1 |EnergyEfficiencyandRenewableEnergyeere.energy.govEnergyConservationStandards:FrameworkforCommercialPrerinseSprayValvesSeptember30,2014JohnCymbalskyDepartmentofEnergyBuildingTechnologiesOfficeEERE‐2014‐BT‐STD‐0027SprayValves2014std0027@ee.doe.gov2Welcome•Introductions(aroundtheroom)•RoleoftheFacilitator•GroundRules–Speakoneatatime–Sayyournamefortherecord—therewillbeacompletetranscriptofthismeeting–Beconcise—sharethe“air‐time”–Keepthefocushere—cellphonesonsilent;limitsidebarconversations–Webinarparticipantsturnphoneonmute;“raiseyourhand”toberecognizedtospeak3MorningAgenda9:00–9:05am Welcome9:05–9:30amAgendaReview,OpeningRemarks,HousekeepingItems9:30–10:00amRulemakingProcessOverview10:00–10:30amAuthority andDefinitions10:30–10:45am Break10:45–11:15amTest ProcedureandTestMetrics11:15–11:45amMarket& TechnologyAssessment,ScreeningAnalysis11:45–12:30pmEngineeringAnalysis12:30–1:30 pm BreakforLunch4AfternoonAgenda1:30–2:00pmMarkups andEnergyandWaterUseAnalyses2:00–2:30pmLife‐CycleCost andPaybackPeriodAnalysis2:30–2:45pm Break2:45–3:00pmShipmentsAnalysisandNationalImpact Analysis3:00–3:15pmPreliminaryManufacturerImpact Analysis3:15–3:30 pmNOPRAnalyses3:30–4:00pmOtherIssuesandComments4:00pm ClosingRemarks5OpeningRemarksMeetingparticipantsareinvitedtoprovideopeningremarksorstatementsatthistime.6PublicMeetingTopics1HousekeepingItems2RulemakingProcessOverview3Authority&Definitions4TestProcedure&TestMetrics5RulemakingAnalyses6ClosingRemarks7HousekeepingItems– ListeningViatheWebcast•TheDepartmentisbroadcastingthismeetingliveovertheInternet.•DOEisprovidingthewebcasttoaccommodatestakeholdersthatareunabletoattendthepublicmeetinginperson.•Thewebbroadcastallowsstakeholderstolisteninandviewtheslides.•Allstakeholdersareencouragedtosubmitwrittencommentsafterthepublicmeeting.8PurposeoftheFrameworkDocumentPublicMeeting•Presenttheanalyticalapproachestobeusedtoevaluateenergyconservationstandardsforcommercialprerinse sprayvalves(CPSV)•Informinterestedpartiesofandfacilitatetherulemakingprocess•Provideaforumforpublicdiscussionofrulemakingissues•Encourageinterestedpartiestosubmitdata,information,andwrittencommentsHousekeepingItems– PurposeofMeeting9RequestforComment•ThelistofitemsrequestingcommentisintheFrameworkdocument,availableathttp://www1.eere.energy.gov/buildings/appliance_standards/rulemaking.aspx?ruleid=100HousekeepingItems– RequestforCommentItem#‐#:DOEsolicitscommentonarangeofspecificissuesthroughouttheFrameworkdocument.•Throughoutthispresentation,theseissueswillbehighlightedfordiscussionincommentboxessuchasthis.•ItemnumberscorrespondtothoseintheFrameworkdocument.•DOEwelcomescommentsconcerningthesespecificissuesandanyotherissuesrelatedtothisrulemaking.10InstructionsforSubmittingCommentsInallcorrespondence,pleaserefertotheCPSVrulemakingby:– StandardsforCommercialPrerinseSprayValves– DocketNumberEERE‐2014‐BT‐STD‐0027– RegulationIdentificationNumber(RIN)1904‐AD31Email:SprayValves2014STD0027@ee.doe.govPostal:Courier:Ms.BrendaEdwardsMs.BrendaEdwardsU.S.DepartmentofEnergyU.S.DepartmentofEnergyBuildingTechnologiesProgram,BuildingTechnologiesProgramMailstopEE‐2J950L’EnfantPlazaSW,Suite6001000IndependenceAvenue,SWWashington,DC20024Washington,DC20585‐0121Tel:202586‐2945CommentperiodclosesOctober27,2014HousekeepingItems– SubmittingComments11PublicMeetingTopics1HousekeepingItems2RulemakingProcessOverview3Authority&Definitions4TestProcedure&TestMetrics5RulemakingAnalyses6ClosingRemarks12StandardsDevelopment•TheEnergyPolicyandConservationAct(EPCA)of1975establishedtheEnergyConservationProgramforConsumerProductsOtherThanAutomobiles,whichincludescommercialprerinse sprayvalves(42U.S.C.6291(33))•EPCAdirectsDOEtodevelopneworamendedstandardsdesignedtoachievethemaximumimprovementinenergyefficiencythatistechnologicallyfeasibleandeconomicallyjustified•EPCAalsorequiresthat,notlaterthan6yearsaftertheissuanceofafinalruleestablishingoramendingastandard,DOEpublish:(A)Anoticeofproposedrulemakingproposingnewstandards;or(B)Anoticeofdeterminationthattheexistingstandardsdonotneedtobeamended.(42U.S.C.6295(m)(1))RulemakingProcessOverview13•EPCAdirectsDOEtoconsidersevenfactorsforanalysiswhensettingtechnologicallyfeasibleandeconomicallyjustifiablestandards.RulemakingProcessOverviewEPCA Factor DOE Analysis1. Economic impact on customers andmanufacturers• Life-cycle Cost (LCC) Analysis• Manufacturer Impact Analysis (MIA)2. Lifetime operating cost savings • LCC Analysis3. Total projected energy and watersavings• National Impact Analysis (NIA)4. Impact on utility or performance• Engineering Analysis• Screening Analysis5. Impact of any lessening of competition • MIA6. Need for national energy conservation • NIA7. Other factors the Secretary considersrelevant• Emissions Analysis• Utility Impact Analysis• Employment Impact Analysis14TestProcedureandStandardRulemakingsTimelinesRulemakingProcessOverviewFrameworkDocumentPreliminaryAnalysisNOPRFinalRuleFinalRuleNOPREnergyConservationStandard(ECS)TestProcedure (TP)(ifapplicable)•ECSandTPrulemakingsareseparateprocessesbutsometimeshaveintegratedtimelines•TheexpectedECSrulemakingtimelinedurationforCPSVisabout2years•TheexpectedTPrulemakingtimelinedurationforCPSVisabout1.5years•Foradditionalinformationontherulemakingprocessgoto:http://www1.eere.energy.gov/buildings/appliance_standards/standards_dev_and_revision.html15FrameworkDocument•AccompanyingFederalRegisternoticeofpublicmeeting(NOPM)-Givesnoticeofthepublicmeeting,availabilityoftheFrameworkdocumentbeingdiscussedtoday,andencouragesinterestedpartiestosubmitcomments-TheFrameworkwaspostedSeptember8,2014onDOE’swebsiteathttp://www1.eere.energy.gov/buildings/appliance_standards/rulemaking.aspx?ruleid=100.-TheNOPMwaspublishedSeptember11,2014(79FR54213)•Providesanoverviewoftherulemakingprocessandencouragesearlyparticipationfrominterestedparties•Invitescommentsonresourcesanddatasources•InvitescommentsonproposedapproachissuesRulemakingProcessOverviewFrameworkDocumentPreliminaryAnalysisNOPRFinalRule16PreliminaryAnalysisRulemakingProcessOverviewFrameworkDocumentPreliminaryAnalysisNOPRFinalRule•AccompanyingFederalRegisterNOPM-Givesnoticeofthepublicmeeting,availabilityofthepreliminarytechnicalsupportdocument(TSD),providesdiscussionofcommentsreceivedinresponsetotheFrameworkdocument,andencouragesinterestedpartiestosubmitcomments•Analysis–Designoptionstoincreaseefficiency(engineeringanalysis)–Manufacturer‐to‐usermarkups–Energyandwateruse–CustomerLCCandpaybackperiod(PBP)–Shipments–Nationalimpacts,includingnationalenergysavings(NES),nationalwatersavings,andcustomernetpresentvalue(NPV)–Preliminaryanalysisofmanufacturerimpacts17NoticeofProposedRulemaking(NOPR)RulemakingProcessOverviewFrameworkDocumentPreliminaryAnalysisNOPRFinalRule•FederalRegisterPublication-Givesnoticeofthepublicmeeting,availabilityoftherevisedTSD,andencouragesinterestedpartiestosubmitcomments-ProvidesdiscussionofcommentsreceivedinresponsetopreliminaryanalysisTSD-Presentsanyproposedstandardlevelsforpubliccomment•Analyses–CustomerSubgroup–ManufacturerImpact–EmploymentImpact–UtilityImpact–EmissionsandMonetization–RegulatoryImpact18FinalRuleRulemakingProcessOverviewFrameworkDocumentPreliminaryAnalysisNOPRFinalRule•FederalRegisterPublication-AnnouncesavailabilityofthefinalTSD-Providesdiscussionofallwrittenandverbalcommentsreceivedinresponsetotheproposedstandard-PresentsthestandardlevelsDOEisadopting-Establishesthecompliancedateforadoptedstandards•FinalTSD-Presentstherevisedanalysisoftheimpactsofstandardsandoftheweightofthoseimpactsonthefinalrule19RulemakingScheduleRulemakingProcessOverview2014201520162019Framework DocumentPublicMeetingSeptember 2014Preliminary AnalysisPublicMeetingPlannedSpring2015NOPRPublicMeetingPlanned Fall2015ProposedEnergyConservation StandardFinalRuleCompliancePlannedSummer201920PublicMeetingTopics1HousekeepingItems2RulemakingProcessOverview3Authority&Definitions4TestProcedure&TestMetrics5RulemakingAnalyses6ClosingRemarks21AuthorityandBackground—Overview•TitleIIIofEPCAsetsforthavarietyofprovisionsdesignedtoimprovetheenergyefficiencyofvariousproductsandequipment•PartBofTitleIIIprovidesforthe“EnergyConservationProgramforConsumerProductsOtherThanAutomobiles”(42U.S.C.6291–6309)•TheEnergyPolicyActof2005(EPAct2005)amendedsection325ofEPCA,whichnowstatesthatcommercialprerinsesprayvalvesmanufacturedonorafterJanuary1,2006shallnothaveaflowrateofmorethan1.6gallonsperminute(gpm)Authority&Definitions22ScopeofCoverage•EPCAdefinitionofCommercialPrerinseSprayValve-“Ahandhelddevicedesignedandmarketedforusewithcommercialdishwashingandwarewashingequipmentthatsprayswaterondishes,flatware,andotherfoodserviceitemsforthepurposeofremovingfoodresiduebeforecleaningtheitems.”(10CFR431.262)-DOEisconsideringmodificationstothedefinitionofcommercialprerinsesprayvalvetoclarifythescopeofcoverage,ifneededAuthority&Definitions23AuthoritytoModifyDefinition•UnderEPCA,theSecretarymaymodifythedefinitionof“commercialprerinsesprayvalve”byrule–•(i)toincludeproducts–(I)thatareextensivelyusedinconjunctionwithcommercialdishwashingandwarewashingequipment;(II)theapplicationofstandardstowhichwouldresultinsignificantenergysavings;and(III)theapplicationofstandardstowhichwouldmeetthecriteriaspecifiedinsection6295(o)(4)ofthistitle;and•(ii)toexcludeproducts–(I)thatareusedforspecialfoodserviceapplications;(II)thatareunlikelytobewidelyusedinconjunctionwithcommercialdishwashingandwarewashingequipment;and(III)theapplicationofstandardstowhichwouldnotresultinsignificantenergysavings.(42U.S.C.6291(33)(B))Authority&DefinitionsItem1‐1:DOErequestscommentonmodificationstothedefinitionof“commercialprerinsesprayvalve”thatmayclarifywhatequipmentiscovered.24PrerinseSprayValveMetric•AspartofthisrulemakingDOEmayconsideradoptinganalternativewaterconsumptionmetrictoreplacethecurrentflowrate(gpm)metric•DOEwillconsideralternativesthatwillachieveenergyandwatersavings,andpreserveequipmentutility•TwopossiblemetricsDOEcouldconsider:•Aperformancemetricthataccountsforbothflowrateandsprayforce•Ametricthatdirectlycorrelateswaterusetothetimetakentocleanadish,measuredingallonsperdishAuthority&DefinitionsItem1‐2:DOErequestscommentonpotentialmetricsotherthanflowratethatmaybeusedtoachievegreaterwatersavingsincommercialprerinsesprayvalvesandifthereissufficientbenefittousinganalternativemetrictojustifychangingfromthecurrentflowratemetric.25PublicMeetingTopics1HousekeepingItems2RulemakingProcessOverview3Authority&Definitions4TestProcedure&TestMetrics5RulemakingAnalyses6ClosingRemarks26CurrentTestProcedure•EPCAspecifiesthatthetestprocedureformeasuringflowrate(gpm)forcommercialprerinsesprayvalvesshallbebasedonASTMStandardF2324“StandardTestMethodforPre‐RinseSprayValves”42U.S.C6293(b)(14)•InOctober2013,DOEpublishedafinalrulethatincorporatedbyreferencethetestprocedurespecifiedinASTMStandardF2324‐03(2009)•AlthoughASTMStandardF2324‐03(2009)includesatestforaqualitativecleanabilitytest,thecurrentDOEtestprocedureonlyincorporatestestingmethodsformeasuringflowrateTestProcedure&TestMetrics27PotentialTestProcedureUpdates•Sincethepublicationofthe2013testprocedure,ASTMhasissuedStandardF2324‐13toreflectchangesintheindustry•TheprimarychangetotheASTMtestprocedurewastoreplacethecleanabilitytestwithasprayforcetest-Cleanabilitytestevaluatesthecleaningtimeofastandarddinnerplate,measuredinsecondsperplate-Sprayforcetestmeasurestheamountofforceexertedbytheflowofwater,measuredinounce‐force(ozf)-Thesechangesdonotimpacttheenergy/waterusemeasurementoftheDOEtestprocedure,butcouldbeusedasawaytoestablishCPSVequipmentclassesTestProcedure&TestMetricsItem1‐3:DOErequestscommentonthepotentialuseofASTMF2324‐13asthemethodoftestformeasuringthewaterconsumptionofcommercialprerinsesprayvalves.28PublicMeetingTopics1HousekeepingItems2RulemakingProcessOverview3Authority&Definitions4TestProcedure&TestMetrics5RulemakingAnalyses6ClosingRemarks29RulemakingAnalysesMarket &TechnologyScreeningAnalysisEngineeringAnalysisMarkups AnalysisLife-Cycle Costand PaybackPeriod AnalysisPreliminaryManufacturerImpact AnalysisShipmentsAnalysisNationalImpactAnalysisFrameworkDocumentPreliminaryAnalysisNOPRFinalRuleEnergy andWater UseAnalysis30•Purpose:–Characterizethecommercialprerinse sprayvalvemarketandthetechnologiesthatimproveefficiency•Method:–Identifyandcharacterizemanufacturersofcommercialprerinse sprayvalves–Estimateshipmentsandtrendsinthemarket–IdentifytechnologiesthatcouldimproveefficiencyRulemakingAnalyses:Market&Technology31RulemakingAnalyses:Market&TechnologyTradeGroups•PlumbingManufacturersInternational(PMI)istheprimarytradeorganizationthatsupportsandhasaninterestincommercialprerinsesprayvalves•NorthAmericanAssociationofFoodEquipmentManufacturers(NAFEM)isatradeassociationofover500foodserviceequipmentmanufacturersandisanotherorganizationthatmaybeinterestedincommercialprerinsesprayvalvesRetailers•Prerinsesprayvalvesaregenerallyavailabletocustomersat:‐Brick‐and‐mortarretailers(massmarketretailers,specialtystores,cluborwarehousestores)‐Internetsellers‐ShowroomsItem3‐3:DOEseeksinformationregardinganyothertradeorganizationsthatrepresentthecommercialprerinse sprayvalveindustry32RulemakingAnalyses:Market&Technology•49basicmodelswerefoundusingtheDOEComplianceCertificationManagementSystem(CCMS)database,theEPAWaterSense®productdatabase,manufacturerwebsites,andWebsearches•ShowstheestimatedpercentagesofbasicmodelsbymanufacturerintheU.S.marketforcommercialprerinse sprayvalvesManufacturersNiagaraConservation,2%MuellerStreamlineCo.,4%ChicagoFaucet,4%KrowneMetalCorporation,4%BKResources,4%StrahmanValves,Inc.,6%BricorAnalytical,Inc,8%FisherManufacturing,12%ZurnIndustries,12%T&SBrass,16%ComponentHardwareGroup,27%33RulemakingAnalyses:Market&TechnologyEquipmentClasses•PursuanttoEPCA,DOEestablishesdifferentequipmentclassesby:(1)typeofenergyused;(2)capacityoftheproduct;or(3)anyotherperformance‐relatedfeaturesthatrequiredifferentstandardlevels,suchasfeaturesaffectingcustomerutility(42U.S.C.6295(q))•Allcommercialprerinse sprayvalvesarecurrentlyincludedinasingleequipmentclasssubjecttoamaximumflowrateof1.6gpm•DOEwillexaminewhetheranyofthefollowingcharacteristicscouldbeusedforestablishingequipmentclasses:•Flowrate(gpm)•Sprayforce(ozf)•Cleanability time(seconds/plate)•Designofflowcontrolinsert•Otherequipmentfeaturesthatchangefunctionality,e.g.,spraypatterns34Item3‐8:DOErequestsinputfrominterestedpartiesaboutthedesigncharacteristicsandcriteriathatarebeingconsideredtocreateequipmentclasses.Inparticular,dootherperformance‐relatedfeatureswarrantseparatestandardlevels?Item3‐9:DOEseekscommentonwhethersprayforceorcleanabilityareusefulcharacteristicsthatcoulddefinetheequipmentclassesofaprerinsesprayvalve.Item3‐10:DOErequestscommentonhowultra‐lowflowsprayvalvesdifferfromothersprayvalvesinusage,functionality,features,andcleaningability.RulemakingAnalyses:Market&Technology35RulemakingAnalyses:Market&Technology•Additionofaflowcontrolinsert•Smallernozzletipopenings•Incorporationofadditionalcomponents,e.g., backflowpreventers,additionalvalves,orhoses•Speciallydesignedspraypatterns,e.g.,•Cone•Solidstream•Triplesolidstream•Flatfan•Shower•DOEisconsideringthefollowingtechnologyoptionstoimprovetheefficiencyofcommercialprerinse sprayvalves:TechnologyOptions36RulemakingAnalyses:Market&TechnologySpraypattern DescriptionImageCone Nozzlewith holloworsolidconespray,varietyofconeangles(“fan”)Solidstream NozzlewithsinglesolidjetstreamTriple solidstreamNozzlewiththreesprayholes,each withsolidjetstreams(“tripleaction,”“tri‐tip”)FlatFan Nozzleproducingflat,fanjetstreamatvariousangles(“knife‐like”)Shower Sprayfacewithmultiplesprayholes,resemblesacommonshowerhead(“rose spray”)Item3‐12:DOEseeksinformationonwhattechnologyoptionsareavailabletoimprovetheperformanceofcommercialprerinse sprayvalves.37RulemakingAnalysesMarket &TechnologyScreeningAnalysisEngineeringAnalysisMarkups AnalysisLife-Cycle Costand PaybackPeriod AnalysisPreliminaryManufacturerImpact AnalysisShipmentsAnalysisNationalImpactAnalysisFrameworkDocumentPreliminaryAnalysisNOPRFinalRuleEnergy andWater UseAnalysis38•Purpose:─Screen‐outtechnologyoptionsthatDOEwillnotconsiderintheengineeringanalysisforcommercialprerinse sprayvalves•Method:─DOEwillevaluateeachtechnologyoptionbasedonthefollowingcriteria:•Technologicalfeasibility•Practicabilitytomanufacture,install,andservice•Adverseimpactsonproductutilityoravailabilitytocustomers•Adverseimpactonhealthandsafety─ThetechnologyoptionsthatarenotscreenedoutwillbeadoptedasdesignoptionsintheengineeringanalysisRulemakingAnalyses:ScreeningAnalysis39RulemakingAnalysesMarket &TechnologyScreeningAnalysisEngineeringAnalysisMarkups AnalysisLife-Cycle Costand PaybackPeriod AnalysisPreliminaryManufacturerImpact AnalysisShipmentsAnalysisNationalImpactAnalysisFrameworkDocumentPreliminaryAnalysisNOPRFinalRuleEnergy andWater UseAnalysis40•Purpose:Determinetherelationshipbetweenmanufacturersellingprice(MSP)andefficiencyOverviewRulemakingAnalyses:EngineeringAnalysis•Life-cycle Cost andPayback Period•National ImpactAnalysisCost – EfficiencyRelationship

MSPWater UseAnalyses Using Cost –Efficiency Relationship41AnalyzeallequipmentclassesThebaselineefficiencylevelis1.6gpmbasedontheexistingstandardForallequipmentclasses,identifytheefficiencyandcostofmoreefficientunitsbasedondesignoptionmodeling,producttesting,andteardowns;identifythemaximumtechnologicallyfeasible(max‐tech)levelforeachequipmentclassDevelopefficiencylevelsthatrangefromthebaselinetomax‐techTheresultoftheengineeringanalysiswillbeasetofprice‐efficiencycurves(MSPvs.efficiency)foreachequipmentclassChooseRepresentativeEquipmentClassesandSizesSelectBaselineEfficiencyLevelsIdentifyHigherEfficiencyUnitsDevelopEfficiencyLevelsforAnalysisDetermineCostEfficiencyRelationshipRulemakingAnalyses:EngineeringAnalysis42BaselineModels•Baselinemodelsareselectedbasedoncommonfeaturesandminimallycompliantequipmentefficiency–baselineefficiencyis1.6gpm at60poundspersquareinch(psi)•Ifanefficiencymetricotherthangpm isselected,thebaselineefficiencywillbechosentopreventbackslidingItem5‐3:DOEseeksinformationregardingthespecifictechnologicalcharacteristicsofbaselinemodels.RulemakingAnalyses:EngineeringAnalysis43RulemakingAnalyses:EngineeringAnalysisEfficiencyLevels•DOEwillidentifythehighestefficiencymodelinthemarket(max‐tech)foreachclass•DOEwillanalyzethecostsassociatedwithimplementingthescreened‐indesignoptionstoimprovesprayvalveefficiencyfrombaselineefficiencytomax‐tech•DesignoptionsthatDOEistentativelyconsideringincludetheadditionofaflowcontrolinsert,smallernozzletipopenings,incorporationofadditionalcomponents,andspeciallydesignedspraypatterns44Cost‐EfficiencyRelationshipandAnalysis•DOEwilldevelopacostmodelthatconvertsbillsofmaterials(BOMs)forbaselinemodelsandthecostofdesignoptionsfordifferentefficiencylevelsintomanufacturerproductioncosts(MPCs)─Componentcostswillbedeterminedusingreverseengineering(productteardowns)andmanufacturerfeedback(engineeringinterviews)•Manufacturersellingprice(MSP)isbasedonthemanufacturingcostofprerinse sprayvalvehardwaretimesthemanufacturermarkup–Theindustry‐widemanufacturermarkupwillbedeterminedbasedonpubliclyavailablefinancialsources(e.g.,SECForm10‐K)andmanufacturerfeedbackRulemakingAnalyses:EngineeringAnalysisManufacturerProductionCost(MPC)ManufacturerMarkups(Non‐ProductionCosts)x=•Directmaterial•Directlabor•Factoryoverhead•Depreciation•Sales&marketing•Research&development•Interest•ProfitManufacturerSellingPrice(MSP)45RulemakingAnalysesMarket &TechnologyScreeningAnalysisEngineeringAnalysisMarkups AnalysisLife-Cycle Costand PaybackPeriod AnalysisPreliminaryManufacturerImpact AnalysisShipmentsAnalysisNationalImpactAnalysisFrameworkDocumentPreliminaryAnalysisNOPRFinalRuleEnergy andWater UseAnalysis46•Purpose–Assesstheeconomicimpactsofpotentialenergyconservationstandardsonmanufacturers–Identifyandestimateimpactsonmanufacturersubgroupsthatmaybemoreadverselyaffectedthantheindustryasawhole–Examinethedirectemploymentimpacts,manufacturingcapacity,andthecumulativeregulatoryimpactonthemanufacturingindustry•Methodology–AnalyzeindustrycashflowandindustrynetpresentvaluethroughuseoftheGovernmentRegulatoryImpactModel(GRIM)–InterviewmanufacturerstorefineinputstotheGRIM,developsubgroupanalyses,andaddressqualitativeissuesRulemakingAnalyses:PreliminaryManufacturerImpactAnalysis47CompleteindustryprofileDevelopstrawmanGRIMDevelopinterviewguideConductinterviews&industry‐wide/subgroupanalysesAssessdirectemployment,manufacturingcapacity,andcumulativeburdenFinalizeMIAresultsforNOPRPhase2Phase3Phase1RulemakingAnalyses:PreliminaryManufacturerImpactAnalysisOverviewItem12‐1:DOEseekscommentontheappropriatemanufacturersubgroups,ifany,forcommercialprerinse sprayvalvesthatDOEshouldconsiderinamanufacturersubgroupanalysis.48RulemakingAnalysesMarket &TechnologyScreeningAnalysisEngineeringAnalysisMarkups AnalysisLife-Cycle Costand PaybackPeriod AnalysisPreliminaryManufacturerImpact AnalysisShipmentsAnalysisNationalImpactAnalysisFrameworkDocumentPreliminaryAnalysisNOPRFinalRuleEnergy andWater UseAnalysis49•Purpose:-Estimateactualuserpurchasepricesfrommanufacturersellingpricesofbaselineandhigher‐efficiencyequipmentdesigns•Method:-Identifydistributionchannelsandestimateshareofeachchannelintheaggregatesalesvolume-EstimatemarkupvaluesforeachlevelintheidentifieddistributionchannelsRulemakingAnalyses:MarkupsAnalysis50RulemakingAnalyses:MarkupsAnalysisIdentifiedDistributionChannels•ManufacturerFinalCustomer•ManufacturerAuthorizedDistributorFinalCustomer•ManufacturerRetailMerchantFinalCustomerItem6‐1:DOEseekscommentonthedistributionchannelsandtheshareofindustryshipmentsforeachdistributionchannelastheyapplytotherangeofcommercialprerinse sprayvalvesthatarecoveredbythispotentialrule.51•Baseline,Incremental,andOverallMarkups-BaselinemarkupsarecostmultipliersthatconverttheMSPofequipmentatthebaselineefficiencyleveltocustomerpurchaseprice-Incrementalmarkupsarecostmultipliersthatconverttheincrementalincrease/changeinMSPforequipmentateachhigher‐efficiencylevel(comparedtotheMSPatbaselineefficiencylevel)tocorrespondingincrementalincreases/changesinthecustomerpurchaseprice-Overallmarkupsincludetheweighted‐averagedistributionchannelmarkups,basedondistributionchannelmarketshares,andsalestaxRulemakingAnalyses:MarkupsAnalysis52RulemakingAnalysesMarket &TechnologyScreeningAnalysisEngineeringAnalysisMarkups AnalysisLife-Cycle Costand PaybackPeriod AnalysisPreliminaryManufacturerImpact AnalysisShipmentsAnalysisNationalImpactAnalysisFrameworkDocumentPreliminaryAnalysisNOPRFinalRuleEnergy andWater UseAnalysis53•Purpose:-Assesstheannualenergyandwateruseforallefficiencylevels,forallequipmentclasses-Providethebasisforunitenergyandwatercosts,whichareusedinthelife‐cyclecostanalysis•Method:-Wastewaterdischargewillbeassumedtobe100%ofwateruse-Energyusewillbeestimatedbycalculatingtheenergyrequiredtoraisethesupplywatertemperature(byregion)totheend‐usetemperature,takingintoaccounttheheatingefficiencyofrepresentativewaterheatingequipment-DailydatawillbeannualizedbytakingintoaccountthenumberofoperatingdaysperyearbyequipmentclassRulemakingAnalyses:EnergyandWaterUseAnalysis54RulemakingAnalyses:EnergyandWaterUseAnalysisItem7‐1:DOErequestsinputonoperationalpatternsofcommercialprerinse sprayvalvesfordifferentequipmentclassesandapplicationsthatmayimpactwateruse.Item7‐2:DOEseeksrecommendationsonsourcesofdataforregionalpotablewatersupplytemperaturesandtypicaloperationalwatertemperaturesusedincommercialprerinse sprayvalvesfordifferentapplicationsandequipmentclasses.Item7‐3:DOEseekscommentsontheinclusionofassociatedreductioninwastewaterdischargeasaresultoflowerflowrateforprerinse sprayvalves.55RulemakingAnalysesMarket &TechnologyScreeningAnalysisEngineeringAnalysisMarkups AnalysisLife-Cycle Costand PaybackPeriod AnalysisPreliminaryManufacturerImpact AnalysisShipmentsAnalysisNationalImpactAnalysisFrameworkDocumentPreliminaryAnalysisNOPRFinalRuleEnergy andWater UseAnalysis56•Purpose:-Assesseconomicimpactsofdifferentefficiencylevelsonthecustomersofcommercialprerinse sprayvalves•Method:-ResultsareexpressedintermsofLCCsavings(LCCatbaselineefficiencylevelcomparedtoLCCathigherefficiencylevel)-PBP,expressedinnumberofyears,iscalculatedbydividingtheincrementalequipmentfirstcostatahigher‐efficiencylevelbythecorrespondingannualizedoperatingcostsavingsRulemakingAnalyses:LCCandPBPAnalysis57RulemakingAnalyses:LCCandPBPAnalysisLCCComponent Calculation MethodologyEquipmentPurchasePriceMark up MSPbytheappropriatedistributionchannelsandmarkupvaluesInstallationCostIncludeslaborandmaterialcoststoplacetheequipmentintoserviceMaintenance CostIncurredbythecustomerforpreventativemaintenanceoftheequipmentRepairCostRepairorreplacedamagedormalfunctioningcomponentsoftheequipmentEnergyandWaterCostPaidbythecustomerfortheenergyandwaterusedbyhotwater‐usingequipment•Energy– UseEnergyInformationAdministration’sAnnualEnergyOutlooktoestimateenergyprices•Water– UseAmericanWaterWorksAssociationWaterRateSurveytoestimatecurrentwaterandwastewaterprices58•OtherMajorParametersintheLCCandPBPAnalysis•DiscountRates-DOEwillderivediscountratesfordifferentcustomersbyestimatingtheweightedaveragecostofcapitalfordifferentcustomersandbusinesstypesthatownand/oroperatetheequipment•BaseCaseEfficiencyDistribution-BasecaseefficiencydistributionisthedistributionofthemarketshareofeachefficiencylevelforallequipmentclassesintheabsenceofanamendedDOEstandard-Ifmarketsharedataarenotavailablebyefficiencylevel,DOEmaydevelopbasecaseefficiencydistributionsbasedonavailablemodelsandinformationfromcommercialprerinse sprayvalvemanufacturersandexperts•EquipmentLifetime-TheaverageandtypicalrangeoftheequipmentlifetimewillbedeterminedbasedonliteratureandindustryinputsforeachequipmentclassRulemakingAnalyses:LCCandPBPAnalysis59•Approach:MonteCarloSimulations•TheLCCanalysisiscarriedoutusingMonteCarlosimulations•Foreachofalargenumberofsamples(e.g.,10,000),parametervaluesarechosenbasedontheprobabilityoftheiroccurrence;thesevaluesarethencombinedtocalculatetheLCCandPBPforthatparticularindividualsample•TheLCC,LCCsavings,andPBPareexpressedintheformofmeanormedianvalues•TheLCCresultsarealsopresentedintheformofestimatedpercentageofcustomersthatbenefitfrom,areadverselyaffectedby,and/orareunaffectedbyamendedstandardsRulemakingAnalyses:LCCandPBPAnalysis60RulemakingAnalyses:LCCandPBPAnalysisItem8‐3:DOEseekscommentonsourcesofdatafordeterminingmarginalwaterandwastewaterratesandmethodstobreakoutwaterandwastewaterratesacrossdifferentpricingsegments(suchasregionallyorbystate).Item8‐4:DOEseeksdatasourcesandmethodstodeterminefuturetrendsinwaterandwastewaterrateescalations.Item8‐5:DOEinvitescommentonwhetherrepaircostsmaychangeformore‐efficientcommercialprerinsesprayvalves.Item8‐6:DOEinvitescommentonwhethercommercialprerinsesprayvalvesaretypicallyreplaceduponfailureorrepaired.Item8‐7:DOEseekscommentonappropriatecommercialprerinsesprayvalvelifetimesfortheequipmentunderconsideration,aswellasdataregardingcorrelationbetweenhoursofuseandcommercialprerinsesprayvalvelifetime.61RulemakingAnalysesMarket &TechnologyScreeningAnalysisEngineeringAnalysisMarkups AnalysisLife-Cycle Costand PaybackPeriod AnalysisPreliminaryManufacturerImpact AnalysisShipmentsAnalysisNationalImpactAnalysisFrameworkDocumentPreliminaryAnalysisNOPRFinalRuleEnergy andWater UseAnalysis62•Purpose:-Projectfutureshipmentsbyequipmentclass•Method:-DOEtypicallyprojectsshipmentsfora30‐yearperiodbeginningwiththeexpectedcompliancedateofthestandard-DOEintendstocollecthistoricalshipmentdataforcommercialprerinse sprayvalvesfromtradeorganizationsurveys-Futureshipmentswillbecalculatedbasedonthehistoricalshipmentsdata,retirementratesofequipment,andtheEIA’sAEOforecastofnewcommercialconstruction-DOEmayusedifferentshipmentsprojectionsinthestandardscaseandbasecasescenariosdependingontheinformationavailableRulemakingAnalyses:ShipmentsAnalysis63RulemakingAnalyses:ShipmentsAnalysisItem9‐1:DOEseekscommentonanappropriateshipmentsprojectionmethodology,includingtheselectionofappropriateeconomicdrivers.Item9‐2:DOErequestshistoricalshipmentsdatafortheequipmentdiscussed,includingshipmentsfordifferingequipmentflowrates.Item9‐3:DOEseekscommentonhowanenergyconservationstandardforcommercialprerinse sprayvalvesmightimpactshipmentsoftheequipment.64RulemakingAnalysesMarket &TechnologyScreeningAnalysisEngineeringAnalysisMarkups AnalysisLife-Cycle Costand PaybackPeriod AnalysisPreliminaryManufacturerImpact AnalysisShipmentsAnalysisNationalImpactAnalysisFrameworkDocumentPreliminaryAnalysisNOPRFinalRuleEnergy andWater UseAnalysis65RulemakingAnalyses:NationalImpactAnalysis•Purpose:–Determinetheprojectednationalimpactsofanamendedstandard,intheformofNES,nationalwatersavingsandNPV•Method:–Developannualseriesofnationalenergy,waterandeconomicimpacts•UseLCCoutputstoprovideinputaboutinstalledcosts,energyuse,andwateruseperunit•Usetheshipmentsmodeltoestimateannualshipmentsandstock–Aggregatethecosts,energyuse,andwateruseforallyearsintheanalysisperiod–ReportNESinprimaryandfull‐fuel‐cycle(FFC)savings,NPVinbillionsofdollars,andnationalwaterandwastewatersavingsinbillionsofgallons–Accountforthetime‐valueofmoneythoughdefineddiscountrates66RulemakingAnalyses:NationalImpactAnalysis•InputsforcalculatingNESandNationalWaterSavings:-Annualenergyandwateruseateachefficiencylevelforallequipmentclasses-Projectedshipments-Equipmentstock(basedonhistoricalandprojectedshipments)-Site‐to‐sourceconversionfactors:Multipliersusedtoconvertenergyusedatthesitetoenergyproducedatthesource•InputsforcalculatingNPV:-Installedandoperatingcostsofallequipmentforeachyearoftheanalysisperiod-Discountrates(3percentand7percent)67RulemakingAnalyses:NationalImpactAnalysisItem10‐1:DOEseekscommentonhowtheefficiencyofcommercialprerinse sprayvalveswouldbelikelytochangeinthefutureintheabsenceofstandards.Item10‐2:DOEseekscommentonthelikelihoodofincreasedcommercialprerinse sprayvalveusageasadirectresultofimprovedequipmentefficiency.68RulemakingAnalysesFrameworkDocumentPreliminaryAnalysisNOPRFinalRuleManufacturerImpactAnalysisCustomerSubgroupAnalysisRevisePreliminaryAnalysisEmissionsAnalysis andMonetizationRegulatoryImpactAnalysisEngineeringAnalysisLife-CycleCost &PaybackPeriodAnalysisNationalImpactAnalysisEmploymentImpactAnalysisUtilityImpactAnalysisNOPRAnalyses69•Purpose:–Analyzetheeconomicimpactsofstandardsoncustomersubgroupswhomaybedisproportionatelyimpactedcomparedwiththegeneraluserpopulation•Examplesincludecustomerswhouseequipmentlessfrequently,paylowerutilityrates,and/orhavehigherdiscountratesthanthetypicalcustomer.•Method:–ChangeparameterswithintheLCCmodeltomodelthedifferencesbetweenidentifiedsubgroupsrelativetothegeneralpopulation–Thesubgroupanalysisresultswillbecomparedtothenationalaverageresults(fromtheLCCanalysis)todeterminetheimpactofstandardsontheidentifiedsubgroupsRulemakingAnalyses:CustomerSubgroupAnalysisItem11‐1:DOEseekscommentonwhat,ifany,usersubgroupsshouldbeconsideredinevaluatingpotentialstandardsforcommercialprerinse sprayvalves.70RulemakingAnalysesFrameworkDocumentPreliminaryAnalysisNOPRFinalRuleManufacturerImpactAnalysisCustomerSubgroupAnalysisRevisePreliminaryAnalysisEmissionsAnalysis andMonetizationRegulatoryImpactAnalysisEngineeringAnalysisLife-CycleCost &PaybackPeriodAnalysisNationalImpactAnalysisEmploymentImpactAnalysisUtilityImpactAnalysisNOPRAnalyses71RulemakingAnalyses:UtilityImpactAnalysis•Purpose:–Assesstheoverallimpactsondomesticenergysuppliesthatwouldresultfromtheimpositionofstandards•Method:–DOEplanstousefactorsderivedfromNEMS‐BT(avariantoftheNEMS(NationalEnergyModelingSystem)developedandusedbyDOE/EIAfortheirAEOreport)asthebasisoftheutilityimpactanalysis–Outputsoftheutilityimpactanalysisincludeprojectionsofenergysalesandprices,generation,andcapacityinthebaseandstandardscasesItem13‐1:DOEseekscommentfrominterestedpartiesaboutitsproposeduseofNEMS‐BTtoconducttheutilityimpactanalysis.Item13‐2:DOEseekscommentandinformationonpotentialmethodsanddatasourcesthatcanbeusedtoassesstheimpactsonwaterandwastewaterutilitiesasaresultofenergyconservationstandardsforcommercialprerinse sprayvalves.72RulemakingAnalysesFrameworkDocumentPreliminaryAnalysisNOPRFinalRuleManufacturerImpactAnalysisCustomerSubgroupAnalysisRevisePreliminaryAnalysisEmissionsAnalysis andMonetizationRegulatoryImpactAnalysisEngineeringAnalysisLife-CycleCost &PaybackPeriodAnalysisNationalImpactAnalysisEmploymentImpactAnalysisUtilityImpactAnalysisNOPRAnalyses73RulemakingAnalyses:EmploymentImpactAnalysis•Purpose:–Assesstheoverallimpactonnationalemploymentfromtheimpositionofefficiencystandardsatdifferinglevels–Includesonlyindirectemploymentimpacts•DirectemploymentimpactsareestimatedintheMIA•Indirectemploymentimpactsresultfromshiftingcustomerexpendituresamonggoodsandservices(“substitutioneffect”)andchangingequipmentandenergycosts(“incomeeffect”)•Method:–DOEintendstousetheImSET(ImpactofSectorEnergyTechnologies)modelfortheevaluationofindirectemploymentimpactsItem14‐1:DOEseekscommentsaboutitssuggestedapproachforassessingnationalindirectemploymentimpacts.74RulemakingAnalysesFrameworkDocumentPreliminaryAnalysisNOPRFinalRuleManufacturerImpactAnalysisCustomerSubgroupAnalysisRevisePreliminaryAnalysisEmissionsAnalysis andMonetizationRegulatoryImpactAnalysisEngineeringAnalysisLife-CycleCost &PaybackPeriodAnalysisNationalImpactAnalysisEmploymentImpactAnalysisUtilityImpactAnalysisNOPRAnalyses75RulemakingAnalysis:EmissionsAnalysis•Purpose:–Estimateenvironmentalimpactsfrompotentialenergyconservationstandardsforcommercialprerinse sprayvalvesincludingchangesinFFCemissions•Method:–DOEwillbasetheemissionfactorsonNEMS,supplementedbydatafromothersources;thefollowingemissionsareassessed:•Carbondioxide(CO2)•Sulfurdioxide(SO2)–SO2emissionsfromaffectedelectricgeneratingunitsaresubjecttonationwideandregionalemissionscapandtradingprograms•Nitrogenoxides(NOx)–CleanAirInterstateRule(CAIR)permanentlycapsNOxemissionsin28easternStatesandWashington,D.C.•Methane(CH4)•Nitrousoxide(N2O)•Mercury(Hg)76Item15‐1:DOEseekscommentaboutitsapproachtoconducttheemissionsanalysisfortheequipmentthatwouldbecoveredunderthisproposedrulemaking.Item15‐2:DOEseekscommentandinformationonpotentialmethodsanddatasourcesthatcanbeusedtoassessemissionsreductionsasaresultofwatersavings.RulemakingAnalyses:EmissionsAnalysis77RulemakingAnalyses:MonetizationofReducedEmissions•DOEintendstousethemostcurrentSocialCostofCarbon(SCC)valuesdevelopedbyinteragencyreviews–SCCisintendedtobeamonetarymeasureoftheincrementaldamageresultingfromgreenhousegasemissions,including,butnotlimitedto,agriculturalproductivityloss,humanhealtheffects,propertydamagefromrisingsealevel,andchangesintheecosystem•DOEwillalsoestimatethepotentialmonetarybenefitofreducedNOxemissionsresultingfromtheconsideredstandardlevelsItem16‐1:DOErequestscommentabouttheapproachitplanstouseforestimatingmonetarybenefitsassociatedwithemissionsreductions.78RulemakingAnalysesFrameworkDocumentPreliminaryAnalysisNOPRFinalRuleManufacturerImpactAnalysisCustomerSubgroupAnalysisRevisePreliminaryAnalysisEmissionsAnalysis andMonetizationRegulatoryImpactAnalysisEngineeringAnalysisLife-CycleCost &PaybackPeriodAnalysisNationalImpactAnalysisEmploymentImpactAnalysisUtilityImpactAnalysisNOPRAnalyses79RulemakingAnalysis:RegulatoryImpactAnalysis•Purpose:–Explorethepotentialsavingsfornon‐regulatoryalternativestoneworamendedenergyefficiencystandards•Method:–Determinetheenergyandmonetarysavingsimpactofanynon‐regulatoryalternativetoaneworamendedstandard–Someexamplesinclude:–TaxCredits–RebatePrograms–BulkPurchasePrograms–WaterSense80PublicMeetingTopics1HousekeepingItems2RulemakingProcessOverview3Authority&Definitions4TestProcedure&TestMetrics5RulemakingAnalyses6ClosingRemarks81HowtoSubmitWrittenCommentsInallcorrespondence,pleaserefertotheCommercialPrerinseSprayValverulemakingby:– FrameworkDocumentforCommercialPrerinseSprayValves– DocketNumberEERE‐2014‐BT‐STD‐0027– RegulationIdentificationNumber(RIN)1904‐AD31Email:SprayValves2014STD0027@ee.doe.govorwww.regulations.govPostal:Courier:Ms.BrendaEdwardsMs.BrendaEdwardsU.S.DepartmentofEnergyU.S.DepartmentofEnergyBuildingTechnologiesProgram,BuildingTechnologiesProgramMailstopEE‐2J950L’EnfantPlazaSW,Suite6001000IndependenceAvenue,SWWashington,DC20024Washington,DC20585‐0121Tel:202586‐2945CommentperiodclosesOctober27,2014ClosingRemarks