12 -i 

### CHAPTER 12. LIFE

- CYCLE COST SUB

- GROUP ANALYSIS

TABLE OF CONTENTS

12.1 INTRODUCTION ............................................................................................................ 12-1

12.2 SUB

- GROUPS DESCRIPTION ....................................................................................... 12-1

12.2.1 Low -Income Consumers .................................................................................... 12-1

12.2.2 Institutions of Religious Worship ...................................................................... 12-2

12.2.3 Institutions that Serve Low -Income Populations ............................................... 12-2

12.3 LCC SUB

- GROUP RESULTS ......................................................................................... 12-3

REFERENCES ........................................................................................................................ 12-13

LIST OF TABLES

Table 12.2.1 U.S. Census Bureau 2005 Definition of Low-Income Households ...................... 12-2

Table 12.3.1 Product Class 1

– Instant Start (IS) and Rapid Start (RS) Ballasts That
Operate Two 4 -Foot Medium Bipin (MBP) Lamps (Commercial, T12 Baseline): LCC and PBP Sub-Group Results .................................................... 12-4

Table 12.3.2 Product Class 1 - IS and RS Ballasts That Operate Two 4 -Foot MBP Lamps (Commercial, T8 Baseline): LCC and PBP Sub -Group Results ....................... 12-5

Table 12.3.3 Product Class 1 - IS and RS Ballasts That Operate Two 4 -Foot MBP Lamps (Residential, T12 Baseline): LCC and PBP Sub-Group Results ....................... 12-6

Table 12.3.4 Product Class 1 - IS and RS Ballasts That Operate Two 4 -Foot MBP Lamps (Residential, T8 Baseline): LCC and PBP Sub-Group Results ......................... 12-6

Table 12.3.5 Product Class 1 - IS and RS Ballasts That Operate Four 4

- Foot MBP Lamps: LCC and PBP Results: LCC and PBP Sub-Group Results ................... 12-7

Table 12.3.6 Product Class 1 - IS and RS Ballasts That Operate Two 8

- Foot Slimline Lamps (T12 Baseline): LCC and PBP Sub-Group Results ............................... 12-8

Table 12.3.7 Product Class 1 - IS and RS Ballasts That Operate Two 8

- Foot Slimline Lamps (T8 Baseline): LCC and PBP Sub-Group Results ................................. 12-9

Table 12.3.8 Product Class 2 – Programmed Start (PS) Ballasts That Operate Two 4 -Foot MBP Lamps: LCC and PBP Sub-Group Results ............................................. 12-10

Table 12.3.9 Product Class 2 - PS Ballasts That Operate Four 4 -Foot MBP Lamps: LCC and PBP Sub-Group Results ............................................................................ 12-11

Table 12.3.10 Product Class 2 - PS Ballasts That Operate Two 4 -Foot Miniature Bipin (MiniBP) Standard Output (SO) Lamps: LCC and PBP Sub -Group Results .. 12-1212 -1 

### CHAPTER 12. LIFE

- CYCLE COST SUB

- GROUP ANALYSIS

12.1 INTRODUCTION

The life

- cycle cost (LCC) sub-group analysis evaluates impacts of standards on

identifiable groups, such as different consumer populations or business types that may be disproportionately affected by any national energy conservation standard level. For the notice of proposed rulemaking (NOPR) , the U.S Department of Energy ( DOE ) analyzed the LCCs and payback periods ( PBPs ) for consumers that fall into such groups. The analysis determined whether any particular group of consumers would be adversely affected by any of the trial

standard levels (TSLs)

.

DOE determine d the impact on consumer sub- group s using the LCC s preadsheet model. Chapter 8 of the NOPR technical support document explains in detail the inputs to the model used in determining LCC impacts and PBPs.

This chapter describes the sub -group identification in further detail and gives the results of the LCC and PBP analyses for the considered sub -group s.



### 12.2 SUB

- GROUP S DESCRIPTION

Using the LCC spreadsheet model, DOE determined the impact of the TSL s on the following consumer sub-groups: low-income consumers, institutions of religious worship, and

institutions that serve low -income populations. Representative ballast designs used in the industrial sector ( e.g. , ballasts operating high output lamps) are not typically used by the identified sub-groups, and were not included in the sub-group analysis.

12.2.1 Low- Income Consumers

To reflect conditions faced by low-income consumers, DOE adjusted electricity prices to represent rates paid by consumers living below the “poverty line.” DOE defines low- income consumers using data from the U.S. Census Bureau, 1 

### as has been done in the Fluo rescent and Incandescent Lamps R ule. 2 

### As defined in the Energ y Information Administration’s 2005 Residential Energy Consumption Survey (RECS), 3 

### the poverty line varies with household size, head of household age, and family income. Table 12.2.1 summarizes the income level baselines for selecting low -income households from the RECS sample. DOE also assumed that lowincome consumers use residential ballasts only, and did not include commercial ballast designs in the LCC analysis fo r this sub-group.12 -2 

### Table 12.2.1 U.S. Census Bureau 2005 Definition of Low- Income Households

Household Size Owner Age Weighted

- Average Threshold

1 65 and over $9

, 367

1 64 and under $10,160

2 65 and over $11,815

2 64 and under $13,145

3 Any $15,577

4 Any $19,971

5 Any $23,613

6 Any $26,683

7 Any $30,249

8 Any $33,610

9 or more Any $40,288



### DOE discovered that residential low- income consumers faced electricity prices that were higher by 0. 02 cents per kWh (in 2005 dollars) than the prices faced by consumers above the poverty line in 2005. In the sub-groups analysis, DOE multiplied the national average residential electricity price of $0.1222 by 1.002 to arrive at the low- income residential electrici ty price of

$0.1224. Because of the large diversity of low

- income families in the residential sector, DOE does not expect to see differences in other inputs like operating hours, lamp types, or event response behaviors that vary significantly on average fr om the residential sector as a whole. Therefore, with the exception of electricity prices, DOE used the same inputs in the low- income consumer sub-group analysis as it used for the general residential sector population.

12.2.2 Institutions of Religious Worship

DO E found that institutions of religious worship operate for fewer hours per year than any other building type in the commercial sector according to the U.S. Lighting Market

Characterization: Volume I 4 

### and 2003 Commercial Buildings Energy Consumption Survey 5 

### For institutions of religious worship, DOE assumed that this sub-group has lower annual operating hours than the commercial sector average used in the main LCC analysis. Specifically, DOE used 2,239 instead of the national average of 3,886 operating hours for the sub -group analysis.

DOE also assumed that institutions of religious worship use commercial ballasts only, and did

not include residential ballast designs in the LCC analysis for this sub- group. In general, because of the large diversity of institu tions of religious worship in the commercial sector, DOE does not expect to see differences in other inputs like electricity prices or sales tax that vary significantly on average from the commercial sector as a whole. Therefore, with the exception of oper ating hours, DOE used the same inputs in the institutions of religious worship sub-group analysis as it used for the general commercial sector population.

12.2.3 Institutions that Serve Low

- Income Populations

In the Fluorescent and Incandescent Lamps Rule, DOE performed research on institutions

that serve low -income populations and found a wide variety of non-profit, for-profit, and governmental organizations. 1 

### Because of the large diversity of organizations in this sector, DOE does not expect to see operating h ours, lamp types, or event response behaviors that vary significantly on average from the commercial sector as a whole. DOE, however, expects that the majority of organizations serving low-income populations are small non-profit groups. For this12 -3 

### reason, DO E chose a sub-group scenario with a discount rate that is 3.8 percent higher than the average discount rate for the commercial sec tor (for a discount rate of 10.7 percent versus 6.9 percent). Complete details for calculating discount rates are given in c ha pter 8. DOE assumed

that these institutions use commercial ballasts only, and did not include residential ballast designs in the LCC analysis for this sub-group.

12.3 LCC SUB

- GROUP RESULTS

Table 12.3.1 through Table 12.3.10 show the LCC impacts and PBP s for identified subgroups that purchase ballasts. Negative PBP values indicate standards that reduce operating costs

and installed costs. Entries of “ N/A ” indicate standard level s that do not reduce operating costs. In general, the average LCC savings for the identified sub- groups at the considered efficiency levels are not significantly different from the average for all consumers. LCC results that were positive in the primary analysis remained positive for each sub-group ; the same occurred for negative primary LCC results.12 -4 

### Table 12.3.1 Product Class 1 – Instant Start ( IS ) and Rapid Start ( RS ) Ballasts That
Operate T wo 4- Foot Medium Bipin ( MBP ) Lamps (Commercial, T12 Baseline): LCC and

PBP Sub

- Group Results

Trial

Standard

Level Efficiency

Level Life

- Cycle Cost

2009$ Life

- Cycle Cost Savings Median
Payback Period*

years Installed

Cost Discounted
Operating

Cost LCC Average
Savings

2009$ Percent of

Consumers that

Experience

Net

Cost Net

Benefit

Sub

- Group: Institutions of Religious Worship

Event I: Replacement

Baseline 64.63 185.70 250.33

1 1 55.91 178.85 234.76 15.57 0.0 100.0

- 15.61

2 2 58.58 170.82 229.40 20.93 0.0 100.0

- 5.00

3 3 59.16 156.54 215.71 34.62 0.0 100.0

- 2.35

Event II: New Construction / Renovation

Baseline 67.02 185.70 252.72

1 1 58.30 158.28 216.58 36.14 0.0 100.0

- 3.98

2 2 60.97 151.32 212.29 40.43 0.0 100.0

- 2.21

3 3 61.55 148.39 209.95 42.77 0.0 100.0

- 1.84

Sub

- Group: Institutions Serving Low

- Income Populations

Event I: Replacement

Baseline 64.63 198.59 263.22

1 1 55.91 191.11 247.02 16.20 0.0 100.0

- 8.99

2 2 58.58 182.54 241.12 22.10 0.0 100.0

- 2.88

3 3 59.16 167.32 226.48 36.74 0.0 100.0

- 1.35

Event II: New Construction / Renovation

Baseline 67.02 198.59 265.61

1 1 58.30 169.17 227.47 38.14 0.0 100.0

- 2.29

2 2 60.97 161.75 222.71 42.90 0.0 100.0

- 1.27

3 3 61.55 158.63 220.18 45.43 0.0 100.0

- 1.06

* Negative PBP values indicate standards that reduce operating costs and installed costs.12 -5 

### Table 12.3.2 Product Class 1 - IS and RS Ballasts That Operate Two 4- Foot MBP Lamps
(Commercial, T8 Baseline): LCC and PBP Sub

- Group Results

Trial

Standard

Level Efficiency

Level Life

- Cycle Cost

2009$ Life

- Cycle Cost Savings Median
Payback Period

years Installed

Cost Discounted
Operating

Cost LCC Average
Savings

2009$ Percent of

Consumers that

Experience

Net

Cost Net

Benefit

Sub

- Group: Institutions of Religious Worship

Event I: Replacement

1 Baseline / 1 55.08 178.85 233.93

2 2 57.74 170.82 228.56 5.37 0.1 99.9 4.23

3 3 58.33 156.54 214.87 19.06 0.0 100.0 1.86

Event II: New Construction / Renovation

1 Baseline / 1 57.47 178.85 236.32

2 2 60.13 170.89 231.02 5.29 0.1 99.9 4.27

3 3 60.72 167.54 228.26 8.06 0.0 100.0 3.66

Sub

- Group: Institutions Serving Low

- Income Populations

Event I: Replacement

1 Baseline / 1 55.08 191.11 246.19

2 2 57.74 182.54 240.29 5.90 0.0 100.0 2.43

3 3 58.33 167.32 225.64 20.54 0.0 100.0 1.07

Event II: New Construction / Renovation

1 Baseline / 1 57.47 191.11 248.58

2 2 60.13 182.62 242.75 5.82 0.0 100.0 2.46

3 3 60.72 179.05 239.77 8.81 0.0 100.0 2.1112 -6 

### Table 12.3.3 Product Class 1 - IS and RS Ballasts That Operate Two 4- Foot MBP Lamps
( Residential , T12 Baseline) : LCC and PBP Sub

- Group Results

Trial

Standard

Level Efficiency

Level Life

- Cycle Cost

2009$ Life

- Cycle Cost Savings Median
Payback Period*

years Installed

Cost Discounted
Operating

Cost LCC Average
Savings

2009$ Percent of

Consumers that

Experience

Net

Cost Net

Benefit

Sub

- Group: Low

- Income Consumers

Event I: Replacement

Baseline 52.99 67.85 120.84

1 1 45.02 56.51 101.53 19.31 0.0 100.0

- 7.60

2, 3 3 46.24 57.41 103.64 17.20 0.0 100.0

- 6.99

Event II: New Construction / Renovation

Baseline 55.38 67.85 123.23

1 1 47.41 56.10 103.51 19.72 0.0 100.0

- 7.43

2, 3 3 48.63 53.64 102.27 20.96 0.0 100.0

- 5.14

* Negative PBP values indicate standards that reduce operating costs and installed costs.



### Table 12.3.4 Product Class 1 - IS and RS Ballasts That Operate Two 4- Foot MBP Lamps
( Residential , T8 Baseline) : LCC and PBP Sub

- Group Results

Trial

Standard

Level Efficiency

Level Life

- Cycle Cost

2009$ Life

- Cycle Cost Savings Median
Payback Period*

years Installed

Cost Discounted
Operating

Cost LCC Average
Savings

2009$ Percent of

Consumers that

Experience

Net

Cost Net

Benefit

Sub

- Group: Low

- Income Consumers

Event I: Replacement

1 Baseline/1 44.11 56.51 100.62

2, 3 3 45.33 57.41 102.74

- 2.12 100.0 0.0 N/A

Event II: New Construction / Renovation

1 Baseline/1 46.50 56.51 103.01

2, 3 3 47.72 54.03 101.75 1.26 10.6 89.4 5.37

* Entries of “ N/A ” indicate standard levels that do not reduce operating costs.12 -7 

### Table 12.3.5 Product Class 1

- IS and RS Ballasts That Operate Four 4- Foot MBP Lamps:

LCC and PBP Results : LCC and PBP Sub

- Group Results

Trial

Standard

Level Efficiency

Level Life

- Cycle Cost

2009$ Life

- Cycle Cost Savings Median
Payback Period

years Installed

Cost Discounted
Operating

Cost LCC Average
Savings

2009$ Percent of

Consumers that

Experience

Net

Cost Net

Benefit

Sub

- Group: Institutions of Religious Worship

Event I: Replacement

1, 2 Baseline / 2 76.77 323.00 399.77

3 3 79.33 315.65 394.98 4.78 0.3 99.7 4.45

Event II: New Construction / Renovation

1, 2 Baseline / 2 79.16 323.00 402.16

3 3 81.72 318.63 400.35 1.81 13.7 86.3 7.48

Sub

- Group: Institutions Serving Low

- Income Populations

Event I: Replacement

1, 2 Baseline / 2 76.77 345.04 421.81

3 3 79.33 337.21 416.54 5.27 0.0 100.0 2.56

Event II: New Construction / Renovation

1, 2 Baseline / 2 79.16 345.04 424.20

3 3 81.72 340.38 422.10 2.10 6.7 93.3 4.3112 -8 

### Table 12.3.6 Product Class 1 - IS and RS Ballasts That Operate Two 8-Foot Slimline
Lamps (T12 Baseline) : LCC and PBP Sub

- Group Results

Trial

Standard

Level Efficiency

Level Life

- Cycle Cost

2009$ Life

- Cycle Cost Savings Median
Payback Period*

years Installed

Cost Discounted
Operating

Cost LCC Average
Savings

2009$ Percent of

Consumers that

Experience

Net

Cost Net

Benefit

Sub

- Group: Institutions of Religious Worship

Event I: Replacement

1 Baseline / 1 90.06 343.91 433.97

2 2 89.34 327.51 416.86 17.12 0.0 100.0

- 0.55

3 3 89.68 317.44 407.12 26.85 0.0 100.0

- 0.18

Event II: New Construction / Renovation

1 Baseline / 1 92.45 343.91 436.36

2 2 91.73 333.01 424.74 11.68 0.0 100.0

- 0.81

3 3 92.07 328.05 420.11 16.25 0.0 100.0

- 0.30

Sub

- Group: Institutions Serving Low

- Income Populations

Event I: Replacement

1 Baseline / 1 90.06 367.73 457.79

2 2 89.34 350.13 439.48 18.31 0.0 100.0

- 0.31

3 3 89.68 339.39 429.07 28.72 0.0 100.0

- 0.10

Event II: New Construction / Renovation

1 Baseline / 1 92.45 367.73 460.18

2 2 91.73 355.99 447.72 12.45 0.0 100.0

- 0.47

3 3 92.07 350.70 442.77 17.41 0.0 100.0

- 0.17

* Negative PBP values indicate standards that reduce operating costs and installed costs.12 -9 

### Table 12.3.7 Product Class 1 - IS and RS Ballasts That Operate Two 8-Foot Slimline
Lamps ( T8 Baseline) : LCC and PBP Sub

- Group Results

Trial

Standard

Level Efficiency

Level Life

- Cycle Cost

2009$ Life

- Cycle Cost Savings Median
Payback Period

years Installed

Cost Discounted
Operating

Cost LCC Average
Savings

2009$ Percent of

Consumers that

Experience

Net

Cost Net

Benefit

Sub

- Group: Institutions of Religious Worship

Event I: Replacement

1, 2 Baseline / 2 90.03 327.51 417.55

3 3 90.03 317.44 407.81 9.74 0.0 100.0 0.42

Event II: New Construction / Renovation

1, 2 Baseline / 2 92.42 327.51 419.93

3 3 92.75 322.64 415.40 4.54 0.0 100.0 0.88

Sub

- Group: Institutions Serving Low

- Income Populations

Event I: Replacement

1, 2 Baseline / 2 90.03 350.13 440.16

3 3 90.37 339.39 429.76 10.41 0.0 100.0 0.24

Event II: New Construction / Renovation

1, 2 Baseline / 2 92.42 350.13 442.55

3 3 92.75 344.94 437.69 4.86 0.0 100.0 0.5012

- 10 

### Table 12.3.8 Product Class 2 – Programmed Start ( PS ) Ballasts That Operate Two 4- Foot

MBP Lamps : LCC and PBP Sub

- Group Results

Trial

Standard

Level Efficiency

Level Life

- Cycle Cost

2009$ Life

- Cycle Cost Savings Median
Payback Period

years Installed

Cost Discounted
Operating

Cost LCC Average
Savings

2009$ Percent of

Consumers that

Experience

Net

Cost Net

Benefit

Sub

- Group: Institutions of Religious Worship

Event I: Replacement

Baseline 57.92 147.32 205.24

1, 2 2 59.17 137.56 196.73 8.51 0.0 100.0 1.85

3 3 59.60 135.76 195.35 9.89 0.0 100.0 2.11

Event II: New Construction / Renovation

Baseline 60.31 147.32 207.63

1, 2 2 61.55 137.50 199.05 8.58 0.0 100.0 1.84

3 3 61.99 135.91 197.90 9.73 0.0 100.0 2.14

Sub

- Group: Institutions Serving Low

- Income Populations

Event I: Replacement

Baseline 57.92 161.44 219.37

1, 2 2 59.17 150.78 209.94 9.42 0.0 100.0 1.07

3 3 59.60 148.80 208.40 10.97 0.0 100.0 1.22

Event II: New Construction / Renovation

Baseline 60.31 161.44 221.76

1, 2 2 61.55 150.71 212.26 9.49 0.0 100.0 1.06

3 3 61.99 148.97 210.96 10.79 0.0 100.0 1.2312

- 11 

### Table 12.3.9 Product Class 2 - PS Ballasts That Operate Four 4- Foot MBP Lamps : LCC

and PBP Sub

- Group Results

Trial

Standard

Level Efficiency

Level Life

- Cycle Cost

2009$ Life

- Cycle Cost Savings Median
Payback Period

years Installed

Cost Discounted
Operating

Cost LCC Average
Savings

2009$ Percent of

Consumers that

Experience

Net

Cost Net

Benefit

Sub

- Group: Institutions of Religious Worship

Event I: Replacement

Baseline 75.31 271.57 346.88

1 1 79.20 268.67 347.87

- 0.99 94.4 5.6 19.57

2, 3 3 81.28 261.72 343.01 3.88 22.4 77.6 8.84

Event II: New Construction / Renovation

Baseline 77.70 271.57 349.27

1 1 81.59 248.00 329.60 19.67 0.0 100.0 2.41

2, 3 3 83.67 242.23 325.91 23.36 0.0 100.0 2.97

Sub

- Group: Institutions Serving Low

- Income Populations

Event I: Replacement

Baseline 75.31 297.48 372.80

1 1 79.20 294.31 373.52

- 0.72 89.3 10.7 11.27

2, 3 3 81.28 286.72 368.00 4.79 11.2 88.8 5.09

Event II: New Construction / Renovation

Baseline 77.70 297.48 375.18

1 1 81.59 271.72 353.31 21.87 0.0 100.0 1.39

2, 3 3 83.67 265.41 349.08 26.10 0.0 100.0 1.7112

- 12 

### Table 12.3.10 Product Class 2 - PS Ballasts That Operate Two 4-Foot Miniature Bipin
Standard Output Lamps : LCC and PBP Sub

- Group Results

Trial

Standard

Level Efficiency

Level Life

- Cycle Cost

2009$ Life

- Cycle Cost Savings Median
Payback Period

years Installed

Cost Discounted
Operating

Cost LCC Average
Savings

2009$ Percent of

Consumers that

Experience

Net

Cost Net

Benefit

Sub

- Group: Institutions of Religious Worship

Event I: Replacement

Baseline 63.45 199.70 263.15

1 1 63.55 188.59 252.15 11.01 0.0 100.0 0.11

2 2 65.04 180.53 245.58 17.57 0.0 100.0 1.06

3 3 69.84 193.18 263.02 0.13 72.9 27.1 12.49

Event II: New Construction / Renovation

Baseline 65.84 199.70 265.54

1 1 65.94 188.59 254.53 11.01 0.0 100.0 0.11

2 2 67.43 186.89 254.33 11.21 0.0 100.0 1.58

3 3 72.23 182.14 254.37 11.17 0.5 99.5 4.64

Sub

- Group: Institutions Serving Low

- Income Populations

Event I: Replacement

Baseline 63.45 213.44 276.90

1 1 63.55 201.60 265.15 11.75 0.0 100.0 0.06

2 2 65.04 193.00 258.05 18.85 0.0 100.0 0.61

3 3 69.84 206.49 276.33 0.57 67.0 33.0 7.19

Event II: New Construction / Renovation

Baseline 65.84 213.44 279.29

1 1 65.94 201.60 267.54 11.75 0.0 100.0 0.06

2 2 67.43 199.79 267.22 12.07 0.0 100.0 0.91

3 3 72.23 194.72 266.94 12.34 0.0 100.0 2.6712

- 13 

### REFERENCES

1. U.S. Census Bureau. Poverty Thresholds 2005. 2006. (Last accessed February 27, 2010.)

< www.census.gov/hhes/www/poverty/threshld/thresh05.html >

2. U.S. Department of Energy– Office of Energy Efficiency and Renewable Ener gy. Energy Conservation Program for Consumer Products: Technical Support Document: Energy Efficiency Program for Consumer Products: Energy Conservation Standards for Fluorescent and Incandescent Lamps: Chapter 12. 2009. Washington, D.C.

< http://www1.eere.energy.gov/buildings/appliance_standards/residential/pdfs/ch_12_lamps_ standards_final_tsd.pdf >

3. U.S. Department of Energy– Ener gy Information A dministration

. Residential Energy Consumption Survey: File 1: Housing Unit Characteristics . 2005. (Last accessed February 27, 2011.) < www.eia.doe.gov/emeu/recs/recspubuse05/pubuse05.html >

4. U.S. Department of Energy– Office of Energy Efficiency and Renewable Energy. Energy Conservation Program for Consumer Products: Final Report: U.S. Lighting Market
Characterization, Volume I: National Lighting Inventory and Energy Consumption Estimate. 2002. Washington, D.C.

< www.eere.energy.gov/buildings/info/documents/pdfs/lmc_vol1_final.pdf >

5. U.S. Department of Energy– Energy Information Administrat ion . Commercial Building
Energy Consumption Survey: Micro- level data, file 2 Building Activities, Special Measures of Size, and Multi- building Facilities . 2003. (Last accessed February 27, 2011.)

< www.eia.doe.gov/emeu/cbecs/public_use.html >