The economic impact of the new energy conservation standards, as measured by average life-cycle cost (LCC), is positive for all equipment classes and refrigerants. Additionally, the simple payback period (PBP), is less than the average lifetime of the equipment, which is estimated to be 13.5 years.
The rule will come into effect as of 8 March 2016, with compliance for the new and amended standards to be enforced for all vending machine equipment manufactured in, or imported into, the United States on and after 8 January 2019.
The DOE says the selection of refrigerants CO2 and R290 (propane) “was guided by visible trends within the BVM marketplace and feedback from interested parties during public meetings, in written comments, and during manufacturer interviews”.
In April 2015, the EPA listed propane as acceptable in BVM applications under Rule 19 (80 FR 19454, 19491) of its Significant New Alternatives Policy (SNAP) program.
As well as forecasting greater energy efficiencies, cost savings and significant reductions in CO2 emissions for manufacturers and customers, the amendments to the Energy Policy and Conservation Act of 1975 (EPCA) also include clearer definitions of ‘Class A’ and ‘Class B’ vending machines and two new classes of combination vending machines – ‘Combination A’ and ‘Combination B’ – to remove ambiguity.
Compared to the previous standards, amended in 2009, the DOE anticipates the new standards will save energy at a rate of 16% through the 30-year period, amounting to 0.122 quadrillion Btu (quads). Additionally, the cumulative net present value (NPV) of total customer costs and savings for the period 2019-2048 is expected to range from $0.21 billion (at a 7% discount rate) to $0.51 billion (at a 3% discount rate). The cumulative reduction in CO2 emissions through 2030 amounts to 1.16 Mt, which is equivalent to the emissions resulting from the annual electricity use of more than 160,000 homes.
The DOE also expects the industry net present value (INPV) – the sum of the discounted cash flows to industry for manufacturers using an analysis period from the base year through to the end of the analysis period (2015-2048) – to amount to $94.8 million in 2014, using a real discount rate of 8.5%. Moreover, the DOE says this should not amount to any significant impacts on manufacturing capacity or loss of employment for the industry.
The breakdown of vending machine classes is as follows:
- Class A: any refrigerated bottled or canned beverage vending machine that is not a combination vending machine and in which 25% or more of the surface area on the front side of the beverage vending machine is transparent. Maximum daily energy consumption (MDEC) 0.052 × V + 2.43 ‡
- Class B: any refrigerated bottled or canned beverage vending machine that is not considered to be Class A and is not a combination vending machine. MDEC 0.052 × V + 2.20 ‡
- Combination A: a combination vending machine where 25 percent or more of the surface area on the front side of the beverage vending machine is transparent. MDEC 0.086 × V + 2.66 ‡
- Combination B: a combination vending machine that is not considered to be Combination A. MDEC 0.111 × V + 2.04 ‡
For customers purchasing CO2 BVM equipment, the new standards estimate LCC savings of $65 for Class A; $42 for Class B; $990 for Combination A; and $597 for Combination B equipment in 2014$. The PBP’s range from 0.5 years for Combination B equipment to 2 years for Class A.
For customers purchasing propane systems, the standards estimate LCC savings of $0 for Class A, $361 for Class B, $772 for Combination A, and $610 for Combination B. The PBP’s range from 0.3 years for Combination B equipment to 1.1 years for Class A.
The DOE will continue to “periodically determine whether more-stringent standards would be technologically feasible and economically justified, and would save a significant amount of energy”.
To read the full standards click here: Energy Conservation Standards for Refrigerated Bottled or Canned Beverage Vending Machines