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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

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Page 1: Overview of Federal Appliance Standards and Their Impact on Regional Loads Tom Eckman Northwest Power and Conservation Council BPA Utility Brown Bag September

Overview of Federal Appliance Standards

and Their Impact on Regional Loads

Tom EckmanNorthwest Power and Conservation Council

BPA Utility Brown BagSeptember 4, 2014

Page 2: Overview of Federal Appliance Standards and Their Impact on Regional Loads Tom Eckman Northwest Power and Conservation Council BPA Utility Brown Bag September

Savings from Many Mechanisms

Page 3: Overview of Federal Appliance Standards and Their Impact on Regional Loads Tom Eckman Northwest Power and Conservation Council BPA Utility Brown Bag September

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

Page 4: Overview of Federal Appliance Standards and Their Impact on Regional Loads Tom Eckman Northwest Power and Conservation Council BPA Utility Brown Bag September

4

Legislative History of Federal Appliance Standards

1975

1979

1987

1992

2005

2007

2013

Chart TitleEnergy 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.

EPCA amended. Directs Department of Energy (DOE) to establish energy conservation standards for consumer products.

The National Appliance Energy Conservation Act of 1987 (NAECA) establishes minimum efficiency standards for common household appliances and DOE review schedules

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. EPAct also authorized DOE to develop of standards for additional products.

Energy Policy Act 2005 sets new standards for 16 products and directed DOE to set standards via rulemaking for another five.

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.

Page 5: Overview of Federal Appliance Standards and Their Impact on Regional Loads Tom Eckman Northwest Power and Conservation Council BPA Utility Brown Bag September

5

Standards Process Subject to Political Climate

1975

1979

1987

1992

2005

2007

2013

Chart Title

Bush ObamaCarter Reagan Bush IIClinton

More New Standards Set by

Congress

States file lawsuit against DOE for failure to update standards on

mandated schedule

DOE authorized to set efficiency

targets and standards

DOE falls behind on updating over

25 standards

DOE, under court supervised

schedule, gets on track

Page 6: Overview of Federal Appliance Standards and Their Impact on Regional Loads Tom Eckman Northwest Power and Conservation Council BPA Utility Brown Bag September

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

Page 7: Overview of Federal Appliance Standards and Their Impact on Regional Loads Tom Eckman Northwest Power and Conservation Council BPA Utility Brown Bag September

Major Product Categories Covered by Federal Efficiency Standards

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

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

Page 8: Overview of Federal Appliance Standards and Their Impact on Regional Loads Tom Eckman Northwest Power and Conservation Council BPA Utility Brown Bag September

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.

Page 9: Overview of Federal Appliance Standards and Their Impact on Regional Loads Tom Eckman Northwest Power and Conservation Council BPA Utility Brown Bag September

Historical Standards Impacts –Residential Refrigerators

0

200

400

600

800

1,000

1,200

1,400

Year

An

nu

al E

nerg

y U

se (

kWh

) 1983 Plan Baseline

Prior Federal Standards

New Federal Standards

Page 10: Overview of Federal Appliance Standards and Their Impact on Regional Loads Tom Eckman Northwest Power and Conservation Council BPA Utility Brown Bag September

Historical Standards Impact –Residential Freezers

0

100

200

300

400

500

600

700

800

900

1000

Year

An

nu

al E

nerg

y U

se (

kWh

) 1983 Plan Baseline

Prior Federal Standards

New Federal Std.

Page 11: Overview of Federal Appliance Standards and Their Impact on Regional Loads Tom Eckman Northwest Power and Conservation Council BPA Utility Brown Bag September

Standards Impact –Residential Dishwashers

19

83

19

85

19

87

19

89

19

91

19

93

19

95

19

97

19

99

20

01

20

03

20

05

20

07

20

09

20

11

20

13

20

15

0

100

200

300

400

500

600

700

Year

An

nu

al E

nerg

y U

se (

kWh

)

1983 Plan BaselinePrior Federal Standards

New Federal Standard

Page 12: Overview of Federal Appliance Standards and Their Impact on Regional Loads Tom Eckman Northwest Power and Conservation Council BPA Utility Brown Bag September

Standards Impact –Residential Clothes Washers

19

83

19

85

19

87

19

89

19

91

19

93

19

95

19

97

19

99

20

01

20

03

20

05

20

07

20

09

20

11

20

13

20

15

0

200

400

600

800

1000

1200

Year

An

nu

al E

nerg

y U

se (

kWh

)

1983 Plan BaselinePrior Federal Standards

New Federal Standards

Page 13: Overview of Federal Appliance Standards and Their Impact on Regional Loads Tom Eckman Northwest Power and Conservation Council BPA Utility Brown Bag September

13

State Energy Codes and Federal Standards Reduced 2010 Regional Retail Sales by

Approximately 2300 MWa*

19851986198719881989199019911992199319941995199619971998199920002001200220032004200520062007200820092010

0

500

1000

1500

2000

2500IrrigationTransportationIndustrialCommercialResidential

Ave

rage

Meg

awatt

s

*Reflects Codes and Standards Adopted Prior to Sixth Plan

Page 14: Overview of Federal Appliance Standards and Their Impact on Regional Loads Tom Eckman Northwest Power and Conservation Council BPA Utility Brown Bag September

Federal Standards Contribute About 20% of Cumulative Regional Conservation

Savings

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

-

1,000

2,000

3,000

4,000

5,000

6,000

Federal StandardsState CodesNEEA ProgramsBPA and Utility Programs

Cum

ula

tive S

avin

gs (

MW

a)

Page 15: Overview of Federal Appliance Standards and Their Impact on Regional Loads Tom Eckman Northwest Power and Conservation Council BPA Utility Brown Bag September

30 New Federal Efficiency Standards Take Effect This

Decade

Packaged Terminal AC and HP

Boilers, Commercial

Incandescent Reflector Lamps

Clothes Washers, Commercial

Refrigerators and Freezers

Water Heaters

Clothes Dryers

Distribution Transformers: Liquid-Immersed

External Power Supplies

Walk-In Coolers and Freezers

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Year New Standard Takes Effect

15

Page 16: Overview of Federal Appliance Standards and Their Impact on Regional Loads Tom Eckman Northwest Power and Conservation Council BPA Utility Brown Bag September

And, There Are More On the Way2014 DOE Rulemaking Schedule

Month Product Rulemaking Stage

January Commercial Water Heaters** Proposed rule or negative determination on coverage

June Commercial Boilers Proposed rule

JulyCommercial Furnaces Proposed ruleCommercial Packaged A/C and Heat Pumps Proposed ruleHigh-Intensity Discharge (HID) Lamps Proposed rule

AugustHearth Products Proposed rule

Single Package Vertical A/C and Heat Pumps Proposed rule

SeptemberDishwashers Proposed ruleResidential Boilers Proposed rule

OctoberASHRAE HVAC Products Proposed rule

Battery Chargers Supplemental proposed rule

NovemberGas and Oil Furnaces Proposed ruleGeneral Service Fluorescent Lamps and IRLs Final rule

Page 17: Overview of Federal Appliance Standards and Their Impact on Regional Loads Tom Eckman Northwest Power and Conservation Council BPA Utility Brown Bag September

Contribution of Federal Standards Toward 6th Plan

Efficiency Goals

Page 18: Overview of Federal Appliance Standards and Their Impact on Regional Loads Tom Eckman Northwest Power and Conservation Council BPA Utility Brown Bag September

18

Sixth Plan Resource PortfolioSource:http://www.nwcouncil.org/energy/powerplan/6/2010-01/

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

0

1000

2000

3000

4000

5000

6000

7000

8000

9000NG Single Cycle

Demand Response

Simple-Cycle Gas

Combined-Cycle Gas

Renewables

Efficiency

Cu

mu

lati

ve R

eso

urc

e (

Avera

ge M

eg

aw

att

s)

*Expected Value Build Out. Actual build out schedule depends on future conditions

18

Page 19: Overview of Federal Appliance Standards and Their Impact on Regional Loads Tom Eckman Northwest Power and Conservation Council BPA Utility Brown Bag September

What’s The Contribution of Federal Standards?

Page 20: Overview of Federal Appliance Standards and Their Impact on Regional Loads Tom Eckman Northwest Power and Conservation Council BPA Utility Brown Bag September

6th Plan Conservation Goals

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

0

50

100

150

200

250

300

350

400

450

500

Discretionary Lost-Opportunity

Ann

ual A

cqui

sitio

ns (a

MW

)

1200 aMW2010-2014

1660 aMW2015-2019

Page 21: Overview of Federal Appliance Standards and Their Impact on Regional Loads Tom Eckman Northwest Power and Conservation Council BPA Utility Brown Bag September

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

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

0

100

200

300

400

500

600

700

800

900Residential Appliances & EquipmentCommercial & Industrial EquipmentLighting Equipment

Cum

ulati

ve S

avin

gs (M

Wa)

Page 22: Overview of Federal Appliance Standards and Their Impact on Regional Loads Tom Eckman Northwest Power and Conservation Council BPA Utility Brown Bag September

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

Potential

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

0

500

1000

1500

2000

2500

3000

3500

Lost-Opportunity Savings Goal Lighting EquipmentCommercial & Industrial Equipment Residential Appliances & Equipment

Cum

ulati

ve S

avin

gs (M

Wa)

Page 23: Overview of Federal Appliance Standards and Their Impact on Regional Loads Tom Eckman Northwest Power and Conservation Council BPA Utility Brown Bag September

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