CHAPTER 1. INTRODUCTION

TABLE OF CONTENTS

1.1 PURPOSE OF THE DOCUMENT ................................................................................. 1-1 1.2 OVERVIEW OF THE APPLIANCES AND COMMERCIAL EQUIPMENT STANDARDS PROGRAM......................................................................................................... 1-1 1.3 OVERVIEW OF THE SUBCATEGOR IES OF LAMPS COVERED ........................... 1-2 1.4 PROCESS FOR SETTING ENERGY CONERVATION ST ANDARDS...................... 1-4 1.5 STRUCTURE OF THE DOCUMENT............................................................................ 1-8

LIST OF TABLES

Table 1.4.1 Analyses Under the Process Rule ............................................................................ 1-5

1-iCHAPTER 1. INTRODUCTION

1.1 PURPOSE OF THE DOCUMENT

This technical support docum ent (TSD) is a stan d-alone report that pr ovides the technical analyses supporting the information in the fi nal rule for general service fluorescent lamps (GSFL) and incandescent reflector lamps (IRL).

1.2 OVERVIEW OF THE APPLIANCES AND COMMERCIAL EQUIPMENT STANDARDS PROGRAM

Part B of Title III of the Energy Policy a nd Conservation Act (EPCA or the Act) of 1975 (42 U.S.C. 6291–6309) established the energy co nservation program for consumer products other than automobiles, covering major household appliances. The National Energy Conservation Policy Act of 1978 (NECPA) amended EP CA to add Part C of Title III (42 U.S.C. 6311–6317), which established an energy conservation program for certain i ndustrial equipment. Additional amendments to EPCA have given the U.S. Department of Energy (DOE) the authority to regulate the energy efficiency of se veral products, including certain fluorescent and incandescent lamps, the products that are the focus of this document.

Amendments to EPCA in the Energy Policy Act of 1992 (EPACT 1992), P.L. 102-486, and subsequent amendments in the Energy Independence and Security Act (EISA 2007), P.L. 110-140, established energy conservation standards fo r GSFL and IRL, as well as requirements to conduct two cycles of rulemakings to determin e whether these standards should be amended. (42 U.S.C. 6295(i)(1) and (3)–(4)) EPCA also pr ovides that within 24 mont hs after U.S. Federal Trade Commission (FTC) labeling requirements ha ve become effective for GSFL, DOE must initiate a rulemaking to determine if the standard s in effect for these lamps should be amended to be applicable to additional GSFL. (42 U.S. C. 6295(i)(5)) According to EPCA, DOE must publish a rule within 18 months of initiating the rulemaking. (42 U.S.C. 6295(i)(5)) The FTC published labeling requirements for covered lamp s on May 13, 1994, with an effective date of May 15, 1995. 59 FR 25176. Previously, DOE did not take action on the requirements of 42 U.S.C. 6295(i) because lamps we re assigned a low priority ba sed on public comment and energy savings estimates in the pr iority-setting process.

EPCA establishes standards for GSFL, requi ring that they meet prescribed minimum efficacy levels for given color rendering index ( CRI) levels. EPCA al so requires that DOE conduct two cycles of rulemakings to determine if the standards should be amended. (42 U.S.C. 6295(i)(1), (3)–(4)) In additi on, the Act requires DOE to conduct a rulemaking to determine if the standards in effect for fluorescent lamps shoul d be amended so that they would be applicable to additional GSFL. (42 U.S.C. 6295(i)(5)) In this rulemaking, DOE is conducting its first review to determine if the standards should be amended, while fulfilling the additional statutory requirement of determining if the standard s should be applicable to other GSFL.

EPCA also establishes energy conservation standards for IRL, requiring that certain lamps meet prescribed efficacy levels. Th e Act directs DOE to conduct two cycles of

1-1rulemakings to determine if the standards should be amended. (42 U.S.C. 6295(i)(1), (3)-(4)) In this rulemaking, DOE is conducting its first review to determine if the standards for IRL should be amended.

Additionally, EPCA specifies that the Secretar y of Energy shall prescribe test procedures for fluorescent lamps and incandescent reflector la mps, taking into consideration the applicable Illumination Engineering Society of North Amer ica (IESNA) or American National Standards Institute (ANSI) standards. (42 U.S.C. 6293(b)(6) Accordingly, on May 29, 1997, DOE published a final rule establishing test proced ures for fluorescent and incandescent lamps incorporating by reference ANSI, IESNA, and International Commission on Illumination (CIE) industry standards to measure lamp efficacy and CRI. 62 FR 29222. DOE has updated the test procedures of the lamps covered in this rule making through a separate rulemaking process.

1.3 OVERVIEW OF THE SUBCATE GORIES OF LAMPS COVERED

This rulemaking covers certain types of fl uorescent lamps and incandescent lamps. Section 321(30) of EPCA (42 U.S.C. 6291(30)) contains defini tions for “fluorescent lamps,” “general service fluorescent lamps” and “incandescent lamps.”

In addition to the statutory definitions, DOE published definitions for terms that supplement the statutory definitions for fluorescent and incandescent lamps. 62 FR 29222 (May 29, 1997); 10 CFR section 430.2. Appendix 3A define s these terms. The market and technology assessment (Chapter 3) describes in more detail the definitions for fluorescent and incandescent lamps, as well as the two categories of lamps co vered in this rulemaking. As part of this rulemaking, DOE has extended coverage to “additi onal general service fluorescent lamps.” (42 U.S.C. 6295(5)) Please see the NOPR Federal Register notice for this rule making for a detailed discussion on DOE’s expanded coverage. Below are statutory definitions for fluorescent and incandescent lamps.

Sections 321(30)(A)–(F) of EPCA (42 U.S.C. 6291(30)(A)–(F)) contains definitions for “fluorescent lamp,” “general service fluorescent lamp,” “incandescent lamp,” and “incandescent reflector lamp” relevant to this rulemaking:

(A) Except as provided in subparagraph (E), the term “fluorescent lamp” means a lowpressure mercury electric-discharge source in which a fluorescing coating transforms some of the ultraviolet energy generate d by the mercury discharge into light, including only the following: (i) Any straight-shaped lamp (commonly re ferred to as 4-foot medium bi-pin lamps) with medium bi-pin bases of nominal overall length of 48 inches and rated wattage of 28 or more. (ii) Any U-shaped lamp (commonly referred to as 2-foot U-shaped lamps) with medium bi-pin bases of nomin al overall length between 22 and 25 inches and rated wattage of 28 or more. (iii) Any rapid start lamp (commonly referred to as 8-foot high output lamps) with recessed double contact bases of nominal overal l length of 96 inches

1-2and 0.800 nominal amperes, as defined in ANSI C78.1-1978 and related supplements. (iv) Any instant start lamp (commonly re ferred to as 8-foot slimline lamps) with single pin bases of nominal o verall length of 96 inches and rated wattage of 52 or more, as defined in ANSI C78.3-1978 (R1984) and related supplement ANSI C78.3a-1985.

(B) The term “general service fluorescent lamp” means fluorescent lamps which can be used to satisfy the majority of fluorescent applications, but does not include any lamp designed and marketed for the follo wing nongeneral ligh ting applications: (i) Fluorescent lamps designed to promote plant growth. (ii) Fluorescent lamps specifically design ed for cold temperature installations. (iii) Colored fluorescent lamps. (iv) Impact-resistant fluorescent lamps. (v) Reflectorized or aperture lamps. (vi) Fluorescent lamps designed fo r use in reprographic equipment. (vii) Lamps primarily designed to produc e radiation in the ultra-violet region of the spectrum. (viii) Lamps with a color rendering index of 87 or greater.

(C) Except as provided in subparagraph (E), the term “incandescent lamp” means a lamp in which light is produced by a filament heated to incandescence by an electric current, including only the following: (i) Any lamp (commonly referred to as lower wattage nonreflector general service lamps, including any tungs ten-halogen lamp) t hat has a rated wattage between 30 and 199 watts, has an E26 medium screw base, has a rated voltage or voltage range that lies at least partially within 115 and 130 volts, and is not a reflector lamp. (ii) Any lamp (commonly referred to as a reflector lamp) which is not colored or designed for rough or vibration se rvice applications, that contains an inner reflective coa ting on the outer bulb to dire ct the light, an R, PAR, ER, BR, BPAR or similar bulb shapes with E26 medium screw bases, a rated voltage or voltage range that lies at least partially within 115 and 130 volts, a diameter which exceeds 2.25 inches, and has a rated wattage that is 40 watts or higher. (iii) Any general service incandescent la mp (commonly referred to as a highor higher-wattage lamp) that has a rated wattage above 199 watts (above 205 watts for a high wattage reflector lamp).

* * * * *

(E) The terms “fluorescent lamp” and “inc andescent lamp” do not include any lamp excluded by the Secretary, by rule, as a resu lt of a determination that standards for such lamp would not result in significant energy savings because such lamp is designed for special applications or has sp ecial characteristics not available in reasonably substitutable lamp types.

1-3(F) The term “incandescent reflector lamp ” means a lamp described in subparagraph (C)(ii).

1.4 PROCESS FOR SETTING ENERGY CONERVATION STANDARDS

Under EPCA, when DOE evaluates new or am ended standards, it must consider the following seven factors to the gr eatest extent practicable:

(1) the economic impact of the standard on the manufacturers and consumers of the products subject to the standard;

(2) the savings in operating costs throughout the estimated average life of the products compared to any increases in the price, in itial charges, or main tenance expenses for the products that are likely to result from the imposition of the standard;

(3) the total projected amount of energy savings likely to result directly from imposition of the standard;

(4) any lessening of the utility or the pe rformance of the products likely to result from imposition of the standard;

(5) the impact of any lessening of comp etition, as determined in writing by the Attorney General, likely to result from imposition of the standard;

(6) the need for national energy conservation; and

(7) other factors the Secret ary considers relevant.

(42 U.S.C. 6295(o)(2)(B)(i)) Additional stat utory requirements for prescribing new or amended standards are set forth in 42 U.S.C. 62 95(o)(1)–(2)(A), (2)(B)(i i)–(iii), and (3)–(4).

DOE considers stakeholder participation a very important pa rt of the standards-setting process. DOE encourages the participation of all stakeholders during the comment period of each rulemaking stage. Beginning with the Rulemaking Framework Document for General Service Fluorescent Lamps, Incandescent Reflect or Lamps, and General Service Incandescent Lamps (Framework Document) and during subs equent comment periods, interactions among stakeholders provide a balanced discussion of the information that is required for the standards rulemaking.

In conducting the test procedures rulema king and the energy conservation standards rulemakings, DOE involves stakeholders th rough formal public notifications (i.e., Federal Register notices). For this fluorescent and inca ndescent lamps energy conservation standards rulemaking, DOE employed the procedures set fo rth in DOE’s Process Rule (Procedures for Consideration of New or Revised Energy Conser vation Standards for Consumer Products, 61 FR 36974, July 15, 1996, 10 CFR Part 430, Subpart C, A ppendix A) to the extent they were appropriate for developing ener gy conservation standards for th e lamps covered under this rulemaking.

1-4Before DOE determines whether to establis h or amend energy conservation standards for GSFL and IRL, it must first solicit comm ents on a proposed standard. (42 U.S.C. 6295(o)(2)(B)(i)). DOE must design each new or amended standard for these products to achieve the maximum improvement in energy effici ency that is technolog ically feasible and economically justified, and would result in significant energy savings. (42 U.S.C. 6295(o)(2)(A) and (3)) To determine whether a proposed st andard complies with these requirements, DOE must, after receiving comments on the proposed sta ndard, determine whether the benefits of the standard exceed its burdens to the greatest exte nt practicable, weighing th e seven factors listed above.

Subsequent to the publicati on of the Framework Document, the standards rulemaking process involves three additional formal, ma jor public notices, which are published in the Federal Register . The first of the rulemaking notices is an Advanced Notice of Public Rulemaking (ANOPR). The ANOPR is designed to publ icly vet the models and tools used in the rulemaking and to facilitate public participation before the proposed rule stage. The second notice is a NOPR, which presents a discussion of comments received in response to the ANOPR; analysis of the impacts of standards on consumers, manufacturers, and the nation; DOE’s weighing of the impacts; and the proposed standa rds. The third notice is the Final Rule, which presents a discussion of comments received in res ponse to the NOPR; the revised analysis of the impacts of standards; DOE’s weighing of the impacts; the standards adopted by DOE; and the effective dates of the standards. Until recently, DOE performed the manufacturer impact analysis in its entirety between the A NOPR and NOPR. However, as noted in Table 1.4.1 , DOE now conducts a prelim inary manufacturer impact analysis in the ANOPR stage. DOE believes this change will improve the rulemaking process.

Table 1.4.1 Analyses Under the Process Rule
ANOPR NOPR Final Rule* Market and technology assessment Revised ANOPR analyses Revised analyses Screening analysis Life-cycle cost sub-group analysis Engineering analysis Manuf acturer impact analysis Energy use characterization Utility impact analysis Product price determination Em ployment impact analysis Life-cycle cost and payback period analyses Environmental assessment

Shipments analysis Regulat ory impact analysis National impact analysis Preliminary manuf acturer impact analysis * During the Final Rule phase, DOE considers the comments submitted by the U.S. Department of Justice in the NOPR phase concerning the impact of any lessening of competition that is likely to result from the imposition of the standard. (42 U.S.C. 6295(o)(2)(B)(v))
In May 2006, DOE published a Rulemaking Fr amework Document for General Service Fluorescent Lamps, Incandescent Reflector Lamp s, and General Servic e Incandescent Lamps, which describes the procedural a nd analytical approaches DOE antic ipated using to evaluate the establishment of energy conserva tion standards for fluorescent a nd incandescent lamps. A PDF

1-5copy of the Framework Docu ment is available at http://www.eere.energy.gov/buildin gs/appliance_standards/reside ntial/pdfs/lam ps_framework.pd f

. DOE held a public meeting on June 15, 2006 to discuss procedural and analytical approaches to the rulemaking, and to inform a nd facilitate stakeholde rs’ involvement in the rulemaking process. The analytical framewor k presented at the public meeting described rulemaking analyses, such as the engineering anal ysis and the life-cycle cost (LCC) and payback period (PBP) analyses, the methods proposed fo r conducting them, and the relationships among the various analyses. See Table 1.4.1 for all the analyses discusse d at the public m eeting to be undertaken in each of the formal public rulemaki ng documents. PDF copies of the slides and other material associated with the public meeting are available at http://www.eere.energy.gov/build ings/appliance_standards/re sidential/lamps_ meeting_061506.ht ml

. During the public meeting and the Framewor k Document comment period, stakeholders, including manufacturers, trade associations, environmental a dvocates, and other interested parties submitted several comments about the la mps rulemaking. The major issues discussed were: (1) the rulemaking’s scope of coverage and definition of exemptions; (2) the development of product classes; (3) la mp life variation; (4) selection of representative lamps for analysis and baseline models; (5) appropriate methods and so urces for developing end-user price estimates; (6) updating test procedures; (7) the methodology for developing shipment estimates; (8) the need for system-based analysis for GSFL (i.e., an alyzing a lamp and a ballast in some scenarios); (9) the impact of higher efficacy lamps on buildi ng space conditioning loads; and (10) the use of tiered versus average electricity rates. Stakeholder comments submitted during the Framework Document comment period elaborated upon the i ssues raised at the public meeting. DOE worked with its contractors to address these issues in the anal yses. Detailed discussion of stakeholder comments is available in the ANOPR Federal Register notice for this rulemaking.

As part of the information gathering and sharing process, DOE organized and held interviews with three lamp manufacturers who ope rate in the U.S. lamps market. DOE had four objectives for these interviews: (1) solicit feedback on the draft engineering analysis (including methodology, prices, and lamp tec hnologies); (2) solici t feedback on topics related to the preliminary manufacturer impact analysis; (3) provide an opportunity early in the rulemaking process to express specific concerns to DOE; and (4) foster cooperation between manufacturers and DOE.

Two general topics related to the prelimin ary manufacturer impact analysis were discussed during each of the inte rviews: (1) lamp information and (2) preliminary manufacturer impact. Each topic contained around four to six issues, depending on the lamp type. These issues generally included market data, distributio n channels, anticipated consumer responses to standards, production and product mix, conversio n costs, and cumulative regulatory burden, among other issues. DOE incorporated the information gathered at the meetings into its engineering analysis and prelimin ary manufacturer impact analysis.

In March 2008, DOE published an ANOPR and he ld a public meeting. The major issues discussed were: (1) additional GSFL considered for coverage; (2) amended definitions for

1-6“colored fluorescent lamp” and “rated wattage”; (3) proposed product classes; (4) scaling to product classes not analyzed; (5 ) screening of desi gn options; (6) lamp operating hours; (7) GSFL energy consumption; (8) life-cycle cost calcul ations; (9) installation costs; (10) base-case market-share matrices in 2012; (11) shipment forecasts; (12) base-case and standards-case forecasted efficacies; (13) trial standard levels ; and (14) lamp production equipment conversion timeframe. Stakeholder comments submitted duri ng the subsequent comment period elaborated on the issues raised at the public meeting. A detailed discussion of stakeholder comments is available in the NOPR Federal Register notice for this rulemaking.

Following the publication of the ANOPR and the ANOPR public meeting, DOE held additional meetings with manufact urers as part of the consultati ve process for the manufacturer impact analysis. The interviews covered seve ral key issues, including : (1) rare earth phosphor availability and price; (2) reduction in GSFL product portfolio; (3) GSFL product margin impact; (4) IRL product performance issu es; (5) xenon gas availability a nd price; (6) elimination of product types in IRL product portf olio; (7) elimination of small diameter IRL lamps; (8) IRL competition; and (9) IRL market erosion.

For the LCC, PBP and national impact anal yses (NIA), DOE developed spreadsheets using Microsoft Excel®. The LCC and PBP sp readsheets calculate the economic impacts of replacing products with standard -compliant ones. The NIA spr eadsheets calculate the national energy savings (NES) and national net present values (NPVs) at various energy efficiency levels and include a model that forecasts the impacts of energy conservation standards at various levels on product shipments. These spreadsheets are available on the DOE website at http://www.eere.energy.gov/build ings/appliance_standards/

. In February 2009, DOE held a public meeting to discuss the NOPR. The NOPR was later published in the Federal Register on April 13, 2009. DOE sought comment in particular on the following issues: (1) the scope of covered produ cts; (2) the amended definition of “colored fluorescent lamp”; (3) product classes for IRL; (4 ) product classes for T5 lamps; (5) the 4-foot MBP residential engineering analys is; (6) performance characteristics of model lamps used in the engineering analysis; (7) the effi cacy levels for IRL; (8) the effi cacy levels for GSFL; (9) scaling to product classes not an alyzed; (10) ballast ope rating hours in all sector s and GSFL operating hours in the residential sector; (11) growth rates and market penetration in the shipments analysis; (12) base-case and standards-case market -share matrices; (13) the manufacturer impact analysis; (14) the determination of environmental impacts; (15) the selected trial standard levels; (16) the proposed standard levels; (17) alternative scenarios to achieve greater energy savings for GSFL; (18) other technology pathways to meet IRL TSL5. DOE received comments from over forty organizations including manufacturers, tr ade associations, energy conservation advocates, electric utilities, congressional re presentatives, and state government s. A detailed discussion of stakeholder comments and DOE’s revised anal ysis is available in the final rule Federal Register notice for this rulemaking.

1-71.5 STRUCTURE OF THE DOCUMENT

This final rule TSD outlines the analytical a pproaches used in this rulemaking. The TSD consists of 15 Chapters, an environmental a ssessment, a regulatory impact analysis, and appendices.

Chapter 1 Introduction: provides an overview of the appliance standards program and how it applies to the rulemaking for GSFL and IRL, and outlines the structure of the document

Chapter 2 Analytical Framework: desc ribes the rulemaking process step by step

Chapter 3 Market and Technology Assessmen t: characterizes the fluorescent and incandescent lamps market and the technologies available for increasing lamp efficacy, a nd outlines product classes

Chapter 4 Screening Analysis: determ ines which technology design options are viable for consideration in the engineering analysis

Chapter 5 Engineering Analysis: di scusses the sources and methods for developing the lamp and lamp-and- ballast designs analyzed and selecting efficacy levels

Chapter 6 Energy Use Characterization: discusses the sources and methods for developing energy use estimates for fluorescent and incandescent reflector lamps

Chapter 7 Product Price Determination: discusses the sources and methods used to develop end-user prices for th e lamps and lamp-and-ballast designs analyzed

Chapter 8 Life-Cycle Cost and Payb ack Period Analyses: discusses the economic effects of standards a nd compares the LCC and PBP of fluorescent and incandescent reflector lamps with and without higher energy conservation standards

Chapter 9 Trial Standard Levels: discusse s the efficacy levels for each analyzed product class as they pertain to the trial standard levels chosen for fluorescent and incandescent reflector lamps.

Chapter 10 Shipments Analysis: discusses the methods used for forecasting shipments with and without higher energy conservation standards

Chapter 11 National Impact Analysis: describes the national forecast of energy consumption, efficacy of new la mps, and annual fluorescent and incandescent lamp sales in the absence or presence of new standards

1-8Chapter 12 Life-Cycle Cost Sub-Group An alysis: discusses the methods to be used to study the effects of standards on a subgroup of fluorescent and incandescent reflector lamp consumers and compares the LCC and PBP of equipment with and without higher efficacy standards for these

consumers
Chapter 13 Manufacturer Impact Analysis: discusses effects of standards on the finances and profitability of fluor escent and incandescent reflector lamp manufacturers, and presents preliminary manufacturer impact analysis results

Chapter 14 Utility Impact Analysis: disc usses the effects of standards on electric utilities

Chapter 15 Employment Impact Analysis: discusses the effects of standards on national employment

Chapter 16 Environmental Assessment: di scusses the effects of standards on two pollutants, sulfur dioxide (SO 2 ) and nitrogen oxides (NO X ), as well as carbon emissions

Chapter 17 Regulatory Impact Analysis: discusses the impact of non-regulatory alternatives to energy conservation standards

Appendix AA Acronyms and Abbreviati ons: provides a set of acronyms and abbreviations used throughout the TSD.

Appendix 3A Lighting Definitions in the United States Code and Code of Federal Regulations: provides a set of existing statutory and regulatory definitions for fluorescent and incandescent lamps

Appendix 3B Xenon Availability and Pricing: provides a market analysis and price forecast for xenon gas

Appendix 3C Rare Earth Phosphor Availabi lity and Pricing: provides a market analysis and price forecast for rare earth phosphor

Appendix 5A Engineering Results Used in the LCC Subgroup, Shipments, and National Impacts Analyses: provides the characteristics of lamp designs and lamp-and-ballast designs considered in the shipments and NIA

Appendix 5B T5 Halophosphor Lamps: describes how the model for T5 halophosphor lamps was developed for us e in the base case analyses in the LCC and NIA

Appendix 5C Modified-Spectrum Scali ng Analysis: discusses the efficacy requirements for the modified spec trum product class were developed

1-91-10 Appendix 5D Advanced Infrared Coatings : provides technolo gical and pricing details on the on advanced IR coatings

Appendix 6A Energy End Use Characteriza tion Results Used in the LCC Subgroup, Shipments, and National Impacts Analysis: provides the characteristics of lamp designs and lamp-and-ballast designs considered in the LCC subgroup analysis and NIA.

Appendix 7A Additional End-User Price Result s: provides end-user price results for additional products considered in the NIA (e.g., compact fluorescent lamps)

Appendix 8A User Instructions for Life-C ycle Cost and Payback Period Spreadsheet

Appendix 8B Supplementary Life-Cycle Cost and Payback Period Results: provides results for the Monte Carlo and sensitivity analyses

Appendix 8C Residential Di scount Rate Distributions

Appendix 8D Hot Shock in Incandescent Reflector Lamps

Appendix 10A Supplementary Scenarios for the Shipments Analysis: provides additional inputs and results for the shipments analysis

Appendix 10B Market Segment-Based Ligh ting Expertise Analysis: provides the research and analysis DOE used to establish its market segment-based lighting expertise shipment scenario.

Appendix 10C Emerging Technologies Analys is: provides details on the analysis DOE conducted in developing its em erging technologies and existing technologies base-case shipment scenarios.

Appendix 11A User Instructions fo r Shipments and NIA Spreadsheets

Appendix 11B Supplementary Scenarios for the National Impacts Analysis: provides results for additional NIA scenarios

Appendix 13A Manufacturer Interview Guide

Appendix 14A Interpolation of Utility a nd Environmental Results from NEMS-BT Output