Building Technologies Program eere.energy.gov 1 

# BUILDING TECHNOLOGIES PROGRAM

Preliminary Analysis Public Meeting on Energy Conservation Standards for Commercial Refrigeration Equipment Charles Llenza Department of Energy Energy Efficiency & Renewable Energy CRE - 2010 - STD - 0003@ee.doe.gov April 19, 2011Building Technologies Program eere.energy.gov 2 

# • Introductions • Role of the Facilitator • Ground Rules (norms)

– Listen as an ally

– Use short, succinct statements/keep to the point

– Hold sidebar conversations outside the room

– Focus on issues, not personalities

– One person speak at a time (raise hand to be recognized; state your name for the record)

– Set cell phones to silent/vibrate 

# • Housekeeping Items 

# Welcome and IntroductionsBuilding Technologies Program eere.energy.gov 3 

# Request for Comment

Issue Box: DOE welcomes comment regarding the Notice of Public Meeting and Availability of the Preliminary Technical Support Document. Throughout this presentation, specific issues will be raised for discussion in yellow issue boxes. However , comments concerning any part of the document or presentation are welcome.Building Technologies Program eere.energy.gov 4 Preliminary Manufacturer Impact Analysis; NOPR Analyses Test Procedure Certification, Compliance & Enforcement 

# Public Meeting Agenda

4 5 6 Markups Analysis; Energy Use Analysis; Life- Cycle Cost and Payback Period Analysis 2 Shipments Analysis; National Impact Analysis 3 1 Introduction and Overview Market and Technology Assessment; Screening and Engineering Analysis

7 Closing Remarks 8Building Technologies Program eere.energy.gov 5 

# Introduction and Overview Purpose of the Public Meeting

• Present the procedural and analytical approaches to evaluate energy conservation standards for commercial refrigeration equipment (CRE).
• Provide a forum for public discussion of rulemaking issues.
• Encourage interested parties to submit data, information, and written comments.
• Inform interested parties and facilitate the rulemaking process.Building Technologies Program eere.energy.gov 6 • EPACT 2005 amended EPCA to prescribe standards for self- contained commercial refrigerators, freezers, and refrigerator freezers with doors. • EPACT 2005 also directed DOE to set standards by January 1, 2009 for remote - condensing equipment, open cases, and ice cream freezers. DOE published a final rule on January 9, 2009 (74 FR 1092); compliance date January 1, 2012. • EPACT 2005 also directed DOE to determine whether to amend the standards set both by the 2009 DOE rulemaking and by EPACT 2005 and, if necessary, perform a rulemaking and publish amended standards by January 1, 2013. The preliminary analysis for this rulemaking is the subject of today’s public meeting. • Any amended standards established by DOE will apply to equipment manufactured no earlier than 3 years or more after the publication of such a rule and no later than a maximum of 5 years.

2005 2009 2010 2012 2013 2016 DOE determines whether to amend

standards for all CRE equipment (EPACT and 2009 rulemaking) EPACT prescribes standards for SC equipment with doors EPCA establishes energy conservation program

1975 DOE sets standards for ice- cream freezers, remote

condensing equipment, and self- contained equipment without doors 

# Introduction and Overview Rulemaking History & TimelinesBuilding Technologies Program eere.energy.gov 7 

# Introduction and Overview Current Rulemakings Timelines

2010

ECS Framework Document Public Meeting May 18, 2010 ECS Preliminary Analysis Public Meeting

April 19, 2011 ECS NOPR Public Meeting Planned - Spring 2012 2014 2012 2013 2015 2016 Planned ECS Final Rule Effective Date January 1, 2016 

# CRE Energy Conservation Standard Rulemaking Timeline

TP NOPR Public Meeting January 6, 2011 2011Building Technologies Program eere.energy.gov 8 

# Introduction and Overview Preliminary Analysis Rulemaking Stages

Market and Technology Assessment Screening Analysis Engineering Analysis Markups for Equipment Price Determination Shipments Analysis National Impact Analysis Energy Use Analysis Life - Cycle Cost and Payback Period Analysis Preliminary Manufacturer Impact Analysis NOPR Final Rule Framework Document Preliminary AnalysisBuilding Technologies Program eere.energy.gov 9 

# Introduction and Overview Interested Parties’ Opening Statements

At this time DOE welcomes opening remarks on the preliminary analysis for commercial refrigeration equipment.Building Technologies Program eere.energy.gov 10 Preliminary Manufacturer Impact Analysis; NOPR Analyses Test Procedure Certification, Compliance & Enforcement 

# Public Meeting Agenda

4 5 6 Markups Analysis; Energy Use Analysis; Life- Cycle Cost and Payback Period Analysis 2 Shipments Analysis; National Impact Analysis 3 1 Introduction and Overview Market and Technology Assessment; Screening and Engineering Analysis

7 Closing Remarks 8Building Technologies Program eere.energy.gov 11 

# Market Assessment Purpose & Method 

# • Purpose

– Characterize the CRE market and manufacturers

– Determine scope of coverage

– Determine appropriate equipment classes


# • Method

– Identify manufacturers of CRE and their product offerings by conducting a study of the CRE market

– Use available shipment data to characterize market trends

– Develop appropriate equipment classes to classify covered equipment


# • Detailed description of methodology and results is contained in Chapter 3 of the preliminary TSD.Building Technologies Program eere.energy.gov 12 

# Market Assessment Equipment Classes


# • 2009 Final Rule equipment classes

– Consisted of 38 covered classes

– Nomenclature developed allowed for 48 total equipment classes • 8 equipment families • 3 rating temperatures (medium, low, and ice cream) • 2 operating modes (remote - condensing and self- contained) 

# • EPACT 2005 equipment

– EPACT 2005 set standards for 5 specific groups of equipment

– Using the DOE equipment class nomenclature developed for the 2009 rulemaking, plus the addition of a “pull - down” equipment family, this was classified as 11 additional classes 

# • For this rulemaking, DOE is considering a total of 49 covered classes

– A full listing of the equipment classes is shown in Chapter 3 of the preliminary TSDBuilding Technologies Program eere.energy.gov 13 

# Market Assessment Equipment Classes Equipment Family Name Equipment Family Abbreviation Vertical Open VOP Semivertical Open SVO Horizontal Open HZO Vertical Closed Transparent VCT Horizontal Closed Transparent HCT Vertical Closed Solid VCS Horizontal Closed Solid HCS Service Over Counter SOC Pull - Down PDBuilding Technologies Program eere.energy.gov 14 

# Market Assessment Equipment Classes Rating Temperature Designation Rating Temperature Value Rating Temperature Abbreviation Medium 38 °F M Low 0°F L Ice Cream - 15 °F I Operating Mode Designation Operating Mode Abbreviation Remote - Condensing RC Self - Contained SCBuilding Technologies Program eere.energy.gov 15 

# Market Assessment Request for Comment

Item 2-1 DOE seeks comment on the equipment class nomenclature and on the appropriateness of the stated equipment classes for classifying the commercial refrigeration equipment market.Building Technologies Program eere.energy.gov 16 

# Technology Assessment Purpose & Method


# • Purpose

– To develop a preliminary list of technology options that could improve the efficiency of commercial refrigeration equipment.


# • Method

– DOE identified technology options from: • Literature review • Manufacturer brochures and specification sheets for commercially available equipment • Comments and input from stakeholders


# • All technology options are described in Chapter 3 of the preliminary TSD.Building Technologies Program eere.energy.gov 17 

# Technology Assessment Technologies Identified All Equipment Classes Higher Efficiency Lighting Increased Evaporator Surface Area Higher Efficiency Lighting Ballasts Low Pressure Differential Evaporators Remote Lighting Ballast Location Case Insulation Increases or Improvements Higher Efficiency Expansion Valves Defrost Mechanisms Higher Efficiency Evaporator Fan Motors Defrost Cycle Control Variable-Speed Evaporator Fan Motors and Evaporator Fan Motor Controllers Vacuum Insulated Panels Higher Efficiency Evaporator Fan Blades Occupancy Sensors for Lighting ControlsBuilding Technologies Program eere.energy.gov 18 

# Technology Assessment Technologies Identified Equipment With Doors Only Anti- Fog Films on Transparent Doors Anti-Sweat Heater Controls 

### Equipment Without Doors Only Air Curtain Design Night Curtains 

### Self- Contained Equipment Only Higher Efficiency Compressors Liquid Suction Heat Exchangers Increased Condenser Surface Area Higher Efficiency Condenser Fan Motors Variable- Speed Condenser Fan Motors and Condenser Fan Motors Controllers Higher Efficiency Condenser Fan BladesBuilding Technologies Program eere.energy.gov 19 

# Technology Assessment Request for Comment

Item 2-2 DOE asks interested parties to comment on other technologies that DOE should consider.Building Technologies Program eere.energy.gov 20 

# Screening Analysis Purpose



# • Purpose

– To determine which technology options will be considered in downstream analyses. 

# • Technology options are “screened out” if they

– Are not technologically feasible

– Are not practicable to manufacture, install, and service

– Have adverse impacts on equipment utility or availability to customers

– Have adverse impacts on health or safety 

# • In this analysis, DOE also removed from consideration technologies that do not affect calculated energy consumption as measured by the test procedure. • The methodology and results are presented in detail in Chapter 4 of the preliminary TSD.Building Technologies Program eere.energy.gov 21 

# Screening Analysis Technologies Removed from Consideration



# • Technologies that do not affect calculated energy consumption per the DOE test procedure:

– Higher - efficiency expansion valves

– Variable - speed condenser fans and condenser fan motor controllers

– Anti - sweat heater controllers

– Liquid - suction heat exchangers 

# • Screened - Out Technology:

– Air curtain designBuilding Technologies Program eere.energy.gov 22 

# Engineering Analysis Purpose and Methods


# • Purpose

– To characterize the relationship between manufacturer selling price and commercial refrigeration equipment energy consumption. 

# • Methods

– DOE selected 24 “primary” equipment classes to analyze directly in its engineering analysis.

– DOE chose representative unit sizes from each primary class on which to perform the analysis.

– For each unit, DOE determined the baseline configuration.

– DOE also analyzed the technology options for each class. 

# • The methodology and results are presented in detail in Chapter 5 of the preliminary TSD.Building Technologies Program eere.energy.gov 23 

# Engineering Analysis Approach


# • DOE used a design - option approach to estimate the effect of implementing advanced technologies.

– For a baseline unit, DOE first calculated: • Daily energy consumption • Cost



## – DOE added advanced technologies to the baseline and calculated: • Reduction in daily energy consumption • Incremental cost



## – Finally, DOE sorted the technologies in order from most to least cost effective.


# • Result: Cost - Efficiency Curves , which describe the relationship between energy consumption and manufacturer selling price.Building Technologies Program eere.energy.gov 24 

# Engineering Analysis Design Options Analyzed

Engineering Design Options Higher Efficiency Lighting and Occupancy Sensors for VOP, SVO, and SOC (Horizontal Fixtures) Higher Efficiency Lighting and Occupancy Sensors for VCT and PD (Vertical Fixtures) Increased Evaporator Coil Surface Area Higher Efficiency Evaporator Fan Motors Improved Case Insulation Improved Doors for VCT: Low and Ice Cream Temperatures Improved Doors for VCT and PD: Medium Temperature Improved Doors for HCT: Low and Ice Cream Temperatures Improved Doors for HCT: Medium Temperature Improved Doors for SOC: Medium Temperature Increased Condenser Surface Area (SC Only) Higher Efficiency Condenser Fan Motors (SC Only) Higher Efficiency Compressors (SC Only) Night Curtains (Equipment Without Doors Only)Building Technologies Program eere.energy.gov 25 

# 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) Component Energy Consumption

[kWh/day] Fan Motor

Energy Consumption

[kWh/day] Lighting Energy Consumption

[kWh/day]Building Technologies Program eere.energy.gov 26 

# Engineering Analysis Request for Comment

Item 2-3 DOE seeks comment on its energy consumption model and engineering approach for analyzing commercial refrigeration equipment.Building Technologies Program eere.energy.gov 27 

# Engineering Analysis Cost Model


# • Manufacturer selling price is the output of the cost model

– Costs for implementing design options were derived from a review of publicly available cost information, as well as discussions with manufacturers.

– Core case costs for each equipment class were derived from a manufacturing cost model prepared for the 2009 rulemaking.

– Manufacturer markups and outbound freight costs were applied to arrive at manufacturer selling price.



# • Direct material 

# • Direct labor 

# • Factory overhead 

# • Depreciation 

# • Sales & marketing 

# • Research & development 

# • Interest 

# • Profit Shipping from manufacturer to distributor Manufacturer

Production Cost Manufacturer Markup Outbound Freight Cost 

# = Manufacturer Selling Price 

# +Building Technologies Program eere.energy.gov 28 

# Engineering Analysis Request for Comment

Item 2-4 DOE seeks comment on its costs, markup, and outbound freight methodologies.Building Technologies Program eere.energy.gov 29 

## • Each point on a cost - efficiency curve is called an Efficiency Level. • DOE conducted downstream analyses at each efficiency level for the representative units modeled 

# Engineering Analysis Example Cost - Efficiency Curve

$3,000 $3,500 $4,000 $4,500 $5,000 $5,500

10 15 20 25 30 35Manufacturer Selling Price [$]

Daily Energy Consumption [kWh/day] VCT.SC.L Vertical Self- Contained Freezer with Transparent Doors 

### Max Tech BaselineBuilding Technologies Program eere.energy.gov 30 Preliminary Manufacturer Impact Analysis; NOPR Analyses Test Procedure Certification, Compliance & Enforcement 

# Public Meeting Agenda

4 5 6 Markups Analysis; Energy Use Analysis; Life- Cycle Cost and Payback Period Analysis 2 Shipments Analysis; National Impact Analysis 3 1 Introduction and Overview Market and Technology Assessment; Screening and Engineering Analysis

7 Closing Remarks 8Building Technologies Program eere.energy.gov 31 

# Markups Analysis Overview Purpose • Determine the market share - based weighting factor of each distribution channel. • Determine the baseline and incremental price markups for each distribution channel and overall markup values.

Manufacturer

Customer Customer Manufacturer

Customer Manufacturer Wholesaler (Distributor) Wholesaler (Distributor) Contractor Channel National Account Channel Wholesaler Channel

Mechanical Contractor 

## Distribution ChannelsBuilding Technologies Program eere.energy.gov 32 

# Markups Analysis Distribution Channel Weighting Factors

Item 3 - 1 DOE seeks comment on the weighting factors for the three distribution channels. Remote - Condensing Equipment

National Account Channel 70% Contractor

Channel 15% Wholesaler Channel 15% 

### Self- Contained Equipment
National Account Channel 30% Contractor

Channel 10%
Wholesaler Channel 60%Building Technologies Program eere.energy.gov 33 

# Markups Analysis Inputs and Methodology

Inputs • Industry balance sheets from HARDI for wholesalers profit data. • U.S. Census Bureau data for mechanical contractor profit data. Methodology • Contractor and wholesaler expenses and markups:

– Cost of goods sold

– Labor expenses (salaries and benefits)

– Occupancy expenses (rent, maintenance, utilities)

– Other operating expenses (depreciation, advertising, insurance)

– Profit 

## • Express expenses and profit in terms of per dollar cost of goods sold and sum up the resulting numbers to obtain a baseline markup. • Assumption for incremental markups: labor and operating expenses are fixed, and other operating expenses and profit scale with manufacturer selling price (cost of goods sold). • National account markup is assumed to be half of the wholesaler markup.Building Technologies Program eere.energy.gov 34 

# Markups Analysis Preliminary Weighted - Average Markups Markups ( Baseline / Incremental ) Wholesaler Mechanical Contractor

(Includes Wholesaler) National Account Overall Weighted Average Markup Self Contained Remote Condensing Distribution Channel Markup 

## 1.36/ 1.09 2.00/ 1.30 1.18/ 1.05 1.37/ 1.10 1.33/ 1.25 Markup (Incl. Sales Tax) 

## 1.46/ 1.17 2.15 / 1.39 1.27/ 1.12 1.47/ 1.18 1.43/ 1.34 Sales Tax Multiplier 

## 1.07 Item 3 - 2 DOE seeks comment on the methodology and assumptions used for the markups analysis.Building Technologies Program eere.energy.gov 35 

# Energy Use Analysis Overview Description/Background • Generally, the purpose of this analysis is to translate equipment efficiency as determined in the engineering analysis into real - world energy use. • During the 2009 rulemaking process, the engineering energy consumption model (Engineering Analysis) was validated by means of whole - building simulations; this validation was not repeated for the preliminary analysis. • In the preliminary analysis, DOE evaluated the incremental effect of improved efficiency of self- contained equipment on restaurant building heating and cooling loads. Findings and Conclusions • DOE concluded that efficiency improvements in self- contained equipment do not have a noticeable impact on building heating and cooling loads. • DOE does not intend to further investigate the impact of improved efficiency on building heating and cooling loads.Building Technologies Program eere.energy.gov 36 

# LCC and PBP Analysis Purpose & Methodology Purpose • Estimate financial impacts on individual (commercial) customers by calculating

– Life - cycle cost savings

– Payback period 

## Methodology • Life Cycle Cost: Equipment - installed price + operating costs over the equipment lifetime

– LCC savings: Base - case LCC minus standards - case LCC 

## • Payback Period: Equipment - installed price / first - year operating costs • LCC is discounted; PBP is not discounted (“simple” PBP)Building Technologies Program eere.energy.gov 37 

# LCC and PBP Analysis Analysis FlowchartBuilding Technologies Program eere.energy.gov 38 

## • Standards set in the 2009 CRE final rule go into effect on January 1, 2012.

• The baseline efficiency level will be altered in 2012 and will be different from the current (2010) market baseline efficiency level.

• In cases where current market baseline (obtained from the engineering analysis) was less efficient than the 2009 final rule standards or EPACT 2005 standards, the corresponding standard was used as the market baseline – such a baseline level will be referred to as Standards Baseline.

• Consequently, engineering design option levels that are less efficient than standards baseline efficiency level were not considered for LCC and PBP analysis and NIA. 

# LCC and PBP Analysis Efficiency Levels – Effect of Current Standards

Item 4 - 1 DOE seeks comments on the methodology used to determine baseline efficiency levels for the preliminary analysis.Building Technologies Program eere.energy.gov 39 

## • Current electricity prices based on EIA form 826 data

– Specific to state and sector

• Growth rates based on EIA’s Annual Energy Outlook (AEO )

– Specific to sector and region of the country

• Both will be updated for the NOPR analysis

• Energy prices extended to building type using CBECs data

– Time -of- use pricing or marginal pricing were not used 

# LCC and PBP Analysis Electricity PricesBuilding Technologies Program eere.energy.gov 40 

## • Installation costs

– Average: $2,106 for remote condensing and $790 for self contained

– Varied by state based on a state - level index developed using RS Means data • Annualized repair costs based on replacement of major components. Inputs:

– Probabilities of replacing components during product lifetime

– Original equipment manufacturer costs and equipment replacement markups (including labor) – repair costs vary with efficiency level. • Annual maintenance costs

– Lighting maintenance costs • Lights replaced based on rated lifetimes of the component (preventative) • Combined with original equipment manufacturer costs, applied markups and annualized



## – Preventative maintenance: assumed fixed values (RS Means data) • $220 per year for remote condensing; $35 per year for self contained 

# LCC and PBP Analysis Installation, Maintenance and Repair CostsBuilding Technologies Program eere.energy.gov 41 

# LCC and PBP Analysis Request for Comment
Item 4 - 2 DOE seeks comment on whether the maintenance and repair costs assumptions are reasonable and how maintenance and repair costs may vary with efficiency level. Item 4 - 3 DOE seeks comments on any additional sources that could be considered for maintenance, repair, and installation costs .Building Technologies Program eere.energy.gov 42 

## • Discount Rates

– Real rates based on weighted average cost of capital (WACC)

– Different rates by establishment type • Large Grocery and Multi - Line Retail Stores • Convenience Stores with Gas • Convenience Stores and Small Food Sales • Full Service and Limed Service Restaurants • Other Food Service


## • Lifetimes

– Average lifetime of 10 years was used for majority of the equipment

– Average lifetime of 15 years was used for equipment used in convenience and small food sales building types 

# LCC and PBP Analysis Discount Rates and Equipment LifetimesBuilding Technologies Program eere.energy.gov 43 

## • Used Crystal Ball analyses to vary key inputs

– State, which changes • Installation costs • Markups (due to tax rates) • Electricity Costs



## – Building type, which changes • Discount Rate • Electricity Cost



## – Equipment lifetimes (Weibull survival functions)

– Base - case efficiency level distribution 

# LCC and PBP Analysis Uncertainties in Input Values

Item 4 - 4 DOE seeks comments on inputs to the Crystal Ball simulations.Building Technologies Program eere.energy.gov 44 

# LCC and PBP Analysis Sample Results: VCT.SC.L Equipment Class Efficiency Level Energy Consumption kWh/yr 2010$ Life- Cycle Cost Savings Payback Period years Installed Cost Total Discounted Operating Cost LCC Affected Customer s’

Average Savings

2010$ % of Customers that Experience Median Net Cost No Impact Net Benefit 1 11,936 5,832 13,657 19,489 NA NA NA NA NA 2 11,441 5,845 13,200 19,045 445 0 87 13 0.28 3 10,335 5,888 12,185 18,072 1,195 0 74 26 0.38 4 7,314 6,117 9,362 15,480 3,369 0 60 40 0.66 5 5,645 6,400 7,707 14,107 3,802 0 45 55 0.94 6 5,042 6,593 7,155 13,748 3,357 0 30 70 1.15 7 4,773 6,760 6,910 13,670 2,904 2 17 81 1.35 8 4,550 7,459 6,701 14,159 2,064 34 5 61 2.30 Summary of LCC and PBP analysis results for all the efficiency levels for the equipment class VCT.SC.LBuilding Technologies Program eere.energy.gov 45 Preliminary Manufacturer Impact Analysis; NOPR Analyses Test Procedure Certification, Compliance & Enforcement 

# Public Meeting Agenda

4 5 6 Markups Analysis; Energy Use Analysis; Life- Cycle Cost and Payback Period Analysis 2 Shipments Analysis; National Impact Analysis 3 1 Introduction and Overview Market and Technology Assessment; Screening and Engineering Analysis

7 Closing Remarks 8Building Technologies Program eere.energy.gov 46 

# Shipments Analysis Overview Purpose • Estimate future stock and shipments of commercial refrigeration equipment by equipment class • Estimate efficiency mix of stock over time Methodology • Future shipments are based on historical shipments and growth rates based on commercial floor space construction forecast (from AEO 2010). • DOE estimated historical shipments data for the year 2009 using 

# :

– Shipments for the year 2005 submitted by AHRI in prior rulemaking

– Freedonia Group, Inc. historical data

– North American Association of Food Equipment Manufacturers’ (NAFEM) 2008 report 

## • Equipment stock was estimated based on the 2009 shipments data • Projected stock and shipments were based on commercial floor space construction estimate data.Building Technologies Program eere.energy.gov 47 

# Shipments Analysis Results
• Shipments split between equipment classes using ratios from 2009 shipments estimates Equipment Class Percentage of Linear Feet Shipped Equipment Class Percentage of Linear Feet Shipped VOP.RC.M 10.81% SVO.SC.M 1.28% VOP.RC.L 1.91% SOC.RC.M 2.45% VOP.SC.M 0.86% HZO.RC.M 1.49% VCT.RC.M 0.91% HZO.RC.L 4.69% VCT.RC.L 12.64% HZO.SC.M 0.11% VCT.SC.M 5.77% HZO.SC.L 0.23% VCT.SC.L 2.93% HCT.SC.M 0.07% VCT.SC.I 2.27% HCT.SC.L 0.00% VCS.SC.M 17.30% HCT.SC.I 1.01% VCS.SC.L 8.80% HCS.SC.M 5.22% VCS.SC.I 0.08% HCS.SC.L 0.67% SVO.RC.M 9.70% PD.SC.M 7.16%Building Technologies Program eere.energy.gov 48 

# Shipments Analysis Results
• Total estimated shipments displayed on the table below

– Shipments expressed and analyzed in terms of linear feet Building Type Thousands of Linear Feet Shipped by Year and Equipment Class 2016 2020 2025 2030 2035 2040 2045 Total Large Grocery

– New 291 338 360 384 406 435 467 11,564

– Replacement 1,042 1,169 1,224 1,395 1,502 1,685 1,833 42,279 Small Grocery

– New 86 100 106 113 120 128 138 3,414

– Replacement 301 294 323 338 352 385 411 10,276 Foodservice

– New 303 351 373 399 423 452 485 12,026

– Replacement 699 848 920 1,114 1,240 1,444 1,613 33,869 Total 2,722 3,099 3,307 3,742 4,043 4,530 4,947 113,429Building Technologies Program eere.energy.gov 49 

# Shipments Analysis Request for Comment

Item 5 -1 DOE seeks comment on the sources and methodology for estimating historical shipments .Building Technologies Program eere.energy.gov 50 

# National Impact Analysis Overview Purpose • To assess the impacts at the national level at each efficiency level as measured by

– National Energy Savings (NES)

– Net Present Value (NPV) of total customer economic impacts 

## Method • For each year, for both the base case and standards cases, DOE calculates:

– National energy consumption (energy use per unit multiplied by total stock)

– Total consumer expenditures on commercial refrigeration equipment: • National equipment expenditures • National operation and maintenance costs 

## • Difference between base case and standards cases in each year gives NES and NPV of consumer economic impacts. • Dollar values are discounted.Building Technologies Program eere.energy.gov 51 

## • Key inputs from upstream analyses

– Stock and shipments (Shipments Analysis) • NIA includes a module based on the EIA’s National Energy Modeling System (NEMS) to imitate consumer choices • Module disaggregates total shipments into shipments by efficiency level



## – Additional cost/energy use inputs (LCC and PBP Analysis) • Annual electricity costs per refrigeration unit • Installed cost per unit • Annual operating costs other than energy costs per unit 

# National Impact Analysis Inputs from Upstream AnalysesBuilding Technologies Program eere.energy.gov 52 

## • Discount Factor

– Used 7 percent and 3 percent real discount rates from the Office of Management and Budget’s Regulatory Analysis Guideline A -4

– Future expenses are discounted to present year (2011)
• Electricity Site - to - Source Conversion Factors

– Used to convert on - site energy consumption to primary (or source) energy generation

– Depend on variables such as: • Time - varying generation mix • Distribution and transmission losses



## – For pre - analysis, used a factor developed for the 2009 CRE Rulemaking

– For NOPR, a new analysis will be performed using NEMS 

# National Impact Analysis Other InputsBuilding Technologies Program eere.energy.gov 53 

# National Impact Analysis Results: National Energy Savings Equipment Class National Energy Savings ( quads) by Standard Level Level 2 Level 3 Level 4 Level 5 Level 6 Level 7 Level 8 VOP.RC.M 0.008 0.012 0.067 0.271 0.285 NA NA VOP.RC.L 0.005 0.023 0.031 NA NA NA NA VOP.SC.M 0.003 0.003 0.019 0.020 NA NA NA VCT.RC.M 0.001 0.001 0.013 0.013 0.014 NA NA VCT.RC.L 0.101 0.108 0.153 NA NA NA NA VCT.SC.M 0.004 0.067 0.072 0.092 0.100 0.101 0.113 VCT.SC.L 0.004 0.022 0.096 0.152 0.178 0.192 0.205 VCT.SC.I 0.004 0.014 0.016 0.017 0.025 0.027 0.040 VCS.SC.M 0.014 0.049 0.061 0.074 0.103 0.145 0.218 VCS.SC.L 0.011 0.038 0.054 0.071 0.092 0.135 0.207 VCS.SC.I 0.000 0.000 0.000 0.000 0.001 NA NA SVO.RC.M 0.005 0.030 0.034 0.161 0.170 NA NA SVO.SC.M 0.004 0.004 0.021 0.022 NA NA NA SOC.RC.M 0.000 0.002 0.002 0.029 0.029 0.031 NA HZO.RC.M 0.000 NA NA NA NA NA NA HZO.RC.L 0.001 0.015 NA NA NA NA NA HZO.SC.M 0.000 NA NA NA NA NA NA HZO.SC.L 0.001 NA NA NA NA NA NA HCT.SC.M 0.000 0.000 0.000 0.000 0.000 0.001 NA HCT.SC.L 0.000 0.000 0.000 0.000 0.000 0.000 NA HCT.SC.I 0.000 0.001 0.002 0.009 NA NA NA HCS.SC.M 0.001 0.003 0.003 0.004 0.013 NA NA HCS.SC.L 0.000 0.001 0.001 0.002 0.006 NA NA PD.SC.M 0.041 0.096 0.098 0.111 0.127 0.152 0.180Building Technologies Program eere.energy.gov 54 Preliminary Manufacturer Impact Analysis; NOPR Analyses Test Procedure Certification, Compliance & Enforcement 

# Public Meeting Agenda

4 5 6 Markups Analysis; Energy Use Analysis; Life- Cycle Cost and Payback Period Analysis 2 Shipments Analysis; National Impact Analysis 3 1 Introduction and Overview Market and Technology Assessment; Screening and Engineering Analysis

7 Closing Remarks 8Building Technologies Program eere.energy.gov 55 

# Manufacturer Impact Analysis Overview 

## Purpose • To identify the impacts of amended energy conservation standards on manufacturers.
• Key output of MIA is the change in industry net present value (INPV) due to amended standards.
• The MIA consists of three phases:

Industry profile Develop straw - man GRIM Develop interview guide Interviews & industrywide / subgroup analyses Assess direct employment, competition, & cumulative burden Phase 2 Phase 3 Phase 1Building Technologies Program eere.energy.gov 56 

# Manufacturer Impact Analysis Overview Phase 1 • DOE creates an industry profile to characterize the industry and identify important issues that require consideration. 

## Phase 2 • DOE prepares an industry cash - flow model and an interview questionnaire to guide subsequent discussions. 

## Phase 3 • DOE interviews manufacturers and assesses the impacts of amended standards both quantitatively (using the Government Regulatory Impact Model) and qualitatively (impacts on competition, manufacturing capacity, employment, and regulatory burden).
Industry profile Develop straw - man GRIM Develop interview guide Interviews & industrywide / subgroup analyses Assess direct employment, competition, & cumulative burden Phase 2 Phase 3 Phase 1Building Technologies Program eere.energy.gov 57 

# Preliminary Manufacturer Impact Analysis Key Issues

• Testing Burden

– Testing costs may lead industry to trim product lines and limit customization 

## • Potential changes in refrigerant

– Potential regulation impacting the availability and cost of HFC refrigerants could dramatically increase the cost of complying with an energy conservation standard 

## • Conflicts with other certification testing parameters

– Lack of harmonization between food safety standard testing and DOE energy standard testing leads to additional costs


## • Impacts on small manufacturers

– Small manufacturers may not necessarily offer fewer models than larger manufacturers but do have fewer resources for testingBuilding Technologies Program eere.energy.gov 58 

# Preliminary Manufacturer Impact Analysis Request for Comment
Item 7 - 1 DOE requests comment on its identification of key issues and requests data and information from interested parties that can assist in evaluating the potential impact on manufacturers. Item 7 - 2 DOE invites comment on regulations applicable to commercial refrigeration manufacturers that contribute to their cumulative regulatory burden.Building Technologies Program eere.energy.gov 59 

# NOPR Analyses

Environmental Assessment Life - Cycle Cost Subgroup Analysis Manufacturer Impact Analysis Utility Impact Analysis Employment Impact Analysis Regulatory Impact Analysis Revise Preliminary

Analysis 

### NOPR Final Rule Framework Document Preliminary AnalysisBuilding Technologies Program eere.energy.gov 60 

# NOPR Analyses Overview • LCC Subgroup Analysis

– Effects on various national consumer subgroups 

## • Manufacturer Impact Analysis

– Continue work begun in the preliminary MIA 

## • Utility Impact Analysis

– Effects on generation capacity of utilities 

## • Employment Impact Analysis

– Indirect effects on national employment 

## • Environmental Assessment

– Effects on airborne pollutant emissions 

## • Regulatory Impact Analysis

– Potential for non - regulatory approachesBuilding Technologies Program eere.energy.gov 61 Preliminary Manufacturer Impact Analysis; NOPR Analyses Test Procedure Certification, Compliance & Enforcement 

# Public Meeting Agenda

4 5 6 Markups Analysis; Energy Use Analysis; Life- Cycle Cost and Payback Period Analysis 2 Shipments Analysis; National Impact Analysis 3 1 Introduction and Overview Market and Technology Assessment; Screening and Engineering Analysis

7 Closing Remarks 8Building Technologies Program eere.energy.gov 62 

# Test Procedure Current CRE Test Procedure

• On December 8, 2006, DOE established the current test procedure for commercial refrigeration equipment, which references the Air - Conditioning and Refrigeration Institute (ARI) Standard 1200 - 2006.

– ARI 1200 - 2006 references ASHRAE Standard 72 - 2005 as the method of test . • DOE adopted AHAM Standard HRF -1- 2004 for measuring refrigerated compartment volume. 71 FR 71370 (Dec. 8, 2006).Building Technologies Program eere.energy.gov 63 

# Test Procedure Current CRE Test Procedure

• The current DOE test procedure contains the following rating temperatures :

• The current test procedures for commercial refrigeration equipment appear under Title 10 of the Code of Federal Regulations part 431, subpart C. Equipment Rating Temperature Commercial refrigerators and refrigerator compartments 38 °F ( ± 2 °F) Commercial freezers and freezer compartments 0 °F ( ± 2 °F) Commercial ice - cream freezers - 15 °F ( ± 2 °F)Building Technologies Program eere.energy.gov 64 

## DOE is amending the test procedure for commercial refrigeration equipment in a separate rulemaking (EERE - 2010 - BT-TP - 0034) that proposes to: 1) Update referenced industry test procedures to the most current versions :

– AHRI Standard 1200 -2010

– AHAM Standard HRF -1-2008 

## 2) Incorporate provisions to address certain energy conservation features that are currently not accounted for in the DOE test procedure :

– Night curtains

– Lighting occupancy sensors and scheduled controls 

## 3) Allow commercial refrigeration equipment that cannot be tested at the 38 ° F rating temperature to be tested at its lowest application product temperature . 

# Test Procedure Proposed TP AmendmentsBuilding Technologies Program eere.energy.gov 65 

# Test Procedure Night Curtains

• DOE proposes to use the following test method, adapted from section 7.2 in ASHRAE Standard 72 - 2005, “Door - Opening Requirements”: Night Curtain Requirements . For open display cases sold with night curtains installed, the night curtain shall be employed according to manufacturer instructions for a total of 6 hours, 3 hours after the start of a defrost period. Upon the completion of the 6 - hour period, the night curtain shall be raised until the completion of the 24 - hour test period. 

# Night Curtain Proposed Test MethodBuilding Technologies Program eere.energy.gov 66 

# Test Procedure Lighting Occupancy Sensors and Scheduled Controls The proposed lighting occupancy sensor consists of 3 primary calculations: 1. Calculate direct energy use of lighting with occupancy sensors or scheduled controls installed.

– Requires default specifications for the time lighting is off or dimmed due to lighting occupancy sensors or scheduled controls. 

## 2. Calculate reduced refrigeration load when energy use of lights within the refrigerated volume is decreased.

– Requires default specifications for the EER of the compressor and to account for the fact that not all of the heat produced from the lights will impact the compressor load. 

## 3. Calculate the adjusted daily energy consumption based on the decreased lighting energy use and decreased compressor energy use. 

# Lighting Occupancy Sensor and Scheduled Controls Proposed Test MethodBuilding Technologies Program eere.energy.gov 67 

# Test Procedure Lighting Occupancy Sensors and Scheduled Controls

• The time off period for scheduled controls was chosen to approximate the typical usage of lighting control products based on comments received during previous DOE rulemakings for this equipment . • The time off period for lighting occupancy sensors was derived based on the previously cited demonstration project conducted through the DOE GATEWAY program . Case has... Only scheduled lighting controls installed Only lighting occupancy sensors installed Both lighting occupancy sensors and scheduled controls installed Times are... t off,controls 

### + t dim,controls 

### = 8 hours t off,sensors 

### + t dim,sensors 

### = 10.8 hours t off,controls 

### + t dim,controls 

### = 8 hours AND t off,sensors 

### + t dim,sensors 

### = 2.8 hours 

# Determination of t off 

# and t dimBuilding Technologies Program eere.energy.gov 68 • Note : The CEC A includes a multiplication factor of 0.75 to account for the fact that not all of the heat produced from the lights will impact the compressor load. li l sc A (P t 1000 3.4121 (LEC ) CEC 0.75 EER ) × × − = × 

### Eq. 4 Operating Temperature Class EER 1,2 **Btu/W** Medium 11.26 Low 7.14 Ice Cream 4.80 Note: 1. EER values for operating temperature classes are calculated based on the average EER value of all equipment in that class which was analyzed as part of the previous (2009) rulemaking. 2. These values only represent compressor EER and do not include condenser fan energy use. 

## • EER for Self- Contained Commercial Refrigerated Display Merchandisers and Storage Cabinets 

# Calculation of Alternate Compressor Energy Consumption

• EER for Remote Condensing Commercial Refrigerated Display Merchandisers and Storage Cabinets = Table 1. in AHRI 1200 -2010 

# Test Procedure Lighting Occupancy Sensors and Scheduled ControlsBuilding Technologies Program eere.energy.gov 69 Preliminary Manufacturer Impact Analysis; NOPR Analyses Test Procedure Certification, Compliance & Enforcement 

# Public Meeting Agenda

4 5 6 Markups Analysis; Energy Use Analysis; Life- Cycle Cost and Payback Period Analysis 2 Shipments Analysis; National Impact Analysis 3 1 Introduction and Overview Market and Technology Assessment; Screening and Engineering Analysis

7 Closing Remarks 8Building Technologies Program eere.energy.gov 70 

# Certification, Compliance & Enforcement Basic Model Explanation



## A Basic Model • May contain multiple models/model numbers. • Is manufactured by a single manufacturer, although it may be distributed under different brand names.
• Is made up of models that contain the same primary energy source (i.e., electric, gas).
• Is made up of models that have essentially identical electrical, physical and functional characteristics that affect energy consumption and/or efficiency.
• May not contain models from multiple product classes. • Can be made up of only one model. There is no requirement for multiple models within a basic model.
• Must contain individual certified ratings that are identical and must be based on the least efficient model.Building Technologies Program eere.energy.gov 71 

# Certification, Compliance & Enforcement How To Get Certified Ratings

Generate Certified Rating Determine Minimum and Maximum Rating Values The Certified Rating Must be < The Mean or the UCL, Whichever is Lower Calculate the Product Specific Certification Statistics, 429.42 CRE Sample Mean (x) Upper Confidence Limit (UCL) Determine which Federal Conservation Standards Apply to the Product Commercial Refrigeration Equipment: 431.66 Test At Least Two Units of a Basic Model Using the DOE Test Procedure (Maximum Number of Units is at the Discretion of the Manufacturer)Building Technologies Program eere.energy.gov 72 

# Certification, Compliance & Enforcement Certification Requirements

• Current effective date for compliance with certification provisions is July 5, 2011. • Only electronic submission accepted. Submit online at https://www.regulations.doe.gov/ccms . • Use product - specific, Excel templates provided by DOE. • Submit certification report before distribution in commerce for all new models. • Annual submittal of carry - over products on or before the 1 st 

## of the month specified in the annual certification table (429.12(d)). • No additional certification testing required for annual submission. • Recertify if the redesign of an existing model increases energy consumption resulting in re - rating.Building Technologies Program eere.energy.gov 73 

# Certification, Compliance & Enforcement New Initiatives
Request for Information on Alternative Methods of Determining Efficiency Issued April 8, 2011 DOE seeks comment and data: • Current procedures used by industry to rate lowvolume, custom built commercial equipment; • Current applications of DOE’s AEDM/ARM procedures; • Products to which AEDM/ARM should apply; • Data to demonstrate ability of AEDM/ARM to estimate energy efficiency/consumption; and • Procedures governing substantiation and verification of AEDMs and ARMs.Building Technologies Program eere.energy.gov 74 

# Certification, Compliance & Enforcement New Initiatives (cont.)
Notice of Proposed Rulemaking on the Compliance Date for Certification Provisions Applicable to Certain Types of Commercial Equipment Issued April 12, 2011 DOE seeks comment and data: • Proposed a tentative 18 - month compliance date extension for the certification provisions for commercial refrigeration equipment; commercial heating, ventilating, air- conditioning (HVAC) equipment; commercial water- heating equipment; walk- in coolers; walk- in freezers; and automatic commercial ice - making equipment; • Considering extending the compliance date for other commercial equipment based on comments and data; and • Considering longer/shorter date extension based on comments and data.Building Technologies Program eere.energy.gov 75 

# Certification, Compliance & Enforcement Questions / Information

Submit a Question: • DOE Test Procedure Website: http://www1.eere.energy.gov/guidance/default.aspx?pid=2&spid=1 • Ashley Armstrong: Ashley.Armstrong@EE.Doe.Gov Request a Test Procedure Waiver: • DOE’s regulations allow manufacturers to apply for a waiver when a manufacturer determines that a given basic model contains one or more design features that prevent testing in accordance with DOE’s test procedure. • Email: AS_Waiver_Requests@ee.doe.gov File a Complaint: Email: energyefficiencyenforcement@hq.doe.gov. The Office of Enforcement will protect the identity of complainants to the maximum extent permitted by law. DOE’s Certification, Compliance, and Enforcement Website: http://www1.eere.energy.gov/buildings/appliance_standards/certificati on_enforcement.html DOE’s Online Certification System: https://www.regulations.doe.gov/ccms/ Enforcement Information: http://gc.doe.gov/energy_efficiency_enforcement.htmBuilding Technologies Program eere.energy.gov 76 Preliminary Manufacturer Impact Analysis; NOPR Analyses Test Procedure Certification, Compliance & Enforcement 

# Public Meeting Agenda

4 5 6 Markups Analysis; Energy Use Analysis; Life- Cycle Cost and Payback Period Analysis 2 Shipments Analysis; National Impact Analysis 3 1 Introduction and Overview Market and Technology Assessment; Screening and Engineering Analysis

7 Closing Remarks 8Building Technologies Program eere.energy.gov 77 

# Closing Remarks

DOE welcomes any closing remarks from interested parties.Building Technologies Program eere.energy.gov 78 

# Contact Information for Feedback

In all correspondence, please refer to the Commercial Refrigeration Equipment Energy Conservation Standards rulemaking by:

– Commercial Refrigeration Equipment Rulemaking,

– Docket Number EERE -2010- BT- STD -0003 , and

– Regulatory Identification Number (RIN) 1904-AC19 Email : CRE -2010- STD -0003@ee.doe.gov Postal: Courier: Ms. Brenda Edwards U.S. Department of Energy Building Technologies Program Mailstop: EE - 2J, Room 1J - 018 1000 Independence Avenue, SW Washington, DC 20585 - 0121 Ms. Brenda Edwards U.S. Department of Energy Building Technologies Program, 6th Floor 950 L’Enfant Plaza, SW Washington, DC 20024 Tel: 202 - 586 - 2945 

##  Comment period ends May 16, 2011Building Technologies Program eere.energy.gov 79 

# Relevant Webpages

• DOE Appliance Standards

– http://www1.eere.energy.gov/buildings/appliance_standards/
• Commercial Refrigeration Equipment Rule

– http://www2.eere.energy.gov/buildings/appliance_standards/commercial/refrig eration_equipment.html
• Contact Charles Llenza, Project Manager, from the Appliance Standards Program for additional information:

– Charles.Llenza@ee.doe.gov

– 202.586.2192
• Contact John Cymbalsky, Supervisor, from the Appliance Standards Program for additional information:

– John.Cymbalsky@ee.doe.gov

– 202.287.1692Building Technologies Program eere.energy.gov 80 

# Backup SlidesBuilding Technologies Program eere.energy.gov 81 

# List of Requests for Comment Item 2 - 1 DOE seeks comment on the equipment class nomenclature and on the appropriateness of the stated equipment classes for classifying the commercial refrigeration equipment market. Item 2 - 2 DOE asks interested parties to comment on other technologies that DOE should consider. Item 2 - 3 DOE seeks comment on its energy consumption model and engineering approach for analyzing commercial refrigeration equipment. Item 2 - 4 DOE seeks comment on its costs, markup, and outbound freight methodologies. Item 3 - 1 DOE seeks comment on the weighting factors for the three distribution channels. Item 3 - 2 DOE seeks comment on the methodology and assumptions used for the markups analysis. Item 4- 1 DOE seeks comments on the methodology used to determine baseline efficiency levels for the preliminary analysis. Item 4 - 2 DOE seeks comment on whether the maintenance and repair costs assumptions are reasonable and how maintenance and repair costs may vary with efficiency level. Item 4- 3 DOE seeks comments on any additional sources that could be considered for maintenance, repair, and installation costs. Item 4- 4 DOE seeks comments on inputs to the Crystal Ball simulations. Item 5 - 1 DOE seeks comment on the sources and methodology for estimating historical shipments.Building Technologies Program eere.energy.gov 82 

# List of Requests for Comment (Cont.) Item 7 - 1 DOE requests comment on its identification of key issues and requests data and information from interested parties that can assist in evaluating the potential impact on manufacturers. Item 7 - 2 DOE invites comment on regulations applicable to commercial refrigeration manufacturers that contribute to their cumulative regulatory burden.