1. ENERGY STAR ® Commercial Food Equipment Industry Meeting: Hot Food Holding Cabinets Rachel Schmeltz, US EPA Chicago Hilton May 20, 2003

2. Meeting Agenda Overview of ENERGY STAR The Specification Development Process EPAs Partnership Agreement Draft Specification for Commercial Hot Food Holding Cabinets Next Steps

3. What is ENERGY STAR ® ? Government-backed symbol that makes it easy for purchasers and users to identify products that save energy, save money and help protect the environment without sacrifice in quality or performance Products that earn the ENERGY STAR prevent air pollution, including emissions of greenhouse gases, by meeting strict energy efficiency guidelines set by the U.S. EPA and DOE Voluntary partnership

4. One label at the national level More than 35 product categories to date –Qualifiying products generally represent top 25% of models in their category at the time the specification is set Products either qualify or dont qualify –Manufacturers test and label products –No cost for participating What is ENERGY STAR ® ?

5. ENERGY STAR Qualified Products Residential products –Household appliances –CFLs and light fixtures –Consumer electronics –Heating and cooling equipment –Office equipment –Ceiling fans –Windows –Water coolers –Dehumidifiers

6. ENERGY STAR Qualified Products Commercial Products –Heating and cooling equipment –Roof products –Traffic signals/exit signs –Commercial solid door refrigerators & freezers New Products in Development –Commercial food service equipment –Refrigerated beverage vending machines

7. Activities to Support Partners and Products Publicity and consumer education –Public Service Announcements in print, TV, and radio –Annual National Promotions for Lighting, Cooling Equipment, Home Electronics, and Home Appliances –Website - www.energystar.gov –Consumer brochures Marketing tools and financing Recognition with annual awards Purchasing tools including sample procurement language

8. ENERGY STAR Success ENERGY STAR works with many stakeholders to reduce greenhouse gas emissions including –Manufacturers, retailers, and state and utility partners More than 1,250 manufacturers labeling more than 18,000 product models More than 800 retailers (20,000+ storefronts) 160 state energy agency and electric utility partners - spending $1 billion to date to support ENERGY STAR - supplying nearly 60% of US customers To date, American consumers have purchased more than 825 million ENERGY STAR qualified products

9. ENERGY STAR Impact ENERGY STAR is recognized by 40% of consumers nationwide Awareness exceeds 50% in areas where utility/state programs are active High brand loyalty: most ENERGY STAR purchasers would recommend ENERGY STAR to others In 2001 alone, ENERGY STAR helped purchasers reduce greenhouse gas emissions equivalent to 12 million cars while saving $6 billion on their energy bills.

10. Specification Development Process - Guiding Principles Significant energy savings can be realized on a national basis Product performance can be maintained or enhanced with increased energy efficiency Purchasers will recover their investment in increased energy efficiency within a reasonable time period Efficiency can be achieved with several technology options, at least one of which is non-proprietary Product energy consumption and performance can be measured and verified with testing Labeling would effectively differentiate products and be visible for purchasers

11. Developing an Effective Label Energy and environmental analysis Market research and design analysis Specification development (with significant stakeholder involvement)

12. Specification Development Process Market Assessment Design Analysis GO NO-GO DECISION Develop Draft Spec. Finalize Spec. & Partnership Agreement (PA) Mfrs. Sign PA & Test Products Savings Analysis IF GO Product Briefing Formal Stakeholder Input Discuss w/ Stakeholders SUMMARY DOCUMENTSUMMARY DOCUMENT

13. ENERGY STAR Partnership Agreement 3 Sections –Commitment Form –Partner Commitments –Eligibility Criteria Commitment Form: only has to be signed once and allows partner to expand product areas at any time Partner Commitments: similar language across ALL products Eligibility Criteria: Product specifications, testing guidelines, and effective dates

14. Three Standard Commitments: Annual submission of product information Clear display of the ENERGY STAR on products, on product packaging, in product literature, and on company Web site Annual submission of ENERGY STAR unit shipment data Essential to continued growth and success of ENERGY STAR! Partner Commitments

15. Annual Submission of Product Information Goal: to ensure qualified product information provided on the Web site is current Qualifying products do not need to be retested if the specification has not changed Submit list of products that continue to qualify Report products that have been discontinued year round

16. Product Labeling Goals: To ensure that participating manufacturers get recognition for their efforts To increase awareness of ENERGY STAR among consumers To make it easy for purchasers, retailers, and/or others to identify energy-efficient models To maintain the integrity of the ENERGY STAR brand by ensuring that the symbol is visible in the marketplace

17. Annual Shipment Data Goal: to determine market penetration of ENERGY STAR; determine program success and if changes are needed EPA will work with partners to determine data collection format Data can be masked and/or aggregated Data may be provided by a third party or trade association on behalf of its members

18. ENERGY STAR for Commercial Food Service Equipment Solid Door Refrigerators & Freezers Specification in place since September 2001 11 manufacturer partners with qualified products As of April 2003: 139 refrigerator models and 172 freezer models available In 2002, 10% of products shipped were ENERGY STAR qualified

19. ENERGY STAR for Commercial Food Service Equipment EPA is interested in expanding the suite of energy efficient commercial food service products to: Commercial Fryers Commercial Pressureless Steamers Commercial Hot Food Holding Cabinets

20. Potential For Commercial Hot Food Holding Cabinets A number of manufacturers and end users have shown interest in ENERGY STAR Significant savings potential, mainly due to insulation Non-proprietary, high efficiency technologies are currently available Sound test methods are currently available Proposed specifications are in line with existing Federal Energy Management Program (FEMP) recommendations

21. Energy Savings Potential ENERGY STAR qualified Hot Food Holding Cabinet unit energy savings: 3,900 kWh/yr and $266/yr –Lifetime bill savings: $3,760 Cumulative carbon savings: 0.08 MtC (2010) Number of cars off the road: 13,181 (2010) Assumptions: –Equipment lifetime: 15 years –39,000 units shipped and 515,000 units in stock (2003) –35% market penetration of ENERGY STAR qualified products –Conventional cabinet energy consumption (8,300 kWh/yr) vs. ENERGY STAR energy consumption (4,400 kWh/yr) –Electricity price: $.07/kWh

22. Eligibility Requirements Broken down into the following sections: Definitions Qualifying Products Energy-Efficiency Specifications Test Criteria Future Specification Revisions

23. Definitions Define the product and other terms relevant to testing or efficiency requirements: –Commercial Hot Food Holding Cabinet –Idle Energy Rate – Dry Questions for discussion: (1) Are there other definitions that should be included? (2) Are current definitions accurate?

24. Qualifying Products Product sub categories that may qualify under the specification –All Hot Food Holding Cabinets Question for discussion: (1) Are there any sub-product categories that should be included? (2) Can hot food holding cabinets be sub-categorized further?

25. Energy-Efficiency Specifications Idle Energy Rate Requirements for Hot Food Holding Cabinets Full-Size Cabinet< 800 watts Three-Quarter Size Cabinet< 650 watts Half-Size Cabinet< 450 watts

26. Energy-Efficiency Specifications Questions for Discussion: (1) Availability of more data? (2) Is the specification level reasonable; does it represent about top 25% of models in terms of energy efficiency; if not, what level would give good representation?

27. Test Criteria Testing is self-certified Testing follows ASTM Standard F1240-01 Dry Test - Test Method for the Performance of Hot Food Holding Cabinets Manufacturers will use Qualified Product Information (QPI) form to report products and testing results

28. Effective Date The date that manufacturers may begin to qualify and label products –Will be coordinated with product launch to ensure partner participation and product availability Questions for Discussion: (1) How much time is needed to test, qualify, and label products once a specification is finalized? (2) Is NAFEM the appropriate venue to launch an ENERGY STAR Commercial Hot Food Holding Cabinet specification?

29. Future Specification Revisions If technology and market changes affect the usefulness of the specification to consumers, industry or the environment; EPA looks to revise specification –May have multiple tiers –EPA will work with industry to revise specification E NERGY S TAR qualification is not automatically granted for the life of the product model

30. Next Steps Draft 1 released April 25, 2003 for stakeholder review –Determine Draft review period –Post information from this meeting on the web site –Post all subsequent written comments on the Web site Assimilate industry comments –Obtain more data, if needed, during comment process –Conduct further research as needed Disseminate additional Draft(s) for review Finalize specification and launch –Mfrs sign Partnership Agreement

31. For More Information Rachel Schmeltz, EPA (202) 564-9124 or schmeltz.rachel@epa.govschmeltz.rachel@epa.gov ENERGY STAR Product Development Web site –www.energystar.gov/productdevelopmentwww.energystar.gov/productdevelopment