Stas,Eric From: Sent: To: SUbject: Miller,Bryan Friday,December04,20093:49PM Stas,Eric RE:storyonheatersrule
Eric, please include this in the docket. Thanks. Original Message

----- From: Kelly, Henry To: Hagerman, Joseph; Miller, Bryan Sent: Wed Dec 02 18:08:23 2009 Subject: Fw: story on heaters rule

----- Original Message

----- From: Harris, Jeffrey <JHarris@ase.org> To: Kelly, Henry; Harris, Jeffrey <JHarris@ase.org> Sent: Wed Dec 02 1S:3S:47 2009 Subject: RE: story on heaters rule Henry

- that's exactly right. I can send you the original ASAP press release (joined byASE) that triggered this story

- but we made**~xactly** that point, that the NOPR identified TSL S and asked for comments on stepping up the proposed standard from TSL 4to S. We'll be sure to submitthose comments 

### &try to give DOE the strongest possible basis for making that decision in the Final Rule. My own view is that carving out the large-WH part ofthe market to introduce advanced tech's is agood idea in this case, but an even betterone (ifDOE had the legis authority, which we're also working on as you may know) would be to set a 2-level std: 1 for all products and a higher level that can be spec'd for new construction via bUilding codes

- which are now largely pre-empted by NAECA. This is exactlythe solution we helped negotiate in the consensus stds agreement on HVAC equip with AHRI afew weeks ago, but at that point we were not able to getthemto include WHo We'll keep trying, but one ofthe best ways to give the industry laggards a nudge towards a negot agreement 

### (& only 1 ofthe 3mfrs is really reluctant) would befor DOE to show a strong(er) leaning toward TSL 5 (or above!). Cheers

- jh Jeffrey Harris Vice President

- Programs Alliance to Save Energy 1850MStreet NW, Suite 600 Washington, DC 20036 +1 202 S30 2243 office +1 202 834 3297 mobile www.ase.org -----Original Message----- From: Kelly, Henry <Henry.Kelly@ee.doe.gov> Sent: Wednesday, December02, 2009 2:S9 PM To: Harris, Jeffrey <JHarris@ase.org> Subject: story on heaters rule

1Jeff: You're quoted here recommending that we should consider higher standards for >55gal water heaters. OurNOPR analyzed preciselythis option, makes the pointthat it was "strongly considered", and asks for comments. H
Next, DOE considered T5L 5, in which DOE paired efficiency levels that would effectively require different technologies for large-volume and small-volume gas-fired and electric storagewater heaters in an effort to promote advance technology penetration into the market and potentially save additional energy. Specifically, T5L 5would effectively require heat pump technology for electric storage water heaters greaterthan 55 gallons and condensing technologyfor gas-fired storagewater heaters greaterthan 55 gallons

. DOE strongly considered T5L 5 and believes it would provide additional energy and carbon savings, while mitigating some ofthe issues associated with a national heat pump water heater standard. However, DOE has identified anumber ofpotential issues with T5L 5 related to proposing standards that effectively require different technologies for different subsets ofproducts. Fortoday's proposed rule, the Secretary tentatively concludes that at T5L 5, the benefits ofenergy savings, generating capacity reductions, economic savings for most consumers, and the emission reductions would be outweighed by the large capital conversion costs that could result in alarge reduction in INPVfor the manufacturers, the uncertainties associated with the rapid introduction ofnew producttechnologies, the large increases in first costs, especiallyfor those consumers that would haveto make structural changes, and the uncertainties associatedwith a promulgation ofan amended energy conservation standards that only affects a subset ofthe market. DOE seeks comments and data from interested parties that will assist DOE in bringing further clarityto some ofthe issues surroundingthe product division used in thetwo slope energy-efficiency equations, promulgation ofdifferent standards for a subset ofproducts, the heat pump water heater market, the condensing water heater market, as well as help DOE determine how these issues can be adequately addressed priorto the compliance date ofan amended energy conservation standard for residential water heaters. (SeeIssue 17 under "Issues on Which DOE Seeks Comment" in section VII.Eofthis NOPR.) DOE will revisit this decision and strongly consider adoption ofTSL 5in the final rule in light ofany comments and data submitted by interested parties.

================================================ 2. ENERGY EFFICIENCY: DOE proposal for waterheaters disappoints consumercoalition (12/02/2009) JennyMandel, E&E reporter Acoalition ofenergy-efficiency groups is criticizing a draft federal rule for home water heaters that it says will require incrementally better energy performance but fails to push newtechnologies into the marketplace. TheAppliance Standards Awareness Project

-- which includes the American Council for an Energy-Efficient Economy and the Alliance to Save Energy, among other groups -- criticized new residential water heater standards proposed last weekby the Department ofEnergy in a notice ofproposed rulemaking. The new standards would require that residential water heaters meet higher efficiency metrics, which a DOE analysis says can be achieved by steps such as increasing the insulation on tank-style water heaters. DOE said the standards would save about 2.85 quads ofenergy over 30years, equivalentto about 61 days ofU.S. gasoline use, and save consumers $15.6 billion.
2Butthe coalition said the proposal leaves out modest changes that could help push the market toward much bettertechnologies without causing disruptions for most homeowners. The group said standards that would require more energy-efficient condensing gas and electric heat pump water heaters for the biggest homes would benefit consumers in the long term. "Big energy savings sometimes requires big changes in technology," said Andrew deLaski, executive director ofthe coalition. "We're disappointed that the Obama administration has shied away from making even amodest first step to transition America to the most efficient types ofwater heaters." The group agreed with DOE that requlrlng the new technologies to be installed in all homes could be disruptivefor some homeowners. But it said DOE should adopt a requirement that new water heaters largerthan 55 gallons, used in 4percent ofgas and 11 percent ofelectric water heater markets, should be ofthe more efficient type. Such a standard would save 3.7 quads ofenergy, the group said, and save consumers $22 billion. JeffHarris, vice presidentfor programs with the Alliance to Save Energy, said requlrlng the new technology in that limited casewould have amarket acceleration effect. "Ourview is that we hope that DOE will seefit to strengthen the standards that they've announced on a preliminary basis here. We thinkthat's justified by the economics and the technologies." Harris said it would also be beneficial ifDOE were given legislative authority to draft two different standards, onefor appliances in new homes and one for replacements made in existing homes. It is often cost-effective to install newtechnologies in new buildings, but impractical to putthem into older homes that might have space constraints or lackpiping or electrical wiring for them. The draft rule is expected to be published soon in the Federal Register, and a public hearing on it will be held Jan. 7, 2010. Clickhere to read the notice ofproposed rulemaking.

Bryan Miller SeniorCounsel US Department ofEnergy 202-586-8627

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