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Residential Furnaces and Boilers

Notice of Proposed Rule aping Public

Meeting

DATE:

TIME:

LOCATION:

Monday, October 30, 2006

9:00 a.m. - 4:00 p.m. EDT

U.S. Department of Energy

1000 Independence Avenue, SW

Room 1E-245

Washington, DC 20585

Purpose: On Friday, October 6, 2006, the Department of Energy published a

Notice of Proposed Rulemaking (NOPR) for Residential Furnaces and Boilers in

the Federal Register. The NOPR announces a public meeting for all interested

parties to discuss and provide comments on related issues. The meeting will

be held on Monday, October 30, 2006.

The following documents are available as Adobe Acrobat PDFs. Download

Acrobat Reader.

Public Meeting Materials:

Meeting Agenda (PDF 21 KB)

Presentations:

o Furnaces and Boilers Rulemaking Overview (PDF 175 KB)

To see the transcript from this meeting, you can visit the Building Technologies

Program's Reading Room, between 9:00am and 4:00pm, Monday through

Friday, except Federal holidays, at:

U.S. Department of Energy

Forrestal Building

Room 1J-018

1000 Independence Avenue, SW

Washington, DC

Phone: (202) 586-9127

To obtain a copy of the transcript from this meeting, please contact:

Neal R. Gross

Court Reporters and Transcribers

1323 Rhode Island Avenue, N.W.

Washington, DC 20005-3701

Phone: (202) 234-4433

How to Submit Comments

You may submit comments electronically, by mail, or by courier. Wherever

possible, comments in the electronic format should carry the electronic

signature of the author. Absent an electronic signature, comments submitted

electronically must be followed and authenticated by submitting a signed

original paper document.

Email: Resi dentialFBNOPRComments@ee.doe.gov

Mail: Ms . Brenda Edwards-Jones, U.S. Department of Energy, Building

Technologies Program, Mail Stop EE-2J, 1000 Independence Avenue, SW,

Washington, DC, 20585-0121.

EE-RM/STD-01-350 COMMENT 105
Courier: Ms. Brenda Edwards-Jones, U.S. Department of Energy, Building

Technologies Program, Room 1J-018, 1000 Independence Avenue, SW,

Washington, DC, 20585-0121. Telephone: (202) 586-2945.

All comments (electronic and hardcopy) should clearly identify the Docket

number, which is EE-RM /STD-01-350. The deadline for submitting

comments is January 15, 2007.

For further information regarding this rulemaking, please visit Furnaces and

Boiler Rulemaking webpage.

3 Printable Version

Webmeater I Security & Privacy I Building Technologies Program Home I EERE Home

U.S. Department of Energy

Content Last Updated: 10/25/2006

EE-RM/STD-01-350 COMMENT 105
Energy Conservation Standards

for Residential Furnaces and Boilers

Notice of Proposed Rulemaking (NOPR)

Building Technologies Program

Office of Energy Efficiency and Renewable Energy

October 30, 2006

1

EE-RM/STD-01-350 COMMENT 105
DOE Actions on Residential Furnaces and Boilers

• Framework published June 13, 2001.

• ANOPR published July 29, 2004. 69 FR 45419

• NOPR published October 6, 2006, 71 FR 59204.

• Final Rule scheduled for September 2007.

2

EE-RM/STD-01-350 COMMENT 105
The Energy Policy and Conservation Act directs DOE to take into

consideration seven factors when setting energy conservation standar ds

1. Economic impact on Life-cycle cost analysis

consumers and manufacturers Manufacturer impact analysis

2. Lifetime operating cost savings Life-cycle cost analysis

compared to increased price

3. Total projected energy savings National impact analysis

4. Impact on utility or Engineering analysis

performance Screening analysis

5. Impact of any lessening of Manufacturer impact analysis

competition

6. Need for national energy National impact analysis

conservation

7. Other factors the Secretary Environmental assessment

considers relevant Utility impact analysis

Employment impact analysis 3

42 U.S.C. 6295(o)(2)(B)(i)

EE-RM/STD-01-350 COMMENT 105
Standards-Setting Flow Diagram

Revise

ANOPR

Analyses

Engineering

Analysis

Framework

Document

Trial

Standard

Levels

Life-Cycle

Cost &

Payback

Period

Analyses

ANOPR NOPR Final Effective

Rule Date

Manufacturer Utility Employment

^ Impact Impact Impact

Analysis Analysis Analysis

National

Impact

Analysis

Environmenta

Assessment

Regulatory

Impact

Analysis

4

EE-RM/STD-01-350 COMMENT 105
Engineering Analysis

• Gathered new material prices to prepare five-year average

price and sensitivity analysis (2005 first quarter data)

• Updated estimates of equipment and venting cost

- Updated estimates of installation cost by assuming all 81-percent AFUE

gas furnaces use double-wall vents

- Updated estimates of maintenance cost by accounting for higher

maintenance frequency for modulating design option

5

EE-RM/STD-01-350 COMMENT 105
Life-Cycle Cost Analysis

Annual Heating Load: Used 2001 RECS data and incorporated

adjustment for change in new home size and shell performance :

• Annual Energy Usage: Used RECS 2001 data

• Energy Prices: Calculated 2001 average and marginal energy prices

for each sample house

• Maintenance: Supplemented same sources with new info about

modulating equipment and used identical maintenance costs for

condensing and non-condensing equipment

• Lifetime: New values for boilers

• Discount Rate: Updated per 2001 Survey of Consumer Finances

• Sensitivity Analysis: Analyzed the impact of AE02006 energy

prices forecast on the LCC and PBP results

6

EE-RM/STD-01-350 COMMENT 105
National Impact Analysis

• Shipments:

- Used updated data from GAMA (April 2005)

- Projections of new housing updated to AE02005

- Used AE02005 for market share projections

• Gas furnace early replacement : Model calibrated to GAMA data for

early replacement of non-condensing to more efficient condensing

furnaces

• Conversion from non-central gas heating to central heating:

Used RECS 2001 data to account for the conversion

• Rebound Effect: Energy savings were reduced to account for the

rebound effect

• Sensitivity Analysis : Analyzed the impact of AE02006 energy

prices forecast on the NIA results

7

EE-RM/STD-01-350 COMMENT 105
LCC Subgroup Analysis

• The Department analyzed the impacts on households with low

income levels and households occupied by seniors.

• The Department analyzed the potential effect of standards on

households in Southern (<5,000 HDD) and Northern (>5,000

HDD) states.

8

EE-RM/STD-01-350 COMMENT 105
Manufacturer Impact Analysis

Evaluated impacts from energy conservation standards on Industry

Net Present Value (INPV).

® Assessed direct employment impacts on furnace and boiler

manufacturers.

• Assessed impacts on manufacturing capacity of furnace and boiler

industry.

® Assessed cumulative regulatory burden on manufacturers from

DOE standards and other regulatory actions.

9

EE-RM/STD-01-350 COMMENT 105
Utility Impact Analysis

• Energy savings from National Impact Analysis were input to

National Energy Modeling System (NEMS).

• Reported impacts by fuel type and power plant capacity.

10

EE-RM/STD-01-350 COMMENT 105
Employment Impact Analysis

• Estimated indirect employment impacts using IMBUILD II.

• Reported change in employment by sector as a consequence

of new standards

11

EE-RM/STD-01-350 COMMENT 105
Environmental Impact Analysis

• Calculated the emissions of C02, NO,, and So,,

- From NEMS for electricity generation

- From spreadsheet for combustion in households

• Assumed regulatory emissions caps are binding, so SOx and some

NOx emissions are not reduced.

- When there are regulatory emissions caps, reduced electricity

generation may not result in emissions reductions

• Consistent with energy savings, emissions savings were reduced to

account for the rebound effect.

12

EE-RM/STD-01-350 COMMENT 105
Regulatory Im pact Analys is

• Considered non-regulatory alternatives:

- no new regulatory action

- early replacement

- prescriptive standards

- customer tax credits

- manufacturer tax credits

- customer rebates

- voluntary efficiency targets

- bulk government procurement

• Used modified NES spreadsheet model to consider each alternative

13

EE-RM/STD-01-350 COMMENT 105
Issues on which DOE seeks comment - NOPR issues 1-3

(1) The number of consumers that may be affected by structural

changes for installing a condensing furnace and the cost

magnitude of any structural changes

(2) The assumption of constant heat pump and electric resistance

furnace market shares over the analysis period in order to

calculate the possible market shift effects of non-weatherized gas

furnace energy conservation standards on NES and NPV

(3) The assumption of constant condensing furnace market share

over the analysis period in the base case forecast in order to

calculate the annual unit energy consumption of non-weatherized

gas furnaces

14

EE-RM/STD-01-350 COMMENT 105
Issues on which DOE seeks comment - NOPR issues #4-5

The feasibility and safety of weatherized gas furnaces at trial standard

level 2 (83-percent AFUE), due to possible condensation in the heat

exchanger

(5) Information that would allow the Department to monetize changes in

warranty costs resulting from the installation of products at nearcondensing levels

15

EE-RM/STD-01-350 COMMENT 105
Issues raised by Stakeholders

• Waiver of Federal Preemption (Regional Standards)

• Proposed Trial Standard Level

• Consensus Agreement

16

EE-RM/STD-01-350 COMMENT 105