U.S. DEPARTMENT OF ENERGY / 1 WORKSHOP ON STANDARDS FORWATER HEATERS U.S. Department ofEnergy 1000 Independence'Avenue, S.W. Washington, DC 20585 (Rm. 1E-245) November 9-10, 1998 Workshop Purpose: The purpose ofthe workshop isto discuss the analyses and computer models to beused in support ofthe Department's rulemaking regarding energy conservation standards for water heaters, including: engineering, life-cycle-cost (LCC), national energy savings (NES), manufacturing impacts, consumer sub-group, environmental and utility analyses. The preliminary results from the water heaterinsulation test at the National Institute ofStandards and Technology (NIST) will also bediscussed. Workshop Outcomes: To receive comments on the analysis results from the engineering and lifecycle-cost analyses; to discuss and comment onthe analysis methodologies used forthenational energy savings, consumer, environmental, utility and manufacturing impacts analyses; and to discuss the water heater insulation test results. Proposed Agenda November 9

9:00

- 9:15 Introduction and Review Agenda 9:15

- 9:30 Opening Remarks and Overview ofthe WaterHeater Rulemaking Schedule Break (as appropriate) 9:30

- 12:15 Engineering Analysis Methodology and Results: Presentation and discussion ofthe cost efficiency spreadsheets developed for the engineering analysis. Discussion ofthe derivation ofthe retail price database and manufacturing markups, discussion ofthe placeholder cost for preventing ignition offlammable vapors, venting costs and the simulationmodels WATSIM and TANK. Presentation ofthe preliminary costs, energy savings and simple payback. 12:15

- 1:15 Lunch (On Your Own) 1:15

-4:00 LCC: Discussion ofthe life-cycle-cost spreadsheet model that accounts forvariability ofkey criteria, such as household characteristics related to hot water use from the Residential Energy Consumption Survey (RECS), discount rates, energy prices, and manufacturing costs. Preliminary life-cycle costs and energy savings foreach design option and design option combinations.U.S. DEPARTMENT OF ENERGY WORKSHOP ON STANDARDS FORWATER HEATERS-continuedBreak (as appropriate) 4:00

- 4:30 Marginal Energy Rates: Overview ofDOE's incorporation ofthe Advisory Committee's recommendations on marginal energy rates into the rulemaking. 4:30- 4:45 Summary discussion and Adjournment
November 10

8:30

- 8:45 Review ofNovember 9 Discussions and Agenda Review 8:45

- 10:00 Manufacturer Impacts: Presentation and discussion ofthe spreadsheet using the Government Regulatory Impact Model (GRIM), including the approaches used to develop the strawman company data and the water heater manufacturer interview approach. 10:00-10:15 Break

10:15

- 11:00 National Energy Savings: Presentation ofthebaseline results, methodology, the NES spreadsheet, water heater lifetime, shipment data and preliminary methods used to determine the competitive impacts ofproposed standards levels on different fuel types. 11:00

- 11:15 Consumer Sub-group: Discussion oftheassumptions, analysis approach, and preliminary results from the RECS database. 11:15

- 11:45 Environmental and Utility Impacts: Presentation and discussion ofthe analysis, specifically, the National Energy Modeling System developed bythe Energy Information Administration and themodifications to it. 11:45

- 12:15 Technical Research: Presentation and discussion ofpreliminary NIST test results using water and HFC-245fa as blowing agents for water heater insulation. 12:15

- 12:30 Next Steps: Issues to beresolved, identification ofadditional data requirements, stakeholder concerns, and final comments. 12:30 AdjournmentU.S. DEPARTMENT OF ENERGY WORKSHOP ON STANDARDS FORWATER HEATERS-continuedBreak (as appropriate) 4:00

- 4:30 Marginal Energy Rates: Overview ofDOE's incorporation ofthe Advisory Committee's recommendations on marginal energy rates into the rulemaking. 4:30- 4:45 Summary discussion and Adjournment
November 10

8:30

- 8:45 Review ofNovember 9 Discussions and Agenda Review 8:45

- 10:00 Manufacturer Impacts: Presentation and discussion ofthe spreadsheet using the Government Regulatory ImpactModel (GRIM), including the approaches used to develop the strawman company data and the water heater manufacturer interview approach. 10:00- 10:15 Break

10:15

- 11:00 National Energy Savings: Presentation ofthe baseline results, methodology, the NES spreadsheet, water heater lifetime, shipment data and preliminary methods used to determine the competitive impacts ofproposed standards levels on different fuel types. 11:00

- 11:15 Consumer Sub-group: Discussion oftheassumptions, analysis approach, and preliminary results fromthe RECS database. 11:15

- 11:45 Environmental and Utility Impacts: Presentation and discussion ofthe analysis, specifically, the National Energy Modeling System developed bythe Energy Information Administration and the modifications to it. 11:45

- 12:15 Technical Research: Presentation and discussion ofpreliminary NISTtest results using water and HFC-245fa as blowing agents forwater heater insulation. 12:15

- 12:30 Next Steps: Issues to be resolved, identification ofadditional datarequirements, stakeholder concerns, and final comments. 12:30 Adjournment