CHAPTER 3. ENGINEERING ANALYSIS

TABLE OF CONTENTS

**3. 1**  **INTRODUCTION**

**........................................................................................................... 3­1** 

**3. 2**  **EQUIPMENT CLASSES**  **ANALYZED.......................................................................... 3­2** 

**3. 2.1**  **Representative Output**  **Capacities........................................................................ 3­2**

**3. 3**  **METHODOLOGY OVERVIEW** 

**.................................................................................... 3­4** 

**3. 3.1**  **Approach.............................................................................................................. 3­4**

**3. 3.2**  **Selection of**  **Baseline Efficiency**  **Levels**

**.............................................................. 3­5** 

**3. 3.3**  **Identification of**  **Efficiency Levels**  **for Analysis..................................................**  **3­5**

**3. 3.4**  **Data Collection** 

**.................................................................................................... 3­8** 

**3. 3.5**  **Aggregating Contractor**  **Cost Data.......................................................................**  **3­8**

**3. 3.6**  **Oil­Fired Commercial**  **Packaged Boilers............................................................. 3­9** 

**3. 4**  **ENGINEERING ANALYSIS**  **SUMMARY OF**  **RESULTS............................................ 3­9** 

**3­i**LIST OF TABLES

**Table 3.1**  **Equipment Classes**  **Analyzed in**  **the Engineering**  **Analysis and**  **the Efficiency**  **Levels in** 

**ASHRAE Standard**  **90.1­2007................................................................................... 3­4**

**Table 3.2**  **Baseline Efficiency Levels**  **for Commercial Packaged**  **Boilers................................... 3­5**

**Table 3.3**  **Small Gas­Fired**  **Hot Water**  **Commercial Packaged**  **Boiler Efficiency Levels............ 3­6** 

**Table 3.4**  **Small Gas­Fired**  **Steam, All**  **Except Natural**  **Draft Commercial**  **Packaged Boiler** 

**Efficiency Levels** 

**....................................................................................................... 3­6** 

**Table 3.5**  **Small Gas­Fired**  **Steam Natural**  **Draft Commercial**  **Packaged Boiler**  **Efficiency Levels** 

**............................................................................................................................... ..... 3­6** 

**Table 3.6**  **Small Oil­Fired**  **Hot Water**  **Commercial Packaged**  **Boiler Efficiency**  **Levels**

**............. 3­6** 

**Table 3.7**  **Small Oil­Fired**  **Steam Commercial**  **Packaged Boiler**  **Efficiency Levels.................... 3­7**

**Table 3.8**  **Large Gas­Fired**  **Hot Water**  **Commercial Packaged**  **Boiler Efficiency Levels............ 3­7** 

**Table 3.9**  **Large Gas­Fired**  **Steam, All**  **Except Natural**  **Draft Commercial**  **Packaged Boiler** 

**Efficiency Levels** 

**....................................................................................................... 3­7** 

**Table 3.10**  **Large Gas­Fired**  **Steam Natural**  **Draft Commercial**  **Packaged Boiler**  **Efficiency Levels** 

**............................................................................................................................... ..... 3­7** 

**Table 3.11**  **Large Oil­Fired**  **Hot Water**  **Commercial Packaged**  **Boiler Efficiency Levels........... 3­8** 

**Table 3.12**  **Large Oil­Fired**  **Steam Commercial**  **Packaged Boiler**  **Efficiency Levels..................**  **3­8**

**Table 3.13**  **Incremental Contractor**  **Cost for**  **Small Gas**  **Hot Water**  **Commercial Packaged**  **Boilers**

**with an**  **800 kBTU/h**  **Output Capacity** 

**..................................................................... 3­10** 

**Table 3.14**  **Incremental Contractor**  **Cost for**  **Small Gas**  **Steam All**  **Except Natural**  **Draft**

**Commercial Packaged**  **Boilers with**  **an 800**  **kBTU/h Output**  **Capacity.................... 3­10** 

**Table 3.15**  **Incremental Contractor**  **Cost for**  **Small Gas**  **Steam Natural**  **Draft Commercial** 

**Packaged Boilers**  **with an**  **800 kBTU/h**  **Output Capacity** 

**........................................ 3­10** 

**Table 3.16**  **Incremental Contractor**  **Cost for**  **Small Oil**  **Hot Water**  **Commercial Packaged**  **Boilers**

**with an**  **800 kBTU/h**  **Output Capacity** 

**..................................................................... 3­10** 

**Table 3.17**  **Incremental Contractor**  **Cost for**  **Small Oil**  **Steam Commercial**  **Packaged Boilers**  **with**

**an 800**  **kBTU/h Output**  **Capacity**

**............................................................................. 3­11** 

**Table 3.18**  **Incremental Contractor**  **Cost for**  **Large Gas**  **Hot Water**  **Commercial Packaged**  **Boilers**

**with a**  **3,000 kBTU/h**  **Output Capacity** 

**.................................................................... 3­11** 

**3­ii Table**  **3.19 Incremental**  **Contractor Cost**  **for Large**  **Gas Steam**  **All Except**  **Natural Draft** 

**Commercial Packaged**  **Boilers with**  **a 3,000**  **kBTU/h Output**  **Capacity................... 3­11** 

**Table 3.20**  **Incremental Contractor**  **Cost for**  **Large Gas**  **Steam Natural**  **Draft Commercial** 

**Packaged Boilers**  **with a**  **3,000 kBTU/h**  **Output Capacity** 

**....................................... 3­11** 

**Table 3.21**  **Incremental Contractor**  **Cost for**  **Large Oil**  **Hot Water**  **Commercial Packaged**  **Boilers**

**with a**  **3,000 kBTU/h**  **Output Capacity** 

**.................................................................... 3­12** 

**Table 3.22**  **Incremental Contractor**  **Cost for**  **Large Oil**  **Steam Commercial**  **Packaged Boilers**  **with**

**a 3,000**  **kBTU/h Output**  **Capacity**

**............................................................................ 3­12** 

**3­iii**CHAPTER 3. ENGINEERING ANALYSIS

3. 1 INTRODUCTION

**The engineering**  **analysis establishes**  **the relationship**  **between the**  **cost and**  **the**

**energy efficiency**  **of commercial**  **packaged boilers.**  **This cost­efficiency**  **relationship**

**serves as**  **the basis**  **for cost­benefit**  **calculations for**  **individual customers**  **and the**  **Nation.**

**To establish**  **the industry**  **cost­efficiency relationship,**  **the U.S.**  **Department of** 

**Energy (DOE)**  **used equipment**  **performance information**  **from manufacturer**  **catalogs in** 

**conjunction with**  **discussions with**  **commercial boiler**  **distributors and**  **mechanical**

**contractors. DOE**  **subsequently developed**  **commercial packaged**  **boiler costs**  **primarily**

**from data**  **provided by**  **mechanical contractors**  **and equipment**  **distributors, which** 

**categorized contractor**  **costs by**  **thermal and**  **combustion efficiency,**  **output capacity,**  **input**

**fuel, type**  **of heating**  **output (i.e.**  **hot water**  **or steam),**  **and the**  **type of**  **boiler draft**  **system**

**(atmospheric or**  **other). DOE**  **used this**  **data, along**  **with the**  **rated performance**  **data for** 

**each boiler**  **(identified by**  **reviewing data**  **found in**  **the January**  **2008 edition**  **of the** 

**Institute of**  **Boiler and**  **Radiator Manufacturers’**  **(I=B=R) Ratings**  **for Boilers,**  **Baseboard**

**Radiation, Finned**  **Tube (Commercial**  **Radiation), and**  **Indirect­Fired Water**  **Heaters (2008** 

**I=B=R Directory)**  **1 and**  **manufacturer equipment**  **literature) to**  **develop discrete**  **industry**

**cost­efficiency points.**  **In a**  **subsequent life­cycle**  **cost analysis**  **(chapter 4),**  **DOE used**  **the**

**cost­efficiency data**  **points to**  **determine customer**  **prices for**  **commercial boiler**  **equipment**

**by applying**  **distribution channel**  **markups.**

**The Energy**  **Policy and**  **Conservation Act**  **of 1975**  **(EPCA) establishes**  **energy**

**conservation standards**  **for commercial**  **packaged boilers**  **under 42**  **U.S.C. 6313(a)(4)(C)** 

**and (D).**  **These energy**  **conservation standards**  **are measured**  **and expressed**  **in terms**  **of**

**combustion efficiency**  **a (E**  **C ).**  **However, the**  **efficiency levels**  **for commercial**  **packaged**

**boilers specified**  **by the**  **American Society**  **of Heating,**  **Refrigerating, and**  **Air**

**Conditioning Engineers,**  **Inc. (ASHRAE)**  **and the**  **Illuminating Engineering**  **Society of** 

**North America**  **(IESNA) Standard**  **90.1­2007, “**  Energy Standard for Buildings Except

Low­Rise Residential Buildings” **(ASHRAE Standard**  **90.1­2007) are**  **expressed in**  **terms**

**of thermal**  **efficiency b**  **(E T**  **) for**  **eight equipment**  **classes and**  **E C**  **for the**  **remaining two** 

**equipment classes.**  **In conducting**  **the engineering**  **analysis, DOE**  **estimated the** 

**incremental cost**  **to increase**  **E T**  **for eight**  **equipment classes**  **and the**  **incremental cost**  **to**

**increase E**  **C of**  **the remaining**  **two equipment**  **classes above**  **baseline performance**  **levels,**

**consistent with**  **the metric**  **specified by**  **the ASHRAE**  **Standard 90.1­2007**  **efficiency**

**levels.**

**In this**  **chapter, DOE**  **discusses the**  **equipment classes**  **it analyzed,**  **the**

**identification of**  **representative equipment,**  **the identification**  **of baseline**  **equipment and** 

**efficiency levels**  **above the**  **baseline, and**  **the process**  **for collecting**  **data and**  **developing**

**a Combustion**  **efficiency is**  **defined for**  **commercial packaged**  **boilers at**  **part 431.82**  **of the**  **Code of**  **Federal**

**Regulations as**  **100 percent**  **minus the**  **percent of**  **flue loss.**  **(Percent flue**  **loss is**  **based on**  **input fuel**  **energy.)**

**b Thermal**  **efficiency, as**  **used in**  **ASHRAE Standard**  **90.1­2007 for**  **commercial packaged**  **boilers, accounts** 

**for jacket**  **losses as**  **well as**  **flue losses,**  **so it**  **can be**  **considered combustion**  **efficiency minus**  **jacket losses.** 

**3­1 industry**  **cost­efficiency results.**  **The engineering**  **analysis produces**  **a set**  **of cost** 

**efficiency results**  **that represent**  **the average**  **incremental contractor**  **cost of**  **increasing**

**energy efficiency**  **levels above**  **the baseline**  **levels for**  **commercial packaged**  **boilers.**

3. 2 EQUIPMENT CLASSES ANALYZED

**EPCA establishes**  **two equipment**  **classes that**  **categorize commercial**  **packaged**

**boilers by**  **the type**  **of fuel**  **the boiler**  **burns (**  **i. e.** 

**, gas**  **and oil).**  **(42 U.S.C.**  **6313(a)(4)(C)­**

**(D); 10**  **CFR 431.87)**  **As presented**  **in the**  **market assessment**  **(chapter 2),**  **DOE proposes** 

**to further**  **subdivide the**  **equipment classes**  **by input**  **capacity (“small”**  **or “large”)**  **c**

**, type**  **of**

**heating output**  **(hot water**  **or steam),**  **and draft**  **type (natural**  **draft or**  **other). These** 

**subdivisions were**  **suggested by**  **ASHRAE Standard**  **90.1­2007. DOE**  **analyzed the** 

**following ten**  **equipment classes**  **for commercial**  **packaged boilers**  **in the**  **engineering**

**analysis:**

**1. Small**  **gas­fired hot**  **water boilers;** 

**2. Small**  **gas­fired steam,**  **all except**  **natural draft;** 

**3. Small**  **gas­fired steam,**  **natural draft**  **boilers;**

**4. Small**  **oil­fired hot**  **water boilers;** 

**5. Small**  **oil­fired steam**  **boilers;**

**6. Large**  **gas­fired hot**  **water boilers;** 

**7. Large**  **gas­fired steam**  **all except**  **natural draft**  **boilers;**

**8. Large**  **gas­fired steam**  **natural draft**  **boilers;**

**9. Large**  **oil­fired hot**  **water boilers;**  **and**

**10. Large**  **oil­fired steam**  **boilers.**

3. 2.1 Representative Output Capacities

**Because of**  **the large**  **variations in**  **equipment cost**  **that result**  **from differences**  **in**

**heating output**  **capacity, DOE**  **analyzed a**  **range of**  **gross output**  **capacities for**  **each**

**equipment class.**  **Using representative**  **output capacities**  **(which usually**  **correspond to**  **the**

**equipment with**  **the highest**  **number of**  **shipments) allows**  **DOE to**  **analyze specific** 

**equipment in**  **detail that**  **can provide**  **information representative**  **of the**  **entire equipment** 

**class. Using**  **representative output**  **capacities also**  **allows DOE**  **to establish**  **baseline units** 

**that are**  **used throughout**  **the rulemaking**  **analyses. The**  **baseline units**  **are discussed**  **further**

**in section**  **3.3.2 of**  **this analysis.** 

**For small**  **commercial packaged**  **boiler equipment**  **classes, DOE**  **identified three** 

**gross output**  **capacities d**  **at which**  **to collect**  **cost data.**  **The output**  **capacities for**  **small**

**commercial packaged**  **boilers for**  **which DOE**  **collected data**  **are 400,**  **800 and**  **1,500**

**c Small**  **commercial packaged**  **boilers refer**  **to equipment**  **with a**  **fuel input**  **of at**  **least 300,**  **but not**  **more than** 

**2,500 thousand**  **British thermal**  **units per**  **hour (kBTU/h).**  **Large commercial**  **packaged boilers,**  **as defined**  **in**

**the market**  **assessment, refer**  **to equipment**  **with a**  **fuel input**  **greater than**  **2,500 kBTU/h.** 

**d The**  **January 2008**  **I=B=R Directory**  **defines “gross**  **output” as**  **the total**  **quantity of**  **BTU’s which**  **the boiler** 

**will deliver**  **in the**  **form of**  **heated water**  **output or**  **steam output**  **per hour,**  **and at**  **the same**  **time meet**  **all the** 

**test requirements**  **set forth**  **in the**  **standard.**

**3­2 kBTU/h,**  **which fall**  **within the**  **≥ 300**  **and ≤**  **2,500 kBTU/h**  **output capacity**  **range that** 

**DOE defined**  **as “small”**  **commercial packaged**  **boilers. DOE**  **identified these**  **three**

**capacities based**  **on information**  **published in**  **the** 2000 Screening Analysis for EPACTCovered Commercial Heating, Ventilating, and Air­Conditioning (HVAC) and WaterHeating Equipment **report (the**  **2000 Screening**  **Analysis). 2**  **Although commercial** 

**packaged boiler**  **costs vary**  **greatly based**  **on the**  **output capacity**  **of the**  **boiler, DOE** 

**research suggests**  **that once**  **the contractor**  **costs are**  **normalized on**  **a gross**  **output capacity** 

**basis, the**  **cost per**  **kBTU/h of**  **capacity is**  **similar regardless**  **of the**  **total gross**  **output**

**capacity.**

**DOE subsequently**  **simplified its**  **analysis and**  **developed a**  **cost­efficiency**

**relationship for**  **only one**  **output capacity**  **(800 kBTU/h)**  **that it**  **deemed representative**  **of**

**all units**  **in the**  **small commercial**  **packaged boiler**  **category. DOE**  **chose 800**  **kBTU/h**

**because it**  **is the**  **median of**  **the three**  **small commercial**  **boiler representative**  **output**

**capacities. DOE**  **normalized all**  **of the**  **data collected**  **at each**  **representative output** 

**capacity on**  **a cost**  **per kBTU/h**  **of capacity**  **basis and**  **then further**  **aggregated the**  **data for** 

**small commercial**  **packaged boilers**  **to create**  **a single**  **cost efficiency**  **curve for**  **each small** 

**commercial packaged**  **boiler equipment**  **class at**  **a representative**  **output capacity**  **of 800** 

**kBTU/h. See**  **section 3.3.5**  **for additional**  **information about**  **the process**  **DOE used**  **to**

**normalize and**  **aggregate the**  **data.**

**For “large”**  **commercial packaged**  **boilers, DOE**  **collected data**  **for a**  **single output** 

**capacity, 3000**  **kBTU/h, for**  **the entire**  **range of**  **products with**  **a gross**  **output above**  **2,500**

**kBTU/h. DOE**  **chose to**  **use 3000**  **kBTU/h as**  **a representative**  **capacity because** 

**conversations with**  **industry experts**  **have led**  **DOE to**  **conclude that**  **for applications** 

**requiring heating**  **capabilities above**  **this capacity,**  **contractors will**  **generally choose**  **to**

**install multiple**  **lower capacity**  **boilers (instead**  **of a**  **single boiler**  **with a**  **higher output** 

**capacity) to**  **allow for**  **modulation of**  **the output**  **capacity and**  **increase the**  **seasonal**

**efficiency of**  **the boiler**  **system. DOE**  **collected contractor**  **cost data**  **for commercial**  **boiler**

**models at**  **the 3,000**  **kBTU/h output**  **capacity, and**  **then developed**  **a cost­efficiency** 

**relationship for**  **each large**  **commercial packaged**  **boiler equipment**  **class.**

**Table 3.1**  **shows the**  **equipment classes**  **and the**  **output capacities**  **for which**  **DOE**

**collected data**  **for the**  **engineering analysis.** 

**3­3**Table 3.1 Equipment Classes Analyzed in the Engineering Analysis and the

Efficiency Levels in ASHRAE Standard 90.1­2007

ASHRAE

Standard 90.1­

2007 Equipment

Class Gross Output

Capacities for

Which DOE

Collected Data

kBTU/h Existing

Federal

Energy

Conservation

Standard Level ASHRAE

Standard 90.1­

2007 Efficiency

Level

(Effective 2010) ASHRAE

Standard 90.1­

2007 Efficiency

Level

(Effective 2020)

**Small Gas**  **Hot**

**Water 400,**  **800, 1,500**  **80% E**  **C 80%**  **E T**  **80% E**  **T**

**Small Gas**  **Steam**

**All Except**  **Natural**

**Draft 400,**  **800, 1,500**  **80% E**  **C 79%**  **E T**  **79% E**  **T**

**Small Gas**  **Steam**

**Natural Draft**  **400, 800,**  **1,500 80%**  **E C**  **77% E**  **T 79%**  **E T** 

**Small Oil**  **Hot Water**  **400, 800,**  **1,500 83%**  **E C**  **82% E**  **T 82%**  **E T** 

**Small Oil**  **Steam 400,**  **800, 1,500**  **83% E**  **C 81%**  **E T**  **81% E**  **T Large**  **Gas Hot** 

**Water 3,**  **000 80%**  **E C**  **82% E**  **C 82%**  **E C** 

**Large Gas**  **Steam**

**All Except**  **Natural**

**Draft 3,**  **000 80%**  **E C**  **79% E**  **T 79%**  **E T** 

**Large Gas**  **Steam**

**Natural Draft**  **3, 000**  **80% E**  **C 77%**  **E T**  **79% E**  **T**

**Large Oil**  **Hot Water**  **3, 000**  **83% E**  **C 84%**  **E C**  **84% E**  **C Large**  **Oil Steam**  **3, 000**  **83% E**  **C 81%**  **E T**  **81% E**  **T**

3.3 METHODOLOGY OVERVIEW

**This section**  **describes the**  **analytical methodology**  **DOE used**  **in the**  **engineering**

**analysis. The**  **results of**  **the engineering**  **analysis are**  **a set**  **of cost­efficiency**  **points.**

3. 3.1 Approach

**DOE used**  **an efficiency­level**  **approach to**  **evaluate the**  **contractor cost**  **of**

**commercial packaged**  **boilers at**  **the baseline**  **efficiency level,**  **as well**  **as efficiency**  **levels**

**above the**  **baseline. DOE**  **chose the**  **efficiency level**  **approach because**  **of the**  **wide variety** 

**of boiler**  **designs available**  **of the**  **market. The**  **efficiency level**  **approach allowed**  **DOE to** 

**examine the**  **relative costs**  **of achieving**  **increases in**  **energy efficiency**  **levels without** 

**regard to**  **the particular**  **designs manufacturers**  **would implement**  **to achieve**  **such**

**efficiency increases.**  **The efficiency**  **levels that**  **DOE considered**  **in the**  **engineering**

**analysis for**  **each equipment**  **class were**  **representative of**  **commercial packaged**  **boiler**

**equipment available**  **on the**  **market when**  **the engineering**  **analysis was**  **developed. DOE** 

**relied primarily**  **on pricing**  **data collected**  **through discussions**  **with mechanical** 

**3­4 contractors**  **or equipment**  **distributors of**  **commercial boiler**  **equipment to**  **develop its**  **cost**

**efficiency relationship**  **for commercial**  **packaged boilers.** 

3. 3.2 Selection of Baseline Efficiency Levels

**DOE selected**  **baseline efficiency**  **levels as**  **reference points**  **for each**  **equipment**

**class, against**  **which it**  **measured changes**  **resulting from**  **potential amended**  **energy**

**conservation standards.**  **DOE defined**  **the baseline**  **efficiency levels**  **in the**  **engineering**

**analysis and**  **the LCC**  **and PBP**  **analyses (see**  **chapter 4**  **of this**  **TSD) as**  **reference points**  **to**

**compare the**  **technology, energy**  **savings, and**  **cost of**  **equipment with**  **higher energy** 

**efficiency levels.**  **Typically, units**  **at the**  **baseline efficiency**  **level just**  **meet Federal**  **energy**

**conservation standards**  **and provide**  **basic consumer**  **utility. However,**  **EPCA does**  **not**

**allow DOE**  **to consider**  **efficiency levels**  **lower than**  **those specified**  **in ASHRAE**  **Standard**

**90.1­2007 for**  **commercial packaged**  **boilers. Therefore,**  **the baseline**  **efficiency levels** 

**DOE identified**  **for this**  **analysis were**  **the efficiency**  **levels specified**  **for each**  **commercial**

**packaged boiler**  **equipment class**  **in ASHRAE**  **Standard 90.1­2007.**  **Table 3.2**  **lists the** 

**ASHRAE Standard**  **90.1­2007 efficiency**  **levels for**  **each commercial**  **packaged boiler** 

**equipment class.** 

Table 3.2 Baseline Efficiency Levels for Commercial Packaged Boilers

Equipment Class ASHRAE Standard 90.1­2007

Efficiency Level*

**Small Gas­Fired**  **Hot Water**  **80% E**  **T**

**Small Gas­Fired**  **Steam All**  **Except Natural**  **Draft 79%**  **E T** 

**Small Gas­Fired**  **Steam Natural**  **Draft 77%**  **E T** 

**Small Oil­Fired**  **Hot Water**  **82% E**  **T**

**Small Oil­Fired**  **Steam 81%**  **E T**  **Large Gas­Fired**  **Hot Water**  **82% E**  **C Large**  **Gas­Fired Steam,**  **All Except**  **Natural Draft**  **79% E**  **T Large**  **Gas­Fired Steam**  **Natural Draft**  **77% E**  **T Large**  **Oil­Fired Hot**  **Water 84%**  **E C**  **Large Oil­Fired**  **Steam 81%**  **E T** 

***** **E C**  **means combustion**  **efficiency and**  **E T**  **means thermal**  **efficiency.**

3.3.3 Identification of Efficiency Levels for Analysis

**In the**  **engineering analysis,**  **DOE identified**  **efficiency levels**  **for each**  **equipment**

**class based**  **on an**  **extensive review**  **of current**  **manufacturer product**  **literature and**  **the**

**January 2008**  **I=B=R Directory.**  **DOE used**  **this information**  **to identify**  **the efficiency** 

**levels most**  **commonly offered**  **on the**  **market by**  **a number**  **of different**  **manufacturers.**

**DOE proposes**  **several efficiency**  **levels, which**  **attempt to**  **encompass the**  **entire efficiency** 

**range of**  **commercial packaged**  **boilers that**  **are currently**  **commercially available.**  **DOE**

**notes that**  **while all**  **of the**  **efficiency levels**  **identified are**  **not offered**  **in the**  **full range**  **of**

**capacities, each**  **efficiency level**  **is offered**  **at multiple**  **capacities within**  **the entire**  **capacity**

**range.**

**3­5 As**  **noted above,**  **DOE used**  **an efficiency**  **level approach,**  **which allows**  **DOE to** 

**estimate the**  **costs and**  **benefits associated**  **with a**  **particular efficiency**  **level rather**  **than a** 

**particular design.**  **DOE selected**  **three to**  **four efficiency**  **levels to**  **analyze for**  **each**

**equipment class**  **and gathered**  **cost data**  **at the**  **representative capacity**  **for each**  **efficiency**

**level. Table**  **3.3 through**  **Table 3.12**  **show the**  **efficiency levels**  **analyzed for**  **each**

**equipment class.** 

Table 3.3 Small Gas­Fired Hot Water Commercial Packaged Boiler Efficiency

Levels

Efficiency Level Thermal Efficiency (E T ) Levels (%)

**Baseline Efficiency**  **80**

**Efficiency Level**  **1 82** 

**Efficiency Level**  **2 84** 

**Efficiency Level**  **3 86** 

**Efficiency Level**  **4 (Condensing)**  **92**

Table 3.4 Small Gas­Fired Steam, All Except Natural Draft Commercial Packaged

Boiler Efficiency Levels

Efficiency Level Thermal Efficiency (E T ) Levels (%)

**Baseline Efficiency**  **79**

**Efficiency Level**  **1 80** 

**Efficiency Level**  **2 81** 

**Efficiency Level**  **3 82** 

**Efficiency Level**  **4 83** 

Table 3.5 Small Gas­Fired Steam Natural Draft Commercial Packaged Boiler

Efficiency Levels

Efficiency Level Thermal Efficiency (E T ) Levels (%)

**Baseline Efficiency**  **77**

**Efficiency Level**  **1 78** 

**Efficiency Level**  **2 79** 

**Efficiency Level**  **3 80** 

Table 3.6 Small Oil­Fired Hot Water Commercial Packaged Boiler Efficiency Levels

Efficiency Level Thermal Efficiency (E T ) Levels (%)

**Baseline Efficiency**  **82**

**Efficiency Level**  **1 84** 

**Efficiency Level**  **2 86** 

**Efficiency Level**  **3 88** 

**3­6**Table 3.7 Small Oil­Fired Steam Commercial Packaged Boiler Efficiency Levels

Efficiency Level Thermal Efficiency (E T ) Levels (%)

**Baseline Efficiency**  **81**

**Efficiency Level**  **1 82** 

**Efficiency Level**  **2 83** 

**Efficiency Level**  **3 85** 

Table 3.8 Large Gas­Fired Hot Water Commercial Packaged Boiler Efficiency

Levels

Efficiency Level Combustion Efficiency (E C ) Levels (%)

**Baseline Efficiency**  **82**

**Efficiency Level**  **1 83** 

**Efficiency Level**  **2 84** 

**Efficiency Level**  **3 85** 

**Efficiency Level**  **4 (Condensing)**  **95**

Table 3.9 Large Gas­Fired Steam, All Except Natural Draft Commercial Packaged

Boiler Efficiency Levels

Efficiency Level Thermal Efficiency (E T ) Levels (%)

**Baseline Efficiency**  **79**

**Efficiency Level**  **1 80** 

**Efficiency Level**  **2 81** 

**Efficiency Level**  **3 82** 

**Efficiency Level**  **4 83** 

Table 3.10 Large Gas­Fired Steam Natural Draft Commercial Packaged Boiler

Efficiency Levels

Efficiency Level Thermal Efficiency (E T ) Levels (%)

**Baseline Efficiency**  **77**

**Efficiency Level**  **1 78** 

**Efficiency Level**  **2 79** 

**Efficiency Level**  **3 80** 

**Efficiency Level**  **4 81** 

**3­7**Table 3.11 Large Oil­Fired Hot Water Commercial Packaged Boiler Efficiency

Levels

Efficiency Level Combustion Efficiency (E C ) Levels (%)

**Baseline Efficiency**  **84**

**Efficiency Level**  **1 86** 

**Efficiency Level**  **2 87** 

**Efficiency Level**  **3 88** 

Table 3.12 Large Oil­Fired Steam Commercial Packaged Boiler Efficiency Levels

Efficiency Level Thermal Efficiency (E T ) Levels (%)

**Baseline Efficiency**  **81**

**Efficiency Level**  **1 82** 

**Efficiency Level**  **2 83** 

**Efficiency Level**  **3 84** 

**Efficiency Level**  **4 86** 

3. 3.4 Data Collection

**DOE identified**  **commercial packaged**  **boiler models**  **for each**  **equipment class**  **at**

**each of**  **the representative**  **output capacities**  **and across**  **a range**  **of efficiencies.**  **The models** 

**DOE identified**  **utilize a**  **range of**  **designs and**  **materials (e.g.**  **cast iron,**  **copper, aluminum,** 

**etc.) in**  **their respective**  **heat exchangers.**  **Through discussions**  **with mechanical** 

**contractors, DOE**  **was able**  **to obtain**  **the contractor**  **cost for**  **commercial packaged**  **boiler**

**models at**  **various efficiency**  **levels, including**  **the baseline,**  **for a**  **range of**  **commercial**

**boiler types**  **and configurations.** 

3. 3.5 Aggregating Contractor Cost Data

**To develo**  **p the**  **relationship of**  **incremental contractor**  **cost versus**  **efficiency, DOE** 

**aggregated the**  **absolute cost**  **data collected**  **for each**  **equipment class.**  **DOE aggregated**  **the**

**data in**  **order to**  **eliminate possibility**  **of revealing**  **sensitive information**  **about individual** 

**manufacturers’ equipment.**  **DOE also**  **aggregated the**  **data in**  **order to**  **normalize the**  **data**

**across manufacturers**  **that utilize**  **different design**  **options, heat**  **exchanger configurations,** 

**and manufacturing**  **techniques.**

**Before aggregating**  **the data**  **for the**  **small equipment**  **classes (**  i.e. **equipment**

**classes with**  **a fuel**  **input capacity**  **between 300**  **and 2,500**  **kBTU/h), DOE**  **normalized the** 

**contractor costs**  **by output**  **capacity. This**  **allowed DOE**  **to further**  **supplement the**  **cost**

**efficiency relationship**  **for equipment**  **at the**  **800 kBTU/h**  **representative capacity.**  **DOE**

**then aggregated**  **the data**  **for each**  **equipment class**  **using a**  **simple average**  **across all** 

**manufacturers for**  **which DOE**  **obtained cost**  **data. DOE**  **fit a**  **curve to**  **the data**  **and an** 

**exponential curve**  **had the**  **best overall**  **fit for**  **the data.** 

**The analysis**  **is based**  **on baseline**  **ASHRAE Standard**  **90.1–2007 units**  **having zero** 

**cost, while**  **the marginal**  **costs of**  **building units**  **with higher**  **efficiency levels**  **are published** 

**3­8 below.**  **The normalized**  **exponential cost**  **curves from**  **the aggregated**  **data establish**  **a**

**general cost­efficiency**  **relationship for**  **each equipment**  **class and**  **represent the**  **average**

**incremental cost**  **of increasing**  **efficiency above**  **the ASHRAE**  **Standard 90.1–2007**  **levels.**

3. 3.6 Oil­Fired Commercial Packaged Boilers

**DOE did**  **not explicitly**  **analyze oil­fired**  **boilers. As**  **previously done**  **in the**  **2000**

**Screening Analysis,**  **DOE estimated**  **that non­condensing**  **oil­fired commercial**  **packaged**

**boilers are,**  **on average,**  **3 percent**  **more efficient**  **than gas­fired**  **boilers of**  **identical**

**construction. Because**  **the construction**  **of oil­ and**  **gas­fired boilers**  **is basically**  **the same,** 

**with the**  **exception of**  **some differences**  **in controls**  **and the**  **burner, DOE**  **estimated the** 

**incremental cost**  **of increasing**  **the efficiency**  **of both**  **types of**  **boilers would**  **be the**  **same**

**for non­condensing**  **models. Since**  **neither the**  **controls nor**  **the oil**  **burner are**  **likely to** 

**change across**  **efficiency levels,**  **DOE estimates**  **that the**  **marginal cost**  **of oil**  **boilers as**  **a**

**function of**  **efficiency will**  **be similar**  **to that**  **of gas­fired**  **boilers. Thus,**  **once the**  **cost**

**efficiency curves**  **were normalized,**  **the cost**  **of the**  **oil­fired controls**  **and burners**  **were**

**subtracted.**

**DOE estimated**  **the incremental**  **cost­efficiency curves**  **for oil­fired**  **equipment by** 

**shifting the**  **cost­efficiency curves**  **for each**  **gas­fired equipment**  **class by**  **3 percent**  **(** e.g.

**, DOE**  **shifted the**  **small gas­fired**  **hot water**  **curve 3**  **percent higher**  **in efficiency**  **to obtain** 

**the small**  **oil­fired hot**  **water curve).**  **Although DOE**  **did not**  **explicitly analyze**  **oil­fired**

**boilers, DOE**  **did collect**  **a limited**  **amount of**  **contractor cost**  **information for**  **oil­fired**

**boilers. The**  **costs DOE**  **collected for**  **oil­fired boilers**  **were generally**  **consistent with**  **the**

**costs for**  **oil­fired boilers**  **determined using**  **the method**  **described above.** 

**For oil­fired**  **steam equipment,**  **where gas­fired**  **equipment is**  **divided into**  **natural**

**draft and**  **all except**  **natural draft**  **curves, DOE**  **used the**  **all except**  **natural draft**  **curves to** 

**develop the**  **cost­efficiency curves**  **for oil­fired**  **steam boilers.**  **DOE found**  **that most**  **of the** 

**oil­fired steam**  **boiler models**  **in DOE’s**  **database use**  **a draft**  **system other**  **than natural** 

**draft.**

3. 4 ENGINEERING ANALYSIS SUMMARY OF RESULTS

**The result**  **of the**  **engineering analysis**  **is a**  **set of**  **cost­efficiency data**  **points.**

**Creating the**  **cost­efficiency points**  **involved three**  **steps: (1)**  **plotting the**  **contractor cost** 

**versus efficiency,**  **(2) aggregating**  **the cost**  **data by**  **capacity and**  **manufacturer, and**  **(3)**

**using a**  **regression analysis**  **to fit**  **a curve**  **that best**  **defines the**  **aggregated data.**  **Table 3.13** 

**through Table**  **3.22 show**  **the cost­efficiency**  **results in**  **the form**  **of efficiency**  **(thermal or** 

**combustion, whichever**  **is applicable**  **to the**  **given equipment**  **class) versus**  **incremental**

**contractor cost.**  **In the**  **rulemaking process,**  **the results**  **from the**  **engineering analysis**  **are**

**used in**  **the life­cycle**  **cost (LCC)**  **analysis to**  **determine customer**  **prices for**  **commercial**

**packaged boiler**  **equipment.**

**3­9**Table 3.13 Incremental Contractor Cost for Small Gas Hot Water Commercial

Packaged Boilers with an 800 kBTU/h Output Capacity

Efficiency Level Incremental Contractor Cost ($)

**ASHRAE Standard**  **90.1­2007 Level**  **(80% E**  **T )**  **0**

**Efficiency Level**  **1 (82%**  **E T**  **) 1,**  **044**

**Efficiency Level**  **2 (84%**  **E T**  **) 3,**  **305**

**Efficiency Level**  **3 (86%**  **E T**  **) 6,**  **985**

**Efficiency Level**  **4 (92%**  **E T**  **) 12,**  **329**

Table 3.14 Incremental Contractor Cost for Small Gas Steam All Except Natural

Draft Commercial Packaged Boilers with an 800 kBTU/h Output Capacity

Efficiency Level Incremental Contractor Cost ($)

**ASHRAE Standard**  **90.1­2007 Level**  **(79% E**  **T )**  **0**

**Efficiency Level**  **1 (80%**  **E T**  **) 873** 

**Efficiency Level**  **2 (81%**  **E T**  **) 2,**  **695**

**Efficiency Level**  **3 (82%**  **E T**  **) 5,**  **548**

**Efficiency Level**  **4 (83%**  **E T**  **) 7,**  **627**

Table 3.15 Incremental Contractor Cost for Small Gas Steam Natural Draft

Commercial Packaged Boilers with an 800 kBTU/h Output Capacity

Efficiency Level Incremental Contractor Cost ($)

**ASHRAE Standard**  **90.1­2007 Level**  **(77% E**  **T )**  **0**

**Efficiency Level**  **1 (78%**  **E T**  **) 529** 

**Efficiency Level**  **2 (79%**  **E T**  **) 1,**  **628**

**Efficiency Level**  **3 (80%**  **E T**  **) 3,**  **339**

Table 3.16 Incremental Contractor Cost for Small Oil Hot Water Commercial

Packaged Boilers with an 800 kBTU/h Output Capacity

Efficiency Level Incremental Contractor Cost ($)

**ASHRAE Standard**  **90.1­2007 Level**  **(82% E**  **T )**  **0**

**Efficiency Level**  **1 (84%**  **E T**  **) 1,**  **189**

**Efficiency Level**  **2 (86%**  **E T**  **) 3,**  **706**

**Efficiency Level**  **3 (88%**  **E T**  **) 7,**  **707**

**3­10**Table 3.17 Incremental Contractor Cost for Small Oil Steam Commercial Packaged

Boilers with an 800 kBTU/h Output Capacity

Efficiency Level Incremental Contractor Cost ($)

**ASHRAE Standard**  **90.1­2007 Level**  **(81% E**  **T )**  **0**

**Efficiency Level**  **1 (82%**  **E T**  **) 803** 

**Efficiency Level**  **2 (83%**  **E T**  **) 2,**  **480**

**Efficiency Level**  **3 (85%**  **E T**  **) 6,**  **137**

Table 3.18 Incremental Contractor Cost for Large Gas Hot Water Commercial

Packaged Boilers with a 3,000 kBTU/h Output Capacity

Efficiency Level Incremental Contractor Cost ($)

**ASHRAE Standard**  **90.1­2007 Level**  **(82% E**  **C )**  **0**

**Efficiency Level**  **1 (83%**  **E C**  **) 1,**  **797**

**Efficiency Level**  **2 (84%**  **E C**  **) 5,**  **614**

**Efficiency Level**  **3 (85%**  **E C**  **) 11,**  **699**

**Efficiency Level**  **4 (95%**  **E C**  **) 36,**  **345**

Table 3.19 Incremental Contractor Cost for Large Gas Steam All Except Natural

Draft Commercial Packaged Boilers with a 3,000 kBTU/h Output Capacity

Efficiency Level Incremental Contractor Cost ($)

**ASHRAE Standard**  **90.1­2007 Level**  **(79% E**  **T )**  **0**

**Efficiency Level**  **1 (80%**  **E T**  **) 1,**  **656**

**Efficiency Level**  **2 (81%**  **E T**  **) 3,**  **402**

**Efficiency Level**  **3 (82%**  **E T**  **) 5,**  **243**

**Efficiency Level**  **4 (83%**  **E T**  **) 7,**  **184**

Table 3.20 Incremental Contractor Cost for Large Gas Steam Natural Draft

Commercial Packaged Boilers with a 3,000 kBTU/h Output Capacity

Efficiency Level Incremental Contractor Cost ($)

**ASHRAE Standard**  **90.1­2007 Level**  **(77% E**  **T )**  **0**

**Efficiency Level**  **1 (78%**  **E T**  **) 1,**  **071**

**Efficiency Level**  **2 (79%**  **E T**  **) 3,**  **240**

**Efficiency Level**  **3 (80%**  **E T**  **) 6,**  **536**

**Efficiency Level**  **4 (81%**  **E T**  **) 10,**  **987**

**3­11**Table 3.21 Incremental Contractor Cost for Large Oil Hot Water Commercial

Packaged Boilers with a 3,000 kBTU/h Output Capacity

Efficiency Level Incremental Contractor Cost ($)

**ASHRAE Standard**  **90.1­2007 Level**  **(84% E**  **C )**  **0**

**Efficiency Level**  **1 (86%**  **E C**  **) 4,**  **459**

**Efficiency Level**  **2 (87%**  **E C**  **) 10,**  **131**

**Efficiency Level**  **3 (88%**  **E C**  **) 16,**  **060**

Table 3.22 Incremental Contractor Cost for Large Oil Steam Commercial Packaged

Boilers with a 3,000 kBTU/h Output Capacity

Efficiency Level Incremental Contractor Cost ($)

**ASHRAE Standard**  **90.1­2007 Level**  **(81% E**  **T )**  **0**

**Efficiency Level**  **1 (82%**  **E T**  **) 1,**  **570**

**Efficiency Level**  **2 (83%**  **E T**  **) 4,**  **796**

**Efficiency Level**  **3 (84%**  **E T**  **) 9,**  **768**

**Efficiency Level**  **4 (86%**  **E T**  **) 18,**  **522**

**In Table**  **3.13 through**  **Table 3.22,**  **DOE only**  **presents the**  **incremental costs**  **of**

**increasing the**  **efficiency of**  **a commercial**  **packaged boiler**  **to avoid**  **the possibility**  **of**

**revealing sensitive**  **information about**  **individual manufacturers’**  **equipment. Different** 

**manufacturers might**  **have substantially**  **different absolute**  **costs for**  **their products**  **at the** 

**same efficiency**  **level due**  **to heat**  **exchanger design,**  **materials, and**  **manufacturer­specific**

**manufacturing practices.** 

**The cost­efficiency**  **results shown**  **above do**  **not represent**  **any single**  **manufacturer,**

**and they**  **do not**  **describe any**  **variance among**  **manufacturers. The**  **results simply** 

**represent, on**  **average, the**  **industry’s cost**  **to increase**  **equipment efficiency.**  **It should**  **be**

**noted that**  **in this**  **analysis, several**  **types of**  **boiler construction**  **are aggregated**  **into single** 

**equipment classes,**  **and the**  **cost­efficiency results**  **represent only**  **an average**  **boiler and** 

**not any**  **individual boiler**  **with any**  **specific design**  **characteristics. For**  **example, small**  **gas**

**hot water**  **boilers are**  **commonly manufactured**  **as copper**  **tube boilers**  **or as**  **cast iron** 

**sectional boilers.**  **The difference**  **in the**  **two materials**  **and the**  **construction of**  **these boilers** 

**results in**  **a wide**  **range of**  **prices and**  **efficiencies for**  **this boiler**  **equipment class.** 

**DOE attempted**  **to estimate**  **the average**  **cost­efficiency relationship**  **across the** 

**range of**  **boiler types**  **included in**  **each equipment**  **class. The**  **results indicate**  **that the**  **cost**

**efficiency relationships**  **for each**  **of the**  **ten equipment**  **classes are**  **nonlinear and**  **the best** 

**cost­efficiency curve**  **fit was**  **an exponential**  **one. Thus,**  **as efficiency**  **increases,**

**manufacturing becomes**  **more difficult**  **and more**  **costly for**  **manufacturers.**

**3­12**REFERENCES

**1 Institute**  **of Boilers**  **and Radiation**  **Manufacturers (I=B=R).**  **2008.** I=B=R Ratings for

Boilers, Baseboard Radiation and Finned Tube (Commercial) Radiation

**. Berkeley** 

**Heights, New**  **Jersey.**

**<www.gamanet.org/gama/inforesources.nsf/vAttachmentLaunch/E9E5FC7199EBB1B**

**E85256FA100838435/$FILE/01­08_CBR.pdf>**

**2 U.S.**  **Department of**  **Energy­Office of**  **Energy Efficiency**  **and Renewable**  **Energy. Energy** 

**Conservation Program**  **for Consumer**  **Products: Screening**  **Analysis for**  **EPACT**

**Covered Commercial**  **HVAC and**  **Water­Heating Equipment**  **Screening Analysis.**  **April**

**2000.**

**3­13**