BUILDING TECHNOLOGIES PROGRAM

June 3-4, 2015

Building Technologies Office

Energy Efficiency & Renewable Energy

Department of Energy

ASRAC FAN WORKING GROUP

Meetings 5 and 6
2

Topics

1. May 1st NODA results

2. Revised Results for Unducted Fans
3

Scope of the May 1st NODA 

• Scope of the analysis presented in the May 1st NODA

– Fan types included in analysis

• Axial Fans

• Centrifugal Fans 

• Inline and Mixed Flow Fans

• Radial Fans 

• Power Roof Ventilator Fans

– Fan types NOT included in analysis

• Safety Fans

• Cross Flow Fans

• Circulating Fans

• Induced Flow fans

• Air Curtains

– Scope limit 

• The fan has a maximum shaft input power of at least 1 horsepower (0.746 kW) but not 

greater than 200 horsepower (149 kW) at its maximum speed
4

Fan Selection Data

• Air Movement and 

Control Association 

(AMCA). 2012 Detailed 

Confidential Fan Sales 

Data. November 2014. 

(17 manufacturers). 

• Includes performance 

and selection information 

for over 70,000 fan 

selections representing 

100,000 units sold.

• Did not include speed 

data.

Panel
5

Efficiency levels analyzed

EL Efficiency Target Non-compliant fan selections 

EL0 0.54 0%

EL1 0.58 5%

EL2 0.62 8%

EL3 0.66 11%

EL4 0.70 15%

EL5 0.74 21%

EL6 0.86 47%

Note: A target of 0.62 was used to present results for ducted fans in AMCA’s DOE Fan efficiency 

Proposal presented at the 59th AMCA Annual Meeting, January 24, 2015

http://www.amca.org/adovacy/documents/DOEFanEfficiencyProposal-AMCAAnnualMeetingRedux1-24-15.pdf
6

Engineering Analysis Overview

Select 

efficiency levels 

to analyze

Model MPC Incorporate 

Redesign Costs

• The purpose of the Engineering Analysis is to characterize the relationship between 

manufacturer production costs and more efficient fan designs.

• Baseline – represents least 

efficient fans (achievable 

by most AMCA database 

models)

• Max Tech – represents 

most efficient models 

(retains some fans of each 

type from AMCA DB)

• Intermediate – selected 

for analysis between 

baseline and max tech

• Select representative 

models - span the range of 

class, size, efficiency, 

manufacturers, etc.

• Generate Bills of Materials 

(BOM) - Physical and virtual 

teardowns

• Estimate MPC – using cost 

model

• Estimate number of models 

redesigned at each efficiency 

level

• Estimate per model redesign 

cost

• Calculate total redesign cost 

at each efficiency level

• Include redesign costs in cost 

–efficiency relationship
7

Engineering Analysis: Equipment Subgroups

Equipment groups divided into subgroups based on impeller type or presence of guide vanes Fan Group Subgroup Database Category

Centrifugal Housed

Airfoil Airfoil

Backward Curved Backward Bladed Backward Inclined

Forward Curved Forward Curved

Centrifugal Unhoused

Airfoil

Backward Curved Centrifugal Unhoused

Backward Inclined

Inline and Mixed Flow

Mixed Flow - Airfoil Mixed Flow Mixed Flow - Single Thickness

Centrifugal Inline - Airfoil

Centrifugal Inline Centrifugal Inline - Backward Curved

Centrifugal Inline - Backward Inclined

Centrifugal Inline - Forward Curved

Radial

Open Radial

Radial Radial Tip

Shrouded Radial

Backplate Radial

Power Roof Ventilator

Centrifugal PRV - Airfoil

Centrifugal PRV Centrifugal PRV - Backward Curved

Centrifugal PRV - Backward Inclined

Centrifugal PRV - Forward Curved

Axial PRV - Panel/Propeller Axial PRV

Axial PRV - Tubeaxial

Axial Housed Vane Axial Vane Axial

Tube Axial Tube Axial

Axial Unhoused Panel Panel/Propeller Panel/Propeller
8

Engineering Analysis: MPC

• DOE conducted teardowns to generate 

bills of materials (BOM).

– Physical Teardowns conducted on 5 units from 

4/26 subgroups

– Virtual Teardowns conducted on remaining 

subgroups

• DOE used BOMs as inputs to a cost model 

that calculates MPC

Raw Materials

Finished 

Materials

Purchased 

Parts

Teardowns

Fabrication 

Processes

Bill of Materials

Assembly 

Processes

Manufacturing 

Cost
9

Engineering Analysis: MPC (con.)

Example of MPC results:

Raw Material Costs $222.34 Direct cost of raw materials

Purchased Parts Material Costs $139.87 Direct cost of purchased parts

Assembly Labor Cost $109.54 Component and unit assembly on manufacturing line

Fabrication Labor Cost $299.14 Conversion of raw material into parts ready for assembly

Supervision Cost $21.25 Fraction of indirect labor that is paid a higher wage

Indirect Labor Cost $141.88 Fraction of overall labor not associated directly with product 

manufacturing (e.g. forklift drivers, quality control)

Equipment Depreciation Cost $38.55 Straight line depreciation over expected equipment life

Tooling Depreciation Cost $3.56 Cost is allocated on a per-use basis or obsolescence, 

whichever is shorter

Building Depreciation Cost $25.40 Straight line depreciation over expected building life

Indirect Process Costs $35.24 Consumables including welding rods, lubrication on dies, etc., 

as well as paint and related processes

Maintenance Costs $21.48 Based on installed equipment and tooling investment

Utility Costs $8.35 A fixed fraction of all material costs meant to cover electricity 

and other utility costs

Property Tax $9.60 A fixed fraction based on total unit costs

Insurance $8.61 A fixed fraction based on total unit costs

Total $1,084.80
10

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

0 10 20 30 40 50

MPC [$]

Diameter [in]

MPC as a Function of Diameter

MPC Fit, Centrifugal Housed Airfoil

Teardown MPC, Centrifugal Housed Airfoil

Engineering Analysis: MPC vs. Diameter

MMMMMM = AA × DD + DDBB

AA = 18.92

BB = 2.10

DOE used teardown results to 

characterize the relationship 

between MPC and 

impeller/blade diameter (D).
11

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

0 10 20 30 40 50

MPC [$]

Diameter [in]

MPC Scaling as a Function of Diameter

MPC Fit, Centrifugal Housed Airfoil

MPC Fit Adjusted for Centrifugal Unhoused Backward Inclined

Teardown MPC, Centrifugal Housed Airfoil

Teardown MPC, Centrifugal Unhoused Backward Inclined

Engineering Analysis: MPC vs. Diameter

DOE established a multiplier 

(M) to adjust MPC curve for 

each subgroup

MMMMMM = MM × (18.92 × DD + DD2.10)

Centrifugal Unhoused – Backward 

Inclined Example

MPC = 1.00 * (18.92*D + D ^ 2.10) Eq.1

MPC = 0.60 * (18.92*D + D ^ 2.10)

Diameter of CU-BI fan 20.5”

Estimated MPC of CU-BI 

fan

$581.60 (x)

MPC @ 20.5” from Eq. 1 $964.09 (y)

Multiplier = x/y 0.603
12

Engineering Analysis: MPC Results

• Calculated MPC individually for each subgroup

• Not all subgroups were differentiated in the AMCA database, so DOE 

averaged subgroup MPCs to be consistent with fan categories available in 

AMCA database

– E.g., The AMCA database did not differentiate airfoil, BI and BC unhoused 

centrifugal fans, so DOE averaged its MPC results for those subgroups to get a 

representative MPC for unhoused centrifugal fans.

• Weighted fan group MPCs based on distribution of subgroup 

shipments in AMCA database at each energy use level
13

Engineering Analysis: MPC Results (con.)

EL 0 1 2 3 4 5 6

Centrifugal Housed

MWEIGHTED 0.81 0.84 0.87 0.89 0.90 0.94 0.96

Diameter [in] 10 20 30 10 20 30 10 20 30 10 20 30 10 20 30 10 20 30 10 20 30

Example MPC [$] 255 747 1,495 265 775 1,550 274 803 1,606 282 824 1,649 284 830 1,660 298 871 1,742 305 891 1,783

Centrifugal Unhoused

MWEIGHTED 0.65 0.65 0.65 0.65 0.65 0.65 0.65

Diameter [in] 10 20 30 10 20 30 10 20 30 10 20 30 10 20 30 10 20 30 10 20 30

Example MPC [$] 206 602 1,205 206 602 1,205 206 602 1,205 206 602 1,205 206 602 1,205 206 602 1,205 206 602 1,205

Inline and Mixed Flow

MWEIGHTED 0.89 0.89 0.89 0.90 0.91 0.95 0.98

Diameter [in] 10 20 30 10 20 30 10 20 30 10 20 30 10 20 30 10 20 30 10 20 30

Example MPC [$] 282 824 1,650 283 828 1,656 283 828 1,657 285 833 1,666 288 841 1,684 299 875 1,752 310 907 1,815

Radial

MWEIGHTED 0.90 0.90 0.90 0.90 0.90 0.90 0.90

Diameter [in] 10 20 30 10 20 30 10 20 30 10 20 30 10 20 30 10 20 30 10 20 30

Example MPC [$] 285 835 1,670 285 835 1,670 285 835 1,670 285 835 1,670 285 835 1,670 285 835 1,670 285 835 1,670

Power Roof Ventilator

MWEIGHTED 0.57 0.57 0.57 0.58 0.58 0.58 0.59

Diameter [in] 10 20 30 10 20 30 10 20 30 10 20 30 10 20 30 10 20 30 10 20 30

Example MPC [$] 179 523 1,047 180 527 1,054 182 531 1,063 183 535 1,070 184 537 1,074 184 538 1,077 185 542 1,084

Axial Housed

MWEIGHTED 1.00 1.00 1.01 1.02 1.02 1.02 1.02

Diameter [in] 10 20 30 10 20 30 10 20 30 10 20 30 10 20 30 10 20 30 10 20 30

Example MPC [$] 316 925 1,851 317 929 1,858 321 938 1,876 322 940 1,882 322 942 1,884 322 942 1,886 323 944 1,888

Axial Unhoused Panel

MWEIGHTED 0.20 0.20 0.20 0.20 0.20 0.20 0.20

Diameter [in] 10 20 30 10 20 30 10 20 30 10 20 30 10 20 30 10 20 30 10 20 30

Example MPC [$] 62 181 361 62 181 361 62 181 361 62 181 361 62 181 361 62 181 361 62 181 361
14

Manufacturer Markup

• Applied to manufacturer production cost (MPC) to arrive at manufacturer 

selling price (MSP) in the base case

– Base case manufacturer markup in NODA = 1.45

• Incorporated conversion cost recovery markups at efficiency levels above the 

baseline in the standards case
15

Engineering Analysis: Outputs

• The following three results were passed on to the downstream analyses:

– MPC by equipment group and efficiency level

– Manufacturer Markup

– Total industry conversion costs by equipment group and efficiency level

• The conversion cost recovery markup was calculated as part of the LCC

– Same approach as used in pumps
16

Redesign Costs

• DOE recognizes that fan efficiency is improved predominantly through 

aerodynamic redesign

• Aerodynamic redesign costs do not necessarily impact MPC, rather they 

require investment in R&D, testing, and other conversion costs

• DOE developed a “cost recovery markup” methodology to account for 

aerodynamic redesign costs in the cost-efficiency relationships used in its 

analysis

• The cost recovery markup is

– based on the total cost of aerodynamic redesigns to the industry required to 

meet a given efficiency level

– applied to MPC to calculate the manufacturer selling price that would enable 

manufacturers to recover redesign costs
17

Manufacturer Selling Price (MSP)

DOE estimated product and capital conversion costs to determine a markup that would 

enable manufacturers to recover these costs:

*Product and capital conversion costs were modeled as the same regardless of size

Product Conversion Costs

• Modeled as the same for each 

subgroup

• 12 months total redesign time

• 6 months testing time

• Added costs for non-DOE 

certifications and marketing

• Labor rates from Bureau of Labor 

Statistics

Capital Conversion Costs

• Modeled as different for each 

subgroup

• Assumes investments in 

fabrication and tooling

MMMMMM = MMMMMMMMMMMMMMMMMMMMMMMM MMMMMMMMMMMM × CCCC CC CCCCCC CCCCCC RR RR MMMMMMMMMMMM × MMMM
18

Industry Conversion Costs

DOE estimated the total industry conversion costs to be recovered for each 

equipment class at each efficiency level 

• DOE estimated the number of individual models (from the AMCA database) 

that would be redesigned at each efficiency level

– Unique manufacturer, model number, and size combinations constituted unique models

– All fans redesigned at the efficiency level being analyzed would be redesigned to that 

efficiency level

• DOE estimated the per model redesign cost

– Redesigned models are distributed in the subgroups within each class in the proportions of 

the subgroups that exist at that efficiency level today 

– Example: If 100 housed axial models were evaluated as requiring redesign at EL 5. If, today, 

30% of the housed axial fans between EL 5 and EL 6 were vane axial and 70% were tube axial, 

then DOE assumed that 30 fans would be aerodynamically redesigned to be vane axial and 70 

to be tube axial.
19

Conversion Cost Results

Equipment Class Total Conversion Cost

EL 0 EL 1 EL 2 EL 3 EL 4 EL 5 El 6

Axial Housed $0 $32,871,798 $41,217,988 $47,938,597 $57,084,416 $70,533,339 $123,787,329 

Axial Unhoused 

Panel $0 $3,887,546 $4,616,461 $5,102,404 $7,046,177 $8,504,007 $13,849,383 

Centrifugal Housed $0 $20,734,126 $31,178,328 $37,265,951 $53,914,759 $81,961,012 $246,658,565 

Centrifugal 

Unhoused $0 $4,086,444 $7,005,332 $8,172,887 $10,507,998 $16,345,774 $50,788,656 

Inline and Mixed 

Flow $0 $40,280,658 $47,285,990 $57,484,929 $70,008,412 $95,245,164 $210,463,933 

Radial $0 $18,792,235 $24,077,551 $40,520,756 $58,138,476 $85,152,313 $213,174,412 

Power Roof/Wall 

Ventilators $0 $37,232,625 $42,955,703 $56,380,873 $83,529,410 $103,261,526 $185,714,216 
20

Manufacturer Impact Analysis: Overview

• An MIA was performed on manufacturers of equipment covered in the NODA.

• Two markup scenarios were modeled to capture the range of potential outcomes 

manufacturers may experience following the implementation of energy conservation 

standards on commercial and industrial fans.

• Conversion Cost Pass Through Markup Scenario (Upper Bound)

- In this scenario, manufacturers are able to increase their prices of remodeled 

commercial and industrial fans to fully recover the conversion costs associated with 

remodeling, testing, and certifying those fans.

- This markup scenario represents the upper bound of profitability for manufacturers 

since they are able to fully recover all of their conversion costs.

• Flat Markup Scenario (Lower Bound)

- In this scenario, manufacturers maintain the same manufacturer markup in the base 

case as they do in the standards cases.

- This markup scenario represents the lower bound of profitability for manufacturers 

since they are not able to recover any of their conversion costs.
21

Manufacturer Impact Analysis: Results (Table)

• INPV Results for the Conversion Cost Pass Through Markup Scenario (Upper Bound)

* Numbers in parentheses represent negative values.

• INPV Results for the Flat Markup Scenario (Lower Bound)

EL 0 EL 1 EL 2 EL 3 EL 4 EL 5 EL 6

INPV (2014$ MM) 719.0 671.5 659.7 643.3 616.8 580.2 393.5 

Change in INPV

(2014$ MM) - (47.5) (59.3) (75.7) (102.2) (138.7) (325.4)

Change in INPV (%) - -6.6% -8.2% -10.5% -14.2% -19.3% -45.3%

EL 0 EL 1 EL 2 EL 3 EL 4 EL 5 EL 6

INPV (2014$ MM) 719.0 612.5 585.6 548.8 489.7 408.0 3.3 

Change in INPV

(2014$ MM) - (106.5) (133.4) (170.1) (229.3) (311.0) (715.6)

Change in INPV (%) - -14.8% -18.5% -23.7% -31.9% -43.3% -99.5%
22

Manufacturer Impact Analysis: Results (Graph)

• Potential INPV impacts of standards on commercial and industrial fan manufacturers % Change in NPV 

-120%

-100%

-80%

-60%

-40%

-20%

0%

20%

EL 0 EL 1 EL 2 EL 3 EL 4 EL 5 EL 6

Flat Markup Constant Cost Pass Through Markup
23

Manufacturer Impact Analysis: Small Business

• There are approximately 93 small businesses that could be affected by potential 

commercial and industrial fan energy conservation standards. 35 of these small 

businesses are AMCA members.

• Based on preliminary market research, DOE has determined that the average small 

manufacturer typically offers fewer fan models, ships fewer units, and generates less 

revenue per model than an average large fan manufacturer. This could put small 

businesses at a disadvantage because any conversion costs they may incur would have 

to be spread over fewer units and smaller annual revenues.

• Small manufacturers may also be at a disadvantage regarding potential commercial and 

industrial fan energy conservation standards due to a lack of engineering resources and 

a lack of experience in designing higher efficiency equipment.

• DOE found in an analysis of its commercial and industrial fan product database that on 

average, a smaller percentage of small manufacturers’ product offerings meet each 

efficiency level compared to larger manufacturers.
24

Life-Cycle Cost Calculation Overview

• The life-cycle cost (LCC) is the sum of the total installed costs and lifetime operating 

costs.

– Total installation costs: Consumer price + Installation costs

– Lifetime Operating costs: Electricity costs + Repair & Maintenance costs 

• Inputs to the total installed costs calculation include:

– Manufacturer selling prices 

– Total Conversion Costs

– Distribution channel markups

• Inputs to the lifetime operating costs calculation include:

– Discount rates

– Electricity prices 

– Lifetime

– Annual energy consumption

• Results are expressed in terms of LCC difference between the no standards case 

(situation without standards) and each considered standards case. 
25

Life-Cycle Cost Calculation Overview

• In addition, DOE developed a sample of individual fan selections (i.e., a fan 

models and the operating flow and pressure values for which they were 

purchased) using fan sales data provided by AMCA

• By developing this sample, DOE was able to perform the LCC and PBP 

calculations for each fan selection to account for the variability in energy 

consumption associated with each fan selection

• The LCC calculations assumes that if a fan selection fails to meet a considered EL, 

it is replaced either by an existing compliant unit or by a redesign fan. 
26

Life-Cycle Cost Calculation Overview

• Criteria to qualify as a "substitute" a 

fan:

– Same fan category;

– Design flow within 20% 

– Design Total Pressure within 20%;

– Same diameter or up to one inch 

above (conservative)

• In order to be selected as a compliant 

substitute, the replacement fan further 

needs to be a compliant unit at the 

considered flow (FEI>=1)

• If a non compliant fan has more than 

one substitute, the fan closest to the in 

terms of Design Airflow, Design Total 

Pressure and Price is selected as a 

replacement fan.

LCC SAMPLE of fan 

selections

Is the Fan

FEI<1?

No Yes

The base case fan 

is replaced by an 

existing unit that 

meets or exceeds 

the considered EL

No Yes

MSP remains the same 

as in the base case

MSP is replaced by the 

MSP of the substitute 

unit

MSP is replaced by the 

MSP of the redesigned 

unit

The base case fan 

is replaced by a 

redesigned fan 

that exactly meets 

the considered EL

The consumer is 

not impacted by the 

considered standard 

and keeps the same 

fan as in the base 

case

Is there an 

existing fan 

“substitute”?

NO IMPACT RESELECTION REDESIGN
27

Total Installed Cost Calculation: MSP

• In the no standards case, DOE calculated the MSP of each fan in the LCC sample by 

applying equations from the engineering analysis:

MMMMMMnnnn_SSSSSS = MMMMCnnnn_SSSSSS × MMMM

– Where 

• MMMMCnnnn_SSSSSS: manufacturer production cost in the no standards case

• MMMMMMnnnn_SSSSSS: manufacturer selling price in the no standards case

• MMMM: Manufacturer markup

• nnnn_ SS : corresponds to the fan’s efficiency level in the no standards case

• If the fan is replaced by a existing fan (reselection), the fan has the price of the 

reselected fan
28

Manufacturer Selling Price

• If the fan is redesigned, the calculation of the MSP of the redesigned fan is performed 

in two steps and assumes manufacturers recover the total conversion costs over 30 

years of shipments. 

• Step 1: Calculation of the MSP for the redesigned fan (MPC increase only, no 

conversion costs) 

– All consumers with a non compliant fan purchase a redesigned fan with a higher MSP:

MMMMMMEEEE = MMMMMEEEE × MMMM

• Step 2: Adding the conversion costs to the MSP to ensure full cost recovery

– Calculation of the MSP for the redesigned fan (with conversion costs):

MMMMMMEEEE,rrrrrrrrrrrrrr rrrr = MMMMMMEEEE × MMMMCC,EEEE

MMMMMMEEEE,rrrrrrrrrrrrrr rrrr = MMMMMMEEEE + CCCCCCCCCC CCCCCC

• Where:

– MMMMCC,EEEE : Conversion Costs Markup

– CCCCCCCCCC CCCCCC : MSP increase due to conversion costs
29

Conversion Markups

• For each EL and fan category, calculation of the Conversion Cost Markup: 

– Calculation of the total annualized conversion costs:

TTTT CCCCCCCCCC CCCCCC = TTTT UU ×

DDMMMMMMMMMM

1− 1

(1+DDDDMMMMMMMMMM)30

×

SSSSSS LLLLLL_ss ssssssss

SSSSSS UUUU

• Where:

– TTTT CCCCCCCCCC CCCCCC: total annualized conversion costs for the LCC sample

– TTTT UU : Total conversion costs (US market)

– DDDDMM MMMM: Manufacturer discount rate

Conversion Cost Markup 

(100% recovery)

MUC,EL

Revenues from failing 

redesigned units 

(no cost recovery)

=

+

Total Annualized 

Conversion Costs 

(LCC Sample)

Revenues from failing 

redesigned units 

(no cost recovery)
30

Distribution Channel Markups

• DOE converts the MSPs into consumer prices by applying baseline and incremental 

distribution channel markups.

– Determination of the distribution channels (percentage of units sold)

– Estimate of the baseline and incremental markups for each party involved

Fan Category OEM → Distributor → End-user Distributor → Contractor → End-user Distributor → End-user

Axial Housed 47% 27% 26%

Axial Unhoused Panel 34% 57% 9%

Centrifugal Housed 32% 23% 45%

Centrifugal Unhoused 40% 6% 54%

Inline and Mixed Flow 8% 85% 7%

Radial 5% 3% 92%

PRV 5% 89% 6%

Weighted Average* 27% 43% 29%

Baseline Markup Incremental Markup

OEM 1.43 1.38

Distributor 1.39 1.23

Contractor 1.10 1.10

* May not add to 100% due to rounding; Based on Air Movement and Control Association International (2013) (AMCA, No. 19 at p. 34) 
31

Distribution Channel Markups

• Baseline and Incremental Markups

• Sources: 

– U.S. Census Bureau (2007). Economic Census Manufacturing Industry Series (NAICS 33 Series) 

– U.S. Census Bureau (2012). Annual Wholesale Trade Survey, Machinery, Equipment, and Supplies 

Merchant Wholesalers (NAICS 4238). 

– RSMeans Construction Publishers & Consultants. (2013), Electrical Cost Data, 36th Annual 

Edition. 2013. ed. J.H. Chiang, Kingston, MA.

– Sales Tax Clearinghouse, Inc. (last accessed on January 10, 2014), State sales tax rates along with 

combined average city and county rates

Fan Category Overall Baseline 

Markup*

Overall Incremental 

Markup*

Axial Housed 1.83 1.59

Axial Unhoused Panel 1.79 1.56

Centrifugal Housed 1.73 1.51

Centrifugal Unhoused 1.75 1.53

Inline and Mixed Flow 1.67 1.47

Radial 1.53 1.35

PRV 1.65 1.46

Weighted Average 1.73 1.51

* Includes 7% sales tax
32

Total Installed Cost Calculation

• In the no standards case, the price of each fan in the LCC sample is calculated as:

EEEE nnnn_SSSSSS = MMMMMMnnnn_SSSSSS × MMMMOOOO OO _BB

– Where 

• EEEE nnnn_SSSSSS: consumer price in the no standards case 

• MMMMMMnnnn_SSSSSS: MSP of the fan in the no standards case

• MMMMOOOO OO _BB : Overall baseline distribution channel markup

• If the fan is redesigned, the calculation of the price of the redesigned fan is 

performed by applying the baseline and the incremental markups:

– Where 

• EEEE EEEE,rrrrrrrrrrrrrr rrrr: Standard case consumer price at the considered EL

• MMMMMMEEEE,rrrrrrrrrrrrrr rrrr: MSP of the redesigned fan (includes the conversion costs)

• MMMMOOOO OO _BB : Overall baseline distribution channel markup

EEEE EEEE,rrrrrrrrrrrrrr rrrr = MMMMMMBB × MMMMOOOO OO BBBB BB + (MMMMMMEEEE,rrrrrrrrrrrrrr rrrr−MMMMMMBB ) × MMMMOOOO OO _IIII
33

Inputs to the Operating Cost Calculation

• Energy Use

– The annual unit energy consumption (UEC) in kWh/yr is calculated based on the 

following equation:

= [ QQii × PPii

ηη ,ii× 6343 ×ηηTT,ii

+ LLMM, ] × 0.746 =

BBBB ii

6343 ×ηηTT,ii

+ LLMM, ] × 0.746

– Where

• : Unit energy consumption (kWh/yr) at operating point i,

• : operating flow (cfm) at operating point i,

• : operating total pressure (in. wg.) at operating point i,

• ηη , : fan total efficiency at operating point i,

• ηη , : default transmission efficiency (%) at operating point i 

• LLMM, : default electric motor losses (hp) at operating point i;

• BBBB : fan shaft input power (hp) at operating point i;

• 6343: conversion factor to I-P units;

• 0.746: conversion factor to kWh/yr
34

Inputs to the Operating Cost Calculation

• Default Motor Characterization

– Motor Horsepower

• Sized using the fan shaft input power (BHP) and a 1.2 multiplier

– Motor pole configuration

• The AMCA fan database did not provide information regarding the operating 

speed of the fan. 

• Used a weighted average over the four pole configuration (900, 1200, 1800, 

and 3600 RPM) to assign an “weighted average efficiency” across poles

– Motor performance at part load

• Used default part load curved identical to the ones used in the commercial 

and industrial Pumps rulemaking analysis

• Default Transmission Characterization (belt-drive)

– Used for fan selections sold as belt driven fan (based on AMCA 203)
35

Inputs to the Operating Cost Calculation

• Operating hours

– Operating hours depend on the sector and application in which the fan is 

used

• Derived estimates of shipment by sector (industrial vs. commercial)

• Derived estimates of shipments by applications (Clean Air 

Ventilation, Process Air, Combustion, Drying, Exhaust, Process 

Heating/Cooling, Other Applications)

• Established annual operating hour distributions for each sectorapplication

• Operating flow and pressure

– Assumed a single operating point equal to the “design point” as listed in 

the AMCA database of fan selections
36

Inputs to the Operating Cost Calculation

• Distribution by sector

Horsepower Bin Axial Housed & Radial All Other Fan Categories

Bin HP IND COM IND COM

P0 0.1-1 100% 0% 0% 100%

P1 1-1.8 100% 0% 0% 100%

P2 1.8-3.25 100% 0% 2% 98%

P3 3.25-5.85 100% 0% 2% 98%

P4 5.85-10.54 100% 0% 2% 98%

P5 10.54-18.98 100% 0% 2% 98%

P6 18.98-34.2 100% 0% 2% 98%

P7 34.2-61.62 100% 0% 61% 39%

P8 61.62-111.01 100% 0% 61% 39%

P9 111.01-200 100% 0% 73% 27%

Source: IHS Technology, Fans and Blowers Market Research Report, World (2014); Easton Consultants, I. (2000), 

Variable Frequency Drive. Retrieved February 9, 2011, from http://neea.org/research/reports/E00-054.pdf
37

Inputs to the Operating Cost Calculation

Fan Group Clean Air Ventilation Exhaust

Axial Unhoused Panel 61% 39%

Centrifugal Housed 100% 0%

Centrifugal Unhoused 100% 0%

Inline and Mixed Flow 100% 0%

Power Roof Ventilator n/a 100%

Average Commercial 

Sector 6,731 6,219

• Distribution by application and operating hours

– Commercial Sector:

• Average: 

• Distributions:

Bin Min Max

1 876 1,752 

2 1,752 2,628 

3 2,628 3,504 

4 3,504 4,380 

5 4,380 5,256 

6 5,256 6,132 

7 6,132 7,008 

8 7,008 7,884 

9 7,884 8,759 

10 8,760 8,760 

Sources: IHS Technology, Fans and Blowers Market Research Report, World (2014); 

U.S. DOE EnergyPlus Energy Simulation Software (August 2014).

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

1 2 3 4 5 6 7 8 9 10

Operating Hours Distribution

Commercial - Clean Air Ventilation Commercial - Exhaust
38

Inputs to the Operating Cost Calculation

Fan Group Clean Air 

Ventilation Process Air Combustion Drying Exhaust

Process 

Heating/

Cooling

Other 

Applications

Axial Housed 51.0% 0.0% 6.0% 3.0% 8.0% 30.0% 2.0%

Axial 

Unhoused

Panel

37.0% 22.0% 6.0% n/a n/a 33.0% 2.0%

Centrifugal 

Housed 42.0% 17.0% 5.0% 3.0% 7.0% 25.0% 1.0%

Centrifugal 

Unhoused 51.0% 31.0% 0.0% n/a 0.0% n/a 18.0%

Inline and 

Mixed Flow 66.0% n/a 8.0% n/a 11.0% n/a 15.0%

Radial n/a 32.0% 9.0% n/a 40.5% n/a 18.5%

Power Roof 

Ventilator 72.0% n/a n/a n/a 11.5% n/a 16.5%

Av. Indus. 6,276 5,759 6,827 6,701 5,999 6,738 6,079

• Distribution by Application

– Industrial Sector

Sources: *Database of motor nameplate and field measurement data compiled by the Washington State University Extension Energy Program (WSU) and Applied 

Proactive Technologies (APT) under contract with the New York State Energy Research and Development Authority (NYSERDA). 2011; Strategic Energy Group 

(January, 2008), Northwest Industrial Motor Database Summary. from Regional Technical Forum. Retrieved March 5, 2013 from

http://rtf.nwcouncil.org/subcommittees/osumotor/Default.htm ;

IHS Technology, Fans and Blowers Market Research Report, World (2014). 
39

Energy Use Analysis

• Average annual energy use by fan group for each considered standards case 

(kWh)

Fan Category EL0

(No standard) EL1 EL2 EL3 EL4 EL5 EL6

Axial Housed 47,648 47,126 46,972 46,668 46,451 45,824 42,357 

Axial Unhoused Panel 19,804 19,734 19,697 19,629 19,480 19,325 18,860 

Centrifugal Housed 74,569 74,061 73,794 73,526 73,025 72,502 68,981 

Centrifugal Unhoused 79,886 79,848 79,819 79,772 79,670 79,661 75,074 

Inline & Mixed Flow 27,599 26,421 25,965 25,435 24,898 24,296 22,172 

Radial 56,622 55,894 55,482 54,914 54,101 52,660 47,903 

Power Roof Ventilator 16,080 15,652 15,490 15,311 15,010 14,703 13,337 
40

Inputs to the Operating Cost Calculation

• Lifetimes (includes repairs)

– Sources:

• ASHRAE HVAC Service Life and Maintenance Query Database (2014)

• Industry Expert Interview (2014)

Fan Group Lifetime Mechanical Lifetime Hours of Operation

Axial Housed 29 185,091 6,410 

Axial Unhoused Panel 28 182,873 6,526 

Centrifugal Housed 27 182,984 6,698 

Centrifugal Unhoused 27 183,668 6,712 

Inline and Mixed Flow 27 182,966 6,733 

Radial 31 184,616 6,018 

PRV 30 185,113 6,230 
41

Inputs to the Operating Cost Calculation

• Discount Rates

• Sources:

– Damodaran Online, Data Page: Costs of Capital by Industry Sector and Data Page: Historical 

Returns on Stocks, Bonds and Bills-United States, 2012. (accessed 2013)

– Ibbotson Associates, SBBI Valuation Edition 2009 Yearbook. 2009. Chicago, IL.

– Federal Reserve Board, Federal Reserve Bank Services Private Sector Adjustment Factor, 

2005, 2005. Washington, D.C. 

– Board of Governors of the Federal Reserve System, H.15 Historical Data Selected Interest 

Rates, 2013. (accessed 2013) 

Sector Mean Standard Deviation

Commercial 5.1 % 1.3 %

Industrial 5.2 % 1.2 %
42

Inputs to the Operating Cost Calculation

• Electricity Price and Electricity Price trend

• Repair, Maintenance and Installation costs:

– Repair and maintenance costs were assumed not to vary as a function of efficiency 

Sector 2014 Growth 

Rate

Commercial $0.10 0.30%

Industrial $0.08 0.68%

Source: EEI 2014 typical bill data; U.S. Department of 

Energy-Energy Information Administration (April 2015), 

Annual Energy Outlook 2014, Washington, DC; 
43

Life-Cycle Cost Inputs Summary

Input Description

Reselection Criteria

- Same Fan category

- Flow and Pressure within 20%

- Size (+1 inch) (100% users are space constrained)

Cost recovery - Manufacturers recover 100% of the conversion costs over 30 years

Distribution Channels - Three main channels

Default Motor and Transmissions

- Sized based on 1.2 * BHP fan

- Weighted average across poles an less efficient enclosure

- Part load curve

- Transmissions losses based on AMCA 203

Operating point - Same as the design point (single point)

Distribution by sector and 

applications - Based on motor plant assessment data and market reports

Operating Hours - Based on motor plant assessment data and Energy Plus

Repair and Maintenance Costs - Not expected to change with efficiency level

Equipment Lifetime - Between 6 years and 60 years

Discount Rate - Estimated using the CAPM model (equity capital) and Damodaran Online 

(debt financing). 

Electricity Prices and trends - Edison Electric Institute (EEI) bill data 

- Projections from the AEO 2014 (up to 2040)

Repair and Maintenance Costs Not expected to change with efficiency level, so not included in analysis.
44

Life-Cycle Cost Inputs Summary

Point of discussion:

Should the analysis be considering different inputs and assumptions to the LCC?
45

Life Cycle Cost and Payback Period Analysis

• Average LCC and PBP Results for each Standards Case for Axial Housed Fans

Efficiency 

Level

Average Costs 

(2014$) Simple Payback

years

Average 

Lifetime

years

Installed Cost

First Year’s 

Operating Cost

Lifetime 

Operating Cost

LCC

0 5,729 4,141 62,027 67,757 -- 28.9

1 5,873 4,096 61,372 67,245 3.2 28.9

2 5,910 4,082 61,181 67,091 3.1 28.9

3 5,933 4,056 60,782 66,715 2.4 28.9

4 5,979 4,037 60,516 66,495 2.4 28.9

5 6,038 3,983 59,703 65,741 1.9 28.9

6 6,273 3,681 55,271 61,544 1.2 28.9

Note: The results for each EL are calculated considering all customers. The PBP is measured relative to the base case

Efficiency 

Level

Life-Cycle Cost Savings

% of Customers that 

Experience

Net Cost

Average Savings*

(2014$)

1 1.5 512

2 1.8 666

3 2.0 1,041

4 3.5 1,262

5 2.9 2,016

6 4.3 6,212

* The calculation includes customers with zero LCC savings (no impact)

• LCC Savings Relative to the Base Case Efficiency Distribution for Axial Housed Fans
46

Life Cycle Cost and Payback Period Analysis

• Average LCC and PBP Results for each Standards Case for Axial Unhoused Panel Fans

Efficiency 

Level

Average Costs 

(2014$) Simple Payback

years

Average 

Lifetime

years

Installed Cost

First Year’s 

Operating Cost

Lifetime 

Operating Cost

LCC

0 1,750 2,150 31,630 33,380 -- 28

1 1,754 2,143 31,517 33,271 0.5 28

2 1,755 2,139 31,460 33,215 0.4 28

3 1,755 2,131 31,353 33,108 0.3 28

4 1,757 2,115 31,107 32,864 0.2 28

5 1,758 2,098 30,874 32,632 0.2 28

6 1,764 2,048 30,136 31,899 0.1 28

Note: The results for each EL are calculated considering all customers. The PBP is measured relative to the base case

Efficiency 

Level

Life-Cycle Cost Savings

% of Customers that 

Experience

Net Cost

Average Savings*

(2014$)

1 0.1 109

2 0.1 165

3 0.0 272

4 0.2 516

5 0.3 747

6 0.4 1,481

* The calculation includes customers with zero LCC savings (no impact)

• LCC Savings Relative to the Base Case Efficiency Distribution for Axial Unhoused Panel Fans
47

Life Cycle Cost and Payback Period Analysis

• Average LCC and PBP Results for each Standards Case for Centrifugal Housed Fans

Efficiency 

Level

Average Costs 

(2014$) Simple Payback

years

Average 

Lifetime

years

Installed Cost

First Year’s 

Operating Cost

Lifetime 

Operating Cost

LCC

0 2,993 7,533 112,676 115,668 -- 27.3

1 3,034 7,478 111,887 114,921 0.8 27.3

2 3,056 7,450 111,449 114,505 0.8 27.3

3 3,072 7,421 111,017 114,089 0.7 27.3

4 3,104 7,369 110,240 113,343 0.7 27.3

5 3,159 7,314 109,426 112,585 0.8 27.3

6 3,442 6,951 104,023 107,465 0.8 27.3

Note: The results for each EL are calculated considering all customers. The PBP is measured relative to the base case

Efficiency 

Level

Life-Cycle Cost Savings

% of Customers that 

Experience

Net Cost

Average Savings*

(2014$)

1 1.1 747

2 1.4 1,163

3 1.6 1,579

4 1.9 2,325

5 2.5 3,083

6 7.2 8,203

* The calculation includes customers with zero LCC savings (no impact)

• LCC Savings Relative to the Base Case Efficiency Distribution for Centrifugal Housed Fans
48

Life Cycle Cost and Payback Period Analysis

• Average LCC and PBP Results for each Standards Case for Centrifugal Unhoused Fans

Efficiency 

Level

Average Costs 

(2014$) Simple Payback

years

Average 

Lifetime

years

Installed Cost

First Year’s 

Operating Cost

Lifetime 

Operating Cost

LCC

0 2,701 8,408 125,309 128,010 -- 27.4

1 2,710 8,404 125,262 127,972 2.2 27.4

2 2,716 8,401 125,218 127,934 2.1 27.4

3 2,718 8,395 125,139 127,857 1.4 27.4

4 2,723 8,384 124,956 127,680 0.9 27.4

5 2,736 8,382 124,909 127,645 1.3 27.4

6 2,810 7,906 117,874 120,684 0.2 27.4

Note: The results for each EL are calculated considering all customers. The PBP is measured relative to the base case

Efficiency 

Level

Life-Cycle Cost Savings

% of Customers that 

Experience

Net Cost

Average Savings*

(2014$)

1 0.1 38

2 0.3 76

3 0.3 153

4 0.6 330

5 1.3 365

6 5.1 7,326

* The calculation includes customers with zero LCC savings (no impact)

• LCC Savings Relative to the Base Case Efficiency Distribution for Centrifugal Unhoused Fans
49

Life Cycle Cost and Payback Period Analysis

• Average LCC and PBP Results for each Standards Case for Inline and Mixed Flow Fans

Efficiency 

Level

Average Costs 

(2014$) Simple Payback

years

Average 

Lifetime

years

Installed Cost

First Year’s 

Operating Cost

Lifetime 

Operating Cost

LCC

0 3,176 2,950 43,858 47,034 -- 27.2

1 3,387 2,823 41,975 45,362 1.7 27.2

2 3,433 2,774 41,252 44,685 1.5 27.2

3 3,497 2,717 40,411 43,908 1.4 27.2

4 3,579 2,659 39,557 43,136 1.4 27.2

5 3,733 2,594 38,572 42,304 1.6 27.2

6 4,364 2,368 35,214 39,579 2.0 27.2

Note: The results for each EL are calculated considering all customers. The PBP is measured relative to the base case

Efficiency 

Level

Life-Cycle Cost Savings

% of Customers that 

Experience

Net Cost

Average Savings*

(2014$)

1 1.7 1,672 

2 2.8 2,349 

3 4.1 3,126 

4 4.6 3,898 

5 5.3 4,730 

6 6.9 7,455 

* The calculation includes customers with zero LCC savings (no impact)

• LCC Savings Relative to the Base Case Efficiency Distribution for Inline and Mixed Flow Fans
50

Life Cycle Cost and Payback Period Analysis

• Average LCC and PBP Results for each Standards Case for Radial Fans

Efficiency 

Level

Average Costs 

(2014$) Simple Payback

years

Average 

Lifetime

years

Installed Cost

First Year’s 

Operating Cost

Lifetime 

Operating Cost

LCC

0 1,872 4,921 76,488 78,359 -- 30.7

1 1,937 4,858 75,534 77,470 1.0 30.7

2 1,955 4,822 74,966 76,921 0.8 30.7

3 2,012 4,773 74,197 76,209 0.9 30.7

4 2,073 4,702 73,107 75,180 0.9 30.7

5 2,169 4,577 71,218 73,387 0.9 30.7

6 2,605 4,163 64,768 67,373 1.0 30.7

Note: The results for each EL are calculated considering all customers. The PBP is measured relative to the base case

Efficiency 

Level

Life-Cycle Cost Savings

% of Customers that 

Experience

Net Cost

Average Savings*

(2014$)

1 0.9 889

2 1.6 1,438

3 3.4 2,150

4 3.8 3,179

5 4.9 4,972

6 8.4 10,987

* The calculation includes customers with zero LCC savings (no impact)

• LCC Savings Relative to the Base Case Efficiency Distribution for Radial Fans
51

Life Cycle Cost and Payback Period Analysis

• Average LCC and PBP Results for each Standards Case for Power Roof Ventilator Fans

Efficiency 

Level

Average Costs 

(2014$) Simple Payback

years

Average 

Lifetime

years

Installed Cost

First Year’s 

Operating Cost

Lifetime 

Operating Cost

LCC

0 2,984 1,746 25,758 28,741 -- 29.7

1 3,059 1,699 25,069 28,129 1.6 29.7

2 3,072 1,681 24,804 27,876 1.4 29.7

3 3,100 1,662 24,515 27,615 1.4 29.7

4 3,156 1,629 24,032 27,188 1.5 29.7

5 3,195 1,596 23,544 26,739 1.4 29.7

6 3,360 1,448 21,358 24,718 1.3 29.7

Note: The results for each EL are calculated considering all customers. The PBP is measured relative to the base case

Efficiency 

Level

Life-Cycle Cost Savings

% of Customers that 

Experience

Net Cost

Average Savings*

(2014$)

1 0.9 613

2 0.9 866

3 1.4 1,126

4 1.8 1,553

5 2.6 2,002

6 3.9 4,023

* The calculation includes customers with zero LCC savings (no impact)

• LCC Savings Relative to the Base Case Efficiency Distribution for Power Roof Ventilator Fans
52

Life Cycle Cost and Payback Period Analysis

• Average LCC and PBP Results for each Standards Case for Ducted Fans

Efficiency 

Level

Average Costs 

(2014$) Simple Payback

years

Average 

Lifetime

years

Installed Cost

First Year’s 

Operating Cost

Lifetime 

Operating Cost

LCC

0 3,276 5,765 86,789 90,065 -- 28.3

1 3,364 5,700 85,838 89,202 1.4 28.3

2 3,391 5,670 85,378 88,769 1.1 28.3

3 3,423 5,633 84,826 88,250 1.1 28.3

4 3,471 5,583 84,065 87,536 1.1 28.3

5 3,548 5,512 83,010 86,559 1.1 28.3

6 3,903 5,169 77,852 81,755 1.1 28.3

Note: The results for each EL are calculated considering all customers. The PBP is measured relative to the base case

Efficiency 

Level

Life-Cycle Cost Savings

% of Customers that 

Experience

Net Cost

Average Savings*

(2014$)

1 1.2 863 

2 1.7 1,296 

3 2.4 1,815 

4 2.9 2,529 

5 3.4 3,506 

6 6.9 8,310 

* The calculation includes customers with zero LCC savings (no impact)

• LCC Savings Relative to the Base Case Efficiency Distribution for Ducted Fans
53

Life Cycle Cost and Payback Period Analysis

• Average LCC and PBP Results for each Standards Case for Unducted Fans

Efficiency 

Level

Average Costs 

(2014$) Simple Payback

years

Average 

Lifetime

years

Installed Cost

First Year’s 

Operating Cost

Lifetime 

Operating Cost

LCC

0 2,266 3,501 51,900 54,166 -- 28.3

1 2,288 3,485 51,665 53,953 1.4 28.3

2 2,293 3,478 51,561 53,854 1.2 28.3

3 2,300 3,468 51,417 53,717 1.0 28.3

4 2,316 3,449 51,129 53,445 1.0 28.3

5 2,329 3,432 50,878 53,206 0.9 28.3

6 2,388 3,260 48,335 50,723 0.5 28.3

Note: The results for each EL are calculated considering all customers. The PBP is measured relative to the base case

Efficiency 

Level

Life-Cycle Cost Savings

% of Customers that 

Experience

Net Cost

Average Savings*

(2014$)

1 0.3 213

2 0.3 312

3 0.4 449

4 0.7 721

5 1.1 960

6 2.3 3,443

* The calculation includes customers with zero LCC savings (no impact)

• LCC Savings Relative to the Base Case Efficiency Distribution for Unducted Fans
54

Shipments and National Impact Analysis

• Shipments by fan category (2012) (1-200HP)

Fan Category Units Percent

Axial Housed 33,500 7%

Axial Unhoused Panel 148,000 32%

Centrifugal Housed 88,000 19%

Centrifugal Unhoused 65,000 14%

Inline and Mixed Flow 26,500 6%

Radial 36,000 8%

Power Roof Ventilator 67,500 15%

Total 464,500 100%

Source: Air Movement and Control Association (AMCA). "Confidential Fan Sales Database." 

July 2012; IHS Technology. Fans and Blowers - World - 2014. Tech. March 2014.
55

Shipments and National Impact Analysis

• Shipments Projections

– Projections based on the following indicators, depending on the market segment:

• Industrial sector: Fixed investments in equipment and structures including fans (1.79 

percent compound annual growth rate)* 

• Commercial sector, new buildings: AEO new commercial floor space index (1.81 percent 

compound annual growth rate)*

• Commercial sector, existing buildings: Fixed investments in existing structures including 

fans (0.04 percent compound annual growth rate)*

– This resulted in a total aggregate compound annual growth rate of 1.56 percent* 

*Compound annual growth rate over 2013-2048
56

Shipments and National Impact Analysis

• Shipments Projections (industry)

– Projections based on Fixed investments in equipment and structures including fans:

Sources: U.S. Census Bureau Manufacturing Subject Series and Annual Survey of 

Manufacturers for Industrial and Commercial Fan and Blower Manufacturing; EIA 

Annual Energy Outlook to 2014 Economic Growth Forecasts and Commercial Sector 

Key Indicators and Consumption; Bureau of Economic Analysis Private Fixed 

Investment in Structures by Type, and Private Fixed Investment in Equipment by Type 

Databases (accessed 2014); RSMeans Facilities Construction Cost Data 2014;

50

60

70

80

90

100

110

120

130

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Shipments and Investment Index (2004=100)

Year

Shipments Index Investment Index

• Used historical sales data from the 

US Census to establish a relationship 

between fan shipments and fixed 

investments in equipment and 

structures including fans from the 

US BEA 

• Establish a relationship between 

GDP and fixed investment in 

equipment and structures

• Used the GDP projections from the 

AEO Outlook to derive shipments 

projections
57

Shipments and National Impact Analysis

• Shipments Projections (Commercial)

– Divided the market into fans going to existing building (20%) and new buildings (80%).

• New Buildings: Projections based on AEO new commercial floor space projections

• Existing buildings: Projections based on fixed investments in existing structures including fans (similar 

to industrial sector projection) 

Sources: U.S. Census Bureau Manufacturing Subject Series and Annual Survey of Manufacturers for Industrial and Commercial Fan and 

Blower Manufacturing; EIA Annual Energy Outlook to 2014 Economic Growth Forecasts and Commercial Sector Key Indicators and 

Consumption; Bureau of Economic Analysis Private Fixed Investment in Structures by Type, and Private Fixed Investment in Equipment by 

Type Databases (accessed 2014); RSMeans Facilities Construction Cost Data 2014; 

Point of discussion:

Should shipments be projected using a different method?
58

Shipments and National Impact Analysis

0

100

200

300

400

500

600

700

800

900

2012 2017 2022 2027 2032 2037 2042 2047

Shipments in Units (1,000)

Shipments by Sector and Market Segment

Industrial Commerical (New Buildings) Commercial (Existing Buildings)
59

National Full Fuel-Cycle Energy Savings (quads)

Fan Category EL 1 EL 2 EL 3 EL 4 EL 5 EL 6

Axial Housed 0.1 0.2 0.3 0.3 0.5 1.4

Axial Unhoused 

Panel 0.1 0.1 0.2 0.4 0.6 1.2

Centrifugal 

Housed 0.4 0.6 0.8 1.2 1.6 4.3

Centrifugal 

Unhoused 0.02 0.04 0.1 0.1 0.1 2.6

Inline and 

Mixed Flow 0.3 0.4 0.5 0.7 0.8 1.3

Radial 0.3 0.5 0.7 1.1 1.7 3.7

Power Roof 

Ventilator 0.3 0.4 0.6 0.8 1.0 2.0

Total 1.6 2.3 3.2 4.6 6.3 16.6

*may not add up to Total due to rounding

National Impact Analysis

• National Full Fuel-Cycle Energy Savings by Fan Category (quads)
60

National Impact Analysis

Fan Category Discount 

Rate (%) EL 1 EL 2 EL 3 EL 4 EL 5 EL 6

Axial Housed

3 0.56 0.73 1.10 1.34 2.08 6.25

7 0.18 0.24 0.37 0.45 0.71 2.16

Axial Unhoused 

Panel

3 0.43 0.66 1.09 2.02 3.00 5.92

7 0.15 0.24 0.39 0.73 1.08 2.13

Centrifugal 

Housed

3 1.81 2.76 3.74 5.54 7.38 19.96

7 0.64 0.98 1.33 1.98 2.63 7.10

Centrifugal 

Unhoused

3 0.09 0.16 0.28 0.54 0.54 12.47

7 0.03 0.05 0.10 0.19 0.19 4.51

Inline and Mixed 

Flow

3 1.29 1.81 2.41 3.01 3.64 5.82

7 0.45 0.63 0.84 1.05 1.26 1.99

Radial

3 1.36 2.14 3.20 4.73 7.45 16.32

7 0.46 0.74 1.09 1.62 2.55 5.58

Power Roof 

Ventilator

3 1.37 1.91 2.49 3.45 4.46 8.95

7 0.46 0.65 0.84 1.16 1.51 3.04

Total

3 6.9 10.2 14.3 20.6 28.6 75.7

7 2.4 3.5 5.0 7.2 9.9 26.5

*may not add up to Total due to rounding

• NPV of Consumer Benefits by Fan Category (billion 2014$)*
61

National Full Fuel-Cycle Energy Savings (quads)

Fan Family EL 1 EL 2 EL 3 EL 4 EL 5 EL 6

Ducted 1.1 1.7 2.3 3.2 4.5 10.7

Unducted 0.4 0.6 0.9 1.3 1.8 5.9

Total 1.6 2.3 3.2 4.6 6.3 16.6

National Impact Analysis

• National Full Fuel-Cycle Energy Savings by Fan Family (quads)*

Fan Family Discount 

Rate (%) EL 1 EL 2 EL 3 EL 4 EL 5 EL 6

Ducted 3 5.0 7.5 10.4 14.6 20.6 48.4

7 1.7 2.6 3.6 5.1 7.1 16.8

Unducted 3 1.9 2.7 3.9 6.0 8.0 27.3

7 0.6 0.9 1.3 2.1 2.8 9.7

Total

3 6.9 10.2 14.3 20.6 28.6 75.7

7 2.4 3.5 5.0 7.2 9.9 26.5

*may not add up to Total due to rounding

• NPV of Consumer Benefits by Fan Family (billion 2014$)*
62

Topics

1. May 1st NODA results

2. Revised Results for Unducted Fans
63

Revised Results for Unducted fans

• At the request of the WG, DOE analyzed the fan categories that qualify as 

“unducted fans” using a metric based on static efficiency as a function of 

flow and static pressure.

• The following efficiency levels were analyzed:

Static 

Efficiency 

Target

Percent NonCompliant 

(Unducted fans)

EL0 0.50 0 %

EL1 0.54 10%

EL2 0.58 14%

EL3 0.62 19%

EL4 0.66 25%

EL5 0.70 32%

EL6 0.82 61%

Total Efficiency 

Target (NODA)

Percent NonCompliant 

(Unducted fans)

Percent NonCompliant 

(Ducted fans)

0.54 0 % 0 %

0.58 2% 10%

0.62 4% 13%

0.66 6% 19%

0.70 9% 24%

0.74 14% 32%

0.86 35% 65%
64

Conversion Cost Results, Revised

Equipment Class Total Conversion Cost

EL 0 EL 1 EL 2 EL 3 EL 4 EL 5 El 6

Axial Housed $0 $32,871,798 $41,217,988 $47,938,597 $57,084,416 $70,533,339 $123,787,329 

Axial Unhoused 

Panel $0 $9,475,894 $13,849,383 $21,624,475 $28,184,709 $42,763,007 $74,106,348

Centrifugal Housed $0 $20,734,126 $31,178,328 $37,265,951 $53,914,759 $81,961,012 $246,658,565 

Centrifugal 

Unhoused $0 $13,426,886 $18,680,885 $19,848,440 $26,853,772 $32,691,548 $58,377,765

Inline and Mixed 

Flow $0 $40,280,658 $47,285,990 $57,484,929 $70,008,412 $95,245,164 $210,463,933 

Radial $0 $18,792,235 $24,077,551 $40,520,756 $58,138,476 $85,152,313 $213,174,412 

Power Roof/Wall 

Ventilators $0 $83,081,908 $98,474,764 $121,875,902 $175,946,453 $228,169,275 $376,174,370
65

Manufacturer Impact Analysis: Results (Table, Revised)

• INPV Results for the Conversion Cost Pass Through Markup Scenario (Upper Bound)

* Numbers in parentheses represent negative values.

• INPV Results for the Flat Markup Scenario (Lower Bound)

EL 0 EL 1 EL 2 EL 3 EL 4 EL 5 EL 6

INPV (2014$ MM) 719.1 657.3 642.2 622.3 584.3 534.5 296.8

Change in INPV

(2014$ MM) - (61.9) (77.0) (96.9) (134.9) (184.6) (422.4)

Change in INPV (%) - (8.6) (10.7) (13.5) (18.8) (25.7) (58.7)

EL 0 EL 1 EL 2 EL 3 EL 4 EL 5 EL 6

INPV (2014$ MM) 719.1 575.6 539.5 492.8 408.6 296.7 (189.9)

Change in INPV

(2014$ MM) - (143.6) (179.6) (226.3) (310.5) (422.4) (909.1)

Change in INPV (%) - (20.0) (25.0) (31.5) (43.2) (58.7) (126.4)
66

Manufacturer Impact Analysis: Results (Graph, Revised)

• Potential INPV impacts of standards on commercial and industrial fan manufacturers

-140%

-120%

-100%

-80%

-60%

-40%

-20%

0%

20%

EL 0 EL 1 EL 2 EL 3 EL 4 EL 5 EL 6

% Change in NPV

Conversion Cost Pass Through Markup Flat Markup
67

Life Cycle Cost and Payback Period Analysis (revised)

• Average LCC and PBP Results for each Standards Case for Axial Unhoused Panel Fans

Efficiency 

Level

Average Costs 

(2014$) Simple Payback

years

Average 

Lifetime

years

Installed Cost

First Year’s 

Operating Cost

Lifetime 

Operating Cost

LCC

0 1,750 2,137 31,685 33,435 -- 28.4

1 1,760 2,060 30,563 32,323 0.12 28.4

2 1,764 2,033 30,171 31,935 0.13 28.4

3 1,772 2,000 29,686 31,458 0.16 28.4

4 1,778 1,959 29,083 30,861 0.16 28.4

5 1,792 1,915 28,426 30,219 0.19 28.4

6 1,824 1,743 25,872 27,695 0.19 28.4

Note: The results for each EL are calculated considering all customers. The PBP is measured relative to the base case

Efficiency 

Level

Life-Cycle Cost Savings

% of Customers that 

Experience

Net Cost

Average Savings*

(2014$)

1 0.1 1,112 

2 0.6 1,501 

3 0.5 1,978 

4 0.5 2,574 

5 1.2 3,217 

6 0.5 5,740 

* The calculation includes customers with zero LCC savings (no impact)

• LCC Savings Relative to the Base Case Efficiency Distribution for Axial Unhoused Panel Fans
68

Life Cycle Cost and Payback Period Analysis (revised)

• Average LCC and PBP Results for each Standards Case for Centrifugal Unhoused Fans

Efficiency 

Level

Average Costs 

(2014$) Simple Payback

years

Average 

Lifetime

years

Installed Cost

First Year’s 

Operating Cost

Lifetime 

Operating Cost

LCC

0 2,701 8,337 123,461 126,162 -- 27.5

1 2,729 8,317 123,159 125,889 1.4 27.5

2 2,741 8,319 123,177 125,918 2.2 27.5

3 2,743 8,308 123,002 125,745 1.5 27.5

4 2,758 8,288 122,725 125,483 1.2 27.5

5 2,771 8,280 122,614 125,385 1.2 27.5

6 2,826 7,798 115,500 118,326 0.2 27.5

Note: The results for each EL are calculated considering all customers. The PBP is measured relative to the base case

Efficiency 

Level

Life-Cycle Cost Savings

% of Customers that 

Experience

Net Cost

Average Savings*

(2014$)

1 0.2 273 

2 0.7 244 

3 1.0 417 

4 1.6 679 

5 3.0 777 

6 7.7 7,836 

* The calculation includes customers with zero LCC savings (no impact)

• LCC Savings Relative to the Base Case Efficiency Distribution for Centrifugal Unhoused Fans
69

Life Cycle Cost and Payback Period Analysis (revised)

• Average LCC and PBP Results for each Standards Case for Power Roof Ventilator Fans

Efficiency 

Level

Average Costs 

(2014$) Simple Payback

years

Average 

Lifetime

years

Installed Cost

First Year’s 

Operating Cost

Lifetime 

Operating Cost

LCC

0 2,988 1,739 25,566 28,553 -- 29.6

1 3,150 1,594 23,446 26,596 1.1 29.6

2 3,181 1,545 22,718 25,899 1.0 29.6

3 3,226 1,504 22,102 25,328 1.0 29.6

4 3,330 1,457 21,413 24,742 1.2 29.6

5 3,430 1,411 20,744 24,175 1.4 29.6

6 3,726 1,258 18,496 22,222 1.5 29.6

Note: The results for each EL are calculated considering all customers. The PBP is measured relative to the base case

Efficiency 

Level

Life-Cycle Cost Savings

% of Customers that 

Experience

Net Cost

Average Savings*

(2014$)

1 0.8 1,957 

2 1.2 2,655 

3 1.3 3,226 

4 1.9 3,811 

5 2.2 4,379 

6 3.2 6,332 

* The calculation includes customers with zero LCC savings (no impact)

• LCC Savings Relative to the Base Case Efficiency Distribution for Power Roof Ventilator Fans
70

National Full Fuel-Cycle Energy Savings (quads)

Fan Category EL 1 EL 2 EL 3 EL 4 EL 5 EL 6

Axial Unhoused Panel 0.9 1.3 1.7 2.2 2.7 4.9

Centrifugal Unhoused 0.1 0.1 0.1 0.2 0.3 2.8

Power Roof Ventilator 1.0 1.3 1.6 1.9 2.2 3.3

Total 2.0 2.7 3.4 4.4 5.2 10.9

*May not sum to Total due to rounding

National Impact Analysis (revised)

• National Full Fuel-Cycle Energy Savings by Fan Category (quads)
71

National Impact Analysis (revised)

Fan Category Discount 

Rate (%) EL 1 EL 2 EL 3 EL 4 EL 5 EL 6

Axial Unhoused

Panel

3 4.5 6.1 8.0 10.4 12.9 23.0

7 1.6 2.2 2.9 3.7 4.6 8.2

Centrifugal 

Unhoused

3 0.4 0.4 0.6 1.1 1.2 13.4

7 0.2 0.1 0.2 0.4 0.4 4.8

Power Roof 

Ventilator

3 4.4 5.9 7.1 8.5 9.8 14.2

7 1.5 2.0 2.4 2.9 3.3 4.8

Total

3 9.3 12.3 15.7 19.9 23.9 50.6 

7 3.3 4.3 5.5 7.0 8.4 17.8 

*May not sum to Total due to rounding

• NPV of Consumer Benefits by Fan Category (billion 2014$)*
72

National Full Fuel-Cycle Energy Savings (quads)

Fan Family EL 1 EL 2 EL 3 EL 4 EL 5 EL 6

Ducted 1.1 1.7 2.3 3.2 4.5 10.7

Unducted 2.0 2.7 3.4 4.4 5.2 10.9

Total 3.1 4.4 5.7 7.7 9.8 21.6

National Impact Analysis (revised – including ducted)

• National Full Fuel-Cycle Energy Savings by Fan Family (quads)*

Fan Family Discount 

Rate (%) EL 1 EL 2 EL 3 EL 4 EL 5 EL 6

Ducted

3 5.0 7.5 10.4 14.6 20.6 48.4

7 1.7 2.6 3.6 5.1 7.1 16.8

Unducted

3 9.3 12.3 15.7 19.9 23.9 50.6 

7 3.3 4.3 5.5 7.0 8.4 17.8 

Total

3 14.3 19.7 26.2 34.5 44.5 98.9

7 5.0 6.9 9.2 12.1 15.5 34.7

*may not add up to Total due to rounding

• NPV of Consumer Benefits by Fan Family (billion 2014$)*
73

Backup
74

Sensitivities: Qo and Po

• Different values of Flow and Pressure constants

Axial Housed

Q0=200 Q0=250 Q0=300

EL1

Keep 92.67% 92.9% 93.21%

Redesign 0.9% 0.8% 0.69%

Reselect 6.4% 6.2% 6.10%

EL2

Keep 90.9% 91.2% 91.65%

Redesign 1.5% 1.2% 1.14%

Reselect 7.6% 7.5% 7.22%

EL3

Keep 86.6% 87.2% 89.36%

Redesign 1.8% 1.6% 1.51%

Reselect 11.6% 11.3% 9.13%

EL4

Keep 83.6% 84.1% 84.65%

Redesign 3.9% 3.7% 1.72%

Reselect 12.6% 12.2% 13.63%

EL5

Keep 77.7% 78.1% 78.79%

Redesign 4.3% 4.2% 4.07%

Reselect 18.0% 17.7% 17.14%

EL6

Keep 50.4% 51.2% 51.94%

Redesign 8.8% 8.5% 8.37%

Reselect 40.8% 40.3% 39.69%

Axial Housed

P0=0.35 P0=0.4 P0=0.45

EL1

Keep 92.3% 92.9% 93.41%

Redesign 1.0% 0.8% 0.65%

Reselect 6.7% 6.2% 5.94%

EL2

Keep 90.5% 91.2% 91.94%

Redesign 1.5% 1.2% 1.09%

Reselect 8.0% 7.5% 6.97%

EL3

Keep 86.0% 87.2% 90.11%

Redesign 1.6% 1.6% 1.49%

Reselect 12.4% 11.3% 8.39%

EL4

Keep 81.5% 84.1% 85.61%

Redesign 4.1% 3.7% 3.49%

Reselect 14.4% 12.2% 10.91%

EL5

Keep 75.6% 78.1% 80.75%

Redesign 4.3% 4.2% 4.04%

Reselect 20.1% 17.7% 15.21%

EL6

Keep 47.2% 51.2% 59.07%

Redesign 9.2% 8.5% 8.02%

Reselect 43.6% 40.3% 32.91%
75

Sensitivities: Reselection

• Larger size selection window ([-1;+2] nominal sizes)

% compliant Axial Housed Axial Unhoused

Panel

Centrifugal 

Housed

Centrifugal 

Unhoused

Inline & 

Mixed Flow Radial Power Roof 

Ventilator

EL1 NODA 2 92.9% 99.1% 92.3% 99.5% 79.3% 90.4% 93.1%

Scenario 92.9% 99.1% 92.3% 99.5% 79.3% 90.4% 93.1%

EL2 NODA 2 91.2% 98.5% 89.6% 99.0% 71.2% 86.2% 89.3%

Scenario 91.2% 98.5% 89.6% 99.0% 71.2% 86.2% 89.3%

EL3 NODA 2 87.2% 97.7% 86.3% 98.4% 60.6% 77.8% 83.8%

Scenario 87.2% 97.7% 86.3% 98.4% 60.6% 77.8% 83.8%

EL4 NODA 2 84.1% 96.0% 82.0% 96.6% 50.7% 70.0% 75.1%

Scenario 84.1% 96.0% 82.0% 96.6% 50.7% 70.0% 75.1%

EL5 NODA 2 78.1% 93.3% 75.5% 93.7% 40.9% 60.0% 65.3%

Scenario 78.1% 93.3% 75.5% 93.7% 40.9% 60.0% 65.3%

EL6 NODA 2 51.2% 85.2% 37.3% 56.6% 17.6% 28.6% 30.8%

Scenario 51.2% 85.2% 37.3% 56.6% 17.6% 28.6% 30.8%

% reselected Axial Housed Axial Unhoused

Panel

Centrifugal 

Housed

Centrifugal 

Unhoused

Inline & 

Mixed Flow Radial Power Roof 

Ventilator

EL1 NODA 2 5.5% 0.6% 6.4% 0.4% 18.6% 8.9% 6.3%

Scenario 6.2% 0.7% 7.4% 0.5% 19.9% 9.3% 6.7%

EL2 NODA 2 6.6% 1.1% 8.8% 0.7% 26.2% 13.0% 9.8%

Scenario 7.5% 1.2% 10.1% 1.0% 27.7% 13.5% 10.5%

EL3 NODA 2 10.2% 1.8% 11.7% 1.1% 35.0% 20.4% 14.9%

Scenario 11.3% 2.0% 13.2% 1.5% 38.0% 21.6% 15.8%

EL4 NODA 2 11.0% 3.2% 14.9% 2.9% 43.8% 27.5% 22.8%

Scenario 12.2% 3.5% 16.5% 3.3% 47.7% 29.3% 24.3%

EL5 NODA 2 15.2% 5.5% 20.5% 5.7% 51.1% 35.9% 31.5%

Scenario 17.7% 5.8% 22.8% 6.1% 56.2% 38.7% 33.7%

EL6 NODA 2 36.5% 12.4% 52.1% 32.3% 62.2% 47.2% 59.2%

Scenario 40.3% 13.0% 57.9% 40.6% 73.3% 59.8% 65.4%
76

Sensitivities: Default values selection

• Metric based on sizing motor using the maximum allowable fan shaft input power for FERSTD

Efficiency Distribution

Axial Housed

Axial 

Unhoused

Panel

Centrifugal 

Housed

Centrifugal 

Unhoused

Inline & 

Mixed Flow Radial

Power Roof 

Ventilator

EL1 NODA 2 7.2% 0.9% 7.7% 0.5% 20.7% 9.6% 6.9%

Scenario 7.1% 0.9% 7.7% 0.5% 20.7% 9.6% 6.9%

EL2 NODA 2 1.6% 0.6% 2.7% 0.5% 8.2% 4.3% 3.9%

Scenario 1.7% 0.5% 2.7% 0.5% 8.1% 4.3% 3.9%

EL3 NODA 2 4.1% 0.8% 3.2% 0.5% 10.5% 8.3% 5.5%

Scenario 4.1% 0.8% 3.3% 0.5% 10.6% 8.3% 5.5%

EL4 NODA 2 3.0% 1.7% 4.3% 1.9% 9.9% 7.8% 8.6%

Scenario 3.1% 1.7% 4.3% 1.9% 9.9% 7.9% 8.7%

EL5 NODA 2 5.9% 2.7% 6.6% 3.0% 9.7% 10.0% 9.9%

Scenario 5.9% 2.7% 6.5% 2.9% 9.7% 10.0% 9.9%

EL6 NODA 2 27.1% 8.1% 38.2% 37.2% 23.4% 31.3% 34.4%

Scenario 27.0% 8.1% 38.2% 37.1% 23.4% 31.4% 34.5%