NEEP Notes: HVAC initiatives poised for change in 2007

Regional HVAC Initiatives poised for change in 2007

After almost a decade of experience facilitating the Residential HVAC and Commercial Unitary HVAC Initiatives, NEEP will embark upon significant program transitions in 2007, including the strategic engagement of upstream market actors such as manufacturers and distributors, enhanced integration of gas heating, and the exploration of several emerging program approaches. Historically, NEEP has focused on information sharing among Initiative Sponsors, the development of relationships with the contractor community, and the coordination of customer rebates on new equipment. NEEP has also facilitated the jointly implemented Cool Choice, a common marketing platform and a shared circuit rider for developing contractor and distributor relationships for sponsors of the Commercial Unitary HVAC Initiative. Now, with an increased emphasis on peak demand savings, and armed with new research, both Initiatives will embrace and explore new directions to increase savings and decrease cost.

Targeted research uncovers new opportunities, enhancements

Commercial Unitary HVAC Initiative
During 2006 NEEP facilitated completion of a comprehensive assessment of the commercial rooftop air conditioning segment to create a better understanding of the marketplace and to uncover new opportunities for market transformation. The Phase I research conducted by the New Buildings Institute (NBI) provided a broad review of approaches taken by efficiency programs to address servicing of existing equipment, to reveal significant energy savings potential if protocols can be developed to overcome measurement and verification issues. Phase II research was conducted by KEMA to characterize the market for commercial unitary equipment and assess the effectiveness of the existing Cool Choice program, concluding that now is an opportune time to engage manufacturers in cooperative program activity. Finally, NBI developed a Phase III report to provide recommendations and program strategy options, largely around how to secure savings from existing equipment and how to move upstream with new equipment. These recommendations were the basis for an industry charrette, facilitated by NEEP in October, to garner feedback from key manufacturer and distributor contacts.

Residential HVAC Initiative
Significant research and marketplace changes occurred in 2006 leading NEEP to form a new strategic direction for the Residential HVAC Initiative. The many factors driving change include:

The federal standard for air conditioning equipment was increased to SEER 13.

Duct sealing emerged as a point of interest as a result of whole house programs such as Home Performance with ENERGY STAR.

Concerns about installation quality and resulting opportunities for servicing existing equipment raised in a regional market assessment conducted by RLW Analytics received more attention. For example, the Air Conditioning Contractors of America (ACCA) began developing a quality installation specification in conjunction with federal motion toward separate ENERGY STAR equipment and installation specifications.

A number of pilot efforts were undertaken to address existing equipment, ducts, and comprehensive whole house services.

A New York State Energy Research and Development Authority (NYSERDA) project managed by NEEP and funded by a State Technologies Advancement Collaborative (STAC) grant was completed.

The outcome of all these factors indicate that significant demand and energy savings opportunities exist in the integration of gas heating and electric air conditioning programs to treat the whole house as a system, with an emphasis on installation quality and the engagement of upstream market actors.

Commercial Unitary HVAC Initiative moves upstream

Based on data, recommendations and input from industry, NEEP will lead the Commercial Unitary HVAC Initiative Sponsors to focus on the following in 2007:

Facilitating the development of strong relationships with manufacturers, distributors and contractors to inform upstream market planning efforts and expand program opportunities;

Facilitating the initiation of a limited set of cooperative activities between program administrators, manufacturers, distributors, such as marketing and/or development of an enhanced savings calculator;

Coordinating several models of upstream market activity as proposed by manufacturers and distributors, and sharing the results with the HVAC Working Group for consideration for 2008 program year activities. Models to be discussed include:

An off-season replacement program that leverages utility rebate programs with manufacturer and distributor pricing concessions to meet distributor and contractor interest in balancing the annual work load;

An early retirement program designed to achieve aggressive demand reduction and energy saving targets;

A targeted design-build program aimed at small fast-track new construction projects.

Sharing information regarding program efforts to influence decisions at time of sale; and

Bringing new developments into the regional planning and information sharing process (e.g., exploration of gas heating efficiency opportunities in packaged rooftop units).

As a result of these new strategic emphases, NEEP will no longer facilitate joint-implementation of Cool Choice as Sponsors individually pursue equipment rebates.

With respect to existing equipment, NEEP has proposed that Sponsors facilitate and coordinate efforts focused on the following, to enhance the understanding and development of in-field performance programs:

Tracking of Phase II of a research agenda initiated in the Northwest;

Sharing of program status and progress among utilities in the Northeast;

Further refinement of program approaches based on research results;and

Possible participation by Sponsors in the planned third phase of Northwest initiated research.

Residential HVAC Initiative to integrates gas heating and “whole house” approaches

As in the Commercial HVAC Initiative, research data, pilot program experience and industry input have led NEEP to develop the Northeast Residential HVAC Market Transformation Plan on behalf of the Residential HVAC Initiative sponsors. The plan treats homes as integrated systems, and recommends strategies and activities to achieve savings from:

Leveraging industry partnerships;

Integrating gas heating and s electric-oriented programs;

Supporting emerging technologies such as ductless mini-split heat pumps; and

Upgrading state and federal building codes and equipment standards.

Drawing directly upon the Market Transformation Plan, NEEP will lead the Residential HVAC Initiative to emphasize the following primary activities in 2007:

Developing relationships with the HVAC industry to create cooperative programs for heating and cooling systems and their proper installation;

Coordinating duct sealing efforts regionally;

Monitoring of quality installation and verification (QIV); and

Information sharing regarding new technologies and program approaches.

Research materials referenced in this article can be accessed below.

Phase I Commercial Unitary HVAC Report (NBI)
Phase II Commercial Unitary HVAC Report (KEMA)
Phase II Appendix (KEMA)
Phase III Commercial Unitary HVAC Report (NBI)
STAC Residential HVAC Report
Northeast Residential HVAC Market Transformation Plan
ACCA Quality Installation Specification

Further information can be obtained from Jon Linn, NEEP Commercial Unitary HVAC Initiative Program Manager, and from Melissa Lucas, NEEP Residential HVAC Initiative Program Manager.