CHAPTER 1. INTRODUCTION

TABLE OF CONTENTS

1.1 PURPOSE OF THE DOCUMENT ................................................................................. 1-1

1.2 OVERVIEW OF COMMERCIAL EQUIPMENT STANDARDS................................. 1-1

1.3 OVERVIEW OF REFRIGERATED BEVERAGE VENDING MACHINES................ 1-2

1.3.1 Definitions............................................................................................................ 1-2

1.3.2 Current Standards................................................................................................. 1-4

1.4 PROCESS FOR SETTING ENERGY CONSERVATION STANDARDS ................... 1-4

1.5 STRUCTURE OF THE DOCUMENT............................................................................ 1-6

LIST OF TABLES

Table 1.3.1 Standard levels for refrigerated beverage vending machines........................ 1-4

Table 1.4.1 Analyses Under the Process Rule .................................................................. 1-5

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CHAPTER 1. INTRODUCTION

1.1 PURPOSE OF THE DOCUMENT

This preliminary technical support document (preliminary TSD) is a stand-alone report 

that documents the technical analyses and results supporting the preliminary analysis for 

establishing energy conservation standards for refrigerated beverage vending machines (BVMs).

1.2 OVERVIEW OF COMMERCIAL EQUIPMENT STANDARDS

Title III of the Energy Policy and Conservation Act of 1975 (42 U.S.C. 6291, et seq.; 

“EPCA” or, “the Act”) sets forth a variety of provisions designed to improve energy efficiency. 

(All references to EPCA refer to the statute as amended through the American Energy 

Manufacturing Technical Corrections Act (AEMTCA), Pub. L. 112-210 (Dec. 18, 2012).) Part B 

of title III, which for editorial reasons was redesignated as Part A upon incorporation into the 

U.S. Code (42 U.S.C. 6291–6309, as codified), establishes the “Energy Conservation Program 

for Consumer Products Other Than Automobiles.” These include refrigeration products such as 

beverage vending machines that are the subject of this TSD.

Pursuant to EPCA, the U.S. Department of Energy (DOE) is required to design each 

standard for these products to (1) achieve the maximum improvement in energy efficiency that is 

technologically feasible and economically justified; and (2) result in significant conservation of 

energy. (42 U.S.C. 6295(v))) To determine whether a proposed standard is economically justified, 

DOE will, after receiving comments on the proposed standard, determine whether the benefits of 

the standard exceed its burdens to the greatest extent practicable, considering the following seven 

factors: 

1. The economic impact of the standard on the manufacturers and on the consumers of the 

products subject to such standard; 

2. The savings in operating costs throughout the estimated average life of the covered 

product in the type (or class) compared to any increase in the price of, or in the initial 

charges for maintenance expenses of, the covered products that are likely to result from 

the imposition of the standard; 

3. The total projected amount of energy savings likely to result directly from the imposition 

of the standard; 

4. Any lessening of the utility or the performance of the covered products likely to result 

from the imposition of the standard; 

5. The impact of any lessening of competition, as determined in writing by the Attorney 

General, that is likely to result from the imposition of the standard; 

6. The need for national energy conservation; and

7. Other factors the Secretary considers relevant. (42 U.S.C. 6295(o)(2)(B)(i); 6313(d)(4)) 

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EPCA also directs that DOE may not prescribe an amended or new standard if the 

standard is likely to result in the unavailability in the United States of performance 

characteristics (including reliability), features, sizes, capacities, and volumes that are 

substantially the same as those generally available in the United States at the time that the 

standard is prescribed. (42 U.S.C. 6295(o)(4) and 6313(d)(4)) 

For refrigerated beverage vending machines, DOE is applying those factors in a manner 

consistent with its other energy conservation standards rulemakings to ascertain the maximum 

improvement in energy efficiency that is technologically feasible and economically justified for 

these products.

1.3 OVERVIEW OF REFRIGERATED BEVERAGE VENDING MACHINES

1.3.1 Definitions

Subsections 323(b)(15) of EPCA (42 U.S.C. 6293(b)(15)) and 323(f) (42 U.S.C. 6293(f)), 

state that the test procedure for refrigerated bottled or canned beverage vending machines shall 

be based on American National Standards Institute/American Society of Heating, Refrigerating 

and Air-Conditioning Engineers Standard 32.1-2004, “Methods of Testing for Rating Vending 

Machines for Bottled, Canned or Other Sealed Beverages.”

Subsection 321(40) of EPCA (42 U.S.C. 6291(40)) establishes the following definition:

The term “refrigerated bottled or canned beverage vending machine” means a 

commercial refrigerator that cools bottled or canned beverages and dispenses the 

bottled or canned beverages on payment.

Subsection 340(9) of EPCA (42 U.S.C 6311(9)) establishes definitions for the following 

terms relating to commercial refrigeration equipment that are relevant to beverage vending 

machines due to the definition of a beverage vending machine being a type of “commercial 

refrigerator”:

“(9)(A) The term ‘commercial refrigerator, freezer, and refrigerator-freezer’

means refrigeration equipment that—

“(i) is not a consumer product (as defined in section 321);

“(ii) is not designed and marketed exclusively for medical, scientific, or research

purposes;

“(iii) operates at a chilled, frozen, combination chilled and frozen, or variable

temperature;

“(iv) displays or stores merchandise and other perishable materials horizontally,

semivertically, or vertically;

“(v) has transparent or solid doors, sliding or hinged doors, a combination of

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hinged, sliding, transparent, or solid doors, or no doors;

“(vi) is designed for pull-down temperature applications or holding temperature

applications; and

“(vii) is connected to a self-contained condensing unit or to a remote condensing

unit.

“(B) The term ‘holding temperature application’ means a use of commercial 

refrigeration equipment other than a pull-down temperature application, except a 

blast chiller or freezer.

* * *

“(D) The term ‘pull-down temperature application’ means a commercial 

refrigerator with doors that, when fully loaded with 12 ounce beverage cans at 90 

degrees F, can cool those beverages to an average stable temperature of 38 

degrees F in 12 hours or less.

“(E) The term ‘remote condensing unit’ means a factory-made assembly 

of refrigerating components designed to compress and liquefy a specific 

refrigerant that is remotely located from the refrigerated equipment and 

consists of one or more refrigerant compressors, refrigerant condensers, 

condenser fans and motors, and factory supplied accessories. 

“(F) The term ‘self-contained condensing unit’ means a factory-made 

assembly of refrigerating components designed to compress and liquefy a 

specific refrigerant that is an integral part of the refrigerated equipment 

and consists of one or more refrigerant compressors, refrigerant 

condensers, condenser fans and motors, and factory supplied accessories.”

DOE further defines several equipment classes as follows:

• Class A means a refrigerated bottled or canned beverage vending machine that 

is fully cooled, and is not a combination vending machine. The Class A 

beverage vending machine equipment class comprises machines that cool 

product throughout the entire refrigerated volume of the machine. Class A 

machines generally use ‘‘shelf-style’’ vending mechanisms and a transparent 

(glass or polymer) front necessitating full cooling because the next-to-bevended product is visible to the customer and any product can be selected by 

the customer off the shelf.

• Class B means any refrigerated bottled or canned beverage vending machine 

not considered to be Class A, and is not a combination vending machine. In 

Class B beverage vending machines, refrigerated air is directed at a fraction 

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(or zone) of the refrigerated volume of the machine, where the next-to-bevended product is stored. This cooling method is used to assure that the nextto-be-vended product will be the coolest product in the machine. These 

machines typically have an opaque front and use a ‘‘stack-style’’ vending 

mechanism.

• A combination vending machine refers to a refrigerated bottled or canned 

beverage vending machine that also has a non-refrigerated volume for the 

purpose of vending other, non-‘‘sealed beverage’’ merchandise. The class 

makes up a much smaller fraction of the overall market than Class A and 

Class B machines. 

1.3.2 Current Standards

The first DOE rulemaking for refrigerated beverage vending machines began in 2006 and 

culminated in a final rule in August of 2009 (the 2009 BVM final rule) (DOE 10 CFR Part 

431[Docket Number EERE–2006–STD–0125] RIN 1904–AB58 Energy Conservation Program: 

Energy Conservation Standards for Refrigerated Bottled or Canned Beverage Vending 

Machines). Table 1.3.1 provides a summary of current standards, which went into effect on 

August 31, 2012.

Table 1.3.1 Standard Levels for Refrigerated Beverage Vending Machines

Equipment class Standard level 

maximum daily energy consumption (MDEC)

kWh/day

A MDEC = 0.055 ∙ V* + 2.56

B MDEC = 0.073 ∙ V + 3.16

Combination [RESERVED]

* ‘‘V’’ is the refrigerated volume (ft3) of the refrigerated bottled or canned beverage vending machine

EPCA grants DOE authority to review and possibly amend standards for covered equipment 

under 42 U.S.C. 6295(m)(1): within six years after issuance of any final rule establishing or 

amending a standard, DOE is required to publish either: 1) a notice of determination that energy 

conservation standards for the product do not need to be amended, or 2) a notice of proposed 

rulemaking including new proposed energy conservation standards.

1.4 PROCESS FOR SETTING ENERGY CONSERVATION STANDARDS

After the publication of the Framework Document, the energy conservation standards 

rulemaking process typically involves three additional, formal public notices, which DOE 

publishes in the Federal Register. The first of the rulemaking notices is a notice of public 

meeting (NOPM), which is designed to publicly vet the models and tools used in the preliminary 

rulemaking and to facilitate public participation before the notice of proposed rulemaking 

(NOPR) stage. The second notice is the NOPR, which presents a discussion of comments 

received in response to the NOPM and the preliminary analyses and analytical tools; analyses of 

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the impacts of potential amended energy conservation standards on consumers, manufacturers, 

and the Nation; DOE’s weighting of these impacts of amended energy conservation standards; 

and the proposed energy conservation standards for each product. The third notice is the final 

rule, which presents a discussion of the comments received in response to the NOPR; the revised 

analyses; DOE’s weighting of these impacts; the amended energy conservation standards DOE is 

adopting for each product; and the effective dates of the amended energy conservation standards.

Table 1.4.1 provides an overview of analyses performed at each stage of the rulemaking process.

Table 1.4.1 Analyses Performed at Each Stage of the Rulemaking Process

Preliminary Analyses NOPR Final Rule

Market and technology assessment Revised preliminary analysis Revised analyses

Screening analysis Consumer sub-group analysis

Engineering analysis Manufacturer impact analysis

Energy use analysis Emissions analysis

Markups analysis Monetization of emissions 

reduction benefits

Life-cycle cost and payback period 

analysis Utility impact analysis

Shipments analysis Employment impact analysis

National impact analysis Regulatory impact analysis

Preliminary manufacturer impact analysis

At this preliminary analysis stage, DOE conducted the engineering analysis using a 

spreadsheet energy consumption model and inputs from equipment teardowns and manufacturer 

literature. Following the publication of the preliminary analysis and the preliminary analysis 

public meeting, DOE intends to hold additional meetings with manufacturers to further verify 

inputs to the engineering analysis and as part of the consultative process for the MIA conducted 

during the NOPR phase.

DOE conducted the life-cycle cost (LCC) and payback period (PBP) analysis based on an 

approach that establishes an annual energy expense using regional average electric utility costs 

for affected businesses and projected those electricity costs into the future using electricity price 

projections for the commercial and industrial sectors from the DOE’s Energy Information 

Agency (EIA). Under this approach, LCC results are based on the assumption that customers in 

the future will face electricity costs similar to those that exist in today’s electricity markets.

DOE developed spreadsheets for the LCC and PBP analysis for refrigerated beverage 

vending machines. DOE developed an LCC spreadsheet that calculates the LCC and PBP at 

various energy efficiency levels. DOE also developed a national impact analysis (NIA) 

spreadsheet that calculates the national energy savings (NES) and national net present values 

(NPVs) at various energy efficiency levels. This spreadsheet includes a model that forecasts the 

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impacts of amended energy conservation standards at various levels on product shipments. These 

spreadsheets are available on the DOE rulemaking website for refrigerated beverage vending 

machines:

http://www1.eere.energy.gov/buildings/appliance_standards/rulemaking.aspx/ruleid/73 .

1.5 STRUCTURE OF THE DOCUMENT

This preliminary TSD outlines the analytical approaches used in this rulemaking. The 

TSD consists of 17 chapters as well as appendices.

• Chapter 1, Introduction: provides an overview of the appliance standards program and 

how it applies to the BVM rulemaking, and outlines the structure of the document.

• Chapter 2, Analytical Framework, Comments from Interested Parties, and DOE 

Responses: describes the rulemaking process step by step, summarizes comments made 

by interested parties during the Framework Document comment period, and provides 

DOE responses to those comments.

• Chapter 3, Market and Technology Assessment: characterizes the BVM equipment 

market and the technologies available for increasing equipment efficiency.

• Chapter 4, Screening Analysis: determines which technology options are viable for 

consideration in the engineering analysis.

• Chapter 5, Engineering Analysis: discusses the methods used for developing the 

relationship between increased manufacturer price and increased efficiency.

• Chapter 6, Markups for Equipment Price Determination: discusses the methods used 

for establishing markups for converting manufacturer prices to customer equipment 

prices.

• Chapter 7, Energy Use Analysis: discusses the process used for generating energy use 

estimates for each equipment class and efficiency level.

• Chapter 8, Life-Cycle Cost and Payback Period Analysis: discusses the economic 

effects of standards on individual customers and users of the equipment and compares the 

LCC and PBP of equipment with and without higher efficiency standards.

• Chapter 9, Shipments Analysis: discusses the methods used for forecasting shipments 

with and without higher efficiency standards.

• Chapter 10, National Impact Analysis: discusses the methods used for forecasting 

national energy consumption and national economic impacts based on annual equipment 

shipments and estimates of future efficiency distributions in the absence and presence of 

higher efficiency standards.

• Chapter 11, Life-Cycle Cost Subgroup Analysis: discusses the effects of standards on a 

subgroup of BVM customers and compares the LCC and PBP of equipment with and 

without higher efficiency standards.

• Chapter 12, Preliminary Manufacturer Impact Analysis: discusses the effects of 

standards on the finances and profitability of equipment manufacturers.

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• Chapter 13, Emissions Analysis: discusses the effects of standards on airborne 

emissions of electric utilities.

• Chapter 14, Monetization of Emissions Reductions Benefits: considers the estimated 

monetary benefits likely to result from reduced emissions of carbon dioxide and nitrogen 

oxides expected to result from the standards.

• Chapter 15, Utility Impact Analysis: discusses the effects of standards on the installed 

generation capacity of electric utilities.

• Chapter 16, Employment Impact Analysis: discusses the effects of standards on 

national employment.

• Chapter 17, Regulatory Impact Analysis: discusses the present regulatory actions as 

well as the impact of non-regulatory alternatives to setting energy efficiency standards.

• Appendix 5A, Engineering Data

• Appendix 8A, User Instructions for the Life-Cycle Cost Analysis Spreadsheet: 

contains a description of the spreadsheet and instructions that allow the user to examine 

and reproduce the detailed results of the LCC and PBP analysis. 

• Appendix 8B, Uncertainty and Variability in LCC Analysis: explains how the LCC 

model accounts for the uncertainty and variability of the numerical values. 

• Appendix 9A, Relative Price Elasticity of Demand for Appliances: presents a detailed 

explanation of the methodology DOE used to quantify the impacts of standards on 

shipments, including the effect of decreased operating costs. 

• Appendix 10A, User Instructions for Shipments and NIA Spreadsheets: contains a 

description of the NIA spreadsheet and instructions on how to use it to examine and 

reproduce the NIA results.

• Appendix 10B, National Net Present Value of Consumer Benefits Using Alternative 

Equipment Price Forecasts: contains NPV results using alternative equipment price 

forecasts.

• Appendix 10C, Full Fuel Cycle Multipliers: contains a summary of the methods used 

to calculate full-fuel-cycle (FFC) energy savings.

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