MEEA Policy Webinar:

National Study on the Energy Savings of

Appliance Standards

March 29, 2012

Agenda

• Introduction

• Review of the national study, The Efficiency

Boom: Cashing In on the Savings from

Appliance Standards

• Midwest Perspective

• Discussion

Midwest Energy Efficiency Alliance

• MEEA is a collaborative

network whose purpose

is to advance energy

efficiency to support

sustainable economic

development and

environmental

preservation.

Our Members Are…

Diverse stakeholders in energy efficiency

– Academic/Research Organizations

– Manufacturers/Retailers

– State and Local Governments

– Utilities (Investor-Owned, Municipal, and Co-operative Utilities)

– Energy Service Firms/Consultants

– Leading Nonprofits

– General Interest/Professionals

Estimated Annual Investment in Energy

Efficiency in the Midwest

EERS

Legislation

• IL Electric

• MN Electric,

Gas

EERS Legislation

• MI Electric,

Gas

• OH Electric

Exec Order

• IA Gas,

Electric

EERS

Legislation

• IL Gas

Admin Order

• IN Electric

Admin Order

• WI Electric,

Gas

Earlier Statewide EE

• WI

1999 - Public Benefit

Fund Adopted

Earlier Statewide EE

• IA

1990 – Initial legislation

1996 – Legislation

updated

Earlier Statewide EE

• MN

1983 – Pilot legislation

1991 – CIP requirement

adopted

Legislative

Committee

• WI EERS

overturned

$1.191

$0.390

$1.581

$0.000

$0.200

$0.400

$0.600

$0.800

$1.000

$1.200

$1.400

$1.600

$1.800 2

00

0

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

2011

20

12

20

13

20

14

20

15

Bill

ion

s

Future Midwest Efficiency Targets and Funding

2010 $1.06 billion

2015 $1.58 billion

2010 EE funding

2015 EE funding

(projected)

May 2011

Illinois 2% elec by 2015

1.5% gas by 2017

Iowa 1.4% elec currently

1% gas currently

Wisconsin 0.7% elec currently

0.4% gas currently Michigan 1% elec by 2012

0.75% gas by 2012

Ohio 2% elec by 2015

gas in discussion

Indiana 2% elec by 2019

gas none yet

Minnesota 1.5% elec current

1.5% gas current

Missouri IRP process

Kentucky Voluntary elec and gas

Residential Building Energy Code

Adoption in the Midwest As of March 2012

*

No Mandatory

Statewide Code

Code Level / Equivalence

2006 IECC

2009 IECC

2012 IECC

2009 Adopted by Major

Municipality

* In Process to 2009

Eff.

03/12

Eff.

07/12

* In Process to 2012

*

Commercial Building Energy Code

Adoption in the Midwest

No Mandatory

Statewide Code

Code Level / Equivalence

90.1-2004

90.1-2007

90.1-2010

90.1-2007 Adopted by

Major Municipality

As of March 2012

Eff.

07/12

*

* In Process to IECC

2012 / 90.1-2010

MEEA Policy Webinar

March 29, 2012

National Study on the Energy Savings

of Appliance Standards

Marianne DiMascio, Appliance Standards Awareness Project

Amanda Lowenberger, ACEEE

Agenda

• Introduction

• Overview of appliance and equipment standards

• Report findings • Savings data

• State tables

• Product info

• Midwest issues

Appliance Standards Awareness

Project

• ASAP is dedicated to increasing

awareness of and support for appliance

and equipment efficiency standards

• Coalition-based approach

• Founded in 1999

ASAP Steering Committee

• American Council for an Energy-Efficient Economy*

• Alliance to Save Energy*

• Energy Foundation*

• Natural Resources Defense Council*

• Alliance for Water Efficiency

• California Energy Commission

• Consumer Federation of America

• Earthjustice

• National Consumer Law Center

• Northeast Energy Efficiency Partnerships

• Northwest Power and Conservation Council

• Pacific Gas and Electric Company

*Founders

The American Council for an

Energy-Efficient Economy (ACEEE)

• ACEEE is a nonprofit dedicated to advancing energy efficiency through research, communications, and conferences

• Focus on:

– End-Use Efficiency in Industry, Buildings, Utilities, and Transportation

– Economic Analysis & Human Behavior

– State & National Policy

Appliance Standards – The Basics

• Minimum energy and water efficiency levels for appliances and equipment

• National level - standards apply to the manufacture and import of products

– About 55 products now covered

• State level – standards apply to sale or installation of products

Federal/State Interplay

• State standards have often led to strong federal standards

• California historically has taken the lead

• 16 states have passed state standards (none in the Midwest)

• In general, federal standards preempt state standards

The Efficiency Boom: Cashing in on

the Savings from Appliance Standards

The ASAP/ACEEE report:

• Estimates impacts of existing national standards

•

• Estimates impacts of potential new and updated standards for 34 products

• Provides national- and state-level impacts

• Provides individual product discussions

What if There Were No Standards?

3000

3500

4000

4500

5000

5500

2011 2016 2021 2026 2031

Ele

ctri

city

co

nsu

mp

tio

n (

TWh

)

Electricity consumption without existing standards

Projected electricity consumption with existing standards (EIA 2011)

Electricity consumption with potential new standards

Savings from existing standards

Energy Savings from Existing

Standards

Peak Demand Savings

Trillion Dollar Savings

Water Savings from New Standards

CO2 Reductions

Consumer Impacts

Midwest Benefits

With new and updated standards, the midwest could save:

Cumulatively through 2035:

• 11 quads

• $40 billion NPV

In 2025 (annual savings)

• 54,000 Gwh electricity

• 10 GW peak demand

• 50 trillion Btu

• 35 million metric tons of CO2

State Benefits

• State-by-state benefits of potential new

standards

• Energy and water savings, peak capacity

reduction, $$ savings

• Interactive map online

http://www.appliance-standards.org/map/benefits-from-federal

From Estimates to Savings

• The savings are estimates based on ACEEE/ASAP proposed standard levels

• Actual savings will depend on action by states and DOE

• Stakeholder involvement is key – Provide data from programs

– Get involved in national standards-setting process (sign or send letters, attend hearings)

– Move state standards forward

Products

34 Products Evaluated

Residential Commercial/Industrial Lighting

Air handlers Battery chargers Boilers (natural gas) Clothes washers Computer equipment* Dishwashers External power supplies Faucets* Game consoles* Microwaves Set-top boxes* Televisions* Toilets* Water heaters

Air cooled AC Automatic icemakers Clothes washers Distribution transformers Electric motors Fans, blowers & ventilation equipment* Warm air furnaces Pumps* Pre-rinse spray valves Refrigeration equipment Walk-in coolers and freezers Unit heaters Urinals*

Candelabra & intermediate base incandescent lamps General service fluorescent lamps HID lamps Incandescent reflector lamps (2 categories) Luminaires* Metal halide lamp fixtures Outdoor lighting fixtures*

* Appropriate for state or national standards

Top Ten Energy Savers

(new standards)

• Product Cumulative Quads (through 2035)

•

• Residential electric water heaters 4.1

• Incandescent reflector lamps 3.9

• Residential air handlers 2.9

• Walk-in coolers and freezers 2.4

• Distribution transformers 2.3

• Outdoor light fixtures 2.3

• Set-top boxes 2.3

• Electric motors 1.9

• Computers and monitors 1.7

• Candelabra & intermediate base 1.3

incandescent lamps

Sample Product Discussion Outdoor Light Fixtures (Pole-Mounted) Product description: Outdoor light fixtures (or outdoor luminaires) are light fixtures intended for outdoor use and suitable for wet locations. Pole-mounted outdoor light fixtures are designed to be mounted on an outdoor pole and include area luminaires (for parking lots and other general areas), roadway and high-mast luminaires, decorative post-top luminaires, and dusk-to-dawn luminaires. Key statistics: Annual shipments: 6.6 million Current standard level: No national or state standards Potential standard: We analyzed standards for pole-mounted outdoor light fixtures equivalent to a fixture efficiency of 80 lumens per watt. This would result in 18% savings. The incremental cost is $40, with an 18 month payback period. Status: No DOE rulemaking underway; proposed for consideration in the current California Energy Commission docket by stakeholders. Estimated DOE final rule: 2014 Estimated DOE effective date: 2019 Estimated CEC final rule: 2013 Estimated CEC effective date: 2014 Annual savings in 2035: 26 TWh Net present value savings: $14 billion

How Were Savings Determined?

• Proposed standard levels are cost-effective

• Proposed levels were chosen by a variety of methods: – Negotiated agreements

– ENERGY STAR levels

– State levels

– Consultation with experts

• Used national average retail energy and water prices for national savings; used state prices for state savings

• Took into account % of market that already meets proposed standard

Clothes Washers

• Waiting for DOE direct final rule based on 2010 negotiated agreement

with AHAM (Association of Home Appliance Manufacturers)

– Effective date 2015

• Annual savings in 2035: 7 TWh; 34 trillion Btu; 24 billion gallons of water

• Incremental cost of $57 and 2-year payback period

MEF (modified energy factor; higher better)

WF (water factor ; lower is better)

Top-loading Tier 1 (2015) 1.72 8.0

Top-loading Tier 2 (2018) 2.0 6.0

Front-loading (2015) 2.2 4.5

Unit Heaters

• Current standard prescriptive - interrupted or intermittent ignition device (IID) and either power venting or automatic flue damper; most have 80% thermal efficiency

• Proposed standard level at 90% thermal efficiency (condensing technology)

• Estimated DOE final rule 2013/effective 2016

• Annual savings in 2035: 120 trillion Btu; 58 Tbtu in 2025

• Incremental cost of $2640 and a 10 year payback period

Commercial Warm

Air Furnaces

• Current standard is 80% thermal efficiency (same as ASHRAE 90.1) but without prescriptive requirements

• Potential standard would include prescriptive requirements (IID, jacket losses < 75%, power venting or flue damper)

• Incremental cost of $300 with 5.5 year payback

• Estimated DOE rule is 2013/effective 2016

• Annual savings in 2035: 7.7 trillion Btu; 4.2Tbtu in 2025

Natural Gas Boilers

• Current standard is 80% AFUE for steam; 82% for hot water

• Potential standard based on condensing boilers with advanced controls; about 20% savings

• Incremental cost of $900 paid back in about 7 years

• Estimated DOE rule 2015/effective 2020

• Annual savings in 2035: 40 trillion Btu; 14Tbtu in 2025

Set-top Boxes

• No state or national standards; – DOE rulemaking began December 2011

– CEC likely state standard in June 2013

• 5-year lag time between expected adoption (2013) and effective date (2018)

• Potential savings of about 60%

• Cable and satellite companies provide to STBs to consumers

• Potential for voluntary agreements to increase energy efficiency for STB

Key Points for the Midwest

• Large energy savings from standards: – Lessen demand for new power plants;

– Contribute to CO2 reduction goals

• New standards may impact utility programs

• Opportunity for state standards in 2013-2014

• Stakeholder involvement needed to realize savings

Additional Products

Gas Furnaces

• Effective date for DOE standards:

– Non-weatherized – May 1, 2013;

– Weatherized – Jan 1, 2015

• 2 regions

– north 90% AFUE; (includes all MEEA states except Kentucky)

– south 80% AFUE (Kentucky included here)

• Link to DOE furnace standards

Central AC and Heat Pumps

• Effective date for DOE standards

– Central A/C, HP – Jan 1 2015

• 3 regions:

– North; South (hot, humid); and Southwest (hot, dry)

• Many product classes (2 listed here)

North South Southwest

Split-System SEER = 13 SEER = 14 14 SEER EER 12.2 < 45,000 Btu/hr EER 11.7 >45,000 Btu/hr

Single-Package SEER = 14 SEER = 14 SEER = 14 EER = 11

Enforcement of Regional Standards

• Ongoing rulemaking at DOE & FTC to determine how to:

– Enforce regional standards

– Label products

• DOE proposed 3 approaches with varying notification and information requirements for manufacturers, distributors, and contractors

• Possible waivers where installations not technically feasible or prohibitively expensive (for furnaces)

• For further info, see the DOE framework document

Contact Info

Marianne DiMascio

Outreach Director, ASAP

781-312-8999

mdimascio@standardsasap.org

www.appliance-standards.org

Amanda Lowenberger

ACEEE

202-5070-4039

alowenberger@aceee.org

www.aceee.org