Refrigerator and Freezer Decommissioning: Deemed Measure Review and Update Regional Technical Forum June 29th, 2010 Overview of Measure • Measure Description – Early retirement of residential refrigerators and freezers • • • In-home pickup: main method Retailer pickup: programs beginning to explore this option Measure Requirement – Must be in working condition (makes cold) – At least 10 ft3 in capacity – Must be decommissioned and its components recycled • History – Originally, RTF established a deemed calculator – June 2005 – RTF established deemed savings for residential refrigerator recycling – April 2007 – RTF established deemed savings for residential freezer recycling • Scale & Available PNW Data – 7 PNW Utilities’ 2009 programs recycled 34,000 units • Translates to nearly 4 aMW using current RTF values – Data collected by JACO in the following utility programs: • • Avista, ETO, Snohomish, Tacoma, Seattle, PSE, and Idaho Power Current Deemed Measures: Incremental O&M Costs ($/unit) Annual Savings @ Site B/C Ratio (kwh/yr) (5th Plan) Sector Procost Full Measure Name Incremental Capital Cost ($/unit) Residential Refrigerator Decommissioning and Recycling $ 140 $ - 9 905 2.2 Residential Freezer Decommissioning and Recycling $ 140 $ - 8 925 2.0 Measure Life (years) 2 Measure’s Relationship to 6th Plan Reason(s) it's not in the Plan • The Plan already accounts for savings from natural replacement of the existing stock. – – • Savings from refrigerator decommissioning only last until the unit would be replaced on normal burnout, something well short of 20 years. – – • The baseline condition is "standard practice" efficiency of new equipment at the start of the Plan (2010). With a 20-year life, all refrigerators get replaced during the planning period with at least the baseline condition efficiency. The savings from existing equipment efficiency to current standard practice efficiency are already "locked in" since codes/standards/standard practices are not assumed to go backward. There is no additional savings potential over the long-term from decommissioning. The Plan acknowledges it does not provide an exhaustive list of all the available cost-effective measures that can be performed over the next 20 years. Reason(s) utilities can claim "early retirement" savings • • Decommissioning saves energy. Decommissioning gets the Region to the long-term target early (speeds up natural replacement) – – Assuming the savings are cost-effective, this adds value to the Region. Cost-effectiveness depends on a number of factors • how programs are structured, the natural replacement cycle, the age distribution of the stock being decommissioned, the cost of the decommissioning, the timing and depth of future improvements in standards, etc. Note: Since savings from refrigerator decommissioning are much like the savings achieved with code/standard changes, we have to take care not to count them twice when reporting regional savings in the regional roll-up. 3 Measure Analysis Overview Energy Savings = (kWhold)×(Fpartuse) ×(Baselineadjustment) • kWhold: Average Annual Energy Use of Recycled Refrigerators (and Freezers) • Fpartuse: Part-Use Factor • Takes into account units that would have been operated part of the year, or not at all • Baselineadjustment: Baseline Adjustments – Takes into account units that would have been taken out of service without the program Measure Life = Remaining Useful Life of the Equipment Measure Cost = Collection Cost + Recycle Cost + Incentive + Program Administration Costs 4 “It is clear that, despite over a decade of practice, evaluations of appliance recycling programs continue to suffer from significant uncertainty in key performance parameters.” [Eric Daly, Val Jensen, and Bruce Wall] “Evaluation of the Energy and Environmental Effects of the California Appliance Early Retirement and Recycling Program,” Energy Program Evaluation Conference, Seattle, 2003. 5 Energy Savings Determining kWhold Site/Lab Factor: Adjustment for DOE test lab performance to in situ performance kWh at-manufacture: AHAM (extrapolated) average annual energy use (labtested) for each model year kWh degradation: Increased energy use from efficiency degradation over time (kWh degradationi = unit agei x performance degradation factor) n: # units recycled in 2009 (JACO 2009 PNW data) C: correction factor to adjust 2009 data to a deemed value for 2010-2012 6 Energy Savings Determining kWhold Site/Lab Factor = 0.81 Issue: DOE Lab Test at 90 deg ambient, empty, no door openings; different than “real world”. Report Summary Results Notes (Ratio of In-situ to Lab Energy Use) Peterson, John et. al. “Gross Savings Estimation for Appliance Recycling Programs: The Lab Versus In situ Measurement Imbroglio and Related Issues.” 2007 IEPEC 202 units were tested both Insitu (2 weeks) and in the lab (following DOE protocol) 0.81 (Table 12) Cadmus, et. al. “Residential Retrofit High Impact Measure Evaluation Report”. For the CPUC. 2/8/2010 Added sites to above. In situ monitoring (166) and lab monitoring (137). 0.81 Simple average of “cool” CA climates (Table 123) 7 Energy Savings Determining kWhold kWh At-Manufacture • AHAM Energy Use Data – Average manufacturer-reported at-manufacture energy use, by year of production. – Data back to 1970’s; extrapolated beyond that – These are the data used by the current RTF analysis • JACO Energy Use Data (not used in savings calc) – At-manufacture energy use by model – Data available for some, but not all (~52%) 8 Refrigerators AHAM (extrapolated) JACO Data 2,000 1,800 1,600 kWh/year 1,400 1,200 1,000 800 600 400 200 On average, for JACO data collected, JACO kWh/year about 7% higher than AHAM - Model Year • AHAM: Market Average, with extrapolation in earlier years; JACO: Average of models with a match 9 1950 1952 1954 1956 1958 1960 1962 1964 1966 1968 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 Number of Units Refrigerators N Recycled N Jaco kWh Data 1,600 1,400 1,200 1,000 800 600 400 200 - Model Year 10 Freezers AHAM (extrapolated) JACO Data 1,600 1,400 kWh/year 1,200 1,000 800 600 400 200 On average, for JACO data collected, JACO kWh/year about 20% higher than AHAM - Model Year • AHAM: Market Average, with extrapolation in earlier years; JACO: Average of models with a match 11 1950 1952 1954 1956 1958 1960 1962 1964 1966 1968 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 Number of Units Freezers N Recycled N Jaco kWh Data 800 700 600 500 400 300 200 100 - Model Year 12 Energy Savings Determining kWhold Performance Degradation Factor = 1.25%/year Report Summary Results Notes ADM. “2009 Second Refrigerator Recycling Program NV Energy – Northern Nevada Program Year 2009; M&V Report.” Feb 2010 Reference to Cadmus data on CA program (2/2010 report) 1.25% per year Methodology not described Miller and Pratt, “Estimates of Refrigerator Loads in Public Housing Based on Metered Consumption Data”, October 1998 Metered 104 existing & 17 new units. Developed a regression function, with age as a variable. 1.37% per Year 1998 KEMA. “2003 EM&V RARP Study: Verification, Degradation & Market Potential Analysis”. For SCE. Dec 2004. Using data from 136 lab (DOE) metered “old” units, compared to new consumption data, tried to find a relationship. (93% of the units showed increased usage) Couldn’t provide a quantitative conclusion ICF Consulting. “Evaluation of the Energy and Environmental Effects of the California Appliance Early Retirement and Recycling Program” for CPUC. 2003. Referenced in SnoPUD evaluations (did not find original report) 0.6% per year 13 Energy Savings Determining kWhold C Factor = 0.95 • Issue – JACO data represent mix of models recycled in 2009; however, deemed savings are for 2010 and beyond (proposed 2-year sunset date) • Suite of units recycled are expected to be of newer vintages (and therefore, more efficient) over the course of program delivery as older units are removed from circulation through the program and naturally. So, kWhold should be expected to fall over time. • Solution – C Factor • Adjusting the 2009 model years by +1, +2, and +3 years, results in: – Refrigerators: 97% (2010) to 91% (2012) of savings calculated for 2009 – Freezers: 98% (2010) to 92% (2012) of savings calculated for 2009 • Assumes same recycled model age distribution as occurred in 2009 – Sunset Date: 2 years • Adjust savings based on most recent program model year data 14 Energy Savings Determining Fpartuse Part Use Factor = 0.91 • Based on participant surveys (of CA Statewide 06-08 ARP by Cadmus, 2010) • Simple Average combined factor for the three utilities = 0.91 15 Energy Savings Determining Baselineadjustment Current RTF Adjustment Description Not Replaced Replaced w/New Unit Kept Unused 6% 6% Retired w/o Program 7% 7% Used Part-Time 10% 10% Replaced w/another used unit 11% 0% Space Conditioning Interaction 0% 6% Net-to-Gross Adjustment=> 70% 74% Share of Units Recycled => 40% 60% Overall Adjustment => 73% • Source: SnoPUD Evaluation – What consumer would have done • References to: ICF 2003, Heschong Mahone 2002, ICF 2003, and City of Fort Collins 2005 – Whether replaced • • JACO data collected through program Where replaced with a new unit, new unit’s consumption is subtracted – This reduces the adjustment to 57% (assuming error is fixed) • Uncovered an error or two – Energy use of models newer than the average (1980) are not included in the average UEC – Adjustments are not summed properly 16 Energy Savings Determining Baselineadjustment What would have happened to the Refrigerator or Freezer without the Program? 1. Would have kept, but not used 2. Would have discarded, and unit destroyed 3. Would have kept and used 4. Would have discarded, but unit still in use Subject to an Adjustment Not Subject to an Adjustment - Baseline adjustment is typically determined through participant and non-participant surveys. - Analysis can be complicated and varies. 17 Energy Savings Determining Baselineadjustment Baselineadjustment = 57% (refrigerators); 68% (freezers) Program Study Com Ed, PY 1 (6/08 - 3/09) ETO, PY 2008-09 PG&E, 2004-05 SCE, 2004-05 SDG&E, 2004-05 PG&E, 2006-08 SCE, 2006-08 SDG&E, 2006-08 Simple Avg Refrigerator NTG 70% 50% 50% 66% 55% 51% 56% 58% 57% Freezer NTG 83% 50% 61% 72% 75% NA NA NA 68% Reference Summit Blue report, 12/2/2009, Table 3, page 3 Innovologie report, 1/2010, Table 33, page 40 ADM Associates, 4/2008, pages 3-11 and 3-14 Cadmus Group, Residential Retrofit High Impact Measure Evaluation Report, 2/8/2010, Table 134, page 150 18 Energy Savings Issue/Discussion Proposed Baseline Adjustment method assumes a 1-for-1 reduction in the # of refrigerators remaining in the population. (Less refrigerators per household) • This assumption causes an overstatement of savings. - In some cases, units that are recycled would have been used* in a “required” situation. Because of the program, the user* is forced to acquire an alternative unit. - On average, we would expect the efficiency of the alternative unit to be higher than the efficiency of the recycled unit - In these cases, savings should be kWhRecycledUnit – kWhAlternativeUnit, not simply kWhRecycledUnit • However, there are no data to support an adjustment. - Example: Existing RTF method subtracts the new unit’s energy use (assumed to be Energy Star energy use) for all units reported by program participants as “replaced with a new unit”; and assigns 0 kWh/yr savings to all units reported as “replaced with a used unit”. • Issue: Program participant responses are mostly irrelevant to this issue; whether the subsequent user* would have used the unit in a “required” situation is relevant (and unknown). - What value to use for kWhAlternativeUnit? • Solution: (?) Options – Judgment Call - A: Assume it’s a small effect, so ignore it. - B: Assume some amount (50%?) of refrigerators are “replaced” in some way, and assume the “replacement” unit uses (500?) kWh/year.(kWhAlternativeUnit) * The “user” in this case could be the program participant, or the next would-be owner of the unit. 19 Energy Savings Recap & Results Energy Savings = (kWhold)×(Fpartuse) ×(Baselineadjustment) Variable Refrigerators Freezers site/lab factor 81% 81% kWh at manufacture (avg) 1,078 988 kwh degradataion (avg) 368 417 C factor 95% 95% kWh old (avg) 1,117 1,085 F part use 91% 91% Baseline adjustment 57% 68% Savings 582 675 20 Measure Life 30 Remaining Measure Life vs. Model Year Measure Life 25 20 15 10 5 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 0 Model Year • Continue using RTF’s relationship of age to measure life (graph) – Updated to 2010 as start year – Prior to 1975, remaining life constant at 6.1 years • Apply measure life to all 2009 JACO data to develop a weighted average Type REF FRZ Average Weighted Average N Model Year Measure Life (yrs) 1984.7 23,714 9.1 1978.2 8,350 6.2 21 Measure Cost • Current RTF assumed measure cost: $140/unit – $110 for implementation • Pickup costs • Recycling costs • Data collection and tracking – $30 customer incentive • Proposed updated measure cost: $130/unit – $100 for implementation • Costs have come down (per JACO and Phil Sisson estimates) – Customer incentive remains in the RTF measure cost since it’s an integral part of the program (not a transfer payment) 22 Proposed Measures (Results) • Option A Increm ental Measure Annual Total Societal Capital Cost Life Savings @ Benefit / Cost Ratio ($/unit) (years) Site (kw h/yr) (TRC B/C Ratio) Sector Procost Full Measure Nam e Residential Freezer Decom m issioning and Recycling $ 130 6.0 675 2.4 Residential Refrigerator Decom m issioning and Recycling $ 130 9.0 582 3.0 • Option B Increm ental Measure Annual Total Societal Capital Cost Life Savings @ Benefit / Cost Ratio ($/unit) (years) Site (kw h/yr) (TRC B/C Ratio) Sector Procost Full Measure Nam e Residential Freezer Decom m issioning and Recycling $ 130 6.0 555 2.0 Residential Refrigerator Decom m issioning and Recycling $ 130 9.0 482 2.5 • Update measure with new program data w/in 2 years • Decision? 23 Other Questions • Utilities are starting programs to recycle appliances collected by New Appliance Dealers (not in-home pickup). – Should these be handled as a separate deemed measure? – Baseline adjustment could be different for these types of programs. – Adjustment may be expected to be lower for retail-pickup programs than in-home pickup programs since retailers often offer this service already – However, recent survey results in ComEd territory showed higher NTG for retail-pickup versus in-home pickup (very small sample size, though) – Proposal: • Provisionally deem these with the same values. (no distinct measure) • Evaluation suggested. • Review in 2 years. (likely to have more data from national sources) • Should Residential-style refrigerators from non-residential buildings be allowed? • JACO reports some utilities allow these, but they’ve only come in in very small numbers. • Proposal: Yes, allow them. 24