Overview of Federal Appliance Standards and Their Impact on Regional Loads

1. Overview of Federal Appliance Standards and Their Impact on Regional Loads Tom Eckman Northwest Power and Conservation Council BPA Utility Brown Bag September 4, 2014

2. Savings from Many Mechanisms

3. Today’s Presentation • Short history and “primer” on federal efficiency standards for appliances, equipment and lighting • Why standards are important mechanism for capturing savings • Historical and projected impact of federal efficiency standards on regional loads

4. Legislative History of Federal Appliance Standards Energy Policy and Conservation Act (EPCA) establishes of test procedures, labeling, and energy targets for consumer products. Standards to follow if voluntary targets aren’t met. The National Appliance Energy Conservation Act of 1987 (NAECA) establishes minimum efficiency standards for common household appliances and DOE review schedules Energy Policy Act 2005 sets new standards for 16 products and directed DOE to set standards via rulemaking for another five. The Energy Policy Act of 1992 (EPAct) adds standards for some fluorescent and incandescent reflector lamps, plumbing products, electric motors, commercial water heaters, and heating, ventilation, and air conditioning (HVAC) systems. EPActalso authorized DOE to develop of standards for additional products. EPCAamended. Directs Department of Energy (DOE) to establish energy conservation standards for consumer products. The Energy Independence and Security Act (EISA 2007), enacted new or updated standards for 13 products. EISA also included a requirement that DOE maintain a schedule to regularly review and update all standards and test procedures.

5. Standards Process Subject to Political Climate States file lawsuit against DOE for failure to update standards on mandated schedule More New Standards Set by Congress DOE authorized to set efficiency targets and standards DOE, under court supervised schedule, gets on track Carter Obama DOE falls behind on updating over 25 standards Reagan Bush Clinton Bush II

6. Current Status • Currently there are minimum energy efficiency standards for more than 50 categories of appliances and equipment. • Products covered by standards represent about 90% of home energy use, 60% of commercial building use, and 29% of industrial energy use. • DOE must now review each product standard every six years to determine whether it should be revised

7. Battery Chargers and External Power Supplies Ceiling Fan Light Kits Residential & Commercial Clothes Washers Commercial Ice Makers Commercial Packaged Air Conditioners and Heat Pumps Commercial Packaged Heating and Cooling Equipment Residential & Commercial Refrigerators & Freezers Commercial Warm Air Furnaces Residential & Commercial Water Heaters and Unfired Water Heater Tanks Compact Fluorescent Lamps Dehumidifiers Direct heating equipment Electric Motors Exit Signs General Service Fluorescent Lamps and Ballasts General Service Incandescent Lamps Incandescent Reflector Lamps Low & Medium Voltage Transformers Major Product Categories Covered by Federal Efficiency Standards • Metal Halide Lamps Fixtures • Pool heaters • Refrigerated Beverage Vending Machines • Residential Central Air Conditioners and Heat Pumps • Residential Clothes Dryers • Residential Dishwashers • Residential Furnaces & Boilers • Residential Ranges and Ovens • Room Air Conditioners • Single Packaged Vertical Air Conditioners and Heat Pumps • Torchiers • Traffic and Pedestrian Signal • Walk-in Coolers and Walk-In Freezers

8. Why Federal Efficiency Standards Are Valuable • Lower Cost – Standards produce savings at lower “total cost” because they avoid program administrative costs. • Larger Savings -- Standards effect the entire market while programs effect only a portion of the market resulting in greater total savings for comparable improvements in efficiency • Greater Equity -- The “compliance cost” of meeting a standard is borne by the consumers who benefit from the increased efficiency.

9. Historical Standards Impacts –Residential Refrigerators 1983 Plan Baseline PriorFederal Standards NewFederal Standards

10. Historical Standards Impact –Residential Freezers 1983 Plan Baseline Prior Federal Standards New Federal Std.

11. Standards Impact –Residential Dishwashers 1983 Plan Baseline Prior Federal Standards New Federal Standard

12. Standards Impact –Residential Clothes Washers 1983 Plan Baseline Prior Federal Standards New Federal Standards

13. State Energy Codes and Federal Standards Reduced 2010 Regional Retail Sales by Approximately 2300 MWa* *Reflects Codes and Standards Adopted Prior to Sixth Plan

14. Federal Standards Contribute About 20% of Cumulative Regional Conservation Savings

15. 30 New Federal Efficiency Standards Take Effect This Decade

16. And, There Are More On the Way2014 DOE Rulemaking Schedule

17. Contribution of Federal Standards Toward 6th Plan Efficiency Goals

18. Sixth Plan Resource Portfolio Source:http://www.nwcouncil.org/energy/powerplan/6/2010-01/ *Expected Value Build Out. Actual build out schedule depends on future conditions 18

19. What’s The Contribution of Federal Standards?

20. 6th Plan Conservation Goals 1660 aMW 2015-2019 1200 aMW 2010-2014

21. Total Savings Forecast from Federal Standards Add Up to 780 Average Megawatts by 2029

22. Federal Standards Adopted The Since Sixth Plan Capture One Quarter of The Twenty-Year Lost-Opportunity Potential

23. Implication for the Seventh Plan • Compared to the Sixth Plan: • Load forecast will be lower, particularly over the long term • Remaining conservation potential will be lower • But not as much lower as the load forecast, since standard impact all units, but conservation assessment assumes less than 100% program success • Conservation programs will need adjust their focus to measures less impacted by federal standards