REGULATORY IMPACT A NALYSIS F OR G ENERAL S ERVICE F LUORESCENT

L AMPS A ND INCANDESCENT R EFLECTOR L AMPS

T ABLE O F C ONTENTS

R IA.1 INTRODUCTION

...................................... ............................................................ RIA­1

R IA.2 METHODOLOGY

....................................... .......................................................... RIA­1

RIA­iREGULATORY IMPACT A NALYSIS F OR G ENERAL S ERVICE F LUORESCENT

L AMPS A ND INCANDESCENT R EFLECTOR L AMPS

R IA.1 INTRODUCTION

D OE w ill p repare a draft r egulatory i mpact a nalysis i n c ompliance w ith Ex ecutive O rder

1 2866, “ Regulatory P lanning a nd R eview,” which w ill be s ubject t o r eview b y t he O ffice o f

M anagement a nd B udget’s O ffice o f I nformation a nd R egulatory A ffairs ( OIRA). 5 8 F R 5 1735,

S eptember 3 0, 1 993. D OE w ill c onduct t his a nalysis as p art o f t he No tice o f P ublic R ulemaking

( NOPR).

R IA.2 METHODOLOGY

A s p art o f t he r egulatory i mpact a nalysis, and a s d iscussed i n TS D Chapter 1 2,

“ Manufacturer I mpact A nalysis,” DOE w ill i dentify a nd s eek t o m itigate t he o verlapping e ffects

o n m anufacturers o f n ew o r r evised D OE s tandards a nd other r egulatory a ctions a ffecting t he

s ame p roducts. Th rough m anufacturer i nterviews a nd l iterature s earches, DOE w ill c ompile

i nformation o n b urdens f rom e xisting a nd i mpending r egulations a ffecting t he G SFL a nd I RL.

Th e r egulatory i mpact a nalysis a lso w ill a ddress th e p otential f or n on­regulatory

a

pproaches t o s upplant o r a ugment e nergy c onservation s tandards t o i mprove t he e fficacy o f

G SFL a nd I RL. Th e NO PR w ill i nclude a complete q uantitative a nalysis o f a lternatives t o t he

p roposed c onservation s tandards. D OE w ill u se t he NES spreadsheet m odel ( as d iscussed i n

TS D Chapter 1 0, “ National I mpact A nalysis”) t o c alculate t he NES and NP V for t he a lternatives

t o t he p roposed c onservation s tandards. L isted b elow are s ome o f t he a lternative m eans o f

a chieving e nergy e fficiency i mprovements t hat D OE h as u sed i n p rior r ulemakings. Th e

Te chnical S upport D ocument ( TSD) i n s upport o f D OE’s NO PR w ill i nclude a complete a nalysis

o f e ach a lternative, t he m ethodology f or w hich i s d iscussed b riefly b elow.

• no n ew regulatory a ction

• consumer t ax i ncentives

• manufacturer t ax i ncentives

• performance s tandards

• rebates

• voluntary e nergy e fficiency t argets

• early r eplacement ( i.e., retrofit)

• bulk g overnment p urchases

To compare e ach a lternative q uantitatively t o p roposed e nergy c onservation s tandards,

D OE w ill n eed t o q uantify t he e ffect o f e ach a lternative o n t he p urchase a nd u se o f m ore

e fficacious g eneral s ervice f luorescent l amps a nd i ncandescent r eflector l amps. O nce D OE

e stimates t he i mpacts o f a lternatives t o t he s tandard, D OE w ill r un t hese s tandard­alternative

s cenarios i n t he NES spreadsheet m odel. K ey i nputs that D OE m ay a djust i n t he NES

spreadsheet m odel f or t his a nalysis i nclude:

RIA­1• energy p rices a nd e scalation f actors;

• implicit m arket d iscount r ates f or t rading o ff p urchase p rice a gainst op erating e xpense

w hen c hoosing e quipment e fficiency;

• customer p urchase p rice, op erating c ost, a nd s hipment s cenarios

• customer p rice v ersus e fficiency r elationships; a nd

• equipment s tock d ata ( purchase o f n ew e quipment o r t urnover r ates f or i nventories).

Th e o utput f rom t he NES spreadsheet m odel f or e ach a lternative c onsidered w ill b e a s

f ollows:

• Energy u se ( EJ

= 1 0 18 joule) i s t he c umulative e nergy u se o f t he e quipment f rom t he

e ffective d ate o f t he n ew s tandard t o 2 042. D OE w ill r eport e lectricity c onsumption

a s p rimary e nergy.

• National e nergy s avings i s t he c umulative n ational e nergy u se f rom t he b ase c ase

p rojection l ess t he a lternative p olicy c ase p rojection.

• Net p resent v alue i s t he v alue o f f uture op erating c ost s avings f rom g eneral s ervice

f luorescent l amps a nd i ncandescent r eflector l amps b ought i n t he p eriod b etween t he

e ffective d ate o f t he n ew s tandard a nd t he c lose o f t he a nalysis p eriod. D OE

c alculates t he NP V as t he d ifference b etween t he p resent v alue o f e quipment a nd

op erating e xpenditures ( e.g., energy) i n t he b ase c ase, a nd t he p resent v alue o f

e xpenditures i n e ach a lternative p olicy c ase. D OE w ill d iscount f uture op erating a nd

e quipment e xpenditures t o i ts a nalysis y ear u sing t wo d iscount r ates: s even a nd t hree

p ercent. D OE w ill a lso c alculate op erating e xpenses ( including e nergy c onsumption)

o ver t he l ife o f t he e quipment.

RIA­2