Source:

Lucy deButts BUILDING TECHNOLOGIES PROGRAM

March 22, 2013 

# Energy Conservation Standards for Ceiling Fans and Ceiling Fan Light Kits: Framework Public Meeting2 

# Welcome and Introduction

• Introductions • Role of the Facilitator • Ground Rules (Norms)

– Listen as an ally

– Use short, succinct statements/keep to the point

– Hold sidebar conversations outside the room

– Focus on issues, not personalities

– One person speak at a time (raise hand to be recognized; state your 

### name for the record)

– Set cell phones to silent/vibrate 

## • Housekeeping Items • Agenda Review • Opening Remarks3 

# Morning Agenda 9:00 – 9:05 am Welcome 9:05 – 9:20 am Introductions, Agenda Review, and Opening Remarks 9:20 – 9:30 am Regulatory History and Rulemaking Overview 9:30 – 9:55 am Scope of Coverage and Definitions 9:55 – 10:40 am Test Procedures and Metrics 

### 10:40 – 10:55 am Break 10:55 – 11:20 am Market &Technology Assessment, Screening Analysis 11:20 – 11:45 am Engineering Analysis4 

# Afternoon Agenda 11:45 – 12:45 pm Break for Lunch 

### 12:45 – 1:00 pm Markups and Energy Use Analysis 1:00 – 1:15 pm Life-Cycle Cost and Payback Period Analysis 

### 1:15 – 1:30 pm Shipments Analysis and National Impact Analysis 1:30 – 1:40 pm Manufacturer Impact Analysis 

### 1:40 – 1:50 pm Notice of Proposed Rulemaking (NOPR) Analyses 1:50 – 2:00 pm Questions, Comments, and Closing Remarks5 

### • Present potential issues with the test procedures for Ceiling Fans (CF) and Ceiling Fan Light Kits (CFLK).


### • Present the analytical approaches to be used to evaluate energy conservation standards for Ceiling Fans and CFLKs.


### • Inform interested parties of and facilitate the rulemaking process.


### • Provide a forum for public discussion of rulemaking issues. • Encourage interested parties to submit data, 

### information, and written comments. 

# Purpose of the Public Meeting6 

# Request for Comment

Issue Box: Although DOE invites comment on all aspects of the material presented here, several specific issues on which DOE seeks comment are set out in comment boxes like this one. DOE uses these comment boxes to highlight issues and 

### ask specific questions regarding the approaches DOE plans to follow to conduct the analyses required for the energy 

### conservation standards rulemaking.

• Issue box numbering corresponds to the list of items published in Appendix A of the Framework Document7 

## Instructions for Submitting Comments

• In all correspondence, please refer to this Residential Ceiling Fans and Ceiling Fan Light Kits Rulemaking by:

– Docket # EERE- 2012 - BT -STD-0045, and/or RIN 1904-AC87 • Electronic: CeilingFanLightKits2012STD0045@ee.doe.gov or www.regulations.gov • Postal Mail: Ms . Brenda Edwards U.S. Department of Energy Building Technologies Program, Mailstop EE - 2J

1000 Independence Avenue, SW. Washington, D.C. 20585 - 0121 • Courier: Ms. Brenda Edwards, 950 L’Enfant Plaza, SW., Suite 600 • Phone: (202) 586- 2945 

# Request for Comment

Comment period closes April 29, 20138 

# Opening Remarks

Interested parties who contacted DOE to request an 

## opportunity to issue an opening statement should speak now.9 4

2 1


### NOPR Analyses Overview Test Procedures and Metrics

5 

### Closing Remarks 

# Public Meeting Outline

3 

### Preliminary Analyses10 

# Overview: Regulatory History
• The Energy Policy Act of 2005 amended the Energy Policy and Conservation Act of 1975 (EPCA) by adding ceiling fans and CFLKs as covered products. (42 U.S.C. 

### 6295(ff))

− “Ceiling fans” and “ceiling fan light kits,” as defined by 42 U.S.C. 6291 (49) and (50), must meet the energy conservation standards specified in the Code of Federal Regulations 10 CFR 430.32(s). 

### • On October 18, 2005, DOE published a final rule technical amendment codifying statutorily-prescribed design standards for ceiling fans and energy efficiency standards for two product classes of CFLKs. 70 FR 60407, 60413. • On December 8, 2006, DOE published a final rule in the Federal Register for test procedures for ceiling fans and CFLKs. 71 FR 71340. • On January 11, 2007, DOE published a final rule technical amendment codifying 

### energy efficiency standards for a third product class of CFLKs. 72 FR 1270. • DOE is initiating this energy conservation standards rulemaking pursuant to 42 

### U.S.C. 6295(ff)(5) and (6) for CFLKs and ceiling fans, respectively.

− In addition to energy conservation standards, DOE will undertake a test procedure rulemaking for ceiling fans and CFLKs, pursuant to 42 U.S.C. 6295(r).11 2013 2015 2016 2019 Projected Energy Conservation Standard Compliance Date Q1 2019

2014 

# Overview: Rulemaking Schedule

Milestone Date Standards Framework Document March 2013 Test Procedure (TP) Notice of Proposed Rulemaking (projected) Q4 2013 Standards Preliminary Analysis (projected) Q1 2014 Test Procedure Final Rule (projected) Q2 2014 Standards Notice of Proposed Rulemaking (projected) Q1 2015 Standards Final Rule (projected) Q1 2016 Compliance Date (projected) Q1 201912 

### • EPCA directs DOE to consider seven factors for analysis when determining 

### whether a potential standard is economically justified:
• : 

# Overview: EPCA Factors

(42 U.S.C. § 6295(o)(2)(B)(i)(I)-(VII ))

EPCA Requirement Corresponding DOE Analyses 1. Economic impact on consumers and manufacturers • Life-Cycle Cost Analysis • Manufacturer Impact Analysis 2. Lifetime operating cost savings compared to increased product cost • Life-Cycle Cost Analysis 3. Total projected energy savings • National Impact Analysis 4. Impact on utility or performance • Engineering Analysis • Screening Analysis 5. Impact of any lessening of competition • Manufacturer Impact Analysis 6. Need for national energy conservation • National Impact Analysis 7. Other factors the Secretary considers relevant • Emissions Analysis • Utility Impact Analysis • Employment Impact Analysis13 

## Scope of Coverage 

# Overview: Ceiling Fans

• EPCA defines a “ceiling fan” as "a nonportable device that is suspended from a 

### ceiling for circulating air via the rotation of fan blades." (42 U.S.C. 6291(49))
• DOE is considering reinterpreting the definition of “ceiling fan” to incorporate hugger fans.


### • DOE is required to consider establishing a separate exempted product class for highly decorative fans for which air movement performance is a secondary feature. (42 U.S.C. 6295(ff)(6)(B)(ii))


### • DOE is considering including in this rulemaking fans that do not have external blades, but that produce airflow with a set of internal disks or blades.


### • Statutorily-prescribed design standards will remain in place.14 

# Overview: Ceiling Fans
• Ceiling Fan Types:

• Regulatory Definitions Under Consideration:

─ Hugger ceiling fan : “ a ceiling fan where the average vertical distance between the fan blades and the ceiling is no more than [a specified number of] inches. ”

─ Highly decorative fan : " a ceiling fan that circulates air via the rotation of fan blades at a maximum rotational speed of 50 RPM.“

─ Outdoor fan : a ceiling fan with either a wet or damp rating. 

### • DOE also plans to consider regulatory definitions for “standard fan” and “multi 

### mount fan.” DOE Ceiling Fan Type Functionality Market Description May Include... Standard Indoor Suitable for use indoors, in rooms

without low ceilings Standard, indoor, extended Hugger Suitable for use in rooms with low

ceilings Hugger, low-profile Outdoor Suitable for use in wet or damp

environments Outdoor, damp -rated, wetrated Highly Decorative Decorative only; air movement

performance is not a primary feature Decorative15 

# Overview: Ceiling Fans
Item 1: DOE seeks comments on its proposed reinterpretation of the “ceiling fan” definition. 

### Item 2 : DOE seeks comments on whether ceiling fans without external blades should be included in this rulemaking if they meet the definition 

### of a “ceiling fan .” Item 3 : DOE seeks comments on its proposed approach for developing 

### definitions for the four types of ceiling fans, the vertical distance that is used to characterize whether a fan can safely be used in rooms with low ceiling heights, and any other physical characteristics used to determine the different types of ceiling fans currently on the market. Item 4: DOE seeks comments on its proposed definition of “highly decorative ceiling fan.”16 

## Scope of Coverage

• 42 U.S.C. 6291 (50) 

### − (50) The term “ceiling fan light kit” means equipment designed to provide light from a ceiling fan that can be: 

### • (A) integral, such that the equipment is attached to the ceiling fan prior to the time of retail sale; or 

### • (B) attachable, such that at the time of retail sale the equipment is not physically attached to the ceiling fan, but may be included 

### inside the ceiling fan at the time of sale or sold separately for subsequent attachment to the fan.



### − Therefore, all ceiling fan light kits (CFLK) that are either built into, or designed to be attachable to, ceilings fans (as defined by 42 U.S.C. 

### 6291(49)), are covered products. 

# Overview: Ceiling Fan Light Kits17 4

2 1


### NOPR Analyses Overview Test Procedures and Metrics

5 

### Closing Remarks 

# Public Meeting Outline

3 

### Preliminary Analyses18 

## Test Procedures 

# Test Procedures and Metrics

• DOE is conducting test procedure rulemakings for ceiling fans and CFLKs.


### • When establishing or amending Federal test procedures, DOE reviews existing test procedures ( e.g., from Federal, State, international, and industry sources) that are applicable for measuring the energy use or 

### efficiency of the covered products.
• Manufacturers must use the DOE test procedures to certify compliance with applicable energy conservation standards and to make 

### representations of the energy efficiency of the covered products.19 

## Review of Test Procedures 

# Test Procedures and Metrics: Ceiling Fans

• Current DOE test procedure (10 CFR part 430, subpart B, Appendix U):

— Version 1.1 of the ENERGY STAR test procedure for ceiling fans (71 FR 71340 (Dec. 8, 2006)). • “ENERGY STAR® Testing Facility Guidance Manual: Building a Testing Facility and Performing the Solid State Test Method for ENERGY STAR® Qualified Ceiling Fans, Version 1.1 “(42 U.S.C. 6293(b)(16)(A)(i)).* 

### • Other ceiling fan test procedures:

— Version 1.2 of the ENERGY STAR test procedure for ceiling fans: • Changes include: increased allowable tolerance for velocity sensor accuracy, lowered room temperature, increased fan warm-up time, more flexibility with ceiling material and sensor arm set up, detailed calibration is no longer required.

— Canadian Standards Association's Energy Performance of Ceiling Fans Standards (CAN/CSA-C814-10): • Differences include: test set-up for hugger fans, sampling plan, standby power measurement, lowered room temperature and fan warm up time, some different test cylinder sizes, no calibration system between testing facilities. *with minor modifications20 

## Key Issues for Test Procedures • Active Mode:



### – Accuracy of velocity sensors • Average air velocity can vary widely at low speed, depending on sensor-arm position. Symmetry of test set-up suggests potential issue with accuracy of the velocity sensors.



### – Performance variability between ceiling fans within a specific fan model • Measured RPM can be inconsistent with RPM listed in the owner’s manuals or online. DOE is seeking feedback on whether the representations of RPM are based on test procedure values and whether DOE should consider a larger sample size to determine ceiling fan rating. 

# Test Procedures and Metrics: Ceiling Fans

Item 7: DOE requests comments on the accuracy tolerance of the velocity sensors for either the current DOE or current ENERGY STAR test procedures and potential sources of inaccuracy for low-speed airflow measurements. Item 8: DOE requests comments on the potential performance variability 

### between ceiling fans for a specific fan model and the possibility of requiring a sample of ceiling fans to certify a model.21 

## Key Issues for Test Procedures, Continued... • Active Mode:



### – Hugger fans • DOE is investigating potential methods of testing, e.g., with an artificial ceiling.



### – Multi-mount fans • DOE is considering testing multi-mount fans in the hugger fan configuration.



### – Fans having non-flat or unusually shaped blades • DOE is considering investigating appropriate configurations and methodologies. 

### – Fans not exactly 8” smaller in diameter than an existing test cylinder • DOE is considering: (1) allowing testing within a tolerance of the current 8” requirement, or (2) developing a correlation between bladespan and cylinder size. 

# Test Procedures and Metrics: Ceiling Fans

Item 9: DOE requests comments on its proposal to investigate methodologies (including the use of an artificial ceiling) to enable hugger 

### fans to be tested. Item 10: DOE requests comments on its proposal to test multi-mount fans in hugger fan configuration. 

### Item 12: DOE requests information on the effects of testing ceiling fans in cylinders having diameters other than 8 inches wider than the blade span and seeks comments on the potential modifications to the test procedure.22 

## Key Issues for Test Procedures, Continued... • Active Mode:



### – Fans with multiple fan heads • DOE is considering testing only one fan head, with the other fan head motors turned off, treating the fan head like a standard single-head ceiling fan.



### – Fans where the airflow is not directed straight downwards • DOE is considering: (1) adjusting the fan such that the airflow is vertical, (2) using an adjustable mount to achieve a vertical orientation, (3) testing without changing the orientation of the fan, providing a conservative estimate.



### – Fans sold with combined heaters • DOE tentatively plans to test with heater switched off.



### – Testing in reverse direction • DOE anticipates fans are primarily used in forward direction, efficiency in forward and reverse is likely to be correlated. 

# Test Procedures and Metrics: Ceiling Fans

Item 13: DOE requests comments on its proposed approach to testing 

### ceiling fans with multiple fan heads. Item 14: DOE requests comments on its approach to testing ceiling fans where the airflow is not directed vertically.23 

## Key Issues for Test Procedures, Continued... • Active Mode:



### – Testing at multiple fan speeds • Current test procedure allows testing at all available speeds. DOE could test at one or multiple speeds, depending on representativeness.



### • Standby Mode and Off Mode:



### – Test procedure must be amended to include standby mode and off mode energy consumption. (42 U.S.C. 6295(gg)(1), (2)(A))



### – Only ceiling fans with a remote control appear to have standby mode energy consumption, and no off mode energy consumption is 

### anticipated. 

# Test Procedures and Metrics: Ceiling Fans

Item 16: DOE seeks comment on the possibility of testing at one or multiple fan speeds. DOE seeks input on the amount of time spent at each fan speed. Item 17: DOE seeks on how to define “high,” “medium,” and “low” speeds on fans with more than three speeds or variable speed controls.24 

## Efficiency Metric
• Active Mode:

– Airflow efficiency (airflow per unit energy consumption): cubic feet per minute per watt (CFM/W). 

### • Standby Mode and Off Mode:

– If technically feasible , DOE plans to incorporate standby mode power consumption of ceiling fans into an integrated metric that addresses overall energy efficiency.

– One possible approach would be to combine the energy consumed in standby mode and in active mode according to the operating hours (OH) spent in each mode: 

# Test Procedures and Metrics: Ceiling Fans

Item 20: DOE requests feedback on its planned approach to use an integrated energy efficiency metric for ceiling fans.25 

## Current test procedures and metrics (10 CFR 430.32(s); 10 CFR part 430, subpart B, Appendix V)

differ by product class Product Class Primary Requirement of Standard Energy Efficiency Metric [Test Procedure] Class 1: Medium screw base sockets Package with ENERGY STAR compact fluorescent lamps , V 3.0, or equivalent Lamp efficacy (lm/W) [IES LM - 66 ] Class 2: Pin -based sockets (for externally ballasted fluorescent lamps) Meet requirements for ENERGY STAR Residential Light Fixtures , V 4.0. Package with lamps in all sockets that meet efficacy requirement Lamp efficacy (lm/W) [IES LM - 9 ] ; outdoor fixtures may comply by including automatic daylight shutoff and motion sensor controls. Class 3: All other CFLKs Shall not be capable of operating with lamps that total more than 190 watts. Wattage [none] 

# Test Procedures and Metrics: Ceiling Fan Light Kits26 

## DOE is considering the following changes 

# Test Procedures and Metrics: Ceiling Fan Light Kits

• Adopting a single metric — lamp efficacy — for all CFLKs.

─ Applicable to lamp technologies packaged with or integrated into the 

### CFLK. 

## • Two approaches to using the metric in a standard:

─ All packaged lamps must meet minimum efficacy requirement (simpler); 

### or

─ Average efficacy of all lamps must meet the standard (flexible, indicates 

### actual performance of the light kit). 

## • DOE’s CFLK test procedure would reference:

─ The existing DOE test procedure for the covered lamp; or

─ The relevant industry test procedure, for lamps with no DOE test procedure

─ Incandescent (LM-45), Fluorescent (LM-66, LM-9), LED (LM-79, LM-82).27 

### • DOE is considering two approaches:

– (1) The inseparable solid-state lighting (SSL) luminaire test procedures specified in the latest version of ENERGY STAR Program Requirements for Luminaires. • Luminaire testing using LM-79; and

– (2) Photometric testing of the LED light engine. • Light engine testing using LM- 79 

# Test Procedures and Metrics: Ceiling Fan Light Kits Test procedures for inseparable solid state lighting



## (‘integral LED lighting’)28 

### • The CFLK test procedure must be amended to include standby mode and 

### off mode energy consumption. (42 U.S.C. 6295(gg)(1), (2)(A))
• DOE assumes that: • CFLKs consume no power in off mode. • Only CFLKs with remote controllers have standby mode energy consumption. 

### • If the remote controller is shared by the ceiling fan and the CFLK, DOE tentatively plans to account for the energy consumption under the ceiling fan efficiency metric and not under the CFLK metric.


### • DOE is not currently aware of any cases in which the standby mechanism of the ceiling fan light kit is separate from the standby mechanism for the ceiling fan. 

# Test Procedures and Metrics: Ceiling Fan Light Kits

Standby Mode and Off Mode Power29 

# Test Procedures and Metrics: Ceiling Fan Light Kits
Item 23: DOE requests comments on its proposal to use luminous efficacy as the efficiency metric for all ceiling fan light kits. 

### Item 25: DOE requests information on the existing and/or future market availability of ceiling fan light kits with inseparable LED lighting 

### components. Item 27: DOE requests comment on the advantages or disadvantages of 

### defining “ceiling fan light kit efficacy” as the total lamp lumens divided by the total input wattage. Item 29: DOE requests feedback on its planned approach to attribute all standby power to the ceiling fan if ceiling fan standby is managed by a controller that is shared between the light kit and the ceiling fan.30 4

2 1


### NOPR Analyses Overview Test Procedures and Metrics

5 

### Closing Remarks 

# Public Meeting Outline

3 

### Preliminary Analyses31 

# Preliminary Analyses Framework Document Preliminary

Analyses NOPR Final Rule Effective

Date

Market & Technology Screening Analysis Engineering

Analysis Energy Use

Analysis Shipments Analysis National Impact Analysis Markups Analysis Life-Cycle Cost and Payback Period Analysis Preliminary Manufacturer Impact Analysis32 

### • Purpose:

– Characterize the ceiling fans and CFLKs markets and the measures to improve efficiency.



### • Method:

– Identify and characterize manufacturers of residential ceiling fans and CFLKs.

– Estimate shipments and trends in the market.

– Identify technologies that could improve efficiency. 

# Market & Technology33 

## Product Classes 

# Market & Technology: Ceiling Fans

• Currently: only one product class. 

### • Pursuant to EPCA, DOE establishes different product classes by: (1) type ofenergy used; (2) capacity of the product; or (3) any other performance

### related features that require different standard levels, such as features affecting consumer utility. (42 U.S.C. 6295(q )) • DOE is considering the following ceiling fan product classes:

– Indoor ceiling fans • Bulk of the market.

– Hugger ceiling fans • Suitable for use in rooms that have low ceilings.

– Highly decorative ceiling fans • Air movement performance is a secondary feature.

– Outdoor ceiling fans • Suitable for wet or damp conditions.34 

## Technology Options to Improve Efficiency 

# Market & Technology: Ceiling Fans

More -Efficient Blades

• Fans with Fewer Blades

• Twisted Blades

• Airfoil Blades

• Blade Attachments

• Alternative Blade Materials Ceiling Fan Controls

• Occupancy Sensors More -Efficient Motors

• More-Efficient Direct-Drive Single-Phase Induction Motors

• Geared Single-Phase Induction Motors

• Brushless Direct Current (DC) Motors

• Three-Phase Induction Motors35 

# Market & Technology: Ceiling Fans
Item 33: DOE welcomes comments on whether it should establish a separate product class for hugger fans. 

### Item 34: DOE welcomes comments on whether it should establish a separate product class for “highly decorative fans” for which air 

### movement performance is a secondary feature. Item 35: DOE seeks input on whether the differences between the 

### construction of outdoor and indoor ceiling fans warrants establishing a separate product class for outdoor ceiling fans.36 

### There are currently 3 products classes Product Class Class 1: Medium screw base sockets Class 2: Pin -based sockets (for externally ballasted fluorescent lamps) Class 3: All other CFLKs 

# Market & Technology: Ceiling Fan Light Kits

Product Classes

(10 CFR 430.32(s); 10 CFR part 430, subpart B, Appendix V, section 4)37 

## Types of Ceiling Fan Light Kits on the Market

• Characterized by:

– Light source type • Incandescent / Halogen • Compact fluorescent • LED

– Socket type • Screw base (medium, intermediate, candelabra, mini candelabra) • Pin-based for externally ballasted lamps (2GX13, G10Q, G24Q-1, GX- 23) • Bayonet-type connectors for internally ballasted lamps (GU-10, GU- 24) • Non-socket (non-replaceable lamps, i.e., integrated LED)

– D imming controls • Packaged with • Integrated into 

# Market & Technology: Ceiling Fan Light Kits38 

## • Product Classes:

– Pursuant to EPCA, DOE establishes different product classes by: (1) type of energy used; (2) capacity of the product; or (3) any other 

### performance-related features that require different standard levels, such as features affecting consumer utility. (42 U.S.C. 6295(q))



### – DOE is considering combining or restructuring CFLK product classes



## • Technology Options:

– DOE plans to consider more-efficient light source types ( e.g. , halogen, fluorescent, LEDs ). 

### • DOE plans to take into account that certain socket types can restrict the light source type to more-efficient technologies. 

# Market & Technology: Ceiling Fan Light Kits39 

# Market and Technology: Ceiling Fan Light Kits
Item 37: DOE requests feedback on the possibility of combining or restructuring product classes for ceiling fan light kits, specifically on (i) 

### significant consumer utility differences among ceiling fan light kits,(ii) which products should be combined, and (iii) what issues should be 

### considered.40 

# Preliminary Analyses

Framework Document Preliminary

Analyses NOPR Final Rule Effective

Date

Market & Technology Screening Analysis Engineering

Analysis Energy Use

Analysis Shipments Analysis National Impact Analysis Life-Cycle Cost and Payback Period Analysis Preliminary Manufacturer Impact Analysis Markups Analysis41 

### • Purpose:

─ Screen out technology options that DOE will not consider in the engineering analysis for ceiling fans and CFLKs. 

### • Method:

─ DOE will evaluate each technology option based on the following criteria: • Technological feasibility; • Practicability to manufacture, install, and service; • Adverse impacts on product utility or available to consumers; and • Adverse impact on health and safety. 

# Screening Analysis42 

# Preliminary Analyses Framework Document Preliminary

Analyses NOPR Final Rule Effective

Date

Market & Technology Screening Analysis Engineering

Analysis Energy Use

Analysis Shipments Analysis National Impact Analysis Life-Cycle Cost and Payback Period Analysis Preliminary Manufacturer Impact Analysis Markups Analysis43 

### • Purpose:

– To determine the relationship between manufacturer selling price (MSP) and efficiency. 

### • DOE may determine an appropriate subset of product classes to analyze 

### (representative product classes).

– DOE may extrapolate analysis results to the remaining product classes. 

### • For each representative product class, DOE may analyze a subset of representative units at selected fan sizes ( i.e. , blade spans). 

### • Once DOE has identified cost-efficiency relationships at those selected sizes, it is considering scaling the results to cover the full range of blade spans, 

### which could result in a standard in the form of an equation that is a function of size. 

## Overview 

# Engineering Analysis: Ceiling Fans44 

###  Choose representative product classes and fan sizes to be analyzed.



###  Select baseline efficiency level based on common features and bottom- of -market efficiency. 

###  For each representative product class and size, identify the efficiency and cost of more efficient units based on design option 

### modeling, product testing, and teardowns. Identify the maximum technologically feasible (max-tech) level for each representative 

### class/size.  Develop efficiency levels that range from the baseline to max-tech.  The result of the engineering analysis will be a set of priceefficiency curves (MSP vs. efficiency) for each product class and fan size analyzed. Choose Representative Product Classes and Sizes Select Baseline Efficiency Levels Identify Higher Efficiency Units Develop Efficiency Levels for Analysis Determine Cost Efficiency Relationship 

# Engineering Analysis: Ceiling Fans45 

## • Design option technologies:

– The design options that DOE is tentatively considering include: more efficient alternating current (AC) motors, brushless DC (BLDC) motors, different fan blade shapes and materials, and different numbers of blades.


## • Manufacturer selling price (MSP) is based on the cost of the motor, fan blades, and other hardware times the manufacturer 

## markup.

– Component costs will be determined using reverse-engineering (product 

### teardowns) and manufacturer feedback (engineering interviews).

– The industry-wide manufacturer markup will be determined based on 

### publicly available financial sources (e.g. SEC 10- K’s) and manufacturer feedback. 

# Engineering Analysis: Ceiling Fans46 

## • DOE plans to consider more efficient lighting technologies when identifying higher efficiency levels (e.g. incandescent, compact 

## fluorescent, light-emitting diode [LED] light sources ).

• DOE is considering the following to develop a cost-efficiency relationship:

– The cost of the ceiling fan light kit includes the cost of the lamp as well 

### as the cost of any other components of the light kit.

– DOE does not believe that changing the lamp type will add to the cost of 

### the remaining light kit components.

– Therefore, to isolate efficiency-related cost, DOE is considering only 

### including the cost of the lamp (and any lamp-specific parts as necessary) in its analysis. 

# Engineering Analysis: Ceiling Fan Light Kits47 

# Engineering Analysis
Item 47: DOE seeks comments on its proposed methods for determining costs associated with incremental efficiency improvements in both ceiling fans and ceiling fan light kits. Item 48: DOE welcomes comments on how ceiling fan efficiency varies 

### with airflow capacity, motor type, blade span, number and design of blades, or any other parameter. DOE also seeks comments on how 

### ceiling fan light kit efficiency varies with bulb type, number of bulbs, or any other parameter.48 

# Preliminary Analyses Framework Document Preliminary

Analyses NOPR Final Rule Effective

Date

Market & Technology Screening Analysis Engineering

Analysis Energy Use

Analysis Shipments Analysis National Impact Analysis Life-Cycle Cost and Payback Period Analysis Preliminary Manufacturer Impact Analysis Markups Analysis49 

### • Purpose:

– Develop markups to relate MSPs to end -user prices of products. 

### • Method:

– Identify distribution channels and estimate share of each channel in the aggregate sales volume.

– Estimate markups for each step along the distribution chain. 

### • Distribution Channels:

– Home Improvement Retailer Distribution Channel

– Electrical Wholesaler (Distributor) Distribution Channel 

# Markups Analysis50 

# Preliminary Analyses Framework Document Preliminary

Analyses NOPR Final Rule Effective

Date

Market & Technology Screening Analysis Engineering

Analysis Energy Use

Analysis Shipments Analysis National Impact Analysis Life-Cycle Cost and Payback Period Analysis Preliminary Manufacturer Impact Analysis Markups Analysis51 

### • Purpose:

– Identify how ceiling fans and CFLKs are operated by users and determine the energy savings potential of more-efficient designs in the field.

– Estimate annual energy consumption for baseline and higher-efficiency designs. 

### • Method:

– Obtain data to develop a distribution of operating hours for ceiling fans and CFLKs by region ( e.g. , Census Division). Data sources include for example: • Ceiling Fans:

– Usage studies, regional residential utility monitoring studies, Energy Information Administration’s ( EIA) Residential Energy Consumption Surveys (RECS) • CFLKs:

– DOE’s 2012 Residential Lighting End-Use Consumption Study, DOE’s 2010 U.S. Lighting Market Characterization, EIA’s 2009 RECS .

– Use product input power rating developed in engineering analysis.

– Multiply product input power rating by annual operating hours. 

# Energy Use Analysis52 

# Preliminary Analyses Framework Document Preliminary

Analyses NOPR Final Rule Effective

Date

Market & Technology Screening Analysis Engineering

Analysis Energy Use

Analysis Shipments Analysis National Impact Analysis Life-Cycle Cost and Payback Period Analysis Preliminary Manufacturer Impact Analysis Markups Analysis53 

### • Purpose:

– Assess life-cycle cost (LCC) impacts of different efficiency levels on the consumer. The LCC reflects the total cost of an appliance over its lifetime.

– Assess the Payback Period (PBP), which is the amount of time required for energy cost savings to pay back any increased cost of a higher-efficiency product.



### • Method:

– Economic evaluation from the consumer perspective.

– LCC equals consumer price plus the sum of annual operating costs (including repair and maintenance costs) discounted to a particular base year.

– Results are expressed as LCC difference (base case minus higher efficiency level). 

# Life-Cycle Cost and Payback Period Analysis54 

## Approach • For each of the representative units in each product class:

– Develop ceiling fan and CFLK selection process to reflect product choices by customers.

– Develop distribution of product efficiencies expected for the compliance year.

– Aggregate the annual energy consumption over a products lifetime.

– Model uncertainty and variability in the inputs using a Monte Carlo simulation method that samples probability distributions. 

### • Installation Costs

– For ceiling fans and CFLKs, DOE expects installation costs to be independent of efficiency improvements; accordingly, such costs will be excluded from the LCC analysis. 

### • Energy Prices

– DOE will use the latest version of EIA’s Annual Energy Outlook to estimate future energy prices. 

### • Maintenance & Repair Costs

– DOE will consider maintenance and repair costs and plans to determine whether such costs change with increased efficiency. 

# Life-Cycle Cost and Payback Period Analysis55 

## Approach • Product Lifetime

– DOE will estimate the product lifetime of ceiling fans using data from Appliance Magazine , expert opinions, and other relevant sources.

– DOE anticipates ceiling fan lifetime to vary significantly depending on usage.

– DOE plans to correlate CFLK lifetime with ceiling fan lifetime (i.e ., equal lifetimes). • Energy savings depend on lifetime of packaged lamp and substitutable lamps.

– For calculating energy savings, the relevant lifetime will be the lesser of the light kit lifetime and the ceiling fan lifetime. 

# Life-Cycle Cost and Payback Period Analysis

Item 61: DOE welcomes comments on appropriate lifetimes for both ceiling fans and ceiling fan light kits covered in this rulemaking. DOE is 

### particularly interested in regional lifetime data and data on the relationship between ceiling fan usage and ceiling fan life expectancy.56 

## Approach • Discount Rates

– DOE will derive the discount rates for residential users of ceiling fans and CFLKs by estimating the financial costs to consumers that purchase residential products generally. 

### • Base-Case Efficiency

– Used to characterize the ceiling fan and ceiling fan light kit market in the compliance year in the absence of DOE energy conservation standards.

– If market share efficiency data are not available, DOE may develop efficiency distributions based on available models and information from ceiling fan manufacturers and experts. 

# Life-Cycle Cost and Payback Period Analysis57 

# Preliminary Analyses Framework Document Preliminary

Analyses NOPR Final Rule Effective

Date

Market & Technology Screening Analysis Engineering

Analysis Energy Use

Analysis Shipments Analysis National Impact Analysis Life-Cycle Cost and Payback Period Analysis Preliminary Manufacturer Impact Analysis Markups Analysis58 

### • Purpose:

– Project future shipments by product class to calculate national impacts of adopting an energy efficiency standard. 

### • Approach:

– DOE typically projects shipments over a 30 -year period beginning on the expected compliance date of the standard.

– DOE will estimate the stock and shipments of ceiling fans and CFLKs based on existing data, including: • EIA’s RECS; and • ENERGY STAR (Unit Shipments and Sales Data Archives).

– DOE plans to use an economic model to project shipments in the standards case, as compared to the base case. • Based on observed and projected technology price trends. • Modeled CFLK shipments will depend on ceiling fan shipments. 

# Shipments Analysis59 

# Preliminary Analyses Framework Document Preliminary

Analyses NOPR Final Rule Effective

Date

Market & Technology Screening Analysis Engineering

Analysis Energy Use

Analysis Shipments Analysis National Impact Analysis Life-Cycle Cost and Payback Period Analysis Preliminary Manufacturer Impact Analysis Markups Analysis60 

### • Purpose:

– Determine the projected national energy savings (NES) and consumer national net present value (NPV) associated with potential energy conservation standards.



### • Method:

– Develop annual series of national energy and economic impacts.

– Utilize the shipments model to estimate stock each year.

– Utilize the LCC to develop input about total installed cost and energy use per unit in any year.

– Aggregate the costs and energy use for all years in the analysis period.

– Report NES in terms of primary and full-fuel-cycle savings.

– Report change in national customer NPV (in constant year dollars ).

– Account for the time-value of money though defined discount rates. 

# National Impact Analysis61 

# Preliminary Analyses Framework Document Preliminary

Analyses NOPR Final Rule Effective

Date

Market & Technology Screening Analysis Engineering

Analysis Energy Use

Analysis Shipments Analysis National Impact Analysis Life-Cycle Cost and Payback Period Analysis Preliminary Manufacturer Impact Analysis Markups Analysis62 

### • Purpose

– To assess the economic impacts of potential energy conservation 

### standards on manufacturers;

– To identify and estimate impacts on manufacturer subgroups that 

### may be more severely affected than the industry as a whole; and

– To examine the direct employment impacts, manufacturing capacity, 

### and the cumulative regulatory impact on the manufacturing industry.

• Methodology

– Analyze industry cash flow and industry net present value through use of the Government Regulatory Impact Model (GRIM); and

– Interview manufacturers to refine inputs to the GRIM, develop subgroup analyses, and address qualitative issues. 

# Preliminary Manufacturer Impact Analysis63 Industry profile Develop

strawman GRIM Develop

interview guide Interviews &

industrywide/ subgroup analyses Assess direct

employment, manufacturing capacity, and cumulative burden Finalize MIA results for NOPR Phase 2 Phase 3 Phase 1 

# Preliminary Manufacturer Impact Analysis Overview

Item 70: DOE welcomes comments on what other existing regulations or pending regulations it should consider in its examination of cumulative regulatory burden.64 4

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### NOPR Analyses Overview Test Procedures and Metrics

5 

### Closing Remarks 

# Public Meeting Outline

3 

### Preliminary Analyses65 Manufacturer Impact Analysis Utility Impact Analysis Employment

Impact Analysis Consumer Subgroup Analysis Revise Preliminary Analysis Emissions Analysis and Monetization Regulatory Impact Analysis

Engineering Analysis Life-Cycle

Cost & Payback Period Analysis National

Impact Analysis Framework Document Preliminary

Analyses NOPR

Analyses Final

Rule Effective

Date 

# NOPR Analyses66 

### • Purpose:

– Analyze the economic impacts of standards on consumers, including subgroups who may be disproportionately impacted compared with the general user population • A subgroup comprises a subset of the population likely to be disaffected disproportionately by new or revised energy conservation standards



### • Method:

– Extend the LCC analysis to examine the impacts for defined subgroups

– DOE will use inputs specific to each of the considered consumer subgroups 

# Customer Subgroup Analysis

Item 68: DOE welcomes input from interested parties regarding which, if any, consumer subgroups should be considered when developing 

### potential energy conservation standards for ceiling fans and ceiling fan light kits.67 Manufacturer Impact Analysis Utility Impact Analysis Employment

Impact Analysis Consumer Subgroup Analysis Revise Preliminary Analysis Emissions Analysis and Monetization Regulatory Impact Analysis

Engineering Analysis Life-Cycle

Cost & Payback Period Analysis National

Impact Analysis Framework Document Preliminary

Analyses NOPR

Analyses Final

Rule Effective

Date 

# NOPR Analyses68 

### • Purpose:

– Estimate environmental impacts from potential energy conservation standards for ceiling fans and ceiling fan light kits including changes in Full Fuel Cycle (FFC) emissions 

### • Method:

– DOE will base the emission factors for FFC on EIA’s Annual Energy Outlook, supplemented by data from other sources. The following emissions are assessed: Carbon dioxide ( CO 2 ), Sulfur dioxide (SO 2 ), Nitrogen oxides ( NO x ), Methane (CH 4 ), Nitrous Oxide (N 2 O), Mercury (Hg) 

# Emissions Analysis

Item 71: DOE seeks input on its approach to conduct the emissions analysis for the products covered by this rulemaking.69 

### • DOE intends to use the most current Social Cost of Carbon (SCC) values 

### developed by interagency reviews

– SCC is intended to be a monetary measure of the incremental damage resulting from greenhouse gas (GHG) emissions, including but not limited to agricultural productivity loss, human health effects, property damage from rising sea level, and changes in the ecosystem 

### • At present, the most recent interagency estimates of the potential global benefits resulting from reduced CO 2 

### emissions in 2015, expressed in 

### 2011$, were $6.1, $25.4, $41.0, and $77.7 per metric ton avoided

– For emission reductions that occur in later years, these values grow in real terms over time 

### • DOE will also estimate the potential monetary benefit of reduced NO x 

### emissions resulting from the considered standard levels 

# Monetization of Emission Reductions

Item 72: DOE requests comments on the approach it plans to use for estimating monetary values associated with emissions reductions.70 Manufacturer Impact Analysis Utility Impact Analysis Employment

Impact Analysis Consumer Subgroup Analysis Revise Preliminary Analysis Emissions Analysis and Monetization Regulatory Impact Analysis

Engineering Analysis Life-Cycle

Cost & Payback Period Analysis National

Impact Analysis Framework Document Preliminary

Analyses NOPR

Analyses Final

Rule Effective

Date 

# NOPR Analyses71 

### • Purpose:

– Assess key impacts on the electric utility sector from potential energy conservation standards. 

### • Method:

– DOE plans to use factors derived from NEMS-BT, a variant of the NEMS (National Energy Modeling System) developed and used by DOE/EIA for their Annual Energy Outlook (AEO) report, as the basis of the Utility Impact Analysis.

– Outputs of the utility impact analysis include projections of electricity sales, price, generation, and capacity in the base and standards cases. 

# Utility Impact Analysis

Item 73: DOE welcomes input from stakeholders on its proposed approach to conduct the utility impact analysis.72 Manufacturer Impact Analysis Utility Impact Analysis Employment

Impact Analysis Consumer Subgroup Analysis Revise Preliminary Analysis Emissions Analysis and Monetization Regulatory Impact Analysis

Engineering Analysis Life-Cycle

Cost & Payback Period Analysis National

Impact Analysis Framework Document Preliminary

Analyses NOPR

Analyses Final

Rule Effective

Date 

# NOPR Analyses73 

### • Purpose:

– Assess the overall impact on national employment from potential efficiency standards 

### • Method:

– Include both direct and indirect employment impacts • Direct employment impacts are estimated in the manufacturer impact analysis • Indirect employment impacts result from shifting consumer expenditures among goods and services ( “substitution effect”) and changing equipment and energy costs (“income effect”)

– DOE intends to use the ImSET (Impact of Sector Energy Technologies) model for the evaluation of indirect employment impacts 

# Employment Impact Analysis

Item 74: DOE welcomes feedback on its proposed approach to assessing 

### national employment impacts.74 Manufacturer Impact Analysis Utility Impact Analysis Employment

Impact Analysis Consumer Subgroup Analysis Revise Preliminary Analysis Emissions Analysis and Monetization Regulatory Impact Analysis

Engineering Analysis Life-Cycle

Cost & Payback Period Analysis National

Impact Analysis Framework Document Preliminary

Analyses NOPR

Analyses Final

Rule Effective

Date 

# NOPR Analyses75 

### • Purpose:

– Explore the potential for non-regulatory alternatives to new energy efficiency standards



### • Method:

– Base the assessment on the actual impacts of any such initiatives to date, but consider information presented regarding the impacts that any existing initiative might have in the future 

# Regulatory Impact Analysis

Item 75: DOE requests any available data or reports that would contribute to the Regulatory Impact Analysis for ceiling fans and ceiling fan light kits covered in this rulemaking. In particular, DOE seeks information on the effectiveness of existing or past programs for these 

### products that are similar to the policies noted above.76 4

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### NOPR Analyses Overview Test Procedures and Metrics

5 

### Closing Remarks 

# Public Meeting Outline

3 

### Preliminary Analyses77 How to Submit Written Comments In all correspondence, please refer to the Residential Ceiling Fans and Ceiling Fan Light Kits rulemaking by : • Framework Document for Residential Ceiling Fans and Ceiling Fan Light Kits • Docket Number: EERE- 2012 - BT -STD- 0045 • Regulatory Identification Number (RIN): 1904-AC87 Electronic: CeilingFanLightKits2012STD0045@ee.doe.gov or www.regulations.gov Postal Mail: Ms. Brenda Edwards

U.S. Department of Energy Building Technologies Program, Mailstop EE- 2J 1000 Independence Avenue, SW Washington, DC 20585- 0121 Courier: Ms. Brenda Edwards

U.S. Department of Energy Building Technologies Program Sixth Floor, 950 L’Enfant Plaza, SW Washington, DC 20024 Telephone: (202) 586- 2945 Comment period closes: April 29, 2013 

# Closing Remarks