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ENERGY STAR ® & Air Cleaners January 14, 2003 McCormick Place, Chicago, IL Andrew Fanara, EPA fanara.andrew@epa.gov
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Meeting Topics Overview of ENERGY STAR The Benefits and Successes of ENERGY STAR EPA’s Interest in Air Cleaners Savings Potential of Air Cleaners The Product Development Process Next Steps
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Program Basics Program Objective –Government-backed label making it easy for purchasers to identify energy saving products –Strict energy performance criteria set by US EPA and DOE –Voluntary partnership
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Product Categories More than 30 product categories to-date including both residential and commercial products –Some home comfort products include dehumidifiers, HVAC equipment, programmable thermostats, ceiling fans, and more….
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Product Categories
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Who Participates in ENERGY STAR? Manufacturers Retailers Small Businesses Utilities Builders and Building Managers Government Agencies Non-Governmental Organizations
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Who Benefits from ENERGY STAR? Consumers: Save money on utility bills Retailers: Loyalty to consumer needs and concerns about energy and the environment Manufacturers: Environmental stewardship and reward for offering energy-efficient products Utilities: Better load management and possible reductions in capital expenditures The Environment: Less energy Less pollution Cleaner environment
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Success to Date More than 1,200 manufacturers labeling >13,000 product models More than 400 retailers (16,000 storefronts) 160 state and utility partners supplying nearly 60% of US customers To date, American consumers have purchased more than 750 million products that have earned the ENERGY STAR
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Media Campaign Objective –Increase awareness and drive sales Target markets and demographics Generate TV & print adds, news articles, web site content, PSAs, bill stuffers, training materials
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Media Campaign (cont.) Product related print articles range from 250-450 per month In the past year, product related articles reached a circulation of more than 5 billion
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Media Campaign (cont.) Partner Efforts: More than 600 companies advertise ENERGY STAR products per month in print –up from about 500 a year ago About 8,000 print ads display the ENERGY STAR –appliance and windows >3000 –HVAC ~1000
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Print Example
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Labeling Example
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Media Campaign: PSAs Three PSAs released: lighting, office equipment, and ENERGY STAR Homes –Distributed to 150 top TV markets, 50 top daily newspapers, 1000+ magazines, 35 national radio networks –More than $5 million in equivalent ad value (TV, radio, print) –Airing in the best day-parts more than half the time Performing 15% better than the average government PSA
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Why Air Cleaners? Significant energy savings potential Indoor air public heath concerns Retail opportunities Promotional opportunities via EPA’s home improvement initiative Interest from air cleaner manufacturers
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Why Air Cleaners (cont.)? Projected increase in consumer interest and sales* Little market incentive for energy-efficient air cleaners Opportunity for product differentiation *Source: www.cadr.org (an AHAM Web site); and American Lung Association/ Honeywell, white paper, "Residential Air Cleaning Devices: Types, Effectiveness, and Health Impact."www.cadr.org
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Several retailers have developed home environmental departments carrying an emerging line of home products –Air cleaners are a key product offering ENERGY STAR retail partners represent well over 50% of room air cleaner sales –Home Depot, Lowes Companies, Sam’s Club, Sears Roebuck and Company, Wal-Mart Stores, etc. Retail Opportunities
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Preliminary Projected Pollution Savings
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Assumptions behind Projections Year 1 market penetration = 16% Out years stable at 20%: –Equivalent to removing carbon dioxide pollution from 92,000 cars in 2010 –$300 million dollars saved 2003 – 2010 (no discounting) –Projected lifetime savings per air cleaner = $210* per household (no discounting) * Assuming a lifetime of 8.5 years and a constant energy savings, projected lifetime savings = annual energy savings X annual projected electricity price
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Assumptions behind Projections (Contd.) Shipments in 1,000s* –1995 = 1,900 –2000 = 1,650 –2010 = 2,020 (assumes a 3% yearly growth) –2010 stock = 15 million units Lifetime = 8.5 Years, Conservative –Appliance Magazine source = 11 years average for electronic air cleaners Residential electricity rate in 2010 = 7.4 cents/kWh (US DOE) Usage pattern – continuous operation *Source: AHAM historical data
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Product Development Guiding Principals Criteria for Product Selection: Significant energy savings potential Efficiency is cost-effective Performance is maintained or enhanced Efficiency is achieved with non- proprietary technology Product differentiation and testing are feasible Labeling would be effective in the market
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Specification Development Process Energy and environmental analysis Market research and design analysis Specification development (in cooperation with stakeholders)
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Specification Development Process (cont.) EPA cooperates with stakeholders: – Transparency All stakeholder comments posted to ENERGY STAR Web site EPA releases a Decision Memo at the end of the product development process which addresses all comments and provides justification of specification levels and requirements – Open door policy – Manufacturer participation
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Specification Development Process (cont.) It is not EPA’s intention to set a specification that allows all products to qualify – Strive for at least 25% of the market; top performers Performance based; technology neutral; encourages quality maintenance
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Specification Development Process (cont.) To define a test standard, EPA will build on existing test procedures How to best build on AC-1 –Wattage is currently measured and collected –Wattage is not written into current test procedure, yet consistently measured by labs –Could a test method be derived for an ENERGY STAR specification?
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Partnership Agreement Once the specification is finalized, companies must sign a Partnership Agreement with EPA – By signing, partner agrees to develop, label, and promote qualified products according to the Program Requirements (i.e., specification) for that product Product is launched at trade show or other industry event –Partners that sign Agreement prior to the event may participate in the launch
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Next Steps Draft an energy consumption test procedure and Draft 1 specification Collect additional product performance data (Watts) Determine an appropriate measurement of both quality and energy efficiency –For example; CADR/Watts
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Extra Slides
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Assumptions behind Projections (Cont.) UECs calculated from Access Business Group test data. ENERGY STAR UECs assume 2 CADR/Watt specification. Assume a continuous duty cycle and operation conditions in a laboratory setting. CADRBaseline UEC (kWh/yr) ENERGY STAR UEC (kWh/yr) 0-5025073 51-100596322 101-1501072519 151-2001480756 201-2501887993 Over 25016411251
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Preliminary Energy Usage Data Performance and energy usage data provided by Access Business Group -Data obtained for 38 air cleaner units -CADR performance rating obtained from AHAM directory -Energy consumption data determined by actual tests performed by Access Business Group Data shows wide range of product differentiation CADR range: 2 - 300 Energy consumption (watts) range: 4 - 300 CADR/watts range: 0.4 – 3.82
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Air Cleaner Performance Data Analysis Source: Access Business Group database of model performances
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Air Cleaner Performance Data Analysis Source: Access Business Group database of model performances
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The New Mark and Why Can now be read as ENERGY STAR Not recessive, works better when small Box is stronger, more authoritative Blue is aspirational One color makes it easy, more recognizable It is a relatively easy change to make Government sponsorship and source of authority -- isn’t part of mark, but will be an important part of our messaging
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Example of current mark Can read SEARS, Kenmore, and TRANE Where is ENERGY STAR?
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Example of new mark Works better ENERGY STAR adds value, is complementary
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Again Can read LOWES, SHARP, etc. Can you read ENERGY STAR?
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