1. ENERGY STAR Criteria for Clothes Washers Review of Market Impact Analysis of Potential Changes Bill McNary D&R International August 31, 2004

2. Impetus for Clothes Washer Criteria Discussion On January 1, 2007, the Federal standard will increase to a minimum Modified Energy Factor (MEF) of 1.26 from the current minimum MEF of 1.04. Discussions are necessary to insure that the criteria will: –Provide differentiation between ENERGY STAR qualified products and products just meeting the Federal standard. –Provide an economic incentive for consumers, utilities, and other stakeholders to invest in the ENERGY STAR program. DOE also wants to examine ways that the ENERGY STAR clothes washer criteria might provide significant water savings.

3. MEF – Increasing Average DateAverage MEFNumber of Qualified Products Above Average January 1, 20011.6523 January 1, 20021.6533 January 1, 20031.7038 January 1, 20041.7445 June 30, 20041.7377 August 20, 20041.7481

4. MEF – Decreasing Savings Date of Standard and Criteria Average Energy Use Federally Qualified Model Average Energy Use ENERGY STAR Qualified Model Savings of ENERGY STAR Qualified Model January 1, 2001829 kWh/year297 kWh/year532 kWh/year January 1, 2004615 kWh/year254 kWh/year361 kWh/year January 1, 2007430 kWh/yearTo Be Determined

5. MEF – Qualified Models at Various Levels Minimum MEFNumber of Qualified Products Available* 1.42181 1.55125 1.60120 1.65110 1.7094 1.7192 1.7580 1.8072 2.0027 *ENERGY STAR Product Database, D&R International, August 20, 2004

6. Water Factor Issue Currently neither the Federal standard nor the ENERGY STAR clothes washer criteria contain any limits on water consumption. Although there is a correlation between an increase in MEF and a decrease in water consumption, there are exceptions. 16 current ENERGY STAR qualified clothes washers actually use more water per year than the average non-qualified clothes washer. States and water utilities are hesitant to promote ENERGY STAR qualified clothes washers without guaranteed water savings.

7. Qualified Products Available - Scenarios None9.58.57.56.55.5 1.42181144102766350 1.6012011391726350 1.70948776645645 1.71928574625443 1.80726966585142 2.0027 26 2321 Maximum Water Factor Minimum MEF ENERGY STAR Product Database, D&R International, August 20, 2004

8. Potential Energy Savings MEFENERGY STAR Shipments (20% penetration) Average Energy Use Federally Qualified Model Average Energy Use ENERGY STAR Qualified Model Savings of ENERGY STAR Qualified Model National Aggregate Savings (MWh/yr) 1.61,629,160430 kWh/yr219 kWh/yr211 kWh/yr343,753 1.71,629,160430 kWh/yr208 kWh/yr222 kWh/yr361,674 1.81,629,160430 kWh/yr201 kWh/yr229 kWh/yr373,078

9. Potential Water Savings Max WF ENERGY STAR Shipments (20% penetration) Average Water Use Federally Qualified Model (gallons per year) Average Water Use ENERGY STAR Qualified Model (gallons per year) Savings of ENERGY STAR Qualified Model (gallons per year) National Aggregate Savings (gallons per year) 9.51,629,16014,46810,0554,4137.2 billion 8.51,629,16014,4688,9965,4728.9 billion 7.51,629,16014,4687,9386,53010.6 billion 6.51,629,16014,4686,8807,58812.4 billion 5.51,629,16014,4685,8218,64714.1 billion Assumes tub capacity of 2.7 cubic feet

10. Discussion The upcoming January 1, 2007 Federal standard change for clothes washers necessitates a reexamination of the ENERGY STAR clothes washer criteria. DOE welcomes comments about MEF levels and/or water factor today and by September 17, 2004. Any written comments may be submitted to Richard Karney at Richard.Karney@EE.DOE.GOVRichard.Karney@EE.DOE.GOV