CHAPTER 7. PRODUCT PRICE DETERMINATION

TABLE O F CONTENTS

7.1 I NTRODUCTION

................................... ........................................................................ 7­1

7.2 M ETHODOLOGY

.................................... ...................................................................... 7­1

7.2.1 En d­User P roduct Price........................................................................................ 7­1

7.2.2 S ales Ta x.............................................................................................................. 7­5

7.3 P RODUCT P RICE DETERMINATION RESULTS

...................................................... 7­5

7.3.1 En d­User P rices for General Service Fluorescent Lamps.................................... 7­5

7.3.2 En d­User P rices for Incandescent Reflector Lamps

............................................ 7­8

7.3.3 S ales Ta x Results

................................................................................................. 7­9

REFERENCES

.......................................................................................................................... 7­10

LIST O F TABLES

Table 7.2.1 State and Local Sales Tax Rates.............................................................................. 7­5

Table 7.3.1 End­User Prices for T12 Four­Foot Medium Bipin GSFL...................................... 7­6

Table 7.3.2 End­User Prices for T8 4­Foot Medium Bipin GSFL

............................................. 7­6

Table 7.3.3 End­User Prices for T5 4­Foot Miniature Bipin Standard Output GSFL................ 7­7

Table 7.3.4 End­User Prices for T5 4­Foot Miniature Bipin High Output GSFL...................... 7­7

Table 7.3.5 End­User Prices for T12 Eight­Foot Single Pin Slimline GSFL............................. 7­7

Table 7.3.6 End­User Prices for T8 Eight­Foot Single Pin Slimline.......................................... 7­7

Table 7.3.7 End­User Prices for T12 Eight­Foot Recessed Double Contact High Output

GSFL.................................................................................................................... 7­8

Ta ble 7.3.8 End­User Prices for T8 Eight­Foot Recessed Double Contact High Output

GSFL.................................................................................................................... 7­8

Ta ble 7.3.9 End­User Prices for PAR38 IRL

............................................................................. 7­9

Table 7.3.10 End­User Prices for PAR30 IRL

........................................................................... 7­9

Table 7.3.11 Regional Average Tax Rates

................................................................................. 7­9

7­iCHAPTER 7. PRODUCT PRICE DETERMINATION

7.1 I NTRODUCTION

Th is c hapter describes the methodology the U.S. Department of Energy (DOE) followed

in developing sales tax and end­user prices for lamps and ballasts considered in the rulemaking

analysis for general service fluorescent lamps (GSFL) and incandescent reflector lamps (IRL).

This chapter also provides initial results for lamp and ballast end­user prices and sales tax.

In e nergy conservation standard rulemakings, DOE often develops cost­efficiency

relationships in the engineering analysis. Then, DOE applies markups to derive end­user prices.

For this lamps rulemaking, DOE obtained end­user price schedules for the vast majority of lamp

and ballast designs analyzed. Therefore, instead of estimating costs in the engineering analysis

and marking them up to derive end­user prices, DOE derived efficacy levels in the engineering

analysis and end­user prices in the product price determination. By combining the results of the

engineering analysis and the product price determination, DOE derived typical inputs for use in

the life cycle cost (LCC) analysis and the national impact analysis (NIA). In particular, DOE

developed lamp designs that have end­user prices and are associated with an efficacy level (EL).

7.2 M ETHODOLOGY

Th e e nd­user price is the average price a consumer pays before sales tax. DOE obtained

public end­user price schedules from distributors, State contracts, and other publicly available

information sources. In addition, DOE obtained copies of suggested retail and large­user price

lists (sometimes referred to as “blue books”) from manufacturers, and distributor pricing for

commercial, industrial and institutional buyers. Distributor pricing refers to the price that a

distributor would pay. DOE used these pricing sources to derive end­user prices.

To account f or variability in pricing, DOE estimated three end­user prices per lamp.

DOE applied sales tax to each end­user price. Then, DOE applied installation costs, where

necessary, to derive total installed costs, which are used in the LCC and NIA. The life cycle cost

analysis in Chapter 8 details installation and total costs.

7.2.1 E nd­User Pr oduct Price

Starting f rom a consistent set of prices in the blue books, DOE looked at publicly

available prices in State procurement contracts, at large electrical supply distributors, homeimprovement/hardware stores, and other sources of publicly available end­user prices such as

Internet retailers. In its review of publicly available market prices, DOE observed a range of

end­user prices paid for a lamp, depending on the distribution channel through which it is

purchased and the volume at which it is purchased. DOE observed that State procurement

contracts typically offered a discount of around 70 to 90 percent off the blue book. In the vast

majority of instances, these discounts apply uniformly to all products on a price schedule

irrespective of the volume of a particular lamp. Consumer prices were generally higher at

Internet retailers, electrical supply distributors, and home­improvement/hardware stores.

7­1Furthermore, these channels usually apply different discounts to lamps depending on sales

volume. Since many high efficacy lamps are “niche” products, DOE observed that they were

generally less discounted than commodity lamps.

In l ine with its observation of public pricing, DOE developed three sets of discounts from

the blue books, representing the range of low, medium, and high lamp prices for all three

categories of lamps. For IRL, commercially available products did not span the full range of

efficacies considered. For those lamps for which commercial pricing was unavailable, DOE

extrapolated pricing from available lamps. Subsections 7.2.1.1 and 7.2.1.2 describe the

development of low, medium and high prices specific to each lamp type.

DOE ob served that higher efficacy lamps receive higher markups ( i.e

., lower discounts

off of the blue book list price) than more common, lower efficacy product. However, DOE

recognizes that that once an energy conservation standard is enacted, the higher efficacy lamps

will become the commodity product. Therefore, to reflect future commoditization of higher

efficacy lamps when they become the minimum complying products, DOE applied the same

discount off of the blue book list price to derive low, medium, and high prices for higher efficacy

and lower efficacy lamps. (Baseline incandescent lamps received a slightly larger discount, as

State procurement contracts reflect).

For s mall diameter IRL ( i.e. parabolic aluminized reflector (PAR)30), DOE accounted for

the future commoditization of lamps under an energy conservation standard by using the

incremental pricing of larger diameter IRL ( i.e.

, PAR38). DOE’s research indicated that the

market for high efficacy larger diameter IRL is well developed compared to the high efficacy

small diameter IRL market. In addition, both small and larger diameters IRL use the same

fundamental technologies. Therefore, by using the incremental pricing of large diameter IRL to

develop pricing for small diameter IRL, DOE is able to account for the commoditization of high

efficacy residential IRL under an energy conservation standard.

Once D OE calculated end­user prices, DOE added sales tax and, where appropriate,

installation costs, to derive the total, installed end­user cost. DOE used the medium lamp prices

for the reference case in the LCC, and analyzed low and high lamp prices to ascertain the impact

of these other price points (see chapter 8). In the NIA (chapter 10), DOE used only the medium

prices. DOE also developed a single average end­user price for the new and replacement ballasts

used and for the reflector compact fluorescent lamps (CFL) and a 65W BR30 lamp analyzed in

the NIA; DOE added sales tax and installation costs to each. Results for pricing impacts of CFL,

the 65W BR30 lamp, and ballasts are available in Appendix 7A.

7.2.1.1 G eneral S ervice Fluorescent Lamps

As s tated earlier, to establish end user prices, DOE started of with retail and large­user

manufacturer price lists, or blue book prices. However, DOE used an alternative method to

calculate the blue book price of the halophosphor 4­foot T5 miniature bipin (MiniBP) lamps

(both standard output (SO) and high output (HO)) because, to DOE’s knowledge, these lamps are

not currently commercially available. To calculate the price of this lamp, DOE considered the

price differential between the halophosphor 34 W 4­foot medium bipin (MBP) T12 lamp and the

highest efficacy, 800 series 34W 4­foot MBP lamp. To calculate the blue­book price of a

7­2halophosphor T5 lamp, DOE applied this same price differential, in the form of a scaling factor,

to the blue­book prices of the existing 800 series T5 lamps.

To develop l ow­range prices for GSFL, DOE calculated a discount off the blue book

consistent with prices found in State procurement contracts. DOE mirrored the procurement

discount schedule by using a constant discount across lamp efficacies. As noted above, DOE

believes that this discount schedule reflects currently available pricing and takes into account

commoditization of standards­compliant lamps. Consistent with State procurement contracts,

DOE assumed that these low­range prices include a distributor markup but no contractor markup.

As such, this is a lower bound of pricing that assumes the most favorable conditions.

For m edium­range prices, DOE discounted the blue book price consistent with the

distributor pricing DOE received. This represents a typical discount for commercial institutions

on high volume (commodity) lamps. Again, DOE used a single discount across efficacies. DOE

added a contractor markup of 13 percent so that the resulting price would encompass both a

contractor and distributor markup. DOE obtained this contractor markup estimate from the

1 Ballast Rule published on September 19, 2000. 65 FR 56740.

For t he high­range prices, DOE calculated discounts on commodity lamps from blue

book prices for small quantity purchasers by observing Internet pricing and obtaining distributor

quotes. These prices also encompass both a contractor and a distributor markup. DOE obtained

data on actual prices for all GSFL it considered in the analyses.

7.2.1.2 I ncandescent R eflector Lamps

For I RL, DOE modeled the residential and commercial markets as being comprised of

PAR30 IRL and PAR38 IRL. DOE calculated the low­range price for large diameter IRL as it

did for GSFL. DOE compared State procurement contracts to blue books to develop an average

discount. For the medium­range price, DOE discounted the blue book price to represent

shipment weighted­average prices consumers paid for commonly available lamps. For the highrange prices, DOE discounted the blue book price so that prices are in line with observed Internet

pricing.

For P AR30 IRL, DOE used a slight variation to the methodology followed for GSFL and

PAR38 IRL. In particular, to develop the PAR30 baseline lamp price, DOE used the price

differential between an incandescent (non­halogen) bulged reflector (BR)40 lamp and halogen

PAR38 lamp. DOE added this price differential to an incandescent (non­halogen) BR30 lamp

price to obtain the baseline halogen PAR30 lamp price. By developing prices for the baseline

lamps from the incandescent replacement lamps (BR30 and BR40 lamps), DOE is recognizing

that the high­volume product currently being shipped may be a lower­efficacy (non­halogen)

incandescent lamp. Therefore, basing prices off of this lamp will most accurately represent the

commoditization of the halogen PAR30 by 2012 (the effective date of the amended standard).

Similarly for higher­efficacy lamp designs, DOE developed a list price to discount from based on

the incremental blue book prices of PAR38 IRL. As such, DOE added the incremental end­user

blue book price of PAR38 lamps to the baseline PAR30 lamp price to derive higher­efficacy

7­3PAR30 lamp list prices. DOE chose this methodology for PAR30 IRL because for PAR30

lamps, four of the standards­compliant lamps were not commercially available. In addition,

PAR30 lamps use the same fundamental technologies as PAR38 lamps, which serve a more

developed market.

DOE w as able to use the above methodology for all lamps, except for the EL1 improved

halogen lamp (with xenon), the EL2 6,000 hour long­life halogen infrared reflector (HIR) lamp,

and the EL5 the improved HIR plus lamp. For EL1 and EL5 lamp types DOE did not have

available blue­book prices. For the EL2 long­life HIR lamp, DOE believed that an alternate

price, different than that which is reflected by current blue book prices, would be more

appropriate. Therefore, DOE applied alternative methodologies to establish end­user prices for

these lamps.

As d escribed in the Engineering Analysis, chapter 5 of the TSD, DOE generates three

model IRL, representative of halogen IRL with a higher­efficiency fill gas composition, namely

xenon. Through manufacturer interviews, DOE estimated the quantity of xenon that would be

required to achieve EL1 and the corresponding manufacturing price of that xenon for each IRL.

DOE, then applied a markup (from manufacturing cost to end­user price) to establish the

incremental price of an improved halogen lamp with xenon over a conventional halogen lamp.

Current b lue­book prices show significantly higher prices for the EL2 6,000 hour longlife HIR lamps than the EL3 standard HIR lamps. However, to DOE’s knowledge, the two

lamps use similar technologies, and base on manufacturer interviews, extending or shortening

lamp life (which when compensating with an associated decrease or increase in efficacy) is a

near costless change. For this reason, to reflect the commoditized price of the long­life HIR

lamp (currently, a relatively low volume product) DOE used the same blue­book prices for both

the EL2 long­life HIR lamps and the EL3 standard HIR lamps.

Regarding t he EL5 improved HIR lamp, DOE did not have available a blue­book price

for this lamp. Therefore it was necessary to calculate a blue book price for the PAR38 improved

HIR plus lamp. To do this, DOE identified three online distributors that sold the improved HIR

plus lamp and also sold lamps at all other efficacy levels. As both the EL4 improved HIR lamps

and the EL5 improved HIR plus lamps use similar technology and are both marketed as premium

products, DOE applied the discount off of blue book each distributor used at EL4 to the EL5

internet lamp prices to calculate representative blue book price for EL5 lamps. Since these

discount levels varied among the distributors, DOE calculated a potential blue book price for

each distributor based on their price of the improved HIR plus lamp and their blue book discount

for the EL4 lamp. DOE then averaged these three prices to create a blue book price for a PAR38

improved HIR plus lamp. The blue book price for a PAR30 improved HIR plus lamp was

calculated using the method described above.

7­47.2.2 Sales T ax

The s ales tax represents State and local sales taxes applied to the end­user product price.

It is a multiplicative factor that increases the end­user product price. DOE obtained information

2 on State and local sales tax from the Sales Tax Clearinghouse. Table 7.2.1 shows the rates.

These data represent weighted averages that include county and city rates. DOE then calculated

population­weighted average tax values for each Census division and four large States.

Developing this distribution allowed DOE to correlate the sales tax distribution with the

electricity price distribution (see Chapter 8), and the operating hour distribution (see Chapter 6)

DOE uses in the LCC spreadsheet. DOE also calculated a national, population­weighted average

sales tax for use as a single­value input to the LCC, should users want single­average results.

3 DOE also used this result in the NIA, where DOE did not use a distribution of inputs.

Table 7 .2.1 State and Local Sales Tax Rates

State Combi ned

S tate and

Local Tax

Rate

% State C ombi ned

S tate and

Local Tax

Rate

% State C ombi ned

S tate and

Local Tax

Rate

%

Al abama

A laska

Arizona

Arkansas

California

Colorado

Connecticut

Delaware

Dist. Of Columbia

Florida

Georgia

Hawaii

Idaho

Illinois

Indiana

Iowa

Kansas 8.15

1 .45

7.15

8.15

8.00

6.35

6.00

0.00

5.75

6.70

6.95

4.40

6.00

7.70

7.00

6.75

6.90 Kentucky

L ouisiana

Maine

Maryland

Massachusetts

Michigan

Minnesota

Mississippi

Missouri

Montana

Nebraska

Nevada

New Hampshire

New Jersey

New Mexico

New York

North Carolina 6.00

8 .70

5.00

6.00

5.00

6.00

6.70

7.00

6.65

0.00

5.95

7.50

0.00

6.95

6.35

8.25

6.80 North D akota

Ohio

Oklahoma

Oregon

Pennsylvania

Rhode Island

South Carolina

South Dakota

Tennessee

Texas

Utah

Vermont

Virginia

Washington

West Virginia

Wisconsin

Wyoming 5.70

6 .75

8.05

0.00

6.25

7.00

6.90

5.45

9.40

8.00

6.60

6.05

5.00

8.55

6.00

5.40

5.25

7.3 PRODUCT P RICE DETERMINATION RESULTS

Sections 7 .3.1 and 7.3.2 present the low­, medium­, and high­range end­user prices DOE

used to analyze each lamp design it considered in the LCC and NIA. The prices do not include

tax. Section 7.3.3 provides the sales taxes DOE used in its analyses.

7.3.1 E nd­User Pr ices for General Service Fluorescent Lamps

The f ollowing tables present the end­user price results for GSFL.

7­5Table 7.3.1 End­User Prices for T12 Four­Foot Medium Bipin GSFL

Lamp Lamp Lamp Mean Lamp Low Medium High

EL Efficacy Power Lifetime CRI* Light Output Price Price Price

T12 40W Residential Baseline

T12 34W Baseline

1

2 T12 40W Commercial

3 91.2 34 24,000 85 2,790 3.50 5.83 8.16 lm/W** W hrs lm $ $ $

Baseline 78.0 41 20,000 70 2,880 1.41 2.35 3.28

76.8 4 1 1 5,000 70 2,860 1.12 1.86 2.61

77.9 3 4 2 0,000 62 2,300 0.89 1.49 2.09

1 80.5 4 1 20,000 80 3,000 2.64 4.41 6.17

1 82.4 34 20,000 70 2,460 1.58 2.64 3.70

82.9 41 2 4,000 80 3,060 3.51 5.86 8.20

85.3 3 4 2 0,000 80 2,610 2.90 4.83 6.76

2 87.8 4 1 24,000 85 3,250 3.57 5.95 8.33

* CRI

= color rendering index

** lm/W

= lumens per Watt

Table 7.3.2 End­User Prices for T8 4­Foot Medium Bipin GSFL

Lamp Lamp L amp M ean L amp Low M edium H igh

E L E ffi cacy P ower L ifetime C RI L i ght O utput Price P rice P rice

lm

/

W W hrs lm $ $ $

T8 3 2W Baseline/EL

2 86.2 3 2.5 2 0,000 7 5 2 ,520 1 .03 1 .72 2 .41

3 90.8 3 2.5 2 0,000 8 2 2 ,710 1 .61 2 .69 3 .77

4 92.3 3 2.5 2 4,000 8 5 2 ,850 1 .69 2 .82 3 .95

4 93.0 2 6.6 3 0,000 8 5 2 ,350 2 .56 4 .26 5 .96

4 93.8 3 0.4 2 0,000 8 2 2 ,680 1 .85 3 .09 4 .32

5 95.4 3 2.5 2 4,000 8 2 2 ,915 1 .99 3 .31 4 .63

5 96.0 2 8.4 1 8,000 8 2 2 ,560 1 .74 2 .9 4 .06

7 ­6Table 7.3.3 End­User Prices for T5 4­Foot Miniature Bipin Standard Output GSFL

Lamp Lamp L amp M ean L amp Low M edium H igh

E L E fficacy P ower L ifetime C RI L ight O utput Price P rice P rice

lm

/

W W hrs lm $ $ $

Basel ine 8 6.0 2 7.8 2 0,000 6 2 1 ,674 0 .86 1 .44 2 .02

1 104.3 2 7.8 2 0,000 8 5 2 ,660 1 .92 3 .20 4 .48

2 109.7 2 7.8 2 0,000 8 5 2 ,898 2 .54 4 .23 5 .92

2 111.5 2 6.0 2 5,000 8 5 2 ,660 2 .40 4 .00 5 .60

Table 7.3.4 End­User Prices for T5 4­Foot Miniature Bipin High Output GSFL

Lamp Lamp L amp M ean L amp Low M edium H igh

E L E fficacy P ower L ifetime C RI L ight O utput Price P rice P rice

lm

/

W W hrs lm $ $ $

Basel ine 7 6.6 5 3.8 2 0,000 6 2 2 ,885 1 .16 1 .93 2 .70

1 92.9 5 3.8 2 0,000 8 5 4 ,600 2 .57 4 .28 5 .99

1 98.0 5 1.0 2 0,000 8 5 4 ,600 3 .80 6 .33 8 .86

Table 7.3.5 End­User Prices for T12 Eight­Foot Single Pin Slimline GSFL

Lamp Lamp L amp M ean L amp Low M edium H igh

E L E fficacy P ower L ifetime C RI L ight O utput Price P rice P rice

lm

/

W W hrs lm $ $ $

T12 7 5W Baseline 85.6 7 5.0 1 2,000 7 0 5 ,906 3 .28 5 .47 7 .66

1 87.3 7 5.0 1 2,000 8 0 6 ,157 5 .07 8 .45 1 1.83

T 12 6 0W Baseline/EL 1 87.6 6 0.5 1 2,000 6 2 4 ,664 1 .93 3 .21 4 .49

2 92.0 7 5.0 1 5,000 8 0 6 ,370 5 .60 9 .34 1 3.07

2 92.6 6 0.5 1 2,000 7 0 5 ,152 3 .24 5 .40 7 .56

3 97.5 6 0.5 1 5,000 7 3 5 ,480 4 .20 7 .00 9 .80

Table 7.3.6 End­User Prices for T8 Eight­Foot Single Pin Slimline

Lamp Lamp L amp M ean L amp Low M edium H igh

E L E fficacy P ower L ifetime C RI L ight O utput Price P rice P rice

lm

/

W W hrs lm $ $ $

T8 5 9W Baseline / EL 3 94.8 6 0.1 1 5,000 7 5 5 ,130 2 .32 3 .87 5 .42

4 98.2 6 0.1 1 5,000 8 2 5 ,428 3 .55 5 .92 8 .28

5 101.5 6 0.1 1 8,000 8 5 5 ,795 4 .03 6 .72 9 .41

5 101.8 5 7.0 2 4,000 8 1 5 ,450 3 .66 6 .10 8 .54

5 103.6 5 5.0 1 8,000 8 2 5 ,415 3 .43 5 .72 8 .00

7 ­7Table 7.3.7 End­User Prices for T12 Eight­Foot Recessed Double Contact High Output

GSFL

Lamp Lamp L amp M ean L amp Low M edium H igh

E L E fficacy P ower L ifetime C RI L ight O utput Price P rice P rice

lm

/

W W hrs lm $ $ $

T12 1 10W Baseline 80.1 1 13 1 2,000 7 0 8 ,145 3 .86 6 .44 9 .02

T 12 9 5W Baseline 82.5 9 7 1 2,000 6 2 6 ,950 2 .23 3 .72 5 .20

1 83.2 1 13 1 2,000 8 0 8 ,648 7 .10 1 1.84 1 6.57

2 86.1 9 7 1 2,000 7 0 7 ,515 3 .95 6 .59 9 .22

3 87.6 9 7 1 2,000 8 0 7 ,650 7 .41 1 2.35 1 7.29

3 88.9 9 7 1 2,000 8 5 7 ,750 7 .59 1 2.64 1 7.70

Table 7.3.8 End­User Prices for T8 Eight­Foot Recessed Double Contact High Output

GSFL

Lamp Lamp L amp M ean L amp Low M edium H igh

E L E fficacy P ower L ifetime C RI L ight O utput Price P rice P rice

lm

/

W W hrs lm $ $ $

4 91.9 8 6 2 4,000 7 8 7 ,100 3 .94 6 .57 9 .19

4 93.0 8 6 1 8,000 7 5 7 ,200 4 .03 6 .72 9 .41

5 95.3 8 6 1 8,000 8 6 7 ,800 4 .84 8 .07 1 1.30

7.3.2 End­User Pr ices for Incandescent Reflector Lamps

Within t he range of IRL lamp wattages analyzed, DOE observed that lamp price did not

vary significantly by wattage. As a result, DOE did not vary price by wattage in its analysis.

In e stablishing baseline IRL prices, DOE noted a difference in the blue book prices of the

large diameter IRL and small diameter IRL, though they both use the same technologies. DOE

incorporated this observation in its pricing by discounting the two observed blue book prices

separately, and maintaining a price differential in the baselines of those sectors. As noted above,

for PAR30 lamps, three lamp designs (two improved halogen lamps and one HIR lamp) were not

commercially available. Therefore DOE could not directly discount blue book prices for these

lamps. However, PAR30 lamps use the same fundamental technologies as PAR38 lamps—

higher efficacy lamps characteristic of the commercial sector that serve a more developed

market. DOE was able to derive prices for higher efficacy PAR30 lamps by adding the same

incremental end­user price for the PAR38 lamps.

Table 7 .3.9 presents the end­user price results for the PAR38 lamps, while Table 7.3.10

presents the end­user price results for the PAR30 lamps.

7­8Table 7.3.9 End­User Prices for PAR38 IRL

Lamp Lamp

3.79

4.18

4.07

4.18

5.00 Low Medium High

Improved Halogen (Xenon) PAR38 EL 1 2,500

Long­Life HIR

Improved Halogen (Silver) Lamp Type EL Shape L ifetime Price P rice Price

hrs $ $ $

Hal ogen P AR38 Baseline 2,500 3.20 4 .80 6 .40

5.68 7 .57

P AR38 E L 2 6,000 6.26 8 .35

P AR38 E L 2 3,000 6.10 8 .13

H IR P AR38 EL 3 3,000 6.26 8 .35

Improved HIR PAR38 EL 4 4,000 7.50 10.00

I mproved H IR Plus PAR38 EL 5 4,200 5.35 8 .03 1 0.70

Table 7.3.10 End­User Prices for PAR30 IRL

Lamp Lamp

3.41

3.80

3.69

3.80

4.62 Low Medium High

HIR PAR30 EL 3 3,000 Improved Halogen (Xenon) PAR30 EL 1 3,000

Long­Life HIR Lamp Type EL Shape L ifetime Price P rice Price

hrs $ $ $

Hal ogen P AR30 Baseline 3,000 2.82 4 .23 5 .64

5.11 6 .82

P AR30 E L 2 6,000 5.70 7 .60

I mproved H alogen (Silver) PAR30 EL 2 3,000 5.53 7 .38

5 .70 7 .60

I mproved H IR PAR30 EL 4 4,000 6.93 9 .24

I mproved H IR Plus PAR30 EL 5 4,200 5.16 7 .46 9 .95

7.3.3 Sales T ax Results

Table 7 .3.11 shows the distribution of sales tax rates DOE developed for the LCC and

payback period (PBP) analyses. The distribution ranges from a minimum of zero percent to a

maximum of 8.34 percent with a weighted average value of 6.94 percent. DOE used the average

value of 6.94 percent in the NIA.

Table 7 .3.11 Regional Average Tax Rates

Division or Large State Name Division W eighted Sales Tax ( % )

New E ngland 4.98

M i d A tlantic 6.54

E ast N orth Central 6.72

W est N orth Central 6.57

S outh A tlantic 6.18

E ast S outh Central 7.88

W est S outh Central 8.34

M ount ain 6 .42

P aci fic 5 .08

N ew Y ork State 8.25

C al ifornia 8 .00

T exas 8 .00

F l orida 6 .70

U .S. A verage 6.94

7 ­9REFERENCES

1 U.S. Department of Energy­Office of Energy Efficiency and Renewable Energy.

Energy Conservation Program for Consumer Products: Technical Support Document:

Energy Efficiency Standards for Consumer Products: Fluorescent Lamp Ballast

Proposed Rule. January, 2000. Washington, D.C.

http://www.eere.energy.gov/buildings/appliance_standards/residential/pdfs/chap3.pdf

2 Sales Tax Clearinghouse. Aggregate State Tax Rates

. 2008. (Last accessed May 30,

2008). http://thestc.com/STrates.stm Th e M ay 30, 2008 material from this website is

available in Docket # EE–2006–STD–0131. For more information, contact Brenda

Edwards Jones at (202) 586 2945.

3 U.S. Census Bureau: Population change: April 1, 2000 to July 1, 2007. July 1, 2007.

(Last accessed May 30, 2008). Washington, D.C.

http://www.census.gov/popest/states/files/NST­EST2007­popchg2000­2007.csv

7­10