Charles Llenza BUILDING TECHNOLOGIES PROGRAM June 20, 2013 

# Energy Conservation Standards for Refrigerated Beverage Vending Machines: Framework Public Meeting2 

# Welcome and Introduction

• Introductions (around the room)

• Role of the Facilitator

• Meeting Ground Rules:

– One person speaks at a time & raises hand to be recognized.

– Always state your name for the record since there will be a complete transcript of this meeting

.

– Be concise, focus on issues & not personalities, and share ‘air

time’.

– Hold any sidebar conversations outside of the meeting room.

– All participants (including Webinar participants) set your phones to mute.

• Housekeeping Items

• Agenda Review

• Opening Remarks3 

# Morning Agenda

9:00 – 9:05 am Welcome 9:05 – 9:30 am Opening Remarks, Introductions, and Agenda Review
9:30 – 10:00 am Rulemaking Process Overview
10:00 – 10:30 am Authority and Definitions
10:30 – 10:45 am Break
10:45 – 11:15 am Test Procedure and Test Metrics
11:15 – 11:45 am Market & Technology Assessment, Screening Analysis
11:45 am – 12:30 pm Engineering Analysis
12:30 – 1:30 pm Break for Lunch4 

# Afternoon Agenda

1:30 – 2:00 pm Markups and Energy Use Analyses 2:00 – 2:30 pm Life

- Cycle Cost and Payback Period Analysis

2:30 – 2:45 pm Break

2:45 – 3:00 pm Shipments Analysis and National Impact Analysis 3:00 – 3:15 pm Preliminary Manufacturer Impact Analysis 3:15 – 3:30 pm NOPR Analyses 3:30 – 4:00 pm Other Issues and Comments
4:00pm Closing Remarks5 

# Opening Remarks

Interested parties who contacted DOE to request an opportunity to issue an opening statement should speak
now.6 5 3 2

Test Procedure & Test Metrics Rulemaking Process Overview
Authority & Definitions 1 Introduction

6 Rulemaking Analyses 

# Public Meeting Agenda

Closing Remarks 47 

## Purpose of the Framework Document Public Meeting

• Present the analytical approaches to be used to evaluate energy conservation standards for refrigerated beverage vending machines (BVMs)

• Inform interested parties of and facilitate the rulemaking process

• Provide a forum for public discussion of rulemaking issues

• Encourage interested parties to submit data, information, and written comments 

# Introduction8 

# Introduction

Request for Comment

Item #
- #: DOE solicits comment on a range of specific issues throughout the Framework document.

• Throughout this presentation, these issues will be highlighted for discussion in comment boxes such as this.

• Item numbers cor respond to those in the Framework document.

• DOE welcomes comments concerning these specific issues and any other issues related to this rulemaking.9 

## Instructions for Submitting Comments

• In all correspondence, please refer to this Refrigerated Beverage Vending Machine Rulemaking by:

– Docket # EERE

- 2013

- BT

- STD

- 0022, and/or RIN 1904

- AD00

• Electronic: BVM2013STD0022@EE.Doe.Gov or www.regulations.gov

• Postal Mail: Ms . Brenda Edwards U.S . Department of Energy Building Technologies Program, Mailstop EE

- 2J 1000 Independence Avenue, SW

. Washington , D.C. 20585

- 0121

• Courier: Ms. Brenda Edwards, 950 L’Enfant Plaza, SW., Suite 600

• Phone: (202) 586

- 2945 

# Introduction

Comment period closes July 19, 201310 2 Rulemaking Process Overview 1 Introduction 

# Public Meeting Agenda

5 3

Test Procedure & Test Metrics Authority & Definitions

6 Rulemaking Analyses
Closing Remarks 411 

### Standards Development

• The Energy Policy and Conservation Act of 1975 (EPCA ), as amended, directs DOE to prescribe energy conservation standards for beverage vending machines (42 U.S.C. 6295(v))

• EPCA directs DOE to develop new or amended standards designed to achieve the maximum improvement in energy efficiency that is technologically feasible and economically justified

• DOE’s rulemaking process provides the schedule and analyses

• Under 42 U.S.C 6295(m)(1), within 6 years after issuance of any final rule establishing or amending a standard, DOE is required to publish:

(A) A notice of the determination of the Secretary of Energy (Secretary) that energy conservation standards for the product do not need to be amended, based on the criteria established under subsection (n)(2); or (B) A notice of proposed rulemaking including new proposed energy conservation standards based on the criteria established under subsection (o) and the procedures established under subsection (p ) 

# Rulemaking Process Overview12 

### • EPCA directs DOE to consider seven factors for analysis when setting technologically feasible and economically justifiable standards : EPCA Requirement Corresponding DOE Analyses 1. Economic impact on consumers and manufacturers • Life

- Cycle Cost (LCC) Analysis

• Manufacturer Impact Analysis (MIA) 2. Lifetime operating cost savings compared to increased product cost • LCC Analysis
3. Total projected energy savings • National Impact Analysis (NIA)
4. Impact on utility or performance • Engineering Analysis

• Screening Analysis 5. Impact of any lessening of competition • MIA 6. Need for national energy conservation • NIA

7. Other factors the Secretary considers relevant • Emissions Analysis

• Utility Impact Analysis

• Employment Impact Analysis 

# Rulemaking Process Overview

Source: (42 U.S.C. § 6295(o)(2)(B)(i) and 42 U.S.C. § 6316(a))13 

### • TP and ECS rulemakings are separate processes but have integrated timelines

• The TP rulemaking timeline duration is about 1.5 years from cradle to grave

• The ECS rulemaking timeline duration is about 3 years from cradle to grave

• For additional information on the rulemaking process go to: http :// www1.eere.energy.gov/buildings/appliance_standards/standards_dev_and_revision.html



## Energy Conservation Standards (ECS)
Test Procedure (TP) Final Rule NOPR 

## Test Procedure and Standard Rulemakings Timelines

Framework

Document Preliminary Analysis NOPR Final Rule 

# Rulemaking Process Overview14 

## Framework Document

• Provides an overview of the rulemaking process and encourages early participation from interested parties

• Invites comments on proposed approach and issues

• Accompanying Federal Register n otice of public m eeting (NOPM)
– 78 FR 33262, June 4, 2013

– Gives notice of the public meeting and availability of the Framework document being discussed today

– Encourages interested parties to submit comments 

# Rulemaking Process Overview

Framework Document Preliminary Analysis NOPR Final Rule Today15 

## Preliminary Analysis Document 

# Rulemaking Process Overview

Framework Document Preliminary Analysis NOPR Final Rule

– Design options to increase efficiency (engineering analysis)

– Manufacturer

- to

- user markups

– Energy use

– Consumer LCC and payback period (PBP)

– Shipments – National impacts, including national energy savings (NES) and consumer net present value (NPV)

– Preliminary analysis of manufacturer impacts

– Discussion of comments received in response to the Framework document • Accompanying Federal Register NOPM
– Planned Q3 CY 2014

– Gives notice of the public meeting and availability of the technical support document (TSD)

– Encourages interested parties to submit comments

• Analysis16 

## Notice of Proposed Rulemaking (NOPR) Document

• Discussion of comments received in response to preliminary a nalysis TSD

• Analysis of the impacts of potential standards on consumers, manufacturers, and the Nation and weighting of these impacts

• Any proposed standard levels for public comment

• Accompanying Federal Register publication
– Planned Q3 CY 2015

– Gives notice of the public meeting and availability of the revised TSD

– Encourages interested parties to submit comments 

# Rulemaking Process Overview

Framework Document Preliminary Analysis NOPR Final Rule17 

## Final Rule Publication

• Discussion of comments received in response to the NOPR

– DOE will consider all written and verbal input in preparing the final rule

• Revise analysis of the impacts of standards and weighing of these impacts of the final rule

• Determine any standard levels DOE will adopt

• Establish the compliance date for any adopted standards

• Accompanying Federal Register final r ule
– Planned Q3 CY 2016 

# Rulemaking Process Overview

Framework Document Preliminary Analysis NOPR Final Rule18

2013

Framework Document Public Meeting June 2013 Preliminary Analysis Public Meeting Planned
– Q3 2014 NOPR Public Meeting Planned
– Q3 2015 2015 2016 2019 Proposed Energy Conservation Standard Final Rule Compliance Date Q3 2019

2014

TP NOPR Public Meeting Planned
– Q4 2013 

# Rulemaking Schedule19 5 3 2 Rulemaking Process Overview
Authority & Definitions 1 Introduction

6 Rulemaking Analyses 

# Public Meeting Agenda

Closing Remarks 4 Test Procedure & Test Metrics20 

## Authority and Background
– Overview

• Title III of EPCA sets forth a variety of provisions designed to improve the energy efficiency of various products and equipment

• Part B of Title III provides for the “Energy Conservation Program for Consumer Products Other Than Automobiles” (42 U.S.C. 6291

– 6309)

• As part of this program, EPCA directed DOE to prescribe energy conservation standards for beverage vending machines (42 U.S.C. 6295(v)) 

# Authority & Definitions21 

## Standards Authority and Background

• DOE conducted a rulemaking from 2006

- 2009 that culminated in standards set in the 2009 BVM final rule, August 2009

• Within 6 years after issuance of any final rule establishing or amending a standard, DOE is required to publish:

– A notice of the determination of the Secretary of Energy that energy conservation standards for the product do not need to be amended, based on the criteria established under subsection (n)(2); or

– A notice of proposed rulemaking including new proposed energy conservation standards based on the criteria established under subsection (o) and the procedures established under subsection ( p) 42 U.S.C. 6295(m)(1)



### • DOE is undertaking this rulemaking to meet this EPCA requirement 

# Authority & Definitions22 

### • Manufacturers must use a DOE

- prescribed test procedure to establish compliance with DOE standards for refrigerated beverage vending machines

• The current BVM test procedure published December 8, 2006

– At least once every 7 years, the Secretary shall review test procedures for all covered products and

— ( i ) amend test procedures with respect to any covered product, if the Secretary determines that amended test procedures would more accurately or fully comply with the requirements of paragraph (3); or (ii) publish notice in the Federal Register of any determination not to amend a test procedure 42 U.S.C. 6314(a)(1)(A)



### • DOE is undertaking a rulemaking to meet this EPCA requirement

• DOE has determined these review cycles to have been initiated by the passage of EISA on December 19, 2007 

## Test Procedure Authority and Background 

# Authority & Definitions23 

## Definitions

• EPCA definition
–

- The term ‘ refrigerated bottled or canned beverage vending machine ’ means a commercial refrigerator that cools bottled or canned beverages and dispenses the bottled or canned beverages on payment ( 42 U.S.C. 6291(40 ))

• Definitions added to 10 CFR 431.292 in 2009 BVM final rule
–

- Bottled or canned beverage means a beverage in a sealed container

- Class A means a refrigerated bottled or canned beverage vending machine that is fully cooled, and is not a combination vending machine

- Class B means any refrigerated bottled or canned beverage vending machine not considered to be Class A, and is not a combination vending machine

- Combination vending machine means a refrigerated bottled or canned beverage vending machine that also has nonrefrigerated volumes for the purpose of vending other, non

- “sealed beverage” merchandise

- V means the refrigerated volume (ft 3 ) of the refrigerated bottled or canned beverage vending machine, as measured by ANSI/AHAM HRF

- 1

- 2004 

# Authority & Definitions24 

## Coverage

• All equipment that meets the definition of refrigerated bottled or canned beverage vending machine is covered by this rulemaking

• Active standards exist for Class A and Class B vending machines

- Compliance date of August 31, 2012



### • The 2009 BVM final rule included a placeholder reserving standards for combination vending machines 

# Authority & Definitions25 4 3 2

Test Procedure & Test Metrics Rulemaking Process Overview
Authority & Definitions

5 Rulemaking Analyses 

# Public Meeting Agenda

6 Closing Remarks 1 Introduction26 

## Current Test Procedure

• Published December 2006

• A dopted ANSI/ASHRAE 32.1

- 2004 as the DOE test procedure

- DOE adopted a modification to test equipment with dual nameplate voltages at the lower of the two voltages only



### • References 5.2 of AHAM HRF

- 1

- 2004 for measuring refrigerated volume 

# Test Procedure & Test Metrics

Test Metric

• Daily energy consumption (DEC), in kWh/day27 

## Potential Test Procedure Updates, Clarifications, and Modifications 1) Updating the referenced method of test

- ANSI/ASHRAE 32.1

- 2010 was issued to supersede ANSI/ASHRAE 32.1

- 2004 

### 2) Clarifying the next

- to

- vend beverage temperature test condition

- No time averaging of temperature data 

### 3) Testing at a 90 **°** F ambient test condition

- Elimination of the 90 **°** F ambient test condition requirement 

# Test Procedure & Test Metrics28 

## Potential Test Procedure Updates, Clarifications, and Modifications, cont. 4) Lowest application product temperature

- Accommodation of beverage vending machines that do not dispense product at 36 **°** F 

### 5) Product temperature measurements

- Measurement of beverage temperatures other than those next

- to

- vend could assist in determining product class 

# Test Procedure & Test Metrics29 

## Potential Test Procedure Updates, Clarifications, and Modifications, cont. 6) Expanded range of lighting and control settings

- Current DOE test procedure requires operation with normal lighting and control settings, using only those energy management controls that are permanently operational and not capable of being adjusted by a machine operator

- No specification for testing machines with permanently operational controls that can be adjusted 

### 7) Creating a provision to measure the impact of low

- power modes of operation

- Account for energy savings from controls, including those that can be disabled 

# Test Procedure & Test Metrics30 

# Test Procedure & Test Metrics

Request for Comment

Item 1
- 1: DOE requests comment regarding adoption of updated test procedure for the beverage vending machines covered under this rulemaking.
Item 1
- 2: DOE requests comment on the possible elimination of the requirement to test units at 90 ° F.
Item 1
- 3: DOE requests comment regarding a requirement of measurement of product temperatures at other than the next

- to

- vend positions.
Item 1
- 4: DOE requests comment on the current utilization of low

- power modes in certification testing. Do any current models meet the requirements of the current test procedure regarding energy management controls and utilize a low

power mode during the test?31 

# Test Procedure & Test Metrics

Request for Comment

Item 1
- 5: DOE requests comment on the testing of low

- power modes in a revised test procedure. What are the typical functions of low

- power mode in beverage vending machines? Are these low

- power modes triggered by scheduled timers, activity, motion sensors, or other environment or state changes? What lengths of time should DOE consider for the full

- power mode and low

- power mode?
Item 1
- 6: DOE requests comment on the applicability of the current test procedure, and all test procedure modifications under consideration, to combination vending machines.
Item 1
- 7: DOE requests comment on its proposal to consider modifications to the test procedure to account for energy management systems.32 4 3 2

Test Procedure & Test Metrics Rulemaking Process Overview
Authority & Definitions 1 Introduction

5 Rulemaking Analyses 

# Public Meeting Agenda

6 Closing Remarks33 

# Preliminary Analysis

Framework Document Preliminary Analysis NOPR Final Rule Effective Date

Market & Technology Screening Analysis Engineering Analysis

Energy Use Analysis
Shipments Analysis National Impact Analysis Markups Analysis Life

- Cycle Cost and Payback Period Analysis

Preliminary Manufacturer Impact Analysis34 

### • Purpose:

– Characterize the BVM markets and the measures to improve efficiency



### • Method:

– Identify and characterize manufacturers of beverage vending machines

– Estimate shipments and trends in the market

– Identify technologies that could improve efficiency

– Identify regulatory and non

- regulatory initiatives intended to improve the efficiency of the equipment covered under this rulemaking 

# Market and Technology Assessment35 

# Market and Technology Assessment

Request for Comment

Item 3
- 1: DOE seeks information that would contribute to the market assessment (e.g., the manufacturers of this equipment in the United States and the equipment they sell, by equipment class). It is particularly important that DOE be aware of the major and small/niche manufacturers.
Item 3
- 2: DOE seeks information on historical annual equipment shipments (both domestic and imports) by equipment class and the corresponding efficiency distributions of these shipments.
Item 3
- 3: DOE seeks information on the proportion of equipment shipped annually that replaces existing equipment, for each equipment class

.36 

# Market and Technology Assessment
Equipment Characteristics

• Refrigerated beverage vending machine characteristics include:

– Cooling mechanism: fully cooled or not (i.e ., zone cooled)

– Door type: transparent or opaque

– Storage type: stack or shelf storage

– Machine

- use designation: indoor/outdoor or indoor only

– Presence of separate, non

- refrigerated volume

– Type of products dispensed37 

# Market and Technology Assessment

Request for Comment

Item 3
- 4: DOE requests comment on whether all transparent

- front beverage vending machines currently available on the market are fully cooled.
Item 3
- 5: DOE requests comment on whether all opaque

- front beverage vending machines currently available on the market are zone cooled.
Item 3
- 6: DOE requests information on perishable items in beverage vending machines. Do machines that sell perishable items (in addition to or including beverages) ship with different software or controls than machines that sell only non - perishable items? Are they rated differently, such as to food safety specifications? What portion of the BVM market is composed of machines that sell perishable items?38 

# Market and Technology Assessment
Equipment Classes

• DOE divides covered equipment into classes based on performance

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

• DOE establishes separate energy conservation standards for each equipment class

• In the 2009 final r ule , DOE established three equipment classes

• DOE could also further subdivide existing classes, were it warranted due to inherent differences within equipment currently covered by a class39 

# Market and Technology Assessment
Equipment Classes, cont.

• Equipment class distinctions in the 2009 BVM final rule were based on:

– Cooling mechanism: fully cooled or not (i.e., zone cooled)

– Presence of separate, non

- refrigerated volume



### • Fully cooled currently has no statutory definition

• DOE is considering the following definition: Fully

- cooled beverage vending machine : a refrigerated bottled or canned beverage vending machine within which each item in the beverage vending machine is brought to and stored at temperatures that fall within plus or minus 2 ° F of the average beverage temperature, which is the average of the temperatures of all the items in the next

- to

- be

- vended position for each selection.40 

# Market and Technology Assessment

Request for Comment

Item 3
- 7: DOE seeks comment on the equipment classes for beverage vending machines, and on the criteria used in creating the classes. Are the equipment classes appropriate? Are there other factors that should be considered in equipment class distinctions and definitions?
Item 3
- 8: DOE seeks comment regarding the possible use of alternative equipment classes in this rulemaking. Specifically, are there other equipment characteristics that should be considered for equipment class distinctions and definitions?41 

# Market and Technology Assessment

Request for Comment

Item 3
- 9: DOE seeks comment on the considered definition of “fully cooled vending machine.” Does the current language reflect what is used in industry?
Item 3
- 10: DOE requests comment on the creation of a new equipment class for machines that are manufactured and sold to vend perishable items (including or in addition to beverages). How should DOE define equipment sold to vend perishable items? Does this equipment obtain other certifications for vending perishable items? Is it common for beverage vending machines to vend both perishable and non

- perishable items? Is the same beverage vending machine offered to vend both perishable and non

- perishable items (i.e., the equipment is not currently differentiated in the marketplace)?42 Higher efficiency lighting Defrost mechanism Higher efficiency lighting ballasts Defrost

- cycle control Remote lighting ballast location Higher efficiency compressors Higher efficiency expansion valves Variable

- speed compressors Higher efficiency evaporator fan motors Higher efficiency condenser fan motors Increased evaporator surface area or efficiency Machine

- insulation thickness increases or improved insulating materials Evaporator

- fan

- motor controllers Suction

- line heat exchangers Higher efficiency evaporator fan blades Condenser fan motor controllers Low pressure

- differential evaporators Higher efficiency condenser fan blades Anti

- sweat heater controls Lighting controls, timers, and/or sensors Increased condenser surface area or efficiency Low

- power modes incorporating refrigeration controls, timers, and/or sensors Improved Glass Pack 

## Technology Options to Improve Efficiency 

# Market and Technology Assessment43 

# Market and Technology Assessment

Request for Comment

Item 3
- 11: DOE requests comment on whether any technologies or designs should be added to or removed from the above list. For example, do any of the technologies above raise issues with proprietary designs or issues where testing pursuant to the DOE test procedure does not reflect a change in measured energy efficiency?
Item 3
- 12: DOE requests comments, recommendations, and data on max

- tech levels for Class A equipment, Class B equipment, and combination vending machines.
Item 3
- 13: DOE requests comment on whether max

- tech levels can only be achieved using proprietary designs or whether there are alternative design paths available that can achieve the same energy use level.44 

# Market and Technology Assessment

Request for Comment

Item 3
- 14: DOE requests comment on whether any technologies or designs should be treated individually, or be incorporated into a few standard “design packages.” If “design packages” are possible, how should the packages be assembled? DOE would develop potential standard levels based on these packages, but manufacturers could meet any established standards through the use of any design options.
Item 3
- 15: DOE requests comment on low

- power modes. What types of low

power modes are currently used in the BVM market? Are there other types of energy management systems about which DOE should be aware that are applicable to beverage vending machines?
Item 3
- 16: DOE requests comment on whether transparent

- front machines could be designed with zone cooling.45 

# Market and Technology Assessment

Baseline Models

• Represent equipment with the lowest efficiency currently on the market

• DOE will select one baseline model per equipment class

• Where available, DOE typically selects models that just meet current energy conservation standards to represent the baseline46 

# Market and Technology Assessment

Request for Comment

Item 3
- 17: DOE seeks comment on how to select baseline efficiency levels for equipment classes without a previous energy conservation standard (e.g., combination machines).
Item 3
- 18: What machine sizes and capacities (cubic feet, vendible capacity) should be used as analysis points for each equipment class?
Item 3
- 19: DOE seeks information on what particular components and features characterize the baseline model in each equipment class (materials, dimensions, insulation, refrigerant type, compressors, evaporators, condensers, expansion devices, fans, motors, anti

- condensate devices and controls, defrost mechanisms and controls, lighting, etc.).47 

# Preliminary Analysis

Framework Document Preliminary Analysis NOPR Final Rule Effective Date

Market & Technology Screening Analysis Engineering Analysis

Energy Use Analysis
Shipments Analysis National Impact Analysis Markups Analysis Life

- Cycle Cost and Payback Period Analysis

Preliminary Manufacturer Impact Analysis48 

### • Purpose:

– Screen out technology options that DOE will not consider in the engineering analysis for beverage vending machines



### • Method:

– DOE will evaluate each technology option based on the following criteria:

• Technological feasibility

• Practicability to manufacture, install, and service

– Note: Practicability is on a commercial scale at the compliance date of any final standards

• Impacts on product utility or available to consumers

• Impact on health and safety 

# Screening Analysis49 

# Screening Analysis

Request for Comment

Item 4
- 1: DOE welcomes comments on how the above four screening criteria might apply to any additional technology option(s) that an interested party recommends to DOE.
Item 4
- 2: DOE welcomes comments on the applicability of the four screening criteria to the technologies listed in the Market and Technology Assessment section.50 

# Preliminary Analysis

Framework Document Preliminary Analysis NOPR Final Rule Effective Date

Market & Technology Screening Analysis Engineering Analysis

Energy Use Analysis
Shipments Analysis National Impact Analysis Markups Analysis
Life

- Cycle Cost and Payback Period Analysis

Preliminary Manufacturer Impact Analysis51 

### • Develop the cost

- efficiency curve, which characterizes the relationship between manufacturer selling price (MSP) and energy efficiency

• The cost

- efficiency curves are key inputs for the downstream rulemaking analyses
Rulemaking Analyses



### • Life

- Cycle Cost and Payback Period Analysis

• National Impact Analysis

• Manufacturer Impact Analysis

• Employment Impact Analysis Manufacturer Selling Price
– Efficiency RelationshipManufacturerSellingPrice (MSP)

Energy Consumption Level 

## Engineering Analysis
– Purpose 

# Engineering Analysis52 

## Engineering Analysis Methodology

• Define baseline specifications for each equipment class 

## Define Baseline

• Model the manufacturer production cost (MPC) and energy consumption of the baseline units 

## Model Baseline

• Implement design options one

- by

- one in order of shortest payback to longest payback

• Add the incremental cost of each design option to the baseline and recalculate DEC with design options in place 

## Implement Design Options

• Apply manufacturer markup to the MPC to calculate manufacturer selling price using manufacturer markup 

## Calculate Manufacturer Selling Price 

# Engineering Analysis53 

# Engineering Analysis
Energy Consumption Model

Total Heat Load [Btu/h]

Component Load [Btu/h] Non-Electric Load [Btu/h]

Fan Motor Heat Load

[Btu/h] Lighting Heat Load [Btu/h] Radiation Load [Btu/h] Conduction Load [Btu/h] Infiltration Load [Btu/h] Daily Energy Consumption [kWh/day]

Compressor Energy Consumption

[kWh/day] Compressor Model (ARI 540)

Electric Energy Consumption

[kWh/day]

Heat Load

[Btu/h] Legend: Component

Energy Consumption

[kWh/day]

Fan Motor

Energy Consumption

[kWh/day] Lighting Energy Consumption

[kWh/day]54 

# Engineering Analysis Request for Comment

Item 5
- 1: Within each equipment class, for energy consumption levels below the baseline, DOE seeks information on daily energy consumption and on incremental manufacturing costs and components (differentiation in components from the baseline, material costs, labor costs, factory overhead costs (excluding depreciation), building conversion capital expenditures, tooling/equipment conversion capital expenditures, research and development (R&D) expenses, marketing expenses, etc.).
Item 5
- 2: DOE is also interested in any equipment test data that stakeholders can provide (including equipment parameters, test results, etc., and, in the case that a test procedure other than the DOE test procedure was used, the test procedures used and rating conditions). Test data for the baseline model in each equipment class is particularly important.
Item 5
- 3: DOE requests feedback on the use of the design

- option approach to determine the relationship between manufacturer selling price and energy efficiency for beverage vending machines.55 

## Manufacturing Selling Price

• MSP includes m anufacturer production costs (MPC) as well as non

production costs, such as maintenance, depreciation, and taxes

• Markups will be used to represent non

- production costs and convert the MPC to the MSP

• DOE intends to estimate manufacturer markups based on publicly available financial information and manufacturer interviews 

# Engineering Analysis

Request for Comment

Item 5
- 4: DOE seeks comment on the markup approach proposed for developing estimates of manufacturer selling prices.56 

### • DOE considers in its engineering and economic analyses all design options that have not been screened out, including proprietary designs

• DOE will consider proprietary designs in the subsequent analyses only if they are not part of a unique path to a given efficiency level 

# Engineering Analysis
Proprietary Designs57 

# Engineering Analysis

Request for Comment

Item 5
- 5: Are there proprietary designs that DOE should consider for any of the equipment under consideration by this rulemaking? If so, how should DOE acquire the cost data necessary for evaluating these designs?
Item 5
- 6: Are there alternative design paths that can achieve the same level of max - tech energy use (energy efficiency) as those using proprietary designs?58 

## Selecting Representative Unit Sizes

• Within each equipment class, DOE will select representative unit beverage vending machines in size ranges that represent typical units of that equipment class

• The representative unit sizes analyzed for the 2009 BVM final rule are shown in the table below 

# Engineering Analysis

Class A Class B Small Medium Large Small Medium Large Vendible Capacity number of cans 300 400 500 450 650 800 Refrigerated Volume ft 3 17 22 34 17 22 2659 

# Engineering Analysis

Request for Comment

Item 5
- 7: DOE requests feedback on representative sizes. Are the representative sizes used for the 2009 BVM final rule adequate, and should they be retained or modified?
Item 5
- 8: If DOE were to analyze a combination equipment class, perishables (including or in addition to beverages) equipment class, or other new equipment class, what should be the relevant representative sizes for that class?60 

## Max
- Tech

• DOE is required to analyze maximum technologically feasible (“max

- tech”) efficiency levels

• DOE will seek interested party input on the appropriate max

- tech levels



# Engineering Analysis61 

## Outside Regulatory Changes

• DOE will consider the effects of other DOE energy conservation standards and regulatory changes outside DOE’s rulemaking process that can impact manufacturers of covered equipment

• Some regulatory changes can also affect the efficiency, energy consumption, and/or engineering costs of the beverage vending machines covered under this rulemaking

• DOE will attempt to identify any outside engineering issues that could impact the engineering analysis 

# Engineering Analysis62 

# Engineering Analysis

Request for Comment

Item 5
- 9: DOE requests information on the use of alternative refrigerants in beverage vending machines, including shipment, cost, and energy consumption information.
Item 5
- 10: Are there additional regulatory issues that DOE should consider in its analysis of beverage vending machines? Do the issues discussed in this section affect shipments, cost or energy efficiency?63 

# Preliminary Analysis

Framework Document Preliminary Analysis NOPR Final Rule Effective Date

Market & Technology Screening Analysis Engineering Analysis

Energy Use Analysis
Shipments Analysis National Impact Analysis Markups Analysis
Life

- Cycle Cost and Payback Period Analysis

Preliminary Manufacturer Impact Analysis64 

### • Purpose:

– Estimate actual user purchase prices from manufacturer selling prices of baseline and higher efficiency designs of equipment



### • Method:

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

– Estimate markup values for each level in the identified distribution channels 

# Markups Analysis65 

## Identified Distribution Channels 

# Markups Analysis

• Equipment Manufacturer **→** Vending Machine Operator (e.g., bottler, beverage distributor)

• Equipment Manufacturer **→** Distributor **→** Vending Machine Operator

• Equipment Manufacturer **→** Site Owner

• Equipment Manufacturer **→** Distributor **→** Site Owner66 

## Baseline, Incremental, and Overall Markups

• Baseline markups are cost multipliers that convert the MSP of equipment at the baseline efficiency level to customer purchase price

• Incremental markups are cost multipliers that convert the increments in MSP of equipment at higher efficiency levels (compared to the MSP at baseline efficiency level) to corresponding increments in the customer purchase price

• Incremental markups are calculated based on the proportion of the distribution channel costs that vary only with the equipment costs, such as insurance cost, profit, and depreciation

• Fixed costs such as occupancy expenses and labor expenses do not scale with equipment cost and, hence, are not factored into the calculation of incremental markups

• Overall markups include the weighted

- average distribution channel markups, based on distribution channel market shares, and sales tax 

# Markups Analysis67 

## Mark

- Ups Analysis 

# Markups Analysis

Request for Comment

Item 7
- 1: DOE requests information on the distribution channels described above for the beverage vending machines covered under this rulemaking. DOE also requests information on the relative fractions of shipments expected for each distribution channel. Do distribution channels vary by equipment class?
Item 7
- 2: DOE requests information on how the overall markups for the beverage vending machines covered under this rulemaking may vary for each distribution channel.
Item 7
- 3: DOE requests feedback on its proposal to use baseline and incremental markups.
Item 7
- 4: DOE requests comment on sources of relevant data that could be used to calculate markups for each distribution channel.68 

# Preliminary Analysis

Framework Document Preliminary Analysis NOPR Final Rule Effective Date

Market & Technology Screening Analysis Engineering Analysis

Energy Use Analysis
Shipments Analysis National Impact Analysis Markups Analysis
Life

- Cycle Cost and Payback Period Analysis

Preliminary Manufacturer Impact Analysis69 

### • Purpose:

– Assess the daily energy use at all the efficiency levels for all the equipment classes

– Provide the basis for the unit energy costs used in the life

- cycle c ost a nalysis 

# Energy Use Analysis

Request for Comment

Item 6
- 1: How should DOE treat energy use in “heating mode” for outdoor machines in cold climates?70 

# Preliminary Analysis

Framework Document Preliminary Analysis NOPR Final Rule Effective Date

Market & Technology Screening Analysis Engineering Analysis

Energy Use Analysis
Shipments Analysis National Impact Analysis Markups Analysis
Life

- Cycle Cost and Payback Period Analysis

Preliminary Manufacturer Impact Analysis71 

### • Purpose:

– Assess economic impacts of different efficiency levels on the customers of refrigerated beverage vending machines



### • Method:

– LCC equals customer purchase price, installation cost, and operating costs for the entire equipment lifetime. All costs are discounted to a particular base year

– Operating costs include maintenance, repair and energy costs. All operating costs are annualized

– Results are expressed in terms of LCC savings (LCC at baseline efficiency level minus LCC at higher efficiency level) and PBP

– PBP, expressed in number of years, is calculated by dividing the incremental cost at a higher efficiency level by the corresponding annualized operating cost savings 

# Life

- Cycle Cost and Payback Period Analysis72 

## Components of LCC

• Equipment purchase price for a customer is calculated by multiplying the MSP of the equipment with the corresponding distribution channel markup value

• Installation costs include the labor and material costs to commission the equipment into service

• Maintenance costs are the costs incurred by the customer for preventative maintenance of the equipment

• Repair costs include the costs to repair or replace damaged or malfunctioning components of the equipment

• Energy costs are the costs paid by the customer for the electricity consumed by the equipment

– DOE will collect information about commercial and industrial electricity consumption and expenditures as a means of establishing electricity prices

– DOE will use the Energy Information Administration’s (EIA’s) Annual Energy Outlook ( AEO ) to estimate future energy prices 

# Life

- Cycle Cost and Payback Period Analysis73 

## Other Major Parameters for LCC Analysis

• Discount Rates

– DOE will derive the discount rates for the different customers by estimating the capital costs for different customers and business types that own and/or operate the equipment



### • Base Case Distribution of Efficiency Level Shares

– Base case efficiency level distribution is the distribution showing the market share of each efficiency level for each equipment class in the compliance year in the absence of any amended DOE standards

– If market share data is not available by efficiency level, DOE may develop efficiency distributions based on available models and information from refrigerated BVM manufacturers and experts



### • Equipment Lifetime

– The average and typical range of the equipment lifetime will be determined based on literature and industry inputs for each equipment class 

# Life

- Cycle Cost and Payback Period Analysis74 

### • LCC analysis is carried out in the form of Monte Carlo simulations

• Typically, DOE uses 10,000 samples for each equipment class

• For each sample, the values of parameters are chosen based on the probability of their occurrence. These values are then combined to calculate the LCC and PBP for that particular sampling

• The LCC, LCC savings and PBP are expressed in the form of mean or median values and certain percentiles

• The LCC results are also presented in the form of estimated percentage of customers that benefit from, are adversely affected by, and are unaffected by any amended standards 

# Life

- Cycle Cost and Payback Period Analysis
Approach: Monte Carlo Simulations75 

# Life

- Cycle Cost and Payback Period Analysis

Request for Comment

Item 8
- 1: DOE seeks comment on the proposed approaches for estimating current and forecasted energy prices.
Item 8
- 2: DOE seeks comment on the proposed approaches for estimating discount rates for customers using the equipment covered under this rulemaking.
Item 8
- 3: DOE recognizes that a large fraction of the customers of beverage vending machines are beverage bottlers. Which commercial sectors besides the bottlers should be considered in the evaluation of discount rates? In addition, do stakeholders believe that government direct purchases of this equipment are large enough to require that they be included in the evaluation of discount rates?76 

# Life

- Cycle Cost and Payback Period Analysis

Request for Comment

Item 8
- 4: DOE seeks feedback on what fraction of the installation, maintenance, and repairs involve efficiency improvements and what are the typical practices during the life cycle of an originally manufactured beverage vending machine (e.g., change lamps but not the compressor).
Item 8
- 5: What is a typical time period between the sale of a new BVM unit and the first maintenance or repairs? What are the typical cycles of maintenance and repairs?
Item 8
- 6: DOE seeks feedback on whether and how routine maintenance, repair, and installation costs will change for more

- efficient equipment.
Item 8
- 7: DOE seeks feedback on appropriate methodologies for assessing changes to maintenance, repair, and installation costs.77 

# Life

- Cycle Cost and Payback Period Analysis

Request for Comment

Item 8
- 8: DOE seeks feedback on appropriate equipment lifetimes for the beverage vending machines covered under this rulemaking.
Item 8
- 9: DOE seeks comment on whether energy conservation standards will have an impact on lifetimes of beverage vending machines.
Item 8
- 10: Is there a suitable inventory model that could be used to estimate the fraction of new versus rebuilt/refurbished machines in the market? If no inventory model exists, what is the impact of refurbishment on the equipment lifetime? DOE also seeks feedback on the number of refurbishment cycles in the typical lifetime of the beverage vending machines. DOE also seeks information on the effect of refurbishments on equipment utility and energy consumption. In a typical refurbishment, for example, are features added to the beverage vending machine that affect its utility and/or are changes made that affect the energy consumption of the equipment?78 

# Preliminary Analysis

Framework Document Preliminary Analysis NOPR Final Rule Effective Date

Market & Technology Screening Analysis Engineering Analysis

Energy Use Analysis
Shipments Analysis National Impact Analysis Markups Analysis
Life

- Cycle Cost and Payback Period Analysis

Preliminary Manufacturer Impact Analysis79 

### • Purpose:

– Project future shipments by equipment class



### • Approach:

– DOE typically projects shipments for a 30

- year period beginning with the expected compliance date of the standard

– Historical shipments data will be collected from sources such as Vending Times , U.S. Census Bureau data, North American Association of Food Equipment Manufacturers (NAFEM) reports, and other market research reports

– Future shipments will be calculated based on the historical shipments data, retirement rates of equipment, and the EIA’s AEO forecast of new commercial construction

– DOE may use different shipments projections in the standards case and base case scenarios depending on the information available 

# Shipments Analysis80 

## Shipments Analysis 

# Shipments Analysis Request for Comment

Item 9
- 1: DOE requests data on, sources of data related to, or any information pertaining to historical shipments and the market shares of the different efficiency levels offered in each equipment class.
Item 9
- 2: DOE seeks information on representative saturation rates for each equipment class covered under this rulemaking, as well as industry

- trend data regarding relative stock and growth in each equipment class.
Item 9
- 3: DOE seeks input on methods of projecting the markets for each equipment class and access to models or methods that could be used to estimate shipments.
Item 9
- 4: DOE seeks input on likely impacts on shipments due to new or amended standards for beverage vending machines. Please comment on what the possible scenarios are and the estimated quantitative impact of each scenario on the shipments numbers.81 

# Preliminary Analysis

Framework Document Preliminary Analysis NOPR Final Rule Effective Date

Market & Technology Screening Analysis Engineering Analysis

Energy Use Analysis
Shipments Analysis National Impact Analysis Markups Analysis Life

- Cycle Cost and Payback Period Analysis

Preliminary Manufacturer Impact Analysis82 

### • Purpose:

– Determine the projected national impacts, of any amended standards, in the form of NES and customer national NPV



### • Method:

– Develop annual series of national energy and economic impacts

– Utilize the shipments model to estimate stock each year

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

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

– Report NES in primary and full fuel cycle (FFC) savings

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

– Account for the time

- value of money though defined discount rates 

# National Impact Analysis83 

## Inputs for National Impact Analysis

• Inputs for calculating NES

– Annual energy consumption at each efficiency level of each equipment class

– Projected shipments

– Equipment stock (based on historical and projected shipments)

– Site

- to

- source conversion factors: These are multipliers used to convert the equipment energy used at the site to the source energy or primary energy



### • Inputs for calculating NPV

– Total installed costs increases of all the equipment for each year of the analysis period

– Total annual operating costs savings of all the equipment stock for each year of the analysis period

– Discount factors (3

- percent and 7

- percent) 

# National Impact Analysis84 

# National Impact Analysis

Request for Comment

Item 10
- 1: DOE seeks comment on the share of the market that is met by refurbished or rebuilt machines and whether there are a substantial number of machines in stock that are not in active use. In particular, DOE seeks comment on the impact of refurbishment/rebuilding on the energy consumption and lifetime of the existing fleet in the absence of standards, and the impact of new standards on refurbishment kits, the subsequent cost, and performance of the stock of existing equipment.
Item 10
- 2: DOE seeks comment on its plan to develop NIA spreadsheet models for estimating national impacts of amended energy conservation standards.85 

# Preliminary Analysis

Framework Document Preliminary Analysis NOPR Final Rule Effective Date

Market & Technology Screening Analysis Engineering Analysis

Energy Use Analysis
Shipments Analysis National Impact Analysis Markups Analysis Life

- Cycle Cost and Payback Period Analysis

Preliminary Manufacturer Impact Analysis86 

### • Purpose:

– Assessment of the potential impacts of energy conservation standards on manufacturers of refrigerated beverage vending machines



### • Method:

– Develop draft industry financial metrics based on public data

– Conduct interviews with manufacturers covering key issues and quantitative inputs

– Perform an industry cash

- flow and industry net present value (INPV) analysis through use of the Government Regulatory Impact Model (GRIM)

– Examine subgroups and cumulative regulatory burden 

# Preliminary Manufacturer Impact Analysis87 

### • Manufacturer Subgroups:

– DOE will identify and analyze subgroups of manufacturers that may be disproportionately affected by efficiency standards

– DOE will identify small business manufacturers and conduct a Regulatory Flexibility Act analysis to determine the impacts of standards on this subgroup



### • Cumulative Regulatory Burden:

– DOE will identify and consider the impact of multiple product

- specific regulations on manufacturers 

# Preliminary Manufacturer Impact Analysis88 

# Preliminary Manufacturer Impact Analysis

Request for Comment

Item 12
- 1: DOE seeks comment on appropriate manufacturer subgroups, if any, that DOE should consider in the manufacturer subgroup analysis for beverage vending machines.
Item 12
- 2: DOE seeks comment on small businesses that could be impacted by amended energy conservation standards for beverage vending machines, and what those impacts might entail.
Item 12
- 3: DOE welcomes comments on other existing or pending regulations it should consider in its examination of cumulative regulatory burden.89 Manufacturer Impact Analysis Customer Subgroup Analysis Revise Preliminary Analysis Emissions Analysis and Monetization Regulatory Impact Analysis

Engineering Analysis Life - Cycle Cost & Payback Period Analysis National Impact Analysis Framework Document Preliminary Analysis NOPR Final Rule Effective Date 

# NOPR Analyses

Employment Impact Analysis Utility Impact Analysis90 

### • Purpose:

– Analyze the economic impacts of standards on customers subgroups who may be disproportionately impacted compared with the general user population

• A subgroup comprises a subset of the population likely to be affected disproportionately by new or amended energy conservation standards



### • Method:

– Use the LCC analysis by specifically tailoring it to use parameters that are applicable to the identified subgroups

– The subgroup analysis results will be compared to the national average results (from the LCC analysis) to determine whether or not the identified subgroups are disproportionately affected 

# Customer Subgroup Analysis91 

# Customer Subgroup Analysis

Request for Comment

Item 11
- 1: DOE seeks input on which customer subgroups DOE should consider in the present rulemaking. Examples of possible subgroups DOE could consider appropriate for beverage vending machines are manufacturing facilities that own their own BVM units, which was the identified subgroup in the 2009 BVM final rule analysis, and site owners that pay the utilities but don’t own or stock the equipment.92 Manufacturer Impact Analysis Customer Subgroup Analysis Revise Preliminary Analysis Emissions Analysis and Monetization Regulatory Impact Analysis

Engineering Analysis Life - Cycle Cost & Payback Period Analysis National Impact Analysis Framework Document Preliminary Analysis NOPR Final Rule Effective Date 

# NOPR Analyses

Employment Impact Analysis Utility Impact Analysis93 

## Employment Impact Analysis

• Purpose:

– Assess the overall impact on national employment from the imposition of efficiency standards at differing levels

– Includes only indirect employment impacts

• Direct employment impacts are estimated in the manufacturer impact analysis

• Indirect employment impacts result from shifting customer expenditures among goods and services ( “substitution effect”) and changing equipment and energy costs (“income effect ”)



### • Method:

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

# Employment Impact Analysis94 

# Employment Impact Analysis

Request for Comment

Item 13
- 1: DOE requests feedback on this approach to assessing employment impacts.95 Manufacturer Impact Analysis Employment Impact Analysis Utility Impact Analysis Customer Subgroup Analysis Revise Preliminary Analysis Emissions Analysis and Monetization Regulatory Impact Analysis

Engineering Analysis Life - Cycle Cost & Payback Period Analysis National Impact Analysis Framework Document Preliminary Analysis NOPR Final Rule Effective Date 

# NOPR Analyses96 

### • Purpose:

– Assess the overall impacts on domestic energy supplies that would result from the imposition of standards



### • Method:

– DOE plans to use factors derived from NEMS

- BT, a variant of the NEMS (National Energy Modeling System) developed and used by DOE/EIA for their AEO report, as the basis of the utility i mpact analysis

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

# Utility Impact Analysis97 

# Utility Impact Analysis

Request for Comment

Item 14
- 1: DOE seeks input on its proposed use of NEMS

- BT to conduct the utility impact analysis.
Item 14
- 2: Should DOE consider using methods other than NEMS in the utility impact analysis?98 Manufacturer Impact Analysis Customer Subgroup Analysis Revise Preliminary Analysis Emissions Analysis and Monetization Regulatory Impact Analysis

Engineering Analysis Life - Cycle Cost & Payback Period Analysis National Impact Analysis Framework Document Preliminary Analysis NOPR Final Rule Effective Date 

# NOPR Analyses

Employment Impact Analysis Utility Impact Analysis99 • Purpose:

– Estimate environmental impacts from potential energy conservation standards for beverage vending machines including changes in FFC emissions

• Method:

– DOE will base the emission factors for FFC on NEMS, supplemented by data from other sources. The following emissions are assessed:

• Carbon dioxide (CO 2 )

• Sulfur dioxide (SO 2 )

– SO 2 emissions from affected electric generating units are subject to nationwide and regional emissions cap and trading programs

• Nitrogen oxides (NO x )

– Clean Air Interstate Rule (CAIR) permanently caps NO x emissions in 28 eastern States and DC

• Methane (CH 4 )

• Nitrous o xide (N 2 O)

• Mercury (Hg) 

# Emissions Analysis100 • DOE intends to use the most current Social Cost of Carbon (SCC) values developed by interagency reviews

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

• At present, the most recent interagency estimates of the potential global benefits resulting from reduced CO 2 emissions in 2015, expressed in 2012$, were $12.9, $40.8, $62.2, and $117 per metric ton avoided

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

• DOE will also estimate the potential monetary benefit of reduced NO x emissions resulting from the considered standard levels 

# Monetization of Emission Reductions101 

# Emissions Analysis & Monetization

Request for Comment

Item 15
- 1: DOE seeks input on its approach to conduct the emissions analysis for the equipment covered by this rulemaking.
Item 16
- 1: DOE requests comments on the approach it plans to use for estimating monetary values associated with emissions reductions.102 Manufacturer Impact Analysis Customer Subgroup Analysis Revise Preliminary Analysis Emissions Analysis and Monetization Regulatory Impact Analysis

Engineering Analysis Life - Cycle Cost & Payback Period Analysis National Impact Analysis Framework Document Preliminary Analysis NOPR Final Rule Effective Date 

# NOPR Analyses

Employment Impact Analysis Utility Impact Analysis103 

## Regulatory Impact Analysis

• Purpose:

– Explore the potential for non

- regulatory alternatives to new or amended energy efficiency standards



### • Method:

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

# NOPR Analyses104 

# Regulatory Impact Analysis

Request for Comment

Item 17
- 1: DOE is aware of the existing ENERGY STAR **** program for the beverage vending machine industry covered under this rulemaking. Are stakeholders aware of any other such programs that should be examined as optional, non

- regulatory approaches?
Item 17
- 2: Are there specific subgroups of end

- users whom DOE should consider in its review of potential adverse impacts from standards developed under this rulemaking?105 4 3 2

Test Procedure & Test Metrics Rulemaking Process Overview
Authority & Definitions 1 Introduction

5 Rulemaking Analyses 

# Public Meeting Agenda

6 Closing Remarks106 How to Submit Written Comments In all correspondence, please refer to the Refrigerated Beverage Vendi ng Machines rulemaking by :

– Framework Document for Refrigerated Beverage Vending Machines

– Docket Number: EERE

- 2013

- BT

- STD

- 0022

– Regulatory Identification Number (RIN ): 1904

- AD00 Electronic : BVM2013STD0022@EE.Doe.Gov or www.regulations.gov Postal Mail : Ms. Brenda Edwards U.S. Department of Energy Building Technologies Program, Mailstop EE

- 2J 1000 Independence Avenue, SW Washington, DC 20585

- 0121 Courier : Ms. Brenda Edwards U.S. Department of Energy Building Technologies Program Sixth Floor, 950 L’Enfant Plaza, SW Washington, DC 20024 Telephone: (202) 586

- 2945 Comment period closes : July 19, 2013 

## Closing Remarks