U.S. Department of EnergyEnergy Conservation Program for Consumer Productsand Commercial and Industrial EquipmentEnergy Conservation Standards Rulemakingfor Walk-In Coolers and Walk-In FreezersBuilding Technologies ProgramOffice of Energy Efficiency and Renewable EnergyFebruary 4, 2009http://www1.eere.energy.gov/buildings/appliance_standards/commercial/wicf.html2AgendaIntroduction1Rulemaking Overview2Preliminary Analyses3NOPR Analyses4Public Meeting AgendaFinal Rule Analyses5Closing Remarks63IntroductionPublic Meeting AgendaIntroduction1Rulemaking Overview2Preliminary Analyses3NOPR Analyses4Final Rule Analyses5Closing Remarks64IntroductionPurpose of the Framework Public MeetingPresent the procedural and analyticalapproaches the U.S. Department ofEnergy (DOE or the Department) anticipates using to evaluate energyconservation standards for walk-in coolers and walk-in freezers (walk-insor WICF)Encourage parties to submit data, information, and written commentsInform parties and facilitate the rulemaking process5BackgroundIntroductionThe Energy Independence and Security Act of2007 (EISA)Section 312(a):Defines the terms applicable to walk-incoolers and walk-in freezers.Section 312(b):Establishes prescriptiverequirements mandated byCongress for walk-in coolers and walk-in freezers,applicable to all WICF equipment manufactured onor afterJanuary 1, 2009.Directs DOE to publish by rule, no later thanJanuary 1, 2012, energy conservation standardseffective for equipment manufactured on or afterthree years from the date of publication.Section 312(c):Prescribes methods fordetermining the K factorand calculating the R value of insulation.Directs DOE to establish, byJanuary 1, 2010, atest procedure to measure the energy use of walk-incoolers and walk-in freezers.6Background: DefinitionsEISA Section 312(a): Defines the terms ‘walk-in cooler’and ‘walk-in freezer’ to mean:“an enclosed storage space refrigerated totemperatures, respectively, above, and at or below 32degrees Fahrenheit that can be walked into, and has atotal chilled storage area of less than 3,000 squarefeet. The terms ‘walk-in cooler’ and ‘walk-in freezer’do not include products designed and marketedexclusively for medical, scientific, or researchpurposes.”Introduction7BackgroundFederal Register-74 FR 411 (January 6, 2009) and74 FR 1992 (January 14, 2009)Gives official public notice of the public meeting andavailability of the Framework DocumentInitiates information and data collection processEncourages interested parties to submit commentsFramework DocumentExplains issues, analyses,and the process that DOEis considering to develop energy conservationstandards for walk-in coolers and walk-in freezersSolicits data and information, and invites commentsA copy of the Framework Document is available at:http://www1.eere.energy.gov/buildings/appliance_standards/commercial/wicf_framework_document.htmlIntroduction8How to Submit Written CommentsIntroductionIn all correspondence, please refer to the Walk-In Coolers and Walk-In FreezersRulemaking byDocket Number EERE-2008-BT-STD-0015,orRegulatory Identification Number (RIN) 1904-AB86.Email:wicf-2008-std-0015@ee.doe.govPostal Mail:Brenda EdwardsU.S. Department of EnergyBuilding Technologies Program, Mail Stop EE-2JWalk-In Coolers and Freezers Rulemaking, RIN 1904-AB861000 Independence Avenue, SWWashington, DC 20585-0121Courier:Brenda EdwardsU.S. Department of EnergyBuilding Technologies ProgramWalk-In Coolers and Freezers Rulemaking, RIN 1904-AB86950 L’Enfant Plaza, 6th FloorWashington, DC 20024Comment period closesFebruary 12, 2009.9Rulemaking OverviewPublic Meeting AgendaIntroduction1Rulemaking Overview2Preliminary Analyses3NOPR Analyses4Final Rule Analyses5Closing Remarks610Rulemaking OverviewStages of the Rulemaking ProcessFederal Register noticesFrameworkDocumentNOPRFinalRuleOpportunities for interested parties to participatePublic meetings and oral commentsWritten comments on Federal Register notices and TechnicalSupport DocumentsPreliminaryAnalyses11Rulemaking OverviewFramework DocumentFrameworkDocumentNOPRFinalRuleTodayToday’s public meeting covers the Framework Document for thisrulemaking.The Framework Document provides an overview of the rulemakingprocess and encourages early participation by interested parties.The Department encourages all interested parties to read the FrameworkDocument, available at:http://www.eere.energy.gov/buildings/appliance_standards/commercial/wicf_framework_document.htmlPreliminaryAnalyses12NationalImpactAnalysisRulemaking OverviewPreliminary AnalysesEnergy Use andEnd-Use LoadCharacterizationMarket andTechnologyAssessmentScreeningAnalysisEngineeringAnalysisMarkups forEquipmentPriceDeterminationLife-CycleCost andPaybackPeriod AnalysisShipmentsAnalysisFrameworkDocumentNOPRFinalRulePreliminaryAnalyses13Rulemaking OverviewEnvironmentalAssessmentLife-CycleCostSubgroupAnalysisManufacturerImpactAnalysisUtilityImpactAnalysisEmploymentImpactAnalysisAnalyses for Notice of Proposed Rulemaking (NOPR)RegulatoryImpactAnalysisRevisePreliminaryAnalysesFrameworkDocumentNOPRFinalRulePreliminaryAnalyses14Rulemaking OverviewFrameworkDocumentNOPRFinalRuleAnalyses for Final RuleDOJReviewPreliminaryAnalysesReviseNOPRAnalyses15Test ProceduresSection 312(c) of EISA states: “Notlater than January 1, 2010, theSecretary shall establish a testprocedure to measure the energyuse of walk-in coolers and walk-in freezers.”DOE is developing test procedures and rating temperatures forwalk-in coolers and walk-in freezerscovered under this rulemaking,in a separate but concurrent rulemaking.DOE researched federal, state,and international standards forwalk-ins and found no existing test procedures.Test Procedures16Item 2-1The Department seeks feedback onappropriate test metrics andnormalization factors for the walk-in coolers and walk-in freezers covered underthis rulemaking.Rating Methods and Normalizing FactorsThe Department is considering several options formanufacturers to rate walk-in coolers and walk-infreezers, including:Test the equipment using a modified version of ANSI/ARI1200-2008: “Performance Rating of Commercial RefrigeratedDisplay Merchandisers and Storage Cabinets.”Calculate the energy consumption using an AlternativeEfficiency Determination Method (AEDM).Use some combination of these options.The Department is considering applying a normalizingfactor to the test metric to accommodate equipment ofdifferent sizes.Gross VolumeFloor AreaTest Procedures17Rating Method 1: Use a Modified Version of ARI 1200Test the walk-in cooler or walk-in freezer at steady state within acontrolled test room, under the conditions specified in ASHRAE 72(“Method of Testing Commercial Refrigerators and Freezers”).Record test data for the walk-in cooler or walk-in freezer over a 24-hourperiod to obtain the total energy consumption.AdvantagesTest procedure alreadydeveloped; requiressome modification.Accurate.LimitationsSince many walk-ins arecustom-made, testingeach one may beburdensome, expensive,or impractical.Item 2-2Walk-ins are excluded from the scopeof ASHRAE 72.What might DOEneed to address to be ableto use this test method to rate walk-ins?Test Procedures18Rating Method 2: Develop an AEDMExamples of approaches include, but are not limited to:A calculation methodology; orA computer simulation.The AEDM must be:Based on analytic evaluation of performance data of a walk-in; andSubstantiated by testing a “significantsample” of walk-in unitsof the same typeand showing that the AEDM is accurate to a certain percentage.AdvantagesEasy to use for customequipment because itdoes not require everyunit to be tested.LimitationsMay be inaccurate.May be difficult orimpractical to develop.Item 2-3What significant sample size shouldDOE use to substantiate an AEDM?Item 2-4To what percentage should the AEDM be accurate?Test Procedures19AEDM: Example of Calculation Methodology Approach+Calculated DailyEnergy ConsumptionOther Electrical Components:Energy ConsumptionDetermined by SpecificationsCompressor (CEC):Energy ConsumptionDetermined by Heat LoadElectricalComponentHeat LoadNon-ElectricalHeat LoadConduction +InfiltrationLighting (LEC) +Evaporator and condenserfans (FEC) +Defrost Heater (DEC) +Anti-sweat Heater (AEC) +Condensate Pan Heater (PEC)+Test Procedures20AEDM: Computer Simulation ApproachA manufacturer may develop a computer model in order to calculate theenergy consumption of a walk-in.The computer model may simulate operation of the walk-in over a certaintime period.EISA states that “The test procedure may be based on computermodeling, if the computer model or models have been verified using theresults of laboratory tests on a significant sample of walk-in coolers andwalk-in freezers.”Test Procedures21Preliminary AnalysesPublic Meeting AgendaIntroduction1Rulemaking Overview2Preliminary Analyses3NOPR Analyses4Final Rule Analyses5Closing Remarks622Preliminary AnalysesMarket and Technology AssessmentFrameworkDocumentNOPRFinalRuleNationalImpactAnalysisEnergy Use andEnd-Use LoadCharacterizationMarket andTechnologyAssessmentScreeningAnalysisEngineeringAnalysisMarkups forEquipmentPriceDeterminationLife-CycleCost andPaybackPeriod AnalysisShipmentsAnalysisPreliminaryAnalyses23Relationship of AnalysesMarket and TechnologyAssessmentEquipment ClassesTechnology OptionsScreening AnalysisDesign OptionsBaseline ModelsEngineering AnalysisMarket and Technology Assessment24PurposeCharacterize the walk-in cooler and walk-in freezer industry and marketMarket and Technology AssessmentMethodIdentify and characterize manufacturers of walk-in coolers and walk-infreezersEstimate market shares and trends in the marketIdentify technologies that could be applied to walk-in coolers and walk-infreezersIdentify regulatory and non-regulatoryinitiatives intended to improveenergy efficiency of the equipment covered under this rulemaking25Overview of Walk-In Cooler and Walk-in Freezer Industry and MarketMarket and Technology Assessment7%62%31%CoolersFreezersCombinationWalk-Ins by Temperature Level536%25%39%FoodSalesFoodServiceOtherWalk-Ins by End-Use Applications61Inventory estimates from major walk-in manufacturers2Manufacturer interviews; Freedonia, Energy Savings in Refrigerated Walk-in Boxes, DOE/EE-0170, 20043Freedonia, Energy Savings in Refrigerated Walk-in Boxes, DOE/EE-0170, 20044Manufacturer data5Major manufacturers; Energy Savings Potential for Commercial Refrigeration Equipment,prepared for the U.S.Department of Energy byArthur D. Little, June, 1996 (ADL ’96).6Commercial Building Energy Consumption Survey, EnergyInformation Administration,2003; Major manufacturersTotal Installed Base: 1,000,000 units1Total Annual Sales: 40,000 units/year2Total Market Value of 2008 Sales: $800,000,0003Total Energy Consumption: 18.8 TWh426Characteristics of a Typical Walk-In Cooler and Walk-In Freezer$500$750-$1000Annual Maintenance Cost$8,900$17,500Total Installed Cost$7,900$13,500Retail Equipment Cost1010Compressor Average Life(yr)1818Insulated Box AverageLife (yr)15,60014,600Energy Use (kWh/yr)80140Size (ft2)4,92926,230Cooling Capacity (Btu/h)FreezerCoolerSources: ADL ‘96; Analysis of Standard Options for Walk-in Coolers (Refrigerators) and Freezers, Pacific Gas and Electric Company, May2004; Energy Saving Incentives for High Efficiency Scroll Compressors in Walk-In Coolers, Emerson Climate Technologies, November2006; Food Marketing Institute Facts and Figures web site (www.fmi.org, June 2008), NCI Analysis, 2008; Distributor Websites.Market and Technology Assessment27Request for FeedbackItem 3-1DOE seeks information that would contribute to the marketassessment for walk-in coolers and freezers, including information onmanufacturers, market shares, trends inthe market, technological improvements,and any other applicable information. Examples of thetype of information soughtby DOE, include, but are not limited to: alisting of walk-in cooler and freezermanufacturers and their respective marketshares, historical shipment data byequipment class, equipment efficiency data by equipment class, etc. It isparticularly important that DOE be aware of the major and small/nichemanufacturers.Item 3-2DOE seeks information on annualproduct shipments from 1990 topresent (both domestic and imports), and the corresponding shipment-weightedaverage efficiency of these shipments. Additionally, what units of measure aretypically used for annual shipments ofthis equipment (e.g., cases per year,square-feet per year (floor-area-based), cubic-feet peryear (refrigerated-volumebased), etc)?Market and Technology AssessmentExisting standards for the walk-in coolers and walk-in freezers covered under thisrulemaking are design requirements.These walk-in coolers and walk-in freezers have never before been the object ofenergy-use regulation at the Federal level.Interested parties are encouraged to submit any available, applicable data.28Possible Equipment Class Divisions to ConsiderCapacity: Small, Medium, or LargeSmall: Less than or equal to 1,000 ft2Medium: Greater than 1,000 ft2and less than or equal to 2,000 ft2Large: Greater than 2,000 ft2Type: Self-contained or Remote CondensingSelf-contained: The condensing unit is an integralpart of the walk-in cooler orfreezer construction.Remote Condensing: The condensing unit is locatedelsewhere, possibly in anequipment room.Location: Indoor or OutdoorIndoor: Fabricated within a building as part of that building.Outdoor: Constructed as a stand-alone structureor an extensionof an existingbuilding.Temperature:Cooler, Freezer, or CombinationCooler: Medium temperatureFreezer: Low temperatureCombination: Has a medium temperature and a low temperature spaceMarket and Technology Assessment29Examples of Equipment ClassesSmall, remote-condensing, indoorLarge, self-contained, outdoorSmall, self-contained, indoor (coolerfreezer combination)Small, remote condensing, indoor(walk-in display cooler)Market and Technology Assessment30Item 3-3The Department requests feedbackon the proposed classes for thewalk-in coolers and freezers covered under this rulemaking, and thecriteria used in creating the classes.Item 3-4What other equipment class divisions might be appropriate?Item 3-5What equipment classes, if any, can be combined for standards-settingpurposes because of their similarities?Item 3-6Can analyses for any one of these equipment classes be applied orextrapolated to another equipment class?Item 3-7Should all of these equipment classes be considered (e.g., do any ofthese equipment classes have few or no shipments)?Market and Technology AssessmentRequest for Feedback31Baseline UnitsWill be selected once equipmentclasses are establishedAre selected for each equipment class, against which changes resultingfrom energy conservation standards can be measuredRepresent typical characteristics of equipment in that classAre used in the engineering analysisand the life-cycle cost and paybackperiod analysisSince no energy conservation standards exist, the Department issurveying publicly-available product literature to establish baselinemodels.The Department also proposes to use information provided by interestedparties in selecting appropriate baseline models.Item 3-8The Department seeks feedback on howto select a baseline model foreach equipment class.Item 3-9The Department seeks informationon what particular components andfeatures characterize the baseline modelin each equipment class (e.g., materials,dimensions, insulation, refrigerant type, compressors, evaporators, condensers,expansion devices, fans, motors, anti-condensate devices and controls, defrostmechanisms and controls, lighting, etc.).Market and Technology Assessment32Initial Technology Choices:remote lighting ballast location (i.e., outside the refrigerated space)higher-efficiency lighting ballasts (i.e. electronic rather than magnetic)non-electric anti-sweat heatingevaporator fan motor controllers (e.g. optimize duty cycle)higher-efficiency lighting (e.g., T8 fluorescent lamps, light-emitting diodes (LEDs))anti-sweat heater controls (e.g. dew point sensor)higher-efficiency evaporator fan motors (e.g. electronically commutated motors (ECM))higher-efficiency evaporator fan bladeseconomizer coolingexternal heat rejectionambient subcoolingfloating head pressureAll Equipment Types (continued on next slide)case insulation increases or improvementsdefrost mechanism (hot-gas defrostrather than electric defrost)Screening Analysis33Item 3-10What technologies or designs, ifany, should DOE add or remove fromthe above list?Initial Technology Choices (continued):higher-efficiency condenser fan bladesSelf-contained equipment onlycondenser fan motor controllershigher-efficiency condenser fan motors (e.g., electronically commutated motors (ECM))increased condenser surface area or efficiencyliquid-to-suction heat exchanger (LSHX) (i.e., subcool liquidrefrigerant with suction line)higher-efficiency compressors (e.g., variable-speed compressors)Screening Analysishigher-efficiency expansion valves(e.g., dual-port thermostatic expansion valves (TXVs) and electronicexpansion valves (EEVs))increased evaporator surface area or efficiency to achieve lower case-evaporator temperaturedifferential (with a possible increase in fan energy)low pressure-differential evaporatorsAll Equipment Types (continued)Freezers onlydefrost cycle control (demand-based defrost rather thantime-based defrost)34Preliminary AnalysesScreening AnalysisFrameworkDocumentNOPRFinalRuleNationalImpactAnalysisEnergy Use andEnd-Use LoadCharacterizationMarket andTechnologyAssessmentScreeningAnalysisEngineeringAnalysisMarkups forEquipmentPriceDeterminationLife-CycleCost andPaybackPeriod AnalysisShipmentsAnalysisPreliminaryAnalyses35PurposeScreening AnalysisAdverse impacts on health orsafetyAdverse impacts on utility oravailability to consumersPracticability to manufacture,install and serviceTechnological feasibilityMethodEach technology will be screened based on the following four criteria:Screen out technology options that will not be considered in therulemaking for walk-in coolers and freezers36Preliminary AnalysesEngineering AnalysisFrameworkDocumentNOPRFinalRuleNationalImpactAnalysisEnergy Use andEnd-Use LoadCharacterizationMarket andTechnologyAssessmentScreeningAnalysisEngineeringAnalysisMarkups forEquipmentPriceDeterminationLife-CycleCost andPaybackPeriod AnalysisShipmentsAnalysisPreliminaryAnalyses37MethodÕDefine baseline units for each equipment class, collectbaseline performance and cost data, apply markupassumptions.ÕCollect manufacturer production cost data to estimatethe cost of the core case.ÕIdentify applicable design options, collect manufacturercost data, qualify cost-energy consumption relationshipÕIncorporate interested parties’ feedbackDefine BaselineDefine BaselineFinalizeAnalysisCost ModelDevelopmentDesign OptionIdentification andAnalysisEngineering AnalysisPurposeCharacterize the relationship between manufacturer cost and energyconsumption38Engineering AnalysisCost-Energy Consumption Curve DevelopmentEnergy Consumption

Manufacturing CostBaseline information isobtained for eachequipment class1Cost data is plottedat energyconsumption levelsfor each designoption2The design optionsare re-ordered withthe most costefficient appliedfirst3Energy Consumption

Manufacturing CostEnergy Consumption

Manufacturing Cost

BASELINE BASELINE BASELINE39Request for FeedbackEngineering AnalysisItem 5-1DOE requests feedback on using a design-option approach todetermine the relationship between manufacturer production cost andenergy-efficiency levels for walk-in coolers and freezers.Item 5-2DOE requests feedback on an appropriate representativecapacity (i.e., the most common or highest-volume capacity) for eachequipment class of walk-in coolers and freezers.Item 5-3DOE seeks information on what particular components andfeatures (e.g., materials, dimensions, compressors, coils, expansiondevices, fans, motors, controls, and panel construction characteristics)characterize the baseline model in each equipment class.40Manufacturing Cost ComponentsDirect materialDirect laborFactory overheadDepreciationSales & marketingResearch & developmentInterestProfitEngineering AnalysisItem 5-4The Department seeks commenton the planned markup approachproposed for developing estimatesof manufacturer selling prices.FullProductionCostMarkups(Non-Production Costs)ManufacturerSelling Price+ =Examples of publicly available information:SEC 10-K reportsCompany annual reportsDun and Bradstreet reportsValue Line industry statisticsStandard and Poor’s composite industry statisticsIbbotson Associates reports41Item 5-5Are there proprietary designs thatthe Department should consider forany of the equipment under consideration by this rulemaking? If so, how should theDepartment acquire the cost data necessary for evaluating these designs?Item 5-6Are there additional outside issues that the Department should considerin its analysis of walk-in coolers and freezers?Engineering AnalysisProprietary DesignsThe Department will evaluate all design options that are commerciallyavailable or present in a working prototype, including proprietary designs.Proprietary designs will only be considered if they do not present aunique path to a given energy consumption level.The confidentiality of manufacturers will be maintained.Outside Regulatory ChangesConsider the effects to manufacturers of other regulatory changesoutside of the standardsrulemaking process.42Preliminary AnalysesMarkups for Equipment Price DeterminationFrameworkDocumentNOPRFinalRuleNationalImpactAnalysisEnergy Use andEnd-Use LoadCharacterizationMarket andTechnologyAssessmentScreeningAnalysisEngineeringAnalysisMarkups forEquipmentPriceDeterminationLife-CycleCost andPaybackPeriod AnalysisShipmentsAnalysisPreliminaryAnalyses43Markups for Equipment Price DeterminationPurposeDevelop overall distribution chain price markups from the manufacturerto the customerEstablish the customer prices for both baseline equipment andequipment at higher standard levelsManufacturerCustomerCustomerManufacturerCustomerManufacturerDistributorDistributorDistribution Channel 1Distribution Channel 3 (Nat’l Acct)Distribution Channel 2Mech. ContractorDistribution Channels44Markups for Equipment Price DeterminationTwo Types of Markups in Distribution Chain:Baseline and IncrementalMarkups relate consumer price to cost of goods sold (CGS).Baseline markups relateprice to cost prior toa change in efficiency.Baseline markups indicate a customer price that covers allof a distributor’sor contractor’s expenses plus profit.Incremental markups relate the incremental change in consumer price tothe incremental change in CGS.Incremental markups cover only expensesthat vary with CGS – in this case,expenses that increase due to anincrease in equipment efficiency.Certain costs, such as direct laborcosts (salaries, payroll, rental andoccupancy) do not vary with efficiency induced changes in CGS and remainconstant in the calculation of incremental markups.Some costs may remain constant when CGS increases45Item 7-1The Department requests information frominterested partieson theproposed distribution paths for the walk-in coolers and freezers covered under thisrulemaking. The Department also requests information onthe relative fractions ofshipments expected for each path.Item 7-2The Department requests feedback onif the overall markups for thewalk-in coolers and freezers covered underthis rulemaking foreach path in thedistribution chain.Item 7-3The Department requests feedback onits proposal to use incrementaldistribution chain markups for thelife cycle cost (LCC)analysis.Item 7-4The Department seeks comment on other sources of relevant data thatcould be used to characterize markups for the walk-in coolers and freezers.Markups for Equipment Price DeterminationRequest for Feedback46Preliminary AnalysesEnergy Use and End-Use Load CharacterizationFrameworkDocumentPreliminaryAnalysesNOPRFinalRuleNationalImpactAnalysisEnergy Use andEnd-Use LoadCharacterizationMarket andTechnologyAssessmentScreeningAnalysisEngineeringAnalysisMarkups forEquipmentPriceDeterminationLife-CycleCost andPaybackPeriod AnalysisShipmentsAnalysis47Develop energy use and peak electricity demand characteristics forbuildings that use walk-in coolers and freezers.Provide the basis for the unit energy costs used in the Life-Cycle CostAnalysis.Energy Use and End-Use Load CharacterizationPurpose48Energy Use and End-Use Load CharacterizationMethodThe Department is considering conducting a simplified analysis of walkin coolers and freezers that does not address the impact of higherefficiency design options on building space heating and cooling loads,but is based on the engineering analysis tools the Department isdeveloping for walk-in coolers and freezers.Statistical data will be used to develop appropriate weights for theresulting energy use data. These weights will be used to developregional and national average net energy use figures as well as energyuse distributions for specific equipment classes and efficiency levels.49Item 6-1The Department seeks inputon the relative meritsof incorporating thewhole building space heating and cooling energy in its energy analysis of walk-incoolers and freezers. If a wholebuilding analysis is recommended,theDepartment seeks the reasons supporting this typeof analysis as well ascomments on what building types and analysis tool, and for which equipmentclasses, such analysis should be considered.Request for FeedbackEnergy Use and End-Use Load Characterization50Preliminary AnalysesLife-Cycle Cost and Payback Period AnalysisFrameworkDocumentPreliminaryAnalysesNOPRFinalRuleNationalImpactAnalysisEnergy Use andEnd-Use LoadCharacterizationMarket andTechnologyAssessmentScreeningAnalysisEngineeringAnalysisMarkups forEquipmentPriceDeterminationLife-CycleCost andPaybackPeriod AnalysisShipmentsAnalysis51LCC equals customer price plusthe sum of annual operating costsdiscounted to a particular base yearEconomic evaluation from the customer perspectiveAnalysis Implemented in an Excel®spreadsheetResults are expressed as LCC difference (baseline minus standardlevel)Simple payback (years) is also calculated and reported in this analysisCombineChangesin CostsLCC ResultsLife-Cycle Cost and Payback Period AnalysisMethodFirst Cost(Customer Price +Installation Cost)OperatingExpensesConvert toPresentValuePurposeAssess the net life cycle cost (LCC) impacts of differing efficiency levelsfor walk-in coolers and freezers on the customer52LCC FlowchartLife-Cycle Cost and Payback Period AnalysisBaselineManufacturerPriceStd-LevelManufacturerPriceInstallationCostFromEngineeringAnalysis(Price is aFunction ofEfficiency)From Markupsfor EquipmentPriceDeterminationAnalysisElectricityPricesRepair CostMaintenanceCostLifetimeDiscount RateElectricityPrice TrendFrom EnergyUse & End UseLoadCharacterizationAnalysis(Energy Use &Load are aFunction ofEfficiency)EnergyConsumptionPowerDemandDistributorMarkupSales TaxMechanicalContractorMarkupConsumerPriceData InputsIntermediate AnalysisOutput ResultsTotal InstalledCostAnnual EnergyExpenseAnnualOperatingExpenseLifetimeOperatingExpensePaybackPeriodLife-CycleCost53Energy PricesEnergy prices are necessary to convert the energy consumption for theequipment analyzed to energy costs.DOE proposes to use regional average electricity and natural gas fuelprices for its analysis of walk-in coolers and freezers as mandated byEISA.DOE will use the Energy Information Administration (EIA)Annual EnergyOutlook(AEO) as the default source of projections for future energyprices.DOE will use the latestAEOforecasts for subsequent analyses, as theybecome available.Life-Cycle Cost and Payback Period AnalysisItem 8-1The Department seeks commenton the proposed approaches forestimating current and forecasted energy prices.54Discount RatesDiscount rates are used to convert streams of annual operatingexpenses to present value in the LCC analysis.The Department will derive the LCC discount rates by estimating theweighted average cost of capital (WACC) for companies that purchasewalk-in coolers and freezers.Life-Cycle Cost and Payback Period AnalysisItem 8-2The Department seeks commenton the proposed approaches forestimating discount rates forcustomerspurchasing the equipment covered underthis rulemaking.Item 8-3Given the relatively narrow commercial application of most of theequipment covered under this rulemaking,which, if any, commercial sectorsbeyond grocery stores and restaurants should be considered in the evaluation ofdiscount rates? In addition, do interestedparties feel government purchases of thisequipment are large enough to require that they be included in the evaluation ofdiscount rates?55Other LCC and PBP Analysis InputsInstallation costsEquipment lifetimeRepair costsMaintenance costsLife-Cycle Cost and Payback Period AnalysisItem 8-4The Department seeks feedback on whether changes in maintenance,repair, and installation costs will be negligible for equipment with lower energyconsumption. The Department alsoseeks feedback on whether changes inmaintenance, repair, and installation costs will change as a result of efficiencyincreases and, if so, whetherthose changes are likely tobe negligible. If thosecosts are not likely to be negligible, pleaseexplain what those costs would be andwhy this would likely be the case.Item 8-5If it is not appropriate to assume thatchanges in maintenance, repair, orinstallation costs would be negligible for equipment with lower energy consumption,the Department seeks comment on appropriate methodologies for assessingchanges to each of these costs.Item 8-6The Department seeks comment onappropriate equipment lifetimes forthe equipment covered in this rulemaking and the basis for these estimates.56Preliminary AnalysesShipments AnalysisFrameworkDocumentPreliminaryAnalysesNOPRFinalRuleNationalImpactAnalysisEnergy Use andEnd-Use LoadCharacterizationMarket andTechnologyAssessmentScreeningAnalysisEngineeringAnalysisMarkups forEquipmentPriceDeterminationLife-CycleCost andPaybackPeriod AnalysisShipmentsAnalysis57PurposeProject the rate of new equipment shipments under a proposed energyconservation standardTrack the WICF equipment stock of equipment, by vintage, over the timeframe of the standardShipments AnalysisMethodThe life cycle of equipment is modeled as a “cradle to grave” process inwhich equipment moves from one state to anotherNew equipment is purchasedand shipped to a buildingEquipment operates for some number ofyears in a building or attached to abuildingAlso, some equipment is “constructed on-site”The equipment is retiredData sources used include: product lifetimes, estimates of commercialfloor space, current product saturation rates by building typeThe shipments model is calibrated to historical shipments and marketsaturation data58Item 9-1The Department seeks information onrepresentative saturation rates foreachequipment class covered under this rulemaking, as well as industry-trenddata regarding relative growth in each equipment class.Item 9-2As part of its preliminary manufacturer impact analysis, the Departmentwill seek input from manufacturers onthe potential impact of new energyconservation standards on equipment shipments. Other interested parties are alsowelcome to provide input. TheDepartment also requestsinput on any market-pullprograms that currently exist to promote the adoption of more-efficient WICFequipment.Request for FeedbackShipments Analysis59Preliminary AnalysesNational Impact AnalysisFrameworkDocumentPreliminaryAnalysesNOPRFinalRuleNationalImpactAnalysisEnergy Use andEnd-Use LoadCharacterizationMarket andTechnologyAssessmentScreeningAnalysisEngineeringAnalysisMarkups forEquipmentPriceDeterminationLife-CycleCost andPaybackPeriod AnalysisShipmentsAnalysis60Uses a spreadsheet-based analysis toolDevelops annual time series of energy and economic impactsProvides national summations of impacts for defined analysis periodsUtilizes the shipments model to estimate the total stock of walk-in coolersand freezers in service in any yearUtilizes the LCC to estimate cost and energy use per unit in any given yearAggregates the costs and energy use,by vintage, for all years in theanalysis periodReports estimates for energy use at the source of production (quadssource energy)Reports estimates for economic impact as change in NPV (in constantyear dollars)Accounts for the time-value of money though use of defined discount ratesPurposeDevelop National Energy Savings (NES) and National Net Present Value(NPV) impact estimates for higher-efficiency standard levels.MethodNational Impact Analysis61Item 10-1The Department seeks commenton its plan to develop NESspreadsheet models for estimating nationalimpacts of energy conservationstandardsfor WICF equipment.National Impact AnalysisRequest for Feedback62NOPR AnalysesPublic Meeting AgendaIntroduction1Rulemaking Overview2Preliminary Analyses3NOPR Analyses4Final Rule Analyses5Closing Remarks663Revise Preliminary AnalysesEnvironmentalAssessmentLife-CycleCostSubgroupAnalysisManufacturerImpactAnalysisUtilityImpactAnalysisEmploymentImpactAnalysisAnalyses for Notice of Proposed RulemakingRevisePreliminaryAnalysesRegulatoryImpactAnalysisRevisePreliminaryAnalysesFrameworkDocumentPreliminaryAnalysesNOPRFinalRule64Life-Cycle Cost Subgroup AnalysisEnvironmentalAssessmentLife-CycleCostSubgroupAnalysisManufacturerImpactAnalysisUtilityImpactAnalysisEmploymentImpactAnalysisAnalyses for Notice of Proposed RulemakingRegulatoryImpactAnalysisRevisePreliminaryAnalysesFrameworkDocumentPreliminaryAnalysesNOPRFinalRule65PurposeAnalyze the economic impacts of standards on customer subgroups whomay be disproportionately impacted compared with the general userpopulationItem 11-1The Department seeks input as to whatcustomersubgroups theDepartment should considerin the present rulemaking. Examples of possiblesubgroups the Department could considerappropriate for walk-in coolers andfreezers include independent grocery stores and small convenience stores.Life-Cycle Cost Subgroup AnalysisExtend the LCC analysis to examine the impacts for defined subgroupsMethod66Manufacturer Impact AnalysisEnvironmentalAssessmentLife-CycleCostSubgroupAnalysisManufacturerImpactAnalysisUtilityImpactAnalysisEmploymentImpactAnalysisAnalyses for Notice of Proposed RulemakingRegulatoryImpactAnalysisRevisePreliminaryAnalysesFrameworkDocumentNOPRFinalRulePreliminaryAnalyses67Manufacturer Impact AnalysisPurposeAssess the impacts of standards on manufacturersIdentify and estimate impacts on manufacturer subgroups that may bemore severely impacted than the industry as a wholeExamine the impact of cumulative regulatory burden on the industryMethodAnalyze industry cash flow and net present value through use of theGovernment Regulatory Impact Model (GRIM)Interview manufacturers to refine inputs to the GRIM, develop subgroupanalyses, and address qualitative issuesOutputIndustry Net Present Value impactsSubgroup Net Present Value impactsOther impacts68Manufacturer Impact AnalysisMethodologyThe MIA consists of three main phases:IndustryprofileDeveloppreliminaryGRIMDevelopinterviewguideInterviews& industrywide /subgroupanalysesAssess directemployment,competition,cumulativeburdenPhase 2Phase 3PreliminaryMIAInterviewsPhase 1PreliminaryAnalysesNOPR69Manufacturer Impact AnalysisRequest for FeedbackItem 12-1What procedures should DOE followwhen scheduling interviews andrequesting information?Item 12-2DOE seeks comment on the establishment of manufacturer subgroupsfor walk-in coolers and freezers.Item 12-3What regulations or pending regulations should DOE consider in theanalysis of cumulative regulatory burden?70Utility Impact AnalysisEnvironmentalAssessmentLife-CycleCostSubgroupAnalysisManufacturerImpactAnalysisUtilityImpactAnalysisEmploymentImpactAnalysisAnalyses for Notice of Proposed RulemakingRegulatoryImpactAnalysisRevisePreliminaryAnalysesFrameworkDocumentPreliminaryAnalysesNOPRFinalRule71PurposeAssess the overall impacts on domestic energy supplies that would resultfrom implementation of energy conservation standards.Utility Impact AnalysisThe Department proposes to use NEMS-BT, a variant of the NEMS(National Energy Modeling System)developed and used by DOE/EIA fortheir Annual Energy Outlook report, as the basis of the Utility ImpactAnalysis.Use the energy savings calculated from the NES spreadsheet analysis toreduce the sector electrical loads from the Commercial Building DemandModule in NEMS-BT.Energy savings translated to a reduction in the electrical demand facedby the utility system over time resulting from the energy conservationstandard.MethodItem 13-1The Department seeks input frominterested partieson its proposed useof NEMS-BT to conductthe utility impact analysis.72Employment Impact AnalysisEnvironmentalAssessmentLife-CycleCostSubgroupAnalysisManufacturerImpactAnalysisUtilityImpactAnalysisEmploymentImpactAnalysisAnalyses for Notice of Proposed RulemakingRegulatoryImpactAnalysisRevisePreliminaryAnalysesFrameworkDocumentPreliminaryAnalysesNOPRFinalRule73PurposeAssess the overall impact on national employment from energyconservation standards.Include both direct and indirect employment impactsDirect employment impacts are estimated in the manufacturer impact analysisIndirect employment impacts result from shifting customer expendituresamong goods and services( “substitution effect”)and changing equipmentand energy costs (“income effect”)Employment Impact AnalysisMethodThe Department intends to use the IMSET (Impact of Sector EnergyTechnologies) model for the evaluation of indirect employmentimpacts.Item 14-1The Department requests feedbackon this approach to assessingemployment impacts.74Environmental AssessmentEnvironmentalAssessmentLife-CycleCostSubgroupAnalysisManufacturerImpactAnalysisUtilityImpactAnalysisEmploymentImpactAnalysisAnalyses for Notice of Proposed RulemakingRegulatoryImpactAnalysisRevisePreliminaryAnalysesFrameworkDocumentPreliminaryAnalysesNOPRFinalRule75PurposeEstimate national environmental impacts from new energy conservationstandards for walk-in coolers and freezers covered under this rule.Environmental AssessmentThe Department intends to use the environmental impacts predicted fromthe NEMS-BT modeling analysis used for the Utility Impact Analysis.Impacts calculated within NEMS include:Quantities of U.S. emissions of nitrogen oxides (NOx), mercury (Hg) and(CO2) and from power plants.Direct environmental impacts from reduction of fossil fuel use at the buildinglevel.Any measurable impact from NEMS interms of the trading price of sulfurdioxide (SO2) in the utility sector and subsequent impact on SO2emissions.DOE will examine economic values associated with emissionsreductions.Method76Environmental AssessmentItem 15-1The Department seeks input from interested parties on its plans to useNEMS-BT to conduct the environmental impact analysis on the equipment coveredby this rulemaking. DOE is particularly interested in whether there are any otherapproaches to the environmental assessment that itshould consider and theadvantages and disadvantages for each of those approaches.Item 15-2DOE invites comments on how to estimate such monetary valuesassociated with emissions reductions oron any widely accepted values whichmight be used in DOE’s analyses.Item 15-3DOE seeks input on other environmental factors to consider in thisrulemaking.Request for Feedback77Regulatory Impact AnalysisEnvironmentalAssessmentLife-CycleCostSubgroupAnalysisManufacturerImpactAnalysisUtilityImpactAnalysisEmploymentImpactAnalysisAnalyses for Notice of Proposed RulemakingRegulatoryImpactAnalysisRevisePreliminaryAnalysesFrameworkDocumentPreliminaryAnalysesNOPRFinalRule78PurposeExplore the potential for non-regulatory approaches to supplant oraugment energy conservation standards to improve efficiency for WICFequipment.Regulatory Impact AnalysisItem 16-1The Department is unaware ofany current non-regulatoryinitiativesthatspecifically target the walk-in coolersand freezers covered under this rulemaking.Are interested parties aware of any suchinitiativesthat should be examined asoptional, non-regulatory approaches?Item 16-2Are there specific subgroups ofend-users whom the Departmentshould consider in its review of potential adverse impacts from standardsdeveloped under this rulemaking?MethodBase the assessment on the actual impacts of any such initiatives todate. DOE will consider information presented regarding the impactsthat any existing initiative might have in the future79Public Meeting AgendaFinal Rule AnalysesIntroduction1Rulemaking Overview2Preliminary Analyses3NOPR Analyses4Final Rule Analyses5Closing Remarks680Rulemaking OverviewFrameworkDocumentNOPRFinalRuleAnalyses for Final RuleDOJReviewPreliminaryAnalysesReviseNOPRAnalyses81Closing RemarksPublic Meeting AgendaIntroduction1Rulemaking Overview2Preliminary Analyses3NOPR Analyses4Final Rule Analyses5Closing Remarks682Closing RemarksThank you. For more information...Website:http://www.eere.energy.gov/buildings/appliance_standards/http://www1.eere.energy.gov/buildings/appliance_standards/commercial/wicf.htmlWritten commentsThe comment period will be open untilFebruary 12, 2009.Please reference the rulemaking docket numberEERE-2008-BT-STD-0015and/or RIN number1904-AB86, in all correspondence.Email:wicf-2008-std-0015@ee.doe.govMail:Brenda EdwardsU.S. Department of EnergyBuilding Technologies Program, Mail stop EE-2JFramework for Walk-In Coolers andWalk-In Freezers, RIN 1904-AB861000 Independence Avenue, SWWashington DC, 20585-0121Courier:Brenda EdwardsU.S. Department of EnergyBuilding Technologies ProgramWalk-In Coolers and Freezers Rulemaking, RIN 1904-AB86950 L’Enfant Plaza, 6th FloorWashington, DC 20024Contact:Charles Llenza, telephone:(202) 586-2192, or e-mail: charles.llenza@ee.doe.gov83BACKUP SLIDES84Manufacturer Impact AnalysisLegislative RequirementsEPCADOE must consider the economic impact of standards on manufacturers.DOE must consider the impacts ofany lessening of competition in theindustry.The Process Rule“Procedures, Interpretations and Policiesfor Consideration of New or RevisedEnergy Conservation Standards for Consumer Products” (10 CFR 430,Subpart C, Appendix A).Contains principles forthe analysis of regulatoryimpacts on manufacturers.2006 Report to CongressDOE announced changes to theformat of the MIA (asrequired by section 141of EPACT 2005).DOE will collect, evaluate, and report preliminary manufacturer impactanalysis information in thePreliminary Analyses phase.This information includes the anticipated conversion capital expenditures byefficiency level and the anticipated impacts on jobs.85Background: Performance StandardsEISA Section 312(b): Directs DOE to issue energy conservationstandards.A.“The Secretary shall publish performance-based standards for walkin coolers and walk-in freezers that achieve the maximumimprovement in energy that the Secretary determines istechnologically feasible and economically justified” byJanuary 1,2012.B.The standards shall apply to walk-ins that are manufacturedbeginning on the date that is3 years after the final rule ispublished.If the Secretary determines, by rule, that a 3-year periodis inadequate, the Secretary may establish an effective date for walkins manufactured beginning on thedate that is not more than5 yearsafter the date of publication of a final rule.Introduction86Background: Test ProceduresEISA Section 312(c): Details requirements for test procedures.A.For the purpose of test procedures for walk-in coolers and walk-infreezers:i.The R value shall be the 1/K factormultiplied by the thickness ofthe panel.ii.The K factor shall be based on ASTM test procedure C518-2004.iii.For calculating the R value for freezers, the K factor of the foamat 20 °F (average foam temperature) shall be used.iv.For calculating the R value for coolers, the K factor of the foamat 55 °F (average foam temperature) shall be used.;B.Development of a test procedure:i.Not later thanJanuary 1, 2010, the Secretary shall establish atest procedure to measure the energy use of walk-in coolers andwalk-in freezers.ii.The test procedure may be based on computer modeling, if thecomputer model or models have been verified using the resultsof laboratory tests on a significant sample of walk-in coolers andwalk-in freezers.Introduction87Background: Design Standards: EISA Section 312(b)EPCA Section 342(f)(1): “In general.— ...eachwalk-in cooler or walk-in freezermanufactured on or after January 1, 2009, shall—A.“have automatic door closers that firmly close all walk-in doors that havebeen closed towithin one inch of full closure, except that this subparagraphshall not apply to doors widerthan 3 feet 9 inches ortaller than 7 feet;B.“have strip doors, springhinged doors, or other method of minimizinginfiltration when doorsare open;C.“contain wall, ceilingand door insulationof at least R-25 for coolers and R-32 for freezers,except that this subparagraph shall not apply to glazed portions of doors norto structuralmembers;D.“contain floor insulation of at least R-28 for freezers;E.“for evaporator fan motors ofunder 1 horsepower and less than 460 volts, use—i.“electronically commutatedmotors (brushless direct current motors); orii.“3-phase motors;F.“for condenser fan motorsof under 1 horsepower, use—i.“electronically commutated motors;ii.“permanent split capacitor-type motors; oriii.“3-phase motors; andG.For all interior lights, use light sources with an efficacy of40 lumens per watt or more,including ballast losses (if any),except that light sources withan efficacy of 40 lumens perwatt or less, including ballast losses (if any), may be used in conjunction with a timer ordevice that turns off the lights within 15 minutes of whenthe walk-in cooler or walk-infreezer is not occupied by people.”Introduction88Background: Design Standards: EISA Section 312(b)EPCA Section 342(f)(1): “Electronically commutated motors.—A.“In general.— The requirements of paragraph (1)(E)(i) for electronicallycommutated motors shall take effect January 1, 2009, unless,prior to thatdate, the Secretary determines that such motorsare only available from 1manufacturer.B.“Other types of motors.— In carrying out paragraph (1)(E)(i) andsubparagraph (A), the Secretary may allow other types of motors if theSecretary determines that, on average,those other motors use no moreenergy in evaporator fan applications than electronically commutated motors.C.“Maximum energy consumption level.— The secretary shall establish themaximum energy consumption level undersubparagraph (B) not later thanJanuary 1, 2010.89Background: Design Standards: EISA Section 312(b)EPCA Section 342(f)(1): “Additional specifications.— Each walk-in coolerand walk-in freezer with transparent reach-in doors manufactured on orafter January 1, 2009, shall also meet the following specifications:A.“Transparent reach-in doors for walk-in freezers and windows in walk-infreezer doors shall be of triple-pane glasswith either heat-reflective treatedglass or gas fill.B.“Transparent reach-in doorsfor walk-in coolers and windows in walk-in coolerdoors shall be:i.“double-pane glass with heat-reflective treated glass and gas fill; orii.“triple-pane glass with either heat-reflective treated glass or gas fill.C.“If the appliance has an antisweat heater without antisweat heater controls,the appliance shall have a total door rail,glass, and frame heater power drawof not more than 7.1 watts per squarefoot of door opening (for freezers) and3.0 watts per square foot ofdoor opening (for coolers).D.“If the appliance has an antisweat heater with antisweat heater controls, andthe total door rail, glass, and frame heater power draw is more than 7.1 wattsper square foot of door opening (for freezers) and 3.0 watts per square foot ofdoor opening (for coolers), the antisweat heater controls shall reduce theenergy use of the antisweatheater in a quantity corresponding to the relativehumidity in the air outside the door orto the condensation on the inner glasspane.”