CO2 HPWH Residential Customers Sized for number of plumb fixtures in the house. Power constraints – electrical capacity in home. Brand familiarity. Residential Pressure vessel requirements for refrigerants with higher pressure (like CO2) do not ignore a safety risk or additional burden to consumer (insurance, install / code requirement). Safety Safe equipment. Long lasting. If maintenance homeowner is not impacted, needs to spend time on it. Low, easy maintenance or warranty or taken care of for homeowners ( manufacturer, utility, contractors). Maintenance Affordable / cheap. Relatively low cost to purchase and run. Efficient (low operating cost).. Cost Invisible.. Noisef ree. No comfort impact (from compressor in particular) Comfort/ invisibility/ no noise No cold air when it is not wanted. Connectivity. Connectivity Wi-fi capacity. Hot H 2 O Lots of hot water whenever it is wanted. Primary requirement: Cost (low first); utility received. Secondary requirement: Low life-cycle, unlimited, hot water on demand, always available. Never run out of hot water. Easy Install Readily available and knowledgeable service / install technologies. Easy and fast replacement. Size must fit into available space. DIY Easy to low cost to install. Does not require plumber,,electrical or HVAC contractor/ technologists. Can be DIY

CO2 HPWH Manufacture Clear specification for eligibility Clear requirements based on the unique capabilities of CO2 systems on water heating and whole building benefits from utility perspective. Utility DR needs are distilled into an actionable product design. They need long term commitment from region. Clear consensus on product applications and requirements. - Northern climate -Tier 4 - CHG - Electrical residential no DR DOE water heather requirements are sufficiently conductive to this product Utility Specifications Premium consumer image. Demonstration that customers in large numbers will pay premium or disprove. Access to the market. Market opportunity is compelling enough for product introduction. Market of sufficient size to justify bringing to North American market. Manufactures require money. Can they profit from this? Competitive advantages of this product can be identified and communicated. Market opportunities Ancillary benefits to create volume market – either space/water or some large consumer benefits, or large federal subsidy. Regulation requiring refrigement. Contacts: John Bush – EPRI natural refrigerants experts. -Researching cement products, -Monitoring EPA ruling that will be phasing out refrigerants, trying to make new products/refrigerants be not only environmentally beneficial, but also energy efficient. Strong drivers for low GWP refrigerants. Market opportunities Manufactures need UL. Cent. Todd’s comment. UnUnderwriters lab is a potential, but need getting products containing this refrigerant in US will be challenging. UL listing and code compliance are satisfied. Clear path to safety and performance certifications. Safety issues neutralized for all of most of nation. Meets local building codes. Codes and Safety Clear path to low defect durable manufacture. Leverage manufacturing overseas. Distribution and product support network. Suitable market channels and installer channels. Distribution Channels and Partners Partnerships for product introductions. If there are specialized components not familiar to manufactures, who is going to specialize and perfect?

CO2 HPWH Regional Product roadmap. Multiple manufactures compete in the market LBNL has an expert in water heating testing and standards – groping for the name – Jim Lutz, LBNL, Charlie Adams, and AO Smith. Fast Water Heating. Priorities/Opportunities Region needs: Known good products: Performance, longevity. Low or no maintenance cost. Reliable/long-lasting. Regional requirements. Reliability, safety. (Todd’s comment: nigh operating pressure and as a safety concept. Regional value and diverse climates. Clarity about value in MF, MH, small business. Maintenance Reliability Cost effective for regional perspective Regional cost effectiveness. TRC=1 (utility not customer perspective) Since CO2 HPs WH are twice as efficient as ordinary HPWH, my approximation is that they could be twice as costly, and still be cost effective, but the real analysis needs to go through the RTFs procost model. A line of sight to cost effectiveness (TRC B/C ratio) is made convincingly. Cost Effectiveness Enough value that contractors can change more without blowing cost- effectiveness. Todd’s comment: Service industry will need to be heavily trained to support needs containing CO2. Controllable via signal sent from grid. Non proprietary control signaling. [Secondary priority] HPH is capable of energy storage and demand response. (Note: this is a very high level definition; more specifics need to be added). High thermal storage capacity to support grid management. Operates in PNW regions without electric resistance host. (this is specific requirement, could be generalized) Contractor Annual energy use is predictable and quantifiable (per RTF guidelines). Clarity about degree of demand addressability and best control path. Risk Grid Int. People

CO2 HPWH Regional & Manufacture Cheap, Drop-in low brainpower installation. InstallationCosts Lower costs. Manufacturers – Region needed Other Benefits (Beyond just water heating: Legion Aire Cycle, Heating) Benefits

CO2 HPWH Customers BPA Utilities/ Program Delivery Utilities CLEAResult / Fluid Utilities NEEA (Dave Kresta) Utilities (Aaron Winer) Hope Depot, Lowes, etc. Retailers/ Manufacturers WH Manufacturers, Mayo Lama Paper, RHEEM, GE, DAIKIN, Bradford White Sander AO Smith (Bradford White, Sander). American Water Works Labs/ Researchers GTI (Gas Technology Institute) ACEEE (Hot Water Forum) EPRI NREL & Oalcridge, DOE (Standards). Ken Eklund (WSU) Jim Lutz (Formerly LBNL) Installers/ Distributors GENSCO and other distributors (Mark Sterns – Seattle GM), (Ferguson) New Construction Builders Roto Rooter FAST waterheat Refrigerant Requirements Organizations: AHRI, EPRI (for Dinitrovic R.D), ASHRAE (refrigent watery grap - contact via R.D), International Refrigerant Working Group ( contact via R.D).