[Federal Register Volume 79, Number 203 (Tuesday, October 21, 2014)]
[Proposed Rules]
[Pages 62899-62910]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-24983]
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DEPARTMENT OF ENERGY
10 CFR Part 431
[Docket Number EERE-2014-BT-STD-0042]
RIN 1904-AD34
Energy Conservation Program for Certain Industrial Equipment:
Energy Conservation Standards for Commercial Water Heating Equipment
AGENCY: Office of Energy Efficiency and Renewable Energy, Department of
Energy.
ACTION: Request for information (RFI).
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SUMMARY: The U.S. Department of Energy (DOE) is initiating a rulemaking
to consider amended energy conservation standards for commercial water
heaters, hot water supply boilers, and unfired hot water storage tanks
(commercial water heating equipment). Once completed, this rulemaking
will fulfill DOE's statutory obligation to either propose amended
energy conservation standards for commercial
[[Page 62900]]
water heating equipment or to determine that the existing standards do
not need to be amended. This notice seeks to solicit information to
help DOE determine whether national standards more stringent than those
currently in place would result in a significant amount of additional
energy savings and whether such amended national standards would be
technologically feasible and economically justified. In overview, this
document presents a brief description of the analysis DOE plans to
perform for this rulemaking and requests comment on various issues
relating to each of the analyses (e.g., market assessment, engineering
analysis, energy use analysis, life-cycle cost and payback period
analysis, and national impact analysis). Although this document
contains several specific topics on which DOE is particularly
interested in receiving written comment, DOE welcomes suggestions and
information from the public on any subject within the scope of this
rulemaking, including topics not raised in this RFI.
DATES: Written comments and information are requested on or before
November 20, 2014.
ADDRESSES: Interested parties are encouraged to submit comments
electronically. However, interested persons may submit comments,
identified by docket number EERE-2014-BT-STD-0042 and/or regulatory
identification number (RIN) 1904-AD34 by any of the following methods:
Federal eRulemaking Portal: www.regulations.gov. Follow
the instructions for submitting comments.
Email: [email protected]. Include
docket number EERE-2014-BT-STD-0042 and/or RIN 1904-AD34 in the subject
line of the message. Submit electronic comments in WordPerfect,
Microsoft Word, PDF, or ASCII file format, and avoid the use of special
characters or any form of encryption.
Postal Mail: Ms. Brenda Edwards, U.S. Department of
Energy, Building Technologies Program, Mailstop EE-5B, 1000
Independence Avenue SW., Washington, DC 20585-0121. If possible, please
submit all items on a compact disc (CD), in which case it is not
necessary to include printed copies.
Hand Delivery/Courier: Ms. Brenda Edwards, U.S. Department
of Energy, Building Technologies Program, 6th Floor, 950 L'Enfant Plaza
SW., Washington, DC 20024. Telephone: (202) 586-2945. If possible,
please submit all items on a CD, in which case it is not necessary to
include printed copies.
For detailed instructions on submitting comments and additional
information on the rulemaking process, see section Public Participation
of this document.
FOR FURTHER INFORMATION CONTACT: Requests for additional information
may be sent to Mr. Ron Majette, U.S. Department of Energy, Office of
Energy Efficiency and Renewable Energy, Building Technologies Program,
EE-5B, 1000 Independence Avenue SW., Washington, DC 20585-0121.
Telephone: (202) 586-7935. Email: [email protected].
Ms. Sarah Butler, U.S. Department of Energy, Office of the General
Counsel, GC-71, 1000 Independence Avenue SW., Washington, DC 20585-
0121. Telephone: (202) 586-1777. Email: [email protected].
For information on how to submit or review public comments, contact
Ms. Brenda Edwards, U.S. Department of Energy, Office of Energy
Efficiency and Renewable Energy, Building Technologies Program,
Mailstop EE-2J, 1000 Independence Avenue SW., Washington, DC 20585-
0121. Telephone: (202) 586-2945. Email: [email protected].
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Introduction
A. Authority
B. Background
C. Rulemaking Process
II. Planned Rulemaking Analyses
A. Test Procedure
B. Market Assessment
C. Technology Options for Consideration
D. Engineering Analysis
E. Markups Analysis
F. Energy Use Analysis
G. Life-Cycle Cost and Payback Period Analysis
H. Shipments Analysis
I. National Impact Analysis
III. Submission of Comments
I. Introduction
A. Authority
Title III, Part C \1\ of the Energy Policy and Conservation Act of
1975 (EPCA or the Act), Public Law 94-163 (42 U.S.C. 6311-6317, as
codified), added by Public Law 95-619, Title IV, Sec. 441(a),
established the Energy Conservation Program for Certain Industrial
Equipment, which includes provisions covering the commercial water
heating equipment that are the subject of this notice.\2\ In general,
this program addresses the energy efficiency of certain types of
commercial and industrial equipment. Relevant provisions of the Act
include definitions (42 U.S.C. 6311), energy conservation standards (42
U.S.C. 6313), test procedures (42 U.S.C. 6314), labeling provisions (42
U.S.C. 6315), and the authority to require information and reports from
manufacturers (42 U.S.C. 6316).
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\1\ For editorial reasons, upon codification in the U.S. Code,
Part C was re-designated Part A-1.
\2\ All references to EPCA in this document refer to the statute
as amended through the American Energy Manufacturing Technical
Corrections Act of 2012, Public Law 112-210 (Dec. 18, 2012).
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The initial Federal energy conservation standards and test
procedures for commercial water heating equipment were added to EPCA as
an amendment made by the Energy Policy Act of 1992 (EPACT). (42 U.S.C.
6313(a)(5)) These initial energy conservation standards corresponded to
the efficiency levels contained in the American Society of Heating,
Refrigerating and Air-Conditioning Engineers (ASHRAE) Standard 90.1
(ASHRAE Standard 90.1) in effect on October 24, 1992. The statute
provided that if the efficiency levels in ASHRAE Standard 90.1 were
amended after October 24, 1992, the Secretary must establish an amended
uniform national standard at new minimum levels for each equipment type
specified in ASHRAE Standard 90.1, unless DOE determines, through a
rulemaking supported by clear and convincing evidence, that national
standards more stringent than the new minimum levels would result in
significant additional energy savings and be technologically feasible
and economically justified. (42 U.S.C. 6313(a)(6)(A)(ii)(II)) In
deciding whether a proposed amended standard is economically justified,
DOE must, after receiving comments on the proposed standard, determine
whether the benefits of the proposed standard exceed its burdens by, to
the greatest extent practicable, considering the following seven
factors:
1. The economic impact of the standard on manufacturers and
consumers of the equipment subject to the standard;
2. The savings in operating costs throughout the estimated average
life of the covered equipment in the type (or class) compared to any
increase in the price, initial charges, or maintenance expenses for the
covered products that are likely to result from the standard;
3. The total projected amount of energy savings, or as applicable,
water savings, likely to result directly from the standard;
[[Page 62901]]
4. Any lessening of the utility or the performance of the covered
equipment likely to result from the standard;
5. The impact of any lessening of competition, as determined in
writing by the Attorney General, that is likely to result from the
standard;
6. The need for national energy and water conservation; and
7. Other factors the Secretary of Energy (Secretary) considers
relevant. (42 U.S.C. 6313(a)(6)(B)(ii))
Section 5(b) of the American Energy Manufacturing Technical
Corrections Act (AEMTCA), Public Law 112-210 (Dec. 18, 2012), amended
EPCA to include a requirement for DOE to conduct an evaluation of
whether to amend the standards for certain types of commercial and
industrial equipment \3\ every six years. (42 U.S.C. 6313(a)(6)(C)(i))
AEMTCA also mandated that DOE must publish the first document of an
expedited rulemaking within 1 year of the date of AEMTCA's enactment
(i.e., December 18, 2012) to consider amended energy conservation
standards for any covered equipment of those types as to which more
than six years had elapsed since the issuance of the most recent final
rule establishing or amending a standard for the equipment. (42 U.S.C.
6313(a)(6)(C) (vi)) \4\
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\3\ This equipment includes small, large, and very large
commercial package air conditioning and heating equipment, packaged
terminal air conditioners and heat pumps, warm-air furnaces,
packaged boilers, storage water heaters, instantaneous water
heaters, and unfired hot water storage tanks. (42 U.S.C. 6313(a)(6))
\4\ It is noted that AEMTCA inadvertently assigned two separate
provisions to 42 U.S.C. 6313(a)(6)(C)(vi). The provision cited above
is the one most relevant to this RFI.
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DOE issued the most recent final rule for commercial water heating
equipment on January 12, 2001 (hereinafter, the ``January 2001 final
rule''), which adopted the amended energy conservation standards at
levels equivalent to efficiency levels in ASHRAE Standard 90.1, as it
was revised in October 1999. 66 FR 3336. Because more than six years
has passed since issuance of the last final rule for commercial water
heating equipment, DOE is required to publish either a notice of
determination that the current standards for these equipment types do
not need to be amended, or a notice of proposed rulemaking proposing
amended energy conservation standards for these equipment types. In
addition, the energy conservation standards for commercial oil-fired
storage water heaters were increased to a level beyond the current
federal standards in ASHRAE Standard 90.1-2013. Therefore DOE is
required to adopt these new standards unless there is clear evidence
that adopting stricter standards would produce significant additional
energy savings while being both technologically feasible and
economically justified.
To meet the requirements under AEMTCA, DOE is reviewing its
existing energy conservation standards for the equipment types listed
in 42 U.S.C. 6313(a) for which at least six years have elapsed since
the issuance of the most recent final rule, including the commercial
water heating equipment that is the subject of this notice. This notice
represents the initiation of the mandatory review process required by
AEMTCA. DOE seeks input from the public to assist with its
determination on whether to amend the current standards for commercial
water heating equipment.
B. Background
On October 29, 1999, ASHRAE released an updated Standard 90.1-1999,
which included amended efficiency levels for numerous categories of
commercial water heaters, hot water supply boilers, and unfired hot
water storage tanks. DOE evaluated these efficiency levels and
subsequently adopted energy conservation standards affecting eight
different water heating equipment categories in a final rule published
in the January 2001 final rule. 66 FR 3336. However, DOE did not adopt
the efficiency level contained in ASHRAE Standard 90.1-1999 for
commercial electric storage water heaters, since the ASHRAE Standard
90.1-1999 level was less stringent than the standard in EPCA and would
have increased energy consumption, and under those circumstances, DOE
could not adopt the new efficiency level. 66 FR at 3350. The current
Federal energy conservation standards for this equipment including
those adopted in the January 2001 final rule are shown in Table 1.
Table 1--Minimum Efficiency Levels for Commercial Water Heating Equipment
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Energy conservation standard \a\ \b\
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Minimum
Equipment Size thermal
efficiency Maximum standby loss \c\
(percent)
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Electric storage water heaters.......... All........................ N/A 0.30 + 27/Vm (%/hr).
Gas-fired storage water heaters......... <=155,000 Btu/hr........... 80 Q/800 + 110(Vr)\1/2\ (Btu/
hr).
>155,000 Btu/hr............ 80 Q/800 + 110(Vr)\1/2\ (Btu/
hr).
Oil-fired storage water heaters......... <=155,000 Btu/hr........... 78 Q/800 + 110(Vr)\1/2\ (Btu/
hr).
>155,000 Btu/hr............ 78 Q/800 + 110(Vr)\1/2\ (Btu/
hr).
Gas-fired instantaneous water heaters <10 gal.................... 80 N/A.
and hot water supply boilers.
>=10 gal................... 80 Q/800 + 110(Vr)\1/2\ (Btu/
hr).
Oil-fired instantaneous water heaters <10 gal.................... 80 N/A.
and hot water supply boilers.
>=10 gal................... 78 Q/800 + 110(Vr)\1/2\ (Btu/
hr).
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Equipment Size Minimum thermal insulation
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Unfired hot water storage tank.......... All........................ R-12.5
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\a\ Vm is the measured storage volume and Vr is the rated volume, both in gallons. Q is the nameplate input rate
in Btu/hr.
\b\ For hot water supply boilers with a capacity of less than 10 gallons: (1) The standards are mandatory for
products manufactured on and after October 21, 2005, and (2) products manufactured prior to that date, and on
or after October 23, 2003, must meet either the standards listed in this table or the applicable standards in
subpart E of this part for a ``commercial packaged boiler.''
\c\ Water heaters and hot water supply boilers having more than 140 gallons of storage capacity need not meet
the standby loss requirement if (1) the tank surface area is thermally insulated to R-12.5 or more, (2) a
standing pilot light is not used and (3) for gas or oil-fired storage water heaters, they have a fire damper
or fan assisted combustion.
[[Page 62902]]
DOE reviewed and adopted amended test procedures for commercial
water heating equipment in a direct final rule published on October 21,
2004. 69 FR 61974. These test procedure amendments incorporated by
reference certain sections of the American National Standards Institute
Standard (ANSI) Z21.10.3-1998 (ANSI Z21.10.3-1998), ``Gas Water Heaters
Volume III Storage Water Heaters, with Input Ratings Above 75,000 Btu
per Hour, Circulating and Instantaneous.'' Id. On May 16, 2012, DOE
published a final rule in the Federal Register to update the test
procedures for certain commercial water heating equipment by adopting
and incorporating by reference the most recent version of the relevant
industry test procedure, ANSI Z21.10.3-2011. 77 FR 28928. These updates
did not materially alter the procedure.
The divisions between residential and commercial water heaters were
first established in EPCA. The current specifications for residential
water heaters are shown below in Table 2, as specified in 10 CFR 430.2.
A water heater exceeding any of the limits expressed below for input,
volume, input/volume, or max temperature is classified as commercial
water heating equipment.
Table 2--Classification of Residential Water Heating Equipment
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Input/volume Max temp
Type Input Volume (gal) (BTU/(h*gal)) ([deg]F)
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Gas Storage........................... <75,000 BTU/h........... 20-100 <4,000 <180
Oil Storage........................... <105,000 BTU/h.......... <50 <4,000 <180
Electric Storage...................... <12 kW.................. 20-120 <4,000 <180
Gas Instantaneous..................... 50,000-200,000 BTU/h.... <2 >=4,000 <180
Oil Instantaneous..................... <210,000 BTU/h.......... .............. >=4,000 <180
Electric Instantaneous................ <12 kW.................. .............. >=4,000 <180
Heat Pump \a\......................... <12 kW.................. <120 .............. <180
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\a\ To be classified as residential, heat pump water heaters must also not exceed a current rating 24 A or 250
V.
C. Rulemaking Process
In addition to the specific statutory criteria discussed in section
I.A that DOE must follow in prescribing amended standards for covered
equipment, DOE uses a specific process to assess the appropriateness of
amending the standards that are currently in place for a given type of
equipment. For commercial water heating equipment, DOE plans to conduct
its analyses in stages, with a positive result leading to a subsequent
stage of the analysis. Under this approach, DOE will first evaluate
whether more-stringent standards are technologically feasible and
whether such standards would result in significant additional energy
savings. If either of these criteria is not met, DOE will conduct no
further analysis, because the statutory criteria for adoption of the
more-stringent standard could not be met. However, if this initial
assessment is positive, DOE will conduct in-depth technical analyses of
the costs and benefits of the potential amended standards to determine
whether such amended standards would be economically justified. The
analyses undertaken at this stage would include: (1) Engineering
analysis; (2) energy use analysis; (3) markups analysis; (4) life-cycle
cost and payback period analysis; and (5) national impacts analysis.
If, after conducting those analyses, DOE determines that there is a
high likelihood that more-stringent standards would be economically
justified, DOE will conduct downstream analyses including: (1)
Manufacturer impacts analysis; (2) emission impacts analysis; (3)
utility impacts analysis; (4) employment impacts analysis; and (5)
regulatory impacts analysis. DOE will also conduct several other
analyses that support those previously listed, including the market and
technology assessment, the screening analysis (which contributes to the
engineering analysis), and the shipments analysis (which contributes to
the national impact analysis). As detailed throughout this RFI, DOE is
publishing this notice as the first step in the analytical process and
is requesting input and data from interested parties to aid in the
development of the technical analyses.
DOE anticipates moving from this RFI directly to publication of
either a determination that the commercial water heating equipment
standards do not need to be amended or a notice of proposed rulemaking
for amended standards.
II. Planned Rulemaking Analyses
In this section, DOE summarizes the rulemaking analyses and
identifies a number of issues on which it seeks input and data in order
to aid in the development of the technical and economic analyses to
determine whether amended energy conservation standards may be
warranted. In addition, DOE welcomes comments on other issues relevant
to the conduct of this rulemaking that may not specifically be
identified in this notice.
A. Test Procedures
DOE's existing test procedures for commercial water heating
equipment are specified at 10 CFR 431.106, and reference ANSI Z21.10.3-
2011. The test procedures provide methods for determining the thermal
efficiency and standby loss of gas-fired, oil-fired, and electric
storage and instantaneous water heaters. AEMTCA amended EPCA to require
that DOE publish a final rule establishing a uniform efficiency
descriptor and accompanying test methods for covered residential water
heaters and commercial water heating equipment by December 18, 2013
(i.e., within one year of the enactment of AEMTCA). (42 U.S.C.
6295(e)(5)(B)) The final rule must replace the current energy factor
(for residential water heaters) and thermal efficiency and standby loss
(for commercial water heaters) metrics with a uniform efficiency
descriptor. (42 U.S.C. 6295(e)(5)(C)) AEMTCA allowed DOE to provide an
exclusion from the uniform efficiency descriptor for specific
categories of otherwise covered water heaters that do not have
residential uses, that can be clearly described, and that are
effectively rated using the current thermal efficiency and standby loss
descriptors. (42 U.S.C. 6295(e)(5)(F))
DOE published a final rule for test procedures for residential
water heaters and certain commercial water heaters on July 11, 2014
that, among other things, established the Uniform Energy Factor (UEF),
a revised version of the current residential Energy Factor metric, as
the uniform efficiency descriptor required by AEMTCA. 79 FR 40542. The
uniform efficiency descriptor only applies to commercial water heaters
that meet the definition of ``residential-duty commercial water
heater,'' which is
[[Page 62903]]
defined as any gas-fired, electric, or oil storage or instantaneous
commercial water heater that meets the following conditions:
(1) For models requiring electricity, uses single-phase external
power supply;
(2) Is not designed to provide outlet hot water at temperatures
greater than 180[emsp14][deg]F; and
(3) Is not excluded by any of the specified limitations regarding
rated input and storage volume established in Table 3 (below). Id. at
40546
The input and volume limitations for the definition of a
residential-duty commercial water heater are shown below by equipment
class.
Table 3--Classification of Residential-Duty Commercial Water Heating
Equipment
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Indicator of non-residential
Water heater type application
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Gas-fired Storage...................... Rated input >105 kBtu/h; Rated
storage volume >120 gallons.
Oil-fired Storage...................... Rated input >140 kBtu/h; Rated
storage volume >120 gallons.
Electric Storage....................... Rated input >12 kW; Rated
storage volume >120 gallons.
Heat Pump with Storage................. Rated input >12 kW; Rated
current >24 A at a rated
voltage of not greater than
250 V; Rated storage volume
>120 gallons.
Gas-fired Instantaneous................ Rated input >200 kBtu/h; Rated
storage volume >2 gallons.
Electric Instantaneous................. Rated input >58.6 kW; Rated
storage volume >2 gallons.
Oil-fired Instantaneous................ Rated input >210 kBtu/h; Rated
storage volume >2 gallons.
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Commercial water heaters not meeting the definition of residential-
duty commercial water heater were deemed to be sufficiently
characterized by the current thermal efficiency and standby loss
metrics.
This rulemaking, therefore, includes commercial water heating
equipment covered by the uniform efficiency descriptor, as well as
water heaters that will continue to be covered by the existing thermal
efficiency and standby loss metrics. DOE plans to conduct analyses for
this rulemaking using the UEF for residential-duty commercial water
heaters. For residential-duty commercial water heaters, DOE will
develop a conversion factor (as required by AEMTCA) that will be used
to translate the existing thermal efficiency and standby loss ratings
into UEF for its analyses. The conversion factor will be developed as
part of a separate rulemaking. DOE plans to conduct analyses for all
other types of commercial water heaters (i.e., other than the
residential-duty commercial water heaters) using the existing thermal
efficiency and standby loss metrics.
DOE notes that for unfired storage tanks, the Federal energy
conservation standard is expressed as an R-value requirement for the
tank thermal insulation. In an RFI published on February 27, 2014 that
addresses commercial water heater test procedures (February 2014 RFI),
DOE sought comment on whether a single test method for R-value should
be used (and if so, which industry method is most appropriate), or
whether replacing R-value with standby loss or some other metric as the
energy efficiency metric for unfired storage tanks would be
appropriate. 79 FR 10999. Any amended standards for unfired storage
tanks for this rulemaking will be established in the metric chosen in
the noted test procedure rulemaking.
Lastly, DOE may consider including commercial heat pump water
heaters within the scope of coverage of this rulemaking, as discussed
below in Section II.B. DOE does not currently have a test procedure for
determining the energy efficiency of commercial heat pump water
heaters, but may develop a procedure as described in the February 2014
RFI. If DOE ultimately adopts a test method for commercial heat pump
water heaters, then DOE would consider those products in the analyses
for this rulemaking.
B. Market Assessment
The market and technology assessment provides information about the
commercial water heating equipment industry that will be used
throughout the rulemaking process. For example, this information will
be used to determine whether the existing equipment class structure
requires modification based on the statutory criteria for setting such
classes and to explore the potential for technological improvements in
the design and manufacturing of such equipment. DOE uses qualitative
and quantitative information to assess the past and present industry
structure and market characteristics. DOE will use existing market
materials and literature from a variety of sources, including industry
publications, trade journals, government agencies, and trade
organizations. DOE will also consider conducting interviews with
manufacturers to assess the overall market for commercial water heating
equipment.
The current equipment classes as established in the Code of Federal
Regulations (CFR) for commercial water heaters are characterized by
energy source, equipment type (i.e., storage vs. instantaneous and hot
water supply boilers), and size (i.e., input capacity rating and rated
storage volume). Unfired hot water storage tanks are also included in a
separate equipment class. As a starting point, DOE plans to use the
existing equipment class structure which divides commercial water
heating equipment into the equipment classes as shown in the table in
10 CFR 431.110 and summarized below in Table 4.
Table 4--Equipment Classes for Commercial Water Heating Equipment
------------------------------------------------------------------------
Equipment Size
------------------------------------------------------------------------
Electric storage water heaters....... All.
Gas-fired storage water heaters...... <=155,000 Btu/h.
>155,000 Btu/h.
Oil-fired storage water heaters...... <=155,000 Btu/h.
>155,000 Btu/h.
Gas-fired instantaneous water heaters <10 gal.
and hot water supply boilers.
>=10 gal.
Oil-fired instantaneous water heaters <10 gal.
and hot water supply boilers.
[[Page 62904]]
>=10 gal.
Unfired hot water storage tank....... All.
------------------------------------------------------------------------
DOE plans to create separate equipment classes for residential-duty
commercial water heaters, as residential-duty commercial water heaters
will use a different metric for energy conservation standards (see
section II.A). DOE will consider additional equipment classes for
capacities or other performance-related features which inherently
affect efficiency and justify the establishment of a different energy
conservation standard. DOE will also consider consolidating equipment
classes, if warranted. DOE notes that both gas-fired and oil-fired
storage water heaters are divided into equipment classes for equipment
with an input capacity at or below 155,000 Btu/h and equipment with an
input capacity above 155,000 Btu/h. However, as shown in Table 1, the
current energy conservation standard levels are identical for both
equipment classes. DOE may consider consolidating these equipment
classes to remove the input capacity designations, if appropriate.
DOE may also expand the scope of this rulemaking to include covered
equipment that is not currently regulated, such as electric
instantaneous water heaters or commercial heat pump water heaters, and
may consider separate product classes for such equipment. DOE notes
that EPCA defines ``commercial instantaneous water heaters'' as water
heaters with an input rating of at least 4,000 Btu/h per gallon of
stored water. (42 U.S.C. 6311(12)(B)) DOE believes this definition
could include both commercial electric instantaneous water heaters and
commercial electric add-on heat pump water heaters. Commercial electric
heat pump water heaters may include both units that do not contain any
storage volume and can be externally connected to a storage tank or
tank water heater (i.e., add-on type) and units that contain an
integrated heat pump and storage tank (i.e., integrated type). DOE is
not aware of any integrated type commercial heat pump water heaters
currently on the market but may consider their inclusion due to their
possible development in the future.\5\ However, any such units would be
classified as commercial electric storage water heaters. Commercial
add-on electric heat pump water heaters may also extract heat for water
heating from either air (air-source) or water (water-source), both of
which DOE could consider for new efficiency standards.
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\5\ A commercial integrated heat pump water heater is an
integrated heat pump water heater that surpasses any of the
limitations for heat pump water heaters expressed in Table 2.
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If appropriate, DOE may also consider establishing efficiency
standards separately for electric instantaneous water heaters using
electric resistance heat. However, DOE notes that the thermal
efficiency of electric instantaneous water heaters is already nearly
100 percent due to the high efficiency of electric resistance heating
elements, and that a thermal efficiency standard may be unnecessary.
Issue 1: DOE requests feedback on the current equipment classes and
seeks information regarding other equipment classes it should consider
for inclusion in its analysis.
Issue 2: DOE requests comment on whether the 155,000 Btu/h input
capacity divisions in the current equipment classes for gas-fired and
oil-fired storage water heaters are necessary.
Issue 3: DOE seeks comment on whether to include commercial
electric instantaneous water heaters and/or commercial heat pump water
heaters in the scope of this rulemaking.
Issue 4: DOE seeks comment on whether to include both add-on and
integrated commercial heat pump water heater types in the scope of this
rulemaking.
Issue 5: DOE seeks comment on whether to include both air-source
and water-source commercial heat pump water heater types in the scope
of this rulemaking.
C. Technology Options for Consideration
DOE uses information about existing and past technology options and
prototype designs to help identify technologies that manufacturers
could use to meet and/or exceed energy conservation standards. In
consultation with interested parties, DOE intends to develop a list of
technologies to consider in its analysis. Initially, this list will
include all those technologies considered to be technologically
feasible and will serve to establish the maximum technologically
feasible design. DOE is currently considering the specific technologies
and design options listed below.
Heat traps
Improved insulation \6\
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\6\ This includes increasing jacket insulation, insulating the
tank bottom or using a plastic tank (electric only), advanced
insulation types, foam insulation, and pipe and fitting insulation.
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Power and direct venting
Fully condensing technology \7\
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\7\ This includes storage, instantaneous, and hybrid heaters, as
well as pulse combustion.
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Improved flue design \8\
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\8\ This includes using high-efficiency flue baffles, multiple
flues, submerged combustion chambers, and optimized flue geometry.
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Sidearm heating and two-phase thermosiphon technology
Electronic ignition systems
Improved heat pump water heaters \9\
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\9\ This includes absorption heat pump water heaters, carbon
dioxide heat pump water heaters, advanced compressors, and using
centrifugal fans.
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Thermophotovoltaic and thermoelectric generators
Improved controls \10\
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\10\ This includes incorporating timer controls, modulating
controls, and intelligent and wireless controls and communication.
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Self-cleaning
Improved burners \11\
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\11\ This includes incorporating variable firing-rate burners,
low-stage firing burners, and modulating burners.
Issue 6: DOE seeks information related to these or other
efficiency-improving technologies. Specifically, DOE is interested in
comments regarding their applicability to the current market and how
these technologies improve efficiency of commercial water heating
equipment.
D. Engineering Analysis
The engineering analysis estimates the cost-efficiency relationship
of equipment at different levels of increased energy efficiency. This
relationship serves as the basis for the cost-benefit calculations for
commercial customers, manufacturers, and the nation. In determining the
cost-efficiency relationship, DOE will estimate the increase in
manufacturer cost associated with increasing the efficiency of
equipment above the baseline to the maximum technologically feasible
(``max-tech'') efficiency level for each equipment
[[Page 62905]]
class. The baseline model is used as a reference point for each
equipment class in the engineering analysis and the life-cycle cost and
payback-period analyses. DOE considers equipment that just meets the
current minimum energy conservation standard as baseline equipment. For
equipment that does not have an existing minimum energy conservation
standard, DOE considers the least efficient equipment on the market as
baseline equipment. DOE will establish a baseline for each equipment
class using the applicable metric(s): Thermal Efficiency and Standby
Loss, or Uniform Energy Factor.
Issue 7: DOE requests comment on approaches that it should consider
when determining a baseline for equipment classes being transitioned to
the uniform descriptor, including information regarding the merits and/
or deficiencies of such approaches.
Issue 8: DOE requests information on max-tech efficiency levels
achievable in the current market and associated technologies.
In order to create the cost-efficiency relationship, DOE
anticipates that it will structure its engineering analysis using both
a reverse-engineering (or cost-assessment) and catalog teardown
approach. A reverse-engineering or cost-assessment approach relies on a
teardown analysis of representative units at the baseline efficiency
level and higher efficiency levels up to the maximum technologically
feasible designs. A teardown analysis (or physical teardown) determines
the production cost of a piece of equipment by disassembling the
equipment ``piece-by-piece'' and estimating the material and labor cost
of each component. A catalog teardown approach uses published
manufacturer catalogs and supplementary component data to estimate the
major physical differences between a piece of equipment that has been
physically disassembled and another piece of similar equipment. These
two methods would be used together to help DOE estimate the
manufacturer production cost of equipment at various efficiency levels.
Issue 9: DOE requests feedback on the planned approach for the
engineering analysis and on the appropriate representative capacities
and characteristics for each equipment class.
1. Analyzing Standby Loss Standards
For each equipment class examined, the baseline, or current
standard is determined, and then several intermediate efficiency levels
are analyzed incrementally up to the max-tech level, which corresponds
to the most efficient unit on the market. For the analysis of amended
thermal efficiency standards and uniform efficiency descriptor
standards, DOE expects this will be a straightforward process. However,
selecting efficiency levels for analysis of amended standby loss (SL)
standards for gas and oil storage heaters is more complex for several
reasons.
First, the standard for standby loss (BTU/hr) oil and gas storage
water heaters is a multivariable equation depending upon both rated
input (Q, BTU/hr) and volume (V, gal), as shown below.
[GRAPHIC] [TIFF OMITTED] TP21OC14.001
As discussed later in this section, DOE plans to analyze representative
units for the engineering analysis that have the most common attributes
of a given equipment class. As a result, DOE will select equipment for
analysis with storage volumes and input ratings at discrete
representative values within the range of products available on the
market. DOE will then need to expand its analysis of efficiency levels
at the representative volume(s) and input(s) for the market, and these
levels must be extrapolated to apply to the range of volumes and inputs
covered by the standard. Because the current standard depends on both
volume and input without an intercept, it is only possible to change
the slopes for each variable when modifying the standard to fit the
analyzed efficiency levels. This could be undesirable if shifting the
standard up or down (maintaining the slopes) would better fit the
distribution of units outside the representative input and volume.
Analysis performed thus far by DOE using an approach of varying the
volume slope to change the relationship between SL and input for units
at the representative volume appears to yield viable results.
One method to avoid issues stemming from adjusting a multi-variable
standard is to remove one of the variables from the equation and
establish discrete bins for that variable. Within each of these bins,
the SL standard would be a single-variable equation, allowing for
manipulation of either the slope or intercept. While bins could be
created for input or volume, preliminary analysis indicates that
creating bins for volume with standards based on input within each bin
would yield better trends for establishing new standard levels.
Issue 10: DOE requests comment on approaches to selecting
efficiency levels for its analysis of amended SL energy conservation
standards for gas and oil storage heaters, including the possibility of
establishing discrete bins for one of the variables and establishing SL
standards based on one instead of two variables.
The second issue is that the SL is calculated using the amount of
fuel consumed over a given time period, and therefore the heat loss as
measured in the SL is partially dependent on the thermal efficiency
(TE) of the water heater. Because TE for commercial gas storage heaters
can vary from 80-99%, TE can account for a difference of up to 19% of
SL values (only 4% for oil storage heaters). Removing this dependency
on TE would allow more accurate and representative standards for non-
condensing and condensing water heaters. DOE notes that preliminary
analysis has shown a large discrepancy in SL range for non-condensing
and condensing water heaters; condensing water heater have units with
values in a similar range to non-condensing models, but the range also
extends to much lower SL values. Further analysis is required to
determine to what degree the technologies that allow these
significantly lower values are inherent to condensing heaters (i.e.
less heat lost in flue due to condensation), as otherwise these
technologies could be considered for non-condensing units as well. One
possible way to mitigate the impact of TE on SL would be to incorporate
the thermal efficiency into the standby loss standard, as a third
variable. Another approach would be to analyze SL levels for condensing
(92-99% TE) and non-condensing (80-84% TE) gas storage models
separately, so that non-condensing models have a proportionately less
strict standard, accounting for the lower average TE.
Issue 11: DOE requests comment whether to account for the impact of
thermal efficiency on standby loss and on approaches to separate the
effect of thermal efficiency from standby loss for gas storage heaters.
This includes the possibility of separate standards for non-condensing
and condensing units, as well as adding thermal efficiency to the
current SL standard.
E. Markups Analysis
To carry out the life-cycle cost (LCC) and payback period (PBP)
calculations, DOE needs to determine the cost to the commercial
customer of baseline equipment that satisfies the currently applicable
standards, and the cost of the more-efficient unit the customer would
purchase under potential amended standards. This is done by applying a
markup multiplier to the manufacturer's
[[Page 62906]]
selling price to estimate the commercial customer's price.
Markups depends on the distribution channels for a product (i.e.,
how the equipment passes from the manufacturer to the customer). For
commercial water heating equipment, various distribution channels are
characterized.
Two different markets exist for commercial water heating systems:
(1) New construction and (2) replacements. DOE plans to characterize
the replacement distribution channels for commercial water heating
systems as follows:
Manufacturer [rarr] Wholesaler [rarr] Mechanical contractor [rarr]
Customer
In the case of new construction, DOE plans to characterize the
distribution channel as follows:
Manufacturer [rarr] Wholesaler [rarr] Mechanical contractor [rarr]
General contractor [rarr] Customer
In addition, DOE plans to consider distribution channels where the
manufacturer sells the equipment directly to a commercial consumer
through a national account or the commercial consumer purchases the
equipment directly through a wholesaler as follows:
Manufacturer [rarr] Wholesaler [rarr] Customer
or
Manufacturer [rarr] Customer
The latter channels reflect those cases where the installation can
be accomplished by site personnel.
DOE also plans to consider cases when the contractor's sale of the
equipment includes a start-up/check-out contract, in which cases the
equipment markup is included in the contract costs.
Issue 12: DOE seeks input from stakeholders on whether the
distribution channels described above are appropriate for commercial
water heaters and are sufficient to describe the distribution market.
Issue 13: DOE seeks input on the percentage of equipment being
distributed through the different distribution channels, and whether
the share of equipment through each channel varies based on equipment
capacity or water heater class.
To develop markups for the parties involved in the distribution of
the equipment, DOE would utilize several sources including: (1) The
Heating, Air-Conditioning & Refrigeration Distributors International
(HARDI) 2013 Profit Report \12\ to develop wholesaler markups, (2) the
2005 Air Conditioning Contractors of America's (ACCA) financial
analysis for the heating, ventilation, air-conditioning, and
refrigeration (HVACR) contracting industry \13\ to develop mechanical
contractor markups, and (3) U.S. Census Bureau's 2007 Economic Census
data \14\ for the commercial and institutional building construction
industry to develop general contractor markups.
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\12\ Heating, Air Conditioning & Refrigeration Distributors
International 2013 Profit Report, (Available at: http://www.hardinet.org/Profit-Report) (Last accessed July 8, 2014).
\13\ Air Conditioning Contractors of America (ACCA), Financial
Analysis for the HVACR Contracting Industry: 2005, (Available at:
https://http://www.acca.org/store/product.php?pid=142) (Last
accessed April 10, 2013).
\14\ U.S. Census Bureau, 2007 Economic Census Data. (2007)
(Available at: http://www.census.gov/econ/) (Last accessed April 10,
2013).
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Issue 14: DOE seeks recent data and recommendations regarding data
sources to establish the markups for the parties involved with the
distribution of the equipment.
F. Energy Use Analysis
The purpose of the energy use analysis is to assess the energy
requirements of commercial water heating products described in the
engineering analysis for a representative sample of building types that
utilize the product, and to assess the energy-savings potential of
increased product efficiencies. DOE uses the annual energy consumption
and energy-savings potential in the LCC and PBP analysis to establish
the operating costs savings at various product efficiency levels. DOE
will estimate the annual energy consumption of commercial water heaters
at specified energy efficiency levels across a range of applications,
building types, and climate zones. The annual energy consumption
includes use of natural gas, liquefied petroleum gas (LPG), oil, or
electricity for hot water production, as well as use of electricity for
the auxiliary components.
DOE intends to base the energy use analysis on building
characteristics from the Energy Information Administration's (EIA) 2003
Commercial Building Energy Consumption Survey (CBECS) \15\ for the
subset of building types that use the type of commercial water heating
equipment covered by the standards. DOE also plans to look at the use
of commercial water heaters in residential applications, such as multi-
family buildings. Therefore, DOE plans to include characteristics from
EIA's 2009 Residential Energy Consumption Survey (RECS) \16\ for the
subset of building types in RECS that use commercial water heating
equipment covered by this standard.
---------------------------------------------------------------------------
\15\ Energy Information Administration (EIA). 2003 Commercial
Building Energy Consumption Survey (CBECS). (Available at: http://www.eia.gov/consumption/commercial/) (Last accessed April 10, 2013).
Note CBECS 2012 building characteristics have been released in
preliminary form by EIA and will be reviewed for possible
incorporation into this analysis, however, the full release of CBECS
2012 data is not expected until winter 2015.
\16\ Energy Information Administration (EIA). 2009 Residential
Energy Consumption Survey (RECS). (Available at: http://www.eia.gov/consumption/residential/) (Last accessed April 10, 2013).
---------------------------------------------------------------------------
Both CBECS and RECS survey data include information on the physical
characteristics of building units, water heating equipment used, fuels
used, energy consumption and expenditures, and other building
characteristics.\17\ DOE will also consult the American Society of
Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) \18\ and
Electric Power Research Institute (EPRI) \19\ handbooks, which contain
data on the typical types and sizes (both input capacity and rated
volume) of commercial water heaters used for different building types
and applications, and can be used to compare to, supplement, and
corroborate the CBECS and RECS data. Based on these data, DOE will
develop a representative population of buildings for each commercial
water heater equipment class.
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\17\ Neither CBECS nor RECS provide data on whether the water
heater used in the building is a commercial water heater covered in
this rulemaking (i.e., water heating could also be provided by a
commercial boiler, residential boiler, or residential water heater).
Therefore, DOE intends to develop a methodology for adjusting its
building sample to reflect buildings that use a commercial water
heater covered in this rulemaking.
\18\ American Society of Heating, Refrigerating and Air-
Conditioning Engineers, Inc. (ASHRAE). ASHRAE Handbook of HVAC
Applications: Chapter 50 (Service Water Heating) (2011) pgs. 50.1 to
50.32.
\19\ Electric Power Research Institute (EPRI). Commercial Water
Heating Applications Handbook. (1992) CU-6666.
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Based on the data in the ASHRAE and EPRI Handbooks, as well as data
from National Renewable Energy Laboratory (NREL),\20\ and Lawrence
Berkeley National Laboratory (LBNL) \21\ regarding typical energy use
profiles and other commercial building usage characteristics, DOE will
develop representative hot water usage, water heating usage profile,
water volumetric loads, and hot water usage temperatures for various
applications for each
[[Page 62907]]
commercial water heater and building type combination being analyzed.
This approach will capture the variability in water heating use due to
factors such as building activity, schedule, occupancy, water supply
temperature, tank losses, cycling losses, and distribution system
piping losses.
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\20\ National Renewable Energy Laboratory (NREL). U.S.
Department of Energy Commercial Reference Building Models of the
National Building Stock. February 2011. (Available at: http://www.nrel.gov/docs/fy11osti/46861.pdf) (Last accessed April 10,
2013).
\21\ Huang, J., Akbari, H., Rainer, L, Ritschard, R. 481
Prototypical Commercial Buildings for 20 Urban Market Areas, LBL-
29798, April 1991 (Available at: https://publications.lbl.gov/islandora/object/ir%3A94368) (Last accessed October 03, 2014).
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DOE plans to consider market changes or future efficiency standards
in equipment technologies that reduce water heating loads in commercial
applications, such as more efficient commercial dishwashers and
commercial clothes washers. In addition, DOE intends to review other
data sets (e.g., the technology penetration curves used in the National
Energy Modeling System (NEMS),\22\ data from the End-Use Load and
Consumer Assessment Program (ELCAP),\23\ and 2009 Commercial Building
Stock Assessment for the Northwest),\24\ to determine whether a
significant fraction of the current building population is not
represented by CBECS 2003.
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\22\ For more information on NEMS, refer to the U.S. Department
of Energy, Energy Information Administration (EIA) documentation. A
useful summary is National Energy Modeling System: An Overview 2003,
DOE/EIA-0581 (2003). Each year, EIA uses NEMS to produce an energy
forecast for the United States, the Annual Energy Outlook (AEO). For
this analysis, DOE intends to use the version of NEMS based on AEO
2013. (Available at: http://www.eia.gov/forecasts/aeo/).
\23\ Bonneville Power Administration. End-Use Load and Consumer
Assessment Program (ELCAP) Data from 1986 to 1989. 2012. (Available
at: http://rtf.nwcouncil.org/ELCAP/) (Last accessed April 10, 2013).
\24\ Northwest Energy Efficiency Alliance (NEEA). Commercial
Building Stock Assessment. 2009. (Available at: http://neea.org/resource-center/regional-data-resources/commercial-building-stock-assessment) (Last accessed April 10, 2013).
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Issue 15: DOE requests comment on the overall method to determine
water heating energy use and if other factors should be considered in
developing the energy use or energy use methodology.
Issue 16: DOE seeks input on the current distribution of equipment
efficiencies in the building population for different equipment
classes.
Issue 17: DOE seeks input on typical types and sizes (including
fuel type, input capacity and rated volume) of commercial water
heaters, including gas condensing and heat pump water heaters, used for
different building types and applications.
Issue 18: DOE seeks input on representative hot water usage, water
heating usage profile, water volumetric load profiles or aggregate
loads, and representative hot water usage temperatures for various
commercial water heater applications.
Issue 19: DOE seeks input and sources of data or recommendations
for tools to support sizing of water heater typical commercial water
heater and multifamily residential applications.
Issue 20: DOE seeks input on the fraction and types of buildings
that use recirculation loops associated with commercial water heaters
and the impact of recirculation loops on water heater performance.
Issue 21: DOE requests comment on the fraction of commercial or
residential boilers used in commercial water heating applications.
Issue 22: DOE requests comment on the fraction and classes of
commercial water heaters which are used in residential-duty
applications as well as other commercial water heaters that may serve
residential multi-family buildings. DOE also requests input on the
fraction of residential water heaters that are used for commercial
applications.
G. Life-Cycle Cost and Payback Period Analysis
The purpose of the LCC and PBP analysis is to analyze the effects
of potential amended energy conservation standards on customers of
commercial water heater equipment by determining how a potential
amended standard affects their operating expenses (usually decreased)
and their total installed costs (usually increased).
DOE intends to analyze the potential for variability by performing
the LCC and PBP calculations on a representative sample of individual
commercial buildings. DOE plans to utilize the sample of buildings
developed for the energy use analysis and the corresponding simulations
results.\25\ Within a given building, one or more commercial water
heater units may serve the building's water heating needs, depending on
the hot water requirements of the building. As a result, DOE intends to
express the LCC and PBP results for each of the individual commercial
water heaters installed in the building. DOE plans to model uncertainty
in many of the inputs to the LCC and PBP analysis using Monte Carlo
simulation and probability distributions. As a result, the LCC and PBP
results will be displayed as distributions of impacts compared to the
base case (without amended standards) conditions.
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\25\ DOE plans to utilize the building types defined in CBECS
2003 as well as residential buildings that use commercial water
heaters such as multi-family buildings. Definitions of CBECS
building types can be found at http://www.eia.gov/emeu/cbecs/building_types.html.
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Issue 23: DOE requests comment on the overall method that it
intends to use to conduct the LCC and PBP analysis for commercial water
heaters.
Inputs to the LCC and PBP analysis are categorized as: (1) Inputs
for establishing the purchase expense, otherwise known as the total
installed cost, and (2) inputs for calculating the operating expense.
The primary inputs for establishing the total installed cost are
the baseline customer price, standard-level customer price increases,
and installation costs. Baseline customer prices and standard-level
customer price increases will be determined by applying markups to
manufacturer selling price estimates. The installation cost is added to
the customer price to arrive at a total installed cost. DOE intends to
develop installation costs using the most recent RS Means data
available.
Issue 24: DOE seeks input on the approach and data sources it
intends to use to develop installation costs, specifically, its
intention to use the most recent RS Means Mechanical Cost Data.\26\
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\26\ RS Means. 2014 Mechanical Cost Data. (Available at: http://rsmeans.reedconstructiondata.com/60023.aspx) (Last accessed April
10, 2014).
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The primary inputs for calculating the operating costs are
equipment energy consumption and demand, equipment efficiency, energy
prices and forecasts, maintenance and repair costs, equipment lifetime,
and discount rates. Both equipment lifetime and discount rates are used
to calculate the present value of future operating expenses.
The equipment energy consumption is the site energy use associated
with providing water heating to the building. DOE intends to utilize
the energy use calculation methodology described in Section II.F to
establish equipment energy use.
DOE will identify an approach to account for the gas, propane, oil
and electricity prices paid by consumers for the purposes of
calculating operating costs, savings, net present value, and payback
period. DOE intends to consider determining gas, oil, and electricity
prices based on geographically available fuel cost data such as state
level data, with consideration for the variation in energy costs paid
by different building types. This approach calculates energy expenses
based on actual energy prices that customers are paying in different
geographical areas of the country. As a potential additional source,
DOE may consider data to compare provided in EIA's Form 861 data \27\
to calculate
[[Page 62908]]
commercial electricity prices, EIA's Natural Gas Navigator \28\ to
calculate commercial natural gas prices, and EIA's State Energy Data
Systems (SEDS) \29\ to calculate liquefied petroleum gas (LPG) and fuel
oil prices. Future energy prices will likely be projected using trends
from the EIA's 2013 Annual Energy Outlook (AEO).\30\
---------------------------------------------------------------------------
\27\ Energy Information Administration (EIA), Survey form EIA-
861--Annual Electric Power Industry Report. (Available at: http://www.eia.gov/electricity/data/eia861/index.html) (Last accessed April
15, 2013).
\28\ Energy Information Administration (EIA), Natural Gas
Navigator. (Available at: http://tonto.eia.doe.gov/dnav/ng/ng_pri_sum_dcu_nus_m.htm) (Last accessed April 15, 2013).
\29\ Energy Information Administration (EIA), State Energy Data
System (SEDS). (Available at: http://www.eia.gov/state/seds/) (Last
accessed April 15, 2013).
\30\ Energy Information Administration (EIA). 2013 Annual Energy
Outlook (AEO) Full Version. (Available at: http://www.eia.gov/forecasts/aeo/). (Last accessed April 15, 2013).
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Issue 25: DOE seeks comment and sources on its approach for
developing gas, oil, and electricity prices.
Maintenance costs are expenses associated with ensuring continued
operation of the covered equipment over time. DOE intends to develop
maintenance costs for its analysis using the most recent RS Means data
available.\31\ DOE plans also to consider the cases when the equipment
is covered by service and/or maintenance agreements.
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\31\ RS Means. 2013 Facilities Maintenance & Repair Cost Data.
(Available at: http://rsmeans.reedconstructiondata.com/60303.aspx)
(Last accessed April 10, 2013).
---------------------------------------------------------------------------
Issue 26: DOE seeks input on the approach and data sources it
intends to use to develop maintenance costs, specifically, its
intention to use the most recent RS Means Facilities Maintenance &
Repair Cost Data, as well as to consider the cost of service and/or
maintenance agreements.
Repair costs are expenses associated with repairing or replacing
components of the covered equipment that have failed. DOE intends to
assess whether repair costs vary with equipment efficiency as part of
its analysis.
Issue 27: DOE seeks comment as to whether repair costs vary as a
function of equipment efficiency. DOE also requests any data or
information on developing repair costs.
Equipment lifetime is the age at which a unit of covered equipment
is retired from service. The average equipment lifetime for commercial
water heaters is estimated by various sources to be between 7 and 25
years based on application and equipment
type.32 33 34 35 36 37 38 Based on these data, DOE plans to
determine average lifetime for each commercial water heater product
class as the primary input for developing a Weibull probability
distribution to characterize commercial water heater lifetime.\39\
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\32\ National Renewable Energy Laboratory (NREL). U.S.
Department of Energy Commercial Reference Building Models of the
National Building Stock. February 2011. (Available at: http://www.nrel.gov/docs/fy11osti/46861.pdf) (Last accessed April 10,
2013). Pg. 38.
\33\ RS Means. 2013 Facilities Maintenance & Repair Cost Data.
(Available at: http://rsmeans.reedconstructiondata.com/60303.aspx)
(Last accessed April 10, 2013). pgs. 184-188.
\34\ Mark Ellis & Associates. ``National Appliance and Equipment
Energy Efficiency Program, Analysis of Potential for Minimum Energy
Performance Standards for Miscellaneous Water Heaters. Prepared for
the Australian Greenhouse Office. (2001) (Available at:
www.energyrating.com.au/library/pubs/tech-ewhmisc2001.pdf) (Last
accessed April 18, 2013).
\35\ Ryan Firestone and Danielle Gidding. ``Energy Savings from
Electric Water Heaters in Commercial Applications.'' Prepared for
Bonneville Power Administration. Prepared by Navigant Consulting and
Bonneville Power Administration. (Presented June 1, 2010) (Available
at: rtf.nwcouncil.org/meetings/2010/0601/WaterHeatersinCommercialApplications_v05.ppt) (Last accessed: April
18. 2013). Slide 31.
\36\ Gas Foodservice Equipment Network. ``Straight Talk About
Tankless Water Heaters, Can They Really Keep You in Hot Water?''
Cooking for Profit. (December 15, 2007) (Available at: http://www.crescentcity-fl.com/Gas%20Documents/Dec%2007%20GFEN%20%20final_Tankless.pdf) (Last accessed: April 18,
2013).
\37\ Federal Energy Management Program (FEMP). FEMP Designated
Product: Commercial Gas Water Heaters. 2012. (Available at: http://www1.eere.energy.gov/femp/technologies/eep_com_gaswaterheaters.html)
(Last accessed: April 18, 2013).
\38\ Note that for some commercial water heaters the usage and
application would be similar to a residential water heater. For
these situations the Weibull distribution derived for DOE's 2010
residential water heater standards rulemaking could be applicable.
(More information about the derivation the residential water heater
lifetime is available at: http://www.regulations.gov/#!docketDetail;D=EERE-2006-STD-0129).
\39\ If the data is available, DOE also plans to take into
account differences in commercial water heater lifetime based on
usage and application of the water heater.
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Issue 28: DOE seeks comment on its approach of using a Weibull
probability distribution to characterize equipment lifetime. DOE also
requests equipment lifetime data and information on whether equipment
lifetime varies based on equipment characteristics, equipment
application, or efficiency level considerations.
The discount rate is the rate at which future expenditures are
discounted to establish their present value. DOE intends to derive the
discount rates by estimating the cost of capital of companies that
purchase commercial water heater equipment.
DOE's analysis includes measures of LCC and PBP impacts of
potential standard levels relative to a base case that reflects the
likely market in the absence of amended standards. DOE plans to develop
market-share efficiency data (i.e., the distribution of equipment
shipments by efficiency) for the equipment classes DOE is considering,
for the year in which compliance with any amended standards would be
required.
DOE also plans to assess the applicability of the ``rebound
effect'' in the energy consumption for commercial water heaters. A
rebound effect occurs when a piece of equipment that is made more
efficient is used more intensively, so that the expected energy savings
from the efficiency improvement may not fully materialize. However, at
this time, DOE is not aware of any information about the rebound effect
for this equipment type.
Issue 29: DOE requests data on current efficiency market shares (of
shipments) by equipment class, and also input on similar historic data.
Issue 30: DOE also requests information on expected future trends
in efficiency for commercial water heaters classes, including the
relative market share of condensing versus non-condensing equipment in
the market in the absence of new efficiency standards.
Issue 31: DOE seeks comments and data on any rebound effect that
may be associated with more efficient commercial water heaters.
H. Shipment Analysis
DOE uses shipment projections by equipment class to calculate the
national impacts of standards on energy consumption, net present value
(NPV) of customer benefits, and future manufacturer cash flows.
DOE intends to develop a shipments model for commercial water
heater equipment based on historical AHRI shipments data for commercial
gas and electric storage water heaters.\40\ DOE currently does not have
any historical shipments information for other product classes
described in the engineering analysis.
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\40\ Air-Conditioning, Heating, and Refrigeration Institute
(AHRI). Commercial Storage Water Heaters Historical Data: 1992-2011.
(Available at: http://www.ahrinet.org/site/494/Resources/Statistics/Historical-Data/Commercial-Storage-Water-Heaters-Historical-Data)
(Last accessed July 3, 2014).
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Issue 32: DOE seeks historical shipments data for commercial water
heaters by product class, particularly for product classes other than
commercial gas and electric storage water heaters.
The shipments model will consider three market segments: (1) New
commercial buildings acquiring equipment; (2) existing buildings
replacing old equipment; and (3) existing buildings acquiring new
equipment for the first time. Two stock
[[Page 62909]]
categories are also considered: (1) Equipment that has received only
normal maintenance repairs; and (2) equipment that has had its useful
life extended through additional repairs. To determine whether a
customer would choose to repair rather than replace their commercial
water heater equipment, the shipments model explicitly accounts for the
combined effects of changes in purchase price, annual operating cost,
and the value of commercial floor space on the purchase versus repair
decision. Changes to the purchase price and operating costs due to
amended energy conservation standards are the drivers for shipment
estimates for the standards cases relative to the base case (i.e., the
case without amended standards).
DOE intends to utilize the U.S. Census Bureau data \41\ to
establish historical new construction floor space, as well as
historical stock floor space. The Annual Energy Outlook will be used to
forecast both new construction and stock floor space. Using these and
historical equipment saturation data from CBECS, DOE will estimate
shipments to the three market segments identified above. The utility
function to estimate the repair versus replacement decision will be
based on income per square foot data from the Building Owners and
Managers Association (BOMA) Commercial Building Survey reports,\42\
equipment purchase price index (PPI) data estimated from the Bureau of
Labor Statistics,\43\ and operating cost data derived from the LCC and
PBP analysis.
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\41\ U.S. Census Bureau. Statistical Abstract of the United
States: 2011, Table No 933--Construction Contracts--Value of
Construction and Floor Space of Buildings by Class of Construction.
(Available at: https://www.census.gov/compendia/statab/2011/cats/construction_housing/construction_indices_and_value.html) (Last
accessed April 10, 2013).
\42\ Building Owners and Managers Association International
(BOMA). Experience Exchange Report (2013) (Available at: https://www.bomaeer.com/) (Last accessed April 10, 2013).
\43\ U.S. Department of Labor, Bureau of Labor Statistics.
Producers Price Index: Industry: Refrigeration and Heating Equipment
(Available at: http://www.bls.gov/ppi/home.htm) (Last accessed April
10, 2013).
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Issue 33: DOE seeks input on the approach and data sources it
intends to use in developing the shipments model and shipments
forecasts for this analysis.
I. National Impact Analysis
The purpose of the national impact analysis (NIA) is to estimate
aggregate impacts of potential energy conservation standards at the
national level. Impacts that DOE reports include the national energy
savings (NES) from potential standards and the net present value (NPV)
of the total customer benefits.
To develop the NES, DOE calculates annual energy consumption for
the base case and the standards cases. DOE calculates the annual energy
consumption using per-unit annual energy use data multiplied by
projected shipments.
To develop the NPV of customer benefits from potential energy
conservation standards, DOE calculates annual energy expenditures and
annual equipment expenditures for the base case and the standards
cases. DOE calculates annual energy expenditures from annual energy
consumption by incorporating projected energy prices. DOE calculates
annual equipment expenditures by multiplying the price per unit times
the projected shipments. The difference each year between energy bill
savings, increased maintenance and repair costs, and increased
equipment expenditures is the net savings or net costs.
A key component of DOE's estimates of NES and NPV are the equipment
energy efficiencies forecasted over time for the base case and for each
of the standards cases. For the base case trend, DOE will consider
whether historical data show any trend and whether any trend can be
reasonably extrapolated beyond current efficiency levels. In
particular, DOE is interested in historical and future shipments of
equipment with step changes in efficiency, such as condensing gas
equipment or HPWHs.
Issue 34: DOE requests comment and any available data on
historical, current, and future market share of equipment with step
changes in efficiency, such as gas condensing equipment and HPWHs, as
compared to less efficient equipment, such as non-condensing gas water
heaters and electric water heaters, respectively, for each equipment
class.
For the various standards cases, to estimate the impact that
amended energy conservation standards may have in the year compliance
becomes required, DOE would likely use a ``roll-up'' scenario. Under
the ``roll-up'' scenario, DOE assumes: (1) Equipment efficiencies in
the base case that do not meet the new or amended standard level under
consideration would ``roll up'' to meet that standard level; and (2)
equipment shipments at efficiencies above the standard level under
consideration would not be affected. After DOE establishes the
efficiency distribution for the assumed compliance date of a standard,
it may consider future projected efficiency growth using available
trend data.
DOE intends to determine whether there is a rebound effect
associated with more efficient commercial water heaters. If data
indicate that there is a rebound effect, DOE will account for the
rebound effect in its calculation of NES.
III. Public Participation
DOE will accept comments, data, and information regarding this RFI
and other matters relevant to DOE's consideration of amended energy
conservations standard for commercial water heating equipment no later
than the date provided in the DATES section at the beginning of this
RFI. Interested parties may submit comments using any of the methods
described in the ADDRESSES section at the beginning of this RFI. After
the close of the comment period, DOE will begin collecting data,
conducting the analyses, and reviewing the public comments. These
actions will be taken to aid in the development of a NOPR for
commercial water heating equipment if DOE decides to amend the
standards for commercial water heaters.
Instructions: All submissions received must be identified by docket
number EERE-2014-BT-STD-0042 and/or regulatory identification number
(RIN) 1904-AD34. No telefacsimilies (faxes) will be accepted.
Docket: The docket is available for review at www.regulations.gov,
including Federal Register notices, public meeting attendees' lists and
transcripts, comments, and other supporting documents/materials. All
documents in the docket are listed in the www.regulations.gov index.
However, not all documents listed in the index may be publicly
available, such as information that is exempt from public disclosure.
A link to the docket Web page can be found at: http://www.regulations.gov/#!docketDetail;D=EERE-2014-BT-STD-0042. This Web
page contains a link to the docket for this notice on the
www.regulations.gov Web site. The www.regulations.gov Web page contains
simple instructions on how to access all documents, including public
comments, in the docket.
For information on how to submit a comment, review other public
comments and the docket, or participate in the public meeting, contact
Ms. Brenda Edwards at (202) 586-2945 or by email:
[email protected].
DOE considers public participation to be a very important part of
the process for developing test procedures. DOE actively encourages the
participation and interaction of the public during the comment period
in each stage of the rulemaking process. Interactions with and between
members of the public
[[Page 62910]]
provide a balanced discussion of the issues and assist DOE in the
rulemaking process. Anyone who wishes to be added to the DOE mailing
list to receive future notices and information about this rulemaking
should contact Ms. Brenda Edwards at (202) 586-2945, or via email at
[email protected].
Issued in Washington, DC, on October 10, 2014.
Kathleen B. Hogan,
Deputy Assistant Secretary for Energy Efficiency, Energy Efficiency and
Renewable Energy.
[FR Doc. 2014-24983 Filed 10-20-14; 8:45 am]
BILLING CODE 6450-01-P