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In 2014, the Department of Energy (DOE) issued a rule setting performance-based energy conservation standards for a variety of walk-in cooler and freezer (walk-in) components. See 79 FR 32050 (June 3, 2014). That rule was challenged by a group of walk-in refrigeration system manufacturers and walk-in installers, which led to a settlement agreement regarding certain refrigeration equipment classes addressed in that 2014 rule and certain aspects related to that rule’s analysis. See Lennox Int’l v. DOE, Case No. 14-60535 (5^th Cir. 2014). Consistent with the settlement agreement, and in accordance with the Federal Advisory Committee Act, a working group was established under the Appliance Standards and Rulemaking Advisory Committee (ASRAC) to engage in a negotiated rulemaking to develop energy conservation standards to replace those that had been vacated by the U.S. Court of Appeals for the Fifth Circuit. As a result of those negotiations, a Term Sheet was produced containing a series of recommendations to ASRAC for its approval and submission to DOE for the agency’s further consideration. Using the Term Sheet’s recommendations, DOE is proposing to establish energy conservation standards for the six equipment classes of walk-in coolers and walk-in freezers that were vacated by the Fifth Circuit and remanded to DOE for further action.  Those standards at issue involve: (1) the two standards applicable to multiplex condensing refrigeration systems operating at medium and low temperatures; and (2) the four standards applicable to dedicated condensing refrigeration systems operating at low temperatures. Also consistent with the settlement agreement, DOE will consider any comments (including any accompanying data) regarding any potential impacts of these six standards on installers. DOE will also consider and substantively address any potential impacts of these six standards on installers in its Manufacturer Impact Analysis, consistent with its regulatory definition of "manufacturer," and, as appropriate, in its analysis of impacts on small entities under the Regulatory Flexibility Act. As part of this rulemaking (and consistent with its obligations under the settlement agreement), DOE will provide an opportunity for all interested parties to submit comments concerning any proposed standards. DOE will use its best efforts to issue a final rule establishing the remanded standards by December 1, 2016.

Statement of Need:

DOE is required under 42 U.S.C. 6313(f) to establish performance-based energy conservation standards for walk-in coolers and freezers. This rulemaking is being conducted to satisfy that requirement by setting standards related to certain classes of refrigeration systems used in walk-in applications.

Summary of the Legal Basis:

This rulemaking is being conducted under DOE’s authority pursuant to 42 U.S.C. 6311, which establishes the agency’s legal authority over walk-in coolers and freezers as one type of covered equipment that DOE may regulate, and 42 U.S.C. 6313(f), which requires DOE to conduct a rulemaking to establish performance-based energy conservation standards for this equipment.

Alternatives:

The statute requires DOE to conduct rulemakings to review standards and to revise standards to achieve the maximum improvement in energy efficiency that the Secretary determines is technologically feasible and economically justified.  In making this determination, DOE conducts a thorough analysis of the alternative standard levels, including the existing standard, based on the criteria specified by statute.

Anticipated Costs and Benefits:

DOE finds that the benefits to the Nation of the proposed energy standards for walk-in coolers and freezers (such as energy savings, consumer average lifecycle cost savings, an increase in national net present value, and emission reductions) outweigh the burdens (such as loss of industry net present value).  DOE estimates that energy savings from electricity will be 0.90 quads over 30 years and the net benefit to the Nation will be between $1.8 billion to $4.3 billion. 

Risks: