Review of Methods Used by the U.S. Department of Energy in Setting Appliance and Equipment Standards (2021) / Chapter Skim
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2 Framework for Developing Regulations
2 Framework for Developing Regulations
Pages 13-37
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From page 13... ...
first gave the newly created DOE the authority to set mandatory minimum energy performance standards, which would preempt State standards. As Table 2.1 and Figure 2.1 show, Congress has amended the laws governing energy conservation standards numerous times since then.
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P.L. 94-163 December 22, 1975 National Energy Conservation Policy Act P.L.
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) In addition to these criteria, the EPCA provides 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, and as applicable, water, savings during the first year that the consumer will receive as a result of the standard" 42 U.S.C.
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From page 16... ...
, 2012, "Notice of Proposed Rulemaking and Public Meeting: Energy Conservation Program: Energy Conservation Standards for Distribution Transformers," Federal Register 77: 72827381, February 10. 5 DOE, 2012, "Final Rule: Energy Conservation Program: Energy Conservation Standards for Distribution Transformers," Federal Register 78: 23336-23436, April 18.
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, 2021, "Energy Conservation Program for Appliance Standards: Procedures, Interpretations, and Policies for Consideration in New or Revised Energy Conservation Standards and Test Procedures for Consumer Products and Commercial/Industrial Equipment," Federal Register 86(68)
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10 DOE, 1983, "Energy Conservation Program for Consumer Products; Final Rule for Refrigerators and Refrigerator-Freezers, Freezers, Water Heaters, Room Air Conditioners, Furnaces and Central Air Conditioners," Federal Register 48: 39376-39409.
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From page 19... ...
states as follows: "in choosing among alternative regulatory approaches, agencies should select those approaches that maximize net benefits (including potential economic, environmental, public health and safety, and other advantages; distributive impacts; and equity) , unless a statute requires another regulatory approach." 12 OMB refers to this category of significant regulations as "economically significant." 19
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From page 20... ...
Each agency shall assess the effects of federal regulations on State, local, and tribal governments, including specifically the availability of resources to carry out those mandates, and seek to minimize those burdens that uniquely or significantly affect such governmental entities, consistent with achieving regulatory objectives. In addition, as appropriate, agencies shall seek to harmonize federal regulatory actions with related State, local, and tribal regulatory and other governmental functions.
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From page 21... ...
The RIAs DOE prepares for its energy efficiency standards are not integrated into the standard-setting framework and mainly discuss alternatives that DOE concludes are not permitted by statute though conceivably might be authorized by legislators in the future. It is presented separately from, and after,13 other analyses, which appears inconsistent with the purpose of the RIA "to inform agency decisions in advance of regulatory actions and to ensure that regulatory choices are made after appropriate consideration of the likely consequences" (OMB, 2011b)
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From page 22... ...
or certain segments of the companies that purchase commercial refrigeration equipment, such as small grocers, there may be a lack of consumer information and/or information processing capability about energy efficiency opportunities in the commercial refrigeration equipment market" (DOE, 2014, "Final Rule: Energy Conservation Program: Energy Conservation Standards for Commercial Refrigeration Equipment," Federal Register 79(60) : 17726-17818, March 28, p.
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From page 23... ...
An analysis focused on market failures can consider not only whether a standard is likely to be justified, but also whether the calculations provided by the analysis are likely to be correct. As with the dishwasher rule, for many energy conservation regulations, most of the quantified benefits derive from private savings to purchasers of more efficient products (Gayer and Viscusi, 2013)
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Environmental Protection Agency and National Highway Traffic Safety Administration, 2011, "Greenhouse Gas Emissions Standards and Fuel Efficiency Standards for Medium- and Heavy-Duty Engines and Vehicles" Federal Register 76(179) : 57106-57513, September 15, p.
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It conducted the required regulatory flexibility analysis for both the CRE and residential furnace standards. Paperwork Reduction Act The Paperwork Reduction Act of 1980, as amended in 1995, aims to among other things, "minimize the paperwork burden .
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: 17222-17305. 22 DOE, 2014, "Energy Conservation Program: Energy Conservation Standards for Commercial Refrigeration Equipment," Federal Register 79: 17726-17818, p.
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Energy Conservation Standards, 1989-2019 Date of Final Analysis Site Energy Site Energy Rule Period Savings Savings Product/Equipment Citation Publication (years) (quads)
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78 FR 36316 6/17/2013 30 0.250 57.0% Metal halide lamp fixtures 79 FR 7746 2/10/2014 30 0.16-0.20 3.0% External power supplies 79 FR 7846 2/10/2014 30 0.320 56.0% Commercial refrigeration equipment 79 FR 17726 3/28/2014 30 1.140 13.0% Electric motors 79 FR 30934 5/29/2014 30 2.800 0.7% Walk-in coolers and freezers 79 FR 32050 6/3/2014 30 1.250 28.0% Furnace fans 79 FR 38130 7/3/2014 30 1.080 10.0% Commercial clothes washers 79 FR 74492 12/15/2014 30 0.044 7.0% General service fluorescent lamps 80 FR 4042 1/26/2015 30 0.900 7.0% Automatic commercial ice makers 80 FR 4646 1/28/2015 30 0.063 8.0% 28 Single package vertical air conditioners and heat pumps 80 FR 57438 9/23/2015 30 0.050 4.0% Ceiling fan light kits 81 FR 580 1/6/2016 30 0.016 3.0% Beverage vending machines 81 FR 1028 1/8/2016 30 0.044 16.0% Residential boilers 81 FR 2320 1/15/2016 30 0.137 0.6% Commercial warm air furnaces 81 FR 2420 1/15/2016 30 0.200 0.8% Small, large, and very large commercial package air conditioning 81 FR 2420 1/15/2016 30 5.500 24.0% and heating equipment Commercial, industrial pumps 81 FR 4368 1/26/2016 30 0.105 0.9% Commercial pre-rinse spray valves 81 FR 4748 1/27/2016 30 0.065 8.0% Battery chargers 81 FR 38266 6/13/2016 30 0.061 11.0% Dehumidifiers 81 FR 38338 6/13/2016 30 0.100 7.0% Miscellaneous refrigeration products 81 FR 75194 10/28/2016 30 0.540 58.0% Central air conditioners and heat pumps 82 FR 1786 1/6/2017 30 1.200 3.0% Dedicated-purpose pool pumps 82 FR 5650 1/18/2017 30 1.300 39.0% Ceiling fans 82 FR 6826 1/19/2017 30 0.740 26.0% Walk-in coolers and freezers 82 FR 31808 7/10/2017 30 0.290 8.0% NOTE: FR = Federal Register, e.g., "82 FR 31802" means Federal Register Volume 82, page 31808; Quads = quadrillion British thermal units. SOURCE: DOE, 2019, "Energy Savings Data for DOE Energy Conservation Standards, 1989-2019," EERE-2017-BT-STD-0062-0144, https://www.regulations.gov.
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From page 29... ...
. Their two case studies suggest between 2001 and 2011, compliance with the energy efficiency standards brought design challenges that increased repair rates and significantly decreased the product life of clothes washers and refrigerators.
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From page 30... ...
In the following chapters the methods used to set standards are examined in terms of five attributes: Adequacy and consistency with program's goal, consistent with relevant law and executive order; Transparency and replicability; Adherence to state-of-the-art theory and methods of analysis commensurate with data availability and DOE's ability to collect and analyze new data; Rigor in the treatment of uncertainty and variability; and Effectiveness in setting a path of continuous improvement of the process to set standards. Adequacy of Methods and Consistency with Program's Goal The first criterion the committee applies in assessing the methods used is whether they allow DOE to determine appropriate appliance standards that are adequate to meet overall goals of the statute in terms of promoting energy efficiency and energy conservation -- that is, the report asks if the methods are "fit for purpose." To the extent that the goal of a program to set minimum energy efficiency standards for appliances and equipment is broader than just reducing annual energy consumption in the compliance year and the future, minimum energy efficiency standards for appliances and equipment are a component of a larger strategy to fulfill DOE's mission to "ensure America's security and prosperity by addressing its energy, environmental and nuclear challenges through transformative science and technology solutions."1 Hence, in the committee's view, the main goal of the standards is reducing the costs and environmental externalities of the energy consumed by the regulated equipment and products.
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From page 31... ...
allows DOE to consider path dependencies. Consideration of the Outcomes of Energy Efficiency Standards in a Changing Context A further question the committee asks on this first criterion is whether DOE is forward-looking in its consideration of the possible future circumstances that affect the outcomes achieved by standards.
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From page 32... ...
. Transparency, Clarity, and Replicability of Analysis The second criterion that the committee applies to assess the standards-setting process is whether DOE describes methods and assumptions in sufficient detail such that the analysis can be replicated, and whether DOE communicates the final results clearly, properly characterizing the uncertainty that surrounds them and the variability of outcomes across geographies, income-groups, types of households etc.
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From page 33... ...
Rigor in the Representation and Communication of Variability The characteristics of the residential, commercial, or industrial buildings where the regulated products and equipment are installed and used and the hydroclimatic and economic conditions of the place where they are purchased determine the effects of energy efficiency standards. Geographical, socioeconomic, and behavioral factors affect not only the costs of the equipment or amount of energy consumed, but also the cost of such energy and its associated emissions.
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From page 34... ...
For example, DOE can describe the characteristics of the commercial establishments that would see the highest reduction in energy costs when replacing a baseline refrigerator with one meeting the proposed standard, or the characteristics of the households that benefit the least from purchasing a new dishwasher that meets the standards vs. a dishwasher that met the old standards.
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From page 35... ...
. Effectiveness in Setting a Path for Continuous Improvement of the Process to Set Energy Efficiency Standards Finally, the fifth criterion applied to these methods is whether they are designed to improve with time as standards are designed, the market responds, and new data are available to test past assumptions and considerations of variability and uncertainty.
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From page 36... ...
2014b. Technical Support Document: Energy Efficiency Program for Consumer Products and Commercial and Industrial Equipment: Commercial Refrigeration Equipment.
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From page 37... ...
1980. Department of Energy's proposed efficiency standards for consumer appliances: Report of the Regulatory Analysis Review Group.
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