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ENERGY STAR ® & Air Cleaners

ENERGY STAR ® & Air Cleaners. January 14, 2003 McCormick Place, Chicago, IL Andrew Fanara, EPA fanara.andrew@epa.gov. Meeting Topics. Overview of ENERGY STAR The Benefits and Successes of ENERGY STAR EPA’s Interest in Air Cleaners Savings Potential of Air Cleaners

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ENERGY STAR ® & Air Cleaners

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  1. ENERGY STAR® & Air Cleaners January 14, 2003 McCormick Place, Chicago, IL Andrew Fanara, EPA fanara.andrew@epa.gov

  2. Meeting Topics • Overview of ENERGY STAR • The Benefits and Successes of ENERGY STAR • EPA’s Interest in Air Cleaners • Savings Potential of Air Cleaners • The Product Development Process • Next Steps

  3. Program Basics Program Objective • Government-backed label making it easy for purchasers to identify energy saving products • Strict energy performance criteria set by US EPA and DOE • Voluntary partnership

  4. Product Categories • More than 30 product categories to-date including both residential and commercial products • Some home comfort products include dehumidifiers, HVAC equipment, programmable thermostats, ceiling fans, and more….

  5. Product Categories

  6. Who Participates in ENERGY STAR? • Manufacturers • Retailers • Small Businesses • Utilities • Builders and Building Managers • Government Agencies • Non-Governmental Organizations

  7. Who Benefits from ENERGY STAR? • Consumers: Save money on utility bills • Retailers: Loyalty to consumer needs and concerns about energy and the environment • Manufacturers: Environmental stewardship and reward for offering energy-efficient products • Utilities: Better load management and possible reductions in capital expenditures • The Environment: Less energy Less pollution Cleaner environment

  8. Success to Date • More than 1,200 manufacturers labeling >13,000 product models • More than 400 retailers (16,000 storefronts) • 160 state and utility partners supplying nearly 60% of US customers • To date, American consumers have purchased more than 750 million products that have earned the ENERGY STAR

  9. Media Campaign • Objective • Increase awareness and drive sales • Target markets and demographics • Generate TV & print adds, news articles, web site content, PSAs, bill stuffers, training materials

  10. Media Campaign (cont.) • Product related print articles range from 250-450 per month • In the past year, product related articles reached a circulation of more than 5 billion

  11. Media Campaign (cont.) Partner Efforts: • More than 600 companies advertise ENERGY STAR products per month in print • up from about 500 a year ago • About 8,000 print ads display the ENERGY STAR • appliance and windows >3000 • HVAC ~1000

  12. Print Example

  13. Print Example

  14. Labeling Example

  15. Labeling Example

  16. Labeling Example

  17. Media Campaign: PSAs • Three PSAs released: lighting, office equipment, and ENERGY STAR Homes • Distributed to 150 top TV markets, 50 top daily newspapers, 1000+ magazines, 35 national radio networks • More than $5 million in equivalent ad value (TV, radio, print) • Airing in the best day-parts more than half the time Performing 15% better than the average government PSA

  18. Why Air Cleaners? • Significant energy savings potential • Indoor air public heath concerns • Retail opportunities • Promotional opportunities via EPA’s home improvement initiative • Interest from air cleaner manufacturers

  19. Why Air Cleaners (cont.)? • Projected increase in consumer interest and sales* • Little market incentive for energy-efficient air cleaners • Opportunity for product differentiation *Source: www.cadr.org (an AHAM Web site); and American Lung Association/ Honeywell, white paper, "Residential Air Cleaning Devices: Types, Effectiveness, and Health Impact."

  20. Retail Opportunities • Several retailers have developed home environmental departments carrying an emerging line of home products • Air cleaners are a key product offering • ENERGY STAR retail partners represent well over 50% of room air cleaner sales • Home Depot, Lowes Companies, Sam’s Club, Sears Roebuck and Company, Wal-Mart Stores, etc.

  21. Preliminary Projected Pollution Savings

  22. Assumptions behind Projections • Year 1 market penetration = 16% • Out years stable at 20%: • Equivalent to removing carbon dioxide pollution from 92,000 cars in 2010 • $300 million dollars saved 2003 – 2010 (no discounting) • Projected lifetime savings per air cleaner = $210* per household (no discounting) * Assuming a lifetime of 8.5 years and a constant energy savings, projected lifetime savings = annual energy savings X annual projected electricity price

  23. Assumptions behind Projections (Contd.) • Shipments in 1,000s* • 1995 = 1,900 • 2000 = 1,650 • 2010 = 2,020 (assumes a 3% yearly growth) • 2010 stock = 15 million units • Lifetime = 8.5 Years, Conservative • Appliance Magazine source = 11 years average for electronic air cleaners • Residential electricity rate in 2010 = 7.4 cents/kWh (US DOE) • Usage pattern – continuous operation *Source: AHAM historical data

  24. Product Development Guiding Principals Criteria for Product Selection: • Significant energy savings potential • Efficiency is cost-effective • Performance is maintained or enhanced • Efficiency is achieved with non-proprietary technology • Product differentiation and testing are feasible • Labeling would be effective in the market

  25. Specification Development Process • Energy and environmental analysis • Market research and design analysis • Specification development (in cooperation with stakeholders)

  26. Specification Development Process (cont.) • EPA cooperates with stakeholders: • Transparency • All stakeholder comments posted to ENERGY STAR Web site • EPA releases a Decision Memo at the end of the product development process which addresses all comments and provides justification of specification levels and requirements • Open door policy • Manufacturer participation

  27. Specification Development Process (cont.) • It is not EPA’s intention to set a specification that allows all products to qualify • Strive for at least 25% of the market; top performers • Performance based; technology neutral; encourages quality maintenance

  28. Specification Development Process (cont.) • To define a test standard, EPA will build on existing test procedures • How to best build on AC-1 • Wattage is currently measured and collected • Wattage is not written into current test procedure, yet consistently measured by labs • Could a test method be derived for an ENERGY STAR specification?

  29. Partnership Agreement • Once the specification is finalized, companies must sign a Partnership Agreement with EPA • By signing, partner agrees to develop, label, and promote qualified products according to the Program Requirements (i.e., specification) for that product • Product is launched at trade show or other industry event • Partners that sign Agreement prior to the event may participate in the launch

  30. Next Steps • Draft an energy consumption test procedure and Draft 1 specification • Collect additional product performance data (Watts) • Determine an appropriate measurement of both quality and energy efficiency • For example; CADR/Watts

  31. Extra Slides

  32. Assumptions behind Projections (Cont.) UECs calculated from Access Business Group test data. ENERGY STAR UECs assume 2 CADR/Watt specification. Assume a continuous duty cycle and operation conditions in a laboratory setting.

  33. Preliminary Energy Usage Data • Performance and energy usage data provided by Access Business Group • Data obtained for 38 air cleaner units • CADR performance rating obtained from AHAM directory • Energy consumption data determined by actual tests performed by Access Business Group • Data shows wide range of product differentiation • CADR range: 2 - 300 • Energy consumption (watts) range: 4 - 300 • CADR/watts range: 0.4 – 3.82

  34. Air Cleaner Performance Data Analysis Source: Access Business Group database of model performances

  35. Air Cleaner Performance Data Analysis Source: Access Business Group database of model performances

  36. The New Mark and Why • Can now be read as ENERGY STAR • Not recessive, works better when small • Box is stronger, more authoritative • Blue is aspirational • One color makes it easy, more recognizable • It is a relatively easy change to make Government sponsorship and source of authority -- isn’t part of mark, but will be an important part of our messaging

  37. Example of current mark • Can read SEARS, Kenmore, and TRANE • Where is ENERGY STAR?

  38. Example of new mark • Works better • ENERGY STAR adds value, is complementary

  39. Again • Can read LOWES, SHARP, etc. • Can you read ENERGY STAR?

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