APPENDIX 12­A PRELIMINARY M ANUFACTURER I NTERVIEW GUIDES

TA BLE OF CONTENTS

**12 ­A.1**  **INTRODUCTION**

**.......................................................................................... A­1** 

**12 ­A.2**  **HEATING PRODUCTS**  **PRELIMINARY M**  **ANUFACTURER INTERVIEW** 

**GUIDE**

**......................................................................................................................... A­1** 

**12 ­A.3**  **WATER HEATER**  **PRELIMINARY M**  **ANUFACTURER INTERVIEW** 

**GUIDE**

**......................................................................................................................... A­3** 

**12 ­A.4**  **DIRECT HEATING**  **EQ UIPMENT**  **PRELIMINARY M**  **ANUFACTURER**

**INTERVIEW GUIDE..................................................................................................... A­5** 

**12 ­A.5**  **POOL HEATER**  **P RELIMINARY**  **M ANUFACTURER**  **INTERVIEW GUIDE** 

**......................................................................................................................... A ­6** 

**12­A­i ________________________________________________________________________**  12 ­A.1 INTRODUCTION

**Thi s**  **appendix presents**  **samples of**  **the interview**  **guides used**  **during the** 

**pr eliminary**  **manufacturer interviews.**  **Th e**  **interview guides**  **detail the**  **non­confidential**

**qu estions**  **the Department**  **of Energy**  **(DOE) u**  **sed as**  **the basis**  **for the**  **discussions with** 

**ma nufactures**  **of residential**  **water heaters,**  **d irect**  **heating equipment,**  **and pool**  **heaters. Th**  **e**

**re sults**  **of the**  **manufacturer interviews**  **were aggregated**  **and incorporated**  **into the** 

**en gineering**  **analysis (see**  **chapter 5**  **o f**  **the preliminary**  **technical support**  **document (TSD))** 

**an d**  **the preliminary**  **manufacturer impact**  **analysis (see**  **chapter 12**  **of the**  **preliminary**

**TSD ).** 

12 ­A.2 HEATING PRODUCTS PRELIMINARY MANUFACTURER

IN TERVIEW GUIDE

**The following**  **questions comprised**  **the general**  **questions DOE**  **used while** 

**in terviewing**  **all water**  **heater, direct**  **heating equipment,**  **and pool**  **heater manufacturers.** 

He ating Products Rulemaking

– Pr eliminary Interview Guide

Pr eliminary Manufacturer Impact Analysis Topics

1 K ey Issues

**1.1 What**  **are the**  **key issues**  **for your**  **company regarding**  **the residential**  **heating**

**pr oducts**  **rulemaking?**

**1.2 Are**  **there any**  **patent, technology,**  **or other**  **issues that**  **you are**  **aware of**  **that would** 

**pr event**  **your company**  **or competitors**  **from implementing**  **higher­efficiency**

**de signs?** 

2 S hipment Projections

**2.1 What**  **is your**  **company’s approximate**  **market share**  **in each**  **of the**  **product classes?** 

**2.2 Would**  **you expect**  **your market**  **share to**  **change once**  **standards become**  **effective?**

**Do es**  **your outlook**  **change with**  **higher efficiency**  **levels?**

**2.3 How**  **w ould**  **you expect**  **shipments to**  **change for**  **the industry**  **as a**  **w hole**  **as a** 

**f unction**  **of standards**  **and why?** 

**2.4 Looking**  **at price/cost**  **effects only,**  **how w**  **ould you**  **expect shipments**  **to change**  **for a** 

**2 5,**  **50, 100**  **or 200**  **percent manufacturer**  **price/cost i**  **ncrease?**

3 C onversion Costs

**3.1 What**  **level of**  **capital expenditure**  **and product**  **conversion costs**  **would you** 

**an ticipate**  **to make**  **at higher**  **standard levels?**  **Please describe**  **what they**  **are and** 

**pr ovide**  **your best**  **estimate of**  **their respective**  **magnitudes.**

**12­A­1 3.2**  **How w**  **ould the**  **imposition of**  **new e**  **nergy conservation**  **s tandards**  **affect capacity,** 

**ut ilization**  **and manufacturing**  **assets at**  **your domestic**  **production facilities?**  **Would**

**a n**  **ew s**  **tandard result**  **in stranded**  **capital assets?**  **Would any**  **facilities be**  **closed or** 

**do wnsized?**  **Added or**  **upgraded?**

**3.3 How**  **m ight**  **a n**  **ew s**  **tandard impact**  **product innovation?** 

4 P roduct Mix and Profitability

**4.1 How**  **w ould**  **your company’s**  **product mix**  **and marketing**  **strategy change**  **with**

**ch anges**  **in the**  **efficiency standard?** 

**4.2 Would**  **the current**  **percentage of**  **shipments be**  **the same**  **under a**  **n ew**  **s tandard?** 

**4.3 What**  **distribution channels**  **are used**  **from the**  **manufacturer to**  **the retail**  **outlet?**

**Wh at**  **is the**  **share of**  **product going**  **through each**  **distribution channel?** 

**4.4 Generally**  **how w**  **ould new**  **product standards**  **impact your**  **customer mix,** 

**di stribution**  **channels, a**  **nd corresponding**  **profit margins?** 

**4.5 What**  **is the**  **approximate percentage**  **of shipments**  **(** i.e.

**, m**  **arket share)**  **for each** 

**pr oduct,**  **or more**  **specifically, for**  **each product**  **class?**

**4.6 Do**  **you enjoy**  **a c**  **onsistent profitability**  **across all**  **p roduct**  **classes?**

5 M arket Shares and Industry Consolidation

**5.1 In**  **the absence**  **of new**  **s tandards,**  **d o**  **you expect**  **any industry**  **consolidation?**

**5.2 How**  **w ould**  **new s**  **tandards affect**  **your ability**  **to compete?** 

**5.3 Could**  **new s**  **tandards disproportionately**  **advance or**  **harm the**  **competitive positions** 

**of some**  **firms?**

**5.4 Are**  **there concerns**  **over intellectual**  **property?**

**5.5 Could**  **new s**  **tandards result**  **in disproportionate**  **economic or**  **performance penalties** 

**fo r**  **particular consumer/user**  **subgroups?**

**5.6 Beyond**  **price and**  **energy efficiency,**  **could new**  **s tandards**  **result in**  **products that** 

**wi ll**  **be more**  **or less**  **desirable to**  **consumers due**  **to changes**  **in product**  **functionality,**

**ut ility,**  **or other**  **features?**

6 C umulative Regulatory Burden

**6.1 Are**  **there recent**  **or impending**  **regulations on**  **your specific**  **product or**  **other**

**pr oducts**  **that impose**  **a c**  **umulative burden**  **on the**  **industry?**

**6.2 If**  **so, what**  **is the**  **total expected**  **impact of**  **those other**  **regulations?**

**12­A­2 ________________________________________________________________________**  12 ­A.3 WATER H EATER P RELIMINARY M ANUFACTURER I NTERVIEW

GU IDE

**The following**  **questions comprise**  **the preliminary**  **interview guide**  **DOE used** 

**wh ile**  **interviewing water**  **heater manufacturers.** 

He ating Products Rulemaking

– R esidential Water Heaters

Pr eliminary Interview Guide

De sign for Energy Improvement Information Request

**The Department**  **of Energy**  **(DOE) w**  **ould like**  **to validate**  **its assumptions**  **for the** 

**in cremental**  **costs of**  **reducing product**  **energy consumption**  **by understanding**  **the**

**te chnologies**  **involved in**  **efficiency improvement**  **of residential**  **water heaters.** 

**1. Which**  **design features**  **impacting energy**  **use are**  **generally incorporated**  **into**

**“b aseline”**  **water heater?** 

**2. What**  **design changes**  **do manufacturers**  **of residential**  **w ater**  **heaters make**  **to**

**pr oduce**  **products that**  **are more**  **efficient? How**  **d o**  **these design**  **changes differ**  **by**

**pr oduct**  **class (**  i.e.

**, s**  **torage versus**  **instantaneous and**  **fuel type)?**  **For storage**  **water**

**he aters,**  **are these**  **technologies applicable**  **to all**  **storage volumes?**  **How d**  **o these** 

**de sign**  **changes correspond**  **to the**  **technologies DOE**  **has identified**  **for each** 

**pr oduct**  **class?**

**3. How**  **d o**  **the costs**  **of the**  **individual technologies**  **selected correspond**  **to the**  **cost**

**DO E**  **has estimated**  **in its**  **analysis?**

**4. Are**  **the industry**  **manufacturing costs**  **we have**  **calculated representative**  **of your** 

**fi rm’s**  **costs for**  **water heaters?** 

**5. How**  **d o**  **overall dimensions**  **affect shipping**  **costs? If**  **diameter is**  **increased with** 

**in creased**  **insulation thickness,**  **h ow**  **a re**  **shipping costs**  **affected?**

**6. What**  **percentage of**  **water heaters**  **are shipped**  **with standing**  **pilot ignition?** 

**7. Would**  **you help**  **DOE understand**  **and estimate**  **the conversion**  **capital investments** 

**th at**  **would be**  **necessary at**  **higher efficiency**  **levels? What**  **is the**  **nature of**  **the**

**ca pital**  **investments?**

**8. Are**  **installation costs**  **a f**  **unction of**  **efficiency? Maintenance**  **costs? Repair**  **costs?**

**If yes,**  **w ould**  **you please**  **characterize this**  **relationship by**  **providing incremental** 

**in stallation,**  **maintenance, and/or**  **repair cost**  **data?**

**12­A­3 9.**  **What is**  **the relationship**  **between list**  **price and**  **manufacturer selling**  **price?**

**12­A­4 ________________________________________________________________________**  12 ­A.4 DIRECT HEATING EQUIPMENT PRELIMINARY M ANUFACTURER

IN TERVIEW GUIDE

**The following**  **questions comprise**  **the interview**  **guide DOE**  **used while** 

**in terviewing**  **direct heating**  **equipment manufacturers.** 

He ating Products Rulemaking

– R esidential Direct Heating Equipment

Pr eliminary Interview Guide

De sign for Energy Improvement Information Request

**The Department**  **of Energy**  **(DOE) w**  **ould like**  **to validate**  **its assumptions**  **for the** 

**in cremental**  **costs of**  **reducing product**  **energy consumption**  **by understanding**  **the**

**te chnologies**  **involved in**  **efficiency improvement**  **of residential**  **direct heating**  **equipment.**

**1. Which**  **design features**  **impacting energy**  **use are**  **generally incorporated**  **into**

**“b aseline”**  **direct heating**  **equipment?**

**2. What**  **design changes**  **do manufacturers**  **of residential**  **d irect**  **heating equipment** 

**ma ke**  **to produce**  **products that**  **are more**  **efficient? How**  **d o**  **these design**  **changes**

**di ffer**  **by product**  **class? Are**  **these technologies**  **applicable to**  **all capacity**  **ranges?**

**Ho w**  **d o**  **these design**  **changes correspond**  **to the**  **technologies DOE**  **has identified?** 

**3. For**  **hearth products,**  **h ow**  **d o**  **the technologies**  **differ from**  **those identified**  **for room** 

**he aters?**  **What percentage**  **of room**  **heater shipments**  **are hearth**  **products?**

**4. How**  **d o**  **the costs**  **of the**  **individual technologies**  **selected correspond**  **to the**  **cost**

**DO E**  **has estimated**  **in its**  **analysis?**

**5. Are**  **the industry**  **manufacturing costs**  **we have**  **calculated representative**  **of your** 

**fi rm’s**  **costs for**  **direct heating**  **equipment for**  **each product**  **class?**

**6. Would**  **you help**  **DOE understand**  **and estimate**  **the conversion**  **capital investments** 

**th at**  **would be**  **necessary at**  **higher efficiency**  **levels? What**  **is the**  **nature of**  **the**

**ca pital**  **investments?**

**7. Are**  **installation costs**  **a f**  **unction of**  **efficiency? Maintenance**  **costs? Repair**  **costs?**

**If yes,**  **w ould**  **you please**  **characterize this**  **relationship by**  **providing incremental** 

**in stallation,**  **maintenance, and/or**  **repair cost**  **data?**

**8. What**  **is the**  **relationship between**  **list price**  **and manufacturer**  **selling price?** 

**12­A­5 ________________________________________________________________________**  12 ­A.5 POOL HEATER P RELIMINARY MANUFACTURER I NTERVIEW

GU IDE

**The following**  **questions comprise**  **the interview**  **guide DOE**  **used while** 

**in terviewing**  **water heater**  **manufacturers.**

He ating Products Rulemaking

– R esidential Pool Heaters

Pr eliminary Interview Guide

De sign for Energy Improvement Information Request

**The Department**  **of Energy**  **(DOE) w**  **ould like**  **to validate**  **its assumptions**  **for the** 

**in cremental**  **costs of**  **reducing product**  **energy consumption**  **by understanding**  **the**

**te chnologies**  **involved in**  **efficiency improvement**  **of residential**  **pool heaters.** 

**1. Which**  **design features**  **impacting energy**  **use are**  **generally incorporated**  **into**

**“b aseline”**  **pool heater?** 

**2. What**  **design changes**  **do manufacturers**  **of residential**  **p ool**  **heaters make**  **to**

**pr oduce**  **products that**  **are more**  **efficient? Are**  **these technologies**  **applicable to**  **all**

**inp ut**  **capacities? How**  **d o**  **these design**  **changes correspond**  **to the**  **technologies**

**DO E**  **has identified?** 

**3. How**  **d o**  **the costs**  **of the**  **individual technologies**  **selected correspond**  **to the**  **cost**

**DO E**  **has estimated**  **in its**  **analysis?**

**4. Are**  **the industry**  **manufacturing costs**  **we have**  **calculated representative**  **of your** 

**fi rm’s**  **costs for**  **pool heaters?** 

**5. What**  **percentage of**  **“baseline” pool**  **heaters are**  **shipped with**  **standing pilot** 

**ig nition**  **systems?**

**6. What**  **differentiates a**  **r esidential**  **pool heater**  **from a**  **c ommercial**  **pool heater?** 

**7. Would**  **you help**  **DOE understand**  **and estimate**  **the conversion**  **capital investments** 

**th at**  **would be**  **necessary at**  **higher efficiency**  **levels? What**  **is the**  **nature of**  **the**

**ca pital**  **investments?**

**8. Are**  **installation costs**  **a f**  **unction of**  **efficiency? Maintenance**  **costs? Repair**  **costs?**

**If yes,**  **w ould**  **you please**  **characterize this**  **relationship by**  **providing incremental** 

**in stallation,**  **maintenance, and/or**  **repair cost**  **data?**

**9. What**  **is the**  **relationship between**  **list price**  **and manufacturer**  **selling price?** 

**12­A­6**