E NERGY S TAR ® E NERGY S TAR Refrigerators and Freezers Richard H. Karney, US DOE July 18, 2001

Structure of Discussion For each category, discuss Should there be an E NERGY S TAR specification? If so, at what level Categories Mid-size refrigerators Freezers Compacts Manual and partial-auto defrost models (refrigerator/freezers and freezers, all sizes)

History of the E NERGY S TAR Refrigerator Specification

NAECA Standard Congress passed the National Appliance Energy Conservation Act (NAECA) in 1987 NAECA set federal energy standards for products and allowed the Department of Energy to amend and set new energy standards

NAECA set the maximum federal energy consumption for 18 different product classes of refrigerators The original NAECA level applied to models manufactured after January 1, 1990 The standards were amended to be approximately 30% more restrictive for models manufactured after January 1, 1993 The standards were amended again to be approximately another 30% more restrictive for models manufactured after July 1, 2001 NAECA Refrigerator Level

E NERGY S TAR Specification The E NERGY S TAR level was originally set at 20% below the NAECA standard in 1997 E NERGY S TAR covers product classes 3-7 (refrigerator-freezers with automatic defrost) On January 1, 2001 the E NERGY S TAR level changed to 10% below the 2001 NAECA standard On January 1, 2004, the E NERGY S TAR level will change to 15% below the 2001 NAECA standard

Refrigerator Categories Product ClassCurrent NAECA maximum energy use (kWh/year) 3. Top Mount Freezer without through the door ice 9.8 * AV Side Mount Freezer without through the door ice 4.91 * AV Bottom Mount Freezer without through the door ice 4.6 * AV Top Mount Freezer with through the door ice 10.2 * AV Side Mount Freezer with through the door ice 10.1 * AV AV = Adjusted Volume = Fresh Volume * Freezer Volume

E NERGY S TAR Coverage Top freezer models must be at least 12.5 cubic feet in total interior volume to qualify Bottom freezer and side-by-side models must be at least 18.5 cubic feet in total interior volume to qualify The EPA has a specification covering commercial solid door refrigerators and freezers

Review of E NERGY S TAR Specification Setting

E NERGY S TAR Purpose Preventing pollution through energy savings Section 103 of the Clean Air Act as amended in 1990 (EPA E NERGY S TAR ) Promoting development and commercialization of energy efficient appliances Section 127 of the Energy Policy Act of 1992 (DOE E NERGY S TAR ) Legislation directs agencies to establish voluntary programs that promote products more efficient than minimum Federal or State codes

E NERGY S TAR Fundamentals Voluntary Reduces Energy Use Prevents Pollution Profitable for partners

National Energy Policy Expand the E NERGY S TAR program beyond office buildings to include schools, retail buildings, health care facilities, lodging, restaurants, and homes Extend the E NERGY S TAR program to additional products, appliances and services Strengthen public education programs relating to energy efficiency

R&D Building Codes and Standards Increasing Energy Efficiency (Metrics) Number of Unit Sales ENERGY STAR Theory of Specification Setting Market Transformation

Specification Setting Criteria Energy Efficiency product should be among the most efficient in its class Commercial Availability must be readily available in the market, cannot rely on proprietary technology owned by one manufacturer Cost effectiveness of price premium if there is a premium, should be justified to the consumer based on cost savings or other benefits Performance qualified models must perform as well or better than other models on the market

Specification Setting in Practice Not all products will qualify… Clothes Washers were added to program in 1997 – only 6.5% of models, representing less than 1% of market share qualified Industry estimates that E NERGY S TAR qualified central HVAC models will have only 4% market share when new specification takes effect in October 2002 Current E NERGY S TAR Appliances market share 10 – 30%

Next Steps 8/2: Comments due to DOE 8/30: DOE issues final specification

Review of Analysis Methodology

Why expand? Industry/Utility/Consumer interest New Models Available Provide motivation to increase product efficiency Provide more efficient option for common household purchase Expansion of Coverage and Eligibility

Current Refrigeration Spec Standard size refrigerators only >12.5 ft 3 for top-mount freezer >18 ft 3 for side-by-side, bottom Initial specification intended to include most common sizes

Proposed Addition to Specification Coverage Mid-sized refrigerators 6.5 to 18.5 ft 3, all configurations Freezers (manual & auto) All residential sizes Compact refrigerators/freezers < 6.5 ft 3 Manual & partial defrost All sizes

Proposed E NERGY S TAR Levels for Expansion 10% below NAECA standard No change Maintain consistency with current specification Consistency aids consumer understanding Exception Compact refrigerators/freezers 20% below NAECA proposed

Mid-size Refrigerators: Market Overview Estimated annual sales: 1.9 million Top mount freezer most common

NAECA and E NERGY S TAR: Mid-size

Proposed E NERGY S TAR Level: Mid-sized Refrigerators 10% below NAECA standard Consistent with current speciation

Compacts: Market Overview Annual Sales: 2.4 million Mostly Manual Defrost Sales Volume Doubled in Last Five Years

NAECA and E NERGY S TAR : Compacts

Proposed E NERGY S TAR Level: Compacts 20% below NAECA standard Why not 10%? 20% created better differentiation Greater energy savings

Freezers: Market Overview 2 million units/year sales 36 million unit stock 1 in 3 households Two manufacturers have 99% of market

NAECA and E NERGY S TAR: Upright Freezers

NAECA and E NERGY S TAR: Chest Freezers

Proposed E NERGY S TAR Levels: Freezers 10% below current NAECA standard Currently, freezers at 10% below NAECA do not exist Manufacturers stated they will produce more efficient product upon introduction of E NERGY S TAR expansion

Estimated Energy Savings Assume 10% market penetration in first year Freezers:13.6 GWh Compacts: 8.2 GWh Mid-sized: 8.7 GWh

Estimated Energy Savings Formula Model technique: Weighted average size (ft 3 ) times average unit energy consumption improvement times annual shipments of Energy Star Units Give aggregate annual consumption

Options to Improve Performance Improve insulation HCFC blown Ins. ends in 2004 New materials being considered Improve compressor performance ECMs for condenser/evaporator Onboard demand management

Conclusion These are proposed performance levels Please make comments today Reminder: Final comments due August 2

Review of Comments Received

Summary Received written comments from over a dozen stakeholders Overwhelming support for refrigerator and freezer expansion Majority support compact addition, but less consensus

Refrigerators: Pro Respond to consumer preference while promoting energy efficiency Support regardless of size, type or defrost as long as it helps attain program goals

Freezers: Pro Opportunity for significant energy savings Any product with FTC EnergyGuide should have E NERGY S TAR label

Compacts: Con Technology not available to meet 20% goal Dilutes program and loses credibility due to limited savings on consumer utility bill (annual and lifetime) Products not as durable, inherently less efficient

Compacts: Pro Without label, no incentive for mfrs to produce or consumers to buy most energy efficient product Consumers should consider energy efficiency Mfrs would like to promote most efficient products

Manual/Partial Auto Defrost: Pro Achieve substantial energy savings Deserve to be able to market energy efficiency Manual defrost chest freezers constitute 50%+ of market

E NERGY S TAR ® E NERGY S TAR Refrigerators and Freezers Richard H. Karney, US DOE July 18, 2001