. STATE Of NEW YORKSTATE OF CALIFORNIA

STATE OF CONNECTICUTSTATE OF ILLINOISSTATE OF MAINE

STATE Of MARYLANDCOMMONWEALTH OF MASSACHUSETTS

STATE OF OREGONPENNSYLVANIA DEPARTMENT OFENVIRONMENTAL PROTECTION

STATE Of VERMONTSTATE OF WASHINGTON

CITY OF NEW YORK

April 3, 2017

BY CERTIFIED MAILRETURN RECEIPT REQUESTED

Hon. James R. Perry, SecretaryU. S . Department of Energy1000 Independence Avenue, S.W.Washington, D.C. 20585

Re: Failure to Submit Final Rules for Publication in Federal Register!60-Day Notice Letter for Violation of Energy Policy and ConservationAct, 42 U.S.C. § 6291 et seq. and Error Correction Rule,10 C.F.R. § 430.5(f)

Dear Secretary Perry:

We write to express our deep concern over the failure of the Department of Energy(“DOE”) to submit for publication in the Federal Register five energy efficiency standards theagency issued in December 2016.1 These efficiency standards, applicable to air compressors,commercial packaged boilers, portable air conditioners, walk-in coolers and freezers, andunintermptible power supplies, were promulgated under the Energy Policy and Conservation Act(“EPCA”), 42 U.S.C. § 6291 et seq. These standards, developed with extensive input frominterested stakeholders, were set forth in “final rules” signed and dated by the DOE AssistantSecretary, and posted for pre-publication error correction review pursuant to 10 C.F.R. § 430.5.

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1

As such, the standards represent the culmination ofDOE’s substantive review and analysis, andreflect the agency’s determination that they will result in significant energy conservation, aretechnologically feasible, and economicallyjustified. 42 U.S.C. § 6295(o)(2)(a). The period forsubmission of correction requests under DOE’s error correction rule has closed, and the time forDOE’s required submission ofthe rules for publication in the Federal Register has also passed.We therefore urge DOE to immediately publish the standards in full compliance with itsstatutory obligations under EPCA and the Administrative Procedure Act, 5 U.S.C. § 551 et seq.

This letter serves as notice, pursuant to 42 U.S.C. § 6305(a) and (b), that DOE’s failureto submit the five standards for publication in the federal Register violates the Department’snon-discretionary duty under EPCA and the DOE’s error correction rule, 10 C.F.R. § 430.5(0.In the event DOE fails, or refuses, to perform its discrete, non-discretionary duty within 60 days,the undersigned states intend to commence litigation seeking, among other things, an orderdirecting DOE to immediately submit the rules for publication in full compliance with the law.

I. Energy Policy and Conservation Act, 42 U.S.C. § 6291 et seq.

Adopted in the afiermath of the 1973 oil crisis, the Energy Policy and Conservation Actof 1 975 created a comprehensive approach to federal energy policy. Congress’ primary goals inadopting EPCA included reducing domestic energy demand and increasing energy efficiency.EPCA Chapter III, Part A establishes the Energy Conservation Program for Consumer ProductsOther Than Automobiles, 42 U.S.C. § 6291-6309, and gives DOE the authority to develop,revise, and implement minimum energy conservation standards for a variety of appliances andequipment. 42 U.S.C. § 6295. Although Congress established initial federal energy efficiencystandards for almost two dozen consumer and commercial products, Congress also imposed uponDOE the nondiscretionary duty to propose and complete mlemakings by specified deadlines toconsider revising these standards. For the most part, states are preempted from establishing theirown efficiency standards for products regulated by DOE, 42 U.S.C. § 6297, making timely andfull implementation ofthe law by DOE all the more important.

EPCA provides that when considering whether to revise an efficiency standard for aconsumer product, DOE must select that standard that is “designed to achieve the maximumimprovement in energy efficiency . . . which the Secretary determines is technologically feasibleand economically justified.” 42 U. S .C. § 6295(o)(2)(A). Under EPCA’ s anti-backslidingprovision, 42 U.S.C. § 6295(o)(1), DOE lacks authority to weaken an energy efficiency standardonce it has been established by Congress or by a subsequent rulemaking. See NRDC v. Abraham,355 F.3d 179 (2d Cir. 2004). For most types of commercial equipment covered by the statute, aswith consumer products, DOE must periodically revise the initial efficiency standards.

II. Economic and Environmental Benefits of Energy Efficiency Standards

DOE is authorized under EPCA and its amendments to set minimum energy conservationstandards for approximately 60 categories of appliances and equipment used in residences andbusinesses. It is widely-recognized by federal, state and local governments, industry, thescientific community, consumers and society at-large, that appliance efficiency standards arefeasible and economical. A February 2017 report by the Appliance Standards Awareness Project

2

(ASAP) and the American Council for Energy Efficient Economy (ACEEE) entitled, “EnergySavings States ofAmeñca: How Every State Benefits from National Appliance Standards”indicates that consumers and businesses saved an estimated $80 billion on utility bills fromexisting standards in 201 5, and that savings from these standards will grow to nearly $1 50 billionby 2030.2 On a cumulative basis, counting both costs and benefits for products sold between1987 and 2035, total net present value savings from national standards is estimated at $2.4trillion for U.S. consumers and businesses. According to DOE’s website, “Standards savedAmerican consumers $63 billion on their utility bills in 201 5, and cumulatively, have helped theUnited States avoid 2.6 billion tons of carbon dioxide emissions.” Thus, DOE’s efficiencystandards for appliances significantly reduce U.S. energy consumption, lower emissions ofgreenhouse gases, and save consumers billions of dollars annually. In fact, recent data show thatappliance efficiency standards provide the second largest energy savings of all energyconservation programs and initiatives, utility sector energy-efficiency programs, federal taxincentives, and other major national initiatives.3

III. DOE Final Rules Setting Efficiency Standards for Air Compressors, Commercial.Packaged Boilers, Portable Air Conditioners, Walk-in Coolers and freezers, andUninterruptible Power Supplies

In December 2016, DOE concluded its multi-year efforts to develop and/or updateefficiency standards for air compressors, commercial packaged boilers, portable air conditioners,walk-in coolers and freezers, and unintermptible power supplies by issuing final rules, signed byDOE’s Assistant Secretary for Energy Efficiency and Renewable Energy, setting forth newenergy conservation standards. For each product rule, DOE determined that the newly adoptedstandard represents the “maximum improvement in energy efficiency that is technologicallyfeasible and economically justified, and will result in significant conservation of energy.” Priorto publication in the Federal Register, DOE posted pre-publication versions of the final rules onits website to begin the error correction review process specified under 10 C.F.R. § 430.5.

2

iTpdf

3 See Appliance Standards Awareness Project, April 6, 20 1 6 Press Release, “Little Known federal ApplianceStandards Rank as #2 Energy-Saving Tool in U.S., Will Play Major Role in Meeting Paris Climate Target”.IttPS ppI1dfl(. stiildaI(1s ()r siLs dcfault fik’ Appli nc°2OStndaJ>° 2Un iti 1a1°2t)IL\\’o2(hk tsc 1’(ItIn 2014, energy savings from appliance standards was surpassed only by EPA/NHTSA’s corporate average fueleconomy (CAFE) standards for cars and trucks.

4 DOE’s error correction rule, 10 C.F.R. § 430.5(f), provides in pertinent part:(0 Publication in the Federal Register.( 1) If, after receiving one or more properly filed requests for correction, the Secretary decides not toundertake any corrections, the Secretary will submit the rule for publication to the Office of the FederalRegister as it was posted pursuant to paragraph (c)(l) of this section.(2) If the Secretary receives no properly filed requests after posting a rule and identifies no Errors on theSecretary’s own initiative, the Secretary will in due course submit the rule, as it was posted pursuant toparagraph (c)(l) of this section, to the Office of the Federal Register for publication. This will occur afterthe period prescribed by paragraph (c)(2) of this section has elapsed.

3

A. Error Correction Rule, 1 0 C.F.R. 430.5

Under the DOE’s “error correction rule,” 10 C.F.R. § 430.5, DOE is required to post afinal rule establishing or amending an energy efficiency standard on the agency’ s publicly-accessible website for 45 days prior to submission for publication in the Federal Register. Therule affords DOE and interested parties a limited window of opportunity to alert the agency tonon-policy errors (i.e., typographical, calculation or numbering errors) in the regulatory text of afinal rule, and request corrections. It further provides DOE a period oftime (up to 30 days) toconsider correction requests and make any necessary corrections before submission of a rule forpublication. Thus, DOE’s own rules require that it submit a final standard-setting rule—asoriginally posted or with corrections—to the Federal Register for publication within 30 daysafter the close ofthe 45-day correction request and review period. Only in the event ofextenuating circumstances, such as where an error relates to a particularly complex engineeringanalysis, is departure from these time restrictions permitted.5 DOE has acknowledged that it“takes the timelines in EPCA as signals of congressional concern that standards rulemakingsshould not be unnecessarily delayed.” 81 Fed. Reg. at 57753.

By its terms, the error correction rule does not permit DOE to maintain a signed final rulein a state oflimbo: that is, issued but non-enforceable for lack ofpublication. To the contrary, inspecifying that “DOE will submit the rule for publication,” the error correction rule imposes anon-discretionary duty to do so within the permitted timeframe (within 30 days after the 45-daycorrection request period). 10 C.F.R. § 430.5(f)(3). Where DOE receives no correction requestsfor a final rule, it must submit the rule for publication as-is, “in due course.” 1 0 C.F.R. §430.5(f)(3).

The term “will” imposes a mandatory duty no different than the terms “shall” or “must.”Summit Packaging Sys. v. Kenyon & Kenyon, 273 F.3d 9, 12 (1st Cir. 2001) (interpretingcontractual phrase “will be submitted” and citing Black’s Law Dictionary). The error correctionrule therefore commands the DOE Secretary to timely submit the rules for Federal Registerpublication. This is a discrete, non-discretionary agency action that a reviewing court maycompel as “agency action unlawfully withheld or unreasonably delayed.” 5 U.S.C. § 706(1);Norton v. S. Utah Wilderness Alliance, 542 U.S. 55, 62-65 (2004). The non-discretionary natureofDOE’s duty to publish the rules is further supported by DOE’s acknowledgement that “theposting of an energy conservation standards rule signals the end of DOE’ s substantive analysisand decision-making regarding the applicable standards.”6 Furthermore, “the Department posts a

(3) If the Secretary receives a properly filed request afier posting a rule pursuant to (c)(l) and determinesthat a correction is necessary, the Secretary will, absent extenuating circumstances, submit a corrected rulefor publication in the Federal Register within 30 days after the period prescribed by paragraph (c)(2) of thissection has elapsed.

5 81 fed. Reg. 57745, 57750 (Aug. 24, 2016).

681 Fed. Reg. at57751.

4

rule with the appropriate official’s signature only after concluding its deliberations and reachingdecisions on the relevant factual determinations and policy choices.”7

We are aware of no error correction requests received by DOE for four of the five finalrules. And although several correction requests by industry were posted on DOE’s commercialpackaged boilers rulemaking docket, none of them appear to have identified errors as defined bythe error correction rule. Under these circumstances, DOE’s time to transmit the five rules(including the commercial boilers rule) for publication expired, at the latest, on March 15, 2017.8

But DOE has yet to submit the rules for publication in accordance with 10 C.F.R. § 430.5(f).

B. Consequence ofDOE’s Failure to Publish the Five Efficiency Standards

The consequence ofDOE’s failure to publish the rules is significant. The rulemakingdockets for each of the standards identify significant reductions in electricity consumption andpollution emissions that will be achieved as a result of the rules.9 A summary of these estimatedenergy savings and the emissions reductions is presented in Appendix A to thisSummaries ofthe estimated monetized value ofthese benefits are presented in Appendix B.”Both appendices are attached hereto and incorporated by reference. Yet, with continuedpublication delays, the projected economic, environmental and public health benefits ofthe ruleswill also be delayed, as manufacturers’ compliance dates are measured from the rules’ effectivedates. 12

7 81 Fed. Reg. 26999 (May 5, 2016).

8 DOE was required to submit the air compressor rule to the Federal Register for publication by no later thanFebruary 21, 2017.

9 for example, the new standards for walk-in coolers and freezers are expected to yield a 24% savings in energy usefor those products over a thirty-year period. Similarly, the estimated cumulative reduction in C02 emissions through2030 is equivalent to emissions resulting from the annual electricity use ofmore than 783,000 homes. Walk-InCoolers and freezers final Rule (WICf Rule) (posted December 28, 2016) at pp.12-13.

10 This summary is based on figures presented in DOE’s cost-benefit analysis for each ofthe five final rules andestimates prepared by the Appliance Standard Awareness Project.

11 These summaries were prepared by DOE and presented in Air Compressor final Rule (posted December 5, 2016),Table 1.3, Summary of Economic Benefits and Costs of Adopted Energy Conservation Standards for AirCompressors at pp.13-14; Commercial Packaged Boilers Final Rule (posted December 28, 2016), Table 1.3, SelectedCategories of National Economic Benefits and Costs of Energy Conservation Standards for Commercial PackagedBoilers (TSL2) at p.14; Portable Air Conditioners final Rule (posted December 28, 2016), Table 1.3, SelectedCategories of Economic Benefits and Costs ofNew Energy Conservation Standards for Portable Air Conditioners(TSL2) at p.13; WICf Rule , Table 1.3, Selected Categories of Economic Benefits and Costs of Adopted EnergyConservation Standards for the Considered WICf Refrigeration Systems (TSL3) at pp.15-i 6; and Uninten-uptiblePower Supplies final Rule (posted December 28, 2016), Table 1.3, Selected Categories of Economic Benefits andCosts of Adopted Energy Conservation Standards for UPSs at pp.12-13.

12 for walk-in coolers and freezers, DOE estimates that the new standards will result in net benefits of over $200million annually. WIfC Rule, Table 1.4, Selected Categories of Annualized Benefits and Costs of AdoptedStandards (TSL3) for WICf Refrigeration Systems at p. 18. Thus, even a delay of several months can result in asignificant loss of economic benefits from the rule.

5

Thus, leaving the final rules in regulatory “limbo” has very real, negative economic andenvironmental consequences, essentially frustrating Congress’ energy conservation goals underEPCA. Without the benefit of enforceable efficiency standards for air compressors, commercialpackaged boilers, portable air conditioners, walk-in coolers and freezers, and uninterruptiblepower supplies, electricity and natural gas consumption will increase, as will energy bills forstates, municipalities and their residents and businesses. Increases in fossil fuel consumption asa result of reduced efficiency will lead to increased emissions of air pollutants that negativelyimpact public health and the environment, including carbon dioxide and other climate-changinggases. Finally, DOE’s failure to adopt improved efficiency standards will also impede state andmunicipal energy policies that rely on conservation and gains in energy efficiency as part of anoverall strategy to transition to cleaner, safer, or more sustainable energy sources.

Iv. Citizen Suit Claim for Failure to Perform Non-Discretionary Duty

DOE’s failure to timely submit the five final rules for publication in the Federal Registerviolates the requirements of the error correction rule, and is actionable in a citizen suit underEPCA, 42 U.S.C. § 6305(a). Section 42 U.S.C. § 6305(a)(2) allows commencement ofa civilaction in federal district court against DOE, afier 60-day notice to the Secretary, for “an allegedfailure . . . to perform any act or duty under this part which is not discretionary.” 42 U.S.C.

§ 6305(a)(2). We therefore urge DOE to perform its duty under EPCA and the error correctionrule, 10 C.F.R. § 430.5(f), to transmit the five final rules for publication. In the event DOE failsto do so, we intend to pursue litigation to compel performance of that duty in compliance withEPCA and DOE’s error correction rule. Other parties not signatories to this letter may also jointhis litigation with respect to the same claims covered by this letter.

Sincerely,

ERIC T. SCHNEIDERMANAttorney General ofthe

State of New York ,. — I

By 7 I / I L

Timothy Hoffman, AssistàM Attorney GeneralLisa Kwong, Assistant Attorney GeneralOffice of the Attorney GeneralEnvironmental Protection BureauThe CapitolAlbany, New York 12224Tel: (716) 853-8465

(518) 776-2422Email: Timothy.Hoffman’.ag.ny.gov

Lisa. Kwong2ag.ny.gov

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XAVIER BECERRAAttorney General of thestt9 of California

By r-Somerset Perry, Deputy Att&ney GeneralJamie Jefferson, Deputy Attorney GeneralOffice ofthe Attorney GeneralCalifornia Department of Justice1515 Clay St., 20th FloorOakland, California 94612Tel: (510) 879-0852Email: Son set Per vädcLca.ov

GEORGE JEPSENAttorney General of theState of Connecticut

L’ /1By: ‘PLtf1A_\i g L&4 j LcL(

Matthew Levine, Assistant Attorney GeneralRobert Snook, Assistant Attorney GeneralOffice ofthe Attorney General55 Elm StreetHartford, Connecticut 06141 -0120Tel: (860) 808-5250Email: Robert.Snook.(cLgov

LISA MADIGANAttorney General of theState of Illinois

By ( 1 j C vt t I I c ;Jans P. Gignac, Asistant Attorney GeneralIllinois Attorney General’s Office69 W. Washington St., 18th FloorChicago, Illinois 60602Tel: (312) 814-0660Email: jjgnacatgstate.ii.us

7

JANET T. MILLSAttorney General of theState of Maine

,

By: /L i--4 )).4

Katherine Tiemey, Assistant A1oney GeneralOffice ofthe Attorney GeneralState House Station 6Augusta, ME 04333-0006Tel: (207) 626-8800Email: katherine.tiem... ey(ämaine.gov

BRIAN E. FROSHAttorney General of Maryland

;Office ofthe Attorney General200 Saint Paul Place, 20th FloorBaltimore, Maryland 21202Tel: (410) 576-6330Email: cquattrocki(äçtgstatern... ius

MAURA HEALEYAttorney General of theCommonwealth of Massachusetts

By I (U-\ I L

I. Andrew Goldber, Assistant Atiômey GeneralEnvironmental Protection DivisionJoseph Dorfier, Assistant Attorney GeneralEnergy and Telecommunications DivisionOffice of the Attorney GeneralOne Ashburton Place, 1 8th FloorBoston, Massachusetts 02108Tel: (617)963-2429 -

(617) 963-2086Email: andy.goidberg(iistate.maus

josephdorfier(state.mau.s

8

ELLEN F. ROSENBLUMAttorney General of theState of Oregon

,-‘; I 4 ‘ ,

By: €‘I4-L* I C:ZLPaul Garrahan,Attorney-in-ChargeNatural Resources SectionJesse D. Ratcliffe,Senior Assistant Attorney GeneralOregon Department of Justice1162 Court Street, N.E.Salem, Oregon 9730 1-4096Tel: 503-947-4342Email: •pwjl .garrahan(d.oj .state.orus

ALEXANDRA C. CHIARUTTINIChief Counsel for Pennsylvania Department ofEnvironmental Protection

PA Bar No. 80428

By I Lr I £

Robert A. ReileyPABarNo. 61319Department of Environmental ProtectionOffice of Chief Counsel400 Market Street, 1 6th FloorP.O. Box 8464Harrisburg, PA 17105-8464Tel: (7 1 7) 787-4449Email: rreiley(Ei.pa.gov

THOMAS J. DONOVAN, JR.Attorney General of the

State of Vermont

By )_ j 1’ If Si

Laura B. Murphy ‘,‘3

Assistant Attorney GeneralEnvironmental Protection DivisionVermont Attorney General’s Office109 State StreetMontpelier, VT 05609Tel: (802) 828-1059Email:

.9

BOB FERGUSONAttorney General of Washington

By I1frk I I t i

By: Thomas J. Youiig UAssistant Attorney GeneralWashington State Office of the Attorney GeneralP.O. Box 40117Olympia, WA 98504-0117Tel: (360) 586-4608Email: Ton Y()atgwa.gov

ZACHARY W. CARTERCorporation Counsel of theCity ofNew York

By , , 1: k, f Ic

Si(san E. Amron, Chief,Environmental Law Division

Sarah Kogel-Smucker, Senior CounselNew York City Law Department100 Church Street, Room 6-146New York, New York 10007Tel: (212) 356-2070

(212) 356-2315Email: samron1law.nycgov

slcogel(q)LlawJIyc.gQy

cc:Hon. Maureen Ohlhausen, Acting ChairmanFederal Trade Commission600 Pennsylvania Avenue, NWWashington, DC 20580

10

Appendix

AE

stimated

Energy

Savingsand

Em

issionsR

eductions*

Net

Cost

Savings

t$billion)**

Em

issionsR

eductions***

Equivalent

Electricity

Annual

Saved

Electricity

.CO

2P

roduct(billion

Consum

ption(m

illionCO

2502

NO

X502

+N

OX

CH4

N20

Efficiency

kilowatt

(million

metric

(million

(thousand(thousand

(thousand(thousand

(thousandH

GS

tandardhours)**

households)**low

hightons)

tons)tons)

tons)tons)

tons)tons)

(tons)

Air

compressors

15.61.3

0.20.4

8.29.02

6.50.011

6.51140.8

0.10.02

Uninterruptible

power

supplies87

71.3

349

53.939

63102

2380.73

0.13

Corn

mercial

packagedboilers

N/A

****N

/A0.5

216

17.6139

3.1286.6

410.1

0.0003

Walk-in

cooler/freezers

Portable

airconditioners

9050

74

1.4

1.25

3.23

46

25.6

50.6

28.16

36

16.4

0.058

0.0322

36.058

16.4322

218

124.8

0.7

0.4

0.1

0.06

*Estim

atesare

forlifetim

eenergy

savingsand

emissions

reductionsresulting

fromproducts

purchasedin

the

30-yearperiod

that

beginsin

the

anticipatedfirst

fullyear

ofcom

pliancew

ithth

ead

op

tedstan

dard

s**B

asedon

estimates

byth

eA

pplianceS

tandardA

wareness

Project

(ASA

P)***B

asedon

estimates

byth

eU

.S.D

epartment

ofE

nergy(D

OE)

****Natural

gassavings

is.27

quadrillionB

tu

Appendix B DOE Summaries of Economic Benefits and Costs

laI)1e 1.3 Sunuxiarv of Ecuizi,inic Benclits and ( isIs of Adopted Energy(Ofl%erVatiufl St;i fldar(tS for Air (iinpressors

I’rescntIhscoun(

‘ aliti:( ttgnr , Ratv

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ioisiiercent.

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02 7( on4trcr ( )cr:31i! C o’t Si n:s

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( t It ; ( us:n a z ci;1 crts at di tourI r:tc) &t I

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( 31 ft 2cdUcuOfl ( us rt erccntie •Ot iji to\1:\ it:

discount ttte’ 0 C)

fl({)( 7No’ RdLtcIL4)i - - : -.

D02

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([.1 7(• riuircr 1tic:er:c;rai lnstallet: Utsts ‘

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I :i N h1:N ‘: L N :IL ‘ .itd t: aL JItJ \‘ ii k n:is ‘‘01 S 1tN:1 t Ut 2 . I 4’. N tN[ \

‘rs!IN 1 r .t.L ,a; .it:z _11 1:Hn :}t U$*k.\ ;:rr:ti tt

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p*1 C : —p%n .i’ >‘ ;J 1 —ttkflL, : h : I!’ et. t 1d- : ‘s’: ‘t’t . hc ) trvr ;: 1 he el c I Ii t lnt rk JL+. I n •;ir .‘ —o%’rk , U 1 irr r • ‘ N it&l;;&;&. .‘ ‘:t

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‘r:c:ii it :h+tl .ciI Jsc o i:ti’s h.: *LuLr L k. >c. \ .t ictls.:- L()l . e: r: :t: ic r octi’cil ‘ tl c l \t ) etTA t. cith t:& ned • ii ele t : i . ir br:e iI t It I I I Ii t Tn j i , i ts h I ç t ) I r H I I in ‘. i t l

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‘1 ‘ttsnNl l’i. I •—p i—rn t’%I!t’jIN. •*‘ \( )\ ç.p U he F : . : ;•N h< ‘IL: 1 T øt* . & *J , i

lflS’ fli \ 1’ t%L ?‘J>ILI i: tj U’ ‘ I P \. Ii le I’9\’.: Jfl’ —t I \>UI diss Vfl l ci r. :i: In..’

, \ 1L’ Ic J11 N ; tt1 i—iit—a—l’alt h n utt÷. : th r—’ %t*%1 i( dt •;‘ ‘CC tI h.‘i( i .‘s J lv ;T e; 1) i c \ lt’ NLN.il 1> IV.fl .tTt—1 F+tl t u’ l,jrt. + :l ItflitiIl\ Ii’ it ri t’e —tT• c’iI tr: pc ‘ : 2 ‘ . r t1T : ‘I e er :e .% ‘ I ? 1’ j C ii

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1

Appendix B DOE Summaries of Economic Benefits and Costs

Table ii Selected Categories of INational Economic .Be:nefiis and Costs of Energy

C onset 4 ation Standards lot Commercial Packaged Boilers (TSL 2*)

. Present Value . .

( ttcgon Discount Raft* million %flt%.S

.‘

Benefits9()7

( )ptr itirn’ C ON( S it irns- 2zK( 0 RcthIcn%n Moneiucd \ dut. (u%mtz aicm N*( C I c

, .. . n oudiscount_rate)10 I{tdiiuten Montt;itd flue (u\1n. tn SC(. d ,

%X’ I

thscoutn rate) :

C C) RLduttLon Monuiitd due (using nit. in S( C I 2 5 777discount rule) ‘ ‘ , ‘ -E( o_ Rduuion Monttu’d \ dIUL (iiiiu % vtitcntilc SC C at

146% 1):_d.Isckntnt_rate)

U\O RttiUtEOfl

9% V

. .. .. :* [$425Total 1knLI1b

‘l 66 V)0

(:ostsio 70/I

incremental Installed Costs [ : jj .. ..j. .

.:.

.

Tutat Net Benefits

t 4)75lndudirg (I) ard tJX ktdutta’i \lentti’td \ aWL ,

IOU4 i is tb:t the costs at:ct bcnt :s Isst)ciaLd \‘ nh vofli1cTcIjI p% aicd hcnIrs sv;pcti n

1’ 1usC • eMlils lit i[tI& 1)eHCIiLS ID tO ntincr lh?t icenie after DO%’ itnn U t Lc:I nert cd n 20t)—10 It)

I 114:! tntit;d rI\tat1e1 COt% IOU ude flCI flflt fl1I CqL)Ij3flheflt COl )1 \S C I Is t%!J!h%ttOt) LC)’ts [he ( () ‘ rcductoth::11)r fl .111 u 1LI1 linc1 : due hi ictons otcUf fl toni1; 4 1 h tCt%ILtflL’. : rcup sc:et ted is ot St ( ii L’ 0 st: 1 : teuki; r mu \CS. I lire • L1 ‘1 1iiN II C

Flu I on ItIC )) C, Igi: St (•‘ roni hc rt1t:ra cd f’C’sfl alit Ut1tC. . Ut (1 ÷ &flifll ra:cs 01 S c:’t c’ + ,i’rt’c’r1. iid ‘ .

r’ lor ctnq’lc. k o ‘0 1 u’j N%)Ofl%, 1}hC dLIC% HU I 4 ; .c41) ( i;t1 ¶q 3 2 i . c I s>, eieti i dv ‘TI

k UI I] :c I \ S t n t r fl) I ti ii tons ; Ii . Ii t pr cmts hit ‘1 at’rcc ;I Ie o I hi. s( d i r ur on

L i:tiiitc’I )t.1 i %})c ( c It I ‘LOt It •+)IC. IlL iiitd to t: c ‘cnI hn:I,t r ii; I—C\2Cc tcd opic t s Ir’on i r pci Lt

I )r1?C [tn1I’r iiia n Ihe ;1 o ih ‘ X( t t11;IhtItt)n, iIIC St ( \1}iJ%% n nimori LJ1 \ t tHIL Sct sct

p% L I lot :norC dctIs.1.)Cfl: cstirn:ncd thc 1110k EIzt’)J t1tic I’ NO %‘L:11Itns rctftittzoi zisocijt’cI Iii c tL. t L’’ N)\ Ifl nsiIlt! b nctIt

p’ r t1:) CSILB1JICS fltflh uc RcUUter:1mpca .1sfljIwçkan , ptb.tIiJ in •\uuut...: i I : y J .\ S CU ic • of \ir V i.LflU nRI S nc)ard. \ ti :i’ c it s.2:: ‘ 1’ :c C t:np %i c:

I H \ fl nIisiI nul nit i n I+it in:patt Jt’ .1\ t. ) SCu tt Iioii I ‘S . I ‘ br t a: tI r do.cuion I o b ton. cr a:i’..

I )()I is p iii• a.i1 us:nC : n 11h30 d bc c t It:t 1tOt t t1IIt fl or SC 3 rttct1 : i un the I etnctty ( n. ratio u t on

t’tor :IsctI on n : ‘1 nU of pi ct!tiIrt 1)rt: tv Lcri c troiu Ilic \( N stud I K n k i : Kit) I C :hch% 1 1fL ron LNtPa:cs ‘. tc hacd on the Sx t i1 c. slud% c I 1)ttc C CtII. ‘ ? I I ) thc aloe’. w ;u1d bc ncark t no—

(t1(I—d—1i.d I I : fllt% In ‘ ter

ftitjl Ilenc ti Is I1r bch t!IC ‘-trCCfl1 Old CI t..tnt Ca C\ *0 C 0 C%L’fT.ed usho’ oo I tht t n te St t n :h pa t nt

thsconnt : .ilc.

2

Appendix B DOE Summaries of Economic Benefits and Costs

Table i3 Selected Categories of Economic Benefits and Costs of New EnergyConsci ‘ aflon Standards for Pot table kit Condtttoners* (TSL 2)

Present Value Dkcount Rate

Category ‘ .

Inlhon 2915$ Percent

Benefits

LX 7(:tstsiier (iperuting Ctmt Savings .

4. 1 3

( rH( : RLJtttt k’fl ( ttng is. ‘uti ii Lo%I% tt Y discount r ik) 0 2 5

( it t(1 Reduction (using asg. social costs at dKCOUfll ratc) IA) 3

(ii RI RetlUctiflil (using avg. social costs at disc(nlnt5

,

ratc)*;

Ci! IC Rcduction (using ¶)% percentile social costs at 3¼ , 9 3discount rate) ‘

(11)2 7

\th Rdt (MODt) 0%

1% 71L1aI HcneIits

,j 3

Costs

OS 7Consunicr Increnicutal Insblled (osts

,

[otal_Net_Benefits

Including ( hid and Mix Reduction Monct/ed Vahi& [ .—

. ...._

. Tins Lilic’ j9 ‘4JflS ( tie to %ud hint tit t LkI \% h jo; tJl)IL 5t. uippLd in •N C’2—1L’ I T1i i L t Iicnci fl ‘4 T 0 t os> . Itrs j ti Ii : Ct’1 .. Ii L t •‘05 I fl cn tic prttIiic \h ju’d n 2 ) 1—2t)5 I T i t i cncIiLtI fls[J lc1t tfl’ ‘ 9CI udt iflciVfl\111 aI Ct[Lt1flfl1CU tOsi ., fz 1U1J I ion rJ11 U()%S •Itc :01 r!’e a : ncnCitI h t’d U4I ‘. t t;r c1 h\ H’ lilt! I J( U Sc 1 1uc to ib c r)rt’ri\c(I % indard. scunc of h tL ri b’ r u rrcd n prt prtit on

:oi t1 [LIC. I 11c ( IK(j : cd tc1oI I’t. nci1s ii c Iob I bt’nc o U tic icUoiis :i;it occti It :flcst itjHsfr t I ic iflL rarci:c L. oup cLcicd loi:r Nc: Sc —( t i. SC k I I . tic] S( —S() u1tic r uc in rc itiIaton ait>scs.

I hi ‘ ‘tS L zdta :‘ ifc 1ijscd on • lic t’rotc ic I co is Iron’ h n 1t&ritcJ a c \nicnt niodch. i1 UitOtti!t :atc I S

it ;cc:1. pccciiL. nd 1 j’crccnI I •ic totzrtli t’t \% ticn r nN 11t ct ‘rt chili1 O th SC—C C) IitribtitontilciiIUcd using -jciccnt dicotint ric. s incLtitict to n.pr sn{ :: cr—ttin—cxpc1cci pats )ifl chzratc t lanuc

.

ii I tIcr t :a ii the tai 1÷ o the soc at ccot tii ihunons. I tic sot at t tit ‘ ucs arc cni i sion t ir spec tic Sc cC t clii

I I . I ct’ hi :otiiirciit 01 mo:c dctiiI\.I ‘4 H i inlLcct t hc rlc)nc I iiccl \ ;i:c 0 1 \t ctnic.onc j cIiicI c)i1 i%,clcOed ib c ç-c;ric I t ct; in c is ing hcrc it pcr

t iii ci iiiiL n n hc IZcniII;iiclis ii’j) id rd %I for he ( L ill I1 cijU j [ ial 1? uic P’l i:%lietl in \: i 4i 21 1 1 5

I j)\> ( HUce ot.\n ()iiaht 1Niiiniii: aiid Siiihir!s. i \c:IihIc ti cccs cci4lo:cLj1iiL tJc

ni 1 id _j I i L. mi ci U _ i ) ILL tL tHi I”. {t I ii I fL IiLti it) IIIIIIILI tutU Sic} I T)1’1[ i 1)1 II i

U in i iiiituiiI; I1Ltic t!cr—iclii cstn inc Ot \() .ifll ICU Ii otli ilic ccc I it’ \ tci ci ii i ii ckt&l1 riscLI on ii ci Hi i1 01

lrci hit ii rc irltlr’:,1ii \ dci I t) 1Iciii ilic ‘( S 1 k i c’ •s ski ciii (I(P) ), I I I:t Inn -1 a 1lc’i(i c’ Ii nuts c hi-d oii

111%: S i ( ii:cs %1tIk i I c’puclc LL.L ‘U I I ) lit: c , hitS otthl bc ;icii 1? : anci_.ii1 I i ii i cs 1atocr.

1: 1 it ii I 3 id I lOr hi ih !lc 3-pci c in i J —pc’rccni c ,scs 1 0 prcsc ii I ci tinig h ci icc oc w I co%ts % I III —JlcI cciii

b’(’0tiitI i&ic.

3

Appendix B DOE Summaries of Economic Benefits and Costs

table 1—3 Selected ( ategories of Ecoflonhic Benefits and Costs of Adopted Fncrgv( onscr ItiOfl Standards for the Considered \V I CF Refrigeration Systems (IS! .

3)%

Present Value J)Iscount Rate

(atcgorv .*,

1)111101) 2015S percent

Ken tilts

(onsumer ( )pcratin° Cost Savings . ‘ .

( I I K Rtciuttion ( usin ‘ i ‘ %t)tlaI tot% U “ di’cotirit**

%OA

t:IEC)

( d I( ; Rcduction ( using a g. soCial costs at ‘ discountra1e)

I

( ; I ft ; Iteduction ( using :i g. social costs <U 2.5 a tliscount , 7 ,

rate)

C ; ic; Reduction ( using 95 iiercentile soetal costs at 31)n ç

tltseüiin( rateY*

, GA) 7\O Reductiont

01 ..

Us 7I QtUI Benefits: . — “ .

,.o I

(‘osts

1)] 7C onsuruer Increnietital Instalted C ost

(I otal Nct Benefits

Including C ii IG and \‘O\ Reduction \loncti,ed \ aluct

w Fl) ‘ tJhle prccn R the ccst and bnctn s st’c ied au tonsidcrcd \V It ‘F rt t rItcfIE ion ‘ ‘ sterns h ippttl ii

Dr 1u—D() V; fhce ‘ %uIt\ inth dc benc tit& :o ccn%lIcrs )utt &‘ccrtic 2019 tronl lile 01111C1\ tI!1I1)..ki rI

2C1( —u ;. I he nc rttucnl d n’taI itt) tic ude n. z ni ental t.ut prncnt s ; c t : ta1 I ntutt t’ ts. I ti. o %1S

‘ IL•c k’:rt 14 Ii I }‘.. ti efl1e141 I anible lflkI t ;d e rcut rcd Ii> i’nti tacturcr% 1+ii: tilt: .h!otI:LJ : tfl*th js c’tfl1C 0

\‘ ii it i n;: ‘ he u is, i t k: ii r on tt’1’ t R’ • tI’ I t’ ( ) I Li i %:kJLI t On I’ ‘tic ‘tt’ 1&I} b’’nc t:s due tt jç icn

iLt’ut’ dotfl’%tIL tI1:% ,ara1cr!t ‘ J” ‘up IC( 14 d our S*s of’ “(‘t () ‘ S( ‘( E I . id sc’— N ) d uc or u%’ in t Lrul fl ‘1 s u

I hi l o f \ i lilt. s U C hicJ ()fl JIC at ct H.IC sOt iI tc I ‘i I ‘H t’ fl(c’C )k ii IaC’t’It’flt ttlc)(IC I r’ h’ o 1’;ltrct*fl 3 pc ‘9it at1 2 pcr ‘iit t IlL I k’ulII w I ic i t’!IrccTII lIft’ ‘)‘I’ ‘ )3T u’iuit Ut ‘ L’ sut’id t t &t’si tiut itris

calctihatd t. ing a pcrctn:t dkc’otii rttt. uiciudcd to rcprcstnt ‘i1!icr {1’:ILC\1ICCtCd ‘ apacts ruin t Ini’atc uIanz’

In I h er ‘ U in the tai o I i t: c c;t’jl cost tisaibtii lkl!’, I bc ‘t’it I 1 tot ‘ ‘‘cs tTt tni I scin yar spec it’. S’’ sc t;cul

1\ LI :r itore Jcta:Is.1’ [ )C)E ‘t ni+ d the r’arictizcd i :4L’ if \( ) cirti so]I I Ctitit’tOUS J ‘O*. *titcd ;tth c1ccnt tt in’’s t:iig hi: I i p’rton ct Ti 4ite I r&Ii lIt tZcu nor\ I n p wt \ra[ss c tor ‘ us C c:uI Pt’ yr i>1l 1 ma) Ru’e. pub! . II’i a \CkIt 2’ by

L P.\’ (N Ike ut \tr ()t1 t 1>ItItniIi% iiid Sra:cIkIds I \ I[IlItt tI \ qt.go :c c ripot c’j Ia,i- j’Jç’j’j.jftI\ CI [I 1I:

HI U C— vgt: 1Cory I ;1r1k ! ‘ J_>2iL:. ) ‘tc St I :iün I ‘v t\i s tor urtltcr Clst’tIssiL’J1. I o be t (SL’f\ t t I )( )t i’

; I Iri I\ U ing t n.j t itunil ht’ic: ti—pr—t1 ‘ ‘ { in ‘.ilc fLIT \(‘)\ clint tCd ‘ i 4M 1 the t t’ t c i lv gc i)C’ d t kin ‘Ct }i bJ t’I tin 4t11

‘ ‘i ‘ fl’LItt’ J l’rCrIJtLt’c fllciltJ ‘ i LV Lri t cii troTh tile ‘CS s tlcl ( KrC% ki t.t.d ..t it P) ). ) lilt bCflt’ it pt. r—tt n ‘ t i1Iue1b tr ‘ b i’’’I qj lilt’ SI\ ( ‘fits stutk ( [CJ’UCIC CICI t) I I t the, ; a! icc Vt’fl{ILI I)c’ 1tJ’I\ Ciinie larLir.; I owl lJcn:fi’s br bt’ti the i—ntr ‘rn and rercut.t CIsCs are Irc%Culed tt:nt te a cr tgc sociit ctt ith —ptrccnt

discount rtt

4

Appendix B DOE Summaries of Economic Benefits and Costs

Table 1—3 Stlected Cat?guries uf Economic Benefits and Costs o•i Adopted Fzn.rgy( OIThCr atiøn Standards tot I P%

“*Present Value I)iscount Rate

Category * +- bithori %(}I5$ perccnt

Benefits‘+8 7

Consuiiict Operatirm Cost Savins :%- ib 3

( C) RU JttIOfl (usti g ng S( 4 C) U n dNOt1flt rilt) (1 7 N

( U Rtduuion ( iiir n +. S( —1 0 fl 3 i dbcoant r ftc. ) I 7 3

C 0 Rtdattitrn tti’irg a’&’ SC 4 0 at 2 ttsiotmt raul 2 6 2 5

CC);1 Reduction (using %5 percentile SC—(X)2 at 3% discount 5+0rate)”

? 4 006 7g)N Reduction n:f! “fl””

“.!.!.+ !

45 7Total Benefitst ..+; .

(:0545

14 7

(:oncLmnIer Incremental Installed Costs ......... ... ! !

Total_Net_Benefits. ‘ . . . . + , 3+1 7Including (0: afid NO Reduetton Nioneiwecl Valuet

l 8 .

I’hi+ uhle tIIC C(? flt! cncUts oea:etI rh I I’’s s!uppeJ in 201 )—204s. I hese r\ tilts include hcntLIKIc’ cn unicrs ;s h ci +wcr;:c after D04?+ the products purt’Inst’I In 10 I )—t)4X. I he rne :tat :t:I1led costs

tttc LUJ+ flcrtfltttfli1 q ittpt:cnt co t aS ‘ cli iit+ta LttOfl t tsts, I he co ts at count tot the tncrctn+,nnal n iat, c

,i ‘: cd co ts I 1CUI r d by :int3 tactuicr iftt to t :ic piopo+.il +t:tdarc+s otic ot \ I’ Rh may hc inc an cJ ti rrcP+1rttI1I ftf

the rue. I ic t () cdut ton bc ne1it rc obzt1 hi netits titte to at tions thut Ut tt+r t:t c t i++d y.* t K inlcra’crtv grout cIct1cL tour scts & S( —(( h s’:t;c tor UL ti runLnr\ atitb,’scs. thic.c cts ol ‘ihec ac

nas;+t rt tac ncr+tte S( —C i) t:oiv ihe vcs.r ilcd asc%tnc1t n+ottels. at discoun: raics ot N pcrt+cnt. pcrccnt. art 1 S

ilc* cct. For cr;ij’Ic. ior 7i ‘() ‘2s hi%c It’ ‘1 c S I : S t. I t. nid \h1L) t to 20 : + t “‘pcct + +1 I hc:t:t ii: +ct ( 5 1 ‘I I Hi 4) 1 ‘N or +t) 5 tJk!tS )+ 0+ tcti t cptcscnl 5 t:ic tj5 pr.t crttdt. 01 thc St ( ( F’ dt i t but onc+tlciil ited 1sit t •t--t)c1 tc t di OUtIZ t tc+ ts iicItuJI It) rcp; cscl:t ii : tcr—flta;i—’ ‘spcctctt itrtptcts tori i. sn tc LI

+muihr OOt 111 ItL tU ii: SU—( t) dktti1titot. I :cc scc:’( I ‘ attics tit ‘. in:ston \car spcci Bc. Scc ct I+on IV I. I01 It ‘IL’ tI+ tai Ic.: I w I c%unu:cd i hc T100cti0’ccl \:ç o \c) cnii tfl5 r I nd ot’ s +s-i c jç(j 1 c’Icc: r icit s +t\ r’5 :sHu.. hcrc t p’r

t on c+t i;r it ‘.+ ‘ro U hc I{+%uI atorY [njact . \i:aI; so+ Ii ( :c%:1 I ‘ P!an F nttl Rtic+ publishcd In \:git 20 1 ‘ I’v

1.1’ \ s (il Icc tit .\ir i)uaIt; P linninc and Sttt+ro%. f \v+ItbIc at : o. 1.) ‘.. ‘:. ‘ i ‘

2+:j • t : Set ccflcfl1 IV I+.2 br ft ithcr dtttI%sIon. rncI)t )I’ 34 p tn

tistlig a jiti&na hcnLi::•pcr:on cs+Irutc !or \( \ L +ttcd IoI Itic elccric::s !cncrann2 cctor tscd on ;ii cuniate 0

ircjntt nrc n.tt’n +i I i Lv dci ned It o i +ht ?.t ‘S r ads K re sk k ct+.iI. 14 )t J ) I t tht ht n: titpcroti Cst tnite+ cre I tttI sit

tti+: S\ 1 ttL 1iIJ\ 4 1 .cIMILL ct+: {I I ). he alucs %oI1Id be tica Iv ‘o ntt—a—iaI tnvc Iar cr.

: I ot I I%LtI 1 : kn hti the 3—5ict tcnt riLI 7pctt crt c ic+ i c 1 ‘cnlctl tion the t ci a:c S( 4 () Ii pci t cnttit t.cttifl rate.

5