### CHAPTER 12. LIFE­CYCLE COST SUB­GROUP ANALYSIS

TABLE OF CONTENTS

**12.1 INTRODUCTION** 

**............................................................................................................ 12­1** 

**12.2 SUB­GROUP**  **ANALYSIS**

**............................................................................................... 12­1** 

**12.2.1 CRE**  **Customer Sub­Group** 

**................................................................................ 12­1** 

**12.2.2 Life­Cycle**  **Cost and**  **Payback Period**  **Results for**  **Small Business**  **Sub­Group**

**.. 12­5** 

**REFERENCES**

**........................................................................................................................ 12­10** 

LIST OF TABLES

**Table 12.2.1**  **Census Data**  **for Supermarket**  **and Other**  **Grocery Business**  **Class by** 

**Number of**  **Establishments per**  **Firm**

**.................................................................. 12­2** 

**Table 12.2.2**  **Census Data**  **for Convenience**  **Store Business**  **Class by**  **Number of** 

**Establishments per**  **Firm**

**.................................................................................... 12­3** 

**Table 12.2.3**  **Census Data**  **for Convenience**  **Store with**  **Gasoline Station**  **Business Class** 

**by Number**  **of Establishments**  **per Firm** 

**............................................................. 12­4** 

**Table 12.2.4**  **Mean LCC**  **Savings by**  **Equipment Class**  **and Trial**  **Standard Level,**  **Small**

**Business Sub­Group**  **and All**  **Business Types**  **(2007$)*....................................** **12­6**

**Table 12.2.5**  **Percentage of**  **Customers Showing**  **Positive Life­Cycle**  **Cost Savings**  **by**

**Equipment Class**  **and Trial**  **Standard Level,**  **Small Business**  **Sub­Group**

**and All**  **Business Types**  **(2007$)*......................................................................** **12­7**

**Table 12.2.6**  **Mean Payback**  **Period by**  **Equipment Class**  **and Trial**  **Standard Level,** 

**Small Business**  **Sub­Group and**  **All Business**  **Types** **(2007$)*..........................** **12­8**

**Table 12.2.7**  **Percentage of**  **Customers Showing**  **PBP Less**  **Than 3**  **Years, by**  **Equipment**

**Class and**  **Trial Standard**  **Level, Small**  **Business Sub­Group**  **and All** 

**Business** **Types*.................................................................................................** **12­9**

**12­i**

### CHAPTER 12. LIFE­CYCLE COST SUB­GROUP ANALYSIS

12.1 INTRODUCTION

**The life­cycle**  **cost (LCC)**  **sub­group analysis**  **evaluates impacts**  **on any**  **identifiable**

**groups of**  **customers of**  **commercial refrigeration**  **equipment (CRE)**  **who may**  **be**

**disproportionately affected**  **by amended**  **energy conservation**  **standards. The**  **U.S. Department**  **of**

**Energy (DOE)**  **accomplished this,**  **in part,**  **by analyzing**  **the LCC**  **and payback**  **period (PBP)**  **for**

**those CRE**  **customers who**  **fall into**  **any specific**  **sub­groups.**

**DOE used**  **the LCC**  **spreadsheet model**  **to estimate**  **the impact**  **on CRE**  **sub­groups. DOE** 

**developed this**  **LCC spreadsheet**  **model to**  **conduct the**  **LCC and**  **PBP analyses**  **for both**  **CRE**

**customers, as**  **described in**  **Chapter 8,**  **Life­Cycle Cost**  **and Payback**  **Period Analyses.**  **The**

**standard LCC**  **and PBP**  **analyses (see**  **Chapter 8)**  **for CRE**  **includes various**  **types of**  **food sales** 

**businesses that**  **use commercial**  **refrigeration equipment.**  **The LCC**  **spreadsheet model**  **allows for** 

**the identification**  **of certain**  **sub­groups of**  **businesses, which**  **can then**  **be analyzed**  **by sampling** 

**only that**  **sub­group. Chapter**  **8 explains**  **in detail**  **the inputs**  **to the**  **LCC spreadsheet**  **model used** 

**in determining**  **the LCC**  **and PBP.**  **The LCC**  **spreadsheet model**  **is accessible**  **over the**  **internet**

**(http://www.eere.energy.gov/buildings/appliance_standards/refrigeration_equipment.html).**

12.2 SUB­GROUP ANALYSIS

12.2.1 CRE Customer Sub­Group

**DOE identified**  **small businesses**  **as a**  **sub­group that**  **possibly could**  **be disproportionately** 

**affected by**  **the amended**  **energy conservation**  **standard for**  **CRE units.**  **DOE was**  **concerned that** 

**increases in**  **the purchase**  **price of**  **commercial refrigeration**  **equipment could**  **have negative** 

**impacts on**  **small businesses**  **(i.e., those**  **with low**  **annual revenues).**  **To identify**  **small businesses,** 

**DOE used**  **size standards**  **from the**  **Small Business**  **Administration (SBA)**  **to define**  **which**

**business entities**  **are considered**  **to be**  **small. The**  **SBA established**  **size standards**  **for types**  **of**

**economic activity,**  **or industry,**  **under the**  **North American**  **Industry Classification**  **System**

**(NAICS). 1** 



### The **SBA defines**  **a small**  **business from**  **a customer**  **perspective by**  **either its**  **annual**

**receipts (i.e.,**  **revenues) or**  **its number**  **of employees.**  **Assembly, education,**  **food services,**  **office,**

**and retail**  **businesses are**  **generally defined**  **to be**  **small if**  **annual receipts**  **are $6**  **million or**  **less. In** 

**the case**  **of the**  **retail food**  **sales business,**  **the SBA**  **defines as**  **small businesses**  **supermarkets and** 

**other grocery**  **stores and**  **convenience stores**  **with less**  **than $25**  **million in**  **total annual**  **sales. For** 

**specialty stores**  **(e.g., meat**  **markets, bakeries,**  **fish and**  **seafood markets)**  **and beer,**  **wine and** 

**liquor stores,**  **this limit**  **is set**  **at less**  **than $6.5**  **million in**  **annual sales.**  **According to**  **the Food** 

**Marketing Institute,**  **the average**  **supermarket had**  **sales of**  **approximately $15**  **million in**  **2006, so** 

**a small**  **business could**  **be represented**  **as ownership**  **of one**  **or two**  **average­size supermarkets**  **or a** 

**chain of**  **smaller grocery**  **or convenience**  **stores.**

**The Food**  **Marketing Institute**  **defines independent**  **stores as**  **a retailer**  **with one**  **to ten** 

**stores, so**  **most small**  **supermarkets or**  **grocery businesses**  **as defined**  **by SBA**  **would be**  **classified**

**as independent**  **grocery stores**  **by the**  **industry as**  **opposed to**  **being chain**  **stores. A**  **somewhat**

**larger chain**  **of convenience**  **stores could**  **still be**  **classified as**  **a small**  **business.**

**12­1**

### In **examining the**  **total CRE**  **sales to**  **entities that**  **might be**  **considered as**  **small businesses,** 

**DOE analyzed**  **detailed statistical**  **data from**  **the 2002**  **CBECS 2**  

### for **the three**  **of the**  **four business** 

**types identified**  **in this**  **analysis: supermarkets**  **and grocery**  **stores, convenience**  **stores (including** 

**specialty food**  **stores), and**  **convenience stores**  **without gasoline**  **stations. Because**  **of the**  **large**

**chain presence,**  **as well**  **as the**  **need for**  **larger stores**  **to deal**  **with merchandise,**  **multiline line** 

**retailers were**  **presumed to**  **not fall**  **into the**  **small business**  **category.**

**The 2002**  **census examines**  **sales and**  **total number**  **of establishments**  **for retail**  **firms and** 

**provides this**  **information categorized**  **by number**  **of sales**  **establishments per**  **firm, as**  **shown in** 

**Table 12.2.1**  **through Table**  **12.2.3. From**  **the census**  **data, it**  **is possible**  **to identify**  **the number**  **of**

**firms in**  **each category,**  **the number**  **of establishments**  **in each**  **category, total**  **employment in**  **each**

**category, and**  **the total**  **sales in**  **each category.**  **It is**  **then possible**  **to develop**  **average statistics**  **for**

**each category**  **in terms**  **of number**  **of establishments**  **per firm,**  **total sales**  **per establishment,**  **and**

**total sales**  **per firm.**  **From the**  **latter one**  **can estimate**  **whether a**  **category, in**  **terms of**  **number of** 

**establishments per**  **firm, is**  **composed largely**  **from firms**  **that might**  **be classified**  **as small** 

**businesses. This**  **is first**  **shown in**  **Table 12.2.1,**  **for supermarket**  **and other**  **grocery firms.**  **If the** 

**average annual**  **sales per**  **firm in**  **a category**  **are substantially**  **less than**  **$25 million,**  **the category** 

**as a**  **whole was**  **considered likely**  **composed of**  **small businesses.**  **If the**  **average annual**  **sales per** 

**firm are**  **substantially greater**  **than $25**  **million, the**  **category as**  **a whole**  **was unlikely**  **to be** 

**composed of**  **small business.**  **When the**  **average sales**  **per firm**  **was close**  **to the**  **threshold, it**  **was**

**assumed that**  **approximately 50**  **percent would**  **likely be**  **considered small**  **businesses.**

Table 12.2.1 Census Data for Supermarket and Other Grocery Business Class by Number

of Establishments per Firm**Supermarkets &** **other grocery** **(except convenience)** **stores** Average Avg. F irm is

Number of Total Establishments Sales per Sales per Small

Firms Employment per Firm Establishment Firm Business

**All firms**  **42,318 2,437,750**  **1.6 5975**  **9340 TRUE** 

**Single unit**  **firms 39,912**  **461,199 1.0**  **1487 1487**  **TRUE**

**Multiunit firms**  **2,406 1,976,551**  **10.9 12802**  **139610 FALSE** 

**Firms with**  **1 establishment**  **792 23,775**  **1.0 3465**  **3465 TRUE** 

**Firms with**  **2 establishments**  **695 55,560**  **2.0 5071**  **10142 TRUE** 

**Firms with**  **3 or**  **4 establishments**  **420 66,531**  **3.3 6350**  **21122 TRUE** 

**for ~50%** 

**Firms with**  **5 to**  **9 establishments**  **268 89,434**  **6.5 7925**  **51512 FALSE** 

**Firms with**  **10 to**  **24 establishments**  **130 133,065**  **14.9 10592**  **158221 FALSE** 

**Firms with**  **25 to**  **49 establishments**  **48 104,431**  **34.2 10262**  **351054 FALSE** 

**Firms with**  **50 to**  **99 establishments**  **16 90,809**  **72.8 12445**  **905409 FALSE** 

**Firms with**  **100 establishments**  **or more**  **37 1,412,946**  **437.0 15556**  **6797970 FALSE** 

**Fraction of**  **establishments considered**  **small business**  **0.647**

**Fraction of**  **firms classed**  **as small**  **business 0.983** 

**Fraction of**  **employment in**  **small businesses**  **0.235**

**Fraction of**  **sales in**  **small businesses**  **0.186**

**12­2**

### These **same data**  **are tabulated**  **for convenience**  **stores (including**  **specialty food**  **stores and** 

**beer, wine**  **and liquor**  **stores as**  **was done**  **in the**  **LCC analysis).**  **Because the**  **size standards**  **are**

**different for**  **convenience stores**  **versus specialty**  **food and**  **beer, wine,**  **and liquor**  **stores, the** 

**results are**  **first shown**  **separately, and**  **then aggregated**  **in Table**  **12.2.2.**

Table 12.2.2 Census Data for Convenience Store Business Class by Number of

Establishments per Firm

Avg.

Average Firm is

Number of Total Establishments Sales per Sales per Small

Firms Employment per Firm Establishment Firm Business

**All firms**  **25,527 138,316**  **1.1 698**  **798 TRUE** 

**Single­unit firms**  **24,854 93,482**  **1.0 570**  **570 TRUE** 

**Multiunit firms**  **673 44,834**  **6.5 1423**  **9217 TRUE** **res Firms**  **with 1**  **establishment 340**  **3,010 1.0**  **1015 1015**  **TRUE stoe**  **Firms with**  **2 establishments**  **161 2,263**  **2.0 1010**  **2019 TRUE** **ienc Firms**  **with 3**  **or 4**  **establishments 86**  **2,352 3.2**  **1186 3846**  **TRUE Conven** 

**Firms with**  **5 to**  **9 establishments**  **39 2,331**  **6.5 1112**  **7214 TRUE** 

**Firms with**  **10 to**  **24 establishments**  **19 2,132**  **13.8 1118**  **15415 TRUE** 

**Firms with**  **25 to**  **49 establishments**  **12 3,461**  **38.9 914**  **35579 FALSE** 

**Firms with**  **50 to**  **99 establishments**  **10 5,643**  **70.4 1231**  **86670 FALSE** 

**Firms with**  **100 establishments**  **or more**  **6 23,642**  **288.5 1926**  **555755 FALSE** 

**All firms**  **45,085 262,587**  **1.2 773**  **917 TRUE** 

**Single­unit firms**  **43,131 193,189**  **1.0 693**  **693 TRUE** 

**Multiunit firms**  **1,954 69,398**  **5.3 1109**  **5853 TRUE** **es Stor**  **Firms with**  **1 establishment**  **976 8,604**  **1.0 1111**  **1111 TRUE** **s &store** **quor Firms**  **with 2**  **establishments 485**  **9,773 2.0**  **1581 3162**  **TRUE Specialty** **food d** **Li Firms**  **with 3**  **or 4**  **establishments 266**  **6,618 3.3**  **1259 4157**  **TRUE e** **an Firms**  **with 5**  **to 9**  **establishments 127**  **5,773 6.3**  **1155 7332**  **TRUE for** 

**~ 45%** ***Beer Win** 

**Firms with**  **10 to**  **24 establishments**  **59 6,694**  **15.2 1635**  **24910 FALSE** 

**Firms with**  **25 to**  **49 establishments**  **19 4,786**  **35.7 1374**  **49085 FALSE** 

**Firms with**  **50 to**  **99 establishments**  **11 5,767**  **72.4 1090**  **78873 FALSE** 

**Firms with**  **100 establishments**  **or more**  **11 21,383**  **391.5 815**  **319255 FALSE** 

**Fraction of**  **establishments considered**  **small business**  **0.879**

**Fraction of**  **firms classed**  **as small**  **business 0.997** 

**Fraction of**  **employment in**  **small businesses**  **0.815**

**Fraction of**  **sales 0.804** 

***** **True for**  **specialty food**  **stores but**  **false for**  **liquor stores** 

**12­3**

### Finally **the data**  **are tabulated**  **for combination**  **gasoline stations**  **with convenience**  **stores**

**in Table**  **12.2.3.**

Table 12.2.3 Census Data for Convenience Store with Gasoline Station Business Class by

Number of Establishments per Firm**Gasoline stations** **with convenience** **stores** Avg.

Average Firm is

Number of Total Establishments Sales per Sales per Small

Firms Employment per Firm Establishment Firm Business

**All firms**  **44,361 722,047**  **2.1 1993**  **4209 TRUE** 

**Single­unit firms**  **39,457 255,812**  **1.0 1501**  **1501 TRUE** 

**Multiunit firms**  **4,904 466,235**  **11.1 2351**  **25998 FALSE** 

**Firms with**  **1 establishment**  **1,418 14,582**  **1.0 2062**  **2062 TRUE** 

**Firms with**  **2 establishments**  **1,220 23,073**  **2.0 2058**  **4117 TRUE** 

**Firms with**  **3 or**  **4 establishments**  **849 26,686**  **3.4 2126**  **7196 TRUE** 

**Firms with**  **5 to**  **9 establishments**  **646 33,665**  **6.4 1966**  **12648 TRUE** 

**Firms with**  **10 to**  **24 establishments**  **485 58,089**  **14.8 1991**  **29441 FALSE** 

**Firms with**  **25 to**  **49 establishments**  **163 43,196**  **34.1 2061**  **70261 FALSE** 

**Firms with**  **50 to**  **99 establishments**  **57 30,103**  **68.4 2228**  **152453 FALSE** 

**Firms with**  **100 establishments**  **or more**  **66 236,841**  **404.8 2652**  **1073415 FALSE** 

**Fraction of**  **establishments considered**  **small business**  **0.576**

**Fraction of**  **firms classed**  **as small**  **business 0.988** 

**Fraction of**  **employment in**  **small businesses**  **0.530**

**Fraction of**  **sales 0.475** 



### What **is first**  **clear from**  **examining these**  **data is**  **that the**  **majority of**  **firms in**  **each business** 

**class are**  **considered small**  **businesses. This**  **is true**  **for commercial**  **businesses in**  **the United** 

**States at**  **large. According**  **to the**  **SBA, 99**  **percent of**  **all U.S.**  **businesses fall**  **under the**  **SBA**

**definition of**  **small business.**  **3** 

### However, **the data**  **in Table**  **12.2.1 show**  **that less**  **than 20**  **percent**

**of the**  **sales and**  **less than**  **24 percent**  **of the**  **employment in**  **the supermarket/grocery**  **business**

**class occurs**  **in small**  **businesses. The**  **financial statistics**  **of the**  **class are**  **generally not**  **well**

**characterized by**  **small businesses.**  **This is**  **contrasted with**  **convenience stores**  **shown in**  **Table**

**12.2.2. In**  **the convenience**  **store business**  **class approximately**  **80 percent**  **of the**  **sales and**  **82**

**percent of**  **the employment**  **occurs in**  **small businesses.**  **Convenience stores**  **with gasoline** 

**stations, shown**  **in Table**  **12.2.3, are**  **more mixed**  **with slightly**  **less than**  **50 percent**  **of the**  **sales**

**and slightly**  **more than**  **50 percent**  **of employment**  **occurring in**  **entities fitting**  **the definition**  **of**

**small businesses.** 

**In examining**  **the four**  **business classes**  **considered in**  **the LCC**  **analysis in**  **Chapter 8,**  **DOE**

**considered which**  **business class**  **would be**  **substantially considered**  **representative of**  **small**

**businesses and**  **with the**  **potential to**  **be adversely**  **affected under**  **this rulemaking.**  **DOE does**  **not**

**have sufficient**  **information to**  **correlate annual**  **revenues or**  **the likelihood**  **of a**  **purchaser being**  **a**

**small business**  **with the**  **costs of**  **more efficient**  **CRE units**  **to identify**  **the sub­group**  **of small** 

**businesses in**  **the building**  **sample. However,**  **DOE believes**  **that the**  **results from**  **the LCC**  **sub**

**group analysis**  **provide an**  **adequate indication**  **of whether**  **the small**  **business sub­group**  **would be** 

**disproportionately advantaged**  **or disadvantaged**  **by a**  **proposed standard.**  **Convenience stores**  **in**

**12­4**

### particular **appear be**  **much more**  **representative of**  **small businesses**  **overall. Convenience**  **stores**

**and specialty**  **stores such**  **as meat**  **markets and**  **liquor stores**  **pay higher**  **electricity prices** 

**compared to**  **the other**  **business classes,**  **but use**  **similar amounts**  **of electricity**  **for the**  **same type** 

**of equipment.**  **Convenience stores**  **were estimated**  **to typically**  **face somewhat**  **higher costs**  **of**

**capital (i.e.,**  **a difference**  **estimated in**  **Chapter 8**  **as 250**  **basis points,**  **or 2.5**  **percent). In**  **addition,**

**for the**  **sub­group analysis,**  **it was**  **assumed that**  **convenience stores**  **that are**  **not represented**  **by a** 

**national chain**  **have no**  **access to**  **national accounts**  **and therefore**  **face higher**  **wholesale and**  **retail**

**markups for**  **initial equipment**  **purchases, and**  **therefore experience**  **higher equipment**  **prices. This** 

**is somewhat**  **offset by**  **the likelihood**  **that they**  **will keep**  **the equipment**  **for longer**  **periods,**

**resulting in**  **longer average**  **equipment lifetimes.**  **DOE believes**  **that this**  **trend is**  **likely common** 

**in small**  **grocery stores**  **as well.**  **Overall, however,**  **the lower**  **the cost**  **of electricity**  **and the**  **higher**

**the cost**  **of capital,**  **the more**  **likely it**  **is that**  **an entity**  **would be**  **disadvantaged by**  **the requirement** 

**to purchase**  **more efficient**  **CRE units.** 

**Based on**  **the analysis,**  **DOE has**  **used data**  **for convenience**  **stores as**  **a representative** 

**proxy for**  **small business**  **CRE purchasers,**  **but with**  **the added**  **assumption of**  **no access**  **to national** 

**account purchasing,**  **resulting in**  **higher equipment**  **costs. This**  **has been**  **defined as**  **the**

**representative sub­group**  **for the**  **LCC sub­group**  **analysis. With**  **the exception**  **of the**  **equipment**

**cost, all**  **other inputs**  **to the**  **LCC and**  **PBP spreadsheet**  **model for**  **the small**  **business sub­group** 

**were the**  **same as**  **for convenience**  **stores considered**  **in the**  **rulemaking (e.g.,**  **total installed**  **costs,**

**repair costs,**  **maintenance costs,**  **discount rates).** 

12.2.2 Life­Cycle Cost and Payback Period Results for Small Business Sub­Group

**Table 12.2.4**  **summarizes the**  **LCC savings**  **results for**  **the small**  **business sub­group**  **for**

**each of**  **the CRE**  **equipment classes,**  **and compares**  **them to**  **the results**  **for the**  **total sample**  **of**

**business types**  **used in**  **the overall**  **LCC analysis.** 

**Table 12.2.5**  **compares the**  **percentages of**  **customers showing**  **LCC savings**  **for the**  **two**

**groups of**  **businesses, namely,**  **the small**  **business sub­group**  **and the**  **total sample**  **of all**  **business**

**types considered**  **for this**  **CRE rulemaking.**  **Similarly, Table**  **12.2.6 summarizes**  **the mean**  **PBP**

**results for**  **the two**  **groups, and**  **Table 12.2.7**  **compares the**  **percentages of**  **the two**  **groups**

**experiencing payback**  **periods of**  **less than**  **3 years.**  **The baseline**  **in all**  **cases is**  **the baseline** 

**efficiency level**  **used in**  **the life­cycle**  **cost analysis**  **(level 1).**  **Results are**  **provided by**  **TSL for** 

**each of**  **the 15**  **CRE equipment**  **classes. As**  **is evident**  **from the**  **LCC and**  **PBP results,**  **the overall** 

**impact of**  **a potentially**  **higher CRE**  **efficiency level**  **on the**  **small business**  **sub­group is** 

**qualitatively similar**  **to the**  **impact on**  **the full**  **sample of**  **business types**  **that use**  **CRE units** 

**covered by**  **this rulemaking.**  **The LCC**  **savings are**  **somewhat higher**  **for the**  **small business**  **sub**

**group, with**  **the higher**  **cost of**  **energy and**  **higher discount**  **rates offset**  **by the**  **increased lifetime** 

**compared to**  **the overall**  **population. The**  **maximum LCC**  **savings are**  **obtained at**  **TSL 3**  **in all** 

**equipment classes**  **but VCT.RC.L,**  **where it**  **is TSL**  **4 for**  **the small**  **business sub­group.**  **In**

**addition, for**  **the small**  **business sub­group,**  **only one**  **equipment class,**  **SOC.RC.M, showed**  **a**

**negative LCC**  **at level**  **5. Based**  **on this**  **analysis, as**  **a recognizable**  **sub­group, small**  **businesses**

**would expect**  **no additional**  **negative impact**  **from increased**  **CRE efficiency**  **levels compared**  **with**

**the full**  **sample of**  **CRE customers**  **considered in**  **the rulemaking.** 

**12­5**

### Table 12.2.4 Mean LCC Savings by Equipment Class and Trial Standard Level, Small

Business Sub­Group and All Business Types (2007$)*

TSL 1 TSL 2 TSL 3 TSL4 TSL5

**Small Business**  **1536 1524**  **2096 2096**  **564**

**All Business**  **Types 1201**  **1143 1551**  **1551 (234)** 

**Small Business**  **3995 5158**  **5301 4688**  **4688**

**All Buildings**  **3132 4005**  **4089 3364**  **3364**

**Small Business**  **968 1413**  **1840 1840**  **1308**

**All Business**  **Types 758**  **1065 1342**  **1342 703** 

**Small Business**  **366 757**  **1689 1625**  **1625**

**All Business**  **Types 286**  **581 1107**  **867 867** 

**Small Business**  **876 4842**  **4941 5042**  **5042**

**All Business**  **Types 676**  **3594 3662**  **3546 3546** 

**Small Business**  **2957 4981**  **5155 5151**  **5151**

**All Business**  **Types 2305**  **3806 3841**  **3818 3818** 

**Small Business**  **805 1511**  **2031 2031**  **2031**

**All Business**  **Types 640**  **1191 1565**  **1565 1565** 

**Small Business**  **1036 1044**  **1492 1492**  **400**

**All Business**  **Types 810**  **782 1106**  **1106 (170)** 

**Small Business**  **669 994**  **1346 1346**  **953**

**All Business**  **Types 527**  **756 988**  **988 516** 

**Small Business**  **461 973**  **1107 1107**  **(175)**

**All Business**  **Types 363**  **759 819**  **819 (673)** 

**Small Business**  **476 1013**  **1221 1202**  **1202**

**All Business**  **Types 376**  **792 942**  **917 917** 

**Small Business**  **766 1206**  **1274 1274**  **1274**

**All Business**  **Types 593**  **927 971**  **971 971** 

**Small Business**  **393 708**  **1005 974**  **974**

**All Business**  **Types 312**  **551 759**  **721 721** 

**Small Business**  **766 1394**  **2069 2052**  **2052**

**All Business**  **Types 610**  **1094 1585**  **1559 1559** 

**Small Business**  **244 898**  **925 919**  **919**

**All Business**  **Types 192**  **692 710**  **693 693**  **VOP.RC.M**

**VOP.RC.L**

**VOP.SC.M**

**VCT.RC.M**

**VCT.RC.L**

**VCT.SC.I**

**VCS.SC.I**

**SVO.RC.M**

**SVO.SC.M**

**SOC.RC.M**

**HZO.RC.M**

**HZO.RC.L**

**HZO.SC.M**

**HZO.SC.L**

**HCT.SC.I**

***** **Energy savings**  **calculated compared**  **to baseline.**  **Values in**  **parentheses stand**  **for negative**  **LCC savings** 

**12­6**

### Table 12.2.5 Percentage of Customers Showing Positive Life­Cycle Cost Savings by

Equipment Class and Trial Standard Level, Small Business Sub­Group and

All Business Types (2007$)*

TSL 1 TSL 2 TSL 3 TSL4 TSL5

**Small Business**  **100% 100%**  **100% 100%**  **58%**

**All Business**  **Types 100%**  **100% 100%**  **100% 35%** 

**Small Business**  **100% 100%**  **100% 100%**  **100%**

**All Buildings**  **100% 100%**  **100% 100%**  **100%**

**Small Business**  **100% 100%**  **100% 100%**  **95%**

**All Business**  **Types 100%**  **100% 100%**  **100% 81%** 

**Small Business**  **100% 100%**  **100% 95%**  **95%**

**All Business**  **Types 100%**  **100% 99%**  **79% 79%** 

**Small Business**  **100% 100%**  **100% 100%**  **100%**

**All Business**  **Types 100%**  **100% 100%**  **100% 100%** 

**Small Business**  **100% 100%**  **100% 100%**  **100%**

**All Business**  **Types 100%**  **100% 100%**  **100% 100%** 

**Small Business**  **100% 100%**  **100% 100%**  **100%**

**All Business**  **Types 100%**  **100% 100%**  **100% 100%** 

**Small Business**  **100% 100%**  **100% 100%**  **55%**

**All Business**  **Types 100%**  **100% 100%**  **100% 35%** 

**Small Business**  **100% 100%**  **100% 100%**  **96%**

**All Business**  **Types 100%**  **100% 100%**  **100% 82%** 

**Small Business**  **100% 100%**  **100% 100%**  **33%**

**All Business**  **Types 100%**  **100% 100%**  **100% 26%** 

**Small Business**  **100% 100%**  **100% 100%**  **100%**

**All Business**  **Types 100%**  **100% 100%**  **100% 100%** 

**Small Business**  **100% 100%**  **100% 100%**  **100%**

**All Business**  **Types 100%**  **100% 100%**  **100% 100%** 

**Small Business**  **100% 100%**  **100% 100%**  **100%**

**All Business**  **Types 100%**  **100% 100%**  **100% 100%** 

**Small Business**  **100% 100%**  **100% 100%**  **100%**

**All Business**  **Types 100%**  **100% 100%**  **100% 100%** 

**Small Business**  **100% 100%**  **100% 100%**  **100%**

**All Business**  **Types 100%**  **100% 100%**  **100% 100%**  **VOP.RC.M**

**VOP.RC.L**

**VOP.SC.M**

**VCT.RC.M**

**VCT.RC.L**

**VCT.SC.I**

**VCS.SC.I**

**SVO.RC.M**

**SVO.SC.M**

**SOC.RC.M**

**HZO.RC.M**

**HZO.RC.L**

**HZO.SC.M**

**HZO.SC.L**

**HCT.SC.I**

***** **Compared with**  **purchase of**  **a baseline**  **level equipment** 

**12­7**

### Table 12.2.6 Mean Payback Period by Equipment Class and Trial Standard Level, Small

Business Sub­Group and All Business Types (2007$)*

TSL 1 TSL 2 TSL 3 TSL4 TSL5

**Small Business**  **0.8 1.3**  **2.0 2.0**  **8.5**

**All Business**  **Types 0.9**  **1.5 2.2**  **2.2 9.7** 

**Small Business**  **0.7 1.1**  **1.2 2.7**  **2.7**

**All Buildings**  **0.8 1.2**  **1.3 3.0**  **3.0**

**Small Business**  **0.8 1.6**  **2.4 2.4**  **5.2**

**All Business**  **Types 0.8**  **1.8 2.7**  **2.7 5.9** 

**Small Business**  **0.8 1.3**  **4.2 5.6**  **5.6**

**All Business**  **Types 0.9**  **1.4 4.6**  **6.1 6.1** 

**Small Business**  **1.1 2.4**  **2.4 3.4**  **3.4**

**All Business**  **Types 1.2**  **2.6 2.6**  **3.7 3.7** 

**Small Business**  **1.0 1.6**  **2.1 2.2**  **2.2**

**All Business**  **Types 1.1**  **1.7 2.4**  **2.5 2.5** 

**Small Business**  **0.4 0.6**  **1.3 1.3**  **1.3**

**All Business**  **Types 0.4**  **0.6 1.4**  **1.4 1.4** 

**Small Business**  **0.8 1.3**  **1.9 1.9**  **8.5**

**All Business**  **Types 0.8**  **1.5 2.1**  **2.1 9.7** 

**Small Business**  **0.6 1.4**  **2.3 2.3**  **5.2**

**All Business**  **Types 0.7**  **1.6 2.6**  **2.6 5.9** 

**Small Business**  **0.5 0.8**  **1.7 1.7**  **10.8**

**All Business**  **Types 0.6**  **0.9 1.9**  **1.9 12.6** 

**Small Business**  **0.5 0.8**  **1.2 1.6**  **1.6**

**All Business**  **Types 0.6**  **0.9 1.4**  **1.8 1.8** 

**Small Business**  **1.0 1.4**  **1.7 1.7**  **1.7**

**All Business**  **Types 1.1**  **1.5 1.8**  **1.8 1.8** 

**Small Business**  **0.4 1.0**  **1.8 2.3**  **2.3**

**All Business**  **Types 0.4**  **1.1 2.0**  **2.5 2.5** 

**Small Business**  **0.3 0.8**  **1.5 1.7**  **1.7**

**All Business**  **Types 0.4**  **0.9 1.6**  **1.9 1.9** 

**Small Business**  **0.6 1.3**  **1.4 1.9**  **1.9**

**All Business**  **Types 0.7**  **1.5 1.6**  **2.1 2.1**  **VOP.RC.M**

**VOP.RC.L**

**VOP.SC.M**

**VCT.RC.M**

**VCT.RC.L**

**VCT.SC.I**

**VCS.SC.I**

**SVO.RC.M**

**SVO.SC.M**

**SOC.RC.M**

**HZO.RC.M**

**HZO.RC.L**

**HZO.SC.M**

**HZO.RC.L**

**HCT.SC.I**

***Compared to**  **purchase of**  **baseline equipment** 

**12­8**

### Table 12.2.7 Percentage of Customers Showing PBP Less Than 3 Years, by Equipment

Class and Trial Standard Level, Small Business Sub­Group and All Business

Types*

TSL 1 TSL 2 TSL 3 TSL4 TSL5

**Small Business**  **100% 100%**  **95% 95%**  **1%**

**All Business**  **Types 100%**  **100% 88%**  **88% 0%** 

**Small Business**  **100% 100%**  **100% 59%**  **59%**

**All Buildings**  **100% 100%**  **100% 51%**  **51%**

**Small Business**  **100% 100%**  **79% 79%**  **5%**

**All Business**  **Types 100%**  **99% 68%**  **68% 1%** 

**Small Business**  **100% 100%**  **21% 4%**  **4%**

**All Business**  **Types 100%**  **100% 8%**  **1% 1%** 

**Small Business**  **100% 82%**  **80% 37%**  **37%**

**All Business**  **Types 100%**  **70% 68%**  **31% 31%** 

**Small Business**  **100% 100%**  **94% 87%**  **87%**

**All Business**  **Types 100%**  **100% 85%**  **79% 79%** 

**Small Business**  **100% 100%**  **100% 100%**  **100%**

**All Business**  **Types 100%**  **100% 100%**  **100% 100%** 

**Small Business**  **100% 100%**  **95% 95%**  **1%**

**All Business**  **Types 100%**  **99% 90%**  **90% 0%** 

**Small Business**  **100% 100%**  **84% 84%**  **5%**

**All Business**  **Types 100%**  **100% 70%**  **70% 1%** 

**Small Business**  **100% 100%**  **96% 96%**  **0%**

**All Business**  **Types 100%**  **100% 92%**  **92% 0%** 

**Small Business**  **100% 100%**  **100% 100%**  **100%**

**All Business**  **Types 100%**  **100% 100%**  **99% 99%** 

**Small Business**  **100% 100%**  **100% 100%**  **100%**

**All Business**  **Types 100%**  **100% 99%**  **99% 99%** 

**Small Business**  **100% 100%**  **99% 87%**  **87%**

**All Business**  **Types 100%**  **100% 95%**  **79% 79%** 

**Small Business**  **100% 100%**  **100% 100%**  **100%**

**All Business**  **Types 100%**  **100% 100%**  **99% 99%** 

**Small Business**  **100% 100%**  **100% 98%**  **98%**

**All Business**  **Types 100%**  **100% 100%**  **92% 92%**  **VOP.RC.M**

**VOP.RC.L**

**VOP.SC.M**

**VCT.RC.M**

**VCT.RC.L**

**VCT.SC.I**

**VCS.SC.I**

**SVO.RC.M**

**SVO.SC.M**

**SOC.RC.M**

**HZO.RC.M**

**HZO.RC.L**

**HZO.SC.M**

**HZO.RC.L**

**HCT.SC.I**

***Compared to**  **purchase of**  **baseline equipment** 

**12­9**

### REFERENCES

**1. Title**  **13, Code**  **of Federal**  **Regulations, Chapter**  **I–Small Business**  **Administration, Part**  **121–**

**Small Business**  **Administration, Subpart**  **A–Size Eligibility**  **Provisions and**  **Standards, May** 

**4, 2005.** 

**2. U.S.**  **CENSUS. 2002.**  **U.S. Census**  **Bureau American**  **Fact Finder,**  **Sector 44:**  **Retail Trade:** 

**Subject Series–Estab**  **& Firm**  **Size: Single**  **Unit and**  **Multiunit Firms**  **for the**  **United States:** 

**2002. Accessed**  **Dec 2007.**  **http://factfinder.census.gov/servlet/IBQTable?_bm=y&­**

**ds_name=EC0244SSSZ3&­_skip=600&­geo_id=&­parsed=true&­_lang=en&­**

**fds_name=EC0200A1**

**3. SBA.**  **2007. The**  **Small Business**  **Economy for**  **Data Year**  **2006, Report**  **to the**  **President.**

**U.S. Small**  **Business Administration.**  **U.S. Government**  **Printing Office,**  **Washington, D.C.** 

**<http://www.sba.gov/advo/research/sb_econ2007.pdf>**

**12­10**