March15,2013DocketNumber:EERE‐2012‐BT‐STD‐0022ResWaterHtrsRFI‐2012‐STD‐0022@ee.doe.govNOPRtoDevelopaWaiverProcessforLarge‐VolumeElectricStorageWaterHeaters2WelcomeandIntroduction•Introductions•RoleoftheFacilitator•GroundRules–Listenasanally–Focusonissues–Useshort,succinctstatements/keeptothepoint–Holdsidebarconversationsoutsidetheroom–Onepersonspeaksatatime(raisehandtoberecognized;stateyournamefortherecord)–Setcellphonestosilent/vibrate•HousekeepingItems•AgendaReview•OpeningRemarks3PublicMeetingAgendaDescription of IssueOptions and Proposed ActionClosing Remarks456Regulatory History2Rulemaking Overview31Introduction4ListeningViatheWebcast•TheDepartmentisbroadcastingthismeetingliveovertheinternet.•DOEisprovidingthewebcasttoaccommodatestakeholdersthatareunabletoattendthepublicmeetinginperson.•Thewebbroadcastallowsstakeholderstolisteninandviewtheslides.•Allstakeholdersareencouragedtosubmitwrittencommentsafterthepublicmeeting.5PurposeofthePublicMeeting•Presentanddiscusstheproposedwaiverprogramforlarge‐volumeelectricstoragewaterheaters.•Invitecommentonthenoticeofproposedrulemakingforlarge‐volumeelectricstoragewaterheaters.•Discussnextstepsintherulemaking.•Encourageparticipantstosubmitdata,information,summarystatements,andwrittencomments,includingadditionalissuesfordiscussion.6RequestforCommentIssueboxnumberingcorrespondstothelistofitemspublishedattheendoftheNOPRdocument,availableat:http://www1.eere.energy.gov/buildings/appliance_standards/product.aspx/productid/27ThedeadlineforsubmittingcommentsisApril29,2013.Item:WhileDOEinvitescommentonallaspectsofthematerialinthispresentationandtheNOPRdocument,severalspecificissuesonwhichDOEseekscommentaresetoutincommentboxeslikethisone.DOEusesthesecommentboxestohighlightissuesandtoaskspecificquestionsontheapproachesDOEplanstofollowforthisrulemaking.Suchrequestsforfeedbackarenumberedsequentiallythroughoutthedocument.7OpeningRemarksMeetingparticipantsareinvitedtoprovideopeningremarksorstatementsatthistime.Pleasekeepyourremarksasbriefaspossibletogiveothersachancetospeak.8PublicMeetingAgendaDescription of IssueOptions and Proposed ActionClosing Remarks456Regulatory History2Rulemaking Overview31Introduction9StatutoryAuthorityandRegulatoryHistory•EnergyPolicyandConservationAct(EPCA)of1975(PublicLaw94‐163)–Establishedtheenergyconservationprogramforconsumerproductsotherthanautomobiles.–DirectsDOEtoestablishtestproceduresinconjunctionwithenergyconservationstandards.–FurtherprovidesDOEwiththeauthoritytoconductrulemakingstodeterminewhethertoamendstandards.•NationalApplianceEnergyConservationAct(NAECA)of1987(PublicLaw100‐357)–Establishedtheenergyconservationstandardsforwaterheaters.(42U.S.C.6295(e)(1))–DirectedDOEtoconducttwocyclesofrulemakingstoamendstandards.(42U.S.C.6295(e)(4))•OnApril16,2010,DOEpublishedafinalruleamendingstandardsforresidentialwaterheaters.75FR20112.–Standardsforelectricstoragewaterheaterswithratedstoragevolumes>55gallonswereamendedtolevelsthatcurrentlyareachievedthroughtheuseofheatpumpwaterheater(HPWH)technology.StandardswillapplytoproductsmanufacturedonorafterApril16,2015.10PublicMeetingAgendaDescription of IssueOptions and Proposed Corrective ActionClosing Remarks456Regulatory History2Rulemaking Overview31Introduction11StepsintheRulemakingProcess•DOEpublishedarequestforinformation(RFI)regardingtheimpactsofitstandardsonutilityelectricthermalstorageprograms(ETS)onJune13,2012.77FR35299.•DOEpublishedaNOPRonFebruary26,2013.78FR12969.•DOEisholdingtheNOPRpublicmeetingtoday,March15,2013.•DOEwillacceptcommentsontheNOPRfrominterestedparties.−Oralcommentsfromtoday’smeetingwillberecordedandtranscribed.−InterestedpartiescansubmitwrittencommentsuntilApril29,2013.•DOEexpectstopublishafinalrulelaterthisyear.NOPRFinalRuleRFI12PublicMeetingAgendaDescription of IssueOptions and Proposed ActionClosing Remarks456Regulatory History2Rulemaking Overview31Introduction13Background– ETSPrograms•ElectricThermalStorage(ETS)programsallowutilitycompaniestocontrolwaterheateroperationremotely.–Limitoperationofheatingelementstoonly“off‐peak”hours–Waterheaterstoresenergyforuseduringpeakdemandperiods–Usedasatooltomanagepeakload–Benefitutilitiesbyreducingpeakgenerationcapacityneeds–Allowforenhancedrenewablesintegration•Utilitycompaniescurrentlyutilizelarge‐volumeelectricresistancewaterheaters(ERWH)inETSprograms.–Largerstoragetanksprovideadditionalstoragecapacityfor“peak”periodswhenwaterheatercannotturnon.–ERWHareabletostorewaterathigher‐than‐normaltemperaturestoincreasestoredenergyforuseduring“peak”periods.14Background– April2010StandardsTechnologyChangeTechnologyChangeElectric Resistance Water Heater(ERWH)Heat Pump Water Heater(HPWH)• April 2010 standard level for large-volume electric water heaters currentlyonly achieved using heat pump water heater (HPWH) technology.• Efficiency ratings change (example): Raised minimum energy factor for an 80 gallonelectric water heater from 0.86 to 1.97.• The standard currently cannot be met using conventional electricresistance water heater (ERWH) technology.15DescriptionofIssue•Interestedpartiesexpressedconcernsovertheamendedstandardlevelsforlarge‐volume,electricwaterheatersandthepotentialimpactsonETSprograms.–LackofERWHavailabilitymayresultineliminationofETSprogramsforeconomicandtechnicalreasons.–HPWHandmultiplesmallertanksareunlikelytobesuitablereplacementsforlarge‐volumeERWHinETSprograms.–InterestedpartiesrequestedthatDOEconsiderallowingforthemanufactureoflarge‐volumeERHWssolelyforETSapplications.•TheJune2012RFIsummarizedconcernsandsoughtcommentonvariousissuesincluding:–InformationonthepenetrationofETSprogramsutilizingERWHintheU.S.–EffectofutilityETSprograms,includingeconomicbenefitstoconsumers,energysavingbenefits(ifany),andotherbenefitstotheNation.–AnticipatedimpactsofApril2010standardsonETSprogram.–Informationonpotentialsolutionsthatwouldmitigateconcerns,including:Establishingawaiverprocess;Establishinganewproductclassfor“gridinteractive”ERWH;AlternativessuchasmultiplesmallerwaterheatersorlargevolumeHPWH.16CommentsreceivedinresponsetoJune2012RFI•DOEreceived127uniquecomments.111fromutilitycompaniesorassociations;6frommanufacturers;3fromefficiencyadvocates;1fromatradeassociation;4fromU.S.Congressmen.•MajorityofcommenterssupportedDOEactiontoallowforthemanufactureoflarge‐volumeERWHforETSprograms.‒Somecommenterssupportedanewproductclassfor“Grid‐Interactive”ERWH.‒Somecommenterssupportedawaiverprocess.•TwocommentersopposedDOEaction.•OnecommentertooknopositiononwhetherDOEshouldact.•Commentsfromutilitiesindicatedthat:630,00consumerscurrentlyparticipateinETSprograms.ETSprogramsresultincombinedpeakloadreductionof145MW.ETSprogramsresultincombined$60millioninannualconsumersavings.Otherbenefitsinclude:improvedgridreliability;increasedrenewableintegration;reducedneedforfuturegenerationcapacity;increasedconsumerawarenessaboutenergyuse.17PublicMeetingAgendaDescription of IssueOptions and Proposed ActionClosing Remarks456Regulatory History2Rulemaking Overview31Introduction18OptionsConsidered•Alternativestolarge‐volumeERWHforuseinETSprograms‒Large‐volumeHPWHMorestudyisneededtodetermineimpactsofETSusagepatternsonHPWHfunctionality.Technologicalchallengesmeetingwatertemperaturesrequired.Multiplesmall‐volumeERWHMayhaveissuesinspace‐constrainedinstallationsduetolargerfootprintthansinglelargevolumewaterheater.Mayrequiremorecomplexcontrolssystems.•Waiverprocess19ProposedAction:Waiver•Afterconsideringallalternatives,DOEhastentativelydeterminedthatestablishingawaiverprocessisthebestoptiontoaddressconcernsofutilitycompanieswhileachievingDOEgoals.Waiverprovidesmaximumflexibilitysinceitcanbereviewedoftenasnewtechnologiesdevelopornewinformationbecomesavailable.Waivercouldbetargetedattheaffectedportionofthemarket.•CommentsonRFIraisedseveralconcernsaboutawaiversystem:Someutilitiescannotselldirecttoconsumers– proposaldoesnothaverequirementsfordistributionchain.Homeownersmaymoveorchangemindaboutenrollmentinutilityprogram–proposaldoesnotrequirethatthehomeownerhaveanagreementtobeenrolledinautilityETSprogram.DOEproposesotherrequirementstoensuretheprogramistargeted.20ProposedWaiverProcessRequest RequirementsWaiver Process OverviewRequest Submitted to DOEDOE Review and ApprovalDOE Grants Waiver(if Requirements Met)Waiver SpecificsNotice published in the FederalRegisterSpecifies exact model, # ofunits covered under waiver,and alternative energy standardRequires units under waiver tobe shipped with control deviceUtility must submit programinformation via EIA formMust be a utility, manufacturer,or joint requestInclude company and contactinformation of all partiesinvolved in requestDescribe control device. Devicemust be capable of receivingcommunicationMust provide details: # ofunits, manufacturer, brand,model #, EF, storage volumeLarge-Volume ERWHShipped with ETS ControlDevice InstalledVerify shipments throughutility reporting on formEIA-861Periodic Reviews ofWaiver Process21ProposedWaiverProcess‐ApplicantApplicantRequirements:Amanufactureroflarge‐volumeelectricstoragewaterheaters;Autilityprogramadministeringademandresponseprogram;orAjointapplicationbythemanufacturerandtheutility.ApplicationRequirements:Thecompanyandcontactinformationofboththemanufacturerandtheutilityprogramsinvolvedmustbeprovidedaspartoftheapplication.DOEspecificallyseekscommentontherequirementsforwhocansubmitthewaiverandthetypesofinformationaboutthepartiesinvolvedthatshouldbesubmittedaspartofthewaiver.22ProposedWaiverProcess– ControllerControllerRequirements:Mustbecapableofreceivingcommunicationsfromthegrid.Mustbeintegratedandshippedwiththeunitfromthepointofmanufacturerofthewaterheater.ThewaterheatermustbeclearlylabeledandmarketedforuseexclusivelyinETSprograms,includingadescriptionofthecontroldeviceintegratedintothewaterheater,beforeitleavestheoriginalequipmentmanufacturer.ApplicationRequirements:Afulldescriptionofthecontroldevicealongwithaccompanyliteraturemustbesubmittedaspartofthewaiverforeachbasicmodelthatwillbeusedinthedemandresponseprogram.Item1:DOEseekscommentonitsproposaltorequirethattheunitsforwhichawaiverisgrantedareshippedfromthemanufacturerwiththeETScontroldevicesinstalledonthewaterheater.Inaddition,DOEspecificallyseekscommentonthecontrolrequirementsthatarepartoftheapplicationprocessandthelabelthatmustbeappliedtothewaterheater.23ProposedWaiverProcess– AdditionalRequirementsBasicModelRequirements:Applicationmustincludeeachmanufacturer,brand,andbasicmodelnumbercombination.Applicationmustincludebasicmodelcharacteristicsincludingtheratedstoragevolumeandenergyfactor.UtilityProgramRequirementsApplicationmustincludealistofallprogramsagivenbasicmodelcouldparticipatein.Applicationmustincludeanannualallotmentvaluecorrespondingtothenumberofshipmentsforagivenbasicmodel.DOEseekscommentontheinformationthatshouldbesubmittedwiththewaiverdescribingthebasicmodelandutilityprogram.24ProposedWaiverProcess– UtilityReportingDOEproposedtorequirethatutilitiessubmitinformationregardingtheirdemandresponseprogramsforlarge‐volumeelectricstoragewaterheaterstoEIAaspartoftheirregularsubmissions.DOEwillmonitortheapplicationswiththeinformationsubmittedontheEIA‐861andEIA‐861Sformstoensuretheprogramistargeted.Item2:DOEseekscommentonitsproposaltoaddaquestiontoformsEIA‐861andEIA‐861Sthatwouldreadasfollows:“Ifyouhaveademandsidemanagement(DSM)programforelectricstoragewaterheaters,howmanyelectricstoragewaterheaterswithstoragevolumesabove55gallonswereutilizedinyourprogramthis/lastyear?25RequestsforCommentItem3:DOEalsoseeksinformationconcerningtheimpactsoftheproposedwaiverprocessonallparties,andinparticularsmallbusinessmanufacturersthatcouldbeimpactedbythisrulemaking.DOEisinterestedinthenatureandextentofthepotentialimpactsoftheproposedwaiverprocess.26PublicMeetingAgendaDescription of IssueOptions and Proposed ActionClosing Remarks456Regulatory History2Rulemaking Overview31Introduction27HowtoSubmitWrittenComments•Inallcorrespondence,pleaserefertotheresidentialwaterheaterrulemakingby:ResidentialWaterHeaterRulemakingDocketNumberEERE‐2012‐BT‐STD‐0022RegulatoryIdentificationNumber(RIN)1904‐AC78•Email: ResWaterHtrsRFI‐2012‐STD‐0022@ee.doe.govPostal:Courier:Ms.BrendaEdwardsU.S.DepartmentofEnergyBuildingTechnologiesProgram,MailstopEE‐2J1000IndependenceAvenue,SWWashington,DC20585‐0121Ms.BrendaEdwardsU.S.DepartmentofEnergyBuildingTechnologiesProgram,Suite600950L’EnfantPlaza,SWWashington,DC20024Tel:202586‐2945Commentperiodcloses:April29,2013