MEEA Policy Webinar: National Study on the Energy Savings of Appliance Standards

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The MEEA Policy Webinar: National Study on the Energy Savings of Appliance Standards was held on Thursday March 29, 2012. The webinar outlined the recently released report, The Efficiency Boom: Cashing In on the Savings from Appliance Standards by the Appliance Standards Awareness Project (ASAP) and the American Council on an Energy-Efficient Economy (ACEEE). The webinar highlighted some of the key findings from the report, particularly the enormous savings that have already been achieved from existing standards and the potential for additional savings from new and updated standards. The report reviewed 34 products, and the webinar focused on three areas: products appropriate for state standards; products where state support is requested at the federal level; and products currently covered by utility programs. A regional look was given on the current and potential cost effective savings from appliance standards, as well as an in-depth look at specific natural gas-fired products that are relevant to the Midwest including: clothes washers, boilers, furnaces, and unit heaters. The webinar concluded with a discussion that focused on gas programs and analysis of the potential impact of standards on the cost effectiveness of utility programs.

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MEEA Policy Webinar: National Study on the Energy Savings of Appliance Standards

  1. 1. MEEA Policy Webinar:National Study on the Energy Savings of Appliance Standards March 29, 2012
  2. 2. Agenda• Introduction• Review of the national study, The Efficiency Boom: Cashing In on the Savings from Appliance Standards• Midwest Perspective• Discussion
  3. 3. Midwest Energy Efficiency Alliance• MEEA is a collaborative network whose purpose is to advance energy efficiency to support sustainable economic development and environmental preservation.
  4. 4. Our Members Are…Diverse stakeholders in energy efficiency– Academic/Research Organizations– Manufacturers/Retailers– State and Local Governments– Utilities (Investor-Owned, Municipal, and Co-operative Utilities)– Energy Service Firms/Consultants– Leading Nonprofits– General Interest/Professionals
  5. 5. Estimated Annual Investment in Energy Efficiency in the Midwest EERS Legislative Legislation $1.800 • IL Gas Committee • WI EERS Admin Order overturned • IN Electric $1.600 Earlier Statewide EE Admin Order • MN • WI Electric, 1983 – Pilot legislation EERS Legislation $1.581 $1.400 1991 – CIP requirement • MI Electric, Gas Gas adopted • OH Electric Exec Order $1.200 Earlier Statewide EE • IA Gas, • IA Electric 1990 – Initial legislation $1.191 $1.000Billions 1996 – Legislation updated EERS Legislation • IL Electric $0.800 Earlier Statewide EE • MN Electric, • WI Gas 1999 - Public Benefit $0.600 Fund Adopted $0.400 $0.390 $0.200 $0.000 2002 2013 2000 2001 2003 2004 2005 2006 2007 2008 2009 2010 2012 2014 2015 2011
  6. 6. Future Midwest Efficiency Targets and Funding 2010 $1.06 billion 2015 $1.58 billion Minnesota Wisconsin 1.5% elec current 0.7% elec currently 1.5% gas current 0.4% gas currently Michigan 1% elec by 2012 0.75% gas by 2012 Iowa Ohio 1.4% elec currently 2% elec by 2015 1% gas currently gas in discussion Illinois Indiana 2% elec by 2015 2% elec by 2019 1.5% gas by 2017 gas none yet Kentucky 2010 EE funding Voluntary elec and gas 2015 EE funding Missouri (projected) IRP processMay 2011
  7. 7. Residential Building Energy Code Adoption in the Midwest As of March 2012 Code Level / Equivalence * No Mandatory Statewide Code 2006 IECC 2009 IECC 2012 IECC * 2009 Adopted by Major Eff. Eff. Municipality 07/12 03/12 * In Process to 2009 * In Process to 2012
  8. 8. Commercial Building Energy Code Adoption in the Midwest As of March 2012 Code Level / Equivalence * No Mandatory Statewide Code 90.1-2004 90.1-2007 90.1-2010 90.1-2007 Adopted by Eff. Major Municipality 07/12 * In Process to IECC 2012 / 90.1-2010
  9. 9. MEEA Policy Webinar March 29, 2012National Study on the Energy Savings of Appliance StandardsMarianne DiMascio, Appliance Standards Awareness Project Amanda Lowenberger, ACEEE
  10. 10. Agenda• Introduction• Overview of appliance and equipment standards• Report findings • Savings data • State tables • Product info• Midwest issues
  11. 11. Appliance Standards Awareness Project• ASAP is dedicated to increasing awareness of and support for appliance and equipment efficiency standards• Coalition-based approach• Founded in 1999
  12. 12. ASAP Steering Committee• American Council for an Energy-Efficient Economy*• Alliance to Save Energy*• Energy Foundation*• Natural Resources Defense Council*• Alliance for Water Efficiency• California Energy Commission• Consumer Federation of America• Earthjustice• National Consumer Law Center• Northeast Energy Efficiency Partnerships• Northwest Power and Conservation Council• Pacific Gas and Electric Company*Founders
  13. 13. The American Council for an Energy-Efficient Economy (ACEEE)• ACEEE is a nonprofit dedicated to advancing energy efficiency through research, communications, and conferences• Focus on: – End-Use Efficiency in Industry, Buildings, Utilities, and Transportation – Economic Analysis & Human Behavior – State & National Policy
  14. 14. Appliance Standards – The Basics• Minimum energy and water efficiency levels for appliances and equipment• National level - standards apply to the manufacture and import of products – About 55 products now covered• State level – standards apply to sale or installation of products
  15. 15. Federal/State Interplay• State standards have often led to strong federal standards• California historically has taken the lead• 16 states have passed state standards (none in the Midwest)• In general, federal standards preempt state standards
  16. 16. The Efficiency Boom: Cashing in onthe Savings from Appliance StandardsThe ASAP/ACEEE report:• Estimates impacts of existing national standards•• Estimates impacts of potential new and updated standards for 34 products• Provides national- and state-level impacts• Provides individual product discussions
  17. 17. What if There Were No Standards? 5500 5000 Savings from existing standards Electricity consumption (TWh) 4500 Electricity consumption without existing standards Projected electricity consumption with existing standards (EIA 2011) Electricity consumption with potential new 4000 standards 3500 3000 2011 2016 2021 2026 2031
  18. 18. Energy Savings from Existing Standards
  19. 19. Peak Demand Savings
  20. 20. Trillion Dollar Savings
  21. 21. Water Savings from New Standards
  22. 22. CO2 Reductions
  23. 23. Consumer Impacts
  24. 24. Midwest BenefitsWith new and updated standards, the midwest could save:Cumulatively through 2035:• 11 quads• $40 billion NPVIn 2025 (annual savings)• 54,000 Gwh electricity• 10 GW peak demand• 50 trillion Btu• 35 million metric tons of CO2
  25. 25. State Benefits• State-by-state benefits of potential new standards• Energy and water savings, peak capacity reduction, $$ savings• Interactive map onlinehttp://www.appliance-standards.org/map/benefits-from-federal
  26. 26. From Estimates to Savings• The savings are estimates based on ACEEE/ASAP proposed standard levels• Actual savings will depend on action by states and DOE• Stakeholder involvement is key – Provide data from programs – Get involved in national standards-setting process (sign or send letters, attend hearings) – Move state standards forward
  27. 27. Products
  28. 28. 34 Products EvaluatedResidential Commercial/Industrial LightingAir handlers Air cooled AC Candelabra & intermediateBattery chargers Automatic icemakers base incandescent lampsBoilers (natural gas) Clothes washers General service fluorescentClothes washers Distribution transformers lampsComputer equipment* Electric motors HID lampsDishwashers Fans, blowers & ventilation Incandescent reflectorExternal power supplies equipment* lamps (2 categories)Faucets* Warm air furnaces Luminaires*Game consoles* Pumps* Metal halide lamp fixturesMicrowaves Pre-rinse spray valves Outdoor lighting fixtures*Set-top boxes* Refrigeration equipmentTelevisions* Walk-in coolers and freezersToilets* Unit heatersWater heaters Urinals** Appropriate for state or national standards
  29. 29. Top Ten Energy Savers (new standards)• Product Cumulative Quads (through 2035)•• Residential electric water heaters 4.1• Incandescent reflector lamps 3.9• Residential air handlers 2.9• Walk-in coolers and freezers 2.4• Distribution transformers 2.3• Outdoor light fixtures 2.3• Set-top boxes 2.3• Electric motors 1.9• Computers and monitors 1.7• Candelabra & intermediate base 1.3incandescent lamps
  30. 30. Sample Product DiscussionOutdoor Light Fixtures (Pole-Mounted)Product description:Outdoor light fixtures (or outdoor luminaires) are light fixtures intended for outdoor use and suitablefor wet locations. Pole-mounted outdoor light fixtures are designed to be mounted on an outdoor poleand include area luminaires (for parking lots and other general areas), roadway and high-mastluminaires, decorative post-top luminaires, and dusk-to-dawn luminaires. Key statistics:Annual shipments: 6.6 millionCurrent standard level: No national or state standardsPotential standard:We analyzed standards for pole-mounted outdoor light fixtures equivalent to a fixture efficiency of 80lumens per watt. This would result in 18% savings. The incremental cost is $40, with an 18 monthpayback period.Status: No DOE rulemaking underway; proposed for consideration in the current California EnergyCommission docket by stakeholders. Estimated DOE final rule: 2014 Estimated DOE effective date: 2019 Estimated CEC final rule: 2013 Estimated CEC effective date: 2014Annual savings in 2035: 26 TWhNet present value savings: $14 billion
  31. 31. How Were Savings Determined?• Proposed standard levels are cost-effective• Proposed levels were chosen by a variety of methods: – Negotiated agreements – ENERGY STAR levels – State levels – Consultation with experts• Used national average retail energy and water prices for national savings; used state prices for state savings• Took into account % of market that already meets proposed standard
  32. 32. Clothes Washers• Waiting for DOE direct final rule based on 2010 negotiated agreement with AHAM (Association of Home Appliance Manufacturers) – Effective date 2015• Annual savings in 2035: 7 TWh; 34 trillion Btu; 24 billion gallons of water• Incremental cost of $57 and 2-year payback period MEF (modified energy WF (water factor ; factor; higher better) lower is better) Top-loading Tier 1 (2015) 1.72 8.0 Top-loading Tier 2 (2018) 2.0 6.0 Front-loading (2015) 2.2 4.5
  33. 33. Unit Heaters• Current standard prescriptive - interrupted or intermittent ignition device (IID) and either power venting or automatic flue damper; most have 80% thermal efficiency• Proposed standard level at 90% thermal efficiency (condensing technology)• Estimated DOE final rule 2013/effective 2016• Annual savings in 2035: 120 trillion Btu; 58 Tbtu in 2025• Incremental cost of $2640 and a 10 year payback period
  34. 34. Commercial WarmAir Furnaces• Current standard is 80% thermal efficiency (same as ASHRAE 90.1) but without prescriptive requirements• Potential standard would include prescriptive requirements (IID, jacket losses < 75%, power venting or flue damper)• Incremental cost of $300 with 5.5 year payback• Estimated DOE rule is 2013/effective 2016• Annual savings in 2035: 7.7 trillion Btu; 4.2Tbtu in 2025
  35. 35. Natural Gas Boilers• Current standard is 80% AFUE for steam; 82% for hot water• Potential standard based on condensing boilers with advanced controls; about 20% savings• Incremental cost of $900 paid back in about 7 years• Estimated DOE rule 2015/effective 2020• Annual savings in 2035: 40 trillion Btu; 14Tbtu in 2025
  36. 36. Set-top Boxes• No state or national standards; – DOE rulemaking began December 2011 – CEC likely state standard in June 2013• 5-year lag time between expected adoption (2013) and effective date (2018)• Potential savings of about 60%• Cable and satellite companies provide to STBs to consumers• Potential for voluntary agreements to increase energy efficiency for STB
  37. 37. Key Points for the Midwest• Large energy savings from standards: – Lessen demand for new power plants; – Contribute to CO2 reduction goals• New standards may impact utility programs• Opportunity for state standards in 2013-2014• Stakeholder involvement needed to realize savings
  38. 38. Additional Products
  39. 39. Gas Furnaces• Effective date for DOE standards: – Non-weatherized – May 1, 2013; – Weatherized – Jan 1, 2015• 2 regions – north 90% AFUE; (includes all MEEA states except Kentucky) – south 80% AFUE (Kentucky included here)• Link to DOE furnace standards
  40. 40. Central AC and Heat Pumps• Effective date for DOE standards – Central A/C, HP – Jan 1 2015• 3 regions: – North; South (hot, humid); and Southwest (hot, dry)• Many product classes (2 listed here) North South Southwest Split-System SEER = 13 SEER = 14 14 SEER EER 12.2 < 45,000 Btu/hr EER 11.7 >45,000 Btu/hr Single-Package SEER = 14 SEER = 14 SEER = 14 EER = 11
  41. 41. Enforcement of Regional Standards• Ongoing rulemaking at DOE & FTC to determine how to: – Enforce regional standards – Label products• DOE proposed 3 approaches with varying notification and information requirements for manufacturers, distributors, and contractors• Possible waivers where installations not technically feasible or prohibitively expensive (for furnaces)• For further info, see the DOE framework document
  42. 42. Contact InfoMarianne DiMascioOutreach Director, ASAP781-312-8999mdimascio@standardsasap.orgwww.appliance-standards.orgAmanda LowenbergerACEEE202-5070-4039alowenberger@aceee.orgwww.aceee.org

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