docketed ings where there exist common questions of fact and law, and where such consolidation would expedite or simplify consideration of the issues. Consolidation shall not affect the right of any party to raise issues that could have been raised if consolidation had not occurred.

§ 430.46 Hearings and comments of interested persons.

(a) The Secretary shall hold a public hearing to afford interested persons a reasonable opportunity to present oral data, views, and arguments with respect to the proposed rule, and publish notice in the FEDERAL REGISTER of the date and location of the hearing. A transcript shall be kept of the hearing.

(b) The Secretary shall accept written comments from interested persons with respect to the proposed rule. § 430.47 Evaluation of petition.

(a) In evaluating a petition submitted pursuant to section 327(b)(1) of the Act, the Secretary shall issue a requested rule only if the Secretary determines:

(1) There is no significant State or local interest sufficient to justify such regulation; or

(2) Such State or local regulation unduly burdens interstate commerce.

(b) In evaluating a petition submitted pursuant to section 327(b)(3) of the Act, the Secretary shall issue the requested rule only if the Secretary determines:

(1) There is a significant State or local interest to justify such regulation; and

(2) Such State or local regulation contains a more stringent energy efficiency standard than such Federal standard;

except that the Secretary may not prescribe such rule if he finds that such State or local regulation would unduly burden interstate commerce.

§ 430.48 Disposition of petition.

(a) The Secretary shall prescribe a final rule or deny the petition within 6 months after the date the petition is filed, except that the Secretary may publish a notice in the FEDERAL REGISTER extending such period to a date

certain. Such notice shall include the reasons for the delay.

(b) The final rule issued by the Secretary or a determination to deny the petition by the Secretary shall include a written statement setting forth the factual and legal basis for the decision. A copy of the Secretary's decision shall be sent to either (1) the petitioner and the affected State or local agency if the petition is for a rule to supersede a State regulation, or (2) the petitioner and all persons subject to the State regulation who have submitted comments if the petition is for a rule not to supersede a State regulation. The Secretary shall publish in the FEDERAL REGISTER a notice of the final rule or a notice of the denial of the petition and the factual and legal basis for the decision.

Sec.

436.105 Emergency conservation plan. 436.106 Reporting requirements. 436.107 Review of plan.

436.108 Waivers.

APPENDIX A TO PART 436-ENERGY CONSERVATION STANDARDS FOR GENERAL OPERATIONS [RESERVED]

APPENDIX B TO PART 436-GOAL SETTING METHODOLOGY

APPENDIX C TO PART 436-GENERAL OPER

ATIONS ENERGY CONSERVATION MEASURES APPENDIX D TO PART 436-ENERGY PROGRAM CONSERVATION ELEMENTS

AUTHORITY: Energy Policy and Conservation Act, 42 U.S.C. 636.1; Executive Order 11912, as amended, 42 FR 37523 (July 20, 1977); National Energy Conservation Policy Act, Title V, Part 2, 42 U.S.C. 8241.

SOURCE: 44 FR 60669, Oct. 19, 1979, unless otherwise noted.

§ 436.1 Scope.

This part sets forth the rules for Federal energy management and planning programs to reduce Federal energy consumption and to promote cost-effective investments in energysaving alternative building systems, energy-saving new building designs, and use of solar and other renewable energy sources. These rules are required or authorized under section 381(a)(2) of the Energy Policy and Conservation Act, 42 U.S.C. 6361(a)(2), section 10 of Executive Order 11912 as amended, 42 FR 37523 (July 20, 1977), or Title V of the National Energy Conservation Policy Act, 42 U.S.C. 8241.

§ 436.2 General objectives.

The objectives of Federal energy management and planning programs

This subpart establishes a methodology for estimating and comparing the life cycle costs of Federal buildings and for determining life cycle cost-effectiveness. The methodology evaluates the economic consequences of investments in alternatives building systems for existing Federal buildings and alternative building designs for new Federal buildings under Subpart C of this part, and in solar hot water, solar heating or solar heating and cooling projects, and photovoltaic utilization projects, for Federal buildings under Subparts D and E of this part. § 436.11 Definitions.

As used in this subpart

"Alternative building system" means an energy conservation measure, as defined by this section, including a renewable energy system, for an existing Federal building, or a primarily energy saving building system, including a renewable energy system, for consideration as part of the design for a new Federal building.

"Base Year" means the year in which a life cycle cost analysis is conducted.

"Building"means any structure with a roof and walls designed for storage or human use.

"Building system" means any portion of the structure of the building or of any energy-using system in the building.

"Component price" means any variable sub-element of the total charge for a fuel or energy, including but not limited to such charges as "demand charges," "peak charges," "off-peak charges" and "seasonal charges."

"Demand charge" means that portion of the charge for electric service based upon the plant and equipment costs associated with supplying the electricity consumed.

measure"

"Energy conservation means an installation or modification of an installation in a building which is primarily intended to reduce energy consumption or allow the use of a renewable energy source, including, but not limited to

(a) Insulation of the building structure and systems within the building;

(b) Storm windows and doors, multiglazed windows and doors, heat absorbing or heat reflective glazed and coated windows and door systems, additional glazing, reductions in glass area and other window and door system modifications;

(c) Automatic energy control systems;

(d) Equipment required to operate variable steam, hydraulic and ventilating systems adjusted by automatic energy control systems;

(e) Solar space heating or cooling systems, solar electric generating systems, or any combination thereof;

(f) Solar water heating systems;

(g) Furnace or utility plant and distribution system modifications including

(1) Replacement burners, furnaces, boilers, or any combination thereof, which substantially increases the energy efficiency of the heating system;

(2) Devices for modifying flue openings which will increase the energy efficiency of the heating system;

(3) Electrical or mechanical furnace ignition systems which replace standing gas pilot lights; and

(4) Utility plant system conversion measures including conversion of existing oil and gas-fired boiler installations to alternative energy sources, including coal;

(h) Caulking and weatherstripping; (i) Replacement or modification of lighting fixtures which increases the

energy efficiency of the lighting system;

(j) Energy recovery systems; and

(k) Cogeneration systems which produce steam or forms of energy such as heat, as well as electricity for use primarily within a building or a complex of buildings.

"Existing Federal building" means a Federal building the construction of which was complete by November 9, 1978, or the design of which cannot feasibly be modified after the effective date of Subpart C of this part.

"Facility" means any group of closely located buildings, none of which is individually metered for all energy sources and for which the actual rate of use of all energy sources can be determined.

"Federal agency" means an Executive agency under 5 U.S.C. 105 (1970), the United States Postal Service, and each entity specified in 5 U.S.C. 5721(1) (B) through (H) (1970).

"Federal building" means any building, structure or facility which is constructed, renovated, leased or purchased in whole or in part for use by the United States, and which includes a heating system, or cooling system, or both.

"Investment costs" means the initial costs of design, engineering, purchase, and installation exclusive of sunk costs.

"Life Cycle Cost" means the total cost of owning, operating and maintaining a building over its useful life, including its fuel and energy costs, determined on the basis of a systematic evaluation and comparison of alternative building systems; except that in the case of leased buildings, the life cycle cost shall be calculated over the effective remaining term of the lease. "Liquid gas" means propane, butane, ethane, pentane, or natural gasoline.

"New Federal building" means a Federal building for which construction was not completed prior to November 9, 1978, and the design of which can be feasibly modified after the effective date of Subpart C of this part.

"Non-recurring costs" means costs that are not uniformly incurred annually over the study period.

"Non-fuel operation and maintenance costs" means material and labor costs for routine upkeep, repair and operation exclusive of energy cost.

"Recurring costs" means costs that are incurred uniformly and annually over the study period.

"Replacement costs" means future costs to replace a building system or any component thereof.

"Retrofit" means installation of an alternative building system in an existing Federal building.

"Salvage value" means the value of any building system removed or replaced during the study period, or remaining at the end of the study period, or recovered through resale at the end of the study period.

"Study period" means the time period covered by a life cycle cost analysis.

"Sunk costs" means costs incurred prior to the year in which the life cycle cost analysis occurs.

(1) Occupied under a short-term lease without a renewal option or with a renewal option which is not likely to be exercised;

(2) Occupied under a lease which includes the cost of utilities in the rent and does not provide a pass-through of energy savings to the government; or

(3) Scheduled to be demolished or retired from service within three years.

§ 436.14 Methodological assumptions.

Except in determining estimated simple payback time, each Federal agency shall assume:

(a) That the annual discount rate is 7 percent, without inflation, and shall adjust cost data accordingly by applying the appropriate present worth factors from the tables in Appendices A and B;

(b) That energy prices will rise at rates different from the rate of increase in the general price level, and shall adjust base year energy costs by applying the appropriate modified present worth factors of Appendix B, or by applying the annual compound price growth factors of Appendix C together with the appropriate present worth factors in Appendix A, except that

(1) If the Federal agency is using component prices under § 436.14(c)(2), that agency may use corresponding component real escalation rates provided by the energy supplier.

(2) For Federal buildings in foreign countries, the Federal agency may use a reasonable real escalation rate.

(c) That the price of energy in the base year is the actual price charged for energy delivered to the Federal building except that

(1) If the actual price is not readily available, the price of energy in the base year shall be the price for the appropriate region, sector and fuel type in Appendix C.

(2) A Federal agency may use actual component prices as provided by the energy supplier.

(d) That the appropriate study period is as follows:

(1) For evaluating and ranking alternative retrofits for an existing Federal building, the study period is the ex

pected life of the retrofit, or 25 years, whichever is shorter.

(2) For determining the total life cycle costs or net savings of mutually exclusive alternatives for a given building system (e.g., alternative designs for a particular system or size of a new or retrofit building system), a uniform study period for all alternatives shall be issued which is equal to

(i) The estimated life of the mutually exclusive alternative having the longest life, not to exceed 25 years, with appropriate replacement and salvage values for each of the other alternatives; or

(ii) The lowest common multiple of the expected lives of the alternatives, not to exceed 25 years, with appropriate replacement and salvage values for each alternative.

(3) For evaluating alternative designs for a new Federal building, the study period is the expected life of the building or 25 years, whichever is shorter.

(e) That the expected life of any building system is the period of service without major renewal or overhaul, as estimated by a qualified engineer or architect, as appropriate, or any other reliable source. The period of service of a building system shall not be deemed to exceed the expected life of an owned building, or the effective remaining term of a leased building (taking into account renewal options likely to be exercised).

(f) That the investment costs are a lump sum occurring at the beginning of the base year and constituting 90 percent of the actual investment costs;

(g) That energy costs and non-fuel operation and maintenance costs begin to accrue at the beginning of the base year; and

(h) That non-investment costs in any year occur in a lump sum at the end of the year in which they are incurred.

[44 FR 60669, Oct. 19, 1979, as amended at 46 FR 56720, Nov. 18, 1981]

§ 436.15 Formatting cost data.

In establishing cost data under §§ 436.16 and 436.17 and measuring cost effectiveness by the modes of