Residential LED UES Measure Update Regional Technical Forum August 20, 2013

Residential LEDs Measure Overview 2 Current CategoryProven Current StatusActive Current Sunset Date – or upon adoption of an update to the Energy Star Integral LED Lamps Version 1.4 Draft 3 specification if significant changes occur Reason for Update/ReviewAddition of Direct Install, Mail-by- Request, and Give-Away delivery mechanisms Subcommittee ReviewNo

Measure Descriptions [Review summary tab from proposed measure workbook] 3

Summary of Updates – Delivery Mechanisms 4 RetailDirect InstallMail-by- Request Give--Away BaselineCurrent Practice, EISA adjusted Average of all baseline lamp categories and room types Pre-condition, EISA adjusted Average of all baseline lamp categories and room types Pre-condition, EISA adjusted Average of all baseline lamp categories and room types Categorization Lamp type Lumen bin Lamp type Lumen bin Baseline lamp category Room type Lamp type Lumen bin Lamp type Lumen bin Cost[Retail LED] – [Retail Baseline] [Bulk LED] + [Labor] [Bulk LED] + [shipping and handling] [Bulk LED] Storage Rate0% 24% Takeback Rate0% Removal Rate0%4% Added for v3

Summary of Updates – Revisions to v2 Corrections Hours of use – correct weighting HVAC interaction - Remove application of HVAC interaction to “Garage” and “Exterior” HVAC interaction - Apply HVAC gas reduction to unadjusted electric savings, not HVAC adjusted electric savings EISA Adjustment - Restrict EISA adjustment for reflector lamps to those under 65 W Watt baseline lamps - Exclude from analysis – no lumen-comparable LED products available Base case costs - Correction to weighted averaging of base case costs (by incandescent/halogen/CFL) Updates LED cost – Limit analysis to categories for which we have LED costs LED cost – Update material costs to those observed in 2013 PSE retail program Energy Star Qualified Product list - updated from March 2013 to July

Summary of Updates – Revisions to v2 Changes to number of retail measures – Removal of Directional 2600 lumens - Update Energy Star Qualified Product list, from March 2013 to July This removes the directional, 2600 lumen category because there are no longer any Energy Star qualified products in this category. In the March dataset, there was one product, but with suspiciously low wattage. – Removal of Directional 1690 lumens – No retail cost data available. 6

Summary of Updates – Revisions to v2 7

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Overview of Approach – RBSA Analysis RBSA – Categorize all records by – Lamp category (incandescent, halogen, CFL) – Lamp type (decorative, omnidirectional, directional) – Lumen bin midpoint (250, 490, 840, 1190, 1690, 2600) – Room type (living room, kitchen, closet, etc.) Assign EISA adjusted wattage to each record (based on lamp category, wattage) Assign hours of use to each record, by room type (KEMA, DOE) Assign lamp lifetime to each record, by lamp category. CFLs lifetimes are derated as a function of room type. Assign baseline lamp cost to each record, by lamp category (and possibly by lumen bin) 10

Overview of Approach – RBSA Analysis Determine average values for categories of interest, weighted by product of [site weight] and [lamps per record] – Baseline EISA adjusted wattage – HOU – Lifetime – HVAC interaction applicability (0% for “exterior” and “garage” room types, 100% for all other room types) – Baseline lamp cost Categories: – Direct Install – all combinations of lamp category, lamp type, room type, and lumen bin – Retail, Mail-by-Request, and Give-Away – all combinations of lamp type and lumen bin 11

Overview of Approach – LED Parameters LED Wattage – Energy Star qualified product list (update from March 2013 to July 2013 list) LED Cost – Retail costs from PSE – Bulk costs from Fluid Market Strategies – In most categories, retail costs were less than bulk costs; retail material costs were therefore used for all delivery channels LED Lifetime – Capped at 12 years. Equipment has not been field tested to rated lifetimes. (Professional judgment) Categories: – All delivery mechanisms– all combinations of lamp type and lumen bin 12

Remaining Issues for RTF Discussion Baseline equipment costs – – Single cost across all lumens? (e.g. single cost for omnidirectional incandescents). – Specific cost where data permits, average cost elsewhere? (e.g. specific costs for omnidirectional incandescents in lumen bins where data exists, average omnidirectional incandescent cost for other lumen bins. 13 Baseline costs using lumen-specific averages (green: n=0) == Baseline costs using a single average across all lumens

Remaining Issues for RTF Discussion Baseline equipment costs – 14 Effect of going from lumen specific costs to average costs across all lumens

Measure Analysis and Inputs Details [Review summary tab from proposed measure workbook] – Constant Parameters – Energy Savings Estimation Method, Parameters and Data Sources – Measure Incremental Costs and Benefits – Measure Lifetime 15

Summary of Changes Effects on retail measures – Changed values, changed complete bins with complete data Inclusion of additional delivery mechanisms – [review “DirectInstallSummary” and “Retail Summary” tabs] Data sufficiency Results (Savings, B/C) 16

Staff Proposal Approve the updates to the residential lighting LED UES measure. No change to measure category, status, or sunset date. 17

Decision “I _______ move to approve the updates to the residential lighting LED UES measure, with no change to the measure category, status, or sunset date.” 18