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

9:00

- 9:15 Introduction and Review Agenda 9:15

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

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

- 1:15 Lunch (On Your Own)

1:15

- 4:00 LCC: Discussion ofthe life-cycle-cost spreadsheet model that accounts for variability ofkey criteria, such as household characteristics related to hotwater use from the Residential Energy Consumption Survey (RECS), discount rates, energy prices, and manufacturing costs. Preliminary life-cycle costs and energy savings for each design option and design option combinations.U.S. DEPARTMENT OFENERGY WORKSHOP ON STANDARDS FOR WATER HEATERS-continuedBreak (as appropriate) 4:00

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

8:30

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

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

10:15

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

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

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

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

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