# Energy Conservation Program: Energy Conservation Standards for General Service Fluorescent Lamps and Incandescent Reflector Lamps > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/fr%3A2015-00317 ## Record - **Collection:** Federal Register - **Document type:** Rule - **Published:** January 26, 2015 - **Citation:** 80 FR 4042 ## Text DEPARTMENT OF ENERGY 10 CFR Part 430 [Docket Number EERE-2011-BT-STD-0006] RIN 1904-AC43 Energy Conservation Program: Energy Conservation Standards for General Service Fluorescent Lamps and Incandescent Reflector Lamps AGENCY: Office of Energy Efficiency and Renewable Energy, Department of Energy. ACTION: Final rule. SUMMARY: The Energy Policy and Conservation Act of 1975 (EPCA), as amended, prescribes energy conservation standards for various consumer products and certain commercial and industrial equipment, including general service fluorescent lamps (GSFLs) and incandescent reflector lamps (IRLs). EPCA also requires the U.S. Department of Energy (DOE) to determine whether more-stringent standards would be technologically feasible and economically justified, and would save a significant amount of energy. In this final rule, DOE is adopting more-stringent energy conservation standards for GSFLs. It has determined that the amended energy conservation standards for these products would result in significant conservation of energy, and are technologically feasible and economically justified. DOE concluded in this final rule that amending energy conservation standards for IRLs would not be economically justified. DATES: The effective date of this rule is March 27, 2015. Compliance with the amended standards established for GSFLs and IRLs in this final rule is January 26, 2018. ADDRESSES: 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: www1.eere.energy.gov/buildings/appliance_standards/rulemaking.aspx/ruleid/24 . The regulations.gov Web page will contain simple instructions on how to access all documents, including public comments, in the docket. For further information on how to review the docket, contact Ms. Brenda Edwards at (202) 586-2945 or by email: Brenda.Edwards@ee.doe.gov . FOR FURTHER INFORMATION CONTACT: Ms. Lucy deButts, U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, Building Technologies Program, EE-2J, 1000 Independence Avenue SW., Washington, DC 20585-0121. Telephone: (202) 287-1604. Email: General_Service_Fluorescent_Lamps@ee.doe.gov . Ms. Elizabeth Kohl, U.S. Department of Energy, Office of the General Counsel, GC-71, 1000 Independence Avenue SW., Washington, DC 20585-0121. Telephone: (202) 586-7796. Email: Elizabeth.Kohl@hq.doe.gov . SUPPLEMENTARY INFORMATION: Table of Contents I. Summary of the Final Rule and Its Benefits A. Benefits and Costs to Consumers B. Impact on Manufacturers C. National Benefits D. Conclusion II. Introduction A. Authority B. Background 1. Current Standards 2. Corrections to Codified Standards 3. History of Standards Rulemaking for General Service Fluorescent Lamps and Incandescent Reflector Lamps 4. Test Procedure a. Standby and Off Mode Energy Consumption III. General Discussion A. Product Classes and Scope of Coverage B. Technological Feasibility 1. General 2. Maximum Technologically Feasible Levels C. Energy Savings 1. Determination of Savings 2. Significance of Savings D. Economic Justification 1. Specific Criteria a. Economic Impact on Manufacturers and Consumers b. Savings in Operating Costs Compared to Increase in Price c. Energy Savings d. Lessening of Utility or Performance of Products e. Impact of Any Lessening of Competition f. Need for National Energy Conservation g. Other Factors 2. Rebuttable Presumption IV. Issues Affecting Rulemaking Schedule V. Issues Affecting Scope A. Clarifications of General Service Fluorescent Lamp Definition B. General Service Fluorescent Lamp Scope of Coverage 1. Additional General Service Fluorescent Lamp Types 2. Additional General Service Fluorescent Lamp Wattages C. Incandescent Reflector Lamp Scope of Coverage 1. Incandescent Reflector Lamp Types 2. Incandescent Reflector Wattages D. Summary of Scope of Coverage VI. Methodology and Discussion A. Market and Technology Assessment 1. General Service Fluorescent Lamp Technology Options a. Highly Emissive Coatings b. Higher Efficiency Lamp Fill Gas Composition c. Higher Efficiency Phosphors d. Summary of GSFL Technology Options 2. Incandescent Reflector Lamp Technology Options a. Thinner Filaments b. Efficient Filament Coiling c. Efficient Filament Orientation d. Higher Efficiency Inert Fill Gas e. Higher Pressure Tungsten-Halogen Lamps f. Infrared Glass Coatings g. Efficient Filament Placement h. Integrally Ballasted Low Voltage Lamps i. Summary of IRL Technology Options B. Screening Analysis 1. General Service Fluorescent Lamp Design Options 2. Incandescent Reflector Lamp Design Options a. Higher Temperature Operation b. Thinner Filaments c. Higher Efficiency Reflector Coatings d. Higher Pressure Tungsten-Halogen Lamps C. Product Classes 1. General Service Fluorescent Lamp Product Classes a. Two-Foot U-Shaped Lamps b. Long-Life Lamps c. Summary of GSFL Product Classes 2. Incandescent Reflector Lamp Product Classes a. Rated Voltage b. Modified Spectrum c. Summary of IRL Product Classes D. Engineering Analysis 1. General Approach 2. General Service Fluorescent Lamp Engineering a. Data Approach b. Representative Product Classes c. Baseline Lamps d. More Efficacious Substitutes e. General Service Fluorescent Lamp Systems f. Max Tech g. Efficacy Levels h. Scaling to Other Product Classes i. Rare Earth Phosphors 3. Incandescent Reflector Lamp Engineering a. Representative Product Classes b. Baseline Lamps c. More Efficacious Substitutes d. Max Tech e. Efficacy Levels f. Scaling to Other Product Classes g. Xenon h. Proprietary Technology E. Product Pricing Determination F. Energy Use 1. Operating Hours 2. Lighting Controls a. General Service Fluorescent Lamp Lighting Controls b. Incandescent Reflector Lamp Lighting Controls G. Life-Cycle Cost Analysis and Payback Period Analysis 1. Consumer Product Price 2. Sales Tax 3. Installation Cost 4. Annual Energy Use 5. Product Energy Consumption Rate 6. Electricity Prices 7. Electricity Price Projections 8. Replacement and Disposal Costs 9. Lamp Purchase Events 10. Product Lifetime a. Lamp Lifetime b. Ballast Lifetime 11. Discount Rates 12. Analysis Period 13. Compliance Date of Standards 14. Incandescent Reflector Lamp Life-Cycle Cost Results in the NOPR H. Consumer Subgroup Analysis I. Shipments Analysis J. National Impact Analysis—National Energy Savings and Net Present Value Analysis 1. National Energy Savings 2. Net Present Value of Consumer Benefit a. Total Annual Installed Cost b. Total Annual Operating Cost Savings K. Manufacturer Impact Analysis 1. Manufacturer Production Costs 2. Shipment Projections 3. Markup Scenarios 4. Product and Capital Conversion Costs 5. Other Comments From Interested Parties a. High Cost to Manufacturers versus Relatively Low Energy Savings b. Impacts on Competition c. Impact of GSFL and IRL Standards on Alternative Lighting Technologies 6. Manufacturer Interviews L. Emissions Analysis M. Monetizing Carbon Dioxide and Other Emissions Impacts 1. Social Cost of Carbon a. Monetizing Carbon Dioxide Emissions b. Development of Social Cost of Carbon Values c. Current Approach and Key Assumptions 2. Valuation of Other Emissions Reductions N. Utility Impact Analysis O. Employment Impact Analysis P. Proposed Standards in April 2014 NOPR 1. GSFLs Proposed Standards 2. IRL Proposed Standards VII. Analytical Results A. Trial Standard Levels B. Economic Justification and Energy Savings 1. Economic Impacts on Individual Consumers a. Life-Cycle Cost and Payback Period b. Consumer Subgroup Analysis c. Rebuttable-Presumption Payback 2. Economic Impacts on Manufacturers a. Industry Cash-Flow Analysis Results b. Impacts on Employment c. Impacts on Manufacturing Capacity d. Impacts on Subgroups of Manufacturers e. Cumulative Regulatory Burden 3. National Impact Analysis a. Significance of Energy Savings b. Net Present Value of Consumer Costs and Benefits c. Alternative Scenario Analyses d. Indirect Impacts on Employment 4. Impact on Utility or Performance of Equipment 5. Impact of Any Lessening of Competition 6. Need of the Nation to Conserve Energy 7. Summary of National Economic Impacts C. Conclusions 1. Benefits and Burdens of Trial Standard Levels Considered for General Service Fluorescent Lamps 2. Summary of Benefits and Costs (Annualized) of the Adopted Standards for General Service Fluorescent Lamps 3. Benefits and Burdens of Trial Standard Levels Considered for Incandescent Reflector Lamps VIII. Procedural Issues and Regulatory Review A. Review Under Executive Orders 12866 and 13563 B. Review Under the Regulatory Flexibility Act 1. Description and Estimated Number of Small Entities Regulated a. Methodology for Estimating the Number of Small Entities b. Manufacturer Participation c. GSFL Industry Structure and Nature of Competition d. Comparison Between Large and Small Entities 2. Description and Estimate of Compliance Requirements 3. Duplication, Overlap, and Conflict With Other Rules and Regulations 4. Significant Alternatives to the Rule C. Review Under the Paperwork Reduction Act D. Review Under the National Environmental Policy Act of 1969 E. Review Under Executive Order 13132 F. Review Under Executive Order 12988 G. Review Under the Unfunded Mandates Reform Act of 1995 H. Review Under the Treasury and General Government Appropriations Act, 1999 I. Review Under Executive Order 12630 J. Review Under the Treasury and General Government Appropriations Act, 2001 K. Review Under Executive Order 13211 L. Review Under the Information Quality Bulletin for Peer Review M. Congressional Notification IX. Approval of the Office of the Secretary I. Summary of the Final Rule and Its Benefits Title III, Part B 1 of the Energy Policy and Conservation Act of 1975 (EPCA or the Act), Pub. L. 94-163 (42 U.S.C. 6291-6309, as codified), established the Energy Conservation Program for Consumer Products Other Than Automobiles. 2 These products include GSFLs and IRLs, the subject of this final rule. 1 For editorial reasons, upon codification in the U.S. Code, Part B was redesignated Part A. 2 All references to EPCA in this document refer to the statute as amended through the American Energy Manufacturing Technical Corrections Act (AEMTCA), Pub. L. 112-210 (Dec. 18, 2012). Pursuant to EPCA, any new or amended energy conservation standard must be designed to achieve the maximum improvement in energy efficiency that DOE determines is technologically feasible and economically justified. (42 U.S.C. 6295(o)(2)(A)) Furthermore, the new or amended standard must result in significant conservation of energy. (42 U.S.C. 6295(o)(3)(B)) In accordance with these and other statutory provisions discussed in this rule, DOE is adopting amended energy conservation standards for GSFLs. The amended standards, which are the minimum lumen output per watt of a lamp, are shown in Table I.1. These amended standards apply to all products listed in Table I.1, and manufactured in, or imported into, the United States on or after January 26, 2018. For IRLs, DOE considered an efficacy level (EL) as a means of increasing energy savings. However, based on the analyses presented in this final rule, DOE concluded that standards for IRLs are not economically justified and therefore, is not amending IRL standards. On July 14, 2009, DOE published a final rule in the Federal Register , which prescribed the current energy conservation standards for GSFLs and IRLs manufactured on or after July 14, 2012. 74 FR 34080. Table I.1—Energy Conservation Standards for General Service Fluorescent Lamps [Compliance starting January 26, 2018] Lamp type Covered wattages W Correlated color temperature Kelvin Adopted level lm/W * Percent increase over current standards 4-Foot Medium Bipin ≥25 W ≤4,500 K >4,500 K and ≤7,000 K 92.4 88.7 3.8 0.8 2-Foot U-Shaped ≥25 W ≤4,500 K >4,500 K and ≤7,000 K 85.0 83.3 1.2 2.8 8-Foot Slimline ≥49 W ≤4,500 K >4,500 K and ≤7,000 K 97.0 93.0 0.0 0.0 8-Foot Recessed Double Contact High Output All ≤4,500 K >4,500 K and ≤7,000 K 92.0 88.0 0.0 0.0 4-Foot Miniature Bipin Standard Output ≥25 W ≤4,500 K >4,500 K and ≤7,000 K 95.0 89.3 10.5 10.2 4-Foot Miniature Bipin High Output ≥44 W ≤4,500 K >4,500 K and ≤7,000 K 82.7 76.9 8.8 6.8 * A “lumen” is a measurement of the radiometric energy emission from a light source weighted by the response function of a human eye, called the photopic spectral luminous efficiency function, V(λ). Test procedures for measuring lumens are also specified at 10 CFR part 430, subpart B, appendix R. A. Benefits and Costs to Consumers Table I.2 presents DOE's evaluation of the economic impacts of these standards on consumers of GSFLs, as measured by the average life-cycle cost (LCC) savings and the median payback period (PBP). The weighted-average LCC savings are positive for all product classes with amended standards. Table I.2—Impacts of Energy Conservation Standards on Consumers of General Service Fluorescent Lamps Product class Weighted-average LCC savings 2013$ Weighted-average mean payback period * years 4-foot medium bipin ≤4,500 K 5.98 3.1 4-foot T5 miniature bipin standard output ≤4,500 K 5.68 4.0 4-foot T5 miniature bipin high output ≤4,500 K 4.74 2.8 8-foot single pin slimline ≤4,500 K **0.00 **0.0 8-foot recessed double contact HO ≤4,500 K **0.00 **0.0 * Does not include weighting for “NER” Scenarios. “NER” indicates standard levels that do not reduce operating costs, which prevents the consumer from recovering the increased purchase cost. ** Standards were not amended. 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 (2015 to 2047). Using a real discount rate of 9.2 percent, DOE estimates that the INPV for manufacturers of GSFLs is $1,551.6 million in 2013$. Under these standards, DOE expects that manufacturers may lose up to 21.3 percent of their INPV, which is approximately $330.0 million. Additionally, based on DOE's interviews with the manufacturers of GSFLs, DOE does not expect any plant closings or significant loss of employment. C. National Benefits 3 3 All monetary values in this section are expressed in 2013 dollars and are discounted to 2014. DOE's analyses indicate that these standards would save a significant amount of energy. The energy savings over the entire lifetime of GSFLs installed during the 30-year period that begins in the year of compliance with amended standards (2018-2047), in comparison to the base case without amended standards, amount to 2.5 quadrillion Btu (quads) 4 for GSFLs. This represents a savings of 7.1 percent relative to the energy use of this product in the base case without amended standards. No savings are realized for IRLs, as DOE is not amending the standards for IRLs. 4 A quad is equal to 10 15 British thermal units (Btu). The cumulative net present value (NPV) of total consumer costs and savings of these standards for GSFLs ranges from $2.0 billion (at a 7-percent discount rate) to $5.5 billion (at a 3-percent discount rate). This NPV expresses the estimated total value of future operating-cost savings minus the estimated increased product costs for products purchased in 2018-2047. In addition, these standards for GSFLs would have significant environmental benefits. The energy savings from the 30-year product purchase period with these standards, relative to the base case without amended standards, would result in cumulative greenhouse gas emission reductions of approximately 160 million metric tons (Mt) 5 of carbon dioxide (CO 2 ), 650 thousand tons of methane, 140 thousand tons of sulfur dioxide (SO 2 ), 230 thousand tons of nitrogen oxides (NO X ), 2.0 thousand tons of nitrous oxide (N 2 O), and 0.43 tons of mercury (Hg). 6 The cumulative reduction in CO 2 emissions through 2030 amounts to 90 Mt, which is equivalent to the emissions associated with annual electricity use of approximately 12 million homes. 5 A metric ton is equivalent to 1.1 short tons. Results for NO X and Hg are presented in short tons. 6 DOE calculated emissions reductions relative to the Annual Energy Outlook (AEO) 2014 Reference case, which generally represents current legislation and environmental regulations for which implementing regulations were available as of October 31, 2013. The value of the CO 2 reductions is calculated using a range of values per metric ton of CO 2 (otherwise known as the Social Cost of Carbon, or SCC) developed by a recent Federal interagency process. 7 The derivation of the SCC values is discussed in section VI.M.1. Using discount rates appropriate for each set of SCC values, DOE estimates that the net present monetary value of the CO 2 emissions reductions for GSFLs is between $1.36 billion and $17.6 billion, with a value of $5.72 billion using the central SCC case represented by $40.5/t in 2015. 8 DOE also estimates that the net present monetary value of the NO X emissions reductions is $400 million at a 3-percent discount rate, and $240 million at a 7-percent discount rate. 9 7 Technical Update of the Social Cost of Carbon for Regulatory Impact Analysis Under Executive Order 12866. Interagency Working Group on Social Cost of Carbon, United States Government. May 2013; revised November 2013. http://www.whitehouse.gov/sites/default/files/omb/assets/inforeg/technical-update-social-cost-of-carbon-for-regulator-impact-analysis.pdf . 8 The values only include CO 2 emissions, not CO 2 equivalent emissions; other gases with global warming potential are not included. 9 DOE is currently investigating valuation of avoided Hg and SO 2 emissions for future rule makings. Table I.3 summarizes the national economic costs and benefits expected to result from these standards for GSFLs. Table I.3—Summary of National Economic Benefits and Costs of Amended Energy Conservation Standards for General Service Fluorescent Lamps * Category Present value Billion 2013$ Discount rate (%) Benefits Operating Cost Savings 11.2 18.9 7 3 CO 2 Reduction Monetized Value ($12.0/t case) ** 1.3 5 CO 2 Reduction Monetized Value ($40.5/t case) ** 5.72 3 CO 2 Reduction Monetized Value ($62.4/t case) ** 8.92 2.5 CO 2 Reduction Monetized Value ($119/t case) ** 17.6 3 NO X Reduction Monetized Value (at $2,684/ton) 0.24 0.40 7 3 Total Benefits † 17.1 25.1 7 3 Costs Incremental Installed Costs ‡ 9.17 13.5 7 3 Including Emissions Reduction Monetized Value † 7.96 11.6 7 3 * This table presents the costs and benefits associated with GSFLs shipped in 2018-2047. These results include impacts on consumers that accrue after 2047 from the products purchased in 2018-2047. The results account for the incremental variable and fixed costs incurred by manufacturers due to the standard, some of which may be incurred in preparation for the rule. ** The CO 2 values represent global monetized values of the SCC, in 2013$, in 2015 under several scenarios of the updated SCC values. The first three cases use the averages of SCC distributions calculated using 5%, 3%, and 2.5% discount rates, respectively. The fourth case represents the 95th percentile of the SCC distribution calculated using a 3% discount rate. The SCC time series incorporate an escalation factor. † Total Benefits for both the 3% and 7% cases are derived using the series corresponding to average SCC with 3-percent discount rate ($40.5/t case). The benefits and costs of these standards, for products sold in 2018-2047, 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 operating the product that meets the amended standard (consisting primarily of operating cost savings from using less energy, minus increases in product purchase prices and installation costs), which is another way of representing consumer NPV, and (2) the annualized monetary value of the benefits of emission reductions, including CO 2 emission reductions. 10 10 To convert the time-series of costs and benefits into annualized values, DOE calculated a present value in 2014, the year used for discounting the NPV of total consumer costs and savings. For the benefits, DOE calculated a present value associated with each year's shipments in the year in which the shipments occur ( e.g., 2020 or 2030), and then discounted the present value from each year to 2014. The calculation uses discount rates of 3 and 7 percent for all costs and benefits except for the value of CO 2 reductions, for which DOE used case-specific discount rates. Using the present value, DOE then calculated the fixed annual payment over a 30-year period, starting in the compliance year, that yields the same present value. Although adding the value of consumer savings to the values of emission reductions provides a valuable perspective, two issues should be considered. First, the national operating cost savings are domestic U.S. consumer monetary savings that occur as a result of market transactions, whereas 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 GSFLs shipped in 2018-2047. The SCC values, on the other hand, reflect the present value of all future climate-related impacts resulting from the emission of one metric ton of carbon dioxide in each year. These impacts continue well beyond 2100. Estimates of annualized benefits and costs of these standards for GSFLs are shown in Table I.4. The results under the primary estimate are as follows. Using a 7-percent discount rate for benefits and costs other than CO 2 reduction, for which DOE used a 3-percent discount rate along with the SCC series that has a value of $40.5/t in 2015, the cost of the standards in this rule is $841 million per year in increased equipment costs, while the benefits are $1,030 million per year in reduced equipment operating costs, $310 million in CO 2 reductions, and $22.4 million in reduced NO X emissions. In this case, the net benefit amounts to $516 million per year. Using a 3-percent discount rate for all benefits and costs and the SCC series that has a value of $40.5/t in 2015, the cost of the standards in this rule is $724 million per year in increased equipment costs, while the benefits are $1,020 million per year in reduced operating costs, $310 million in CO 2 reductions, and $21.6 million in reduced NO X emissions. In this case, the net benefit amounts to $627 million per year. 11 11 The annualized consumer operating cost savings, NO X reduction monetized value, and consumer incremental product costs are higher with a 7-percent discount rate than with a 3-percent discount rate. This is in contrast to the present values in Table I.3. Under certain conditions, different present values may lead to similar annualized values when calculated with different discount rates. In this case, the combined effects of (a) projecting to 2018 the present values that DOE calculated in 2014, and (b) annualizing the projected values with 3 percent and 7 percent discount rates over the 30-year analysis period, lead to similar annualized values. For consumer incremental product costs, the effect is more pronounced because the time series covers only 30 years, instead of the longer period covered for operating cost savings and NO X reduction monetized value. Table I.4—Annualized Benefits and Costs of Amended Energy Conservation Standards for General Service Fluorescent Lamps * Discount rate million 2013$/year Primary estimate LowNet benefits estimate HighNet benefits estimate Benefits Consumer Operating Cost Savings 7% 3% 1,030 1,020 1,010 1,000 1,050 1,050 CO 2 Reduction Monetized Value ($12.0/t case) ** 5% 97.5 97.1 97.5 CO 2 Reduction Monetized Value ($40.5/t case) ** 3% 310 308 310 CO 2 Reduction Monetized Value ($62.4/t case) ** 2.5% 448 446 448 CO 2 Reduction Monetized Value ($119/t case) ** 3% 950 946 950 NO X Reduction Monetized Value (at $2,684/ton) ** 7% 3% 22.4 21.6 22.3 21.5 22.4 21.6 Total Benefits † 7% plus CO 2 range 1,150 to 2,000 1,130 to 1,980 1,170 to 2,030 7% 1,360 1,340 1,390 3% plus CO 2 range 1,140 to 2,000 1,120 to 1,970 1,170 to 2,030 3% 1,360 1,330 1,390 Costs Consumer Incremental Product Costs 7% 3% 841 724 882 763 841 724 Net Benefits Total † 7% plus CO 2 range 300 to 1,160 241 to 1,090 328 to 1,180 7% 516 452 540 3% plus CO 2 range 415 to 1,270 350 to 1,200 443 to 1,300 3% 627 561 655 * This table presents the annualized costs and benefits associated with GSFLs shipped in 2018−2047. These results include benefits to consumers that accrue after 2047 from the products purchased in 2018−2047. The results account for the incremental variable and fixed costs incurred by manufacturers due to the standard, some of which may be incurred in preparation for the rule. The Primary Benefits Estimate assumes the Reference case energy prices from AEO 2014 and decreasing incremental product cost, due to price learning. The Low Benefits Estimate uses the Low Economic Growth energy prices from AEO 2014 and constant real product prices. The High Benefits Estimate assumes the Low Economic Growth energy price estimates from AEO 2014 and the same decreasing incremental product costs as in the Primary Benefits Estimate. ** The CO 2 values represent global monetized values of the SCC, in 2013$, in 2015 under several scenarios of the updated SCC values. The first three cases use the averages of SCC distributions calculated using 5%, 3%, and 2.5% discount rates, respectively. The fourth case represents the 95th percentile of the SCC distribution calculated using a 3% discount rate. The SCC time series used by DOE 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% and 7% cases are derived using the series corresponding to the average SCC with 3-percent discount rate ($40.5/t case). 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. D. Conclusion Based on the analyses culminating in this final rule, DOE found that for GSFLs the benefits to the nation of the standards (energy savings, consumer LCC savings, positive NPV of consumer benefit, and emission reductions) outweigh the burdens (loss of INPV and LCC increases for some users of these products). DOE has concluded that the standards in this rule represent the maximum improvement in energy efficiency that is technologically feasible and economically justified, and would result in significant conservation of energy. II. Introduction The following section briefly discusses the statutory authority underlying this rule, as well as some of the relevant historical background related to the establishment of existing standards for GSFLs and IRLs. A. Authority Title III, Part B of the Energy Policy and Conservation Act of 1975 (EPCA or the Act), Public Law 94-163 (42 U.S.C. 6291-6309, as codified) established the Energy Conservation Program for Consumer Products Other Than Automobiles, a program covering most major household appliances (collectively referred to as “covered products”), which includes the types of GSFLs and IRLs that are the subject of this rulemaking. (42 U.S.C. 6292(a)(14)) EPCA prescribed energy conservation standards for these products (42 U.S.C. 6295(i)(1)), and directed DOE to conduct further rulemakings to determine whether to amend these standards. (42 U.S.C. 6295(i)(3)-(5)) On July 14, 2009, DOE published a final rule in the Federal Register , which completed the first rulemaking cycle to amend energy conservation standards for GSFLs and IRLs (hereafter the “2009 Lamps Rule”). 74 FR 34080. That rule adopted standards for additional GSFLs, amended the definition of “colored fluorescent lamp” and “rated wattage,” and also adopted test procedures applicable to the newly covered GSFLs. Information regarding the 2009 Lamps Rule can be found on regulations.gov, docket number EERE-2006-STD-0131 at www.regulations.gov/#!docketDetail;D=EERE-2006-STD-0131 . This rulemaking encompasses DOE's second cycle of review to determine whether the standards in effect for GSFLs and IRLs should be amended, including whether the standards should be applicable to additional GSFLs. (DOE notes that under 42 U.S.C. 6295(m), the agency must periodically review its already established energy conservation standards for a covered product. Under this requirement, the next review that DOE would need to conduct must occur no later than six years from the issuance of a final rule establishing or amending a standard for a covered product.) Pursuant to EPCA, DOE's energy conservation program for covered products consists essentially of four parts: (1) Testing; (2) labeling; (3) the establishment of federal energy conservation standards; and (4) certification and enforcement procedures. The Federal Trade Commission (FTC) is primarily responsible for labeling, and DOE implements the remainder of the program. Subject to certain criteria and conditions, DOE is required to develop test procedures to measure the energy efficiency, energy use, or estimated annual operating cost of each covered product. (42 U.S.C. 6293) Manufacturers of covered products must use the prescribed DOE test procedure as the basis for certifying to DOE that their products comply with the applicable energy conservation standards adopted under EPCA and when making representations to the public regarding the energy use or efficiency of those products. (42 U.S.C. 6293(c) and 6295(s)) Similarly, DOE must use these test procedures to determine whether the products comply with standards adopted pursuant to EPCA. Id. The DOE test procedures for GSFLs and IRLs currently appear at title 10 of the Code of Federal Regulations (CFR) part 430, subpart B, appendix R. DOE must follow specific statutory criteria for prescribing amended standards for covered products. As indicated above, any amended standard for a covered product must be designed to achieve the maximum improvement in energy efficiency that is technologically feasible and economically justified. (42 U.S.C. 6295(o)(2)(A)) Furthermore, DOE may not adopt any standard that would not result in the significant conservation of energy. (42 U.S.C. 6295(o)(3)) Moreover, DOE may not prescribe a standard: (1) For certain products, including GSFLs and IRLs, if no test procedure has been established for the product, or (2) if DOE determines by rule that the amended standard is not technologically feasible or economically justified. (42 U.S.C. 6295(o)(3)(A)-(B)) In deciding whether an amended standard is economically justified, DOE must determine whether the benefits of the standard exceed its burdens. (42 U.S.C. 6295(o)(2)(B)(i)) DOE must make this determination after receiving comments on the proposed standard, and by considering, to the greatest extent practicable, the following seven statutory factors: 1. The economic impact of the standard on manufacturers and consumers of the products subject to the standard; 2. The savings in operating costs throughout the estimated average life of the covered products in the type (or class) compared to any increase in the price, initial charges, or maintenance expenses for the covered products that are likely to result from the imposition of the standard; 3. The total projected amount of energy, or as applicable, water, savings likely to result directly from the imposition of the standard; 4. Any lessening of the utility or the performance of the covered products likely to result from the imposition of the standard; 5. The impact of any lessening of competition, as determined in writing by the Attorney General, that is likely to result from the imposition of the standard; 6. The need for national energy and water conservation; and 7. Other factors the Secretary of Energy (Secretary) considers relevant. (42 U.S.C. 6295(o)(2)(B)(i)(I)-(VII)) EPCA, as codified, also contains what is known as an “anti-backsliding” provision, which prevents the Secretary from prescribing any amended standard that either increases the maximum allowable energy use or decreases the minimum required energy efficiency of a covered product. (42 U.S.C. 6295(o)(1)) Also, the Secretary may not prescribe 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. (42 U.S.C. 6295(o)(4)) Further, EPCA, as codified, establishes a rebuttable presumption that a standard is economically justified if the Secretary finds that the additional cost to the consumer of purchasing a product complying with an energy conservation standard level will be less than three times the value of the energy savings during the first year that the consumer will receive as a result of the standard, as calculated under the applicable test procedure. See 42 U.S.C. 6295(o)(2)(B)(iii). Additionally, 42 U.S.C. 6295(q)(1) specifies requirements when promulgating a standard for a type or class of covered product that has two or more subcategories. DOE must specify a different standard level than that which applies generally to such type or class of products for any group of covered products that have the same function or intended use if DOE determines that products within such group (A) consume a different kind of energy from that consumed by other covered products within such type (or class); or (B) have a capacity or other performance-related feature which other products within such type (or class) do not have and such feature justifies a higher or lower standard. (42 U.S.C. 6295(q)(1)) In determining whether a performance-related feature justifies a different standard for a group of products, DOE must consider such factors as the utility to the consumer of such a feature and other factors DOE deems appropriate. Id. Any rule prescribing such a standard must include an explanation of the basis on which such higher or lower level was established. (42 U.S.C. 6295(q)(2)) Federal energy conservation requirements generally supersede state laws or regulations concerning energy conservation testing, labeling, and standards. (42 U.S.C. 6297(a)-(c)) DOE may, however, grant waivers of federal preemption for particular state laws or regulations, in accordance with the procedures and other provisions set forth under 42 U.S.C. 6297(d)). Finally, pursuant to the amendments contained in section 310(3) of the Energy Independence and Security Act of 2007 (EISA 2007), any final rule for new or amended energy conservation standards promulgated after July 1, 2010, are required to address standby mode and off mode energy use. (42 U.S.C. 6295(gg)(3)) Specifically, when DOE adopts a standard for a covered product after that date, it must, if justified by the criteria for adoption of standards under EPCA (42 U.S.C. 6295(o)), incorporate standby mode and off mode energy use into the standard, or, if that is not feasible, adopt a separate standard for such energy use for that product. (42 U.S.C. 6295(gg)(3)(A)-(B)) DOE has determined that standby mode and off mode do not apply to GSFLs and IRLs and that their energy use is accounted for entirely in the active mode. Therefore, DOE is not addressing standby and off modes, and will only address active mode in this rulemaking. DOE has also reviewed this regulation pursuant to Executive Order (E.O.) 13563, issued on January 18, 2011 (76 FR 3281, Jan. 21, 2011). E.O. 13563 is supplemental to and explicitly reaffirms the principles, structures, and definitions governing regulatory review established in Executive Order 12866, “Regulatory Planning and Review,” 58 FR 51735 (Oct. 4, 1993). To the extent permitted by law, agencies are required by Executive Order 13563 to: (1) Propose or adopt a regulation only upon a reasoned determination that its benefits justify its costs (recognizing that some benefits and costs are difficult to quantify); (2) tailor regulations to impose the least burden on society, consistent with obtaining regulatory objectives, taking into account, among other things, and to the extent practicable, the costs of cumulative regulations; (3) select, in choosing among alternative regulatory approaches, those approaches that maximize net benefits (including potential economic, environmental, public health and safety, and other advantages; distributive impacts; and equity); (4) to the extent feasible, specify performance objectives, rather than specifying the behavior or manner of compliance that regulated entities must adopt; and (5) identify and assess available alternatives to direct regulation, including providing economic incentives to encourage the desired behavior, such as user fees or marketable permits, or providing information upon which choices can be made by the public. DOE emphasizes as well that Executive Order 13563 requires agencies to use the best available techniques to quantify anticipated present and future benefits and costs as accurately as possible. In its guidance, the Office of Information and Regulatory Affairs (OIRA) has emphasized that such techniques may include identifying changing future compliance costs that might result from technological innovation or anticipated behavioral changes. For the reasons stated in the preamble, DOE believes that this rule is consistent with these principles, including the requirement that, to the extent permitted by law, benefits justify costs and that net benefits are maximized. Consistent with E.O. 13563, and the range of impacts analyzed in this rulemaking, the energy-efficiency standard adopted herein by DOE achieves maximum net benefits. For further discussion of how this rulemaking achieves maximum net benefits, see section VII. B. Background 1. Current Standards In the 2009 Lamps Rule, DOE prescribed the current energy conservation standards for GSFLs and IRLs manufactured on or after July 14, 2012 (hereafter the “July 2012 standards”). 74 FR 34080. The current standards are set forth in Table II.1 and Table II.2. Table II.1—July 2012 Standards for General Service Fluorescent Lamps Lamp type Correlated color temperature Minimum average lamp efficacy lm/W Four-Foot Medium Bipin ≤4,500K >4,500 K and ≤7,000 K 89 88 Two-Foot U-Shaped ≤4,500 K >4,500 K and ≤7,000 K 84 81 Eight-Foot Slimline ≤4,500 K >4,500 K and ≤7,000 K 97 93 Eight-Foot High Output ≤4,500 K >4,500 K and ≤7,000 K 92 88 Four-Foot Miniature Bipin Standard Output ≤4,500 K >4,500 K and ≤7,000 K 86 81 Four-Foot Miniature Bipin High Output ≤4,500 K >4,500 K and ≤7,000 K 76 72 Table II.2—July 2012 Standards for Incandescent Reflector Lamps Rated lamp wattage Lamp spectrum Lamp diameter inches Rated voltage Minimum average lamp efficacy lm/W 40-205 Standard Spectrum >2.5 ≥125 V 2.5 12 ≥125 V 35 W ≤35 W 69 45 75.0 75.0 Nov. 1, 1995. Nov. 1, 1995. 2-foot U-shaped >35 W ≤35 W 69 45 68.0 64.0 Nov. 1, 1995. Nov. 1, 1995. 8-foot slimline >65 W ≤65 W 69 45 80.0 80.0 May 1, 1994. May 1, 1994. 8-foot high output >100 W ≤100 W 69 45 80.0 80.0 May 1, 1994. May 1, 1994. For the IRL standards adopted by the 2009 Lamps Rule that are codified in 10 CFR 430.32(n)(5), the minimum lamp efficacy of 5.8P 0.27 is for lamps with a rated wattage of 40-205 W, modified spectrum, diameter greater than 2.5 inches, and rated voltage of “greater than or equal to 125 V” rather than “less than or equal to 125 V.” The revised table will read as follows: Table II.4—IRL Standards Adopted by the 2009 Lamps Rule Rated lamp wattage Lamp spectrum Lamp diameter inches Rated voltage Minimum average lamp efficacy lm/W 40-205 Standard Spectrum >2.5 ≥125 V 2.5 ≥125 V 4,500 K 2-foot U-shaped ≤4,500 K >4,500 K 8-foot single pin slimline ≤4,500 K >4,500 K 8-foot recessed double contact high output ≤4,500 K >4,500 K 4-foot T5, miniature bipin standard output ≤4,500 K >4,500 K 4-foot T5, miniature bipin high output ≤4,500 K >4,500 K 2. Incandescent Reflector Lamp Product Classes In the NOPR analysis, DOE proposed product classes for IRLs based on the following three factors: (1) Rated voltage, separating lamps less than 125 V from lamps greater than or equal to 125 V; (2) lamp spectrum, separating lamps with a standard spectrum from lamps with a modified spectrum; and (3) lamp diameter, separating lamps with a diameter greater than 2.5 inches from lamps with a diameter less than or equal to 2.5 inches. 79 FR at 24092 (April 29, 2014). DOE received comments on the rated voltage and modified spectrum product class setting factors. DOE did not receive feedback on the other product class divisions proposed for IRLs in the NOPR analysis. a. Rated Voltage In the NOPR analysis, DOE proposed rated voltage as a class setting factor, establishing a product class for IRLs with voltages less than 125 V and a product class for IRLs with voltages greater than or equal to 125 V. NEMA stated that DOE's reasoning for a separate 130 V product class was out of concern that consumers would shift to 130 V options that are less efficient than 120 V lamps resulting in increased energy consumption. However, NEMA noted that when operated at 120 V, a 60 W 130 V PAR38 uses less energy, approximately 54-55 W. Further, NEMA stated that since this decreases light output, consumers would not choose 130 V IRLs to `cheat' on energy conservation standards. (NEMA, No. 54 at p. 30) DOE agrees that the 130 V lamp described by NEMA would use less energy when operated at 120 V. However, in the NOPR analysis and in this final rule DOE concludes that the corresponding decrease in light output would result in consumers purchasing additional lamps to maintain sufficient light. 79 FR at 24093 (April 29, 2014). Therefore, setting higher standards for IRLs without accounting for voltage differences could result in increased energy consumption. Westinghouse remarked that the absence of 130 V IRLs on the market has resulted in a loss in utility as 130 V IRLs were used to maintain product lifetimes in areas with transients, voltage spikes, and other power issues, and that consumers in those markets will have to buy more light bulbs due to voltage issues. Citing the 130 V lamps as an example, Westinghouse noted that in this rulemaking DOE has to be careful when setting new IRL standards that such unintended consequences do not happen as they cannot be fixed in the future due to the backsliding provision. (Westinghouse, Public Meeting Transcript, No. 49 at pp. 43-44) DOE is aware that the 130 V lamps can provide a certain utility by lasting longer than 120 V lamps in certain areas that are susceptible to voltage spikes. However, based on its assessment that most consumers operate 130 V IRLs at 120 V and differences in efficacy when they are operated at 120 V versus tested at 130 V, DOE determined that there would be a potential migration to 130 V IRLs if they were subject to the same standards as 120 V IRLs and further that there would be additional purchases of 130 V IRLs by the consumer. Hence, in order to preserve energy savings, DOE maintained the rated voltage class division that separates covered IRLs less than 125 V from those that are greater than or equal to 125 V in this rulemaking. (See chapter 3 of the final rule TSD for further information.) b. Modified Spectrum Modified spectrum IRLs provide unique utility to consumers by providing a different type of light than standard spectrum lamps, much like fluorescent lamps with different CCT values. However, the same technologies ( i.e., coatings) that modify the spectral emission of a lamp also decrease lamp efficacy. Therefore, in the NOPR DOE proposed a product class division separating standard spectrum IRLs from modified spectrum IRLs. 79 FR at 24093 (April 29, 2014). EEOs added that a separate product class for modified spectrum lamps may not be needed as more efficient technologies, such as CFLs and LEDs, are able to achieve the same utility and also due to the lack of commercially available modified spectrum lamps covered by the rulemaking. (EEOs, No. 55 at pp. 7-8) CA IOUs agreed that due to the limited number of modified spectrum IRLs on the market, the category should be eliminated. (CA IOUs, Public Meeting Transcript, No. 49 at p. 20) ASAP and CA IOUs concluded that there is no need to make an exemption or have a less efficacious standard for modified spectrum lamps. (ASAP, Public Meeting Transcript, No. 49 at pp. 17-18; CA IOUs, Public Meeting Transcript, No. 49 at p. 20) NEMA commented that modified spectrum lamps, like 130 V lamps, cannot remain both cost effective and compliant and referred DOE to manufacturer interviews for additional details. (NEMA, No. 54 at p. 31) As in the NOPR, DOE continues to believe that modified spectrum lamps offer unique utility by providing a different spectrum of light. 79 FR at 24093 (April 29, 2014). Although more efficient technologies, such as CFLs and LEDs, may offer similar spectrums, DOE must maintain consumer utility for the products that are within the scope of this rulemaking. Modified spectrum IRLs modify the spectral emission of a lamp in such a way that lamp efficacy decreases. DOE acknowledges that there are currently no modified spectrum products on the market. However, DOE maintains that there are no technological barriers to creating these products. DOE does not consider cost when establishing product classes. Because modified spectrum lamps offer unique utility but at lower efficacy compared to standard spectrum products, DOE maintained the class division for lamp spectrum in this final rule. c. Summary of IRL Product Classes In this final rule analysis, DOE established product classes for IRLs as summarized in Table VI.4. See chapter 3 of the final rule TSD for further details on each IRL product class. Table VI.4—IRL Product Classes in Final Rule Analysis Lamp type Diameter (in inches) Voltage Standard Spectrum >2.5 ≥125 V 2.5 ≥125 V . NEEP noted that REO prices and availability had improved in the last few years and, according to DOE, would continue to fluctuate. NEEP commented that DOE appropriately weighed the variability of REO prices in the analysis. (NEEP, No. 57 at p. 3) In April of 2012, several manufacturers were granted exception relief exempting their 700 series T8 lamps from the July 2012 standards for a period of two years. The waiver was granted due to the global supply restrictions on rare earth phosphors, the rising world demand of these phosphors, and the resulting impacts on producing higher efficacy GSFLs. DOE notes that manufacturers, in their applications for exception relief, stated that they expected an improvement in the rare earth market, specifically noting that supplies of key rare earth phosphors used in fluorescent lamps will become more equal to estimated demand beginning in 2014. Manufacturers also stated that the two-year relief would provide time for potential development of additional supplies outside of China, for progress in technology advancements and development of alternative technologies that use lesser amounts of rare earth material, and for the expansion of recycling and reclamation initiatives. 40 Because this waiver expired in 2014, and manufacturers did not reapply for exception relief, DOE does not believe that the availability of high efficiency phosphors will affect manufacturers' ability to consistently produce a product. However, DOE acknowledges that the market for rare earth phosphors is uncertain and therefore continues to analyze in this final rule a scenario of increased rare earth phosphor prices in the LCC and NIA. 40 Philips Lighting Company, et al. OHA Case Nos. EXC-12-0001, EXC-12-0002, EXC-12-0003 (2012). Accessible here: http://energy.gov/sites/prod/files/oha/EE/EXC-12-0001thru03.pdf. 3. Incandescent Reflector Lamp Engineering For IRLs, DOE received several comments on the engineering analysis presented in the NOPR. 79 FR at 24106 (April 29, 2014). Stakeholders provided feedback on DOE's baseline lamps, selection of more efficacious substitutes, max tech level, ELs, scaling, and xenon. The following sections summarize the comments and responses received on these topics, and present the IRL engineering methodology for this final rule analysis. a. Representative Product Classes When a product has multiple product classes, DOE identifies and selects certain product classes as representative and analyzes those product classes directly. DOE chooses these representative product classes primarily due to their high market volumes. For IRLs, in the NOPR analysis DOE identified standard spectrum lamps, with diameters greater than 2.5 inches, and input voltage less than 125 V as the representative product class, shown in gray in Table VI.5. 79 FR at 24107 (April 29, 2014). NEMA commented that the only IRLs that still have any meaningful product sales are in the standard spectrum, less than 2.5 inches in diameter, less than 125 V product class. (NEMA, No. 54 at p. 21) Receiving no other comments, DOE maintained the same IRL representative product classes for the final rule. Table VI.5—IRL Representative Product Classes Lamp type Diameter Voltage Standard spectrum >2.5 inches ≥125 2.5 inches ≥125 2.5 Inches PAR38 Improved Halogen 60 17.8 1,070 1,500 c. More Efficacious Substitutes DOE selects more efficacious replacements for the baseline lamps considered within each representative product class. DOE considers only design options identified in the screening analysis. In the NOPR, DOE considered substitute lamps that saved energy and, where possible, had a light output within 10 percent of the baseline lamp's light output. Id. at 24109. In identifying the more efficacious substitutes, DOE utilized a database of commercially available lamps. DOE identified two higher efficacy, reduced wattage lamps, referred to in this analysis as an HIR lamp with a lifetime of 2,500 hours and an improved HIR lamp with a lifetime of 4,200 hours, as more efficacious substitutes for the baseline lamp. DOE received several comments regarding its choice for the more efficacious substitutes. NEMA insisted that 3,000-hour and longer lifetimes must be available in the commercial market for the product line to maintain viability, as long life is a consumer-demanded utility. Lamp lifetimes shorter than 3,000 hours for premium and expensive halogen PAR38 lamps would not be sustainable or acceptable in the commercial market. (NEMA, No. 54 at p. 21) NEMA further explained that the only remaining method to increase IRL efficacy is by shortening their lifetime, and many IRLs are already rated at 1,000 hours. NEMA noted that a 1,000-hour lifetime represents a previous loss of utility from complying with efficacy requirements, and that the shortened lifetime has resulted in public backlash. NEMA warned that with the standards proposed in the NOPR, consumers would lose the utility of lifetime. Using a calculation from The Science of Incandescence, 41 NEMA stated that the higher efficacy of EL 1 would result in a 30 percent reduction in lifetime for these lamps, causing a total loss of financial feasibility. (NEMA, No. 54 at pp. 21, 29, 49) Westinghouse remarked that IRLs are already at max tech, and that unlike with GSFLs, there is no opportunity for tradeoffs between efficacy and utility. (Westinghouse, Public Meeting Transcript, No. 49 at pp. 54-56) 41 Vukcevich, Milan R., Science of Incandescence, NELA Press, 1992. DOE recognizes that there is an inverse relationship between efficacy and lifetime for IRLs. DOE believes typical lifetimes of IRLs regulated by this rulemaking are between 1,500 and 4,400 hours. In the engineering analysis, DOE only considered lamps with lifetimes greater than or equal to the baseline when selecting representative lamp units. DOE found evidence that improved technology lamps ( i.e., HIR lamps) with lifetimes higher than the baseline lifetime are prevalent on the market. Both representative lamp units that DOE selected in the engineering analysis have lifetimes longer than the baseline. While manufacturers can choose to introduce shorter lifetime products in the future, DOE does not require shortening of lamp lifetime to meet any analyzed level. One of the representative units at EL 1 has a lifetime of 4,200 hours. Thus, DOE ensured that products with lifetimes greater than 3,000 hours would be available for consumers desiring longer life products. NEMA commented that the PAR38 lamp is not an adequately representative lamp and inappropriately skews DOE's analysis because it is the only lamp type in the class that can physically incorporate the largest number of technology options, overstating the possible energy savings. NEMA encouraged DOE to examine smaller diameter lamps to better understand what technology options are feasible. (NEMA, No. 54 at p. 29) As an example, NEMA commented that the lifetime of the PAR30 lamp would have to be shortened to the point of being economically infeasible and unmarketable to consumers to meet standards. (NEMA, No. 54 at pp. 29-30) NEMA could not identify a lamp that met the EL proposed in the NOPR while still providing adequate lifetime in all sizes. Specifically, NEMA stated that the rule proposed in the NOPR would allow only certain PAR38 lamps to meet the regulations and most other types and classes of covered IRLs would be eliminated. NEMA argued, therefore, that the EL proposed in the NOPR is invalid for most lamps. (NEMA, No. 54 at p. 29) DOE recognizes that in addition to PAR38 lamps, the representative product class also includes PAR30 lamps. Because it is a more common lamp size among the covered IRLs, DOE selected PAR38 as the diameter for the baseline lamp and more efficacious substitutes of the baseline. DOE's research indicates that the design options identified for PAR38 lamps are also applicable to PAR30 lamps. DOE assessed the availability of PAR30 lamps as more efficacious substitutes. DOE found that there are PAR30 lamps with lifetimes of 3,500 and 4,400 hours that are able to achieve the same efficacies as PAR38 lamps. See chapter 5 of the final rule TSD for additional details. CA IOUs expressed disappointment that there were not multiple efficacy levels representing higher performance products. CA IOUs stated that DOE had restricted itself to a small subset of IRLs by focusing on PAR38 lamps and requiring lumens to be within 10 percent of the baseline lamp, limiting the lumen range to about 963 to 1,170. CA IOUs mentioned that any design strategies used in other lamp types, ( e.g., 800-lumen lamp, 1,200-lumen lamp, PAR30 lamp) that improved efficacy would be fairly transferable among lamp types. CA IOUs questioned why DOE did not consider potential efficacy improvements from these lamp types. (CA IOUs, Public Meeting Transcript, No. 49 at pp. 107-109) Specifically, CA IOUs noted four lamps that have better performance than the proposed efficacy level: The GE 60 W PAR HIR Plus operating at 21 lm/W, the Philips PAR38 Energy Halogen DiOptic operating at 20 lm/W, the OSRAM SYLVANIA PAR38 medium-base warm white outdoor halogen flood operating at 20 lm/W, and the OSRAM SYLVANIA PAR38 warm white outdoor halogen flood operating at 21 lm/W. (CA IOUs, Public Meeting Transcript, No. 49 at pp. 107-109, 118) ASAP also disagreed with DOE's criteria of restricting lumen output to be within 10 percent of the baseline lamp, noting that the NOPR analysis seemed to suggest that DOE understood that technologies used in one lamp to achieve a certain lumen package can be used in another. Therefore, ASAP questioned why DOE rejected a more efficacious technology used in another lamp due to the lumen output of that lamp having a greater than 10 percent difference from the baseline lamp. ASAP stated that DOE should have analyzed the more efficacious technology and used scaling to maintain the baseline lumen output. (ASAP, Public Meeting Transcript, No. 49 at p. 113) GE, on the other hand, commented that the analysis presented in the NOPR was fairly accurate in terms of addressing and looking at the other potential more efficacious products. GE argued that not all of the lamps proposed by commenters to be more efficacious were within the scope of this rulemaking and not all of the proposed technologies were transferable to covered lamps. (GE, Public Meeting Transcript, No. 49 at p. 112) DOE used certain criteria when selecting more efficacious substitutes. Specifically, DOE only considered lamps with the same reflector shape as the baseline lamp, wattages less than the baseline wattage, lumens within 10 percent of the baseline lumens, lifetimes equal to or greater than the baseline lifetime, and that were commercially available in the United States or available as prototypes. These criteria ensured that higher efficacy lamps with similar characteristics to the baseline were available to consumers at each efficacy level analyzed. When establishing efficacy levels, DOE considered all lamps available. DOE reviewed the design options incorporated into each lamp, the ability of lamps across lumen packages to meet the level, and the max tech level. Regarding the four lamps that CA IOUs noted as having better performance than the proposed efficacy level, one of them was part of a product line for which certification data indicated that the product line performed below or much closer to EL 1 than indicated by its catalog data. Another of the lamps was part of a product family for which certification data indicated that product performance was at the existing standard level, or baseline, rather than EL 1. A third lamp in the group of four did not have certification data available for DOE to substantiate its performance claims in catalogs. The fourth lamp did have both catalog and certification data available and that data indicated that it performed above EL 1. However, this lamp was not part of a full product line that would indicate that the technology incorporated in the lamps could be used across all lumen packages. While DOE is aware that it is generally the case that technology can be shared among various lamps, modeling a product allows DOE to estimate lamp performance but not confirm performance via certification data or independent testing, a significant concern in this rulemaking. Furthermore, costs for such a product would be uncertain as it would not be commercially available at the time of the analysis. Therefore, DOE chose not to model a higher efficacy lamp that met its criteria for selecting representative units in the NOPR as well as the final rule analysis. NEEA commented that, unless the market shares of the 60 W PAR38 and 55 W PAR38 lamps are close to 90 percent of the market, DOE's analysis was incomplete and the more efficacious lamps suggested by CA IOUs need to be analyzed. (NEEA, Public Meeting Transcript, No. 49 at pp. 111-112) Through a review of product offerings in catalogs, DOE determined that PAR38 is the most common lamp diameter and 60 W is at least twice as common as any other wattage. Further, DOE did not restrain the representative lamp units to 55 W but rather required that the wattage be less than the baseline. DOE found that the majority of product offerings on the market have wattages at or below 60 W. Thus, DOE finds that the baseline and more efficacious lamp units analyzed represent the most widely offered products on the market. Table VI.7 summarizes the performance characteristics of the more efficacious substitutes for IRLs. For further information see chapter 5 of the final rule TSD. Table VI.7—IRL Representative Lamps Representative product class Representative Lamps Lamp type Descriptor Wattage W Efficacy * lm/W Initial light output lm Lifetime hr Standard Spectrum, Voltage 2.5 Inches PAR38 PAR38 HIR Improved HIR 55 55 18.5 18.5 980 1,120 2,500 4,200 * Efficacy values are based on data from DOE's certification database. d. Max Tech When DOE proposes to adopt an amended standard for a type or class of covered product, it must determine the maximum improvement in energy efficiency or maximum reduction in energy use that is technologically feasible for such product. (42 U.S.C. 6295(p)(1)) Accordingly, in the engineering analysis, DOE determined the maximum technologically feasible (“max tech”) improvements in energy efficiency for IRLs using the design parameters for the most efficient products available on the market or in working prototypes. For IRLs, DOE presented one efficacy level (EL 1) for consideration in the NOPR analysis. Therefore, this level was also the max tech level identified for IRLs. DOE received several comments on the proposed max tech level. ASAP and CA IOUs commented that DOE made a mistake in not considering higher ELs for IRLs. ASAP stated that CA IOUs provided reasons for considering higher levels in response to the preliminary analysis and DOE dismissed the suggestions with a “grab bag” of unsubstantiated arguments for not considering the higher levels. (ASAP, Public Meeting Transcript, No. 49 at p. 17; CA IOUs, Public Meeting Transcript, No. 49 at p. 20) Further, CA IOUs commented that they do not think that DOE adequately considered alternative technology options they gave in response to the preliminary analysis for a more efficacious max tech. (CA IOUs, Public Meeting Transcript, No. 49 at p. 114) CA IOUs stated that they suggested more efficacious lamps and in not considering them, DOE has not complied with their statutory requirement to investigate max tech. (CA IOUs, Public Meeting Transcript, No. 49 at p. 110) CA IOUs continued that commercially available products were available in different lumen bins or that there were different lamp shapes from PAR38. CA IOUs noted that some of the data they had for support were compliance certification values and some were prototype products from the past or developed recently. (CA IOUs, Public Meeting Transcript, No. 49 at p. 110) DOE evaluated the more efficacious lamps proposed by stakeholders in response to the preliminary analysis. As discussed in the NOPR, DOE did not consider some of these lamps when evaluating the max tech level because they were not available with the same reflector shapes or input voltage as the IRLs covered by this rulemaking. 79 FR at 24111(April 29, 2014). In addition, as described in section VI.D.3.c, certification data indicates that some lamps are not performing at the high efficacies advertised in catalogs. Absent certification or independent test data, DOE is unable to verify high efficacy claims. Finally, although certain higher efficacy products have certification data confirming their performance above EL 1, they are not part of a full product line that would indicate that the technology incorporated in the lamps could be used across all lumen packages. Regarding prototype lamps, for the NOPR analysis, DOE contacted manufacturers producing high efficacy prototype IRLs and conducted independent testing of these lamps. The testing indicated that these lamps were more efficacious than the max tech level determined by DOE in this analysis. 42 DOE notes that the lamps tested were prototype lamps and were not manufactured during commercial scale production runs. The measured efficacy of the prototype lamps greatly exceeded the efficacy of commercially available lamps with similar lumen packages. DOE did not, however, have the necessary information to do a cost analysis to determine if an efficacy level based on these lamps would be economically justified. Therefore, in the NOPR phase DOE requested information on the incremental manufacturer production cost of a lamp that could achieve the efficacy of the prototype lamps compared to a lamp that complies with EL 1. DOE also sought information on the manufacturing costs including equipment and product conversion costs necessary to produce lamps at the efficacy of the prototype lamps. However, DOE did not receive any information to conduct a cost assessment of the higher efficacy prototypes and therefore, did not include them in this final rule analysis. 42 DOE independently verified efficacy values provided by the manufacturer. At the time of NOPR analysis, the manufacturer was still conducting lifetime testing. DOE did not receive any updates on lifetime testing of the prototype lamps at the time of the final rule analysis. CA IOUs stated that the efficacy standards proposed in the NOPR would not be a challenge and an efficacy standard of more than three times higher, as shown in appendix 5A of the NOPR TSD, would be possible and likely be cost effective. Most manufacturers already have the capability to meet the levels proposed in the NOPR, and the achievement of higher efficacies was proven through the testing of prototype lamps. CA IOUs commended DOE on its tests of prototyped products, but expressed confusion over why DOE did not develop pricing estimates for these products and create a corresponding EL. They also questioned why DOE had not used the comments on projected sale prices given during manufacturer interviews in their analysis. CA IOUs noted that a pricing estimate could also have been achieved by a teardown analysis of the prototype lamps compared with similar, commercially available components. Specifically, CA IOUs gave the example that lamps using high performance HIR burner are already commercially available in A-line and MR16 bulb shapes, selling for $3.49 and $6.90, respectively. Supported by these analyses, CA IOUs urged DOE to conduct a complete review of the higher efficacy prototype EL. (CA IOUs, No. 56 at p. 5) As noted in the NOPR, while DOE was able to test the efficacies of the prototype lamps, it had insufficient information to perform a cost analysis. 79 FR at 24111 (April 29, 2014). DOE did not find that a teardown analysis of the prototype lamps would be a feasible method to estimate costs. DOE would be unable to determine through teardowns whether the halogen burners used in various product offerings were the same because of the difficulty in analyzing the IR coating, specifically identifying the combinations of coatings applied. Without this knowledge, DOE could not distinguish the specific technology differences between one halogen burner and another and estimate costs accordingly. Expected retail prices of the prototype lamp were provided through comments and manufacturer interviews, but the information indicated that the prices of the higher efficacy products would be less than those of the lamps that comply with EL 1 and even the baseline. As these lamps utilize a more advanced IR coating than lamps currently available on the market, the manufacturer-provided cost was inconsistent with the available market information. Further, this manufacturer does not distribute covered IRLs in the U.S. market. Therefore, DOE was unable to estimate the price of the prototype lamp by comparing it to a similar lamp offered by the same manufacturer, which would have allowed DOE to isolate the change in price due to the more efficient coating. For these reasons, DOE concluded that it did not have the information needed to conduct a cost assessment of the higher efficacy prototype lamps and therefore, did not include them in this final rule analysis. e. Efficacy Levels After identifying more efficacious substitutes for each of the baseline lamps, in the NOPR, DOE developed ELs based on the consideration of several factors, including: (1) The design options associated with the specific lamps being studied; (2) the ability of lamps across wattages to comply with the standard level of a given product class; and (3) the max tech level. 79 FR at 24093 (April 29, 2014). For IRLs, DOE developed a continuous equation that specifies a minimum efficacy requirement across wattages and represents the potential efficacy a lamp can achieve using a particular design option. DOE observed an efficacy division among commercially available IRL products that corresponded to the design options utilized to increase lamp efficacy. Based on this efficacy division, DOE considered one EL in the NOPR analysis. Id. at 24113. DOE received a comment from NEMA regarding the EL presented for IRLs in the NOPR analysis. NEMA stated that energy conservation standards above the current IRL standards could not be economically justified. NEMA further stated that the 6.2P 0.27 level proposed in the NOPR is inappropriately set at the higher end of the normal distribution curve for performance. Following the CCE rules, if the average performance of the more efficacious lamps is 6.2P 0.27 , the standard should be set at 6.0P 0.27 . NEMA did note, however, for standard spectrum IRLs under 125 V, it would be possible to consistently produce lamps at a higher efficacy, up to 6.0P 0.27 from 5.9P 0.27 , for lamps between 60 W and 205 W. NEMA expressed their belief that only this subset of IRLs could reliably increase their efficacy, and only by that increment. NEMA doubted that this increase would generate significant energy savings on its own. (NEMA, No. 54 at pp. 21-22) DOE conducted an updated engineering analysis for the final rule and determined that EL 1 corresponded to an efficacy requirement of 6.2P 0.27 based on certification data. DOE notes that the statistics included in the compliance procedures are intended to ensure that manufacturers are reporting a value that approximates the population mean. Each tested lamp is not individually required to meet or exceed the standard level. Designing products such that their population mean or the performance of each individual lamp unit within the population exceeds DOE's standard level is not required and is done so at the discretion of individual manufacturers. Regarding an assessment of national energy savings for IRLs see section VII.B.3. Regarding DOE's conclusion as to whether a standard is economically justified, DOE weighs the benefits and burdens in section VII.C.3. For the final rule analysis, DOE again reviewed the most updated catalog and certification data available for covered IRLs. As in the NOPR analysis, DOE used the catalog data to identify all products on the market and ensure consideration of all available products in the analysis and assessed both catalog and certification efficacy values to identify efficacy levels. In the NOPR analysis, DOE had found there to be certification data for 51 percent of covered IRL products compliant with the July 2012 standards. For the final rule analysis, DOE found that updates to DOE's certification database resulted in certification data for 61 percent of covered IRL products. While this was an increase from the NOPR analysis, it still did not represent a comprehensive dataset on which to base an engineering analysis. Therefore, in this final rule analysis, DOE again used catalog data to identify all products on the market and ensure consideration of all available products in the analysis. DOE assessed both catalog and certification efficacy values to identify efficacy levels. Using certification data reported for the PAR38 2,500 hour HIR and 4,200 hour improved HIR representative lamps, DOE adjusted EL 1. As mentioned previously, DOE developed a continuous equation that specifies a minimum efficacy requirement across wattages for IRLs. The EL that DOE determined based on the representative lamps is a curve that represents a standard across all wattages. Table VI.8 presents the efficacy level for IRLs. See chapter 5 of the final rule TSD for additional information on how the engineering analysis was conducted. Table VI.8—Efficacy Levels for Standard Spectrum, Voltage 2.5 Inches IRLs Efficacy level Efficacy requirement lm/W EL 1 6.2P 0.27 P = rated wattage f. Scaling to Other Product Classes When more than one product class exists for a covered product, DOE identifies and selects representative product classes to analyze directly. Efficacy levels developed for these representative product classes are then scaled to products not analyzed directly. For IRLs, DOE analyzed directly standard spectrum lamps greater than 2.5 inches in diameter and with input voltages less than 125 V. The efficacy levels developed for this representative product class were then scaled to product classes not analyzed, using a scaling factor to adjust levels for smaller diameter lamps, lamps with higher input voltages, and modified spectrum lamps. DOE received several comments specific to the scaling factors applied to develop efficacy levels for the product classes analyzed directly. Diameters Less Than or Equal to 2.5 Inches In the NOPR analysis, DOE scaled from the EL developed for IRLs with diameters greater than 2.5 inches (hereafter “large diameter lamps”) to IRLs with diameters less than or equal to 2.5 inches (hereafter “small diameter lamps”). Based on catalog data, DOE determined the reduction in efficacy caused by the smaller lamp diameter to be approximately 12 percent. DOE also determined that the more efficient double-ended HIR burners could not fit into small diameter lamps without extending the reflector lens. Therefore, in the NOPR analysis, DOE applied an additional 3.5 percent reduction to account for the ability of small diameter lamps to utilize only less efficient single-ended HIR burners. CA IOUs noted that small diameter lamps are less efficacious than larger lamps and agreed with DOE's scaling factor as appropriate, except for the 3.5 percent to account for double-ended burners, as CA IOUs believed that small diameter lamps are capable of utilizing these burners. CA IOUs stated that DOE had not provided enough analysis on the potential issue that fitting double-ended burners in a small diameter lamp would change the physical shape of the lamp and thereby impact whether these lamps can fit in fixtures in which they are currently used. CA IOUs questioned if DOE had collected data on the various lengths of small diameter lamps on the market. CA IOUs noted that they have found R20 lamps with single-ended burners that range in length from 3.1 to 4.2 inches. They stated that the R20 lamp with a double-ended burner they submitted to DOE was 3.5 inches long, and therefore still in the typical R20 range. (CA IOUs, Public Meeting Transcript, No. 49 at pp. 124-126, 128-129) OSI commented that, in general, technologies used in PAR30 lamps cannot be used in PAR20 lamps. (OSI, Public Meeting Transcript, No. 49 at p. 127) OSI noted that luminaire manufacturers construct luminaires for the actual lamp length on the market, not to the ANSI specifications for the bulb shape. OSI clarified, therefore, that a lamp longer than what is otherwise on the market would not fit in luminaires, regardless of whether it still met the ANSI requirements for the bulb shape. (OSI, Public Meeting Transcript, No. 49 at pp. 128-129) GE agreed and added that a small increase in lamp length would not matter for certain luminaires, such as a track lighting fixture, but that DOE could not assume the new design would fit in all existing fixtures. (GE, Public Meeting Transcript, No. 49 at p. 125) OSI explained that fitting the lamp with the double-ended burner into the luminaire would not be the only problem, DOE should also consider the temperature limits that the double-ended burner might force the lamp to exceed. (OSI, Public Meeting Transcript, No. 49 at p. 127) NEMA commented that lamps need to be designed to match the physical shape of the luminaires in the market. (NEMA, No. 54 at p. 49) DOE must consider how the use of a design option affects product utility and whether a more efficacious product is an appropriate substitute for an existing less efficacious product. (42 U.S.C. 6295(o)(2)(B)(i)) DOE confirmed that a double-ended burner was present in the small diameter (PAR20) prototype lamp mentioned previously and also in a commercially available PAR20 lamp that is outside the scope of this rulemaking. However, manufacturers noted that fitting a double-ended burner into a small diameter lamp requires changes to the physical shape of the lamp, specifically requiring an extension of the reflector lens. (NEMA, no. 36 at p. 12; GE, Public Meeting Transcript, No. 49 at p. 125) While the modified lamp may still meet ANSI standards for a small diameter lamp such as a PAR20, it would be larger than PAR20 lamps sold in the past and those currently installed. Because the lamp shape would be different from the standard sizes of commercially available small diameter lamps, the modified lamp may not fit in existing structures. DOE conducted an analysis by comparing lengths of small diameter lamps to existing fixtures. The lengths of lamps with double-ended burners varied and DOE cannot state with certainty that these lengths will fit in all fixtures. Further, within the wattage range of lamps covered by this rulemaking (40 W or higher), heat dissipation in lamps with a smaller envelope using a double-ended burner could also become an issue. Additionally, manufacturer feedback indicated that even if the double-ended burner could fit into a small diameter lamp, it would be difficult to place the burner/filament in the optimal position such that the benefits in efficacy could be realized. Therefore, in this final rule DOE continued to apply an additional 3.5 percent reduction factor when scaling efficacies of large diameter to small diameter lamps to account for the ability of small diameter lamps to utilize only single-ended burners. Operating Voltages Greater Than or Equal to 125 Volts In the NOPR analysis, DOE scaled from IRLs with voltages less than 125 V to IRLs with voltages greater than or equal to 125 V. DOE developed a scaling factor that would require 130 V lamps operating at 120 V 43 to use the same technology and possess the same general performance characteristics as 120 V lamps operating at 120 V. DOE found that while there may be a slight decrease in efficacy, the lifetime of a 130 V lamp is doubled when it is operated at 120 V, giving it an advantage over 120 V lamps. Using the Illuminating Engineering Society of North America (IESNA) Lighting Handbook equations that relate lifetime, lumens, and wattage to voltage of incandescent lamps, DOE determined that a 15 percent scaling factor was necessary. 43 While a 130 V lamp is typically operated at 120 V, DOE test procedures require that lamps rated at 130 V be tested at 130 V. NEMA commented that in the 2009 Lamps Rule, DOE set a level for 130 V lamps which was approximately 15 percent higher than achievable with the maximum available technology. NEMA argued that, as the efficacy of 130 V lamps is actually slightly lower than 120 V lamps, the only way to achieve such efficacy levels is to greatly shorten lamp life to less than 500 hours even if a 130 V lamp was operated on 120 V. If the consumer had a high voltage problem and was operating near 130 V, the lamp life would be shortened to a few hundred hours. In both scenarios, very short life products are unmarketable to the consumer, especially for 130 V consumers who were primarily buying the lamp due to its long life on 120 V operation during voltage fluctuations. Giving the example of the 130 V IRL, NEMA commented that DOE is incorrect in its assumptions that no utility would be lost with higher IRL standards. Specifically, NEMA explained that 130 V IRLs were able to operate under elevated voltage spike and transient conditions, and are now eliminated from the market due to the 2009 Lamps Rule standards. (NEMA, no. 54 at p. 48) Philips commented that the scaling factor used for any new 130 V lamp standards would not matter as the lamp is already out of the market. (Philips, Public Meeting Transcript, No. 49 at p. 123) GE commented that the max tech for 120 V and 130 V lamps are almost identical, so the 15 percent scaling factor used to scale between the two lamps in the 2009 Lamps Rule is responsible for eliminating 130 V lamps from the marketplace, along with its utility. (GE, Public Meeting Transcript, No. 49 at p. 123) DOE has not found evidence that more efficacious 130 V IRLs are not technologically feasible or practicable to manufacture. DOE research indicates that the basic structure, components, and operating requirements of these lamps do not prevent the application of design options considered in the engineering analysis to achieve EL 1. Therefore, in this final rule analysis, DOE continued to determine a higher efficacy level for these lamp types. Further, DOE remains concerned, that the operation of 130 V lamps at 120 V has the potential to significantly affect energy savings. DOE's research has shown that 130 V lamps are usually operated by consumers at 120 V rather than on a higher voltage line. This could incentivize manufacturers to design a less efficient and less expensive 130 V lamp that would meet standards when tested at 130 V. Because they would be cheaper, there could be a market migration to 130 V lamps and due to the lower lumen output when 130 V lamps are operated at 120 V, consumers may purchase more 130 V lamps, resulting in increased energy consumption. DOE's research indicates that operating 130 V lamps at 120 V increases lifetime and lowers efficacy compared to operating these lamps at 130 V. Therefore, to develop an appropriate scaling factor, DOE determined the efficacy of 130 V lamps operated at 120 V if their additional lifetime over that of 120 V lamps were instead used to increase their efficacy. DOE found this increase in efficacy to be 15 percent. Therefore in this final rule analysis, DOE is using a scaling factor of a 15 percent efficacy increase from an IRL with voltages less than 125 V to voltages greater than or equal to 125 V. Modified Spectrum In the NOPR analysis, DOE established ELs for modified spectrum IRLs by scaling from the ELs developed for the standard spectrum product class. DOE determined that a reduction of 15 percent from the standard spectrum ELs would be appropriate for modified spectrum IRLs. EEOs cited a 2009 study by Ecos Consulting which found a 9-11 percent light loss associated with IRL modified spectrum lenses, and recommended either eliminating the allowance altogether or reducing it to 10 percent. (EEOs, No. 55 at p. 7) Regarding the use of a 15 percent scaling factor from standard spectrum to modified spectrum IRLs, DOE based this determination on both its understanding of the differences in characteristics and performance of these two lamp types. In the 2009 Lamps Rule, DOE assessed the efficacy differences between standard and modified spectrum IRLs by measuring the efficacies of commercially available standard and modified spectrum lamps. 74 FR 34080 (July 14, 2009). In that analysis, DOE correlated the measured color point data of the lamps with lamp light output reduction and lamp spectral power distribution. By analyzing the data, DOE established that a reduction of 15 percent from the standard spectrum to modified spectrum lamps was necessary. Using the available data for standards-compliant modified spectrum lamps on the market, DOE compared the efficacies of these two lamps with standard spectrum lamps with the same wattage and lifetime by the same manufacturer, and confirmed a 15 percent reduction in efficacy from a modified spectrum lamp to a standard spectrum lamp. Therefore, DOE maintained a 15 percent efficacy reduction from a standard spectrum IRL to a modified spectrum IRL for this final rule. g. Xenon DOE identified higher efficiency inert fill gas as a design option for improving lamp efficacy of IRLs. Specifically, xenon, due to its low thermal conductivity, can greatly increase lamp efficacy and is utilized in most covered standards-compliant IRLs. NEMA commented that the scarcity of xenon makes it questionable that IRL products will be able to comply with the proposed standards just by adding more xenon to the lamp burners. NEMA stated that due to a xenon shortage last year manufacturers had to reduce the use of xenon. NEMA explained that the remaining efficacy margin under current standards allows continued production of IRLs during xenon shortages. Further, NEMA noted that the big xenon producing companies have not expanded their production capacity as much and there is high demand and limited production capacity for this gas. (NEMA, No. 54 at p. 35) NEMA remarked that DOE's xenon price analysis ignores xenon shortages. (NEMA, No. 54 at p. 11) Further, NEMA stated the current high cost of xenon is at 13 Euros per liter compared to its previously low price in early 2013. NEMA predicted that xenon prices would not drop again and instead continue to increase with the increased number of incandescent A-line replacement lamps (which also utilize xenon). (NEMA, No. 54 at p. 35) NEMA warned that manufacturers are at risk of not being able to make compliant lamps consistently due to the availability of xenon for IRLs, and if are unable to do so, they will stop making them, as they did with the 130 V IRLs. (NEMA, No. 54 at pp. 13-14) NEMA reported that a member's global buyer for noble gases had reported that xenon availability is at a minimum. NEMA concluded that the EL should be reduced due to the unavailability of xenon and noted that lighting legislation hugely affects the supply and demand of xenon. (NEMA, No. 54 at p. 35) DOE acknowledges that xenon supply and prices are important factors for IRLs. Therefore, in the NOPR analysis DOE conducted a market assessment of xenon supply, demand, and prices as well as LCC and NIA sensitivities to determine the impact of increased end user lamp prices due to increases in the price of xenon. DOE updated this market and price assessment as well as the sensitivities for the final rule analysis. Based on this research, DOE determined that even if there are short term shortages of xenon, the long term supply of xenon is stable due to its availability in the air. Thus, supply could be increased to meet a continued increase in demand. DOE acknowledges that the supply of xenon cannot be quickly altered in the short term, and therefore conducted a sensitivity analysis to determine the impact of an increased price of xenon. In the final rule analysis, using NEMA's estimation of the current price of xenon, DOE updated the xenon price utilized in the LCC sensitivity analysis from $10 per liter to $18 per liter. Based on the results of this analysis, DOE determined that positive LCC savings could still be achieved at EL 1 with higher xenon prices. Additionally, in the NIA, DOE performed an alternative analysis in which the price of xenon is assumed to increase by a factor of ten in the near future and remain at these elevated levels throughout the analysis period. The impacts of the modeled xenon price increase on the NES and NPV of this rulemaking were minimal. See appendix 7C of the final rule TSD for complete details on the xenon price sensitivity conducted in the LCC, and chapter 12 of this final rule TSD for details on the xenon price sensitivity conducted in the NIA. h. Proprietary Technology In response to the EL (and max tech) proposed for IRLs in the NOPR, DOE received several comments regarding proprietary technology. 79 FR at 24111 (April 29, 2014). NEMA stated that processes for silver, the best higher efficiency reflector coating, are patent-protected intellectual property (IP). (NEMA, No. 54 at p. 21) While DOE had determined in the 2009 Lamps Rule that the silver reflector was patented technology, DOE research indicated that there were alternate pathways to achieve this level, such as filament redesign to achieve higher temperature operation (thus reducing the lifetime), non-proprietary higher efficiency reflectors, and a higher efficiency IR coating. 74 FR 34080, 34133 (July 14, 2009). For this rulemaking, in interviews conducted in the preliminary analysis, manufacturers indicated that there were no specific patent or intellectual property barriers to obtaining commercially available IRL technologies. Further, for the NOPR analysis, DOE confirmed during interviews that proprietary technology is not a barrier to achieving the proposed max tech level. Therefore, DOE has concluded that several manufacturers have found means of designing more efficacious IRLs that are commercially available, such as through the use of IR glass coatings and higher efficiency reflector coatings that do not use proprietary technology. Hence, the EL for IRLs in this final rule is based on a commercially available improved HIR lamp that does not require proprietary technology to achieve its efficacy. Therefore, DOE has determined that this level can be achieved without the use of proprietary technology. E. Product Pricing Determination Typically, DOE develops manufacturer selling prices (MSPs) for covered products and applies markups to create end-user prices to use as inputs to the LCC analysis and NIA. Because GSFLs and IRLs are difficult to reverse-engineer ( i.e., not easily disassembled), DOE did not use this approach to derive end-user prices for the lamps covered in this rulemaking. In the NOPR analysis, DOE gathered publicly available lamp pricing data after the compliance date of the July 2012 standards. 79 FR at 24116 (April 29, 2014). Based on feedback from manufacturer interviews, DOE determined that GSFLs and IRLs are sold through three main channels (state procurement; large distributors, including do-it-yourself (DIY) stores [ i.e., Lowe's and Home Depot]; and Internet retailers). Using these main channels and the pricing data, DOE developed three different end-user prices as representative of a range of publicly available prices: low, based on the state procurement channel; medium, based on large distributors and DIY stores; and high, based on Internet retailers. DOE then developed an end-user price weighted by distribution channel. Using manufacturer feedback in interviews, DOE determined an aggregated percentage of shipments that go through each of the main channels for GSFLs and IRLs. The large distributors and DIY stores channel was estimated at 85 percent, the state procurement channel at 10 percent, and the Internet retail channel at 5 percent. DOE then applied these percentages respectively to the average medium price determined for large distributor and DIY stores, the average low price determined for state procurement contracts, and the average high price determined for Internet retailers. The sum of these weighted prices was used as the average consumer price for GSFLs and IRLs in the main LCC analysis and NIA. DOE continued to utilize the low prices and high prices in a sensitivity analysis in the LCC analysis. DOE received several comments on the pricing analysis. GE remarked that the pricing methodology presented in the NOPR is a reasonable approach. (GE, Public Meeting Transcript, No. 49 at pp. 130-131) CA IOUs agreed that the pricing methodology is appropriate for GSFLs but not for IRLs, as the latter is predominantly purchased through retail channels for homes and small businesses instead of through distributors or state procurements. (CA IOUs, Public Meeting Transcript, No. 49 at p. 131; NEEA, Public Meeting Transcript, No. 49 at pp. 131-132) DOE's assessment of the GSFL and IRL markets indicated that there are three main distribution channels. Of these three, DOE determined that the majority of volume goes through the large distributors and DIY stores and assigned it an 80 percent weighting. Because this channel includes stores such as Home Depot and Lowes in addition to distributors, it encompasses channels through which residential and small business consumers are more likely to make their purchases. Additionally, DOE determined that while the volume may be low, IRLs are included in state procurement contracts; therefore, DOE included them as a distribution channel and assigned them a low weighting. In the final rule analysis, DOE used the same methodology as described for the NOPR analysis. For the final rule, DOE scaled the prices from 2012$ to 2013$ in the LCC analysis and NIA, using the ratio of the 2013 consumer price index (CPI) and 2012 CPI multiplied by the 2012$ price. See chapter 7 of the final rule TSD for further information on the pricing analysis. F. Energy Use For the energy-use analysis, DOE estimated the energy use of lamps in the field ( i.e., as they are actually used by consumers). The energy-use analysis provided the basis for other DOE analyses, particularly assessments of the energy savings and the savings in consumer operating costs that could result from DOE's adoption of amended standard levels. 1. Operating Hours In the NOPR, to develop annual energy-use estimates, DOE multiplied annual usage (in hours per year) by the lamp power (in watts) for IRLs and the lamp-and-ballast system input power (in watts) for GSFLs. Id. at 24117. DOE characterized representative lamp or lamp-and-ballast systems in the engineering analysis (see section VI.D). To characterize the country's average use of lamps for a typical year, DOE developed annual operating hour distributions by sector, using data published in the 2010 U.S. Lighting Market Characterization report (2010 LMC), 44 the Commercial Building Energy Consumption Survey (CBECS), 45 the Manufacturer Energy Consumption Survey (MECS), 46 and the Residential Energy Consumption Survey (RECS). 47 Id. at 24118. DOE did not receive any comments on this subject and maintained this approach for determining operating hours for this final rule. DOE updated the MECS data to 2010 data. 48 44 U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy. Energy Conservation Program for Consumer Products: 2010 U.S. Lighting Market Characterization. 2012. Washington, DC. http://apps1.eere.energy.gov/buildings/publications/pdfs/ssl/2010-lmc-final-jan-2012.pdf . 45 U.S. Department of Energy, Energy Information Administration. Commercial Building Energy Consumption Survey: Micro-level data, file 2 Building Activities, Special Measures of Size, and Multi-building Facilities. 2003. Washington, DC. www.eia.gov/consumption/commercial/data/2003/index.cfm?view=microdata . 46 U.S. Department of Energy, Energy Information Administration. Manufacturing Energy Consumption Survey, Table 9.1: Enclosed Floorspace and Number of Establishment Buildings. 2006. Washington, DC. www.eia.gov/consumption/manufacturing/data/2006/xls/Table9_1.xlsl . 47 U.S. Department of Energy, Energy Information Administration. RECS Public Use Microdata files. 2009. Washington, DC. www.eia.gov/consumption/residential/data/2009 . 48 U.S. Department of Energy, Energy Information Administration. Manufacturing Energy Consumption Survey, Table 9.1: Enclosed Floorspace and Number of Establishment Buildings. 2010. Washington, DC. http://www.eia.gov/consumption/manufacturing/data/2010/ . 2. Lighting Controls DOE evaluated the impact of lighting controls on the energy use of GSFLs and IRLs. Most lighting controls have one of two impacts: reducing operating wattage or reducing operating hours. DOE refers to these two groups of controls as dimmers or light sensors, and occupancy sensors, respectively. The calculated operating hours used in the reference case already account for the use of occupancy sensors because the 2010 LMC operating hour data are based on building surveys and metering data. In the NOPR analysis, DOE accounted for the use of dimmers or light sensors by modeling GSFLs and IRLs on dimmers and developing associated energy-use results for both types of covered lamps as a sensitivity analysis. See appendix 6A of the final rule TSD for further information. DOE received an overall comment regarding its approach to lighting controls for GSFLs and IRLs. Westinghouse suggested that DOE separate dimming percentages between IRLs and GSFLs because in the commercial sector, GSFLs are generally dimmed more often and IRLs are on simple switch circuits, and in the residential sector, IRLs are frequently dimmed and GSFLs are almost never dimmed. (Westinghouse, Public Meeting Transcript, No. 49 at p. 142) DOE agrees with Westinghouse that GSFLs and IRLs are used differently and that usage varies depending on the market sector. DOE calculated separate dimming percentages for GSFL and IRL and for each market sector in which they are present. The following sections discuss these percentages in more detail. a. General Service Fluorescent Lamp Lighting Controls In the NOPR, DOE assessed the impacts of dimmers on GSFLs by determining the reduction in system lumen output and system input power as a result of using dimming ballasts. Id. Based on product research and manufacturer feedback, DOE analyzed dimming scenarios for 2-lamp 4-foot MBP systems, 4-lamp 4-foot MBP systems, 2-lamp 4-foot T5 MiniBP SO systems, and 2-lamp 4-foot T5 MiniBP HO systems operating in the commercial and industrial sectors. DOE did not analyze dimmable GSFL systems in the residential sector because DOE believes these systems are rarely dimmed. DOE determined that the average reduction of system lumen output for GSFLs was 33 percent, based on research and manufacturer input. DOE did not receive any comments on this approach to analyzing GSFL dimming and therefore maintained this approach in the final rule. b. Incandescent Reflector Lamp Lighting Controls In the NOPR analysis, DOE research indicated that, on average, consumers using dimmers reduce lamp wattage by 20 percent, corresponding to a lumen reduction of 25 percent and an increase in lifetime by a factor of 3.94. Id. at 24119. DOE analyzed two scenarios in LCC sensitivity analyses: (1) The light output of the baseline lamp was reduced by 25 percent and more efficient lamps were dimmed to the same light output and (2) the characteristics of the lamps analyzed represented the distribution of dimmers across the nation. For the second scenario, DOE used the 2010 LMC to determine that 29 percent of halogen IRLs operate on dimmers or light sensors in the residential sector and 5 percent of halogen IRLs operate on dimmers in the commercial sector and used these percentages to calculate weighted-average performance characteristics. DOE received several comments on its approach to analyzing IRL dimming. Philips disagreed with only 5 percent dimming in the commercial sector, stating that given the 30-year analysis period, this percentage is understated. Philips specifically referenced California's new requirements for dimming in all renovations and new buildings and American Society of Heating, Refrigerating and Air Conditioning Engineers' (ASHRAE's) support of these measures driving increased dimming prevalence across the country. (Philips, Public Meeting Transcript, No. 49 at pp. 137-138) NEEA agreed with Philips that 5 percent dimming for the commercial sector is too low and added that the 29 percent dimming DOE used for the residential sector is far too high. Westinghouse also questioned the 29 percent dimming estimate for the residential sector noting that if the percentage was for residential IRLs only, it may be representative but was too high for GSFLs as homeowners tend not to dim those lamps. (Westinghouse, Public Meeting Transcript, No. 49 at p. 141) To update DOE's numbers, NEEA suggested a report they had completed on a 13-month residential metering study that studied 2,200 sensors in 103 houses by fixture type, technology, and room. NEEA explained that their data include the wattage of the lamp, the controls on the socket, the number of lamps per fixture, the number of lamps per switch, the type of fixture, and room in which it is located. NEEA suggested that the data contain enough samples to characterize residential lighting in the four states included. NEEA also mentioned a census they conducted across 1,400 houses that gathered the same data, which can then be applied across the entire region. NEEA sent a summary of the data to DOE for immediate use, and stated that the rest of the data would be available for download on NEEA's and NEMA's Web sites. (NEEA, Public Meeting Transcript, No. 49 at pp.138, 140) Regarding the accuracy of the percentages, the 29 percent of lamps on dimmers was applied to IRLs for the residential sector analysis and the 5 percent of lamps on dimmers was applied to IRLs for the commercial sector. As noted, these values are based on the 2010 LMC and DOE believes are an accurate representation of the percentage of IRLs on dimmers in each sector. Regarding the potential increase in percentage, while the percentage of occupancy sensors may increase, DOE assumed that the percentage of IRLs on dimmers will remain relatively constant because dimmers provide utility for consumers beyond energy savings. DOE also reviewed NEEA's data, but ultimately maintained the methodology described above because NEEA's data is limited to the Northwest region while the 2010 LMC lighting controls data is based several building audit studies, spanning several geographic regions and years of data collection, which was then scaled based an inventory of lighting at the national level. Therefore, for this final rule, DOE maintained its methodology for analyzing dimming for IRLs. G. Life-Cycle Cost Analysis and Payback Period Analysis In the NOPR analysis, DOE conducted LCC and PBP analyses to evaluate the economic impacts of proposed energy conservation standards for GSFLs and IRLs on individual consumers. 79 FR at 24119 (April 29, 2014). The LCC is the total consumer expense over the life of a product, consisting of purchase, installation, and operating costs (operating costs are expenses for energy use, maintenance, and repair). To compute the operating costs, DOE discounted future operating costs to the time of purchase and summed them over the lifetime of the product. The PBP is the estimated amount of time (in years) it takes consumers to recover the increased purchase cost (including installation) of a more efficient product through lower operating costs. DOE calculates the PBP by dividing the change in purchase cost (normally higher) by the change in average annual operating cost (normally lower) that results from the higher efficiency standard. DOE used a “simple” PBP for this rulemaking, which does not take into account other changes in operating expenses over time or the time value of money. For any given efficacy or energy-use level, DOE measures the PBP and the change in LCC relative to an estimated base-case product efficacy or energy-use level. The base-case estimate reflects the market without new or amended mandatory energy conservation standards, including the market for products that exceed the current energy conservation standards. Inputs to the calculation of total installed cost include the cost of the product—which includes consumer product price and sales taxes—and installation costs. Inputs to the calculation of operating expenses include annual energy consumption, energy prices and price projections, repair and maintenance costs, product lifetimes, discount rates, and the year in which compliance with proposed standards would be required. DOE also incorporated a residual value calculation to account for any remaining lifetime of lamps at the end of the analysis period. The residual value is an estimate of the product's value to the consumer at the end of the LCC analysis period. In addition, this residual value recognizes that a lamp may continue to function beyond the end of the analysis period. DOE calculates the residual value by linearly prorating the product's initial cost consistent with the methodology described in the Life-Cycle Costing Manual for the Federal Energy Management Program. 49 49 Fuller, Sieglinde K. and Stephen R. Peterson. National Institute of Standards and Technology Handbook 135 (1996 Edition); Life-Cycle Costing Manual for the Federal Energy Management Program. (Prepared for U. S. Department of Energy, Federal Energy Management Program, Office of the Assistant Secretary for Conservation and Renewable Energy.) February 1996. NIST: Gaithersburg, MD. Available at: http://fire.nist.gov/bfrlpubs/build96/PDF/b96121.pdf . As inputs to the PBP analysis, DOE used the total installed cost of the product to the consumer for each efficacy level, as well as the first-year annual operating costs for each efficacy level. The calculation requires the same inputs as the LCC, except for energy price trends and discount rates; only energy prices for the year in which compliance with any new standard would be required (2018, in this case) are needed. To account for uncertainty and variability, DOE created value distributions for inputs as appropriate, including operating hours, electricity prices, discount rates and sales tax rates, and disposal costs. For example, DOE created a probability distribution of annual energy consumption in its energy-use analysis, based in part on a range of annual operating hours. The operating hour distributions capture variation across census divisions and large states, building types, and lamp or lamp-and-ballast systems for three sectors (commercial, industrial, and residential). DOE conducted the LCC and PBP analyses using a spreadsheet model developed in Microsoft Excel. When combined with Crystal Ball (a commercially available software program), the spreadsheet model generates a Monte Carlo simulation 50 to perform the analysis by incorporating uncertainty and variability considerations. The Monte Carlo simulations randomly sample input values from the probability distributions and lamp user samples, performing 1,000 iterations per simulation run. 50 Monte Carlo simulations model uncertainty by utilizing probability distributions instead of single values for certain inputs and variables. DOE did not receive any comments on the general methodology regarding the LCC and PBP assessment. In the final rule analysis, DOE generally maintained the methodology from the NOPR analysis, with a few changes. Table VI.9 summarizes the approach and data DOE used to derive inputs to the LCC and PBP calculations for the NOPR, as well as the changes made for this final rule. The final rule TSD chapter 8 and its appendices provide details on the spreadsheet model and of all the inputs to the LCC and PBP analyses. The final rule TSD appendix 8B provides results of the sensitivity analyses conducted using Monte Carlo simulation. The subsections that follow discuss the comments regarding each initial input and any changes made to them in the final rule analysis. Table VI.9—Summary of Inputs and Key Assumptions in the LCC and PBP Analyses * Inputs NOPR TSD Changes for the Final Rule Consumer Product Price Applied discounts to manufacturer catalog (“blue book”) pricing in order to represent low, medium, and high prices for all lamp categories. Used a weighted-average price in the main analysis based on the percentage of shipments that go through the distribution channel having low, medium, or high prices No change. Sales Tax Derived sector-specific average tax values based on the probability of purchasing a GSFL or IRL in each census division and large state from data provided by the Sales Tax Clearinghouse No change. Installation Cost Derived costs using the RS Means Electrical Cost Data and U.S. Bureau of Labor Statistics to obtain average labor times for installation, as well as labor rates for electricians and helpers based on wage rates, benefits, and training costs No change. Annual Operating Hours Determined operating hours by associating operating hours for a GSFL or IRL in a specific building type using the average lamps per square foot and the percentage of lamps of each type with regional distributions of various building types using the 2010 LMC and EIA's 2003 CBECS, 2009 RECS, and 2006 MECS Updated MECS data to 2010 data. Product Energy Consumption Rate Determined lamp input power for IRLs based on published manufacturer literature. Calculated system input power for GSFLs. Used lamp arc power, catalog BF, number of lamps per system, and tested BLE (when possible) to calculate system input power for each unique lamp-and-ballast combination No change. Electricity Prices Electricity: Based on EIA's Form 861 data for 2011 scaled to 2012 (the dollar year of the analysis) using AEO 2013 and the consumer price index Variability: Weighted-average national price for each sector and lamp type calculated from the probability of a GSFL or IRL purchased in each census division or large state Electricity: Based on EIA's Form 861 data for 2012 scaled to 2013 (the dollar year of the analysis) using AEO 2014 and the consumer price index. Variability: No change. Electricity Price Projections Forecasted using AEO 2013 Forecasted using AEO 2014. Replacement and Disposal Costs Commercial and industrial: Included labor and materials costs for lamp replacement, and disposal costs for failed GSFLs Residential: Included only materials cost for lamps, with no lamp disposal costs No change. Product Lifetime Ballast lifetime based on average ballast life of 49,054 from 2011 Ballast Rule. Lamp lifetime based on published manufacturer literature where available No change. Discount Rates Commercial and industrial: Derived discount rates using the cost of capital of publicly traded firms in the sectors that purchase lamps, based on data in the 2003 CBECS, Damodaran Online, 51 Office of Management and Budget (OMB) Circular No. A-94, 52 and state and local bond interest rates. 53 Residential: Derived discount rates using the finance cost of raising funds to purchase lamps either through the financial cost of any debt incurred to purchase product or the opportunity cost of any equity used to purchase equipment, based on the Federal Reserve's Survey of Consumer Finances data 54 for 1989, 1992, 1995, 1998, 2001, 2004, 2007, and 2010 No change. Analysis Period IRLs and commercial and industrial GSFLs: Based on the baseline lamp life in hours divided by the annual operating hours of that lamp Residential GSFLs lamp failure: Based on the lifetime of the ballast Residential GSFLs ballast failure and new construction/renovation: Based on the lifetime of the ballast No change. Compliance Date of Standards 2017 2018. Lamp Purchase Events Assessed three events: lamp failure, ballast failure (GSFLs only), and new construction/renovation No change. * References for the data sources mentioned in this table are provided in the sections following the table or in chapter 8 of the final rule TSD. 1. Consumer Product Price In the NOPR, DOE used a variety of sources to develop consumer product prices, including lamp prices from manufacturers' blue books, state procurement contracts, large electrical supply distributors, hardware and home improvement stores, Internet retailers, and other similar sources. 79 FR at 24122 (April 29, 2014). DOE then developed low, medium, and high prices based on its findings. DOE calculated a weighted-average price based on the percentage of shipments going through the low discount (high price), medium discount (medium price), and high discount (low price) distribution channels. Because fluorescent lamps operate on a ballast in practice, DOE analyzed lamp-and-ballast systems in the engineering analysis and therefore also determined end-user prices for ballasts. DOE utilized the end-user prices from the 2011 Ballast Rule converted to 2012$ to develop prices for replacement ballasts. In the final analysis, DOE maintained the same methodology, but converted the prices to 2013$ instead of 2012$. For further discussion regarding end-user prices, see section VI.E. 51 Damodaran Online, The Data Page: Historical Returns on Stocks, Bonds, and Bills—United States (2014). Available at: http://pages.stern.nyu.edu/~adamodar . 52 U.S. Office of Management and Budget, Circular No. A-94 Appendix C (2013). Available at: www.whitehouse.gov/omb/circulars_a094/a94_appx-c . 53 Federal Reserve Board, Statistics: Releases and Historical Data—Selected Interest Rates—State and Local Bonds (2014). Available at: www.federalreserve.gov/datadownload/Build.aspx?rel=H15. 54 The Federal Reserve Board, Survey of Consumer Finances. Available at: www.federalreserve.gov/PUBS/oss/oss2/scfindex.html . On February 22, 2011, DOE published a notice of data availability (NODA; 76 FR 9696) stating that DOE may consider whether its regulatory analysis would be improved by addressing product price trends. Using three decades of historic data on the quantities and values of domestic shipments of fluorescent lamps and PAR lamps reported by the U.S. Census Bureau in their Current Industrial Reports, DOE examined product prices trends, fitting the data to an experience curve, as described in chapter 11 of the NOPR TSD. DOE found that the data are well-represented by the experience curve and consistent with price learning theory. Therefore, consistent with the NODA, DOE incorporated price trends into this rulemaking. In the LCC analysis, DOE adjusts prices for each year using the experience curve. 2. Sales Tax In the NOPR analysis, DOE obtained state and local sales tax data from the Sales Tax Clearinghouse. Id. The data represented weighted averages that included county and city rates. DOE used the data to calculate a weighted-average sales tax based on the probability of a GSFL or IRL purchased for a particular building type in each census division and large state (New York, California, Texas, and Florida). DOE used information in the 2010 LMC, such as the number of lamps per square feet and the percentage of lamps within a building that are linear fluorescent or halogen. In combination with this information, DOE used CBECS, MECS, and RECS, respectively, for commercial, industrial, and residential building data on building types in each census division and large state. DOE did not receive any feedback on its approach to determining sales tax. In this final rule analysis, DOE used the same methodology with updated sales tax data from the Sales Tax Clearinghouse. 55 55 Sales Tax Clearinghouse. Aggregate State Tax Rates. (2014). Available at: http://thestc.com/STrates.stm . 3. Installation Cost The installation cost is the total cost to the consumer to install the product, excluding the consumer product price. Installation costs include labor, overhead, and any miscellaneous materials and parts. As detailed in the NOPR analysis, DOE considered the total installed cost of a lamp or lamp-and-ballast system to be the consumer product price (including sales taxes) plus the installation cost. For the commercial and industrial sectors, DOE assumed consumers must pay to install the lamp or lamp-and-ballast system and assumed the installation cost was the product of the average labor rate and the time needed to install a lamp or lamp and ballast. In the residential sector, DOE assumed that consumers must pay for only the installation of a lamp-and-ballast system. Therefore, the installation cost assumed was the product of the average labor rate and the time needed to install the lamp-and-ballast system. DOE assumed that residential consumers would install their own replacement lamps and, thus, would incur no installation cost when replacing their own lamp. Id. DOE did not receive any comments on the installation cost. DOE retained this methodology for determining installation costs in this final rule analysis. 4. Annual Energy Use As discussed in section VI.F, DOE estimated the annual energy use of representative lamp or lamp-and-ballast systems by multiplying input power and sector operating hours. For further discussion regarding annual energy-use calculations, see section VI.F.1. DOE maintained its methodology of determining annual energy-use inputs in this final rule analysis. 5. Product Energy Consumption Rate As in the NOPR analysis, DOE determined lamp input power for IRLs based on published manufacturer literature. 79 FR at 24123 (April 29, 2014). For GSFLs, DOE calculated the system input power using published manufacturer literature and test data. DOE used lamp arc power, catalog BF, number of lamps per system, and tested BLE (when possible) to calculate system input power for each unique lamp-and-ballast combination. The rated system input power was then multiplied by the annual operating hours of the system to determine the annual energy consumption. DOE did not receive any comments on energy consumption rate calculations. DOE retained this methodology for determining energy consumption in this final rule analysis. 6. Electricity Prices For the LCC and PBP in the NOPR analysis, DOE derived average energy prices for 13 U.S. geographic areas consisting of the nine census divisions, with four large states (New York, Florida, Texas, and California) treated separately. Id. For census divisions containing one of these large states, DOE calculated the regional average, excluding the data for the large state. The derivation of prices was based on data from EIA Form 861, “Annual Electric Power Industry Database.” DOE calculated weighted-average electricity prices based on the probability of a GSFL or IRL purchased in each census division and large state. The same methodology as noted previously for determining average weighted sales tax was used to calculate average weighted electricity prices. DOE used data published in the 2010 LMC in combination with CBECS, MECS, and RECS to determine an average weighted electricity price based on the probability of a GSFL or IRL in a particular building type in each census division and large state. DOE did not receive any comments on this approach. DOE retained this methodology for determining electricity prices in this final rule analysis. 7. Electricity Price Projections To estimate the trends in energy prices for the NOPR analysis, DOE used the price forecasts in AEO 2013. Id. To arrive at prices in future years, DOE multiplied current average prices by the forecast of annual average price changes in AEO 2013. In this final rule analysis, DOE used the same approach, but updated its energy price forecasts using AEO 2014. In addition, the spreadsheet tools that DOE used to conduct the LCC and PBP analyses allow users to select price forecasts from AEO' s low-growth, high-growth, and reference case scenarios to estimate the sensitivity of the LCC and PBP to different energy price forecasts. DOE did not receive any comments on this approach and maintained this methodology for determining electricity price projections in the final rule analysis. 8. Replacement and Disposal Costs In its NOP [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%3A2015-00317. Public record. Not legal advice.