Energy Conservation Program: Energy Conservation Standards for Rough Service Lamps and Vibration Service Lamps

Federal Register, Volume 82 Issue 246 (Tuesday, December 26, 2017)

Federal Register Volume 82, Number 246 (Tuesday, December 26, 2017)

Rules and Regulations

Pages 60845-60852

From the Federal Register Online via the Government Publishing Office www.gpo.gov

FR Doc No: 2017-27744

Page 60845

DEPARTMENT OF ENERGY

10 CFR Part 430

EERE-2017-BT-STD-0057

Energy Conservation Program: Energy Conservation Standards for Rough Service Lamps and Vibration Service Lamps

AGENCY: Office of Energy Efficiency and Renewable Energy, Department of Energy.

ACTION: Final rule.

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SUMMARY: The U.S. Department of Energy (DOE) is publishing this final rule in order to codify in the Code of Federal Regulations certain backstop requirements for rough service lamps and vibration service lamps that Congress prescribed in the Energy Policy and Conservation Act. These backstop requirements apply as a result of the subject lamps exceeding sales thresholds specified in the statute. In particular, this rule applies a statutorily-established 40-watt maximum energy use and packaging limitation to rough service lamps and vibration service lamps.

DATES: The effective date of this rule is January 25, 2018. The incorporation by reference of a certain publication listed in this rulemaking is approved by the Director of the Federal Register on January 25, 2018.

ADDRESSES: The docket is available for review at http://www.regulations.gov. All documents in the docket are listed in the http://www.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.

The docket web page can be found at http://www.regulations.gov/#!docketDetail;D=EERE-2017-BT-STD-0057. The docket web page will contain simple instructions on how to access all documents in the docket.

FOR FURTHER INFORMATION CONTACT: Ms. Celia Sher, U.S. Department of Energy, Office of the General Counsel, GC-33, 1000 Independence Avenue SW, Washington, DC 20585-0121. Telephone: (202) 287-6122. Email: email protected.

Appliance Standards staff, U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, Building Technologies, EE-2J, 1000 Independence Avenue SW, Washington, DC 20585-0121. Telephone: (202) 287-1445. Email: email protected.

SUPPLEMENTARY INFORMATION: This final rule incorporates by reference into 10 CFR part 430 the following commercial standard: NSF/ANSI 51-

2007 (``NSF/ANSI 51''), Food equipment materials, revised and adopted April 2007. Copies of NSF/ANSI 51 may be purchased from NSF International, P.O. Box 130140, 789 North Dixboro Road, Ann Arbor, MI 48113-0140, 1-800-673-6275, or go to http://www.nsf.org.

For a further discussion of this standard, see section IV.M.

Table of Contents

I. Background

II. Summary of This Action

III. Final Action

IV. Procedural Issues and Regulatory Review

1. Review Under Executive Orders 12866 and 13563

2. Review Under the Regulatory Flexibility Act

3. Review Under the Paperwork Reduction Act

4. Review Under the National Environmental Policy Act of 1969

5. Review Under Executive Order 13132

6. Review Under Executive Order 12988

7. Review Under the Unfunded Mandates Reform Act of 1995

8. Review Under the Treasury and General Government Appropriations Act, 1999

   I. Review Under Executive Order 12630

10. Review Under the Treasury and General Government Appropriations Act, 2001

11. Review Under Executive Order 13211

    L. Congressional Notification

13. Description of Materials Incorporated by Reference

    V. Approval of the Office of the Secretary

    I. Background

    Pursuant to 42 U.S.C. 6295(l)(4) of the Energy Policy and Conservation Act of 1975 (EPCA),\1\ Public Law 94-163 (42 U.S.C. 6291-

    6317, as codified), DOE is required to collect unit sales data for calendar years 2010 through 2025, in consultation with the National Electrical Manufacturers Association (NEMA), for rough service, shatter-resistant, 3-way incandescent lamps, 2,601-3,300 lumen general service incandescent lamps, and vibration service lamps. For each of these five lamp types, DOE, in consultation with NEMA, must also construct a model based on coincident economic indicators that closely match the historical annual growth rates of each lamp type to provide a neutral comparison benchmark estimate of future unit sales. (42 U.S.C. 6295(l)(4)(B). Section 321(a)(3)(B) of the Energy Independence and Security Act of 2007 (EISA 2007) in part amends paragraph 325(l) of EPCA by adding paragraphs (4)(D) through (H), which direct DOE to initiate an accelerated rulemaking to establish an energy conservation standard for these lamps if the actual annual unit sales of any of the lamp types in any year between 2010 and 2025 exceed the benchmark estimate of unit sales by at least 100 percent (i.e., are greater than 200 percent of the anticipated sales). (42 U.S.C. 6295(l)(4)(D)-(H)) If the Secretary of Energy (Secretary) does not complete the accelerated rulemakings within one year from the end of the previous calendar year during which predicted sales were exceeded, there is a ``backstop requirement'' for each lamp type, which would establish, by statute, energy conservation standard levels and related requirements. Id. For 2,601-3,300 lumen general service incandescent lamps, this backstop is automatically imposed once the benchmark unit sales estimates are exceeded.

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    \1\ All references to EPCA refer to the statute as amended through the Energy Efficiency Improvement Act of 2015, Public Law 114-11 (April 30, 2015).

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    By this action, DOE is placing in the Code of Federal Regulations (CFR) the statutory backstop requirements for rough service lamps and vibration service lamps prescribed in 42 U.S.C. 6295(l)(4)(D)(ii) and (E)(ii). These sections, which were added by EISA 2007, establish energy conservation standard levels and related requirements for rough service lamps and vibration service lamps if DOE does not complete a rulemaking in an accelerated 1 year period after issuing a

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    finding that the specified benchmark unit sales estimates had been exceeded.

    II. Summary of This Action

    Section 321(a)(1)(B) of EISA 2007 amended section 321(30) of EPCA by adding the definition of ``vibration service lamp.'' A ``vibration service lamp'' means a lamp that--(i) has filament configurations that are C-5, C-7A, or C-9, as listed in Figure 6-12 of the 9th Edition of the IESNA Illuminating Engineering Society of North America Lighting Handbook or similar configurations; (ii) has a maximum wattage of 60 watts; (iii) is sold at retail in packages of 2 lamps or less; and (iv) is designated and marketed specifically for vibration service or vibration-resistant applications, with--(I) the designation appearing on the lamp packaging; and (II) marketing materials that identify the lamp as being vibration service only. (42 U.S.C. 6291(30)(AA))

    Section 321(a)(1)(B) of EISA 2007 amended section 321(30) of EPCA by adding the definition of ``rough service lamp.'' A ``rough service lamp'' means a lamp that--(i) has a minimum of 5 supports with filament configurations that are C-7A, C-11, C-17, and C-22 as listed in Figure 6-12 of the 9th edition of the IESNA Lighting handbook, or similar configurations where lead wires are not counted as supports; and (ii) is designated and marketed specifically for ``rough service'' applications, with--(I) the designation appearing on the lamp packaging; and (II) marketing materials that identify the lamp as being for rough service. (42 U.S.C. 6291(30)(X))

    DOE published a notice of data availability (NODA) in April 2016, which indicated that the shipments of vibration service lamps were over 7 million units in 2015. This equates to 272.5 percent of the benchmark estimate, which was 2,594,000 units. 81 FR 20261, 20263 (April 7, 2016). Therefore, vibration service lamps exceeded the statutory threshold for the first time, thus triggering an accelerated rulemaking to be completed no later than December 31, 2016. Id. Furthermore, NEMA submitted revised data for rough service lamps following the publication of the April 2016 NODA at 81 FR 20261. The revised data showed sales of 10,914,000 rough service lamps in 2015, which exceeded 100% of the benchmark estimate of 4,967,000 units for 2015.\2\ This resulted in a requirement for DOE to initiate an accelerated rulemaking for rough service lamps. In an October 2016 notice of proposed definition and data availability (NOPDDA), DOE indicated it must conduct an energy conservation standards rulemaking for rough service lamps to be completed no later than the end of the 2016 calendar year. 81 FR 71794, 71800 (Oct. 18, 2016).

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    \2\ See ex parte memorandum published in the docket at https://www.regulations.gov/document?D=EERE-2013-BT-STD-0051-0075.

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    If the Secretary does not complete these accelerated rulemakings within the one year time frame accorded by EPCA, the statute provides a backstop requirement that becomes an energy conservation standard for vibration service and rough service lamps. This backstop requirement would require vibration service lamps to: (1) Have a maximum 40-watt limitation and (2) be sold at retail only in a package containing one lamp. 42 U.S.C. 6295(l)(4)(E)(ii). For rough service lamps, the backstop requires that the lamps: (1) Have a shatter-proof coating or equivalent technology that complies with NSF/ANSI 51 and is designed to contain the glass if the glass envelope of the lamp is broken and to provide effective containment over the life of the lamp; (2) have a maximum 40-watt limitation; and (3) be sold at retail only in a package containing one lamp. 42 U.S.C. 6295(l)(4)(D)(ii).

    Since unit sales for vibration service lamps and rough service lamps exceeded 200 percent of the benchmark estimate in 2015, and DOE did not complete an energy conservation standards rulemaking for these lamps by the end of calendar year 2016, the backstop requirement was triggered, without discretion, and is now applicable. For this final rule, DOE codifies at 10 CFR 430.32 the statutory requirements that apply to rough service lamps and vibration service lamps in 42 U.S.C. 6295(l)(4)(D)(ii) and (E)(ii). These energy conservation levels and requirements apply to rough service lamps and vibration service lamps manufactured on or after January 25, 2018. While DOE did not meet its statutory deadline to complete an accelerated rulemaking by the end of calendar year 2016, an effective date of January 25, 2018, remains generally consistent with the intent of Congress to provide for a one calendar year period between imposition of the energy conservation standard and compliance with such standard. The Secretary will continue to collect and model data for rough service lamps and vibration service lamps for two years after this effective date, in accordance with 42 U.S.C. 6295(l)(4)(I)(ii).

    III. Final Action

    DOE has determined, pursuant to 5 U.S.C. 553(b)(B), that prior notice and an opportunity for public comment on this final rule are unnecessary. DOE is merely placing in the CFR, verbatim, certain requirements and wattage limitations for rough service lamps and vibration service lamps prescribed by Congress in EPCA. DOE is not exercising any of the discretionary authority that Congress has provided to the Secretary of Energy in EPCA. As such, prior notice and an opportunity for comment would serve no purpose in this instance. DOE, therefore, finds that good cause exists to waive prior notice and an opportunity to comment for this rulemaking.

    IV. Procedural Issues and Regulatory Review

1. Review Under Executive Orders 12866 and 13563

   This final rule is a ``significant regulatory action'' under section 3(f)(1) of Executive Order 12866 and the principles reaffirmed in Executive Order 13563. Accordingly, this action was subject to review by the Office of Information and Regulatory Affairs (OIRA) in the Office of Management and Budget (OMB).

   Regulatory Impact Analysis

   Summary

   The purpose of this Regulatory Impact Analysis (RIA) is to describe the range of potential costs related to applying the statutorily-

   established 40 watt maximum energy use and packaging limitation to rough and vibration service lamps as well as the shatter-proof coating requirement for rough service lamps. This RIA presents three separate consumer substitution scenarios due to the elimination of greater than 40 watt rough and vibration service lamps from the market. These three scenarios provide lower and upper bounds of the range of potential monetized costs, but they do not take into account lost utility caused by the substitutions. DOE estimates this rule to eliminate 80% of the rough and vibration service lamp market. DOE took this bounding approach because data are unavailable to forecast consumer response to the rule.

   In the first scenario, consumers are assumed to substitute rough and vibration service lamps greater than 40 watts with rough and service lamps less than 40 watts. In the second scenario, consumers are assumed to substitute greater than 40 watt rough and vibration service lamps with shatter-resistant lamps greater than 40 watts. In the third scenario, consumers are assumed to substitute greater than 40 watt rough and vibration service lamps with LEDs

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   emitting equivalent lumens as the lamps they would replace. In all three scenarios, consumers would still have access to rough and vibration service lamp less than 40 watts but would pay more per unit due to the new packaging limitations and shatter proofing requirements.

   Table 1 summarizes the three substitution scenarios as potential incremental costs and market value associated with this rulemaking. For a lower bound, the rule could increase aggregate consumer spending by $14.7 million if all consumers substituted greater than 40 watt rough and vibration service lamps with those less than 40 watts. For an upper bound, the rule could increase consumer spending by $72.8M if all consumers substituted greater than 40 watt rough and vibration service lamps with LEDs that emit equivalent lumens. In practice, there will likely be a mix of market responses across consumers. In the lower bound estimated especially there is likely to be additional, non-

   quantified lost utility because consumers are substituting lower wattage bulbs that deliver less light.

   Table 1

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   Substitution scenarios *

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   LEDs

   40W) lumens)

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   Incremental Cost........................ $1.33 (rough)......................... $1.31 $2.91

   $0.02 (vibration).....................

   Market Value............................ $14.7M................................ 49.8M 72.8M

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   * Includes increased cost for packaging and shatter proofing for 40W................... 80%

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   Lost total revenue from >40W lamp $17,026,000 $11,031,000

   removal from market....................

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   Total............................... $28,057,000

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   Consumer Impacts

   In the absence of rough and vibration service lamps above 40 watts, DOE believes that all or most consumers of these lamps will purchase a replacement product because the demand for light bulbs is expected to remain constant and not diminish significantly as a result of certain products exiting the market, even though substitute bulbs may be more costly. Consumers have multiple replacement options presented in the following three scenarios: (1) Rough or vibration service lamps less than 40 watts, (2) shatter-resistant lamps greater than 40 watts or (3) LED lamps emitting equivalent lumens. DOE does not attempt here to account for the reasons behind a consumer's choice to purchase a specific lamp type, hence a set of scenarios that represent lower and upper bounds of the incremental monetized cost of this final rule are presented. For rough and vibration service lamps less than 40 watts, consumers will pay more per unit via pass though costs due to the backstop packaging and shatterproof coating requirements. These costs are built into the three scenarios, but are detailed here for transparency.

   For the cost of packaging and shatter proofing requirement of the backstop provisions, DOE estimates imposition of the required backstop standard would result in a modest market cost increase related to the new packaging requirements for vibration and rough service lamps, of approximately $0.02 per unit, and to the new shatterproof coating requirements for rough service lamps of approximately $1.31 per unit. For vibration service lamps, DOE estimates additional packaging costs to be roughly $28,000. For rough service lamps, DOE estimates additional packaging costs totaling $44,000. For rough service lamps, DOE estimates shatterproof coating costs to be about $2,852,000.

   Table 3 summarizes these incremental costs for packaging and shatterproofing rough and vibration service lamps less than 40 watts under the estimated current 20 percent market profile when the rule is effective.

   Table 3

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   Rough service Vibration

   lamps service lamps

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   Shipments in 2015....................... 10,914,000 7,071,000

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   Percent of Sales for 40W and 40W................... 80%

   Percent of Sales 40W removal from market..

   Increased total cost for packaging for $44,000 $28,000

   40W................... 80%

   Percent of Sales 40W removal from market..

   Increased total cost for packaging for $44,000 $28,000