1 |EnergyEfficiencyandRenewableEnergyeere.energy.govEnergyConservationStandards:NoticeofProposedRulemakingforResidentialDehumidifiersJuly7,2015BryanBerringerDepartmentofEnergyBuildingTechnologiesProgramEERE–2012–BT–STD–0027ResDehumidifier2012STD0027@ee.doe.gov2Welcome•Introductions(aroundtheroom)•RoleoftheFacilitator•GroundRules–Speakoneatatime.–Sayyournamefortherecord– therewillbeacompletetranscriptofthismeeting.–Beconcise– sharethe‘air‐time’.–Keepthefocushere– cellphonesonsilent;limitsidebarconversations.–Webinarparticipantsturnphoneonmute;‘raiseyourhand’toberecognizedtospeak.•HousekeepingItems•AgendaReview•OpeningRemarks3ListeningViatheWebcast•TheDepartmentisbroadcastingthismeetingliveovertheInternet.•DOEisprovidingthewebcasttoaccommodatestakeholdersthatareunabletoattendthepublicmeetinginperson.•Thewebbroadcastallowsstakeholderstolisteninandviewtheslides.•Allstakeholdersareencouragedtosubmitwrittencommentsafterthepublicmeeting.4Agenda9:00– 9:15amIntroduction9:15– 9:45amRegulatoryHistory,TestProcedures,RulemakingOverview,andProposedStandards9:45– 10:15amMarketandTechnologyAssessmentandScreening10:15– 10:30amBreak10:30– 11:00amEngineeringAnalysis11:00– 11:45pmMarkupsandEnergyUseAnalysis11:45– 12:15pmLife‐CycleCostandPaybackPeriodAnalysis12:15– 1:30pmBreakforLunch1:30– 2:00pmShipmentsandNationalImpactAnalysis2:00– 2:15pmBreak2:15– 2:45pmManufacturerImpactAnalysis2:45– 3:15pmAdditional NOPRAnalyses3:15– 3:30pmClosingCommentsandRemarks5PurposeofthePublicMeeting•Presenttheproceduralandanalyticalapproachestoevaluateenergyconservationstandardsforresidentialdehumidifiers.•Invitecommentontheenergyconservationstandardsnoticeofproposedrulemaking(NOPR)andtechnicalsupportdocument(TSD),includingDOE’sproposedstandardlevels.•Discussnextstepsintherulemaking.•Inviteparticipantstoprovidesummarycommentsorstatementsandraiseadditionalissuesfordiscussion.6IssuesforDiscussion•Issue“boxes”correspondtothelistofissuesforwhichtheDepartmentseekscomments.•ThelistofissuesisintheNOPR,availableat:http://www.regulations.gov/#!documentDetail;D=EERE‐2012‐BT‐STD‐0027‐0031•ThedeadlineforsubmittingcommentsisAugust3,2015,11:59pm(ET).RequestforCommentDOEwelcomescomments,data,andinformationconcerningitsNOPRforresidentialdehumidifiers.IssuesthatcorrespondtothoseraisedinDOE’spublishedmaterialwillbenumberedinaccordancewiththatmaterial.Whetherinvitedbyanissueboxornot,commentsarewelcomeonanypartofDOE’sanalysis.7OpeningRemarksforStandardsMeetingparticipantsareinvitedtoprovideopeningremarksorstatementsatthistime.8PublicMeetingTopics1RegulatoryHistory,TestProcedures,andOverview2ProposedStandards3MarketandTechnologyAssessmentandScreening4EngineeringAnalysis5MarkupsandEnergyUseAnalysis6Life‐CycleCostandPaybackPeriodAnalysis7ShipmentsandNationalImpactAnalysis8ManufacturerImpactAnalysis9AdditionalNOPRAnalysesandClosingRemarks9RegulatoryHistory•EnergyPolicyandConservationActof1975(EPCA)P.L.94‐163–AmendedbyNationalEnergyConservationPolicyActof1978,P.L.95‐619,toestablishthe“EnergyConservationProgramforCertainIndustrialEquipment.”•EnergyPolicyActof2005(EPACT)P.L.109‐58–AmendedEPCAtoestablishtheinitialenergyconservationstandardsfordehumidifiers.•EnergyIndependenceandSecurityActof2007(EISA)P.L.110‐140–FurtheramendedEPCAtoprescribenewenergyconservationstandardsfordehumidifiersmanufacturedonorafterOctober1,2012.•DOEhaspublishedthisNOPR inaccordancewithEPCA’s6‐yearlook‐backprovisionandotherstatutoryrequirements.10DefinitionofCoveredProducts•EPCAdefinesadehumidifierasfollows:Theterm“dehumidifier”meansaself‐contained,electricallyoperated,andmechanicallyencasedassemblyconsistingof‐(A)arefrigeratedsurface(evaporator)thatcondensesmoisturefromtheatmosphere;(B)arefrigeratingsystem,includinganelectricmotor;(C)anair‐circulatingfan;and(D)meansforcollectingordisposingofthecondensate.(42U.S.C.6291(34))11EnergyConservationStandardsHistory•EPACTestablishedthefollowingenergyconservationstandardsforresidentialdehumidifiers,effectiveOctober1,2007:Product Capacity(pints/day)Minimum EnergyFactor(liters/kWh)25.00orless 1.0025.01to35.00 1.2035.01to54.00 1.3054.01to74.99 1.5075.00ormore 2.2512EnergyConservationStandardsHistory•EISAestablishedthefollowing(current)energyconservationstandardsforresidentialdehumidifiers,effectiveOctober1,2012:Product Capacity(pints/day)Minimum EnergyFactor(liters/kWh)Upto35.00 1.3535.01to45.00 1.5045.01to54.00 1.6054.01to75.00 1.70Greaterthan75.00 2.513DOETestProcedure•TestProcedureOverview:–In2012,DOEestablishedthetestprocedurecurrentlyat10CFRpart430,subpartB,appendixX(AppendixX),whichisusedtodeterminecompliancewiththecurrentenergyconservationstandards.–DOErecentlyissuedafinalruletoestablishanewtestprocedureat10CFRpart430,subpartB,appendixX1(AppendixX1).–TheNOPRanalysesarebasedonthetestprocedureinAppendixX1.CompliancewithanyfutureamendedenergyconservationstandardswouldbedeterminedaccordingtoAppendixX1.14DehumidifierStandardsRulemakingTimeline2012 20152013 2014 20162017Milestone DateNOPRPublication June3,2015NOPRPublicMeetingJuly7,2015CommentPeriodEndsAugust3,201515RulemakingProcessOverview•Neworamendedstandardsmustbedesignedtoachievethemaximumimprovementinenergyorwaterefficiencythatistechnologicallyfeasibleandeconomicallyjustified.•DOEperformsthefollowinganalysestodeterminetechnologicalfeasibility:EPCARequirement Corresponding DOEAnalysesTechnologicalFeasibilityMarketandTechnologyAssessmentScreeningAnalysisEngineeringAnalysis16RulemakingProcessOverviewEPCAFactor CorrespondingDOEAnalyses1.Economicimpactonconsumersandmanufacturers•Life‐cyclecostanalysis•Manufacturerimpactanalysis2.Lifetimeoperatingcostsavings•Life‐cyclecostanalysis3.Totalprojectedenergysavings•Nationalimpactanalysis4.Impactonutilityorperformance•Engineeringanalysis•Screeninganalysis5.Impactofanylesseningofcompetition•Manufacturerimpactanalysis6.Needfornationalenergyconservation•Nationalimpactanalysis7.OtherfactorstheSecretaryconsidersrelevant•Emissionsanalysis•Emissionsmonetizationanalysis•Utility,employment,andregulatoryimpactanalysesEPCAdirectsDOEtoconsidersevenfactorstodeterminewhetherneworamendedstandardsareeconomicallyjustified.(42U.S.C6295(o)(2)(B)(i))17NOPR Rulemaking StageMarket &TechnologyScreeningAnalysisEngineeringAnalysisMarkupsAnalysisEnergy UseAnalysisManufacturerImpactAnalysisConsumerSubgroupAnalysisEmissionsAnalysisUtilityImpactAnalysisEmploymentImpactAnalysisRegulatoryImpactAnalysisEmissionsMonetizationAnalysisNationalImpactAnalysisShipmentsAnalysisLife-CycleCost andPaybackPeriod AnalysisFrameworkDocumentFinalRulePreliminaryAnalysisNOPR18PublicMeetingTopics1RegulatoryHistory,TestProcedures,andOverview2ProposedStandards3MarketandTechnologyAssessmentandScreening4EngineeringAnalysis5MarkupsandEnergyUseAnalysis6Life‐CycleCostandPaybackPeriodAnalysis7ShipmentsandNationalImpactAnalysis8ManufacturerImpactAnalysis9AdditionalNOPRAnalysesandClosingRemarks19ProposedStandardsTheproposedstandardsarebasedoncapacity(forportabledehumidifiers),casevolume(forwhole‐homedehumidifiers),andintegratedenergyfactor(IEF)asmeasuredbytheAppendixX1establishedbythe2015TestProcedureFinalRule.TrialStandardLevel(TSL)ProductClass(PC)1 PC2PC3 PC4 PC5Portable≤30.00pints/dayPortable30.01– 45.00pints/dayPortable>45.00pints/dayWhole‐Home≤8.0ft3Whole‐Home>8.0ft3ELIEF(L/kWh) EL IEF(L/kWh) EL IEF(L/kWh) EL IEF(L/kWh) EL IEF(L/kWh)‐‐00.77 0 0.94 0 2.07 0 1.77 0 2.41111.10 1 1.20 1 2.40 1 2.09 1 2.70221.20 2 1.40 2 2.80 1 2.09 2 3.52331.30 3 1.60 2 2.80 1 2.09 2 3.52441.57 41.80 3 3.66 2 2.53 3 4.5020ProposedStandardsThetablebelowpresentstheestimatedannualenergyusevaluesassociatedwithproductsattheanalyzedefficiencylevelsforeachproductclasspresentedonthepreviousslide.TrialStandardLevel(TSL)ProductClass(PC)1PC2 PC3 PC4 PC5Portable≤30.00pints/dayPortable30.01– 45.00pints/dayPortable>45.00pints/dayWhole‐Home≤8.0ft3Whole‐Home>8.0ft3ELAEU(kWh/year)ELAEU(kWh/year)ELAEU(kWh/year)ELAEU(kWh/year)ELAEU(kWh/year)‐‐0 720 0 1,030 0 905 0 951 0 1,13711 505 1 808 1 781 1 809 1 1,01622 463 2 693 2 670 1 809 2 78433 428 3 607 2 670 1 809 2 78444 355 4540 3 513 2 671 3 61721RationaleforAdoptingtheProposedStandardTSL Benefits Burdens3•0.32quadsofenergysavedfrom2019–2048•Netbenefitsof$1.04billioninNPVat7%discountrateand$2.27billionat3%discountrate•Emissionreductions:‐19.3 MMtCO2valuedatupto$1.9billion‐28.8 ktofNOXvaluedatupto$0.10 billion•Forallproductclasses,theaverageLCCsavingsarepositive,ranging from$64to$416•Thepaybackperiodrangesfrom0.2yearsto2.8yeardependinguponproductclass•NetdecreaseinINPVbyasmuchas18.7%($34.9million)fortheresidentialdehumidifierindustry22PublicMeetingTopics1RegulatoryHistory,TestProcedures,andOverview2ProposedStandards3MarketandTechnologyAssessmentandScreening4EngineeringAnalysis5MarkupsandEnergyUseAnalysis6Life‐CycleCostandPaybackPeriodAnalysis7ShipmentsandNationalImpactAnalysis8ManufacturerImpactAnalysis9AdditionalNOPRAnalysesandClosingRemarks23NOPR Rulemaking StageMarket &TechnologyScreeningAnalysisEngineeringAnalysisMarkupsAnalysisEnergy UseAnalysisManufacturerImpactAnalysisConsumerSubgroupAnalysisEmissionsAnalysisUtilityImpactAnalysisEmploymentImpactAnalysisRegulatoryImpactAnalysisEmissionsMonetizationAnalysisNationalImpactAnalysisShipmentsAnalysisLife-CycleCost andPaybackPeriod AnalysisFrameworkDocumentFinalRulePreliminaryAnalysisNOPR24MarketandTechnologyAssessmentPurpose•Defineproductclasses•Characterizetheresidential dehumidifierindustry•Identifyexistingregulatoryandvoluntaryefficiencyprograms•Gatherhistoricalshipmentsandotherrelevantmarketdata•IdentifytechnologyoptionsforimprovingefficiencySeechapter3oftheTSDforfurtherdiscussionofthemarketandtechnologyassessment.25MarketandTechnologyAssessmentProductClasses•Duetosimilaritiesinconstructionandtrendsobservedinperformance,DOEcombinedfouroftheportabledehumidifierproductclassesconsideredinthepreliminaryanalysisintotwoproductclasses.•Theproposedstandardswouldapplytothefollowingproductclassesforresidentialdehumidifiers:PortableProductClassesCapacity(pints/day)30.00orless30.01to45.0045.01 ormoreWhole‐HomeProductClassesCaseVolume(cubicfeet)8.0orlessMorethan8.026RequestforCommentItem1: DOErequestscommentontheproposedproductclassesforresidentialdehumidifiers:(1)portable,30.00pints/dayorless;(2)portable,30.01to45.00pints/day;(3)portable,45.01ormorepints/day;(4)whole‐home,casevolume8.0cubicfeetorless;and(5)whole‐home,casevolumemorethan8.0cubicfeet.MarketandTechnologyAssessment27MarketandTechnologyAssessmentTechnologyAssessment•Purpose–Todevelopapreliminarylistoftechnologyoptionsthatcouldimprovetheefficiencyofdehumidifiers.–Toexaminethelistingreaterdetail,includingremovinginappropriatetechnologies,insubsequentanalyses.•Method–DOEidentifiedtechnologyoptionsfrom:•Technicalsupportdocumentsfrompreviousrulemakings•Literaturereviewandmanufacturerspecificationsheets•Productteardowns•ThefulllistoftechnologiesthatDOEidentifiedcanbefoundinChapter3oftheTSD.28NOPR Rulemaking StageMarket &TechnologyScreeningAnalysisEngineeringAnalysisMarkupsAnalysisEnergy UseAnalysisManufacturerImpactAnalysisConsumerSubgroupAnalysisEmissionsAnalysisUtilityImpactAnalysisEmploymentImpactAnalysisRegulatoryImpactAnalysisEmissionsMonetizationAnalysisNationalImpactAnalysisShipmentsAnalysisLife-CycleCost andPaybackPeriod AnalysisFrameworkDocumentFinalRulePreliminaryAnalysisNOPR29ScreeningAnalysis•Purpose–Todeterminewhichtechnologyoptionswillbeconsideredindownstreamanalyses.•Technologyoptionsare“screenedout”ifthey:–Arenottechnologicallyfeasible–Arenotpracticabletomanufacture,install,andservice–Haveadverseimpactsonequipmentutilityoravailabilitytoconsumers–Haveadverseimpactsonhealthorsafety•Screened‐OutTechnologies:–Forportabledehumidifierswithcapacityupto45.00pints/day•Pre‐coolingair‐to‐airheatexchangers•Heatpipes–Notechnologyoptionsscreenedoutforotherproductclasses.•Theremainingtechnologyoptionswereconsideredintheengineeringanalysis.30PublicMeetingTopics1RegulatoryHistory,TestProcedures,andOverview2ProposedStandards3MarketandTechnologyAssessmentandScreening4EngineeringAnalysis5MarkupsandEnergyUseAnalysis6Life‐CycleCostandPaybackPeriodAnalysis7ShipmentsandNationalImpactAnalysis8ManufacturerImpactAnalysis9AdditionalNOPRAnalysesandClosingRemarks31NOPR Rulemaking StageMarket &TechnologyScreeningAnalysisEngineeringAnalysisMarkupsAnalysisEnergy UseAnalysisManufacturerImpactAnalysisConsumerSubgroupAnalysisEmissionsAnalysisUtilityImpactAnalysisEmploymentImpactAnalysisRegulatoryImpactAnalysisEmissionsMonetizationAnalysisNationalImpactAnalysisShipmentsAnalysisLife-CycleCost andPaybackPeriod AnalysisFrameworkDocumentFinalRulePreliminaryAnalysisNOPR32EngineeringAnalysisPurpose•Evaluatedesignoptionsthatimproveefficiency•Characterizemanufacturerproductioncost(MPC)versusefficiencyforhigher‐efficiencydehumidifiers.DownstreamAnalysis• Life‐CycleCostandPaybackPeriodAnalysis• NationalImpactAnalysis• ManufacturerImpactAnalysisManufacturerProductionCost–EfficiencyRelationship

Manufacturer Production CostEfficiencyLevel33EngineeringAnalysisProcessTheengineeringanalysisfordehumidifierswasconductedasfollows:1.SelectTestSampleChoosemarketrepresentativeunitsfortesting.2.ProductTestingConducttestingaccordingtotheDOEtestprocedureinAppendixX13.EfficiencyLevelsDetermineappropriatebaselineandimprovedefficiencylevels4.TeardownPerformteardownstodetermineproductdesignsandmanufacturingcosts.5.NumericalModelUseanumericalmodeltoestimateperformanceandassociateddesignsbeyondtheteardownsample.6.Cost‐EfficiencyCurvesDeterminecost‐efficiencyrelationships.34ProductSelectionandTesting•DOEusedthesametestsamplefromthepreliminaryanalysisfortheNOPRanalysis.•24portableunits(<45pints/day)•13high‐capacityportable(>45pints/day)andrefrigerant‐onlywhole‐homeunits•2refrigerant‐desiccantwhole‐homeunitsfortesting.•20ofthe24portableunitsandallhigh‐capacityandwhole‐homeunitsweretestedatthereducedambienttemperature(65°F)proposedintheMay2014TestProcedureNOPR.•Forportableunits,thesetestresultsarerepresentativeofthoseobtainedfromthenewAppendixX1testprocedure.•Forwhole‐home units,resultswereadjustedtoreflectthedifferentambientdry‐bulbtemperature(73°F)andESP(0.20in.w.c.)inAppendixX1ascomparedtotheMay2014proposal.35BaselineEfficiencyLevels•Whereportableproductclasseswerecombined,DOEselectedthelowerofthetwobaselineIEFlevelsthatwereconsideredinthepreliminaryanalysis.•DOEmodifiedthewhole‐homebaselineefficiencylevelsfromthoseanalyzedinthepreliminaryanalysisduetotheadjustedtemperatureandESPinAppendixX1.ProductClass(Capacity)IEF(L/kWh)30.00pints/dayorless 0.7730.01– 45.00pints/day 0.9445.01pints/dayormore 2.07ProductClass(CaseVolume)IEF(L/kWh)8.0ft3orless 1.77Morethan8.0ft32.4136IncrementalEfficiencyLevels– PortableEfficiencyLevelEfficiencyLevelSourceIEFEfficiencyLevels(L/kWh)30.00pints/dayorless30.01–45.00pints/day45.01pints/dayormoreBaseline Baselinewithfan‐onlyoperation 0.77 0.94 2.071 Baselinewithnofan‐onlyoperation 1.10 1.2 2.402 GapFill1 1.20 1.4 2.803 GapFill2/Max‐Tech 1.30 1.6 3.664 Max‐Tech 1.57 1.8 N/A•DOErevisedthemax‐techefficiencylevelsfromthepreliminaryanalysistoincorporateadditionaldesignoptionsbeyondthoseobservedinitstestsample.•Forthecombinedportableproductclasses,theintermediateefficiencylevelsfromthepreliminaryanalysisweregenerallyconsistent.37IncrementalEfficiencyLevels– Whole‐Home•DOErevisedtheefficiencylevelstoaccountforthehigherambienttemperature(73°F)andreducedESP(0.20in.w.c.)comparedtothepreliminaryanalysis.•DOEfurtherrevisedthemax‐techefficiencylevelsfromthepreliminaryanalysistoincorporateadditionaldesignoptionsbeyondthoseobservedinitstestsample.EfficiencyLevel EfficiencyLevelSourceIEFEfficiencyLevels(L/kWh)8.0ft3orless(CaseVolume)Morethan8.0ft3(CaseVolume)Baseline MinimumAvailable 1.77 2.411 GapFill1 2.09 2.702 GapFill2/Max‐Tech 2.53 3.523 Max‐Tech N/A 4.5038RequestforCommentItem2: DOErequestsfeedbackontheefficiencylevelsconsideredforthisanalysis.DOEspecificallyseeksinformationfrominterestedpartiesonwhethertherevisedmax‐techlevels,whichincorporatesavingsassociatedwithpermanent‐magnetfanmotors,aretechnologicallyfeasible,andonwhethertheupdatedwhole‐homedehumidifierefficiencylevels,whichaccountfortheupdatedtestconditions,areappropriate.DOEalsoseekscommentonpotentialutilityimpactsatanyoftheanalyzedefficiencylevels.EfficiencyLevels39ProductTeardowns• DOEcalculatedMPCsbydisassemblingdehumidifiersfrommultiplemanufacturersandcreatingbillsofmaterials(BOMs).• BOMsdescribetheproductcomponentsindetailandincludeestimatesofmaterials,labor,capitalequipment,andoverheadcosts.•Chapter5oftheTSDprovidesadditionaldetailsonDOE’steardownandcostmodelmethodology.40EngineeringAnalysisManufacturingCostModelRawMaterialsFinishedMaterialsPurchasedPartsPhysicalTeardownSelectionofUnitsFabricationProcessesBillofMaterialsAssemblyProcessesManufacturingCost•Physicalteardownanalysisconductedwithrepresentativeproducts.•Billsofmaterialweregeneratedduringtheproductteardownsandwereenteredintothecostmodel.•Costmodelgeneratedmanufacturing,material,labor,andoverheadcosts.41EngineeringAnalysisStructure/Classification of Manufacturing CostsFullManufacturerSellingPrice(MSP)Non‐ProductionCost**SellingGeneral&Admin.R&DInterestFullManufacturingProductionCost(MPC)*DirectLaborDirectMaterialOverheadFullManufacturingProductionCost(MPC)*DirectLaborDirectMaterialOverheadIndirectlaborIndirectmaterialMaintenanceDepreciationTaxesInsurancerelatedtoassetsMarketresearchAdvertisingPOSpromotionSalespersoncompensation&travelLogistics‐Warehousing‐Delivery‐RecordkeepingCostsofservice&staffunitsGeneralcorporatecosts–comp.,etc.CostsassociatedwitheffortstofindneworimprovedequipmentorproductionprocessesCostsofborrowingfunds*TaxReform Actof1986essentiallyrequirescompaniestomeasurecostofgoodssoldasthefullproductioncostofthegoodssold.**Inacompany’sincomestatement,manyofthesecostsarereportedasalumpsum,underSG&Aexpenses.42ProductTeardowns• Becausethepreliminaryanalysistestunitsspannedarangeofcapacitiesandefficienciesfrommultiplemanufacturers,DOEdidnotconductfurtherteardownsfortheNOPR.• Asconcludedforthepreliminaryanalysis,DOEobservedthatthreedesignoptionsareusedtoincreasedehumidifierefficiencyineachoftheproductclassesforproductsavailableonthemarket.–Increasingcompressorefficiency–Improvingcondenserandevaporatorperformance–Incorporatingapre‐coolingair‐to‐airheatexchanger• DOEdidnotspecificallyconsidertheremainingdesignoptionsthatmetthescreeningcriteriaforvariousreasonsdescribedinChapter5oftheTSD.43NumericalModel• Tosupplementthedatapointsintheteardownsampletocovertheentirerangeofpotentialcapacitiesandefficiencies,DOEusedanumericalmodeltoestimatethedesignchangesnecessarytoreachdifferentefficiencylevelsandcapacities.–ThenumericalmodelisbasedontheMarkNprogramdevelopedforuseinthemostrecentroomairconditionersdirectfinalrule(April21,2011).–DOEmodifiedtheroomairconditionerprogramtosetthecondenserinletairconditions(typicallyoutdoorairforroomairconditioners)equaltotheevaporatoroutletairconditions(typicallytheindoorreturnairforairconditioners).–DOEfirstincreasedcompressorefficiencies,thenincreasedheatexchangersizestoestimatethechangesnecessarytoreachhigherIEFs.•DOEalsoestimatedtheimprovementsassociatedwithhigherfanmotorefficienciesforproductsatthemax‐techefficiencylevel.44Cost‐EfficiencyRelationships• Usingactualteardownsandestimatedmanufacturingcostsformodeledunits,DOEcreatedcost‐efficiencycurvesforeachmajormanufacturer.• DOEcombinedmanufacturercurvesbasedonestimatedmarketsharetodevelopaweighted‐averagecost‐efficiencycurveforeachproductclass.WeightedAverage

$MPCEfficiencyLevelManufacturerCurves

$MPCEfficiencyLevelManuf. #1Manuf. #2Manuf. #345Cost‐EfficiencyRelationshipsIncrementalManufacturerProductionCostEstimates• Costsupdatedto2013dollars.• $0incrementalcostfrombaselinetoEL1forportableproductclasses≤45pints/dayrepresentstheeliminationoffan‐onlyoperation.1• Forcombinedportableproductclasses,costswereaveragedusingmarketweighting.• EL4costsincreasedduetoaddedtechnologyoptions.EfficiencyLevelPortableCapacity (pints/day) Whole‐HomeCaseVolume(ft3)≤30.00 30.01‐45.00 >45.00≤8.0 >8.0EL1 $‐$‐$42.81 $15.30 $6.20EL2$1.69 $2.39$53.66$129.22 $37.20EL3$4.27 $8.07$120.33N/A $161.39EL4$19.38 $22.42N/A N/A N/A1Note,DOEdidnotobservefan‐onlymodeoperationforportableunits>45.00pints/dayorwhole‐homedehumidifiers.46RequestforCommentItem3: DOErequestscommentonthedeterminationthatmanufacturerswouldlikelyrelyonimprovedcompressorefficiencyandincreasedheatexchangersizestoachieveefficienciesbelowthemax‐techlevel,andmayincorporatepermanent‐magnetmotorstofurtherimproveefficiency.DOEalsorequestsfeedbackontheincrementalmanufacturerproductioncostsDOEestimatedateachefficiencylevel.EngineeringAnalysis47PublicMeetingTopics1RegulatoryHistory,TestProcedures,andOverview2ProposedStandards3MarketandTechnologyAssessmentandScreening4EngineeringAnalysis5MarkupsandEnergyUseAnalysis6Life‐CycleCostandPaybackPeriodAnalysis7ShipmentsandNationalImpactAnalysis8ManufacturerImpactAnalysis9AdditionalNOPRAnalysesandClosingRemarks48NOPR Rulemaking StageMarket &TechnologyScreeningAnalysisEngineeringAnalysisMarkupsAnalysisEnergy UseAnalysisManufacturerImpactAnalysisConsumerSubgroupAnalysisEmissionsAnalysisUtilityImpactAnalysisEmploymentImpactAnalysisRegulatoryImpactAnalysisEmissionsMonetizationAnalysisNationalImpactAnalysisShipmentsAnalysisLife-CycleCost andPaybackPeriod AnalysisFrameworkDocumentFinalRulePreliminaryAnalysisNOPR49MarkupsAnalysisTotalInstalledCostPaybackPeriodLifetimeOperatingExpenseLife‐CycleCostEnergyConsumptionElectricityPricesAnnualEnergyExpenseRepairCostsMaintenanceCostsElectricityPriceTrendAnnualOperatingExpenseLifetimeDiscountRatesCustomerPriceInstallationCostDataInputsIntermediateAnalysisOutputResultsFromEngineeringAnalysisDistributorMarkupContractorMarkupSalesTaxMarkupFromMarkupsAnalysisBaselineMSPStd‐levelMSPFromEngineeringAnalysisPriceisafunctionofefficiencyFromEnergyUseAnalysis5050•Purpose–Determinecustomerpricesunderastandardsscenariobasedonmanufacturercosts.–Characterizeproductdistributionchannelsandmarketsegments.–Describedehumidifierretailerdirectcosts,expenses,andprofits•Output–Manufacturermarkupsandbaselineandincrementalmarkupsforbothportableandwhole‐homedehumidifiers.Markups AnalysisMarkupsAnalysisOverview51MarkupsAnalysis•ManufacturerMarkups–DOEused10‐Kreportsofdehumidifiermanufacturingcompaniesfrom2008to2012.–DOEassumedbaselinedehumidifierunitshavethesamemarkupasmoreefficientunits.–DOEassumedwhole‐homemanufacturershavethesamemarkupasportablemanufacturingcompanies.Themarkupaccountsforthetwo‐stepsourcingstructureofthelower‐capacityportablesegment,inadditiontothetraditionalone‐stepstructureofthewhole‐homesegment.•RetailMarkupsforPortableDehumidifiers–DOEusedU.S.CensusBureauBusinessExpensesSurveyfor“HouseholdApplianceStores”•DistributorMarkupsforWhole‐homeDehumidifiers–DOEused2012EconomicCensusindustrialcostdata.–DOEderivedthebaselineandincrementalmarkupsforbothreplacementandfirsttimeownermarkets.52MarkupsAnalysisMarkupsAnalysis•BaselineMarkups–Markupsrelateconsumerpricetocostofgoodssold(CGS).–Baselinemarkupsrelatepricetocostpriortoachangeinefficiency.–Baselinemarkupsindicateaconsumerpricethatcoversallofadistributor’sorcontractor’sexpensesplusprofit.•IncrementalMarkups–IncrementalmarkupsrelatetheincrementalchangeinconsumerpricetotheincrementalchangeinCGS.–Certaincosts,suchasdirectlaborcosts(salaries,payroll,rentalandoccupancy),donotvarywithefficiencyinducedchangesinCGSandremainconstantinthecalculationofincrementalmarkups.–IncrementalmarkupscoveronlyexpensesthatvarywithCGSinthiscase,expensesthatincreaseduetoanincreaseinproductefficiency.Markup Types53MarkupsAnalysis•DOEappliesmarkupstoproductMSPtodeterminethecustomerpurchasepriceofanalyzedproducts.•DOEusedbaselineandincrementalmarkups,appliedtotheMSPinthebasecase,andtheincrementaldifferenceinMSPineachstandardscaseforportableandwhole‐homedehumidifiers.Markup Baseline IncrementalManufacturer 1.45Retailer 1.39 1.13SalesTax 1.071Overall 2.16 1.75Markup Replacement FirstTimeOwnerBaseline Incremental Baseline IncrementalManufacturer 1.45 1.45Wholesaler 1.35 1.10 1.35 1.10MechanicalContractor1.53 1.22 1.45 1.15GeneralContractor‐‐1.47 1.34SalesTax 1.071‐‐Overall 3.21 2.08 4.17 2.46PortableDehumidifiersWhole‐HomeDehumidifiers54NOPR Rulemaking StageMarket &TechnologyScreeningAnalysisEngineeringAnalysisMarkupsAnalysisEnergy UseAnalysisManufacturerImpactAnalysisConsumerSubgroupAnalysisEmissionsAnalysisUtilityImpactAnalysisEmploymentImpactAnalysisRegulatoryImpactAnalysisEmissionsMonetizationAnalysisNationalImpactAnalysisShipmentsAnalysisLife-CycleCost andPaybackPeriod AnalysisFrameworkDocumentFinalRulePreliminaryAnalysisNOPR55EnergyUseAnalysisTotalInstalledCostPaybackPeriodLifetimeOperatingExpenseLife‐CycleCostEnergyConsumptionElectricityPricesAnnualEnergyExpenseRepairCostsMaintenanceCostsElectricityPriceTrendAnnualOperatingExpenseLifetimeDiscountRatesCustomerPriceInstallationCostDataInputsIntermediateAnalysisOutputResultsFromEngineeringAnalysisDistributorMarkupContractorMarkupSalesTaxMarkupFromMarkupsAnalysisBaselineMSPStd‐levelMSPFromEngineeringAnalysisPriceisafunctionofefficiencyFromEnergyUseAnalysis56Purpose•Developannualenergyusedataforthelife‐cyclecostandpaybackperiodanalysestocalculateannualoperatingcosts.Method•DevelophouseholdsamplesfromDOE‐EIA’sResidentialEnergyConsumptionSurvey(RECS)forthefiveproductclassestobeanalyzed.•Useresearchstudies,RECSdataalongwithEngineeringAnalysisdatatodevelopannualenergyuseonaper‐householdbasis.EnergyUseAnalysisOverview57EnergyUseAnalysisEnergyUseCalculationFlow58CalculationFlowEnergyUseAnalysis  StbyStbyFanFanDehumENERGYkWXkWXEffXCAPYearofUseTotalHoursDEH24473.0XAnnualOperatingHours(hours/year)AnnualOperatingHours(hours/year)DehumPower(kW)XDehumMode(%)FanPower(kW)XFanMode(%)SBPower(kW)XSBMode(%)++AnnualEnergyUse59EnergyUseAnalysis

PortableStudy/Source DehumidificationModeOperatingHoursAverageHours/YearADL(1998)AHAM(2005)ENERGYSTAR(2006)ENERGYSTARcalculatorTheCadmusGroup(2012)1,6201,0951,6202,8512,160Willem(2013a) CCBCCDDNCCBNCCDD1,1361,0781,2671,785

Whole

‐ HomeWillem(2013b) Whole‐home 2,542CCB=Climatecontrolledspace,bucketforcondensateCCDD=Climatecontrolledspace,directdrainforcondensateNCCB=Non‐climatecontrolledspace,bucketforcondensateNCCDD=Non‐climatecontrolledspace,directdrainforcondensateEnergyUseInputs:LiteratureReviewofOperatingHoursDOEaugmentedRECShouseholddatawithdatafromtheresearchstudiesandcomparedtheresearchfindingswithestimatesusedinthepreviousstandardsrulemakingin2006toestimateannualhoursandarangeofannualenergyusevalues.Source:AHAM2006,ENERGYSTAR2006,TheCadmusGroup2012,Willemetal.,2013a,2013b.60EnergyUseAnalysisPortable Whole‐Home≤30.00Pints/Day30.01–45.00Pints/Day>45.00Pints/Day≤8.0ft3CaseVolume>8.0ft3CaseVolumeAverageCapacity21 38 73 56 92AverageCapacity(pints/day)forDehumidifierProductClassesEfficiencyLevelPortable Whole‐Home≤30.00Pints/Day30.01–45.00Pints/Day>45.00Pints/Day≤8.0ft3CaseVolume>8.0ft3CaseVolumeBaseline 0.77 0.94 2.07 1.77 2.411 1.10 1.20 2.40 2.09 2.702 1.20 1.40 2.80 2.53 3.523 1.30 1.60 3.66‐4.504 1.57 1.80‐‐‐IntegratedEnergyFactor(L/kWh)forDehumidifierProductClasses61EnergyUseAnalysisModePortable Whole‐Home≤30.00Pints/Day30.01–45.00Pints/Day>45.00Pints/Day≤8.0ft3CaseVolume>8.0ft3CaseVolumeDehumidification35% 35% 35% 50% 50%Fan‐only6% 6% 6% 0.2% 0.2%Standby58% 58% 58% 49% 49%PercentageofOperatingHoursbyModePowerDemandforFanandStandbyModesModePortable(W) Whole‐Home(W)Min Median Max Min Median MaxFan‐only 21.4 51.2 80.9 50.2 141.7 497.0Standby 0.3 1.0 12.3 1.0 4.5 49.5Source:Willemetal.,2013a,2013b.Source:Willemetal.,2013a,2013b.62RequestforCommentItem4: DOErequestscommentsandinformationrelatingtotheinputstotheenergyusedeterminationforresidentialportableandwhole‐homedehumidifiers,specificallythefractionofoperatinghoursandpowerdemandbyeachmode.EnergyUseAnalysis63PublicMeetingTopics1RegulatoryHistory,TestProcedures,andOverview2ProposedStandards3MarketandTechnologyAssessmentandScreening4EngineeringAnalysis5MarkupsandEnergyUseAnalysis6Life‐CycleCostandPaybackPeriodAnalysis7ShipmentsandNationalImpactAnalysis8ManufacturerImpactAnalysis9AdditionalNOPRAnalysesandClosingRemarks64NOPR Rulemaking StageMarket &TechnologyScreeningAnalysisEngineeringAnalysisMarkupsAnalysisEnergy UseAnalysisManufacturerImpactAnalysisConsumerSubgroupAnalysisEmissionsAnalysisUtilityImpactAnalysisEmploymentImpactAnalysisRegulatoryImpactAnalysisEmissionsMonetizationAnalysisNationalImpactAnalysisShipmentsAnalysisLife-CycleCost andPaybackPeriod AnalysisFrameworkDocumentFinalRulePreliminaryAnalysisNOPR65TotalInstalledCostPaybackPeriodLifetimeOperatingExpenseLife‐CycleCostEnergyConsumptionElectricityPricesAnnualEnergyExpenseRepairCostsMaintenanceCostsElectricityPriceTrendAnnualOperatingExpenseLifetimeDiscountRatesCustomerPriceInstallationCostDataInputsIntermediateAnalysisOutputResultsFromEngineeringAnalysisDistributorMarkupContractorMarkupSalesTaxMarkupFromMarkupsAnalysisBaselineMSPStd‐levelMSPFromEngineeringAnalysisPriceisafunctionofefficiencyFromEnergyUseAnalysisLife‐CycleCostandPaybackPeriodAnalysis66Life‐CycleCost(LCC)andPaybackPeriod(PBP)AnalysisPurpose•AssessthenetLCCandPBPfordifferentefficiencylevelscomparedtobaseline.•LCCequalsconsumerpriceplusthesumofannualoperatingcostsdiscountedtoaparticularbaseyear.•Economicevaluationperformedfromtheconsumerperspective.•ResultsexpressedasLCCdifference(baselineminusefficiencystandardlevel).•Simplepaybackequalstheincrementalfirstcostdividedbytheoperatingcostsavingsfor1year.Life‐CycleCostandPaybackPeriodAnalysis67Method•MonteCarlosimulationanalysisused.‒Characterizethevariabilityanduncertaintyassociatedwiththeinputsusingprobabilitydistributions.‒RECShouseholdsamplesusedtocharacterizethevariabilityinannualenergyuseandenergyprices.‒Probabilitydistributionsusedtocharacterizetheuncertaintyinotheroperatingcostinputs(e.g.,discountrates,productlifetimes)andmanufacturingcosts.•OneLCCandPBPanalysisresultperproductclass.‒AnalysisconductedforeachproposedproductclassanalyzedindetailintheEngineeringAnalysis.•Basecaseefficiencydistributionsdevelopedtoavoidoverstatingthebenefitsfromincreasingproductefficiency.Life‐CycleCostandPaybackPeriodAnalysis68TotalInstalledCost•TotalInstalledCost=RetailPrice+InstallationCost•EquipmentRetailPrice=ManufacturingCostxMarkupxSalesTax‒Manufacturingcostvs.efficiencyrelationshipsdevelopedintheEngineeringAnalysis‒MarkupsandSalesTaxesdevelopedintheMarkupstoDetermineEquipmentPriceanalysis•Installationcostsrepresentthelaborandmaterialsnecessarytoinstalltheappliance‒DOEdidnotconsiderorcalculateinstallationcostsforportabledehumidifiers‒Whole‐homedehumidifierinstallationcostsdonotvarywithefficiencyLife‐CycleCostandPaybackPeriodAnalysis69LifetimeOperatingCost•LifetimeOperatingCost=f(annualoperatingcost,lifetime,discountrate,electricitypricetrend)•AnnualOperatingCost=AnnualEnergyCost+RepairCost+Maint.Cost•AnnualEnergyCost=f(energyuse,electricityprices)‒EnergyusebymodedevelopedintheEnergyUseAnalysis‒FrequencyofusebymodedevelopedintheEnergyUseAnalysis‒ElectricitypricesdevelopedfromDOEEnergyInformationAdministration(EIA)Form861Life‐CycleCostandPaybackPeriodAnalysis70OperatingCostInputs:ElectricityPrices•Electricitypricesareusedtoconvertenergyusetoenergycosts.•DOEdevelopedelectricitypricesfromEIAForm861data.•DOEusedtheDOE‐EIAAnnualEnergyOutlook(AEO)forprojectionsoffutureaverageenergyprices(reference,high,andlowscenarios).Life‐CycleCostandPaybackPeriodAnalysis71OperatingCostInputs:ElectricityPriceTrends•DOEusedtheAEOforprojectionsoffutureaverageenergyprices(reference,high,andlowscenarios).Life‐CycleCostandPaybackPeriodAnalysis72OperatingCostInputs:AverageResidentialElectricityPricesLife‐CycleCostandPaybackPeriodAnalysis73OperatingCostInputs:MaintenanceandRepairCosts•DOEbasesrepaircostsonannualizedcostsofkeycomponentsandfrequencyofreplacementinthefield.•Typically,smallincrementalchangesinproductefficiencyincurlittleornochangesinrepairandmaintenancecostsoverbaselineproducts.•DOEdidnotincludemaintenanceandrepaircostsdifferencesbasedonefficiencylevel.Life‐CycleCostandPaybackPeriodAnalysis74OperatingCostInputs:ProductLifetimes•DOEusedinformationfromavailableliteraturesourcestoestablishspecificresidential dehumidifierlifetimes.•Averagelifetimeforportabledehumidifiers:11years•Averagelifetimeforwhole‐homedehumidifiers:19years0%10%20%30%40%50%60%70%80%90%100%LifetimeDist.forPortableDehumidifiers%ofRetiring%ofSurviving0%10%20%30%40%50%60%70%80%90%100%LifetimeDist.forWhole‐homeDehumidifiers%ofRetiring%ofSurvivingLife‐CycleCostandPaybackPeriodAnalysis75OperatingCostInputs:DiscountRates•DiscountratesareusedtoconvertstreamsofannualoperatingexpensestopresentvalueintheLCCanalysis.•DOEusedasimilarapproachasforotherresidentialproductstandardsrulemakings.‒Derivedfromestimatesofthe“financecost”topurchaseresidentialproducts.‒Financecostbasedon:•Financialcostofanydebtincurredtopurchaseproducts(e.g.,creditcards,homeequityloans)•Opportunitycostofanyequitytopurchaseproducts(e.g.,stocks,bonds,savingsaccounts)‒FederalReserveBoard’sSurveyofConsumerFinancesisasourceofmuchoftheequityanddebtdata.Life‐CycleCostandPaybackPeriodAnalysis76OperatingCostInputs:EnergyEfficiencyintheBaseCase•Shareofconsumersaffectedbyparticularefficiencylevelcapturedbyprojecteddistributionsofproductefficienciesinfirstcomplianceyearunderbasecase.•Whenmarketshareswerenotavailable,DOEbasedefficiencydistributionsonavailablemodelsasaproxyfor2019.Life‐CycleCostandPaybackPeriodAnalysisEfficiencyLevel≤30.00Pints/Day30.01–45.00Pints/Day>45.00Pints/Day≤8.0ft3CaseVolume>8.0ft3CaseVolumeMarket Share(%)Baseline 11 0 5775 311 23 0 2025 462 0 94 230 233 66 2 0‐040 4‐‐ ‐77RequestforCommentItem5: DOErequestscomments,informationanddataonthebasecaseefficiencydistributionforeachproductclass.Life‐CycleCostandPaybackPeriodAnalysis78LCCResults:ExamplefromtheLCCAnalysisLife‐CycleCostandPaybackPeriodAnalysis79Results:RangeofLCCSavingsforPortableDehumidifiersLife‐CycleCostandPaybackPeriodAnalysis80Results:RangeofLCCSavingsforWhole‐HomeDehumidifiersLife‐CycleCostandPaybackPeriodAnalysis81RequestforCommentItem6: DOEinvitescommentsandrecommendationsfrominterestedpartiesonanyotheraspectsrelatedtotheLife‐CycleCostandPaybackPeriodAnalysis.Life‐CycleCostandPaybackPeriodAnalysis82PublicMeetingTopics1RegulatoryHistory,TestProcedures,andOverview2ProposedStandards3MarketandTechnologyAssessmentandScreening4EngineeringAnalysis5MarkupsandEnergyUseAnalysis6Life‐CycleCostandPaybackPeriodAnalysis7ShipmentsandNationalImpactAnalysis8ManufacturerImpactAnalysis9AdditionalNOPRAnalysesandClosingRemarks83NOPR Rulemaking StageMarket &TechnologyScreeningAnalysisEngineeringAnalysisMarkupsAnalysisEnergy UseAnalysisManufacturerImpactAnalysisConsumerSubgroupAnalysisEmissionsAnalysisUtilityImpactAnalysisEmploymentImpactAnalysisRegulatoryImpactAnalysisEmissionsMonetizationAnalysisNationalImpactAnalysisShipmentsAnalysisLife-CycleCost andPaybackPeriod AnalysisFrameworkDocumentFinalRulePreliminaryAnalysisNOPR84•Purpose‒Quantifychangesovertimeinproductshipmentsduetopotentialnewenergyefficiencystandards.‒Estimatethedisaggregationofshipmentsintoproductclasses,andhowtheshipmentsbyproductclasschangeovertime.•Method‒Theshipmentsmodelreliesonarangeofdatasources.‒Themodelaccountsforreplacementsandfirsttimeowners.ShipmentsAnalysis85HistoricalShipments&MarketSharebyProductClassApplianceLifetimeTotalShipmentsReplacementShipmentsShipmentsbyProductClassFirst‐TimeOwnersShipmentsAnalysis:ModelingApproach86ShipmentsAnalysis:ModelInputsInput DataSource/DescriptionHistoricalShipments(1972–2011)Totaldehumidifier shipmentsdata:‐AHAMdatasubmittal(1999–2011,1995–1998),‐AHAMFactbook2000(1989–1994),‐ApplianceMagazine1982,1990and1993(1972–1988)ShipmentsbyProductClass Market sharebyproductclassdevelopedbasedonthepreliminaryanalysisphaseofthestandardsrulemakingReplacement Portable andwhole‐homedehumidifierslifetimeretirementfunctiondevelopedfromLife‐CycleCostAnalysis‐Averagelifetimeforportabledehumidifiers=11years‐Averagelifetimeforwhole‐homedehumidifiers=19yearsFirst‐Time Owners First‐time ownersestimatedusingAEO2015housingprojection87ShipmentsAnalysis:BaseCasevs.StandardsCase•BaseCaseShipmentsProjection–Capturebase‐caseshipmentsprojectionwhennewstandardsarenotadopted.–Projectshipmentstoaccountforreplacementsandnewinstallation.–Developbase‐caseprojectionsforproductclasses.•StandardsCaseShipmentsProjection–Projectshipmentsforthebasecaseusinghistoricalshipments.–Developstandardscaseprojectionsaccountingforpurchasepriceincreasesandoperatingcostsavings.•Shipmentsaverage2.5millionperyearovertheprojections.88ShipmentsAnalysisItem7: DOErequestscommentsandinformationrelatingtotheinputstotheshipmentsmodel,particularlyhistoricalshipmentsofportableandwhole‐homedehumidifiersandmarketshareofeachproductclass.DOEalsowelcomesstakeholderinputsandestimatesontheeffectofamendedstandardsonfutureresidentialdehumidifiershipments.RequestforComment89NOPR Rulemaking StageMarket &TechnologyScreeningAnalysisEngineeringAnalysisMarkupsAnalysisEnergy UseAnalysisManufacturerImpactAnalysisConsumerSubgroupAnalysisEmissionsAnalysisUtilityImpactAnalysisEmploymentImpactAnalysisRegulatoryImpactAnalysisEmissionsMonetizationAnalysisNationalImpactAnalysisShipmentsAnalysisLife-CycleCost andPaybackPeriod AnalysisFrameworkDocumentFinalRulePreliminaryAnalysisNOPR90NationalImpactAnalysis•Purpose–Determinetheprojectednationalenergysavingsandconsumernationalnetpresentvalue.•Method–Developannualseriesofnationalenergyandeconomicimpacts.–Usetheshipmentsmodeltoestimatethetotalstockofresidentialdehumidifiersinserviceeachyear.–Aggregatethecostsandenergyuseperunitinanygivenyear.–ReportestimatesforeconomicimpactaschangeinconsumerNationalNetPresentValue(NPV)(inconstantyeardollars).–Accountforthetime‐valueofmoneythroughdefineddiscountrates.91NationalImpactAnalysisProcessShipmentsModelNationalEnergySavingsNationalEconomicImpactsLCCAnalysisResults andOther InputsNationalEnergy Savings(Quads)NationalNet Present Value(NPV)(2013 US $, billion)•Nationalenergysavingscalculatedforperiodfrom2019‐2048(30years)•NPVcalculatedforproductsshippedovertheperiodfrom2019– 2048(30yearsofshipments).NationalImpactAnalysis92NationalImpactAnalysis:NationalEnergySavingsBase CaseAnnual EnergyConsumption2048Base CaseAnnual EnergyConsumption2021Base CaseAnnual EnergyConsumption2020Base CaseAnnual EnergyConsumption2019ShipmentsAnalysisStandards-Case ProjectionBase-CaseProjectionBase CaseAnnual EnergyConsumption2048Base CaseAnnual EnergyConsumption2021Base CaseAnnual EnergyConsumption2020Standards CaseAnnual EnergyConsumption2019Base-CaseCumulativeEnergy UseStandards-CaseCumulativeEnergy UseSite to FFCEnergyConversionNational EnergySavings93NationalImpactAnalysis:NetPresentValue94NationalImpactAnalysis:Shipment‐WeightedEfficiencyBase Case≤30.00Pints/Day30.01–45.00Pints/Day>45.00Pints/DayWhole‐HomeDehumidifiers≤8.0ft3CaseVolumeWhole‐HomeDehumidifiers>8.0 ft3CaseVolumeSWIEF(L/kWh)1.20 1.42 2.30 1.85 2.80SWAEU(kWh/yr)477 685 826 916 1,000•Derivedbasecaseefficiencydistributionin2019fromtheLCCanalysis.•Incorporatefutureimprovementsinefficiencyandassumedanannualincreaseinefficiencyof0.25%between2019and2048.•“Rollup”inefficientequipmentbutdonotaffectefficientequipment.95Input DescriptionShipments AnnualbasecaseandstandardscaseshipmentsfromtheShipmentanalysis.TotalInstalledCostAnnualweighted‐average perunitvaluesasafunctionofefficiencyleveltakenfromtheLCCanalysis.AnnualEnergyUseAnnualweighted‐averageperunitvaluesasafunctionofefficiencyleveltakenfromLCCanalysis.Base‐CaseEfficienciesShipments‐weightedefficienciesdeterminedfortheeffectiveyear.Basedonbase‐caseefficiency distributionfromLCCanalysis.Assumes0.25%efficiencyimprovementwithoutstandards.Standards‐CaseForecastedEfficienciesRoll‐upscenarioassumedfordeterminingshipment‐weightedefficiencyforeachstandardscase.EnergyPricesAveragepricesandforecastedenergypricesfromEIAAEO2015 forecasts(to2040)andextrapolationto2048.FullFuelCycle Multiplierfortheprimaryfuel (electricity)usedbydehumidifiers.DiscountRate 7 percentand3percentrealfromOMB’sRegulatoryAnalysisGuidelineA‐4.PresentYear Futureexpensesarediscountedtotheyear2014.NationalImpactAnalysis:Inputs96NationalImpactAnalysis:TrialStandardLevelsTSLPortable Whole‐Home≤30.00pints/day30.01‐45.00pints/day>45.00pints/day≤8.0ft3CaseVolume>8.0ft3CaseVolume11.10 1.20 2.40 2.09 2.7021.20 1.40 2.80 2.09 3.5231.30 1.60 2.80 2.09 3.5241.57 1.80 3.66 2.53 4.5097NationalImpactAnalysis:EnergySavingResultsTSLPrimaryEnergySavings(quads)Full‐Fuel‐CycleEnergySavings(quads)10.07 0.0720.11 0.1130.31 0.3240.75 0.7998NationalImpactAnalysis:ConsumerNPVResultsTSL7% DiscountRate(billion2013$)3% DiscountRate(billion2013$)10.24 0.5020.37 0.7831.04 2.2742.13 4.9699NationalImpactAnalysisItem8: DOErequestscomments,informationanddataonthebase‐caseefficiencydistributionofdehumidifiers.DOEalsorequestscommentsontheassumptionthatannualefficiencyimprovementsof0.25%peryearareappropriateforthebase‐caseanalysis.RequestforComment100PublicMeetingTopics1RegulatoryHistory,TestProcedures,andOverview2ProposedStandards3MarketandTechnologyAssessmentandScreening4EngineeringAnalysis5MarkupsandEnergyUseAnalysis6Life‐CycleCostandPaybackPeriodAnalysis7ShipmentsandNationalImpactAnalysis8ManufacturerImpactAnalysis9AdditionalNOPRAnalysesandClosingRemarks101NOPR Rulemaking StageMarket &TechnologyScreeningAnalysisEngineeringAnalysisMarkupsAnalysisEnergy UseAnalysisManufacturerImpactAnalysisConsumerSubgroupAnalysisEmissionsAnalysisUtilityImpactAnalysisEmploymentImpactAnalysisRegulatoryImpactAnalysisEmissionsMonetizationAnalysisNationalImpactAnalysisShipmentsAnalysisLife-CycleCost andPaybackPeriod AnalysisFrameworkDocumentFinalRulePreliminaryAnalysisNOPR102Purpose:•Assesstheimpactsofpotentialenergyconservationstandardsonmanufacturers,includingsubgroupssuchassmallmanufacturers•Examinethedirectemployment,manufacturingcapacity,andcumulativeregulatoryimpactsontheindustryMethodology:•UseGovernmentRegulatoryImpactModel(GRIM),aindustrydiscountedcashflowmodel–TheprimaryoutputisIndustryNetPresentValue(INPV)–Bycomparingtheno‐standardscaseINVPtothestandardscaseINPV,DOEisabletoestimateimpactstomanufacturers•InterviewmanufacturerstorefineinputstotheGRIM,developsubgroupanalyses,andaddressqualitativeissues.ManufacturerImpactAnalysis103GRIMOverview104•ConsumerConfusion–ConcernsovertheimpactofnewtestconditionsintheDOEdehumidifiertestprocedureonratedcapacity.•Manufacturersexpressedthattheonlywaytoavoidconfusioniswithapotentiallylargeinvestmenttoredesignproductsinordertomaintainthesameratedcapacities.•ImpactsonConsumerUtility–Increasedproductefficiencywillincreasepricetoconsumersandmaycomeatacosttootherproductfeatures,suchassize,noiselevel,andperformanceatlowtemperatures.KeyIssues105•ImpactsonProfitability–Conversioncostscouldbesignificantifamendedstandardsrequirenewproductplatforms.–Customersareprice‐sensitive,soanincreaseinproductcost/pricewillleadtoadecreaseinprofitabilityeitherduetoadecreaseinshipmentsoradecreaseinper‐unitmargins(ifmanufacturerschoosetoabsorbcostsinordertomaintainvolumes).•SmallBusinessImpacts–Amendedstandardscouldplaceadisproportionateburdenonsmallwhole‐homedehumidifiermanufacturers.•Fewerhumanandcapitalresourcesthanlarger,morediversifiedportableunitmanufacturers.•Smallbusinessmanufacturersofwhole‐homeproductsaredisadvantagedinachievingthescaleneededtoexertpurchasingpowerinsourcingcomponentsfromvendors.KeyIssues106•BaselineManufacturerMarkup=1.45•ManufacturerMarkupScenarios:Changeinmanufacturermarkupreflectstheindustry’sabilitytoincreasepricesasinvestmentsgrowandMPCsincrease.–HighScenario:PreservationofGrossMargin•Manufacturersmaintainthesamemarkupbeforeandafterstandards–LowScenario:PreservationofOperatingProfit•ManufacturersreducemarkupsonminimallycompliantproductsMarkupScenarios107INPVResults•PreservationofGrossMarginPercentageMarkupScenario(LeastSevereImpactforManufacturers)•PreservationofOperatingProfitMarkupScenario(MostSevereImpactforManufacturers)Units BaseCaseTrialStandardLevel1234INPV (2013$millions)186.5 184.0 183.4 155.2146.3ChangeinINPV(2013$millions)‐ ‐2.5‐3.1‐31.3‐40.2(%)‐ ‐1.4%‐1.6%‐16.8%‐21.6%ProductConversionCosts (2013$millions)‐3.9 5.1 30.248.1CapitalConversionCosts (2013$millions)‐1.3 1.7 20.533.1TotalConversionCosts (2013$millions)‐5.2 6.7 50.781.3Units BaseCaseTrialStandardLevel1234INPV (2013$millions)186.5183.5 182.1 151.6 126.8ChangeinINPV(2013$millions)‐‐3.0‐4.4‐34.9‐59.7(%)‐‐1.6%‐2.4%‐18.7%‐32.0%ProductConversionCosts (2013$millions)‐3.9 5.1 30.248.1CapitalConversionCosts (2013$millions)‐1.3 1.7 20.533.1TotalConversionCosts (2013$millions)‐5.2 6.7 50.781.3108ManufacturerImpactAnalysisItem9: AspartoftheMIA,DOEestimatestheproductandcapitalconversioncoststhatallmanufacturersmustmaketocomplywithpotentialstandards.DOErequestscommentontheindustryproductconversioncostsandindustrycapitalconversioncostsnecessaryfordehumidifiermanufacturerstocomplywiththeproposedstandards.DetailsoftheManufacturerImpactAnalysiscanbefoundinchapter12oftheTSD.RequestforComment109ManufacturerImpactAnalysisItem10: DOEquantitativelyassessedtheimpactsofstandardsondirectemployment.DOEseekscommentonthepotentialdomesticemploymentimpactstodehumidifiermanufacturersattheproposedefficiencylevels.Item11: DOEconsiderstheimpactsoncertainmanufacturersubgroups,includingsmallbusinessmanufacturers,thathavedifferentcoststructuresoroperatewithindifferentregulatoryframeworksintheNOPRstage.DOErequestsfeedbackonsubgroupstoanalyzeand/orcharacteristicsappropriateforsubgroupanalysis.RequestforComment110PublicMeetingTopics1RegulatoryHistory,TestProcedures,andOverview2ProposedStandards3MarketandTechnologyAssessmentandScreening4EngineeringAnalysis5MarkupsandEnergyUseAnalysis6Life‐CycleCostandPaybackPeriodAnalysis7ShipmentsandNationalImpactAnalysis8ManufacturerImpactAnalysis9AdditionalNOPRAnalysesandClosingRemarks111NOPR Rulemaking StageMarket &TechnologyScreeningAnalysisEngineeringAnalysisMarkupsAnalysisEnergy UseAnalysisManufacturerImpactAnalysisConsumerSubgroupAnalysisEmissionsAnalysisUtilityImpactAnalysisEmploymentImpactAnalysisRegulatoryImpactAnalysisEmissionsMonetizationAnalysisNationalImpactAnalysisShipmentsAnalysisLife-CycleCost andPaybackPeriod AnalysisFrameworkDocumentFinalRulePreliminaryAnalysisNOPR112ConsumerSubgroupAnalysis•Purpose–Evaluatetheeconomicimpactsofstandardsonconsumersubgroupswhomaybedisproportionatelyimpactedcomparedwiththegeneraluserpopulation.•Method–Identifysenior‐onlyandlow‐incomehouseholds.•Results–LCCandPBPresultswerenotappreciablydifferentthanforthegeneralpopulation.113•Purpose–Estimatetheemissionsreductionsresultingfromamendedenergyconservationstandards.–Includesestimatingconsidersfull‐fuel‐cycleemissions;bothpowerplantemissionsand“upstream”emissions.–Includesfugitivemethaneemissions.•Method–ProvidefromNationalImpactAnalysisanannualtime‐seriesofenergysavingsovertheanalysisperiod.–UseEnergyInformationAdministration’sNationalEnergyModelingSystem(NEMS)torepresenttheimpactsofamendedstandards.EmissionsAnalysis114EmissionsAnalysis:ResultsTSL1 TSL 2 TSL 3 TSL 4CO2(millionmetrictons)4.27 6.75 19.31 47.05NOx(thousandtons)6.33 10.03 28.79 70.40SO2(thousandtons)3.56 5.61 15.95 38.60Hg(tons)0.01 0.02 0.05 0.12N2O(thousandtons)0.06 0.09 0.26 0.63CH4(thousandtons)18.70 29.75 85.88 211.44115EmissionMonetizationAnalysis•UsethemostcurrentSocialCostofCarbon(SCC)valuesdevelopedbyinteragencyprocess.–SCCisintendedtobeamonetarymeasureoftheincrementaldamageresultingfromgreenhousegas(GHG)emissions,including,butnotlimitedto,agriculturalproductivityloss,humanhealtheffects,propertydamagefromrisingsealevels,andchangesintheecosystem.•Usethemostrecent(2013)U.S.governmentinteragencyestimatesoftheSCCforemissionsin2015,permetrictonavoided(in2013$):–$12.0(averagevaluefromdistributionwitha5%discountrate)–$40.5(averagevaluefromdistributionwitha3%discountrate)–$62.4(averagevaluefromdistributionwitha2.5%discountrate)–$119(95th‐percentilevaluefromdistributionwitha3%discountrate)•ReporttheSCCinconstantdollarsasincreasedovertime.•MonetizetheNOxemissionsreductionsresultingfromamendedstandards.116EmissionMonetizationAnalysis:ResultsTSL1 TSL2 TSL3 TSL4CO231to432 49to679 137to1,931 328to 4,656NOx3%discountrate23.3 36.5 103.7 249.5NOx7%discountrate10.2 15.9 44.0 102.7FullFuelCycleEmissionsReductionBenefits(million2013$)117UtilityImpactAnalysis•Purpose–Estimatethechangesinelectricinstalledcapacityandgenerationthatresultfromamendedenergyconservationstandards.•Method–ProvidefromNationalImpactAnalysisanannualtime‐seriesofenergysavingsovertheanalysisperiod.–UseEnergyInformationAdministration’sNationalEnergyModelingSystem(NEMS)torepresenttheimpactsofamendedstandards.•Output–Reductionsintotalelectricitygeneration.–Reductionsinprimaryfuel(e.g.coal,naturalgas)consumption.–Changestothemixofelectricitygenerationbyfueltype.–Changestototalinstalledcapacity.118EmploymentImpactAnalysis•Purpose–Estimatethenationalnetimpactonjobsasaconsequenceofamendedenergyconservationstandards,includingindirectemploymentimpacts.•Method–UsetheImSET(ImpactofSectorEnergyTechnologies)modelfortheevaluationofindirectemploymentimpacts;directemploymentimpactstothecommercialairconditioningindustryaredevelopedintheManufacturerImpactAnalysis.–InputintoImSETthechangesinnationalequipmentandenergyexpendituresfromtheNationalImpactAnalysis.•Results–Netlabormarketimpactsarenegligibleovertimeduetothesmallmagnitudeoftheshort‐termeffects.119RegulatoryImpactAnalysis•Purpose–Investigatethenationalimpactsofnon‐regulatoryalternativestomandatoryamendedenergyconservationstandards.•Method–ModifytheNIAspreadsheettoanalyzethefollowingnon‐regulatoryalternativesandtheirimpactonpurchasepriceandenergyuse.–NationalEnergySavingsandNetPresentValueforthenon‐regulatoryalternatives.•Nonewregulatoryaction•Manufacturertaxcredits•Consumerrebates•Voluntaryefficiencytargets•Consumertaxcredits•Bulkgovernmentprocurement120HowtoSubmitWrittenCommentsInallcorrespondence,pleaserefertothisrulemakingby:– StandardsforResidentialDehumidifiers– DocketNumberEERE‐2012‐BT‐STD‐0027– RegulationIdentificationNumber(RIN)1904‐AC81Email:ResDehumidifier2012STD0027@ee.doe.govPostal:CourierMs.BrendaEdwardsMs.BrendaEdwardsU.S.DepartmentofEnergyU.S.DepartmentofEnergyBuildingTechnologiesProgram,BuildingTechnologiesProgram,Suite600MailstopEE‐5B950L’EnfantPlaza,SW1000IndependenceAvenue,SWWashington,DC20024Washington,DC20585‐0121Tel:202586‐2945CommentperiodclosesAugust3,2015,11:59PMET