Docket Number: EERE

ResBoilers2012STD

Energy Conservation Standards Framework for Reside
2

Welcome and Introduction• Introductions• Role of the Facilitator

• Ground Rules

– Listen as an ally

– Focus on issues

– Use short, succinct statements/keep to the point

– Hold sidebar conversations outside the room

– One person speaks at a time (raise hand to be recognized; state y

the record)

– Set cell phones to silent/vibrate

• Housekeeping Items

• Agenda Review

• Opening Remarks
3

Agenda10:00 ‐ 10:15 am Welcome, Introductions, and Agenda Review

10:15 ‐ 10:45 am Introduction, Opening Remarks from Interested Partie

Regulatory History, and Rulemaking Overview

10:45 ‐ 11:00 am Determination of Scope and Test Procedures11:00 ‐ 11:15 am Market and Technology Assessment and Screening An

11:15 ‐ 11:30 am Engineering Analysis11:30 ‐ 11:45 pm Markup Analysis and Energy Use Analysis
4

Agenda

11:45 ‐ 12:00 pm Life‐Cycle Cost (LCC) and Payback Period (PBP) Analy

12:00 ‐ 1:00 pm Break for Lunch

1:00 – 1:15 pm Shipments Analysis and National Impact Analysis

1:15 ‐ 1:30 pm Consumer Subgroup Analysis

1:30 ‐ 1:40 pm Manufacturer Impact Analysis

1:40 ‐ 1:55 pm Emissions Analysis; Utility Impact Analysis; Employm

Analysis; Regulatory Impact Analysis

1:55 ‐ 2:00 pm Other Issues and Comments; Closing Remarks
5

Public Meeting Agenda

Test Procedures and ScopePreliminary AnalysesNOPR Analyses

4562 Regulatory History3 Rulemaking Overview

1 Introduction

7 Closing Remarks
6

Listening Via the Webcast• The U.S. Department of Energy (DOE) is broadcasting this meet

over the internet.

• DOE is providing the webcast to accommodate stakeholders th

unable to attend the public meeting in person.

• The web broadcast allows stakeholders to listen in, view the sli

submit questions and comments.

• All stakeholders are encouraged to submit written comments a

public meeting.
7

Purpose of the Public Meeting• Present the procedural and analytical approaches to evaluate e

conservation standards for residential boilers.

• Invite comment on the energy conservations standards framew

document.

• Discuss next steps in the rulemaking.

• Encourage participants to submit data, information, summary s

and written comments, including additional issues for discussio
8

Request for Comment

Issue box numbering corresponds to the list of items published at 

the framework document, available at:

http://www1.eere.energy.gov/buildings/appliance_standards/res

naces_boilers.htmlThe deadline for submitting comments is March 28, 2013.

Item 1‐1: While DOE invites comment on all aspects of the mate

presented in this document, several specific issues on which DO

comment are set out in comment boxes like this one. DOE uses 

comment boxes to highlight issues and to ask specific questions 

approaches DOE plans to follow to conduct the analyses require

energy conservation standards rulemaking. Such requests for fe

are numbered sequentially throughout the document.
9

Opening Remarks

Meeting participants are invited to provide opening rem

or statements at this time.
10

Public Meeting Agenda

Test Procedures and Scope Preliminary AnalysesNOPR Analyses

4562 Regulatory History3 Rulemaking Overview

1 Introduction

7 Closing Remarks
11

Regulatory History

• Energy Policy and Conservation Act (EPCA) of 1975 (Public

Law 94‐163)

– Established the energy conservation program for consumer

products other than automobiles, including residential boilers.

• National Appliance Energy Conservation Act of 1987 (Public

Law 100‐12) amended EPCA to:

– Prescribe initial energy conservation standards for residential

boilers. (42 U.S.C. 6295(f)(1)‐(2))

– Provide DOE with the authority to conduct rulemakings to

determine whether to amend standards. (42 U.S.C. 6295(f)(4))

• Energy Independence and Security Act of 2007 (EISA 2007)

(Public Law 110‐140) amended EPCA to:

– Direct DOE to incorporate standby mode and off mode for all

final rules prescribing energy conservation standards that are

published after July 1, 2010. (42 U.S.C. 6295(gg)(3)(A))

– Direct DOE to develop a test procedure to measure standby

mode and off mode energy consumption of residential furnaces

and boilers no later than September 30, 2009. (42 U.S.C.

6295(gg)(2)(B)(iii))

– Amend energy conservation standards for residential boilers.

(42 U.S.C. 6295(f)(3))
12

Regulatory HistoryThe previsions in EISA 2007 related to residential boilers were cod

final rule published in the Federal Register on July 28, 2008. 73 FR 

Product Class Minimum AFUE Design Requi

Gas Hot Water 82%

No Constant Bu

Automatic M

Adjusting W

Temperat

Gas Steam 80% No Constant‐Bu

Oil Hot Water 84% Automatic M

Adjusting Tem

Oil Steam 82% NoneElectric Hot Water None Automatic M

Adjusting Tem

Electric Steam None None
13

Public Meeting Agenda

Test Procedures and Scope Preliminary AnalysesNOPR Analyses

4562 Regulatory History3 Rulemaking Overview

1 Introduction

7 Closing Remarks
14

Residential Boiler Rulemaking Schedule

2012 2013 2014 2015 2017 2016 2018 2019 

Milestone 

Framework Document 

Availability of the Preliminary Analysis (projected) 

Notice of Proposed Rulemaking (NOPR) (projected) 

Final Rule (projected) Compliance Date (projected) 
15

EPCA Factors

42 U.S.C. 6295(o)(2)(B)(i) directs DOE to consider seven factors w

energy conservation standards.

EPCA Factors DOE Analysis

1. Economic impact on consumers and

manufacturers

Life‐Cycle Cost Ana

Manufacturer Impact A

2. Lifetime operating cost savings compared to

increased cost for the product Life‐Cycle Cost Ana

3. Total projected energy savings National Impact Ana

4. Impact on utility or performance Engineering Analy

Screening Analys

5. Impact of any lessening of competition Manufacturer Impact A

6. Need for national energy conservation National Impact Ana

7. Other factors the Secretary considers relevant

Environmental Asses

Utility Impact Anal

Employment Impact A
16

Public Meeting Agenda

Test Procedures and Scope Preliminary AnalysesNOPR Analyses

4562 Regulatory History3 Rulemaking Overview

1 Introduction

7 Closing Remarks
17

Test Procedure• The Federal test procedure is located at 10 CFR 430, Subpart B, Appen

“Uniform Test Method for Measuring the Energy Consumption of Furn

Boilers.”

• The Federal test procedure references the American Society of Heatin

Refrigerating, and Air‐Conditioning Engineers (ASHRAE) Standard 103‐

“Method of Testing for Annual Fuel Utilization Efficiency of Residentia

Furnaces and Boilers.”

− ASHRAE Standard 103‐1993 accounts for active mode, standby m

mode fossil fuel energy consumption for residential gas‐fired and 

boilers.

− ASHRAE Standard 103‐1993 does not account for standby mode 

electrical energy consumption.

• The Federal test procedure also references the International Electro‐t

Commission (IEC) Standard 62301(Second Edition), “Household electr

appliances‐Measurement of standby power.”

− IEC Standard 62301 (Second Edition) accounts for standby mode 

electricity consumption for residential boilers.
18

Test Procedure• On January 4, 2013, DOE published a request for information (RFI) see

on the DOE test procedure for residential furnaces and boilers. 78 FR 

− The RFI is the first step in a rulemaking to amend the DOE test procedure 

furnaces and boilers.

− DOE plans to complete the amended test procedure no later than Decem

− DOE will consider any changes in the measured energy consumption of th

a result of the test procedure amendments.

• On February 4, 2013, DOE published a NOPR to amend the test proce

needed equations to calculate the annual fuel utilization efficiency (A

stage and modulating units that are tested using section 9.10 of ASHR

78 FR 7681.

− DOE proposed the inclusion of two new equations to calculate the part‐lo

at the maximum and reduced input rates when heat up and cool down te

performed (as allowed by section 9.10).

− Comment period closes April 22, 2013.

− DOE plans to quickly finalize this limited‐scope test procedure rulemaking
19

Definitions• Residential Boilers are defined by EPCA as a type of furnace. (4

6291(23))

– Residential furnaces are a product which utilizes only single‐phas

current, or single‐phase electric current or DC current in conjunct

natural gas, propane, or home heating oil. Such products may no

contained in the same cabinet with a central air conditioner whos

cooling capacity is above 65,000 Btu per hour.

– Residential furnaces include electric boilers and low pressure stea

water boilers designed to be the principal heating source for the 

a residence and have a heat input rate of less than 300,000 Btu p

• Electric boilers are electrically powered furnaces designed to 

pressure steam or hot water for space heating application. (1

• Low pressure steam or hot water boilers are electric, gas, or 

furnaces designed to supply low pressure steam or hot water 

heating application. (10 CFR 430.2)

– Low pressure steam boilers operate at or below 15 pounds psig 

pressure; a hot water boiler operates at or below 160 psig wate

250 °F water temperature.
20

Scope of Coverage• DOE plans to cover all residential boilers as defined i

430.2.

– Product classes defined in EPCA (42 U.S.C. 6295(f)(3)(A)) in

• DOE may consider modifications to the definitions re

residential boilers at 10 CFR 430.2 to specifically add

combination appliances.

Boiler Type

Gas‐fired Hot Water

Gas‐fired Steam

Oil‐fired Hot Water

Oil‐fired Steam

Electric Hot Water

Electric Steam
21

Definitions & Scope of Coverage

Item 2‐1: DOE welcomes comment on the preliminary scope of coverage athere are any additional types of residential boilers that should or should 

in the scope of this rulemaking.Item 2‐2: DOE welcomes comments regarding whether to include combina

appliances in this rulemaking.Item 5‐2: DOE welcomes comments on its proposed product classes. Does 

other performance‐related features warrant the creation of any new prod

classes) for residential boilers?

Item 5‐3: Are there any product classes with annual shipments volumes th

that the Department should not undertake an analysis to determine whet

efficiency standards should be upgraded?
22

Public Meeting Agenda

Test Procedures and ScopePreliminary AnalysesNOPR Analyses

4562 Regulatory History3 Rulemaking Overview

1 Introduction

7 Closing Remarks
23

Steps in the Preliminary Analysis

Framework

Document

PreliminaryAnalysis NOPR Final Rule

ScreeningAnalysis

EngineeringAnalysis

Energy Use Analysis

ShipmentsAnalysis

Life-CycleCost andPayback Period Analysis

Market & Technology Assessment

Markup Analysis
24

Market and Technology Assessment

Purpose

• Characterize the market, the residential boiler industry, and th

to improve boiler efficiency.

Method

• Identify and characterize manufacturers of residential boilers;

• Estimate historical shipments and trends in the market;

• Identify regulatory and non‐regulatory initiatives intended to im

efficiency of the products covered under this rulemaking;

• Characterize products currently available on the market; and

• Identify technologies that could improve efficiency.

Item 5‐1: DOE welcomes data that would contribute to the market asses

including but not limited to information on the national historical shipm

manufacturing costs, distribution channels, and manufacturer market sh

residential boilers.
25

Technology Options• DOE will consider only technologies that improve the AFUE and 

and off modes as measured by DOE’s test procedure for reside

in 10 CFR part 430, Subpart B, App. N.

• DOE has developed a preliminary list of technology options for 

boilers.

Technology Option (AFUE)

Heat Exchanger Improvements

Modulating Operation

Dampers

Direct Vent

Pulse Combustion

Premix Burners

Burner Derating

Lower‐Pressure Air‐Atomized Oil Burner

Delayed‐Action Oil Pump Solenoid Valve

Electronic Ignition

Item 5‐4: DOE welcomes co

on the technologies identifi

well as additional technologoptions which have not bee

identified.

Technology Option (Standby/O

Toroidal Transformer

Control Relay Models with BPM M

Switching Mode Power Supp
26

Screening Analysis

Purpose

• Screen out technology options that DOE will not consider in th

engineering analysis and downstream analyses for residential b

Approach

• DOE evaluates each technology option based on the following 

provided at 10 CFR Part 430, Subpart C, Appendix A, 4(a)(4) an

 Technological feasibility;

 Practicability to manufacture, install, and service;

 Adverse effects on product utility or availability; and

 Adverse effects on health or safety.

Item 6‐1: Of the technologies listed, are there any that should be screene

based on the four screening criteria? If so, which criteria apply and why?
27

Engineering Analysis• A key factor in setting the standard is the increased cost of a m

efficient product.

• The Engineering Analysis determines the relationship between 

efficiency.

Rulemaking Anal

• Life‐Cycle Cost and P

Period

• Manufacturer Impa

• Employment Impact 

Manufacturer Selling Price –

Efficiency Relationship

Manufacturer

Selling Price

Efficiency Level
28

Engineering Analysis

Identify

Efficiency Levels

Perform Teardown

Analysis

Develop

Manufacturer

Production Cost

Define Baseline

Models

 Define characteristics of models in each product c

will serve as reference points to assess changes d

more‐stringent standard levels.

 Identify more‐efficient substitutes from a databas

commercially‐available boilers.

 Develop bill of materials (BOM) for baseline boile

boilers at higher efficiency levels by disassembling 

models.

 Determine manufacturer production cost for base

and boilers at higher efficiency levels based on BO

the teardown analysis and manufacturing cost mo
29

Engineering Analysis

Item 7‐1: DOE seeks input regarding the range of efficiency levels and an

efficiency levels that should be examined as part of its analysis.

Item 7‐2: DOE seeks comment on the appropriate maximum technologic

feasible (“max‐tech”) efficiency levels for residential boilers.

Item 7‐3: DOE seeks input on the representative capacity and other

representative characteristics for each residential boiler product class.

Item 7‐4: DOE seeks input on characteristics which may require multiple

representative products within a single product class.
30

Markups for Equipment Price Determination

Purpose

• To characterize the channels for how products are distributed f

manufacturer to the consumer.

• To determine prices paid by consumers based on manufacture

prices for baseline and higher efficiency products.

Approach

• Identify Distribution Channels.

• Estimate the markups for each step from manufacturer to end‐

Item 8‐1: DOE welcomes suggestions and comments concerning its prop

approach to developing estimates of future residential boiler retail price

Boiler Distribution Channels

Manufacturer Wholesaler Mechanical Contractor 1 End User

2 Manufacturer Wholesaler Mechanical Contractor General Contractor 
31

Energy Use Analysis

Purpose

• Develop annual energy use for residential boilers.

Approach

• Obtain data to develop a distribution of operating hours for res

boilers by sector and Census Division. Data sources include:

 The Energy Information Agency’s (EIA) Residential Energy Consum

Survey (RECS)

 Historical data

Item 9‐1: DOE seeks stakeholder input on the planned approach of using 

determining the energy consumption of residential boilers in residential b

Item 9‐2: DOE seeks stakeholder input on what fraction of large boilers se

multiple housing units are non‐residential (commercial) boilers, and what 

use to remove such units from the sample.

Item 9‐3: DOE seeks historical shipment‐weighted boiler efficiency data b

and 2011.
32

Energy Use AnalysisItem 9‐4: DOE seeks stakeholder input on data sources that it can use to c

the variability in annual energy consumption for boilers. DOE is particular

in field monitoring studies and data.

Item 9‐5: DOE seeks stakeholder input on what fractions of oil‐fired and g

water boilers are used both for space heating and domestic hot water pu

Item 9‐6: DOE seeks input on the fraction of residential boilers that is use

combination with hydronic air handlers.

Item 9‐7: DOE seeks input on the fraction of residential boilers that is use

commercial applications. Is this market large enough that DOE should tak

account?Item 9‐8: DOE seeks comments on the rebound effect that may be associ

more‐efficient residential boilers.
33

Life‐Cycle Cost and Payback Period Analysis

Purpose

• Assess the LCC effects and PBP for customers of residential boi

the considered efficiency levels.

Methodology

• LCC equals customer price plus the sum of annual operating co

analysis period (baseline lifetime divided by average operating 

discounted to a particular base year.

• Analysis will model the uncertainty and variability of inputs usi

Carlo approach and probability distributions.

• Analysis will be implemented in MS Excel® spreadsheet combin

Crystal Ball.®

Item 10‐1: DOE seeks stakeholder input on its proposed approach to usin

probability distributions and Monte Carlo simulation to conduct the LCC a

analysis.
34

Life‐Cycle Cost and Payback Period Analysis

Item 10‐2: DOE requests data from stakeholders to characterize the curre

boiler efficiencies in the market.

Item 10‐3: DOE seeks input on the planned approach for estimating future 

prices.Item 10‐4: DOE seeks stakeholder input on the maintenance and repair co

approach. Specifically, DOE requests comment on frequency and cost of m

major repair issues, repair frequency and cost for boilers that meet the m

efficiency standards, as well as high‐efficiency boilers.

Item 10‐5: DOE seeks stakeholder input on its proposed installation cost a

Specifically, DOE requests data on the fractions of installations that would 

significant additional installation expenses.Item 10‐6: DOE seeks comment on the methodology used to determine p

lifetimes for residential boilers.

Item 10‐7: DOE seeks stakeholder input on its planned approach for estim

discount rates for residential consumers.

Item 10‐8: DOE seeks comments on the appropriate distribution of energ

efficiencies for residential boilers in the absence of amended energy consstandards.
35

Shipments Analysis

Purpose

• To project residential boiler shipments in the base case and sta

cases to calculate the effects of amended energy conservation on energy savings and present value of savings.

Method

• The shipments model will apply accounting methodology to de

shipments in replacement and new construction cases.

• The shipments model will rely on multiple data sources:

 Manufacturers and industry organizations

 National market reports Historical residential boiler shipments from GAMA/AHRI

Item 11‐1: DOE seeks historical boiler shipments data from stakeholders,

disaggregated by product class and efficiency level.

Item 11‐2: DOE seeks input from stakeholders on the potential impact o

standards on residential boiler shipments.
36

National Impact Analysis

Purpose

• To assess the aggregate effects at the national level of potential e

conservation standards for each product class, in terms of net pres

(NPV) of total consumer economic effects and national energy sav

Method

• DOE calculates annual equipment expenditures by multiplying the 

unit by projected shipments.

• The difference between base‐case and standards‐case scenarios g

national energy savings and increased expenditure in dollars.

• The difference each year between energy savings and increased e

expenditures is the net savings (if positive) or net costs (if negative

Item 12‐1: DOE seeks comments on the appropriate assumptions to use long‐run changes in residential boiler energy efficiency independent of a

energy conservation standards.
37

Public Meeting Agenda

Test Procedures and ScopePreliminary AnalysesNOPR Analyses

4562 Regulatory History3 Rulemaking Overview

1 Introduction

7 Closing Remarks
38

Steps in the NOPR

NOPR

Manufacturer

Impact 

Analysis

Utility

Impact 

Analysis

Employm

Impact

Analysi

Consumer 

Subgroup 

Analysis

Revise Preliminary Analysis

EmissionsAnalysis and Monetization

EngineeringAnalysis

Life-CycleCost &Payback PeriodAnalyses

National

Impact

Analysis

PreliminaryAnalysis

FrameworkDocument

FinalRule
39

Consumer Subgroup Analysis

Purpose

• Analyze the economic impacts of amended energy conservatio

on consumers, including subgroups who may be disproportiona

impacted compared with the general user population.

– A subgroup comprises a subset of the population likely to be affec

disproportionately by new or revised energy conservation standa

Method

• Extend the LCC analysis to examine the impacts for defined sub

• DOE will use inputs specific to each of the considered consume

Item 13‐1: The Department requests input as to what consumer subgrou

appropriate to evaluate for residential boilers.
40

Manufacturer Impact Analysis

Purpose

• To assess the impacts of amended energy conservation standards 

manufacturers.

• To identify and estimate impacts on manufacturer subgroups that 

more severely impacted than the industry as a whole.

• To examine the impact of cumulative regulatory burden on the ind

Method

• Analyze industry cash flow and NPV through use of the Governme

Regulatory Impact Model (GRIM).

• Interview manufacturers to refine inputs to the GRIM, develop sub

analyses, and address qualitative issues.

Item 14‐1: DOE seeks comment on appropriate manufacturer subgroups, DOE should consider in a manufacturer subgroup analysis for residential b

Item 14‐2: DOE welcomes comments on what other existing regulations o

regulations it should consider in its examination of cumulative regulatory 

Item 14‐3: DOE requests industry feedback on the number and names of 

manufacturers in its examination of cumulative regulatory burden.
41

Emissions Analysis and Monetization of Emissi

Purpose

• To report environmental effects of amended energy conservation stan

Method

• In estimating physical reductions of emissions, DOE intends to use the 

effects projected from the National Energy Modeling System (NEMS) – 

Technologies (BT) modeling analysis used for the Utility Impact Analys

 The analysis will consider: Carbon dioxide (CO2), Sulfur dioxide (S

oxides (NOx), Methane (CH4), Nitrous Oxide (N2O), and Mercury (

• In estimating the monetary value of reduction of emissions, DOE inten

updated figures to the extent possible, including the most current Soc

Carbon (SCC) values developed by interagency reviews.

Item 15‐1: DOE seeks input on its approach to conduct the emissions ana

residential boiler products covered by this rulemaking.

Item 16‐1: DOE requests comments on the approach it plans to use for es

monetary benefits associated with emissions reductions.
42

Utility Impact Analysis

Purpose

• Assess the overall effects on domestic energy supplies that would resu

adoption of amended energy conservation standards.

Method

• DOE proposes to use NEMS‐BT, the model developed and used by DO

Annual Energy Outlook (AEO) report, as the basis of the utility impact 

• DOE will model the energy savings impacts from amended energy con

standards using NEMS‐BT to generate projections that may deviate fro

Reference Case (i.e., without amended standards).

• Outputs of the utility impact analysis include projections of electricity 

and avoided capacity resulting from a comparison of the base case an

cases.

Item 17‐1: DOE welcomes input from stakeholders on its proposed approathe utility impact analysis.
43

Employment Impact Analysis

Purpose

• Assess the overall effects on national employment from the adoption 

amended energy conservation standards at various levels.

• Include both direct and indirect employment impacts.

• Direct employment impacts are estimated in the manufacturer impac

• Indirect employment impacts result from shifting customer expenditu

goods and services (“substitution effect”) and changes in income and 

expenditure levels (“income effect”).

Method

• DOE intends to use manufacturer interviews for the evaluation of dire

employment impacts.

• DOE intends to use the Impact of Sector Energy Technologies (ImSET) 

the evaluation of indirect employment impacts.

Item 18‐1: DOE welcomes feedback on its proposed approach to assessing 

employment impacts.
44

Regulatory Impact Analysis

Purpose

• To investigate the national effects of non‐regulatory alternatives comp

mandatory energy conservation standards.

Method

• Modify NES spreadsheet model to consider non‐regulatory scenarios.• Estimate effects of non‐regulatory scenarios based on experience with 

considered policies.

• Output will include NES and NPV of the non‐regulatory alternatives.
45

Public Meeting Agenda

Test Procedures and ScopePreliminary AnalysesNOPR Analyses

4562 Regulatory History3 Rulemaking Overview

1 Introduction

7 Closing Remarks
46

Closing Remarks

Meeting participants are invited to provide closing remarks or stateme

this time.
47

How to Submit Written Comments• In all correspondence, please refer to the residential boiler rulemakin

 Residential Boiler Energy Conservation Standard Rulemaking

 Docket Number EERE‐2012‐BT‐STD‐0047

 Regulatory Identification Number (RIN) 1904‐AC88

• Email: ResBoilers2012STD0047@ee.doe.gov

Postal: Courier:Ms. Brenda Edwards

U.S. Department of Energy

Building Technologies Program, Mailstop EE‐2J1000 Independence Avenue, SW

Washington, DC 20585‐0121

Ms. Brenda Edwards

U.S. Department of Energy

Building Technologies Progra

950 L’Enfant Plaza, SWWashington, DC 20024Tel: (202) 586‐2945

Comment period closes: March 28, 2013, 11:59 PM EDT