Building Technologies Programeere.energy.gov1Public Service of Colorado Ponnequin Wind FarmBUILDING TECHNOLOGIES PROGRAMFramework Document Public Meetingon Energy Conservation Standards forCommercial Refrigeration EquipmentCharles LlenzaDepartment of EnergyEnergy Efficiency & Renewable EnergyCRE-2010-STD-0003@ee.doe.govMay 18, 2010Building Technologies Programeere.energy.gov2•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; stateyour name for the record)–Set cell phones to silent/vibrate•Housekeeping ItemsWelcome and IntroductionsBuilding Technologies Programeere.energy.gov3Morning Agenda9:00 – 9:30 am9:30 – 10:00 am10:00 – 10:30 am10:30 – 10:45 am10:45 – 11:15 am11:15 – 11:45 am11:45 – 12:15 pmAgenda and Opening RemarksRegulatory History and Rulemaking OverviewRulemaking ScopeBreakTest ProcedureMarket Technology AssessmentScreening and Engineering AnalysisBuilding Technologies Programeere.energy.gov4Afternoon Agenda12:15 – 1:15 pm1:15 – 1:45 pm1:45 – 2:15 pm2:15 – 2:30 pm2:30 – 2:45 pm2:45 – 3:00 pm3:00 – 3:30 pm3:30 pmLunchEnergy Use Characterization & MarkupsLife Cycle Cost and Payback Period Analyses,Shipments Analysis and National Impact AnalysisBreakLCC Subgroup Analysis and Manufacturer ImpactAnalysisUtility Impact Analysis, Employment Impact Analysis,Environmental Assessment, and Regulatory ImpactAnalysisClosing remarks; Other issues and commentsAdjournBuilding Technologies Programeere.energy.gov5Test ProcedurePreliminary AnalysisNOPR AnalysesClosing RemarksPublic Meeting Agenda4567Rulemaking Overview2Scope31IntroductionBuilding Technologies Programeere.energy.gov6Request for CommentIssue BoxIn the Rulemaking Framework Document forCommercial Refrigeration Equipment, DOE welcomescomment. Throughout this presentation, specific issues willbe raised for discussion on slides such as this,withidentifying numbers corresponding to those in theFramework Document. In addition, DOE has added somequestions that are not in the Framework document. Thesequestions are identified by a letter. Nonetheless, commentsconcerning any part of the document or presentation arewelcome.Building Technologies Programeere.energy.gov7Contact Information for FeedbackIn all correspondence, please refer to the Commercial RefrigerationEquipment rulemaking by:–Commercial Refrigeration Equipment Rulemaking,–Docket NumberEERE-2010-BT-STD-0003, and–Regulatory Identification Number (RIN)1904-AC19Email: CRE-2010-STD-0003@ee.doe.govComment period ends: June 7, 2010Postal:Courier:Ms. Brenda Edwards-JonesU.S. Department of EnergyBuilding Technologies ProgramMailstop: EE-2J, Room 1J-0181000 Independence Avenue, SWWashington, DC 20585-0121Ms. Brenda Edwards-JonesU.S. Department of EnergyBuilding Technologies Program, 6thFloor950 L’Enfant Plaza, SWWashington, DC 20024Tel: 202-586-2945Building Technologies Programeere.energy.gov8Purpose of the FrameworkDocument Public Meeting•Present the proposed procedural and analytical approaches toevaluate energy conservation standards for commercial refrigerationequipment.•Provide a forum for public discussion of rulemaking issues.•Encourage interested parties to submit data, information, and writtencomments.•Inform interested parties and facilitate the rulemaking process.Building Technologies Programeere.energy.gov9Interested Parties OpeningStatementsAt this time DOE welcomes opening remarks on the frameworkdocument for commercial refrigeration equipment.Building Technologies Programeere.energy.gov10Test ProcedurePreliminary AnalysisNOPR AnalysesClosing RemarksPublic Meeting Agenda4567Rulemaking Overview2Scope31IntroductionBuilding Technologies Programeere.energy.gov11Regulatory History•Energy Policy and Conservation Act (EPCA) of 1975 (Public Law 94-163).–Established the energy conservation program.•Energy Policy Act (EPACT) 2005 amendment to EPCA.–Prescribed standards for self-contained equipment with doors, effectiveJanuary 1, 2010.–Directed DOE to develop and publish, by January 1, 2009, standards forice cream freezers, remote-condensing equipment and self-containedequipment without doors.–Directed DOE to determine whether to amend the standards prescribedboth by DOE and EPCA. If the determination were to be positive, thenDOE should publish amended standards by January 1, 2013, through asecond rulemaking process. (42 U.S.C. 6313(c)(5))Building Technologies Programeere.energy.gov12Regulatory History (contd.)•DOE published a final rule on January 9, 2009 (74 FR 1092); effectiveJanuary 1, 2012.•Current round of rulemaking (initiated by this Framework Document)addresses the second directive from EPACT 2005.•DOE must publish a rule amending standards by January 1, 2013, if itdetermines to amend the standards.•Any amended standards adopted by DOE would apply to equipmentmanufactured 3 years or more after the publication of such a rule, or amaximum of 5 years, in case DOEdetermines that a 3-year period isinadequate.Building Technologies Programeere.energy.gov13EPCA Factors•42 U.S.C. 6295(o)(2)(B)(i) directs DOE to consider seven factors whensetting energy conservation standards:EPCA FactorsDOE Analysis1. Economic impact on consumers andmanufacturersLife-Cycle Cost Analysis andManufacturer Impact Analysis2. Lifetime operating cost savings comparedto increased cost for the equipmentLife-Cycle Cost Analysis3. Total projected energy savingsNational Impact Analysis4. Impact on utility or performanceEngineering Analysis andScreening Analysis5. Impact of any lessening of competitionManufacturer Impact Analysis6. Need for national energy conservationNational Impact Analysis7. Other factors the Secretary considersrelevantEnvironmental Assessment,Utility Impact Analysis andEmployment Impact AnalysisBuilding Technologies Programeere.energy.gov14Steps in the Standards Rulemaking:Framework DocumentFrameworkDocumentPreliminaryAnalysisNOPRFinalRuleToday•Today’s public meeting covers the Framework Document for CommercialRefrigeration Equipment.•Federal Register Notice of Public Meeting, 75 FR 24824, May 6, 2010.–Gives notice of the public meetingand availability of the FrameworkDocument being discussed today.•Framework Document–Provides an overview of the rulemaking process and encourages interestedparties early participation.–Encourages interested parties to submit comments byJune 7, 2010.–The Framework Document and materials from today’s public meeting areavailable online:http://www1.eere.energy.gov/buildings/appliance_standards/commercial/refrigeration_equipment.htmlBuilding Technologies Programeere.energy.gov15Steps in the Standards Rulemaking:Preliminary AnalysisMarket &TechnologyScreeningAnalysisEngineeringAnalysisEnergy UseCharacterizationShipmentsAnalysisNationalImpactAnalysisMarkups forEquipment PriceDeterminationLife-CycleCost andPaybackPeriod AnalysisFrameworkDocumentPreliminaryAnalysisNOPRFinalRuleBuilding Technologies Programeere.energy.gov16Steps in the Standards Rulemaking:NOPRManufacturerImpactAnalysisUtilityImpactAnalysisEmploymentImpactAnalysisLife-CycleCostSubgroupAnalysisEnvironmentalAssessmentRegulatoryImpactAnalysisLife-CycleCost &PaybackPeriodAnalysesNationalImpactAnalysisRevisePreliminaryAnalysisEngineeringAnalysisFrameworkDocumentPreliminaryAnalysisNOPRFinalRuleBuilding Technologies Programeere.energy.gov17Steps in the Standards Rulemaking:Final RuleRevise NOPRAnalysesFrameworkDocumentPreliminaryAnalysisNOPRFinalRuleBuilding Technologies Programeere.energy.gov18Timeline for CRE StandardsRulemakingFrameworkDocumentPublic MeetingMay 18, 2010Points of Interested Parties’ ParticipationPreliminary AnalysisPublic Meeting(Tentative: Spring 2011)NOPRPublic Meeting(Tentative: Winter 2012)2011201420102012201320152016Proposed FinalRule EffectiveDateBuilding Technologies Programeere.energy.gov19Request for CommentAdditional Comment AAny comments on therulemaking overview and proposed scheduling?Building Technologies Programeere.energy.gov20Test ProcedurePreliminary AnalysisNOPR AnalysesClosing RemarksPublic Meeting Agenda4567Rulemaking Overview2Scope31IntroductionBuilding Technologies Programeere.energy.gov21Current Commercial RefrigerationEquipment Standards – EPCA•EPCA, as modified by EPACT 2005, prescribed standards for self-containedcommercial refrigeration equipment with doors, effective January 1, 2010.CategoryMaximum daily energy consumption(kilowatt hours per day)Refrigerators with solid doors0.10V + 2.04Refrigerators with transparent doors0.12V + 3.34Freezers with solid doors0.40V + 1.38Freezers with transparent doors0.75V + 4.10Refrigerator/freezers with solid doorsthe greater of 0.27AV – 0.71 or 0.70Self-contained refrigerators withtransparent doors designed for pulldown temperature applications0.126V + 3.51•In 2009, DOE set new standards for remote condensing commercialrefrigeration equipment, self-contained equipment without doors, and icecream freezers. These requirements are effective January 1, 2012.•DOE intends to include in the scope of the current rulemaking both theequipment with standards prescribed in EPACT 2005 as well as the equipmentfor which it established standards in 2009.Note: V = volume, AV = Adjusted VolumeBuilding Technologies Programeere.energy.gov22Standby and Off Mode Standards•EPCA, as modified by EISA 2007, directs DOE to incorporate standbyand off-mode standards•Commercial refrigeration equipment, however, generally operatesconstantly to maintain product at a desired temperature.•DOE believes that only the activemode of energy consumption isapplicable to this equipment. However, it will examine the issue andaddress it in the analyses conducted in this rulemaking.Additional Comment BDOE welcomes comment on issues arisingfrom the standby mode and off mode provisions from EISA 2007,including: (a) whether the standby mode and off mode provisions areapplicable to this equipment; (b) whether DOE should modify its testprocedure for commercial refrigeration equipment; and if so, (c) howDOE should incorporate standby mode and off mode energyconsumption into its analysis for the energy conservation standard.Building Technologies Programeere.energy.gov23Secondary Coolant Applications•Some supermarket applications utilize “secondary coolant”systems.•In the 2009 final rule, DOE determined that language in EPCAprecluded coverage of secondary coolant equipment .•DOE also concluded that EPCA interpretation was consistent withAHRI Standard 1200-2006, which explicitly excludes secondarycoolant applications.•Under current statute DOE has determined that secondarycoolant equipment will not be covered in this rulemaking.Additional Comment CDOE welcomes comment on issuesregarding the relevance of secondary-coolant applications to thisrulemaking.Building Technologies Programeere.energy.gov24Stakeholder Equipment Issues•DOE has received letters from manufacturers of certain selfcontained service over counterand self-contained under-counterrefrigeration units with doors stating that they are unable to meetEPCA standards for this equipment.–OHA determined that DOE does not have authority to grantexceptions or exemptions to amend standards for service overcounter and self-contained under-counter refrigeration units withdoors.•Classification issue regarding hybrid doors (mixed solid andtransparent doors).Item 1-3DOE welcomes comment onthese and other issuesregarding commercial refrigeration equipment.Building Technologies Programeere.energy.gov25Test ProcedurePreliminary AnalysisNOPR AnalysesClosing RemarksPublic Meeting Agenda4567Rulemaking Overview2Scope31IntroductionBuilding Technologies Programeere.energy.gov26Test Procedure Schedule•TP NOPR will be published by February/March 2011, concurrentwith ECS Preliminary Analysis.•TP NOPR Public Meeting will be held separate from ECS publicmeeting.•TP Final Rule will be published before the publication of ECSNOPR.Energy ConservationStandards (ECS)Test Procedure (TP)FrameworkDocumentPreliminaryAnalysisNOPRFinalRuleNOPRFinalRuleBuilding Technologies Programeere.energy.gov27•Previous DOE test procedure, published inDecember 2006, adapted ANSI/ARI Standard1200-2006 as the DOE test procedure.–References ASHRAE Standard 72-2005 as themethod of test and AHAM Standard HRF-1-2004 formeasuring refrigerated compartment volume.•An updated AHRI test procedure has since beenpublished – AHRI 1200-2008.–References the updated AHAM Standard HRF-1-2008.•DOE is considering incorporating AHRI 1200-2008into the CRE test procedure.Test Procedure UpdatesBuilding Technologies Programeere.energy.gov28Potential Test ProceduresModifications•DOE is considering certain technology optionsfor the energy conservation standards:–lighting sensors and controls–infiltration reduction devices–other energy management or part-load controlsNight Curtains•Current DOE test procedures are unable to quantify the effects of theseoptions.•DOE is considering amending the test procedure to accommodate•DOE suggests the following methodsto develop new test procedures toaccommodate these technologies:–Analytical methods–Physical testing–Combination of analytical methods and physical testingBuilding Technologies Programeere.energy.gov29•Analytical Methods–Specify a “percent time off” or other scaling factor based on industrydata to be used in calculating daily energy consumption.–Similar to the method used for Alternate Component Indirect Effects inAHRI 1200.Methods for Evaluation of EnergyEfficiency FeaturesAdvantages• Consistent.• Will not causesignificant increasein testing burden orexpense.Limitations• Dependent onavailability ofempirical data.• May not capturedifferences in energyconsumption forsimilar technologies.Building Technologies Programeere.energy.gov30•Physical Testing–Specify triggering schedules or part-load test conditions in the methodof test that would occur as partof the 24 hour test or an additionaltest, if necessary.–Triggering schedule similar to treatment of door openings in ASHRAEStandard 72–2005.Methods for Evaluation of EnergyEfficiency Features (contd.)Advantages• Accurate.• Representsdifferences inenergy consumptionfor similartechnologies.Limitations• Additional triggeringschedules or testingcould beimpractical, overlyburdensome, orexpensive.Building Technologies Programeere.energy.gov31•Combination of Physical Testing and Analytical Methods–Complete limited additional testing and use with weighting factors tocalculate daily energy consumption.–Similar to the calculation of Integrated Part Load Rating for Unitary AirConditioning and Air-Source Heat Pump Equipment (ARI 210–2003).Methods for Evaluation of EnergyEfficiency Features (contd.)Advantages• Does not introducemore complexitiesinto current test.Limitations• Additional testing willincrease testingburden and expense.• May not capturedifferences in energyconsumption forsimilar technologies.Building Technologies Programeere.energy.gov32Request for CommentItem 1-1DOE requests comment regarding the development forupdating test procedures for the commercial refrigeration equipmentcovered under this rulemaking.Additional Comment DDOE is interested in any existing industrytest procedures which address energy conservation technologies ordata to support test procedure development.Building Technologies Programeere.energy.gov33Test ProcedurePreliminary AnalysisNOPR AnalysesClosing RemarksPublic Meeting Agenda4567Rulemaking Overview2Scope31IntroductionBuilding Technologies Programeere.energy.gov34Steps in the Standards Rulemaking:Preliminary AnalysisMarket &TechnologyScreeningAnalysisEngineeringAnalysisEnergy UseCharacterizationShipmentsAnalysisNationalImpactAnalysisMarkups forEquipment PriceDeterminationLife-CycleCost andPaybackPeriod AnalysisFrameworkDocumentPreliminaryAnalysisNOPRFinalRuleBuilding Technologies Programeere.energy.gov35Market and Technology AssessmentPurpose•Characterize the markets, the commercial refrigeration equipmentindustry, and the potential technological measures that improveefficiencyMethod•Identify and characterize manufacturers of commercialrefrigeration equipment;•Estimate shipments and trends in the market;•Identify regulatory and non-regulatory initiatives intended toimprove the efficiency of the equipment covered under thisrulemaking; and•Identify technologies that could improve efficiency.Building Technologies Programeere.energy.gov36Relationship of Market and TechnologyAssessment to Other AnalysesMarket and TechnologyAssessmentEquipment ClassesTechnology Options to improve efficiencyScreening AnalysisDesign Options to improve efficiencyEngineering AnalysisBuilding Technologies Programeere.energy.gov37Request for CommentsAdditional Comment EDOE welcomes input and data onestimates of market shares, equipment features, and efficiencytrends for the commercial refrigeration equipment covered in thisrulemaking. DOE also seeks input on shipment estimates ofcommercial refrigeration equipment.Additional Comment FDOE welcomes input on manufacturers ofcovered equipment as well as distribution channels used for salesof covered equipment.Building Technologies Programeere.energy.gov38Equipment Classes•DOE divides covered equipment into classes based on performancerelated features that justify different standard levels, such as featuresaffecting consumer utility (42 U.S.C. 6295(q))•DOE establishes separate energyconservation standards for eachequipment class.•In the 2009 Final Rule, DOE established equipment classes for theequipment covered by that rulemaking, and included equipment classdesignations for the equipment for which standards were set by EPCA.•DOE could also further subdivide existing classes, were it warranteddue to inherent differences within equipment currently covered by aclass.Item 3-4DOE welcomes comments on equipment classes forcommercial refrigeration equipment and approaches to definingclasses in accordance with the requirements of 42 U.S.C. 6295(q).Building Technologies Programeere.energy.gov39Technology Options Under ConsiderationTechnology options applicable to all commercial refrigerationequipment:Higher-efficiency lightingHigher-efficiency lighting ballastsRemote lighting ballast locationHigher-efficiency expansion valvesHigher-efficiency evaporator fanmotorsVariable-speed evaporator fan motorsIncreased evaporator surface area orefficiencyEvaporator fan motor controllersHigher-efficiency evaporator fanbladesLow-pressure differential evaporatorsAnti-sweat heater controlsImproved or increased case insulationHot-gas defrostAnti-fog films on transparent doorsDefrost-cycle controlsOccupancy sensors for lightingVacuum insulated panelsBuilding Technologies Programeere.energy.gov40Technology Options Under Consideration(contd.)Technology options applicable to equipment without doors only:Air curtain designNight curtains placed over open casesStrip curtainsRadiation shieldsTechnology options applicable self-contained equipment only:Higher-efficiency compressorsLiquid-to-suction heat exchangersIncreased condenser surface area orefficiencyHigher-efficiency condenser fanmotorsVariable-speed condenser fan motorsCondenser-fan-motor controllersHigher-efficiency condenser fanbladesBuilding Technologies Programeere.energy.gov41Request for CommentsItem 3-5DOE welcomes comments on the preliminary technologyoptions identified in this section and whether there are othertechnology options it should consider. In commenting on designoptions, please discuss any potential impacts on safety,performance, and consumer utility.Building Technologies Programeere.energy.gov42Steps in the Standards Rulemaking:Preliminary AnalysisMarket &TechnologyScreeningAnalysisEngineeringAnalysisEnergy UseCharacterizationShipmentsAnalysisNationalImpactAnalysisMarkups forEquipment PriceDeterminationLife-CycleCost andPaybackPeriod AnalysisFrameworkDocumentPreliminaryAnalysisNOPRFinalRuleBuilding Technologies Programeere.energy.gov43Screening AnalysisImpacts on health or safetyImpacts on equipment utility or availability toconsumersPracticability to manufacture, install, and serviceTechnological feasibilityPurpose•Screen out technology options thatDOE will not consider in theengineering analysis for commercial refrigeration equipment.Approach•DOE will evaluate each technology option based on the followingcriteria:Building Technologies Programeere.energy.gov44Request for CommentsItem 4-1DOE welcomes comments on how the four screeningcriteria might apply to any additional technology option(s) that aninterested party recommends to DOE.Building Technologies Programeere.energy.gov45Steps in the Standards Rulemaking:Preliminary AnalysisMarket &TechnologyScreeningAnalysisEngineeringAnalysisEnergy UseCharacterizationShipmentsAnalysisNationalImpactAnalysisMarkups forEquipment PriceDeterminationLife-CycleCost andPaybackPeriod AnalysisFrameworkDocumentPreliminaryAnalysisNOPRFinalRuleBuilding Technologies Programeere.energy.gov46Goals of the Engineering Analysis•A key factor in setting the standard is the increased cost of moreefficient equipment.•The Engineering Analysis determines the relationship betweencost and efficiency.Rulemaking Analyses•Life-Cycle Cost andPayback Period•Manufacturer ImpactAnalysis•Employment ImpactAnalysisManufacturer Selling Price –Efficiency Relationship

Manufacturer Selling PriceEfficiency LevelBuilding Technologies Programeere.energy.gov47Engineering Analysis MethodologyÕChoose equipment classes that represent high-shipmentvolume for the engineering analysis.ÕDefine characteristics of models in each representativeequipment class to serve as reference points to assesschanges due to more stringent standard levels.ÕIdentify more efficient substitutes using design optionapproach methodology.ÕDetermine manufacturer production costs for baselineequipment and their more efficient substitutes. Develop sellingprices based on production costs and markups.ÕDevelop candidate standard levels that span the range ofequipment efficiencies.ÕScale results to equipment classes not analyzed.ScaleResultsChooseRepresentativeEquipmentClassesDefine BaselineModelsIdentifyEfficientSubstitutesDevelopManufacturerSelling PriceDevelopCandidateStandard LevelsBuilding Technologies Programeere.energy.gov48Engineering Analysis MethodologyAdditional Comment GDOE welcomes comment on itsintended preliminary engineering analysis methodology.ScaleResultsChooseRepresentativeEquipmentClassesDefine BaselineModelsIdentifyEfficientSubstitutesDevelopManufacturerSelling PriceDevelopCandidateStandard LevelsBuilding Technologies Programeere.energy.gov49Proprietary Designs•DOE will evaluate all design options that are commerciallyavailable or present in a working prototype, including proprietarydesigns and technologies.•Proprietary designs will only be considered if they do not presenta unique path to a given efficiency level.•The confidentiality of manufacturers will be maintained.Item 5-5DOE seeks information on proprietary designs itshould be aware of for the commercial refrigerationequipment under consideration in this rulemaking, and if suchproprietary designs exist, how DOE can acquire the cost datanecessary for evaluating these designs.Building Technologies Programeere.energy.gov50Representative SizesItem 5-6DOE welcomes comment on the selection ofrepresentative equipment sizes for the commercialrefrigeration equipment under consideration in this rulemaking.•In the engineering analysis, DOE will select equipment modelswhich best represent typical offerings within each class.•Selection of representative sizes will allow for the analyses to modelthe majority of the equipment in the classes.•DOE developed representative equipment sizes as part of the 2009final rule, and intends to use thosesizes as starting values for theengineering analysis in this rulemaking.Building Technologies Programeere.energy.gov51Normalization Metrics•The standards prescribed by EPCAuse a metric of refrigeratedcompartment volume for equipment with both transparent and soliddoors.•In the 2009 rulemaking, DOE developed standards based on metric of:–Total display area (TDA) for open cases and equipment with transparentdoors.–Refrigerated compartment volume for equipment with solid doors.•In this rulemaking, DOE is considering using a consistent normalizationmetric for similar equipment classes.•DOE needs to develop a conversion between the existing volume metricand a TDA metric in order to translate the existing EPCA standards interms of TDA for equipment with transparent doors.Building Technologies Programeere.energy.gov52Request for CommentsItem 5-8DOE seeks comment regarding mapping betweenvolume and total display area metrics, as well as the methodologyto translate baseline energy use between the two metrics.Item 5-9DOE requests feedback regarding specific equipmentclasses which may need to be subdivided, or equipmentcategories which may need their own equipment classes shouldrevised normalization metrics be used in this rulemaking.Building Technologies Programeere.energy.gov53Outside Regulatory Changes•DOE takes into consideration the effects on manufacturers ofother regulatory changes outside of the standards rulemakingprocess.Additional Comment HDOE welcomes comments onregulatory burdens and changes that should be considered inthe engineering analysis of commercial refrigerationequipment.Additional Comment IDOE welcomes comments on otherengineering issues that could affect the engineering analysis.Building Technologies Programeere.energy.gov54Steps in the Standards Rulemaking:Preliminary AnalysisMarket &TechnologyScreeningAnalysisEngineeringAnalysisEnergy UseCharacterizationShipmentsAnalysisNationalImpactAnalysisMarkups forEquipment PriceDeterminationLife-CycleCost andPaybackPeriod AnalysisFrameworkDocumentPreliminaryAnalysisNOPRFinalRuleBuilding Technologies Programeere.energy.gov55Energy Use Characterization•Develop energy use and peak electricity demand characteristics forbuildings that use commercial refrigeration equipment.•Provide the basis for the unit energy costs used in the Life-Cycle CostAnalysis.PurposeBackground (2009 final rule)•Energy consumption estimates from engineering analysis were usedas basis for Energy Use Characterization.•DOE used a whole building simulation tool to examine effect of CREimprovements on building HVAC for a supermarket in differentclimates. Overall effect was found to be negligible.•Lighting in display case was assumed to operate 24 hours asspecified in the test procedure.Sensitivity study to lighting hourassumptions was presented in Energy Use Characterization.Building Technologies Programeere.energy.gov56Energy Use Characterization: Issues•New rule will have a largershare of self-contained equipment.–Self-contained equipment has a greater impact on building HVAC loadscompared to remote-condensing equipment.–Previous sources/studies for annual energy consumption were mainlyfocused on remote condensing equipment, so additional data will benecessary.•Fluorescent vs. LED lighting operating hours assumption–Fluorescent lighting was assumed to operate 24-hour/day due to restartand moisture-related maintenance issues–LED lighting does not face this problem and is more suitable to automaticshutoff or dimming, e.g. when triggered by occupancy sensors.Building Technologies Programeere.energy.gov57Request for CommentsItem 6-1DOE seeks input on whether the impact of higher efficiencyrefrigeration equipment in self-contained equipment on the building spaceconditioning loads is significant enough to warrant taking them into accountin the energy analysis. If so, what methods could best be used to estimatethe net energy consumption and load impacts of higher efficiencycommercial refrigeration equipment in buildings using this equipment?Item 6-2DOE seeks data or data sources that could be used to characterizethe operating hours assumptions to assess lighting energy for differentlighting and lighting control technologies contained in commercialrefrigeration equipment.Item 6-3DOE seeks data or data sources that could be used to characterizethe energy use of commercial refrigeration equipment and how this maydeviate from that estimated using the DOE test procedure.Item 6-4DOE seeks feedback on this approach to the energy use and enduse load characterization.Building Technologies Programeere.energy.gov58Steps in the Standards Rulemaking:Preliminary AnalysisMarket &TechnologyScreeningAnalysisEngineeringAnalysisEnergy UseCharacterizationShipmentsAnalysisNationalImpactAnalysisMarkups forEquipment PriceDeterminationLife-CycleCost andPaybackPeriod AnalysisFrameworkDocumentPreliminaryAnalysisNOPRFinalRuleBuilding Technologies Programeere.energy.gov59Markups for Equipment PriceDeterminationPurpose•Develop overall distribution chain price markups from themanufacturer to the consumer.•Establish the consumer pricesfor both baseline equipment andequipment at higher standard levels.ManufacturerConsumerConsumerManufacturerConsumerManufacturerDistributorDistributorDistribution Channel 1Distribution Channel 3 (Nat’l Acct)Distribution Channel 2Mech. ContractorDistribution ChannelsBuilding Technologies Programeere.energy.gov60Markups for Equipment PriceDetermination•Two Types of Markups in Distribution Chain: Baseline and Incremental•Baseline Markups–Markups relate consumer price to cost of goods sold (CGS).–Baseline markups relate price to cost prior to a change in efficiency.–Baseline markups indicate a consumer price that covers allof aDistributor’s or Contractor’s expenses plus profit.•Incremental Markups–Incremental markups relate the incremental change in consumer price tothe incremental change in CGS.–Certain costs, such as direct labor costs (salaries, payroll, rental andoccupancy) do not vary with efficiency induced changes in CGS andremain constant in the calculation of incremental markups.–Incremental markups cover only expenses that vary with CGS – in thiscase, expenses that increase due to an increase in equipment efficiency.Building Technologies Programeere.energy.gov61Request for CommentsItem 7-1DOE also requests information on the fraction ofshipments expected for each distribution channel for the commercialrefrigeration equipment covered under this rulemaking; specifically,whether the distribution channels derived for food salesestablishments adequately covers sales to food serviceestablishments.Item 7-2DOE requests feedback on its plan to use incrementaldistribution channel markups for the LCC analysis.Item 7-3DOE seeks comment on other sources of relevant datathat could be used to characterize markups for the commercialrefrigeration industry.Item 7-4DOE seeks comment on appropriate transportation andshipping costs to include in the analysis and whether those costsare likely to vary for higher efficiency equipment.Building Technologies Programeere.energy.gov62Steps in the Standards Rulemaking:Preliminary AnalysisMarket &TechnologyScreeningAnalysisEngineeringAnalysisEnergy UseCharacterizationShipmentsAnalysisNationalImpactAnalysisMarkups forEquipment PriceDeterminationLife-CycleCost andPaybackPeriod AnalysisFrameworkDocumentPreliminaryAnalysisNOPRFinalRuleBuilding Technologies Programeere.energy.gov63Life-Cycle Cost (LCC) and PaybackPeriod (PBP) AnalysisPurpose•Assess the net LCC and PBP for different efficiency levels.Analysis•LCC equals consumer price plusthe sum of annual operating costsdiscounted to a particular base year.•Economic evaluation from the consumer perspective.•Analysis implemented in an Excel®spreadsheet.•Results expressed as LCC difference (baseline minus standard level).•Simple Payback equals the incremental first cost divided by theoperating cost savings for one year.Consumer LifeCycle Cost(Baseline and Standard)LCC impacts(difference betweenbaseline and standard)Operating Cost(Sum & discount topresent value)First Cost(Consumer Price &Installation)Building Technologies Programeere.energy.gov64Life-Cycle Cost and Payback PeriodAnalysisLCC FlowchartFromEngineeringAnalysis(Price is aFunction ofEfficiency)From Markupsfor EquipmentPriceDeterminationAnalysisFrom EnergyUseCharacterizationAnalysisEnergyConsumptionPowerDemandDistributorMarkupSales TaxMechanicalContractorMarkupConsumerPriceData InputsIntermediate AnalysisOutput ResultsTotal InstalledCostAnnual EnergyExpenseAnnualOperatingExpenseLifetimeOperatingExpensePaybackPeriodLife-CycleCostBuilding Technologies Programeere.energy.gov65Energy Prices•Energy prices are necessary to convert the energy use statistics for thebuildings analyzed to energy costs.•DOE intends to use regional averageelectricity and natural gas fuelprices for the commercial building sector for its analysis of commercialrefrigeration equipment.•DOE will use projections of nationalaverage energy prices-principallyfrom the most recent EIAAnnual Energy Outlook (AEO) – as inputs forfuture energy prices in the LCC analysis.Item 8-1DOE welcomes input on the electricity prices used inthis analysis.Building Technologies Programeere.energy.gov66Life-Cycle Cost Discount Rates•DOE uses the discount rate to determine the present value of lifetime(future) operating expenses.•DOE will derive the LCC discount rates by estimating the weightedaverage cost of capital (WACC) for companies that purchasecommercial refrigeration equipment.•DOE suggests that the WACC be derivedfrom estimates of the cost ofcapital of companies and store chains primarily in the food sales andfood service businesses (e.g. grocery and convenience stores andrestaurants).Item 8-2DOE seeks comment on the intended approaches for estimatingdiscount rates for consumers.Item 8-3Which commercial entities beyond grocery stores andrestaurants should be considered in the evaluation of discount rates? Inaddition, do stakeholders feel government purchases of this equipmentare large enough to require that they be included in the evaluation ofdiscount rates?Building Technologies Programeere.energy.gov67Installation, Maintenance, and RepairCosts2009 Rulemaking Approach•Installation costs: Do not change with increased efficiency equipment.•Maintenance & Repair costs:–Source: RS Means Facilities Maintenance & Repair Cost Data–Preventive maintenance costs remain constant.–Estimated the lighting maintenance cost based on each display case type for which adesign option analysis was performed.Item 8-4DOE seeks feedback on whether it is correct to assumethat changes in preventative maintenance, repair, and installationcosts will be negligible for equipment with lower energyconsumption.Item 8-5If it is not appropriate to assume that changes inmaintenance, repair, or installation costs would be negligible forequipment with lower energy consumption, DOE seeks commenton appropriate methodologies for assessing how these costswould change for equipment with lower energy consumption.Building Technologies Programeere.energy.gov68Equipment Lifetimes2009 Rulemaking:–Assumption: equipment is typically replaced when stores arerenovated–10 years for large grocery stores and multiline retailers–15 years for small grocery stores and convenience storesItem 8-6DOE seeks comment on appropriate equipmentlifetimes for the classes of equipment covered in thisrulemaking.Building Technologies Programeere.energy.gov69Steps in the Standards Rulemaking:Preliminary AnalysisMarket &TechnologyScreeningAnalysisEngineeringAnalysisEnergy UseCharacterizationShipmentsAnalysisNationalImpactAnalysisMarkups forEquipment PriceDeterminationLife-CycleCost andPaybackPeriod AnalysisFrameworkDocumentPreliminaryAnalysisNOPRFinalRuleBuilding Technologies Programeere.energy.gov70Shipment AnalysisPurpose•Estimate changes in shipments due to potential new or amendedenergy efficiency standards.Approach•Data sources (2009 rulemaking): AHRI, Appliance Magazine,Freedonia, US Census Bureau, Annual Energy Outlook (AEO).•Estimate base case forecast – what is the effect if thenew/amended energy standards were not imposed.•Estimate impact of standards – increase/decrease in shipmentsin each equipment class due to new/amended standards.Building Technologies Programeere.energy.gov71Shipment Analysis (contd.)Approach (continued)•Estimate future shipments based on:–New construction estimates from AEO–Historical rates of ownership–Equipment lifetimes used in LCC and PBP analyses•Separately account for units installed in new construction and existingbuildings•Quantify sensitivity of shipments,if necessary, to purchase price andoperating-cost savingsBuilding Technologies Programeere.energy.gov72Request for CommentItem 9-1DOE seeks information on historical shipments of commercialrefrigeration equipment for each equipment class, as well as industrytrend data regarding relative growth in each equipment class.Item 9-2DOE seeks information on representative saturation rates foreach equipment class covered under this rulemaking, as well as industrytrend data regarding relative growth in each equipment class.Item 9-3DOE requests input from manufacturers on the potential impactof new energy conservation standardson equipment shipments. Otherinterested parties are also welcome to provide input. DOE also requestsinput on any market-pull programs thatcurrently exist to promote theadoption of more-efficient equipment.Building Technologies Programeere.energy.gov73Steps in the Standards Rulemaking:Preliminary AnalysisMarket &TechnologyScreeningAnalysisEngineeringAnalysisEnergy UseCharacterizationShipmentsAnalysisNationalImpactAnalysisMarkups forEquipment PriceDeterminationLife-CycleCost andPaybackPeriod AnalysisFrameworkDocumentPreliminaryAnalysisNOPRFinalRuleBuilding Technologies Programeere.energy.gov74National Impact AnalysisPurpose•Estimate National Energy Savings (NES) and National Net PresentValue (NPV) of consumer savings for higher-efficiency standardlevels.Analysis•Rebound effect was neglected in 2009 rulemaking because, usually,CRE is operated 24 hours and thus there will be only marginalincrease in the operation of CRE, if at all, due to higher efficiency.•NES spreadsheets will be used for calculation of NES and NPV ofconsumer savings.Building Technologies Programeere.energy.gov75National Impact Analysis•National Energy Savings:–Compare national energy consumption of base case and higherefficiency equipment – year-on-year calculations.–Site-to-source conversion factors account for energy losses ingeneration, transmission, and distribution of electricity – from EIA’sNational Energy Modeling System (NEMS).•NPV of consumer savings will be calculated, as per OMBguidance, with two different discount rates 3% and 7%.Item 10-1DOE welcomes comments from interested parties on theNES spreadsheet models it plans to use for estimating nationalimpacts of amended energy conservation standards for commercialrefrigeration equipment.Building Technologies Programeere.energy.gov76Test ProcedurePreliminary AnalysisNOPR AnalysesClosing RemarksPublic Meeting Agenda4567Rulemaking Overview2Scope31IntroductionBuilding Technologies Programeere.energy.gov77Steps in the Standards Rulemaking:NOPRManufacturerImpactAnalysisUtilityImpactAnalysisEmploymentImpactAnalysisLife-CycleCostSubgroupAnalysisEnvironmentalAssessmentRegulatoryImpactAnalysisLife-CycleCost &PaybackPeriodAnalysesNationalImpactAnalysisRevisePreliminaryAnalysisEngineeringAnalysisFrameworkDocumentPreliminaryAnalysisNOPRFinalRuleBuilding Technologies Programeere.energy.gov78Steps in the Standards Rulemaking:NOPRManufacturerImpactAnalysisUtilityImpactAnalysisEmploymentImpactAnalysisLife-CycleCostSubgroupAnalysisEnvironmentalAssessmentRegulatoryImpactAnalysisLife-CycleCost &PaybackPeriodAnalysesNationalImpactAnalysisRevisePreliminaryAnalysisEngineeringAnalysisFrameworkDocumentPreliminaryAnalysisNOPRFinalRuleBuilding Technologies Programeere.energy.gov79Life-Cycle Cost Subgroup AnalysisPurpose•Analyze the economic impacts of standards on customer subgroups thatmay be disproportionately impacted compared with the general userpopulation.•Subgroups include small businesses, ethnic minorities, low-incomeconsumers, and senior citizens.Analysis•In 2009 rulemaking, small grocery stores and convenience stores wereexamined as a subgroup.•Due to increased scope of this rulemaking, independent restaurant ownersmay be considered as small business and a subgroup, if necessary.Item 11-1DOE seeks input as to what customer subgroupsDOE should consider in the present rulemaking.Building Technologies Programeere.energy.gov80Steps in the Standards Rulemaking:NOPRManufacturerImpactAnalysisUtilityImpactAnalysisEmploymentImpactAnalysisLife-CycleCostSubgroupAnalysisEnvironmentalAssessmentRegulatoryImpactAnalysisLife-CycleCost &PaybackPeriodAnalysesNationalImpactAnalysisRevisePreliminaryAnalysisEngineeringAnalysisFrameworkDocumentPreliminaryAnalysisNOPRFinalRuleBuilding Technologies Programeere.energy.gov81Manufacturer Impact AnalysisPurpose•Assess the impacts of standards on manufacturers.•Identify and estimate impacts on manufacturer subgroups thatmay be more severely impacted than the industry as a whole.•Examine the impact of cumulative regulatory burden on theindustry.Method•Analyze industry cash flow and net present value through use ofthe Government Regulatory Impact Model (GRIM).•Interview manufacturers to refine inputs to the GRIM, developsubgroup analyses, and address qualitative issues.Output•Industry NPV impacts•Subgroup NPV impacts•Other impactsBuilding Technologies Programeere.energy.gov82MIA Methodology•The MIA consists of three main phases:IndustryprofileDevelopstraw-manGRIMDevelopinterviewguideInterviews&industrywide /subgroupanalysesAssess directemployment,competition,cumulativeburdenPhase 2Phase 3PreliminaryMIAInterviewsPhase 1PreliminaryAnalysisNOPRBuilding Technologies Programeere.energy.gov83Request for CommentsItem 12-2DOE seeks comment on the subgroups ofcommercial refrigeration equipment manufacturers that itshould consider in a manufacturer subgroup analysis.Item 12-3What regulations or pending regulations shouldDOE consider in the analysis of cumulative regulatory burden?Building Technologies Programeere.energy.gov84Steps in the Standards Rulemaking:NOPRManufacturerImpactAnalysisUtilityImpactAnalysisEmploymentImpactAnalysisLife-CycleCostSubgroupAnalysisEnvironmentalAssessmentRegulatoryImpactAnalysisLife-CycleCost &PaybackPeriodAnalysesNationalImpactAnalysisRevisePreliminaryAnalysisEngineeringAnalysisFrameworkDocumentPreliminaryAnalysisNOPRFinalRuleBuilding Technologies Programeere.energy.gov85Utility Impact AnalysisPurpose•Assess the overall impact on the electric utility industry.Method•DOE plans to use NEMS (EIA 2009), developed and used byDOE/EIA for their Annual Energy Outlook report, as the basis ofthe Utility Impact Analysis.•Use the energy savings calculated from the NES spreadsheetanalysis to reduce the sector electrical loads in NEMS.Item 13-1DOE seeks input from interested parties on its planned useof NEMS to conduct the utility impact analysis.Building Technologies Programeere.energy.gov86Steps in the Standards Rulemaking:NOPRManufacturerImpactAnalysisUtilityImpactAnalysisEmploymentImpactAnalysisLife-CycleCostSubgroupAnalysisEnvironmentalAssessmentRegulatoryImpactAnalysisLife-CycleCost &PaybackPeriodAnalysesNationalImpactAnalysisRevisePreliminaryAnalysisEngineeringAnalysisFrameworkDocumentPreliminaryAnalysisNOPRFinalRuleBuilding Technologies Programeere.energy.gov87Employment Impact AnalysisPurpose•Assess the overall impact on national employment from the impositionof efficiency standards.•Include both direct and indirect employment impacts.–Direct employment impacts are estimated in the manufacturer impactanalysis.–Indirect employment impacts result from shifting consumer expendituresamong goods and services ( “substitution effect”) and changing equipmentand energy costs (“income effect”).Analysis•DOE intends to use PNNL’s Impactof Sector Energy Technologies(ImSET) model for the evaluation of indirect employment impacts.Item 14-1DOE requests feedback on its approach to employmentimpact analysis.Building Technologies Programeere.energy.gov88Steps in the Standards Rulemaking:NOPRManufacturerImpactAnalysisUtilityImpactAnalysisEmploymentImpactAnalysisLife-CycleCostSubgroupAnalysisEnvironmentalAssessmentRegulatoryImpactAnalysisLife-CycleCost &PaybackPeriodAnalysesNationalImpactAnalysisRevisePreliminaryAnalysisEngineeringAnalysisFrameworkDocumentPreliminaryAnalysisNOPRFinalRuleBuilding Technologies Programeere.energy.gov89Environmental AssessmentPurpose•To consider and quantify, where applicable, the environmentaleffects of new/amended energy conservation standards.Analysis•The emissions that will be considered: Carbon Dioxide (CO2),Sulphur Dioxide (SO2), Nitrogen Oxides (NOx), Mercury (Hg) andParticulate Matter.•DOE will use the NEMS-BT model to calculate all emissionsreductions.•Net benefit of the standard is the difference between emissionsestimated at each efficiency level and theAEOReference Case.•Emissions reductions will be monetized in accordance with mostrecent interagency guidance.Building Technologies Programeere.energy.gov90Request for CommentsItem 15-1DOE seeks input on its plans to use NEMS-BT to conduct theenvironmental impact analysis on the equipment covered by thisrulemaking. DOE is particularly interested in whether there are anyother approaches to the Environmental Assessment that it shouldconsider and the advantages anddisadvantages of each approach.Building Technologies Programeere.energy.gov91Steps in the Standards Rulemaking:NOPRManufacturerImpactAnalysisUtilityImpactAnalysisEmploymentImpactAnalysisLife-CycleCostSubgroupAnalysisEnvironmentalAssessmentRegulatoryImpactAnalysisLife-CycleCost &PaybackPeriodAnalysesNationalImpactAnalysisRevisePreliminaryAnalysisEngineeringAnalysisFrameworkDocumentPreliminaryAnalysisNOPRFinalRuleBuilding Technologies Programeere.energy.gov92Regulatory Impact AnalysisPurpose•Explore the potential of non-regulatory alternatives that mayresult in new manufacturing efficiency standardsAnalysis•DOE recognizes that voluntary and other non-regulatory effortsby the manufacturers, utilities,and other interested parties canresult in substantial efficiency improvements.•DOE will consider the impacts of such initiatives.Item 17-1DOE seeks comment regarding programs thatshould be examined as optional, non-regulatory approaches.Building Technologies Programeere.energy.gov93Test ProcedurePreliminary AnalysisNOPR AnalysesClosing RemarksPublic Meeting Agenda4567Rulemaking Overview2Scope31IntroductionBuilding Technologies Programeere.energy.gov94Contact Information for FeedbackIn all correspondence, please refer to the Commercial RefrigerationEquipment rulemaking by:–Commercial Refrigeration Equipment Rulemaking,–Docket NumberEERE-2010-BT-STD-0003, and–Regulatory Identification Number (RIN)1904-AC19Email: CRE-2010-STD-0003@ee.doe.govComment period ends: June 7, 2010Postal:Courier:Ms. Brenda Edwards-JonesU.S. Department of EnergyBuilding Technologies ProgramMailstop: EE-2J, Room 1J-0181000 Independence Avenue, SWWashington, DC 20585-0121Ms. Brenda Edwards-JonesU.S. Department of EnergyBuilding Technologies Program, 6thFloor950 L’Enfant Plaza, SWWashington, DC 20024Tel: 202-586-2945Building Technologies Programeere.energy.gov95Relevant 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/refrigeration_equipment.html•Contact Charles Llenza, Project Manager, from the Appliance StandardsProgram for additional information:–Charles.Llenza@ee.doe.gov–202.586.2192•Contact John Cymbalsky, Supervisor, from the Appliance StandardsProgram for additional information:–John.Cymbalsky@ee.doe.gov–202.287.1692