# Department of Energy

orkshop on Standards for Residential Furnaces and Boilers

Cyrus Nasseri July 17 , 2001

# Energy Policy & Conservation

AcfEPC A) Requirements

• EPCA requires standards to be set 

### • Any new or amended energy conservation standard prescribed by the Secretary for any type (or class) of covered product shall be designed to achieve the maximum improvement in energy efficiency, ...which the Secretary determines is technologically feasible and economically justified. (EPCA §325(0)(2)(A))

1

# SPCA Requirements

• Residential Furnaces and Boilers are covered products. §321(23) 

### • EPCA set the initial standards. §325(f) - All (except those listed below): 78% AFUE - Boilers • gas steam: 75% AFUE • others: 80% AFUE - Mobile home furnaces: 75% AFUE. 

### • Special provisions for mobile home furnaces and "small" furnaces (< 45,000 Btu/h input) 2

# PCA Requirements (Cont'd)

• "Small" furnace provisions. §325(f)(1)(B) - DOE to publish a final rule by 1/1/89, setting an AFUE level between 71% to 78% - Would apply to products manufactured from 1/1/92 - Not likely to cause fuel switching 

### • Mobile home furnace provisions. §325(f)(3)(A) - DOE to publish a final rule by 1/1192, determining if 

### the 75% AFUE standard should be amended - Amendment would apply to products manufactured on or after I/ 1 /94

# EPCA Requirements (Cont'd)

Othe r 

### p rovisions . 

### §325(f)(3)( ) 

### -(C) B y 1/1/94 • Publish a final rule, determining if all the residential furnace and boiler standards should be amended • Amendments would apply to products manufactured on or after 1 / 1/2002

- B etwee n 1/1/97 to 1/1/07 ® Publish a final rule to determine whether all the residential furnace and boiler standards in effect for such products should be amended , and include such amendment, if any in this rule would apply to products manufactured on or after 1/1/2012 4

# Delays Encountered

• FY' 96 moratorium on standards • DOE improved process rule (7/15/96) - Applied to products before NOPR stage, including residential furnaces and boilers 

### - DOE would revise mobile home furnace analysis and NOPR and follow assigned FY priority levels 

### • Assigned a low priority in the following years • Assigned a high priority in FY'O1

# Current Status

• "Small" furnace provisions: §325(f)(1)(B). - Final rule published on 11/17/89, adopting 78% AFUE 

### • Mobile home furnace provisions: §325(f)(3)(A). - NOPR published on 3/4/94 

### • Other provisions: §325(f)(3)(B)-(C): - First revision of standards (statutory effective date: 1/1/2002): ANOPR published 9/8/93 

### - Second revision of standards (statutory effective date: 1/1/2012): TBD 6

# Mobile Home Furnaces

• Statute requires a two review approach (325(f(3)) - A final rule by 1/1/92, to determine if the 75% AFUE 

### standard should be amended. (Effective 1/1/94) - Final rule for all classes of residential furnaces and boilers on whether standards should be amended. (Effective 1/1/02) 

### • Statutory timeline not met due to delays • Recommendations - First stage: Adopt an intermediate standard. (Effective at an earlier date) - Second stage: Adopt a possibly higher standard effective with standards for all product classes. (Effective at a later date)

# Standards Setting Process Time l ine
July 2001 Stakeholder Participation Prior Standards Rulemakings 

### ec^ Qo me o ^c o° Iq ^° QQ`\ Pow ^C J`^a oQ q S ^a ^Q oc mo ^Q 5 otc c°' N7^ ocyo^ G 5 Q-QJ .p^ QJ

987 1989 1993 1994 Current Standards Rulemaking

a^^ ^oo,^c OQQ- OQQ- m J Re O° I g^^ mac

2001 2002 2003 2004 2006 2012 8

# Analytical Framework Residential Furnaces and Boilers Approaches Industry Review Quantitative Analysis i Qualitative Analysis-Interviows Tear-Down Analysis Design-Option Approach ff Efficiency-Level Approach 1

Market Survey Expert Forecasts
Forecasts Models Historical shipments • Product saturation Voluntary initiatives ANOPR rP

.Batail.P..rig s ................

............................................. Other efficiencies Efficiency Life-cycle Cost and Payback Analysis
National Impacts Analysis Eio Key-Outputs

• Payback Distribution t • Life-cycle Distribution Energy savings r • Net Present Values r • Payback distribution i i r

r _ r

Revised Engineering, LCC, and NES Analyses "" • Payback Distribution

. Consumer • Life-cede Distribution Demographics Impacts Manufacturer Prices

. ..................................................................7............... Manufacturer Industry Cash-flow with Uncainty Averag e t ................ Impact Analysis Costs • Standard Level Cases

• Efficiency Distribution i for all Cases Utility load factors Emission rates (NEMS) Environmental Analysis (NEMS Employment Impacts NOPR FINAL RULE Key-Inputs Identify Firms/ Products Historical Information Market ( Firm Segmentation txisnnq gulatorv epic

n-r niti Exi sting Technology ODtions Equipment Prototype Designs J r ^Ir Equipment Simulation Models 0 i
0 Analysis Market & Technology Assessment v a Screening Analysis Engineering Analysis x r ^Ia

Marginal Energy Pries a iy v Maintenance/Service Cost I

Efficiency/Pe
..................................................................... a
Prices I

8et$il, Png.C.s...t ................ Other efficiencies i Installation costs I

Utility Impacts Utility Revenue Losses Emissions

# Discussion Topics

• Market and Technology Assessment - Product Classes - Baseline Residential Furnaces and Boilers - Screening Analysis 

### • Engineering Analysis Retai l P rices , M arkups , and Installation Costs - Electricity Consumption

10

# iscussion Topics (Cont'd)

• Other Analyses - Life-Cycle Cost Analysis 

### - Consumer Sub-group Analysis - National Energy Saving and Net Present Value Analysis - Manufacturer Impact Analysis - Employment Impact Analysis - Utility Impact Analysis - Environmental Analysis

11

### • Incorporate comments (due 8 / 17/0 '1 )

• Fine-tune analytical approach and conduct preANOPR analyses (8 /01-12 /02) 

### • Publish

- ANOPR (12 /02)

- NOPR (6 1 04)



### - F inal Rule (11 /04)