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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.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

## 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

## DOE Actions on Residential Furnaces an d Bo ilers • 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.

2The Energy Policy and Conservation Act directs D OE 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)

# 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

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### 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

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### Life-Cycle Co st 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 • SensitivityAnalysis: Analyzed the impact of AE02006 energy prices forecast on the LCC and PBP results

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### 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

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### 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.

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### 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.

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### 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.

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### Employment Impact Analysis • Estimated indirect employment impacts using IMBUILD II. • Reported change in employment by sector as a consequence of new standards

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### 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.

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## Regulatory Im pact A nalys 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

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### Issues on which DOE seeks comment - NO P R 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

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### Issues on which DOE seeks comment

- NO PR 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 inwarranty costs resulting from the installation of products at nearcondensing levels

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### Issues raised by Stakeholders
• Waiver of Federal Preemption (Regional Standards) • Proposed Trial Standard Level • Consensus Agreement

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