook to develop standards for walk-ins and discussed the comments DOE received in response to the framework document. The preliminary TSD also addressed separate standards for the walk-in envelope and the refrigeration system, as well as compliance and enforcement responsibilities and food safety regulatory concerns. The document also described the analytical framework that DOE used (and continues to use) in considering standards for walk-in coolers and freezers, including a description of the methodology, the analytical tools, and the relationships between the various analyses that are part of this rulemaking. Additionally, the preliminary TSD presented in detail each analysis that DOE had performed for these products up to that point, including descriptions of inputs, sources, methodologies, and results. These analyses were as follows: • A market and technology assessment addressed the scope of this rulemaking, identified the potential classes for walk-in coolers and freezers, characterized the markets for these products, and reviewed techniques and approaches for improving their efficiency; • A screening analysis reviewed technology options to improve the efficiency of walk-in coolers and freezers, and weighed these options against DOE's four prescribed screening criteria; • An engineering analysis estimated the manufacturer selling prices (MSPs) associated with more energy-efficient walk-in coolers and freezers; • An energy use analysis estimated the annual energy use of walk-in coolers and freezers; • A markups analysis converted estimated MSPs derived from the engineering analysis to consumer prices; • A life-cycle cost analysis calculated, for individual consumers, the discounted savings in operating costs throughout the estimated average life of walk-in coolers and freezers, compared to any increase in installed costs likely to result directly from the imposition of a given standard; • A payback period analysis estimated the amount of time it takes individual consumers to recover the higher purchase price expense of more energy-efficient products through lower operating costs; • A shipments analysis estimated shipments of walk-in coolers and freezers over the time period examined in the analysis, and was used in performing the national impact analysis; • A national impact analysis assessed the national energy savings and the national net present value of total consumer costs and savings that are expected to result from specific potential energy conservation standards for walk-in coolers and freezers; and • A preliminary manufacturer impact analysis (MIA) took the initial steps in evaluating the effects on manufacturers of new efficiency standards. The public meeting announced in the April 2010 Notice took place on May 19, 2010. At this meeting, DOE presented the methodologies and results of the analyses set forth in the preliminary TSD. Interested parties that participated in the public meeting discussed a variety of topics, but the comments centered on the following issues: (1) Separate standards for the refrigeration system and the walk-in envelope; (2) responsibility for compliance; (3) equipment classes; (4) technology options; (5) energy modeling; (6) installation, maintenance, and repair costs; (7) markups and distributions chains; (8) walk-in cooler and freezer shipments; and (9) test procedures. The comments received since publication of the April 2010 Notice, including those received at the May 2010 public meeting, have contributed to DOE's proposed resolution of the issues in this rulemaking as they pertain to walk-ins. This NOPR responds to the issues raised by the commenters. (A parenthetical reference at the end of a quotation or paraphrase provides the location of the item in the public record.) III. General Discussion In preparing today's notice, DOE considered input from the various interested parties who commented on the framework document and preliminary analysis, information obtained from manufacturer interviews, and additional research that DOE conducted. The interested parties who provided comments to DOE during the framework document and preliminary analysis phases included the following: Table III-1—Framework and Preliminary Analysis Commenters Commenter(s) Abbreviated designation Affiliation Comment number(s) in docket AFM Corporation AFM Manufacturer 0012.1 Air-Conditioning, Heating, and Refrigeration Institute AHRI Trade Association 0036.1, 0055.1 American Chemistry Council ACC Material Supplier 0062.1 American Chemistry Council Center for the Polyurethanes Industry CPI Material Supplier 0052.1 American Council for an Energy Efficient Economy, Appliance Standards Awareness Project, Alliance to Save Energy, Natural Resources Defense Council, Northwest Energy Efficiency Alliance Joint Advocates Energy Efficiency Advocates 0070.1 American Panel Corporation American Panel Manufacturer 0039.1, 0048.1 AmeriKooler, Inc. AmeriKooler Manufacturer 0065.1 Appliance Standards Awareness Project ASAP Energy Efficiency Advocate 0024.1 Bally Refrigerated Boxes, Inc. Bally Manufacturer 0023.1 Carpenter Co. Chemical Systems Division Carpenter Material Supplier 0068.1 Craig Industries, Inc. and U.S. Cooler Company Craig Industries Manufacturer 0064.1 Craig Industries, Inc. and US Cooler Company Craig Industries Manufacturer 0011.1, 0025.1, 0038.1, 0064.1, 0071.1 CrownTonka Walk-Ins CrownTonka Manufacturer 0026.1, 0057.1 Earthjustice Earthjustice Energy Efficiency Advocate 0027.1, 0047.1 Edison Electric Institute EEI Energy Efficiency Advocate 0028.1 Eliason Corporation Eliason Manufacturer 0013.1, 0022.1 Foam Supplies, Inc. FSI Material Supplier 0029.1 Heatcraft Refrigeration Products LLC Heatcraft Manufacturer 0058.1, 0069.1 Heating, Air-conditioning & Refrigeration Distributors International HARDI Trade Association 0031.1 Hill Phoenix Walk-Ins Hill Phoenix Manufacturer 0066.1 Hired Hand Technologies Hired Hand Manufacturer 0030.1, 0050.1 Hussmann and Ingersoll Rand Ingersoll Rand Manufacturer 0053.1 Kason Industries, Inc. Kason Component Supplier 0009.1, 0019.1 Kysor Panel Systems Kysor Manufacturer 0032.1, 0054.1 Manitowoc Ice Manitowoc Manufacturer 0056.1 Master-Bilt Products, Inc. Master-Bilt Manufacturer 0033.1, 0046.1 NanoPore Insulation, LLC NanoPore Material Supplier 0067.1 Nor-Lake, Incorporated Nor-Lake Manufacturer 0049.1 Owens Corning Foam Insulation, LLC Owens Corning Material Supplier 0034.1 Southern California Edison and Technology Test Centers SCE Utility 0035.1 Southern California Edison, San Diego Gas & Electric, Pacific Gas & Electric Company, Sacramento Municipal Utility District Joint Utilities Utility Group 0061.1 The Northwest Energy Efficiency Alliance and the Northeast Power Coordinating Council NEEA and NPCC Utility Representative 0021.1, 0059.1 Zero-Zone, Inc. Zero-Zone Manufacturer 0051.1 A. Component Level Standards In the framework document, DOE considered setting standards that would apply to the entire walk-in. See the framework document at http://www1.eere.energy.gov/buildings/appliance_standards/commercial/pdfs/wicf_framework_doc.pdf . Several interested parties expressed concern about this approach because of the variety among assembled walk-ins, which would make compliance with such a walk-in standard difficult and burdensome. Stakeholders also stated that different components of each walk-in would likely be manufactured by different entities, which would make it difficult to enforce any standard that applied to an entire walk-in. After considering the comments submitted on the framework document, DOE modified its approach in the preliminary analysis. During that phase, it had tentatively identified two primary components of a walk-in: the envelope (the insulated box that separates the exterior from the interior) and the refrigeration system (the mechanical equipment that cools the envelope's interior). DOE also indicated that it was tentatively considering developing separate standards for refrigeration systems and envelopes. Several interested parties agreed with this general approach. Manitowoc supported separate standards for the envelope and refrigeration system, stating that the envelope is typically supplied by one manufacturer and the refrigeration system is typically supplied by one or more manufacturers. (Manitowoc, Public Meeting Transcript, No. 0045 at p. 38 and No. 0056.1 at p. 1) Manitowoc further stated that it would not be practical to regulate the energy used by the entire walk-in assembly because walk-ins are highly customized. Manitowoc estimated that fewer than 20 percent of its walk-ins use a standard envelope and refrigeration system combination. (Manitowoc, No. 0056.1 at p. 1) Pacific Gas and Electric Company, Southern California Edison, Sempra Energy Utility, and the Sacramento Municipal Utility District (hereafter referred to as the “Joint Utilities”) also agreed with DOE's proposal to separate the refrigeration system standards from the envelope standards because the components are separately produced and often separately sold. (Joint Utilities, No. 0061.1 at pp. 2-3) American Panel stated that the envelope and refrigeration systems must be considered separately because the majority of WICFs are custom-made. (American Panel, No. 0048.1 at p. 4) Kysor, Master-Bilt, AHRI, and CrownTonka all supported separate standards for the envelope and refrigeration systems. (Kysor, Public Meeting Transcript, No. 0045 at p. 39; Master-Bilt, No. 0046.1 at p. 1; AHRI, No. 0055.1 at p. 2; CrownTonka, No. 0057.1 at p. 1) One interested party did not agree with this approach. Craig Industries, also doing business as U.S. Cooler, commented that DOE should establish a combination standard for the envelope and refrigeration system to permit manufacturers greater flexibility when designing walk-ins. Under this combination approach, a more efficient envelope could be paired with a less efficient refrigeration system, or vice versa, to achieve the same overall efficiency at a lower cost. (Craig Industries, No. 0064.1 at p. 1) Additionally, interested parties suggested that DOE extend the idea of separate standards to subcomponents of envelopes and refrigeration systems. The Joint Utilities stated that a component performance approach would accurately capture efficiency measurements associated with the components, and that energy savings associated with targeted components would apply to different configurations of whole walk-ins and possibly even to repairs and retrofits. (Joint Utilities, No. 0061.1 at p. 4) The Joint Utilities further added that DOE should consider component performance standards for major walk-in components that could be enforced at the level of the manufacturer's catalog and could be labeled for easy inspection. (Joint Utilities, No. 0061.1 at p. 12) Hill Phoenix also recommended that large construction-based envelopes ( i.e., those constructed in a manner similar to a building) be regulated at the component level, asserting that these envelopes may need many different options and design flexibility, without which a whole-envelope calculation would likely limit the accuracy of any estimate of a walk-in's total energy use. (Hill Phoenix, No. 0066.1 at p. 1) As stated previously, Manitowoc agreed that it would not be practical to regulate the energy used by the entire walk-in assembly because walk-ins are highly customized. (Manitowoc, No. 0056.1 at p. 1) Manitowoc also remarked that performance metrics could be developed for sub-classes of the components of an envelope, and the component manufacturers should be responsible for their own components. (Manitowoc, Public Meeting Transcript, No. 0045 at p. 46) Other stakeholders discussed specific sub-components of the envelope or the refrigeration system that could be regulated. Kysor mentioned panels and doors as envelope components that should be considered separately and stated that because these components are often manufactured by separate parties, the manufacturer of each component should be responsible for the performance of that component. (Kysor, Public Meeting Transcript, No. 0045 at p. 41) The Northwest Energy Efficiency Alliance (NEEA) and Northwest Power Conservation Council (NPCC) recommended that DOE develop efficiency performance standards for display and solid doors separately so that an envelope manufacturer could certify that the envelope meets specified standards. (NEEA and NPCC, No. 0059.1 at p. 2) Likewise, with regard to the refrigeration system, NEAA and NPCC recommended that DOE regulate the efficiency of the cooling system components separately, an example of which would be setting a performance requirement for the specific efficiency of unit coolers based on control algorithms. (NEAA and NPCC, No. 0059.1 at pp. 2 and 7) The Joint Utilities also stated that a refrigeration system requirement should not be based on a single metric and added that the indoor unit ( i.e., unit cooler) could have a minimum efficiency requirement regardless of other components of the refrigeration system. (Joint Utilities, No. 0061.1 at p. 4 and Public Meeting Transcript, No. 0045 at p. 64) Manitowoc, on the other hand, recommended that manufacturers have the option of rating the entire refrigeration system and that considering the condensing unit separately would not allow manufacturers to implement options that would improve the efficiency of a matched system. (Manitowoc, Public Meeting Transcript, No. 0045 at p. 38) Manitowoc further remarked that testing the refrigeration system as an integrated, single component and calculating the overall annual efficiency has the greatest potential for optimizing energy efficiency, but added that DOE should permit the individual components to be tested and the performance stated for the individual parts. (Manitowoc, Public Meeting Transcript, No. 0045 at p. 59) After carefully considering the comments described above, DOE proposes an approach for the envelope that would set separate standards for panels, display doors, and non-display doors for the reasons set forth below. Different manufacturers typically produce panels and doors (both display and non-display types) for use in walk-in applications. In particular, display doors are commonly manufactured separately because their unique construction and materials require specialized manufacturing methods. Additionally, the modular nature of a walk-in envelope means that it is constructed of relatively standardized components that can be assembled in a virtually infinite number of configurations that may affect the overall consumption of a given walk-in unit. By regulating the performance of those standardized components, manufacturers will be able to choose compliant components that should help ensure that whatever walk-in configuration is built satisfies the minimal level of energy consumption and efficiency that DOE may prescribe. Because of the large number of possible combinations of panels and doors that could make up an envelope, the burdens presented by a system-based approach for the entire walk-in unit would also likely be significantly greater than the burdens of the proposed approach because each walk-in envelope configuration would need to be separately certified as compliant. Alternatively, if DOE were to establish a set envelope of specified dimensions for a manufacturer to build and then to certify as compliant, the efficiency or energy usage measurement from that envelope would not only be more costly to obtain, but it would also not necessarily reflect the actual energy usage or efficiency of a given walk-in that is installed in the field. DOE also notes that requiring an overall envelope performance standard would be likely to present significant enforcement burdens, as it would likely require DOE to test several fully constructed envelopes in order to ascertain the energy efficiency performance of a given envelope. DOE tentatively believes that such an approach, at this time, would be unduly burdensome. DOE is not, however, proposing to set standards for the constituent components of refrigeration systems separately. To ensure that manufacturers have sufficient flexibility to improve the energy efficiency performance of their systems, DOE proposes to set a performance standard for the overall refrigeration system and to regulate that system as a single component. This approach would help ensure that the final refrigeration system assembled by the manufacturer would meet a given level of efficiency and would account for the interactive effects of the numerous components comprising the overall system. For example, some refrigeration systems implement complex control strategies, the benefits of which could not be adequately demonstrated if the condensing unit and unit cooler were considered separately for purposes of setting standards. In summary, DOE proposes to set specific component standards for the panels, display doors, and non-display doors of a walk-in, and a single standard to assess the overall performance of the refrigeration system. DOE acknowledges that, by not establishing a standard for the energy use of the entire walk-in, manufacturers cannot meet the standard by pairing a more-efficient envelope with a less-efficient refrigeration system, and vice versa. Also, DOE would not account for the energy use of some components, such as the electricity use of overhead lighting or heat load due to the infiltration of warm air into the walk-in, and would not consider design options whose efficacy depends on the interaction between the different covered components. Including these factors as part of the current rulemaking would likely introduce significant complications with respect to compliance and enforcement while yielding a comparatively small benefit in energy savings. DOE believes, however, that the proposed approach would help ensure that the walk-in components used by manufacturers satisfy some minimal level of energy efficiency and reduce the overall certification and enforcement burden on manufacturers. DOE may reconsider this issue in the future, particularly if accurate computer modeling, such as through an alternative efficiency determination method, becomes possible with respect to predicting the energy usage and efficiency of fully constructed walk-in units. DOE continues to invite comments on the approach presented in this NOPR. B. Test Procedures and Metrics While Congress had initially prescribed certain performance standards and test procedures concerning walk-ins as part of the EISA 2007 amendments, Congress also instructed DOE to develop specific test procedures to cover walk-in equipment. DOE subsequently established a test procedure for walk-ins. See 76 FR 21580 (April 15, 2011). See also 76 FR 33631 (June 9, 2011) (final technical corrections). The test procedure lays out an approach that bases compliance on the ability of component manufacturers to produce components that meet the required standards. This approach is also consistent with the framework established by Congress, which set specific energy efficiency performance requirements on a component-level basis. (42 U.S.C. 6313(f)) The approach is discussed more fully below. 1. Panels In the final test procedure rule for walk-ins, DOE defines “panel” as a construction component, excluding doors, used to construct the envelope of the walk-in ( i.e., elements that separate the interior refrigerated environment of the walk-in from the exterior). 76 FR 33631 (June 9, 2011). The rule explains that panel manufacturers would test their panels to obtain a thermal transmittance metric—known as U-factor, measured in Btu/h-ft 2 -°F—and identifies three types of panels: display panels, floor panels, and non-floor panels. A display panel is defined as a panel that is entirely or partially comprised of glass, a transparent material, or both, and is used for display purposes. Id. It is considered equivalent to a window and the U-factor is determined by NFRC 100-2010-E0A1, “Procedure for Determining Fenestration Product U-factors.” 76 FR at 33639. Floor panels are used for walk-in floors, whereas non-floor panels are used for walls and ceilings. The U-factor for floor and non-floor panels accounts for any structural members internal to the panel and the long-term thermal aging of foam. This value is determined by a three-step process. First, both floor and non-floor panels must be tested using ASTM C1363-10, “Standard Test Method for Thermal Performance of Building Materials and Envelope Assemblies by Means of a Hot Box Apparatus.” The panel's core and edge regions must be used during testing. Second, the panel's core U-factor must be adjusted with a degradation factor to account for foam aging. The degradation factor is determined by EN 13165:2009-02, “Thermal Insulation Products for Buildings—Factory Made Rigid Polyurethane Foam (PUR) Products—Specification,” or EN 13164:2009-02, “Thermal Insulation Products for Buildings—Factory Made Products of Extruded Polystyrene Foam (XPS)—Specification,” as applicable. Third, the edge and modified core U-factors are then combined to produce the panel's overall U-factor. All industry protocols were incorporated by reference most recently in the test procedure final rule correction. 76 FR 33631. 2. Doors The walk-in test procedure final rule addressed two door types: display and non-display doors. Within the general context of walk-ins, a door consists of the door panel, glass, framing materials, door plug, mullion, and any other elements that form the door or part of its connection to the wall. DOE defines display doors as doors designed for product movement, display, or both, rather than the passage of persons; a non-display door is interpreted to mean any type of door that is not captured by the definition of a display door. 76 FR at 33631. The test metric for doors is in terms of energy use, measured in kilowatt-hours per day (kWh/day). The energy use accounts for thermal transmittance through the door and the electricity use of any electrical components associated with the door. The thermal transmittance is measured by NFRC 100-2010-E0A1, and is converted to energy consumption via conduction losses using an assumed efficiency of the refrigeration system in accordance with the test procedure. See 76 FR at 33636-33637. The electrical energy consumption of the door is calculated by summing each electrical device's individual consumption and accounts for all device controls by applying a “percent time off” value to the appropriate device's energy consumption. For any device that is located on the internal face of the door or inside the door, 75 percent of its power is assumed to contribute to an additional heat load on the compressor. Finally, the total energy consumption of the door is found by combining the conduction load, electrical load, and additional compressor load. 3. Refrigeration The test procedure incorporates an industry test procedure applied to walk-in refrigeration systems: AHRI 1250 (I-P)-2009, “2009 Standard for Performance Rating of Walk-In Coolers and Freezers” (“AHRI 1250-2009”). 76 FR at 33631. This procedure applies to unit coolers and condensing units sold together as a matched system, unit coolers and condensing units sold separately, and unit coolers connected to compressor racks or multiplex condensing systems. It also describes methods for measuring the refrigeration capacity, on-cycle electrical energy consumption, off-cycle fan energy, and defrost energy. Standard test conditions, which are different for indoor and outdoor locations and for coolers and freezers, are also specified. The test procedure includes a calculation methodology to compute an annual walk-in energy factor (AWEF), which is the ratio of heat removed from the envelope to the total energy input of the refrigeration system over a year. AWEF is measured in Btu/W-h and measures the efficiency of a refrigeration system. DOE established a metric based on efficiency, rather than energy use, for describing refrigeration system performance, because a refrigeration system's energy use would be expected to increase based on the size of the walk-in and on the heat load that the walk-in produces. An efficiency-based metric would account for this relationship and would simplify the comparison of refrigeration systems to each other. Therefore, DOE proposes to use an energy conservation standard for refrigeration systems that would be presented in terms of AWEF. C. Prescriptive Versus Performance Standards EPCA established standards for certain WICF components, while also directing the Secretary to establish “performance-based standards,” which are the subject of this rulemaking. (42 U.S.C. 6313(f)(4)(A)) Some interested parties suggested that DOE establish prescriptive standards for certain components in addition to the performance-based standards that DOE is proposing. NEEA and NPCC stated that DOE should establish a prescriptive ( i.e., design) standard for electronically commutated motors. (NEEA and NPCC, No. 0059.1 at p. 7) The Joint Utilities recommended that DOE consider the precedent set by EPCA, as the EPCA provisions include both prescriptive and performance standards, and further recommended that DOE include additional prescriptive requirements for various components of a walk-in as necessary to maximize energy savings, and performance standards for the unit cooler. (Joint Utilities, No. 0061.1 at p. 11) The Joint Utilities also recommended that DOE base new standards using those design requirements already prescribed by Title 20 of California's Code as the baseline when developing a performance standard. (Joint Utilities, No. 0061.1 at p. 13) SCE also referred to the prescriptive standards in Title 20, and suggested that because EPCA already established prescriptive measures, there will be limited additional benefit from performance measures. SCE further recommended that a standard for infiltration should be implemented through ASHRAE 90.1 (SCE, Public Meeting Transcript, No. 0045 at p. 63) The Joint Utilities recommended other specific prescriptive requirements that DOE should implement, including a minimum solar reflective index for the roof of a walk-in located outdoors, adjustable variable speed fan control for unit coolers, and floating head pressure control (a control that allows the pressure of the refrigerant at the compressor exit point to reach an optimal level). (Joint Utilities, No. 0061.1 at pp. 5 and 12; Public Meeting Transcript, No. 0045 at p. 29) The Joint Utilities also asked DOE to examine how controls could be specified in a performance standard. (Joint Utilities, No. 0061.1 at p. 13) DOE notes that EPCA requires the promulgation of “performance-based standards” for walk-ins. That phrase indicates that DOE must set standards based on energy-related performance. See 42 U.S.C. 6313(f)(4). Accordingly, the design requirements suggested by commenters would be inconsistent with this requirement. D. Certification, Compliance, and Enforcement Walk-ins consist primarily of panels, display and non-display doors, and a refrigeration system, as described in section III.A. A number of arrangements exist for manufacturing walk-ins. One company may manufacture the panels, purchase the display and/or non-display doors and refrigeration system, assemble the walk-in at the factory, and ship the walk-in to a consumer. Alternatively, the same company may ship the walk-in without a refrigeration system, which is then purchased separately by the consumer and installed on the walk-in. A contractor may purchase all the components from the component manufacturers and assemble the walk-in on-site. Other scenarios may also exist. Given the wide variety of scenarios under which a walk-in is manufactured, it is important to identify an entity or entities responsible for complying with standards and certifying compliance to DOE, and against whom a possible enforcement action could be taken. During the preliminary analysis public meeting, many interested parties expressed concern about compliance responsibilities and whether those burdens would fall on the envelope and refrigeration manufacturers individually, the installer, or another party. Additionally, the Joint Advocates submitted a comment urging DOE to ensure that the separate system components would be compliant with the energy conservation standards, and stating that each manufacturer should be held accountable for their products ( e.g., door manufacturers are responsible for compliance with door standards). (Joint Advocates, No. 0070.1 at pp. 2-3) Craig Industries recommended that the definition of a manufacturer be expanded to include the installer of the unit, because the installer has the ability to ensure that the installed unit meets the energy conservation standards. (Craig Industries, No. 0071.1 at p. 1). Comments on this issue were summarized in the 2011 Certification, Compliance, and Enforcement for Consumer Products and Commercial and Industrial Equipment (referred to hereafter as the CCE final rule), and are not repeated here. 76 FR 12422, 12442-12446 (March 7, 2011). DOE notes that within the context of today's proposal, the agency is contemplating an approach that would place the primary certification and compliance burden on those entities that manufacture particular key components of a walk-in—that is, the panels, doors, and refrigeration system. This approach dovetails with that outlined in the recent test procedure final rule. The various requirements that manufacturers would need to follow are detailed in the 2011 final rule noted above regarding manufacturer certification, compliance, and enforcement-related responsibilities. 76 FR 12422. For further details, see 76 FR at 12491. E. Technological Feasibility 1. General In each standards rulemaking, DOE conducts a screening analysis, which it bases on information gathered on all current technology options and prototype designs that could improve the efficiency of the products or equipment that are the subject of the rulemaking. As the first step in such analysis, DOE develops a list of design 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 commercial products or in working prototypes to be technologically feasible. 10 CFR 430, subpart C, appendix A, section 4(a)(4)(i) Although DOE considers technologies that are proprietary, it will not consider efficiency levels that can only be reached through the use of proprietary technologies ( i.e., a unique pathway), as it could allow a single manufacturer to monopolize the market. Once DOE has determined that particular design options are technologically feasible, it generally evaluates each of these design options 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. 10 CFR part 430, subpart C, appendix A, section 4(a)(4)(ii)-(iv) Section IV.B of this notice discusses the results of the screening analyses for walk-in coolers and freezers. Specifically, it presents the designs DOE considered, those it screened out, and those that are the basis for the TSLs in this rulemaking. For further details on the screening analysis for this rulemaking, see chapter 4 of the TSD. 2. Maximum Technologically Feasible Levels When DOE proposes to adopt a new or amended or new energy conservation standard for a type or class of covered equipment such as walk-ins, it determines the maximum improvement in energy efficiency that is technologically feasible for such equipment. Accordingly, DOE determined the maximum technologically feasible (max-tech) improvements in energy efficiency for walk-ins by applying those design parameters that passed the screening analysis to the engineering analysis that DOE prepared as part of the preliminary analysis. In a comment on the max-tech levels in the preliminary analysis, AHRI commented that max-tech efficiency levels would be achieved only by a few units, and it requested that DOE demonstrate that max-tech levels can be achieved by commonly used products. (AHRI, No. 0055.1 at p. 3) As indicated previously, whether efficiency levels exist or can be achieved in commonly used products does not determine whether they are max-tech levels. DOE considers technologies to be technologically feasible if they are incorporated in any commercially available equipment or working prototypes. A maximum technologically feasible level results from the combination of design options that result in the highest efficiency level for an equipment class, with such design options consisting of technologies already incorporated in commercial products or working prototypes. DOE notes that it re-evaluated the efficiency levels, including the max-tech levels, when it updated its results for this NOPR. See chapter 5 of the NOPR TSD for the results of the analysis. For panels, non-display doors, display doors, and refrigeration systems, the max-tech efficiency levels DOE has identified represent products with the most efficient design options available on the market, or previously offered for sale, in the given equipment class. No products at higher efficiencies are available or have been in the past, and DOE is not aware of any working prototype designs that would allow manufacturers to achieve higher efficiencies. Table III-2, Table III-3, Table III-4, and Table III-5 list the max-tech levels for panels, display doors, non-display doors, and refrigeration systems, respectively. (See section IV.A.3 for a description of the equipment classes.) For structural cooler and freezer panels, the max-tech level is represented by a single value for U-factor. For all other TSLs (and for all floor panel levels including the max-tech level), the level is represented by a polynomial equation expressing the U-factor in terms of certain panel dimensions, but the max tech level does not result in a polynomial equation because the U-factor does not vary with the size of the panel. (See section V.A.2 for a list of equations for all TSLs.) At max-tech, panels are designed without structural members, making the panel uniformly comprised of hybrid insulation. See section IV.C.5 and chapter 5 of the TSD for the list of technologies included in max-tech equipment. EP11SE13.002 Table III-3—Max-Tech Levels for Display Doors Equipment class Equations for maximum energy consumption (kWh/day) * Display Door, Medium Temperature 0.0080 × A dd + 0.29 Display Door, Low Temperature 0.11 × A dd + 0.32 * A dd represents the surface area of the display door. Table III-4—Max-Tech Levels for Non-Display Doors Equipment class Equations for maximum energy consumption (kWh/day) * Passage Door, Medium Temperature 0.00093 × A nd + 0.0083 Passage Door, Low Temperature 0.13 × A nd + 3.9 Freight Door, Medium Temperature 0.00092 × A nd + 0.13 Freight Door, Low Temperature 0.094 × A nd + 5.2 * A nd represents the surface area of the non-display door. Table III-5—Max-Tech Levels for Refrigeration Systems Equipment class Equations for minimum AWEF (Btu/W-h) * Dedicated Condensing, Medium Temperature, Indoor System, < 9,000 Btu/h Capacity 2.63 × 10 −4 × Q + 4.53 Dedicated Condensing, Medium Temperature, Indoor System, ≥ 9,000 Btu/h Capacity 6.90 Dedicated Condensing, Medium Temperature, Outdoor System, < 9,000 Btu/h Capacity 9.23 × 10 −4 × Q + 3.90 Dedicated Condensing, Medium Temperature, Outdoor System, ≥ 9,000 Btu/h Capacity 12.21 Dedicated Condensing, Low Temperature, Indoor System, < 9,000 Btu/h Capacity 1.93 × 10 −4 × Q + 1.93 Dedicated Condensing, Low Temperature, Indoor System, ≥ 9,000 Btu/h Capacity 3.67 Dedicated Condensing, Low Temperature, Outdoor System, < 9,000 Btu/h Capacity 4.53 × 10 −4 × Q + 2.17 Dedicated Condensing, Low Temperature, Outdoor System, ≥ 9,000 Btu/h Capacity 6.25 Multiplex Condensing, Medium Temperature 10.82 Multiplex Condensing, Low Temperature 5.91 * Q represents the system gross capacity as calculated in AHRI 1250. F. Energy Savings 1. Determination of Savings For each TSL, DOE projected energy savings from the products that are the subject of this rulemaking purchased in the 30-year period that begins in the year of compliance with new standards (2017-2046). The savings are measured over the entire lifetime of products purchased in the 30-year period. 13 DOE quantified the energy savings attributable to each TSL as the difference in energy consumption between each standards case and the base case. The base case represents a projection of energy consumption in the absence of amended mandatory efficiency standards and considers market forces and policies that affect demand for more efficient products. 13 In the past DOE presented energy savings results for only the 30-year period that begins in the year of compliance. In the calculation of economic impacts, however, DOE considered operating cost savings measured over the entire lifetime of products purchased in the 30-year period. DOE has chosen to modify its presentation of national energy savings to be consistent with the approach used for its national economic analysis. DOE used its national impact analysis (NIA) spreadsheet model to estimate energy savings from amended standards for the products that are the subject of this rulemaking. The NIA spreadsheet model (described in section IV.G of this notice and chapter 10 of the TSD) calculates energy savings in site energy, which is the energy directly consumed by products at the locations where they are used. For electricity, DOE reports national energy savings in terms of the savings in the energy that is used to generate and transmit the site electricity. To calculate this quantity, DOE derives annual conversion factors from the model used to prepare the Energy Information Administration's (EIA) Annual Energy Outlook ( AEO ). DOE has begun to also estimate full-fuel-cycle (FFC) energy savings. 76 FR 51282 (Aug. 18, 2011), as amended at 77 FR 49701 (August 17, 2012). The FFC metric includes the energy consumed in extracting, processing, and transporting primary fuels (i.e., coal, natural gas, petroleum fuels), and thus presents a more complete picture of the impacts of energy efficiency standards. DOE's approach is based on calculation of an FFC multiplier for each of the energy types used by covered products. For more information on FFC energy savings, see sections IV.G.3 and IV.L and appendix 10G of the TSD. 2. Significance of Savings DOE may not adopt a standard that would not result in significant additional energy savings. While the term “significant” is not defined in the Act, the U.S. Circuit Court of Appeals for the District of Columbia in Natural Resources Defense Council v. Herrington, 768 F.2d 1355, 1373 (DC Cir. 1985), indicated that Congress intended significant energy savings to be savings that were not “genuinely trivial.” The estimated energy savings in the analysis period for the trial standard levels considered in this rulemaking range from 4.28 to 6.37 quadrillion Btu (quads), an amount DOE considers significant. G. Economic Justification 1. Specific Criteria As discussed in section II.A, EPCA provides seven factors to be evaluated in determining whether a potential energy conservation standard is economically justified. The following sections generally discuss how DOE addresses each of those seven factors in this rulemaking. For further details and the results of DOE's analyses pertaining to economic justification, see sections IV and V of today's notice. a. Economic Impact on Manufacturers and Consumers In determining the impacts of an amended standard on manufacturers, DOE first uses an annual cash-flow approach to determine the quantitative impacts. This step includes both a short-term assessment—based on the cost and capital requirements during the period between when a regulation is issued and when entities must comply with the regulation—and a long-term assessment over a 30-year period. The industry-wide impacts analyzed include industry net present value (INPV), which values the industry on the basis of 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 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. Finally, DOE takes into account cumulative impacts of various DOE regulations and other regulatory requirements on manufacturers. For individual consumers, measures of economic impact include the changes in LCC and the PBP associated with new or amended standards. The LCC, which is also separately specified as one of the seven factors to be considered in determining the economic justification for a new or amended standard, is discussed in the following section. For consumers in the aggregate, DOE also calculates the net present value from a national perspective of the economic impacts on consumers over the forecast period used in a particular rulemaking. For the results of DOE's analyses related to the economic impact on consumers, see section V.B.1 of this notice and chapters 8 and 11 of the TSD. For the results of DOE's analyses related to the economic impact on manufacturers, see section V.B.2 of this notice and chapter 12 of the TSD. b. Life-Cycle Costs The LCC is the sum of the purchase price of equipment (including the cost of its installation) and the operating expense (including energy and maintenance and repair expenditures) discounted over the lifetime of the equipment. The LCC savings for the considered efficiency levels are calculated relative to a base case that reflects likely trends in the absence of new standards. The LCC analysis requires a variety of inputs, such as equipment prices, equipment energy consumption, energy prices, maintenance and repair costs, equipment lifetime, and consumer discount rates. DOE assumes in its analysis that consumers purchase the equipment in the year in which compliance with the new standard is required. To account for uncertainty and variability in specific inputs, such as equipment 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 receive LCC savings or experience an LCC increase. In addition to identifying ranges of impacts, DOE evaluates the LCC impacts of potential standards on identifiable subgroups of consumers that may be disproportionately affected by a new national standard. For the results of DOE's analyses related to the life-cycle costs of equipment, see section V.B.1.a of this notice and chapter 8 of the TSD. 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. DOE uses the NIA spreadsheet results in its consideration of total projected savings. For the results of DOE's analyses related to the potential energy savings, see section V.B.3.a of this notice and chapter 10 of the TSD. d. Lessening of Utility or Performance of Products In establishing classes of equipment, 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 equipment under consideration. None of the TSLs presented in today's NOPR would reduce the utility or performance of the equipment considered in the rulemaking. During the screening analysis, DOE eliminated from consideration any technology that would adversely impact consumer utility. For the results of DOE's analyses related to the potential impact of new standards on equipment utility and performance, see section IV.B of this notice and chapter 4 of the TSD. e. Impact of Any Lessening of Competition EPCA directs DOE to consider the impact of any lessening of competition, as determined in writing by the Attorney General, that is likely to result from the imposition of a standard. It also directs the Attorney General to determine the impact, if any, of any lessening of competition likely to result from a proposed standard and to transmit such determination to the Secretary within 60 days of the publication of a proposed rule, together with an analysis of the nature and extent of the impact. DOE will transmit a copy of today's proposed rule to the Attorney General with a request that the Department of Justice (DOJ) provide its determination on this issue. DOE will address the Attorney General's determination in the final rule. f. Need of the Nation To Conserve Energy The energy savings from the proposed standards are likely to provide improvements to the security and reliability of the nation's energy system. Reductions in the demand for electricity also may 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. The utility impact analysis is contained in chapter 14 of the TSD. The proposed standards also are likely to result in environmental benefits in the form of reduced emissions of air pollutants and greenhouse gases associated with energy production. DOE reports the emissions impacts from today's standards, and from each TSL it considered, in section V.B.6 of this notice and chapter 15 of the TSD. DOE also reports estimates of the economic value of emissions reductions resulting from the considered TSLs. g. Other Factors EPCA allows the Secretary, in determining whether a standard is economically justified, to consider any other factors that the Secretary deems to be relevant. For the results of DOE's analyses related to other factors, see section V.B.7 of this notice. 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 equipment that meets the standard level 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 which can be used to calculate the payback period for consumers of products or equipment that meet the proposed standards. These analyses include, but are not limited to, the three-year payback period contemplated under the rebuttable presumption test. However, DOE routinely conducts a full 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 IV.F.12 of this NOPR and chapter 8 of the TSD. IV. Methodology and Discussion A. Market and Technology Assessment When beginning an energy conservation standards rulemaking, DOE develops information that provides an overall picture of the market for the products concerned, including the purpose of the products, the industry structure, and market characteristics. This activity includes both quantitative and qualitative assessments based primarily on publicly-available information ( e.g., manufacturer specification sheets and industry publications) and data submitted by manufacturers, trade associations, and other stakeholders. The subjects addressed in the market and technology assessment for this rulemaking include: (1) Quantities and types of products sold and offered for sale; (2) retail market trends; (3) products covered by the rulemaking; (4) equipment classes; (5) manufacturers; (6) regulatory requirements and non-regulatory programs (such as rebate programs and tax credits); and (7) technologies that could improve the energy efficiency of the products under examination. DOE researched manufacturers of panels, display doors, non-display doors, and refrigeration equipment. DOE also identified and characterized small business manufacturers of these components. See chapter 3 of the TSD for further discussion of the market and technology assessment. In the preliminary TSD, DOE presented market performance data. Typically, DOE's analysis of market data uses catalog and performance data to determine the number of products on the market at varying efficiency levels. However, WICF systems and equipment have not previously been rated for efficiency by manufacturers, nor has an efficiency metric been established for this equipment. Based on the available data, DOE presented a sample of equipment at various sizes in the preliminary TSD and estimated the energy consumption of the equipment using the preliminary engineering spreadsheet. For refrigeration equipment in particular, DOE found that, as expected, the relationship between capacity and energy consumption was roughly linear. In a comment on the market performance data DOE presented, Manitowoc expressed concern that DOE's use of linear trends to establish the relationship between energy consumption and net capacity will lead to an overestimation of the potential benefits of refrigeration system standards. (Manitowoc, No. 0056.1 at p. 2) DOE presented the market performance data to illustrate its understanding of the market. In response to Manitowoc's concern, DOE notes that the benefits of the rule are not derived from the estimates of market performance data but are determined from the LCC analysis and NIA. DOE seeks market performance data to help inform DOE's analysis. 1. Definitions Related to Walk-In Coolers and Freezers DOE proposes to amend the definition of display door and to adopt definitions for passage and freight door in order to clarify the boundaries separating these equipment classes. The display door definition was modified to permit transparent doors used for the passage of people to be categorized as display doors rather than as non-display passage doors. DOE is proposing to define transparent passage doors as a type of display door because transparent passage doors are generally constructed in the same manner and with the same materials as transparent reach-in doors. DOE proposes to include definitions for non-display passage and freight doors in order to clarify the distinction between the two types of doors. Non-display passage doors are typically smaller than freight doors and are designed for passage of people and small machines, whereas non-display freight doors are larger than passage doors and designed for the passage of large machines like forklifts. a. Display Doors As described in section III.B of this notice, DOE established a definition for display door in the test procedure. 76 FR 33631 (June 9, 2011). DOE is now proposing to amend this definition to include all doors that are comprised of 75 percent or more glass or other transparent material. This amendment is intended to classify passage doors that are mostly comprised of glass as display doors because the utility and construction of glass passage doors more closely resembles that of a display door. DOE proposes to define a display door as one that “(1) is designed for product display; or (2) has 75 percent or more of its surface area comprised of glass or another transparent material.” DOE requests comment on this proposed definition. b. Freight Doors DOE is proposing to separate non-display doors into two equipment classes, passage doors and freight doors. DOE proposes to define freight doors in order to clarify the distinction between these two equipment classes and remove any ambiguity about which energy standards apply to a given door. The two types of doors are constructed differently—for example, freight doors tend to have more structural support because they are bulkier—and warrant different standards for each type. DOE is proposing a definition of freight doors that would account for the fact that these doors are typically larger than passage doors and are used to allow large machines, like forklifts, into walk-ins. Specifically, DOE proposes to define a freight door to mean “a door that is not a display door and is equal to or larger than 4 feet wide and 8 feet tall.” DOE based these proposed dimensions on the standard size of a walk-in panel, which is 4 feet wide by 8 feet tall. In DOE's estimation doors used for the passage of people small machines would be less than the standard size of a walk-in panel and therefore all other doors would be freight doors. DOE requests comment on its proposed definition. c. Passage Doors DOE proposes a definition of passage doors to differentiate passage doors from freight doors and display doors. Passage doors are mostly intended for the passage of people and small machines like hand carts and not for product display. DOE proposes to define this term to mean “a door that is not a freight or display door.” DOE requests comment on this proposed definition. 2. Equipment Included in This Rulemaking a. Panels and Doors As mentioned in section III.B.1, DOE identified three types of panels used in the walk-in industry: Display panels, floor panels, and non-floor panels. Based on its research, DOE determined that display panels, typically found in beer caves (walk-ins used for the display and storage of beer or other alcoholic beverages often found in a supermarket) make up a small percentage of all panels currently present in the market. Therefore, because of the extremely limited energy savings potential currently projected to result from amending the requirements that these panels must meet, DOE is not proposing standards for walk-in display panels in this NOPR. Display panels, however, must still follow all applicable design standards already prescribed by EPCA, as discussed in section II.B.1 of this notice. DOE is also not proposing to require the installation of walk-in cooler floor panels. DOE did not consider including walk-in cooler floor panels in its analysis because of their complex nature. Through manufacturer interviews and market research, DOE determined that, unlike walk-in freezers, the majority of walk-in coolers are made with concrete floors and do not use insulated floor panels. The entity that installs the cooler floor is considered the floor's manufacturer and is responsible for testing and complying with a walk-in cooler floor standard. If DOE were to require that all walk-in coolers to be equipped with floor panels, the onus of complying with this requirement would likely fall on entities that do not specialize in constructing walk-in coolers, and the accompanying burden in using these components and certifying compliance with the appropriate standards would likely be costly and difficult for that entity to fulfill. Therefore, at this time, it is DOE's view that requiring the use of floor panels—along with the accompanying compliance costs—would present an undue burden to those entities that would be responsible for meeting these requirements. For these reasons, DOE is not proposing to require walk-in coolers to have floor panels, nor is DOE proposing energy efficiency standards for cooler floor panels. (DOE is, however, proposing energy efficiency standards for walk-in freezer floor panels and notes that EPCA requires floor insulation of at least R-28 for walk-in freezers. (42 U.S.C. 6313(f)(1)(D)).) DOE also identified two types of doors in the walk-in market, display doors and non-display doors, which are discussed in section III.B.2 of this NOPR. All types of doors will be subject to the performance standards proposed in this rulemaking. b. Refrigeration System DOE defines the refrigeration system of a walk-in as the mechanism (including all controls and other components integral to the system's operations) used to create the refrigerated environment in the interior of the walk-in cooler and freezer, consisting of either (1) a packaged system where the unit cooler and condensing unit are integrated into a single piece of equipment, (2) a split system with separate unit cooler and condensing unit sections, or (3) a unit cooler that is connected to a multiplex condensing system. 76 FR at 33631. DOE based its preliminary results used in today's proposal on an analysis of storage coolers and freezers. DOE did not analyze blast freezer walk-ins, which are designed to quickly freeze food and then store it at a specified holding temperature. American Panel commented that blast freezer performance differs from storage freezer performance due to the large product loads experienced with this specialized equipment. (American Panel, No. 0048.1 at p. 4) Heatcraft added that blast freezer refrigeration systems' energy consumption would be higher than that of storage freezers and that they require wider fin spacing because of a higher rate of frost accumulation. (Heatcraft, No. 0058.1 at p. 1) DOE agrees with American Panel and Heatcraft that blast freezer refrigeration systems have different energy characteristics from storage freezers, but questions whether they would necessarily have a lower rated efficiency. DOE is not proposing to include blast freezers in this rulemaking analysis because they make up a small percentage of walk-ins currently present in the market. DOE requests comment on whether blast freezer refrigeration systems would have difficulty complying with DOE's refrigeration efficiency standards and, if so, to direct DOE to (and supply it with) any test procedure data supporting this conclusion. DOE proposes to apply the same standards to blast freezer refrigeration systems as to storage freezer refrigeration systems, unless DOE finds that blast freezer refrigeration systems would have difficulty complying with DOE's standards. Otherwise, DOE will consider excluding blast freezers from coverage under this rulemaking, although they would still have to comply with the already statutorily-prescribed standards in EPCA. Regarding the particular refrigerant to be used in the analysis, DOE analyzed refrigeration equipment using R404A, a hydrofluorocarbon (HFC) refrigerant blend, in the preliminary analysis. Heatcraft supported DOE's approach to use only HFC refrigerants in the analysis, but also suggested that DOE consider lower global warming potential (GWP) refrigerants—such as R134a, R407A, or R407C—in the analyses as well because of shifts in the marketplace towards these products, even though these refrigerants may have lower efficiencies. (Heatcraft, No. 0069.1 at p. 3) DOE used R404A in its analysis for this NOPR because it is widely used currently in the walk-in industry. DOE appreciates Heatcraft's suggestion to analyze alternative refrigerants, especially those with a lower GWPs given the interest by many manufacturers to use these alternatives, and requests comment on the extent of the use or likely phase-in of lower GWP refrigerants and asks manufacturers to submit data related to the ability of the equipment (either existing or redesigned) using these refrigerants to meet the proposed standard, as well as the cost of such equipment. 3. Equipment Classes a. Panels and Doors In the preliminary analysis, DOE proposed to divide the envelope into two separate equipment classes: display and non-display walk-ins (that is, walk-ins with and without glass). Display walk-ins are walk-ins that have doors for display purposes, are typically made with glass, and are inherently less efficient than walk-ins without glass because glass is not as insulative as the insulation material used in non-display walk-ins (typically polyurethane or polystyrene). Interested parties commented on the need to separate display and non-display walk-ins into two different equipment classes. Nor-Lake and AHRI agreed with the equipment classes proposed by DOE, and AHRI commented that the equipment classes represent the most common walk-in configurations. (Nor-Lake, No. 0049.1 at p. 1; AHRI, No. 0055.1 at p. 2) Manitowoc stated that classification of envelopes into storage and display types is appropriate as it may allow for different performance levels for certain components. (Manitowoc, No. 0056.1 at p. 2) However, CrownTonka contended that it was unnecessary to have two equipment classes for display and non-display walk-ins and that separate classes for coolers and freezers are adequate. (CrownTonka, No. 0057.1 at p. 1) ASAP and SCE opined that one equipment class is sufficient and that the difference between non-display and display doors could be accounted for through a weighted average of the opaque and glass surface areas. (ASAP, Public Meeting Transcript, No. 0045 at p. 70; SCE, Public Meeting Transcript, No. 0045 at p. 79) However, NEAA, NPCC and Manitowoc countered that there should not be a single metric for both display and non-display doors because it would not account for the unique utility offered by display walk-ins ( i.e., permitting the display of stored items). (NEAA and NPCC, Public Meeting Transcript, No. 0045 at p. 76; Manitowoc, Public Meeting Transcript, No. 0045 at p. 78) NEAA and NPCC stated that, if DOE were to separate display and non-display walk-ins into two different classes, DOE should carefully define the boundary between the two classes. (NEAA and NPCC, Public Meeting Transcript, No. 0045 at p. 77) NEAA and NPCC also suggested that, as an alternative to having one equipment class for display and non-display walk-ins with a single performance metric, DOE should move to component level-based classes with separate performance metrics. (NEAA and NPCC, Public Meeting Transcript, No. 0045 at p. 76) Interested parties also submitted comments about the names of the equipment classes. NEAA and NPCC stated that if DOE has two separate equipment classes for display and non-display walk-ins, DOE should carefully define the boundary between the two classes. (NEAA and NPCC, Public Meeting Transcript, No. 0045 at p. 77) Kysor stated that the class names DOE suggested were confusing and offered an alternative—“coolers with glass doors” instead of “display coolers”—to help clarify the difference between the two separate equipment classes. (Kysor, Public Meeting Transcript, No. 0045 at p. 78) In light of the component level standards described in section III.A, DOE proposes to create separate equipment classes for panels, display doors, and non-display doors. These different items comprise the main components of a walk-in envelope. DOE proposes separate classes for panels, display doors, and non-display doors because each component type has a different utility to the consumer and possesses different energy use characteristics. In the preliminary analysis, DOE also considered the possibility of creating separate classes for walk-in coolers and walk-in freezers because EPCA specifically divides walk-in equipment into coolers (above 32 °F) and freezers (at or below 32 °F), (42 U.S.C. 6311(20)), and prescribes unique design requirements for each. (42 U.S.C. 6313(f)(1)(C)-(D)(3)) DOE has continued to apply this approach in its analysis. Panels DOE has placed panels into two equipment classes: Freezer floor panels and non-floor panels (also called structural panels). DOE understands that freezer floor panels and structural panels serve two different utilities. Freezer floor panels, which are panels used to construct the floor of a walk-in, must often support the load of small machines like hand carts and pallet jacks on their horizontal faces. Non-floor panels or structural panels, which include panels used to construct the ceiling or wall of a walk-in, provide structure for the walk-in. Because of their different utilities, the two classes of panels are constructed differently from each other and use different amounts of framing material, which affects the panels' energy consumption. Structural panels are further divided into two more classes based on temperature— i.e., cooler versus freezer panels. Cooler structural panels are rated with their internal faces exposed to a temperature of 35 °F, as called for in the test procedure final rule. Freezer structural panels are used in walk-in freezers and rated with its internal face exposed to a temperature of −10 °F, as required by the test procedure final rule. 76 FR at 21606; 10 CFR 431.303. EPCA also requires walk-in freezer panels to have a higher R-value than walk-in cooler panels. These differences result in different amounts of insulating foam between these panel types and affect the panel's U-value. Doors DOE has distinguished between two different door types used in walk-in coolers and freezers: Display doors and non-display doors. DOE proposed separate classes for display doors and non-display doors to retain consistency with the dual approach laid out by EPCA for these walk-in components. (42 U.S.C. 6313(f)(1)(C) and (3)) Non-display doors and display doors also serve separate purposes in a walk-in. Display doors contain mainly glass in order to display products or objects located inside the walk-in. Non-display doors function as passage and freight doors and are mainly used to allow people and products to be moved into and out of the walk-in. Because of their different utilities, display and non-display doors are made up of different material. Display doors are made of glass or other transparent material, while non-display doors are made of highly insulative materials like polyurethane. The different materials found in display and non-display doors significantly affect their energy consumption. DOE divided display doors into two equipment classes based on temperature differences: cooler and freezer display doors. Cooler display doors and freezer display doors are exposed to different internal temperature conditions, which affect the total energy consumption of the doors. In the test procedure final rule, DOE established an internal rating temperature of 35 °F for walk-in cooler display doors and −10 °F for walk-in freezer display doors. 76 FR at 21606; 10 CFR Part 431, Subpart R, Appendix A, Section 5.3. DOE also separated non-display doors into two equipment classes, passage and freight doors. Passage doors are typically smaller doors and mostly used as a means of access for people and small machines, like hand carts. Freight doors typically are larger doors used to allow access for larger machines, like forklifts, into walk-ins. The different shape and size of passage and freight doors affects the energy consumption of the doors. Both passage and freight doors are also separated into cooler and freezer classes because, as explained for display doors, cooler and freezer doors are rated at different temperature conditions. A different rating temperature impacts the door's energy consumption. In the preliminary analysis, DOE did not consider outdoor envelopes as a separate equipment class. Walk-ins located outdoors have very similar features to walk-ins located indoors, and DOE could not identify any additional design options that improved the energy consumption only of outdoor walk-ins. The Joint Utilities, NEEA and NPCC, CrownTonka, Nor-Lake, and Hill Phoenix stated that DOE should differentiate equipment classes by their external environment. (Joint Utilities, No. 0061.1 at p. 5; NEEA and NPCC, No. 0059.1 at p. 6; CrownTonka, Public Meeting Transcript, No. 0045 at p. 81; Nor-Lake, No. 0049.1 at p. 2; Hill Phoenix, No. 0066.1 at p. 2) The Joint Utilities requested that DOE evaluate cost-effective insulation levels for outdoor walk-ins, and stated that there would be a loss in energy savings if DOE did not consider region-specific insulation levels. (Joint Utilities, Public Meeting Transcript, No. 0045 at pp. 80 and 82) Nor-Lake contested DOE's claim that walk-ins designed as outdoor units include no additional features that impact energy consumption, stating that the ambient temperature and product load will change the energy consumption for both the indoor and outdoor units. (Nor-Lake, No. 0049.1 at p.2) Hill Phoenix recommended a separate equipment class for outdoor walk-ins because outdoor walk-ins must have thicker panels to withstand environmental conditions. (Hill Phoenix, No. 0066.1 at p. 2) American Panel observed that a walk-in located outdoors has an added benefit in that no building space was constructed to house the walk-in, which is a significant energy savings not considered in the preliminary analysis. (American Panel, No. 0048.1 at p. 3) Some commenters described how DOE could include equipment classes that capture the external conditions. SCE suggested that DOE set a series of different conditions by the location of the wall such as an outdoor, indoor, or demising wall ( i.e., a dividing wall to separate spaces) between a cooler and a freezer space. (SCE, Public Meeting Transcript, No. 0045 at pp. 80 and 82-83) NEEA and NPCC recommended changing the equipment classes to indoor cooler, indoor freezer, outdoor cooler, and outdoor freezer. (NEEA and NPCC, No. 0059.1 at p. 6) Other interested parties agreed with DOE's assertion that it was unnecessary to consider outdoor walk-ins as a separate equipment class. Kysor explained that the envelope would be designed for whatever ambient conditions it may be subjected to, and that adding additional performance requirements would be unnecessary. (Kysor, Public Meeting Transcript, No. 0045 at p. 80) Manitowoc stated that there should not be any classification based on external environments as there are times when the envelope is exposed to both internal and external conditions. (Manitowoc, Public Meeting Transcript, No. 0045 at p. 82) DOE is not proposing to include any panel or door equipment class that accounts for the different external environmental conditions that a walk-in could experience in real world applications. DOE does not find outdoor and indoor walk-in envelope components to have distinct utilities. Components for outdoor walk-ins and indoor walk-ins are generally constructed with the same design and materials and serve the same purpose. In response to Nor-Lake's comment about DOE's assumption about additional features, DOE clarifies that while the difference in outdoor temperatures affects the real world energy consumption of the walk-in envelope, DOE was referring to design features, such as different types of insulation, which differ from the design options found on indoor walk-ins and improve the energy efficiency of the outdoor walk-in. As to Hill Phoenix's comment that a panel facing external conditions requires more insulation, DOE notes that panels with thicker insulation already surpass the baseline panel specifications, which would make it easier for these types of panels to meet the standards in today's proposal. Hill Phoenix also recommended that DOE divide envelopes into factory assembled step-in style walk-ins and larger construction-based walk-ins. (Hill Phoenix, No. 0066.1 at p. 1) Because it is not proposing standards for walk-in envelopes, but rather for the panels and doors that are components of the envelopes, DOE has not adopted Hill Phoenix's recommendation in today's proposal. DOE has, however, separated into different equipment classes the components typically found in factory-assembled walk-ins, such as passage doors and floor panels, and those components found in large construction-based walk-ins, such as freight doors. DOE believes this approach will achieve the objective of the Hill Phoenix recommendation, namely that the proposed standards reflect the different energy use characteristics of factory-assembled and construction-based walk-ins. Table IV-1 lists the equipment classes DOE proposes to create in this NOPR. In the table below, medium temperature refers to cooler equipment and low temperature refers to freezer equipment. The column entitled “Class” lists the codes that will be used to abbreviate each equipment class, and will be used throughout the NOPR. Table IV-1—Equipment Classes for Panels and Doors Product Temperature Class Structural Panel Medium SP.M Low SP.L Floor Panel Low FP.L Display Door Medium DD.M Low DD.L Passage Door Medium PD.M Low PD.L Freight Door Medium FD.M Low FD.L b. Refrigeration Systems In the preliminary analysis, DOE considered dividing walk-in refrigeration systems into six equipment classes based on key physical characteristics that affect equipment efficiency: (1) The type of condensing unit ( i.e., whether the system has a dedicated condensing unit or is connected to a multiplex system), (2) the operating temperature, and (3) the location of the walk-in ( i.e., indoors or outdoors). In this NOPR, DOE also proposes to differentiate refrigeration system classes based on capacity. DOE discusses the four proposed class differentiations below. Type of Condensing Unit Due to the significant impact of the condensing unit on the overall energy consumption of the walk-in (as much as 90 percent), the preliminary analysis differentiated between two different condensing unit types: dedicated condensing systems and multiplex condensing systems. In a dedicated condensing system, only one condensing unit (consisting of one or more compressors and condensers) serves a single walk-in. A multiplex condensing system consists of a rack of compressors usually located in a mechanical room, a large condenser or condensers usually located on the roof, and several unit coolers or evaporators belonging to various types of refrigeration equipment, including walk-ins. The only part of a multiplex condensing system that would be covered under the proposed standard would be a unit cooler in a walk-in—a “unit cooler connected to a multiplex condensing system.” The compressor and condenser of a multiplex system would not be covered under the walk-in standard because they serve equipment other than walk-ins. Furthermore, DOE would be unable to attribute the portion of energy use related to only the walk-in, at the point of manufacture of the compressor and condenser of the multiplex system. DOE received several comments about the classification of condensing types. AHRI, Nor-Lake and Manitowoc agreed with DOE's equipment classes proposed in the preliminary analysis, while the Joint Utilities suggested redesignating the multiplex and dedicated equipment classes as remote and self-contained, respectively. (AHRI, Public Meeting Transcript, No. 0045 at p. 74, Nor-Lake, No. 0049.1 at p. 1, Manitowoc, No. 0056 at p. 2, Manitowoc, Public Meeting Transcript, No. 0045 at p. 73, Joint Utilities, Public Meeting Transcript, No [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%3A2013-21530. Public record. Not legal advice.