Capital Reporting Company

Residential Dehumidifier Test Procedures Docket No.: EERE-2014-BT-STD-0027 06-13-2014



### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 1

U.S. DEPARTMENT OF ENERGY ENERGY EFFICIENCY AND RENEWABLE ENERGY BUILDING TECHNOLOGIES PROGRAM

NOTICE OF PROPOSED RULEMAKING PUBLIC MEETING: RESIDENTIAL DEHUMIDIFIER ENERGY CONSERVATION STANDARDS DOCKET NO.: EERE-2014-BT-STD-0027

Department of Energy 1000 Independence Avenue, S.W. Washington, D.C.

Friday, June 13, 2014 11:19 a.m.

Reported by: Christine Allen, Capital Reporting CompanyCapital Reporting Company

Residential Dehumidifier Test Procedures Docket No.: EERE-2014-BT-STD-0027 06-13-2014



### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 2 1 A P P E A R A N C E S 2 FACILITATOR: 3 Doug Brookman 4 DOE REPRESENTATIVES: 5 Ashley Armstrong 6 Bryan Berringer 7 Elizabeth Kohl 8 INDUSTRY PARTICIPANTS: 9 John Bloemer Aprilaire 10 Brice Bowley 11 GE Appliances 12 Jennifer Cleary AHAM 13 Rehan Ehsan 14 AHAM 15 Elizabeth Noll Natural Resources Defense Council 16 Via Webinar: 17 Lacy Aliff 18 Lauren Mattison 19 Cadmus Group 20 Joanna Mauer Standards ASAP 21 Sarah Medepalli 22 ICFICapital Reporting Company

Residential Dehumidifier Test Procedures Docket No.: EERE-2014-BT-STD-0027 06-13-2014



### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 3 1 A P P E A R A N C E S (Cont'd) 2 Via Webinar (Cont'd): 3 Renata Mortazavi NRCAN 4 Thomas Murrell 5 TempoAir 6 Yoolanda Williams GE 7 Linda Wilson 8 New York Attorney General's Office 9 Ed Wuesthoff Friedrich 10 Daniel Young, Energy Solution 11 Bernard Zagar, CSA Group 12 CONSULTANTS: 13 Nicole Buccitelli Navigant 14 Camilla Dunham Whitehead 15 LBNL 16 Andrew Jean-Louis Navigant 17 Chun Chun Ni 18 LBNL 19 Judith Reich Navigant 20 Nadav Singerman 21 Navigant 22 Troy WatsonCapital Reporting Company

Residential Dehumidifier Test Procedures Docket No.: EERE-2014-BT-STD-0027 06-13-2014



### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 4 1 A G E N D A 2 Page 3 1. Welcome 5 4 2. Introductions 6 5 3. Agenda Review 7 6 4. Regulatory History 8 7 5. Market and Technology Assessment and Screening 8 8 6. Engineering Analysis 11 9 7. Preliminary Manufacturing Impact Analysis 24 10 8. Markups and Energy Use Analysis 49 11 9. Life-Cycle Cost and Payback Period 12 Analysis 63 13 10. Shipments and National Impact Analysis 68 14 11. Next Steps 76 15 12. Closing Comments from Participants 86 16 13. Closing Remarks 86 17 18 19 20 21 22Capital Reporting Company

Residential Dehumidifier Test Procedures Docket No.: EERE-2014-BT-STD-0027 06-13-2014



### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 5 1 P R O C E E D I N G S 2 (11:19 a.m.) 3 MR. BROOKMAN: Let's resume, please take 4 your seats. Welcome, everyone, welcome back. For 5 those that are just joining us, we had a very 6 productive meeting this morning on residential 7 dehumidifier test procedures and we concluded that 8 early, right about 10:45 or so. We polled the 9 room and decided that we would proceed with the 10 standards setting meeting right now. So that's 11 what we're about to embark upon. 12 This is the energy conservation 13 standards preliminary analysis for residential 14 dehumidifiers. Today is June 13, 2014, here in the 15 Forrestal Building in Washington, D.C. It's now 16 11:20. 17 Welcome to all that are here in the room 18 and those joining us online. We're going to start 19 with welcoming remarks from Ashley Armstrong. 20 MS. ARMSTRONG: So I welcome everyone 21 back. And we had a pretty good discussion this 22 morning. We hope that continues throughout middayCapital Reporting Company

Residential Dehumidifier Test Procedures Docket No.: EERE-2014-BT-STD-0027 06-13-2014



### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 6 1 and the afternoon as we talk about potentials or 2 amended standards for residential dehumidifiers. 3 MR. BROOKMAN: Again, let's do 4 introductions around the room. We have some new 5 folks who have joined us at the table. Name and 6 organizational affiliation? 7 MR. BLOEMER: John Bloemer with 8 Aprilaire. 9 MR. BOWLEY: Brice Bowley, General 10 Electric. 11 MS. NOLL: Elizabeth Noll, NRDC. 12 MS. BUCCITELLI: Nicole Buccitelli with 13 Navigant. 14 MS. DUNHAM-WHITEHEAD: Camilla Dunham15 Whitehead with LBNL. 16 MS. NI: ChunChun Ni, LBNL. 17 MR. EHSAN: Rehan Ehsan, AHAM. 18 MS. CLEARY: Jen Cleary, AHAM. 19 MR. WATSON: Troy Watson with Navigant. 20 MR. SINGERMAN: Nadav Singerman, 21 Navigant. 22 MS. ARMSTRONG: Ashley Armstrong, DOE.Capital Reporting Company

Residential Dehumidifier Test Procedures Docket No.: EERE-2014-BT-STD-0027 06-13-2014



### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 7 1 MR. BERRINGER: Bryan Berringer, DOE. 2 MS. REICH: Judy Reich, Navigant. 3 MR. BROOKMAN: All of you have received 4 a copy information as you came in the door. That 5 would be slide number 67. Immediately following 6 this overview, there will be an opportunity for 7 individuals to make brief summary remarks here at 8 the outset, but then following on directly from 9 there, we're going to hear about market and 10 technology assessment and screening, moving 11 directly to engineering analysis, and then to 12 preliminary manufacturer impact analysis, mark-ups 13 and energy use analysis, life-cycle costs and 14 payback period analysis. We'll probably break for 15 lunch around about 12:30 or so, somewhere in 16 there. 17 And then moving to shipments and 18 national impact analysis, we'll describe next 19 steps whenever we get there, at the end of these 20 multiple analyses, presentation, and comment on 21 those. Yet another opportunity at the end of the 22 day for closing comments from all present, anyoneCapital Reporting Company

Residential Dehumidifier Test Procedures Docket No.: EERE-2014-BT-STD-0027 06-13-2014



### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 8 1 who wishes to make those closing remarks. So 2 that's the general frame for that. 3 I'd simply ask you if you would please 4 speak one at a time. Each time you speak, please 5 say your name for the record. There will be a 6 complete transcript of this meeting. Just try and 7 keep focused here. Make sure your cell phones are 8 turned off and the webinar participants, if you 9 wish to join us here in the room in the 10 conversation, you ought to be able to un-mute your 11 phone and speak to us via the software. Just 12 raise your hand and we'll recognize you to speak. 13 So let's go then to the contents slides. 14 MS. ARMSTRONG: So just to start out 15 with a little bit of our regulatory history here. 16 The initial set of standards for dehumidifiers 17 were set by EPACT '05 in 2005. Subsequent to 18 that, the Energy Independence and Security Act of 19 2007 prescribed new standards for dehumidifiers 20 manufactured after October 1, 2012, so that's the 21 second set. And the current rulemaking is being 22 done to meet the six-year look-back requirementCapital Reporting Company

Residential Dehumidifier Test Procedures Docket No.: EERE-2014-BT-STD-0027 06-13-2014



### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 9 1 that DOE either issue a proposed rulemaking or a 2 determination reviewing the existing standards for 3 dehumidifiers. 4 So we discussed this in pretty detail 5 this morning, but just an early--the term 6 dehumidifier, as set by statute, means a self7 contained, electrically operated and mechanically 8 encased assembly consisting of a refrigerated 9 surface evaporator that condenses moisture from 10 the atmosphere, BCD, et cetera, as shown on the 11 slide. 12 So these are the current standards as 13 required since October 1, 2012, and, as you can 14 see, they're in terms of minimum energy factor and 15 they vary by product class, which is dependent 16 upon the product capacity. And this is just an 17 overview of our timeline with regards to the 18 current rulemaking. We published the preliminary 19 analysis in May. We're all here to talk about the 20 preliminary analysis at the public meeting. The 21 comment period ends in July, on July 21st. 22 We've roughly estimated that the NOPRCapital Reporting Company

Residential Dehumidifier Test Procedures Docket No.: EERE-2014-BT-STD-0027 06-13-2014



### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 10 1 proposed rule will be published in March of next 2 year, followed by a projected date of the final 3 rule in March of 2017. 4 Go ahead. Hi, Jen. 5 MS. CLEARY: Jen Cleary. I just want to 6 comment, I guess, that first of all, we totally 7 appreciate that the Department put the test 8 procedure and the standards public meetings on the 9 same day because the same people are involved in 10 that, especially for those that are traveling to 11 D.C., it's helpful for a burden. 12 That said, releasing the preliminary 13 analysis three weeks before this meeting has 14 caused some challenges in us being able to be as 15 prepared as we might like to be to be able to give 16 you some feedback today. So I think our comments 17 today will be fairly limited and because of that 18 short period of time between the two. I mean, 19 three weeks sounds like a long time to read a 20 document, but as you guys are well aware, this is 21 a huge document with a lot of information, so I 22 think most of our comments will be in the writtenCapital Reporting Company

Residential Dehumidifier Test Procedures Docket No.: EERE-2014-BT-STD-0027 06-13-2014



### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 11 1 format. 2 MR. BROOKMAN: Thank you. It also seems 3 to me that anybody that wishes to make any sort of 4 opening statement should do it now before we 5 proceed with the other detailed content in the 6 packet. 7 (No response.) 8 MR. BROOKMAN: No comments here, okay. 9 MS. ARMSTRONG: This is you, right? 10 MR. WATSON: Yep. 11 MS. ARMSTRONG: Do you want to switch? 12 I can continue if you'd like? 13 MR. WATSON: Okay, so I'm Troy Watson 14 from Navigant. We're starting off with the market 15 and technology assessment. That's the first step 16 in the preliminary analysis that DOE conducts as 17 the second stage in the rulemaking. The first 18 stage was the framework document, which was 19 released back in August of 2012. 20 So the purpose of the market and 21 technology assessment is to lay the groundwork for 22 the analyses that DOE conducts further downstreamCapital Reporting Company

Residential Dehumidifier Test Procedures Docket No.: EERE-2014-BT-STD-0027 06-13-2014



### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 12 1 that kind of give a background on the whole market 2 and industry. It identifies the players in the 3 market and identifies technology options for 4 improving the efficiency of dehumidifiers. 5 So, in this presentation, we're just 6 going to touch on a couple of items in the market 7 and tech assessment, but the full set of 8 information is available in the technical support 9 document that was published with the preliminary 10 analysis, and this is chapter 3 of that document. 11 So, starting off, first DOE defines 12 product classes. When considering rulemakings, 13 DOE can divide covered products into product 14 classes based on type of energy used or capacity 15 or any other performance related features that may 16 affect efficiency. And so, as Ashley pointed a 17 couple of slides ago, the existing standards are 18 based on product capacity. And so for this 19 preliminary analysis, DOE also conducted its 20 analysis on different product classes based on 21 product capacity. And, as you can see here, they 22 are different from the existing product classesCapital Reporting Company

Residential Dehumidifier Test Procedures Docket No.: EERE-2014-BT-STD-0027 06-13-2014



### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 13 1 and this is because of the proposed changes to the 2 test procedure that Nadav and Andrew went through 3 this morning. 4 And the main effect of that test 5 procedure is the lower ambient condition which 6 results in lower measured product capacities. So, 7 as you can see here, these are the new product 8 classes that DOE analyzed for this preliminary 9 analysis. 10 And as we discussed this morning, DOE is 11 also considering covering whole-home products as a 12 separate product type. In this preliminary 13 analysis, DOE analyzed whole-home products based 14 on two product classes, based on case volume, not 15 on product capacity. And during its analysis, DOE 16 became aware that certain whole-home products have 17 certain installation restrictions based on where 18 they're installed in the house. So, for example, 19 products may be installed in an attic or a 20 crawlspace or a utility closet because they can be 21 ducted to the conditioned space. 22 And so, in its research, DOE found thatCapital Reporting Company

Residential Dehumidifier Test Procedures Docket No.: EERE-2014-BT-STD-0027 06-13-2014



### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 14 1 a product case volume of around 8 cubic feet is an 2 appropriate split to account for products that 3 would have to be installed in the space4 constrained locations. And the reason for 5 splitting out these product classes is because 6 those smaller products may not be able to 7 incorporate certain features to achieve higher 8 efficiencies, so they may not have room in the 9 case to account for larger heat exchangers or, 10 possibly, inlet air-to-air heat exchanges, things 11 like that. 12 So at this point DOE invites comment and 13 recommendations from interested parties on the 14 proposed product classes and the differentiation 15 for portable products on capacity and whole-home 16 units based on case volumes. 17 MR. BROOKMAN: John? 18 MR. BLOEMER: John Bloemer. Very good 19 at DOE recognizing the application and picking the 20 volume as an initial unit of measure because that 21 is one of the restrictions on whole-home 22 dehumidifiers is where they're installed in theirCapital Reporting Company

Residential Dehumidifier Test Procedures Docket No.: EERE-2014-BT-STD-0027 06-13-2014



### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 15 1 location, not so much their capacity. So that's a 2 good starting point for a breaking point. 3 In the analysis, was there any 4 relationship to that breaking point to capacity? 5 I mean, were things bigger in this--typically--the 6 150 pint per day units? 7 MR. WATSON: I think, generally 8 speaking, there probably is a relationship to 9 capacity, but off the top of my head I'm not sure 10 what that would be at that break point. 11 MR. BLOEMER: Okay, and where was 8 12 cubic feet picked? Was it the middle point? Was 13 it-- 14 MR. WATSON: I think it was based on a 15 review of products available on the market, if 16 they were identified as being able to be installed 17 in these locations. We noted that--or DOE would 18 note that. But because this is a preliminary 19 analysis phase, DOE definitely welcomes comment on 20 whether that case volume is appropriate, what 21 manufacturers or other stakeholders have observed 22 as the typical constraints for these types ofCapital Reporting Company

Residential Dehumidifier Test Procedures Docket No.: EERE-2014-BT-STD-0027 06-13-2014



### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 16 1 products, and on whether capacity would be a 2 better differentiator there. 3 MR. BROOKMAN: Joanna Mauer is joining 4 us via online. Joanna, please speak. 5 MS. MAUER: Thanks. I understand that 6 DOE found that there's no inherent relationship 7 between capacity and efficiency for portable 8 dehumidifiers that at least holds less than 45 9 pints per day. So, if that's the case, I'm 10 wondering if you can explain a little more about 11 what the rationale is for having more than just a 12 single product class for portable dehumidifiers 13 less than 45 pints per day. 14 MR. WATSON: Sure. So DOE did consider 15 combining portable products into one product class 16 and then maybe considering efficiency requirements 17 based on formula or one flat standard across the 18 board. But in its analysis, DOE also observed 19 that manufacturers typically offer their range of 20 products on either one or two discrete product 21 platforms. So they may offer five or six 22 different products within only one or twoCapital Reporting Company

Residential Dehumidifier Test Procedures Docket No.: EERE-2014-BT-STD-0027 06-13-2014



### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 17 1 different case sizes or chassis sizes. And so, by 2 maintaining the separate product classes, DOE was 3 able to consider the impacts of different 4 efficiency levels on individual manufacturers. 5 So, for example, if one manufacturer 6 produces a 50-pint per day product on a small 7 chassis, where their heat exchangers are kind of 8 maxed out for that product case, for them 9 increasing efficiency would require a big step and 10 associated costs to account for larger cases, a 11 different chassis size. Whereas another 12 manufacturer, if they produce their 50-pint per 13 day product on a larger product platform, the 14 impact for them of increasing efficiency might be 15 a little bit less. For example, they might have 16 room to increase heat exchanger sizes more easily 17 than the other manufacturer. So by maintaining 18 the discrete product classes, DOE was able to 19 account for these effects from manufacturer to 20 manufacturer when developing its cost numbers 21 later on in the engineering analysis. 22 MS. MAUER: Okay.Capital Reporting Company

Residential Dehumidifier Test Procedures Docket No.: EERE-2014-BT-STD-0027 06-13-2014



### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 18 1 MR. WATSON: Like I said before, since 2 this is a preliminary analysis phase, DOE 3 definitely welcomes comment on whether the 4 separate product classes are appropriate here or 5 on how it could consider combining into one 6 product class. 7 MS. MAUER: Okay. And if I could just 8 ask one more question? Did DOE preliminarily 9 determine that there is some consumer utility 10 associated either with smaller capacities or 11 smaller chassis sizes? 12 MR. WATSON: I don't think DOE made a 13 determination on that specific issue, but would 14 welcome feedback on whether either manufacturers 15 or anyone else is aware of that being a feature 16 that consumers are looking for. 17 MS. MAUER: Okay, thank you. 18 MR. BROOKMAN: Thank you. Additional 19 comments here? These product classes, they're 20 important. 21 (No response.) 22 MR. BROOKMAN: Okay.Capital Reporting Company

Residential Dehumidifier Test Procedures Docket No.: EERE-2014-BT-STD-0027 06-13-2014



### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 19 1 MR. WATSON: Okay, so moving on in the 2 market and tech assessment. This slide and the 3 next slide just kind of give an overview of where 4 the market is. DOE has identified 25 brands of 5 dehumidifiers currently available on the market. 6 On the left side here we show the market for 7 portable units and, as you can see, it's a fairly 8 distributed market between some of the major 9 brands. 10 For the whole-home side of things, and 11 also the high-capacity portable dehumidifiers, 12 there are eight brands participating in that 13 market, with two companies accounting for the 14 majority of the market. 15 So, from the players in the market to 16 the units available on the market, this slide 17 shows a distribution of the products currently 18 available and this is in terms of both the 19 capacity and energy factor of those products. And 20 this is based on the certified units in DOE's 21 certification database. And, as you can see here, 22 also, Energy Star does have qualification criteriaCapital Reporting Company

Residential Dehumidifier Test Procedures Docket No.: EERE-2014-BT-STD-0027 06-13-2014



### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 20 1 for residential dehumidifiers. 2 So, moving from the market side of 3 things to the technology side, this just gives a 4 brief overview of how dehumidifiers function. I'm 5 sure most of you here in the room are already 6 aware of this, but just quickly, humid air enters 7 the unit and hits a cold evaporator where it's 8 cooled to its dew point or lower, where water 9 condenses off, it's collected in the condensate 10 bin or it could be drained away from the unit. 11 The dry air then moves over the hot condenser, 12 where it's heated up back above its original 13 inlet condition, and it's exhausted into the room 14 as drier air. 15 So in the August 2012 framework 16 document, DOE identified a number of technology 17 options that could be used to improve the 18 efficiency of dehumidifiers. And in this 19 preliminary analysis DOE maintains those same 20 technology options here. I won't read through the 21 whole list, but they're mostly associated with 22 improving motor efficiencies, effectiveness ofCapital Reporting Company

Residential Dehumidifier Test Procedures Docket No.: EERE-2014-BT-STD-0027 06-13-2014



### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 21 1 heat transfer, or different control strategies to 2 help control efficiencies. 3 MR. BROOKMAN: We have a question from 4 someone online who asks, with proposed timeline 5 and Federal Register for March 2017, does it mean 6 that the effective date of implementation will be 7 2020? 8 MS. KOHL: I'm sorry, could you repeat 9 that? 10 MR. BROOKMAN: Yes, with a proposed 11 timeline and Federal Register for March 2017, does 12 it mean that the effective date of implementation 13 will be 2020? 14 MS. KOHL: Is that for the proposed 15 rule? 16 MR. WATSON: I think that's the final 17 rule expected. 18 MS. KOHL: Yeah, they're typically three 19 years. 20 MR. BROOKMAN: Oh, it says "FR," so I 21 guess that is "final rule," yes. 22 MS. KOHL: Our typical--Bryan can jumpCapital Reporting Company

Residential Dehumidifier Test Procedures Docket No.: EERE-2014-BT-STD-0027 06-13-2014



### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 22 1 in as he sees fit, but our typical compliance date 2 lag is three years. 3 MR. BROOKMAN: Okay, thank you. 4 MR. WATSON: Okay, so I don't know if we 5 discussed this earlier, but this just outlines all 6 the different analyses that DOE conducts as part 7 of its preliminary analysis. So we covered the 8 market and technology assessment, the next step 9 here is the screening analysis. 10 So, as part of the screening analysis, 11 DOE identifies any technologies that it will 12 eliminate from further consideration in its 13 analysis. And 14 DOE does this based on four criteria. 15 These are: 16 technological feasibility; 17 practicability to manufacture, install, and 18 service; impacts on product utility to consumers; 19 and safety of technologies. And more details on 20 the requirements of these criteria are included in 21 chapter 4 of the 22 TSD.Capital Reporting Company

Residential Dehumidifier Test Procedures Docket No.: EERE-2014-BT-STD-0027 06-13-2014



### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 23 1 So, based on this screening analysis, 2 DOE screened out pre-cooling, air-to-air heat 3 exchangers and heat pipes for the portable 4 dehumidifier product classes with capacities up to 5 45 pints per day. And DOE eliminated these design 6 options because incorporating these design 7 features, DOE estimates, would roughly require a 8 doubling of case volumes to accommodate the 9 additional heat exchangers. And so this would 10 result in adverse impacts on product utility to 11 consumers, the third item up in that four-criteria 12 factors. And more information on the screening 13 analysis is in chapter 4 where DOE explains 14 further why these items were screened out. 15 So, I guess at this point any additional 16 comments on technology options or appropriate 17 screening? 18 MR. BLOEMER: John. When you were 19 screening, did you look at the compressor 20 technology for the larger dehumidifiers and its 21 limited availability? Because where I'm going 22 with this is, the compressor sizes typically forCapital Reporting Company

Residential Dehumidifier Test Procedures Docket No.: EERE-2014-BT-STD-0027 06-13-2014



### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 24 1 those larger ones do not have a lot of new 2 technology and sizes available to them, so any 3 changes in efficiency become very expensive to the 4 manufacturer, through either increasing coil sizes 5 or some things as expensive as you have looked at 6 with the air-to-air exchangers or wrap-around 7 coils. So it does limit those larger capacity 8 units on what's really available for us to option 9 to maximize energy efficiency. 10 MR. WATSON: Yes, so, for the whole-home 11 units, we did consider compressor efficiencies, 12 coil changes, and things like inlet heat 13 exchangers, and the engineering analysis will 14 describe that further. And, like you said, some 15 of the costs are higher for whole-home units, and 16 I think the estimates DOE came up with for the 17 whole-home product categories reflect that. And, 18 yeah, we'll discuss that a few slides down. 19 MR. WATSON: All right, so now we're 20 moving on to the engineering analysis. You can 21 see this is where everything kind of branches off 22 for the downstream analyses that DOE conducts.Capital Reporting Company

Residential Dehumidifier Test Procedures Docket No.: EERE-2014-BT-STD-0027 06-13-2014



### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 25 1 The purpose of the engineering analysis is to 2 evaluate the different design options that can 3 affect efficiency. And the output of this is a 4 relationship between manufacturer production cost 5 and the improved efficiency of dehumidifiers. 6 And then you can see that feeds into the 7 downstream analyses listed there and shown on the 8 previous diagram. For this engineering analysis, 9 DOE followed this basic process, so 10 first two steps for testing: selecting units and 11 then testing units. After testing, DOE considered 12 appropriate efficiency levels to consider. After 13 that, DOE tore down products from its test sample. 14 After that, DOE used a numerical model to 15 supplement its test sample, and then finally, DOE 16 developed the cost-efficiency curves. And so 17 we'll go through each of these in a bit more 18 detail here. And the engineering analysis is 19 chapter 5 of the TSD, which contains a lot more 20 detail than we're providing here in the 21 presentation. 22 So, for testing, DOE selected 39 units,Capital Reporting Company

Residential Dehumidifier Test Procedures Docket No.: EERE-2014-BT-STD-0027 06-13-2014



### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 26 1 including portable units, high-capacity portable 2 units, whole-home units, including refrigerant3 only whole-home units, and also two refrigerant 4 desiccant whole-home units. And DOE selected 5 these units to cover the range of product 6 capacities and efficiencies available on the 7 market. 8 And I should also note here that these 9 are the same units that were used in the testing 10 and support of the test procedure proposal that 11 Nadav and Andrew discussed this morning. And as 12 part of that testing DOE tested at both the 80- 13 degree and 65-degree conditions. It's from this 14 testing that DOE determined appropriate efficiency 15 levels to analyze. 16 You can see here, the top table provides 17 efficiency levels at 80 degrees Fahrenheit and the 18 bottom provides efficiency levels based on the 65- 19 degree test condition. And I think it's important 20 to note here that all the analysis was conducted 21 based on the efficiency levels under the proposed 22 test conditions, so that would be the 65-degreeCapital Reporting Company

Residential Dehumidifier Test Procedures Docket No.: EERE-2014-BT-STD-0027 06-13-2014



### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 27 1 conditions. But the top table is there just kind 2 of as a reference because I know these numbers 3 aren't really--they don't mean much now because 4 people aren't familiar with them. 5 And one other thing to note here is the 6 first two efficiency levels: baseline with fan 7 only mode and baseline without fan only mode. And 8 I think it was Andrew who went through this 9 earlier. DOE is proposing to include fan only 10 mode in its new Appendix X-1 test procedure. So, 11 to account for fan only mode, DOE revised its 12 baseline to decrease IEF to account for energy 13 consumption in that mode. 14 So you can see on the top table, 15 Efficiency Level 1 generally corresponds to the 16 existing DOE energy conservation standards for 17 dehumidifiers. But the baseline in the table 18 accounts for a worst-case fan only mode scenario. 19 And that's the same for the bottom table here at 20 the 65-degree conditions. 21 These tables are similar to the previous 22 slide, but they show the efficiency levels DOECapital Reporting Company

Residential Dehumidifier Test Procedures Docket No.: EERE-2014-BT-STD-0027 06-13-2014



### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 28 1 analyzed for high-capacity portable and whole-home 2 dehumidifiers. One thing to note here is there is 3 no similar jump for fan only mode. And that's 4 because in its test sample, DOE didn't observe any 5 products in these product classes that 6 incorporated that fan only mode. So I think DOE 7 would be interested to hear if products in these 8 categories do, in fact, include a fan only mode 9 and whether DOE's efficiency levels should account 10 for that. But otherwise, the efficiency levels are 11 based on the test data for the 13 whole-home and 12 high- capacity portable units that DOE tested. 13 MR. BROOKMAN: Do you want to comment? 14 MR. BLOEMER: Yes. The products that 15 I'm aware of don't have a fan only mode, where it 16 would just be sending air through the dehumidifier 17 unit. What we do is we control a whole-house fan. 18 So what we promote is stirring of air inside the 19 home. And so that's where I was saying we control 20 two fans, one will control your whole-house and 21 one will control your dehumidifier fan. So right 22 now I'm not aware of a product that, by itself,Capital Reporting Company

Residential Dehumidifier Test Procedures Docket No.: EERE-2014-BT-STD-0027 06-13-2014



### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 29 1 tries to run in constant mode. But we do promote 2 running your house in some type of cycling mode, 3 that fan. So it's kind of a gray area there, 4 what's intended on fan only mode is. 5 MR. WATSON: So in terms of looking at 6 just the dehumidifiers, is there anything specific 7 DOE should consider related to any different 8 technologies that those sort of units incorporate? 9 MR. BLOEMER: I'm not sure I quite 10 understand your question? 11 MR. WATSON: I guess in terms of testing 12 or looking at the engineering analysis, is there 13 something inherent to the products that control 14 two fans as opposed to one? That would lead to 15 either different performance or different 16 production cost? 17 MR. BLOEMER: I guess what was discussed 18 earlier was, if you're looking at the unit just as 19 it's dehumidifying and consider just its fan use, 20 that is probably the cleanest versus some of the 21 units will control that whole-house fan and, for 22 example, during the dehumidification, will turn itCapital Reporting Company

Residential Dehumidifier Test Procedures Docket No.: EERE-2014-BT-STD-0027 06-13-2014



### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 30 1 on because you're trying to get that dehumidified 2 air circulated through the house, so it's 3 controlling two fans. And that external fan then 4 varies greatly depending upon the HVAC equipment 5 it's attached to. So how you would rate its 6 energy use becomes very complex. 7 So, to me the simplest approach is to 8 say, that unit sitting there by itself and its 9 energy use would be the way to rate it. Does that 10 answer it? 11 MR. WATSON: Yeah, I think so. Thank 12 you. Any other comments on these or the previous 13 efficiency levels for portable units? Okay. 14 After developing the efficiency levels, 15 DOE conducted product tear-downs on all of the 16 units in its test sample. So from these product 17 tear-downs DOE developed manufacturer production 18 costs by disassembling all the dehumidifiers and 19 creating detailed bills of materials. And these 20 bills of materials described each product 21 component, including materials, any purchased part 22 cost, any process costs used to assemble the unit,Capital Reporting Company

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### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 31 1 different labor and capital requirements, and any 2 overhead costs that would be associated with the 3 product. And, again, chapter 5 of the TSD 4 provides a lot more detail on the cost modeling 5 process. 6 So, doing these product tear-downs, DOE 7 observed that manufacturers typically used three 8 design options to increase dehumidifier 9 efficiencies. And these are increased compressor 10 efficiencies, improved condenser and evaporator 11 performance, or incorporating a pre-cooled air-to12 air heat exchanger. 13 So DOE really looked at these three 14 design options when conducting its engineering 15 analysis. So DOE didn't specifically consider the 16 remaining design options that met the screening 17 criteria, but they would be captured in the 18 engineering analysis because either all products 19 already incorporate those design options--and that 20 would be true for things like built-in humidistat 21 or washable air filters; products already 22 incorporate those across the board--or because theCapital Reporting Company

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### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 32 1 design options would be captured in DOE's tear2 down process. 3 So that would apply for things like 4 insulation on the refrigeration system, where DOE 5 doesn't have a good estimate for the efficiency 6 gains associated with adding more insulation to a 7 product, but in its tear-down sample, DOE 8 accounted for insulation and would reflect that 9 cost in its bills of materials and then, during 10 its testing, that would capture any efficiency 11 gains associated with that design option. So it 12 didn't specifically consider those design options, 13 but they're captured in the engineering analysis. 14 And then, finally, DOE is aware that the 15 current DOE test procedure may not capture the 16 potential improvements associated with certain 17 design options, and these are all design options 18 that are associated with varying the ambient 19 conditions and the unit adjusting to that. And so 20 DOE specifically would like some comment on that 21 and whether it should consider these design 22 options in its engineering analysis.Capital Reporting Company

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### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 33 1 And these are things like improved 2 controls, different flow control devices for the 3 refrigeration, and variable speed compressors. 4 MR. BROOKMAN: Joanna Mauer has a 5 question or comment. Go ahead, Joanna. 6 MS. MAUER: I'm sorry to go back for 7 just a second to the efficiency levels. I had two 8 questions on those. One was, I was wondering if 9 you could just explain a little bit about why we 10 see such a big difference between the highest 11 efficiency levels for the two whole-home product 12 classes? 13 MR. WATSON: Yeah, so I think that's 14 tied back to the differentiation for the two 15 product classes. The smaller case volumes do not 16 have as much room to incorporate large heat 17 exchangers or inlet air-to-air heat exchangers, so 18 those are limited in terms of the design options 19 they can use to improve efficiency. And I think 20 that's the primary reason for the different 21 maximum available efficiencies. 22 MS. MAUER: Okay. And my understandingCapital Reporting Company

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### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 34 1 is that in the preliminary analysis, the max-tech 2 levels represent the maximum available efficiency 3 levels today and I was just wondering whether you 4 evaluated whether there's room to improve the 5 efficiency of the most efficient products 6 available today. 7 MR. WATSON: I'm not aware off the top 8 of my head, but DOE would welcome comment on 9 whether you think there's room to improve on these 10 maximum available efficiencies. I believe these 11 listed at- -the 80-degree conditions represent the 12 maximum available on the market. 13 MS. ARMSTRONG: So this is Ashley. I'm 14 going to clarify and then Judy and Troy can tell 15 me if I'm wrong. But I think the answer to your 16 direct question, Joanna, is no. We didn't do 17 modeling for prototype or what could be available 18 in the future beyond those that are commercially 19 available now. 20 MS. MAUER: Thank you. 21 MR. WATSON: Yeah, that's correct. 22 MR. BROOKMAN: Okay, thank you.Capital Reporting Company

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### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 35 1 MR. WATSON: But, having said that, as 2 I'll discuss a little later on, we did do some 3 modeling so manufacturers across the board don't 4 offer products at the max-tech level or maximum 5 available. And we did consider the changes the 6 different manufacturers would have to make in 7 order to achieve that level. 8 MS. MAUER: The max-tech level, right, 9 is independent of-- 10 MR. WATSON: Yes, I meant maximum 11 available. 12 MS. MAUER: --maximum projection from 13 what level might be appropriate for a standard. 14 MR. WATSON: Yeah, I meant maximum 15 available for that portion of the analysis. 16 MR. BROOKMAN: Let's go back to the 17 comment box. Questions, comments related to this 18 comment box? Design options and referring again 19 to active mode under continuous operation. Here 20 comes John. 21 MR. BLOEMER: Again, if the purpose of 22 this standard is to be able to compare product toCapital Reporting Company

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### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 36 1 product in lab conditions, it goes there. But 2 there's something about in-use conditions that I 3 don't think no one understands yet. Lawrence 4 Berkley was doing a study where they tested some 5 dehumidifiers--a portable and a whole-house--and 6 what they saw was different energy use, even 7 though the energy factors were similar because of 8 cycling and control logic, and everything like 9 that. 10 We actually, coincidentally, have been 11 doing the same testing in a basement where we 12 compared portables to whole-house and there was a 13 very substantial difference in energy use because 14 of control logic, sensing technology, airflow 15 movement, all combined. So if the goal of the 16 thing is to try to provide the best methods to 17 reduce energy use in application, there's a lot 18 more study that needs to go on. 19 If the goal is to just be able to give 20 us a benchmark to say, under these conditions, 21 under this use, this one does X, it does it. But 22 it may be shortsighted in that it forces certainCapital Reporting Company

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### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 37 1 technology to be used, versus giving up on 2 something like an energy factor for better control 3 methods, that provide lower energy use in the 4 actual application. 5 So it's just guidance. I don't have an 6 answer there, just some guidance. 7 MR. BROOKMAN: Okay, thanks, John. 8 MR. WATSON: Yeah, and, you know, it 9 would be great if you say you're conducting your 10 own study, if you could provide any information, 11 that would be helpful. 12 MR. BLOEMER: Yeah, we did the study. I 13 could share it, but it's kind of put together for 14 internal use now. It's not put together that I 15 could hand it out, but I know Dean Christianson at 16 NREL was doing some study and he shared a little 17 bit of it with me. 18 MR. BROOKMAN: Okay. So you could 19 either- -if you could submit your study and you 20 could do it confidentially to Navigant, if you 21 wanted to do that, or it could be a part of the 22 docket, either way. Okay, Jen?Capital Reporting Company

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### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 38 1 MS. CLEARY: This wasn't discussed in 2 detail, but I think it's in the same chapter, so 3 I'm going to ask the question now. Regarding the 4 cost estimates, I was just wondering if DOE could 5 provide some more information on how it determined 6 that a 3,000 BTU per hour compressor would be 7 estimated to cost less than $7. I'm not 8 challenging or anything, I'm just wondering how 9 you reached that estimate. 10 MR. WATSON: So I think, off the top of 11 my head, I think all of the compressor estimates 12 relied on the estimates that were used in the room 13 AC rulemaking. And they had a cost curve based on 14 capacity, but I know it dropped of pretty 15 significantly at the low end. I think they 16 specified capacities down to 5,000 BTU and some of 17 these dehumidifier capacities go lower than that. 18 And DOE lacked reliable information on the 19 compressor prices for manufacturers, so it relied 20 on that room AC curve where it could. And below 21 that, it just linearly extrapolated. 22 So if anybody has input as toCapital Reporting Company

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### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 39 1 appropriate compressor prices in that region of 2 the curve especially, DOE would definitely welcome 3 that, as well as whether the curve used for that 4 room air- conditioner rulemaking is appropriate. 5 MS. CLEARY: Thank you. 6 MR. BROOKMAN: Brice? 7 MR. BOWLEY: I was just going to say, in 8 regard to the curve, I mean, because room air9 conditioners rarely only go down to 5,000, I think 10 the curve is probably only valid down to the 5,000 11 BTUs. 12 MR. BROOKMAN: Okay, thank you. 13 MR. WATSON: Okay, so after tear-downs, 14 DOE was aware that its tear-down sample didn't 15 cover the entire range of products available on 16 the market, so it didn't cover all of the 17 different capacities and efficiencies that all the 18 different manufacturers currently produce. So to 19 fill in any gaps in its analysis, DOE used a 20 numerical model to simulate the changes that would 21 be required to meet the different efficiency 22 levels at the different capacities.Capital Reporting Company

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### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 40 1 And so this numerical model was based on 2 the MarkN program that was used for the room air3 conditioner's direct final rule that was released 4 in 2011. DOE modified this program to switch its 5 performance from room air-conditioner to a 6 dehumidifier by taking the condenser inlet air 7 conditions and setting them equal to the 8 evaporator outlet air conditions. So that 9 effectively takes the two separate air streams 10 that you'd have for a room air-conditioner and 11 makes it one air stream through the unit, as the 12 dehumidifier diagram that I showed included. 13 And then when using this model to 14 achieve different efficiencies, DOE would first 15 improve compressor efficiency before making 16 changes to the heat exchanger sizes. And DOE did 17 this because it expects manufacturers would try to 18 keep products in the same product platform before 19 making changes to things like the case or the 20 chassis size. 21 And I should say here, DOE then 22 developed costs for each of these modeled unitsCapital Reporting Company

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### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 41 1 and it did that by taking the unit in the tear2 down sample that served as the basis for the model 3 and then changed any relevant components so it 4 would include costs for a more efficient 5 compressor, lighter heat exchangers, and then any 6 changes that would be required to the product 7 associated with the heat exchanger sizing, so the 8 case sizing and the sizing of pretty much any 9 other components that would change based on that. 10 So, using the tear-down models and the 11 modeled units, DOE created cost-efficiency curves 12 for the major manufacturers. DOE combined the 13 manufacturer curves based on estimated market 14 shares to get a weighted average cost-efficiency 15 curve for the entire industry, so this just kind 16 of gives a cartoon of what that looks like. 17 So these are the results DOE came up 18 with for the portable product classes: up to 45 19 pints per day and, as you can see, there's no cost 20 associated with moving from baseline to Efficiency 21 Level 1 because that is associated with just 22 removing the fan only mode. DOE doesn't expectCapital Reporting Company

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### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 42 1 there would be any manufacturer production costs 2 associated with that. 3 Beyond that you can see the manufacturer 4 production costs increase by roughly $10 to get to 5 the maximum available level. For the high6 capacity portable products and whole-homes, you 7 can see there's not the same jump from baseline to 8 EL1 because of the lack of fan only mode, as I 9 discussed earlier. 10 And you can also see here that costs are 11 about an order of magnitude larger for these 12 product classes and that's due to some of the 13 things you mentioned before about different, 14 larger heat exchangers, larger compressors. And 15 oftentimes these units have metal cases instead of 16 plastic cases, so the expense with increasing case 17 size is much greater than for some of the other 18 portable products. 19 So that brings us to the end of the 20 engineering analysis, and DOE would welcome 21 comments on these cost-efficiency estimates. 22 MR. BROOKMAN: Yes, Brice, please?Capital Reporting Company

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### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 43 1 MR. BOWLEY: Going back to the fan and, 2 basically, Efficiency Level 1. Again, I don't 3 disagree that the cost to get there--it's a very 4 low cost to get there. It's basically software 5 changes, but we're doing it at the cost of defrost 6 time at lower temperatures, with stability of the 7 humidity in the whatever environment, and any 8 stagnation of the air. So Efficiency Level 1, I 9 agree with the cost, but I think it comes at the 10 cost of consumer utility. 11 MR. BROOKMAN: Okay, Joanna Mauer has a 12 comment. 13 MR. WATSON: I'm sorry, can I just 14 follow up quick with that? 15 MR. BROOKMAN: Well, please do, yeah. 16 MR. WATSON: It sounds like some of the 17 changes you described for moving to Efficiency 18 Level 1 may be conversion costs. And DOE would be 19 interested to know what sort of costs are 20 associated with the software change and things 21 like that, that are kind of independent of the 22 manufacturer production costs.Capital Reporting Company

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### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 44 1 MR. BOWLEY: Okay. 2 MR. BROOKMAN: Good. Joanna, you're 3 next. 4 MS. MAUER: Thanks, I had a few 5 questions related to a few of the design options, 6 that were incorporated in the engineering analysis. 7 My first question is, is there an assumed standby 8 power that's incorporated in the IEF level? 9 MR. WATSON: Yes, so the IEF levels do 10 account for standby and off-mode power 11 consumption. These at 65 degrees are based on the 12 test results that DOE had from its test sample, 13 and those included standby and off-mode energy 14 consumption. 15 MR. BOWLEY: Brice Bowley-- 16 MS. MAUER: I guess I'm asking because I 17 think you--that the analysis doesn't incorporate 18 reduced standby power as a design option, which I 19 think is okay as long as the standby power levels 20 assumed at each of the efficiency levels are low. 21 And I think the energy study that the DOE cited 22 and the TSD found standby power levels for someCapital Reporting Company

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### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 45 1 products to be as high as, I think, 12 watts. 2 I guess I just want to make sure that 3 there aren't high standby power levels 4 incorporated in the IEF levels, if that makes 5 sense? 6 MR. WATSON: Yeah, in its test sample, 7 DOE saw mostly low standby power. I think they 8 were all generally under one watt. And these IEF 9 levels and costs would reflect the controls 10 associated with that range of standby power 11 consumption. 12 MS. MAUER: Okay, and then I was 13 wondering whether DOE analyzed what the savings 14 might be from permanent magnet fan motors. I 15 understand that the savings would be much smaller 16 than savings from improvements to compressor 17 efficiency or heat exchangers, but I was wondering 18 whether DOE found that the savings would really be 19 trivial or whether you analyzed what the savings 20 might be from permanent magnet fan motors. 21 MR. WATSON: No. DOE didn't conduct any 22 analysis specific to that. I think in all of ourCapital Reporting Company

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### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 46 1 information we identified that that wouldn't be an 2 option manufacturers would pursue to improve 3 efficiencies, but if there are estimates of gains 4 that could be achieved using that, DOE would be 5 interested to hear about that. 6 MR. BROOKMAN: Brice? 7 MS. MAUER: It sounds like perhaps--I'm 8 sorry. 9 MR. BROOKMAN: No, keep going, Joanna. 10 I'm sorry. 11 MS. MAUER: Perhaps that could be 12 modeled in the modeling software? And I think we 13 just encouraged you to include that as a design 14 option, unless, as I said, the savings are really 15 trivial. 16 And then my last question on heat 17 exchanger improvements. I think the TSD says that 18 there are other potential heat exchanger 19 improvements, but that increasing cross-sectional 20 area had the largest impact, and I was just 21 wondering whether you evaluated those other 22 potential heat exchanger improvements.Capital Reporting Company

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### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 47 1 MR. WATSON: Yeah, so in the modeling 2 process we looked at things like adding rows to 3 the heat exchanger and, I think, changing the fins 4 spacing and things like that, but the results 5 showed that those didn't have a very significant 6 impact on performance when you compare it to the 7 cross-sectional area of the heat exchangers. So 8 DOE assumed manufacturers would go with that route 9 in improving efficiencies. Judy? 10 MS. REICH: Hi, it's Judy Reich. I also 11 wanted to add that--supporting what Troy is 12 saying. DOE conducted interviews and discussions 13 with manufacturers who confirmed that the 14 approaches that were estimated for obtaining those 15 cost curves were ones that manufacturers were 16 likely to take. 17 MR. BROOKMAN: Okay, thank you, Judy. 18 Joanna, are those all of your questions for now? 19 MS. MAUER: Yes, thank you. 20 MR. BROOKMAN: Thank you. Brice? 21 MR. BOWLEY: Yeah, I just wanted to 22 comment, UL 474 has a new requirement for AFCIsCapital Reporting Company

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### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 48 1 which will increase the standby power consumption 2 of the units. 3 MR. BROOKMAN: AFCIs? 4 MR. BOWLEY: Arc fault circuit 5 interrupter. 6 MR. BROOKMAN: Okay. 7 MR. BOWLEY: So that's February 6th of 8 2015, so expect units with the AFCIs to go up by 9 about half a watt standby power. 10 MR. BROOKMAN: Okay. Yes, John? 11 MR. BLOEMER: A question and you can let 12 me know if it's answered later. Being fairly new 13 to this, I don't clearly understand the difference 14 between the DOE level and the Energy Star level 15 because right now, if you look at these numbers 16 and what's being proposed, there's only about 11 17 percent difference in efficiency between these. 18 If Energy Star, in my opinion, is to promote the 19 best technology at the best value, why is the gap 20 so close versus pushing one to the other because 21 they're really right on top of each other as a 22 manufacturer.Capital Reporting Company

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### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 49 1 MR. BROOKMAN: Ashley Armstrong? 2 MS. ARMSTRONG: So one of the things I'm 3 going to point out is, I think there's--probably 4 I'm just speaking off the cuff here, but I think 5 there's significant different compliance dates. 6 Typically, when DOE revises its minimum standards, 7 subsequently down the road, Energy Star will also 8 revise its levels and you will once again, with 9 the same compliance dates, see a larger difference 10 between the units. But part of it will depend 11 upon on what are the available efficiencies in the 12 unit, what are the design options being in, the 13 individual cost-benefit analysis that each agency 14 does consistent with our statutory criteria area 15 and consistent with their guiding principles. 16 So I think the latest dehum one, the 17 latest revision is in response to their new levels 18 that came in with the 2012 levels and responding 19 to them. And then my guess is they also are 20 seeing this analysis at the same time you are, so 21 my guess is down the road, when compliance with 22 standards is required, if it is, in fact, requiredCapital Reporting Company

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### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 50 1 in the future with amended standards, they would 2 also revise their levels accordingly. 3 MR. BLOEMER: The difference isn't that 4 much. The difference if you use today's standards 5 isn't that great either. So, I mean, the intent 6 is to shift it, but it's not being shifted, the 7 way I look at it. And so from a consumer's 8 standpoint and from a manufacturer's standpoint 9 are we truly providing choices and differentiation 10 to either promote an Energy Star level that does 11 promote using the latest technology or guidance on 12 cost? 13 MS. ARMSTRONG: Sure. I mean, DOE works 14 with EPA on the Energy Star program. It's a joint 15 program: they set levels and we set test 16 procedures. But that's definitely a conversation 17 we can engage in. 18 MR. BLOEMER: Okay. 19 MR. BROOKMAN: Thank you. 20 MR. BLOEMER: Thank you. 21 MR. WATSON: Okay, last call on the 22 engineering analysis? Okay, well, I'll turn itCapital Reporting Company

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### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 51 1 over to Nicole to go over the Preliminary 2 Manufacturer Impact Analysis. 3 MS. BUCCITELLI: All right, I'm Nicole. 4 I just have a couple of slides. So, just to 5 provide a bit of an overview, EPCA specifies that 6 DOE must consider seven factors in determining 7 whether new or amended standards are economically 8 justified. 9 So the Manufacturing Impact Analysis, 10 which is also MIA, assesses the economic impact of 11 standards on manufacturers and also the impact on 12 industry competition, both of which are among the 13 specific factors that DOE must analyze. 14 Additionally, in the MIA, DOE identifies 15 and estimates impacts on manufacturer sub-groups 16 that may be disproportionately impacted by 17 proposed standards. DOE also assesses impacts on 18 direct employment, manufacturing capacity and 19 cumulative regulatory burdens. 20 In a bit more detail, MIA can be broken 21 down into three phases of analysis. In the first 22 phase DOE builds off the information that'sCapital Reporting Company

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### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 52 1 developed in the market and tech assessment and 2 supplements this with additional market research 3 in order to create a profile for the industry. 4 During this phase DOE also identifies important 5 issues which require further investigation. In 6 Phase 2 DOE develops a preliminary industry cash 7 flow model using the information compiled in Phase 8 1, as well as initial inputs from engineering and 9 shipments analyses. 10 DOE during this time also prepares an 11 interview questionnaire which serves as the basis 12 of discussions with manufacturers. In Phase 3, 13 DOE interviews manufacturers and uses information 14 obtained from these interviews to refine the GRIM 15 and to qualitatively assess impacts on employment, 16 competition, manufacturing capacity, and 17 cumulative burdens. 18 During preliminary manufacturer 19 interviews DOE tries to get a feel for what 20 manufacturers see as the key issues related to the 21 rulemaking for both their business and the 22 industry as a whole. So, the following are theCapital Reporting Company

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### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 53 1 primary key issues brought up by manufacturers. 2 One, some manufacturers expressed concern 3 that higher prices resulting from having to comply 4 with standards could effectively price out a 5 segment of consumers. This type of impact could 6 be particularly severe in the whole-home segment 7 due to the two-tier distribution structure of that 8 segment. 9 Manufacturers worry that size 10 constraints for certain whole-home dehumidifier 11 applications place limits on manufacturers' 12 ability to make efficiency improvements to their 13 products, and I think that was discussed earlier. 14 Some manufacturers believe that 15 increased product efficiency may be in conflict 16 with other product futures, such as size, noise 17 level, and operation performance at low 18 temperatures. 19 Manufacturers expressed concern that 20 conversion costs associated with standards 21 compliance could be significant if amended 22 standards require them to develop new productCapital Reporting Company

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### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 54 1 platforms in the form of increased product 2 envelope size. 3 And finally, manufacturers are concerned 4 that amended standards could place 5 disproportionate burden on small businesses. 6 So, at this point, DOE requests comment 7 on its identification of key issues and request 8 data and information that can assist in evaluating 9 potential impacts on manufacturers. And in the 10 NOPR stage, DOE will consider the impacts on 11 certain manufacturer subgroups, including small 12 business manufacturers. So DOE would request 13 feedback on subgroups to analyze and/or 14 characteristics that are appropriate for subgroup 15 analysis. 16 MR. BROOKMAN: John? 17 MR. BLOEMER: I agree with everything 18 you said there. It was terrific. 19 MS. BUCCITELLI: Great. 20 MR. BROOKMAN: Thanks, that's helpful. 21 MS. BUCCITELLI: Good. 22 MR. BROOKMAN: Any additional commentsCapital Reporting Company

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### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 55 1 here? Any subgroups that you would call out that 2 DOE should be looking to analyze? 3 (No response.) 4 MR. BROOKMAN: No additional comments. 5 Okay, we're due to break for lunch, I think, and 6 so let's do that. It's now just about 12:15; to 7 stay here in the building and no one should leave, 8 it takes just about an hour to eat lunch and get 9 back, so let's resume at 1:15. Please remember 10 you need to wear a badge inside the building. To 11 get back through the security portal in the big 12 cafeteria, you'll probably need an ID. And this 13 room will be secured, so you can leave your stuff 14 here. And we'll resume at 1:15, after a good 15 start on the day. Thanks to all. 16 Whereupon, at 12:17 p.m., a luncheon 17 break was taken. 18 A F T E R N O O N S E S S I O N 19 (1:25 p.m.) 20 MR. BROOKMAN: Let's resume. Welcome 21 back. We're going to pick up where we left off 22 and we're going to hear from Camilla on theCapital Reporting Company

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### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 56 1 markups and energy use analysis. 2 MS. DUNHAM WHITEHEAD: Good afternoon, 3 everybody. Thank you all for coming and staying 4 through the standards rulemaking presentation. My 5 name is, as Doug said, Camilla Dunham-Whitehead, 6 and I wanted to thank my colleagues, part of the 7 team, for presenting earlier. I'll step through 8 these analyses and then my colleague, Chun Chun Ni, 9 will present the shipments before I talk about the 10 national impact analysis. 11 So you all remember this slide that 12 we've shown at different points in our 13 presentation today. The analyses that were 14 presented earlier today are all critical analyses 15 that go to determine the technological feasibility 16 of a proposed rulemaking. At this point in time, 17 we're going to look at the economic justification 18 of a proposed rule, and so I'm going to talk about 19 two major inputs into the life-cycle cost and 20 payback period analysis and then I'm going to talk 21 about the national impact analysis after covering 22 two inputs to the LCC. Chun Chun will talk aboutCapital Reporting Company

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### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 57 1 the shipments. 2 So you'll see this flowchart at a couple 3 of different points. These are all of the inputs 4 into the life-cycle cost and payback period 5 analysis. There are two primary inputs into that 6 analysis: the total installed cost and the 7 lifetime operating expenses. We're going to cover 8 one of the inputs that's critical to the total 9 installed cost and that is the markup 10 determination. 11 So just to go over here, markups are the 12 multipliers that convert manufacturer cost to 13 consumer price. And the supply chain of the 14 product is really a determining factor of what 15 kind of markups will be included and how they'll 16 be applied. So for portable units we are looking 17 at sort of a three-stage chain to move from 18 manufacturer to retailer to consumer. And the 19 markups then would cover the manufacturer and the 20 retailer, and then the sales tax for the consumer. 21 Because whole-home dehumidifiers are 22 usually installed as part of the residentialCapital Reporting Company

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### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 58 1 cooling and heating system, DOE assumes that 2 they're following the same distribution channel as do 3 central air-conditioners and forced-air heating 4 systems. So there are two primary markets for the 5 whole-home dehumidifiers and that's the 6 replacement market and the first-time owner 7 market. 8 So in the distribution chain for the 9 replacements, the manufacturer sells to the 10 wholesaler, then to a mechanical contractor, and 11 then on to the consumer. For the first-time 12 owners there's an additional step, and that's the 13 general contractor who would assist in the 14 installation of the device. 15 So there are two basic kinds of markups. 16 There are baseline markups on the direct business 17 costs of products having a baseline efficiency and 18 there are incremental markups on the incremental 19 production costs of higher efficiency products. 20 DOE estimated consumer prices for baseline 21 products by applying a baseline markup to the 22 manufacturer's production costs, and that'sCapital Reporting Company

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### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 59 1 estimated in the engineering analysis. For 2 products having higher than baseline efficiency, 3 DOE estimated consumer prices by applying 4 appropriate markups to the incremental 5 manufacturing costs, and that information also 6 came from the engineering analysis. 7 I don't have lot of comment requests, 8 but DOE is interested in receiving all comments. 9 If there are any comments on markups at this 10 point, we could do that before turning over to the 11 engineering use--energy use. Sorry. 12 MR. BROOKMAN: Yes, and I particularly 13 would elicit input on the distribution channels 14 you see there on 110. John? 15 MR. BLOEMER: John Bloemer. Your 16 distribution channel is correct. I don't know how 17 much the general contractor really plays into the 18 first time because typically when a house is being 19 built, the general contractor will sub out an HVAC 20 install, which would include many features. And 21 something I didn't pick up when I read the 22 document is you assume the cost of labor toCapital Reporting Company

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### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 60 1 install was the same no matter the efficiency 2 level, so you kind of took that out of the 3 equation. 4 MS. DUNHAM WHITEHEAD: That's correct. 5 MR. BLOEMER: And I'm just wondering if 6 you'd do the same thing as that general contractor 7 if he was making a markup on the installation of 8 the product, if that simplifies or makes the 9 analysis any different. Because who we sell 10 through is really that middle channel. 11 MS. DUNHAM-WHITEHEAD: Yep. 12 MR. BLOEMER: And I can't speak to if 13 the general contractor is taking any margin on 14 that. 15 MS. DUNHAM WHITEHEAD: I think what it 16 would mean for the first-time ownership of a 17 whole- home dehumidifier, it would be a higher 18 cost to the consumer because of that first-time 19 installation that may have to accommodate other 20 considerations as opposed to just replacing what 21 might already be there. 22 MR. BLOEMER: And what we typically seeCapital Reporting Company

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### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 61 1 is the first-time can have less labor cost than a 2 retrofit installation. 3 MS. DUNHAM WHITEHEAD: Okay. 4 MR. BLOEMER: And the market's so new 5 there's not like you're replacing units that are 6 20 years old-- 7 MS. DUNHAM WHITEHEAD: Right. 8 MR. BLOEMER: --and you're swapping them 9 out. So if your replacement market is considered 10 someone that has an existing home and they're 11 adding this feature, the cost can vary just 12 because it's harder to sometimes retrofit than it 13 is to design in. 14 MS. DUNHAM WHITEHEAD: Okay. If you 15 could put that in a comment, that would be 16 helpful. 17 MR. BROOKMAN: Additional comments on 18 the markups analysis, including the markup types 19 listed on 111. 20 MS. DUNHAM WHITEHEAD: Just, also, as a 21 point of information, the technical support 22 document, chapter 6, has great detail on theCapital Reporting Company

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### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 62 1 markups. And chapter 7 covers the energy use, so 2 people can refer to that for details for the 3 energy use. 4 So here we have this flowchart again for 5 the inputs to the life-cycle cost, and we're now 6 in the lower left-hand corner of the slide. We're 7 going to look specifically at energy consumption. 8 So for the LCC, DOE establishes annual 9 energy consumption and assesses the energy savings 10 potential of different efficiencies. For this 11 rulemaking, as Troy mentioned earlier, DOE 12 analyzed seven product classes: five for portable 13 and two for whole-home dehumidifiers. And the 14 distinctions were based on the capacity of the 15 unit. 16 Energy use varies across households 17 depending on how often the product is operated and 18 under what conditions. DOE developed annual 19 energy use values for each household that has a 20 dehumidifier with information from the energy--I'm 21 sorry, the engineering analysis, the Residential 22 Energy Consumption Survey that Troy and NadavCapital Reporting Company

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### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 63 1 spoke of earlier, and available research studies. 2 This is a graphic that shows the basic 3 calculation done for annual energy use. You'll 4 note that the key inputs into this equation 5 include annual operating hours, the average 6 dehumidification power, so average power by mode, 7 which include dehumidification, fan, and standby 8 power, and then the percentage of time that those 9 different modes are in operation over the course 10 of the year. 11 This slide shows a review of literature 12 that we did and also some field studies that were 13 found that show the average hours per year for the 14 dehumidification mode. 15 Are there any questions at this point on 16 energy use? I realize I'm moving through quickly 17 and I encourage people to look at chapter 7 or 18 just generally the technical support document if 19 you have more questions. 20 (No response.) 21 MS. DUNHAM WHITEHEAD: No, okay. So now 22 we're going to move into the life-cycle costCapital Reporting Company

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### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 64 1 analysis, going over some of those other inputs 2 into that calculation before we move into the 3 major input for the national impact analysis. 4 This gives an overview of all the different 5 inputs, this flowchart. And this graphic shows, 6 again, I refer to those two major inputs into the 7 life-cycle cost include the first cost, which is 8 the cost to own the machine and install the 9 machine, and then the operating costs, which 10 include a number of other different variables that 11 I'll cover now. And it's the difference--well, 12 anyway, so I'm going to get ahead of myself if I 13 keep talking. 14 DOE conducts the LCC using a Monte Carlo 15 simulation. A Monte Carlo simulation and 16 probability distributions model both the 17 uncertainties and variabilities of the inputs, 18 enabling DOE to identify percentages of consumers 19 who benefit from or are being negatively impacted 20 by prospective standards. Each Monte Carlo 21 simulation represents 10,000 LCC and payback 22 period calculations that are done to reduce theCapital Reporting Company

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### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 65 1 error that could be brought about by uncertainty 2 and variability. As mentioned before, the RECS 3 household sample that is put out by the Energy 4 Information Administration forms the basis of the 5 energy use characterization from a consumer 6 perspective. 7 The total installed costs, you see the 8 equation there at the top, it's the retail price plus 9 the installation cost, and then you see there on 10 the second line how markups are included. For 11 installation costs, John mentioned installation 12 costs for whole-home that are considered here, but 13 DOE assumed that installation costs didn't vary by 14 efficiency and there were not installation costs 15 considered for portable dehumidifiers. 16 So for lifetime operating costs, you see 17 the major function for the inputs that go into 18 that calculation at the top. And then the two 19 other functions below, the two other calculations 20 below, cover the inputs into the lifetime 21 operating costs and include annual operating cost, 22 lifetime, discount rate, and electricity pricesCapital Reporting Company

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### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 66 1 and price trends. 2 For electricity prices and price trends, 3 the electricity prices were taken from the EIA's 4 Form 861. And using RECS we were able to assign 5 electricity prices that were appropriate for the 6 27 different geographical locations represented in 7 RECS. 8 Repair and maintenance costs are also 9 one of the inputs into the life-cycle cost 10 equation. DOE assumed that there were no 11 differences in maintenance and repair costs based 12 on efficiency level. 13 For lifetimes, for portable 14 dehumidifiers DOE used lifetime estimates that 15 were established in the previous DOE rulemaking 16 for dehumidifiers from 2006. And DOE assumed for 17 whole-home dehumidifiers that they would have the 18 same life span as a residential room air19 conditioner, and so DOE applied the same lifetime 20 parameters as were established for room air21 conditioners onto the lifetime determination for 22 whole-home.Capital Reporting Company

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### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 67 1 Okay, discount rates are the last of the 2 LCC inputs that I'm going to discuss here. DOE 3 uses discount rates to determine the present 4 value of lifetime operating expenses that occur 5 into the future. The approach for dehumidifiers 6 is consistent with other rulemakings. To 7 summarize, DOE estimates the interest or finance 8 costs to purchase residential products. These can 9 be seen as the cost of raising funds to buy a 10 product from either the financial cost from debt 11 incurred or the opportunity cost of equity used. 12 Much of the data required for the discount rate 13 determination comes from the Federal Reserve 14 Board's publication Survey of Consumer Finance. 15 Okay. And sorry, one more slide on the 16 base case efficiency. It's assumed that there is 17 a mix of efficiencies that are currently used in 18 the field and that's to verify that potential 19 savings are not overstated, that there are devices 20 that are more or less efficient than the baseline. 21 So this is an example of the LCC savings 22 results. The red circle there is $166 forCapital Reporting Company

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### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 68 1 Efficiency Level 2 for Product Class 1. And that 2 is reflected in that frequency chart down below 3 that shows the variability, the range of values 4 across the 10,000 Monte Carlo runs. 5 So at this point, I'm going to turn the 6 chair over to my colleague, Chun Chun Ni, and 7 she'll talk about shipments. And I'll finish up 8 later with the national impacts. 9 MR. BROOKMAN: And we'll also take any 10 additional questions or comments on this segment 11 of presentation, life-cycle costs and payback 12 period analysis. 13 MS. NI: Thank you, Camilla. Chun Chun 14 Ni from LB--oh, okay. 15 MR. BROOKMAN: Pause one second. Do we 16 have any additional comments here? Okay, please. 17 MS. ARMSTRONG: (Off microphone.) 18 MR. BROOKMAN: They're tracking. 19 They're tracking. 20 MS. NI: Chun Chun Ni from LBNL. In this 21 session I will talk about DOE's shipments analysis 22 for residential dehumidifiers. The purpose of theCapital Reporting Company

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### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 69 1 shipments analysis is to estimate the impacts on 2 dehumidifier shipments caused by a potential new 3 energy efficiency standard. The methods rely on 4 the development of shipments which is based on a 5 variety of data sources, including historical 6 shipments data. The shipments model considers 7 dehumidifiers either installed for replacement 8 purposes or are installed in existing households 9 without dehumidifiers. 10 As shown in this flowchart, DOE first 11 estimated the shipments for each product class by 12 accounting for replacement shipments and first-time 13 owners. DOE then estimated total shipments by 14 aggregating shipments of each product class. 15 As mentioned before, DOE's shipments 16 analysis is based on a variety of data sources. 17 For replacement, DOE relied on the product 18 lifetime estimates, which is developed by the life19 cycle cost and payback period analysis. For 20 historical shipments data, DOE first used the data 21 from previous rulemaking for dehumidifiers for the 22 period between 1972 and 1998. DOE also relied onCapital Reporting Company

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### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 70 1 the data submitted by AHAM for the period between 2 1999 and 2011. 3 As for the shipments market share 4 segment analysis DOE first used the data submitted 5 by AHAM for product class when that is capacity 6 equal or less than 35 pints per day. And DOE also 7 relied on data from market and technology analysis 8 for whole-home product market share. And then 9 DOE then further normalized market share for the 10 remaining product classes based on the data from 11 the previous rulemaking for dehumidifiers. 12 Previous slides have covered the base13 case shipments projection approach, so I will move 14 on to the next slide. 15 This figure presents the historical and 16 projected total base-case shipments. As shown in 17 this figure, replacement shipments account for 18 about 80 percent of the total shipments. 19 After developing base-case shipments 20 analysis, DOE also developed a standards-case 21 shipments projection. In other words, the 22 shipments projected after a standard is adopted.Capital Reporting Company

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### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 71 1 The standards-case shipments projection is 2 developed by using the same data sources as base3 case shipments projection. In addition, the bease4 case shipments projection accounts for purchase 5 price increases and operating cost savings due to 6 standards to estimate any changes to a base-case 7 shipments projection. 8 This figure presents the total projected 9 shipments for both base-case and each candidate 10 standard level. 11 Now I'll hand over the next session to 12 Camilla. 13 MS. DUNHAM WHITEHEAD: Any questions or 14 comments? 15 (No response.) 16 MS. DUNHAM WHITEHEAD: Okay. So, across 17 the top of this slide you'll see that we're in the 18 preliminary analysis phase and we'll move on to 19 the NOPR phase after this is--after comments are 20 received. And this National Impact Analysis is 21 what I'll cover next. 22 MS. DUNHAM WHITEHEAD: So the purpose ofCapital Reporting Company

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### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 72 1 the NIA is to estimate energy savings and economic 2 impacts that may result from a standard. The 3 national energy savings and economic impacts are 4 calculated on an annual basis before being summed 5 into a cumulative value. The NIA uses a model 6 that incorporates projections of product shipments 7 and then tracks inventory of dehumidifiers that is 8 in service in any given year. Each year, as new 9 appliances are shipped and old appliances are 10 retired, the analysis adds and subtracts 11 appliances to that existing stock. Thus the model 12 estimates historical, current, and projected stock 13 of dehumidifiers. The NIA also employs a per-unit 14 total installed cost and per-unit annual energy 15 consumption developed in the LCC analysis and 16 aggregates these costs and energy use values based 17 on the vintage of the stock. 18 Energy savings are defined in terms of 19 "quads." And while energy use in the LCC analysis 20 is determined at the site, that is at the 21 household or building where the product is used, 22 the NIA analysis reports the savings at the sourceCapital Reporting Company

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### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 73 1 level that later gets again amended to account for 2 the full fuel cycle. 3 The economic impact is defined in terms 4 of the national net present value, or the NPV, and 5 it's calculated in dollars. Because the standard 6 is in effect over multiple years we discount the 7 value of future savings in order to estimate the 8 present value of the national economic impact 9 using a discount rate. 10 So this flow diagram is for the national 11 energy savings and I'll show something similar for 12 the net present value. So you'll see on the left13 hand side of the screen as you face the screen the 14 base-case projection and on the right the 15 standards-case projection. So we get data out of 16 the shipments analysis and then calculate for each 17 year what the energy consumption is in the base 18 case beginning in 2019, or whenever the standard 19 takes effect, through a 30-year analysis period, 20 but the actual energy savings are summed for the 21 entire length of shipments that would last those 22 30 years, so till that last unit that's shipped isCapital Reporting Company

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### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 74 1 retired. 2 Then there is a site-to-source 3 conversion that takes place each year. And then 4 the standards case is subtracted from the base 5 case and that would yield the national energy 6 savings. 7 So this is the calculation for the net 8 present value, which is done in a similar way, but 9 you'll notice that what is aggregated here are the 10 operating cost savings and the total equipment 11 cost increases to which discount rates are 12 applied. And then, again, the standards case is 13 subtracted from the base case. Also, the 14 cumulative operating savings and the total 15 equipment cost increase are then summed together 16 to yield the net present value. 17 So the shipment-weighted efficiency 18 data, DOE projected efficiencies for the base case 19 based on assumptions regarding future improvements 20 in efficiency and assumed an annual growth rate of 21 a quarter of a percent covering the analysis 22 period, so 2019 to 2048.Capital Reporting Company

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### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 75 1 DOE assumed a roll-up scenario to 2 establish the shipment-weighted efficiency for the 3 year that the standards are assumed to become 4 effective. DOE also assumed that product 5 efficiencies in the base case that did not meet 6 the standard under consideration would roll up to 7 meet the new standard level. 8 For its projected efficiencies of 9 candidate standard levels, also seen on the screen 10 as ELs or efficiency levels, DOE established a 11 shift scenario that would incorporate sort of 12 natural shifts in efficiency that occur in the 13 marketplace. 14 The full fuel cycle, as I mentioned 15 before, is the metric that includes energy 16 consumed in the extracting, processing, and 17 transporting primary fuels and thus presents a 18 more complete picture of the impacts of energy 19 efficiency standards. The FFC methodology simply 20 estimates how much additional energy and, in turn, 21 how many tons of emissions may be displaced if the 22 estimated quantity of energy was not consumed byCapital Reporting Company

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### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 76 1 the residential dehumidifiers covered in this 2 rulemaking. It also is important to note that the 3 inclusion of FFC does not affect DOE's choice of 4 proposed standards. 5 Are there any comments or questions at 6 this point? 7 (No response.) 8 MS. DUNHAM WHITEHEAD: Okay. This is a 9 slide that covers all of the different inputs into 10 the NIA analysis that I've covered here in my 11 earlier slides. 12 And the next two slides show results. 13 This is for a proposed Trial Standard Level 3 that 14 incorporates different product classes. And as I 15 mentioned earlier, that metric is measured in 16 quads. 17 This is the NPV, net present value, 18 savings of Product Class 1 at Efficiency Level 3. 19 Everybody doing okay? 20 MR. BROOKMAN: Yeah. 21 MS. DUNHAM WHITEHEAD: Okay. So, I'm 22 going to talk very briefly about differentCapital Reporting Company

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### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 77 1 downstream analysis that are covered in the NOPR. 2 Before I do, I mentioned just a few minutes ago 3 trial standard levels. The purpose of the trial 4 standard level is to look at the potential, to 5 develop a list of potential amended standard 6 levels from which impacts are weighed and a 7 proposed standard level is selected. And so what 8 happens is that the different efficiency levels 9 for the different product classes are matched and 10 a trial standard level list is developed and the 11 basis of evaluation is based on that trial 12 standard level. 13 If there are comments at this point on 14 the different--or at some point in the future on 15 what makes most sense to stakeholders on how those 16 efficiency levels should be paired, that would be 17 welcomed by DOE. 18 Okay. So now we have five additional 19 analyses that are covered in the downstream 20 analysis. The consumer subgroup analysis mirrors 21 what happens in the manufacturer impact analysis, 22 so there are specific consumer groups that areCapital Reporting Company

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### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 78 1 looked at with more detail to see if they're 2 adversely affected by the standard. And for 3 residential products, we have looked at low-income 4 households and senior-only households with special 5 consideration. If there are additional subgroups 6 that DOE should examine, it would be useful to 7 have that information. 8 MR. BROOKMAN: Any comments here, 9 additional subgroups? 10 (No response.) 11 MR. BROOKMAN: Okay. 12 MS. DUNHAM WHITEHEAD: Okay. The 13 emissions analysis, the purpose of the emissions 14 analysis is to estimate emissions impacts and that 15 also, as I mentioned earlier, incorporates the 16 full fuel cycle considerations. You see on the 17 screen here the different emissions that are 18 assessed. 19 Additionally, those emissions have a 20 monetary value attached to them, and that also is 21 reported by DOE in the NOPR phase of the 22 rulemaking. These comments, items 7 through 9,Capital Reporting Company

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### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 79 1 get into the particulars that DOE is particularly 2 interested in with respect to emissions and 3 emissions monetization. 4 The utility impact analysis assesses the 5 overall impact on domestic energy supplies that 6 would result from the proposed standard. DOE uses 7 something called NEMS-BT. It's NEMS, which is the 8 National Energy Modeling System, that's modified 9 specifically for this effort. And that's the 10 model that goes to look at energy savings impacts. 11 Here's another box for comment. 12 (No response.) 13 MS. DUNHAM WHITEHEAD: Okay. The MIA 14 looks at direct impacts to employment from a 15 proposed standard. The employment impact analysis 16 looks more at indirect employment impacts. DOE 17 uses something that was developed at NREL called 18 the Impact of Sector Energy Technologies, or 19 ImSET, to look at those indirect employment 20 impacts. 21 Another request for comment. 22 (No response.)Capital Reporting Company

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### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 80 1 MS. DUNHAM WHITEHEAD: So the final 2 downstream analysis is the regulatory impact 3 analysis, and that explores the potential for non4 regulatory alternatives to whatever is determined 5 by DOE to be the proposed standard for 6 dehumidifiers. All of these downstream analyses 7 are covered in much more detail in the technical 8 support document, chapters 13 through 17. 9 MS. ARMSTRONG: I'm not even going to 10 move for my one slide. 11 MS. DUNHAM WHITEHEAD: Sure, please. 12 MR. BLOEMER: (Off microphone.) 13 MR. BROOKMAN: Question, John, please. 14 MR. BLOEMER: You did all this analysis 15 and as I read it, it's a little above--as an 16 engineer it's a little above me, but what I don't 17 understand is what's the outcome? I would expect 18 this analysis to have said if we do these things, 19 we're going to save X and, therefore, it's worth 20 the impact to everyone involved. I could not 21 glean out that impact analysis. 22 MS. ARMSTRONG: Okay, so I'm going toCapital Reporting Company

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### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 81 1 take a step back and attempt to answer your 2 question. This is Ashley. 3 We've done a variety of different 4 analyses, both like engineering-type analyses and 5 then also economic-type analyses, and we've put 6 all our analyses at this point on all the 7 different levels and all the different thoughts 8 and assumptions and data that DOE has been using a 9 considering for comment, so you don't see the 10 punch line yet. That seems to be what you're 11 asking about. 12 What we're saying is at this point, 13 here's our analyses, here's a snapshot of 14 everything we've done, here's what we've used, 15 here's a lot of the details, and we're asking for 16 feedback on that. What we will then do with all 17 that feedback is consider all the comments, 18 consider all the data, consider additional, you 19 know, research that we may do on our own in 20 response to those comments, and then we will 21 revise this analysis. 22 Based on the revised analysis we willCapital Reporting Company

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### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 82 1 come out with a proposed rule. That proposed rule 2 will have a punch line, typically in the form of 3 proposed standards. And that's where you'll see 4 these are the levels that DOE is thinking about 5 proposing as federal standard levels, here are the 6 reasons why, here are the benefits and the costs, 7 and here's how DOE arrived at its decision in line 8 with the statutory criteria. 9 So that's at the next phase, so we're 10 kind of giving you a snapshot of this is all the 11 stuff that leads into that and informs that 12 decision. So here's your advance copy of the data 13 and the analyses and we're asking for feedback 14 now, early in the process, so that's why you don't 15 see a punch line yet. 16 MR. BLOEMER: It makes it hard to 17 interact with it. 18 MS. ARMSTRONG: Sorry. 19 MR. BLOEMER: (Off microphone) --my 20 feedback. 21 MS. ARMSTRONG: Yeah. 22 MR. BLOEMER: Again, as a recipient ofCapital Reporting Company

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### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 83 1 the information it's hard to feed back onto that 2 because we can understand energy efficiencies and 3 EERs and graphs and we can understand where 4 you're trying to get to, but we can't see this 5 very good and complex analysis. Does it cross a 6 bar? Is it something that we can get excited 7 about and say, hey, we're providing benefit to the 8 country and our consumers and everything else? We 9 can't provide any feedback. And so you're asking 10 us to read a lot and perform our daily jobs 11 without a punch line. So it's just some feedback 12 that we can't give to you because-- 13 MS. ARMSTRONG: This is Ashley again 14 from DOE. I mean, you can look at the discrete 15 analyses as they were performed, whether it be the 16 life-cycle cost analysis which tries to indicate 17 economic benefits or cost to consumers as well as 18 the national impact analysis. You can see the 19 magnitude of those numbers and whether they're 20 positive or negative, so you can get a sense at 21 the levels that we are analyzing what the benefits 22 or costs might be. You just don't see a potentialCapital Reporting Company

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### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 84 1 proposed standard or policy decision from the 2 Department at this point in time because really 3 what we're asking is this is our first cut, we've 4 gotten a lot of feedback in the past that people 5 would like to give us, be involved in the process 6 early, would like to give us feedback on the 7 process early before they just see a proposed 8 standard level. And this is our way of 9 integrating you--one of our ways to integrating 10 you into that process early. 11 MR. BROOKMAN: Any additional comments? 12 MS. DUNHAM WHITEHEAD: Just to add one 13 thing, sorry. As Ashley said, it's a way to 14 integrate into the process, so it gives you an 15 idea of all the different inputs that we're 16 working with. And if you have something better, 17 if you have more informed data, now is the time to 18 step up with it and say this will give you a more 19 accurate picture of what's really going on with 20 respect to dehumidifiers in the country. 21 MR. BLOEMER: I understand it. Again, 22 coming from a recipient of this information, it'sCapital Reporting Company

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### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 85 1 very complex and very confusing. And what we're 2 really interested in is--I don't know if in terms 3 of gigawatts that you calculate the savings, is 4 that a needle-mover or is it a major impact? So 5 to respond to it, it doesn't matter. And to go 6 through the analysis with a fine-toothed comb, I 7 don't know the value of my time to do it versus if 8 there was a standard that says, hey, we really 9 push things forward if they move the needle so 10 much. Then we know, okay, it's worth really 11 understanding this thing versus if it's all this 12 analysis says it's all noise in the big picture of 13 things. Okay. Not worth our time to really, 14 really study it, so. 15 MS. ARMSTRONG: Okay, I think that's 16 fair. I think, you know, we're coming to the end 17 of our proposal and, you know, I appreciate what 18 Jen said earlier. It is a very thick packet. It 19 is a lot of data. It has only been three weeks. 20 So, you know, I hope what you heard today is at 21 least some additional explanation about the 22 process and what we've done.Capital Reporting Company

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### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 86 1 The comment period does not close until 2 July 21st, so we hope that will give you a little 3 more time to kind of delve into the details as you 4 feel necessary or as you may want to or have time. 5 We are always interested in feedback and comments. 6 If you have any other questions, feel free to 7 email us. 8 I am going to open the floor real 9 quickly for just anyone that would like to make 10 any last- minute closing remarks or questions or 11 that. Otherwise, you know, you can see how to 12 submit comments on the screen. Anybody? 13 MR. BROOKMAN: Final statements, closing 14 remarks? 15 (No response.) 16 MS. ARMSTRONG: Anybody online? No, all 17 quiet. Well, then just thank you for coming and 18 participating in the process. Hopefully, you will 19 have safe travels home early on a Friday. 20 MR. BROOKMAN: Safe travels. 21 (Whereupon, at 2:01 p.m., the 22 meeting was concluded.)Capital Reporting Company

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### (866) 448 - DEPO www.CapitalReportingCompany.com © 2014 87 1 CERTIFICATE OF COURT REPORTER 2 3 I, CHRISTINE ALLEN, the reporter before whom the 4 foregoing hearing was taken, do hereby certify 5 that the witness whose testimony appears in the 6 foregoing deposition was duly sworn by me; that 7 the testimony of said witness was recorded by me 8 and thereafter reduced to typewriting under my 9 direction; that said deposition is a true record 10 of the testimony given by said witness; that I am 11 neither counsel for, related to, nor employed by 12 any of the parties to the action in which this 13 deposition was taken; and, further, that I am not 14 a relative or employee of any counsel or attorney 15 employed by the parties hereto, nor financially or 16 otherwise interested in the outcome of this 17 action. 18 19

_____________________ 20 CHRISTINE ALLEN 21 22Capital Reporting Company

Residential Dehumidifier Test Procedures Docket No.: EERE-2014-BT-STD-0027 06-13-2014 Page 1

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Residential Dehumidifier Test Procedures Docket No.: EERE-2014-BT-STD-0027 06-13-2014 Page 3

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Residential Dehumidifier Test Procedures Docket No.: EERE-2014-BT-STD-0027 06-13-2014 Page 4

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