ENERGY STAR® Refrigerated BeverageVending Machine Industry Meeting

Rachel Schmeltz, US EPA

Georgia World Congress CenterOctober 22, 2002

Meeting Agenda

• Overview of ENERGY STAR

• The History and EPA’s Interest in Vending Machines

• Utility Interest and Opportunities• Draft Specification for Vending

Machines• Retrofit and Installed Base Discussion

What is ENERGY STAR®?

• Government-backed label that makes it easy for purchasers and users to identify products that save energy, save money and help protect the environment without sacrifice in quality or performance

• Products that earn the ENERGY STAR meet strict energy performance criteria set by the US EPA or DOE

• Voluntary partnership

The ENERGY STAR Label

• One label at the national level

• Over 30 products to date– Representing top 25% in their category for

efficiency

• Products either qualify or don’t qualify– Manufacturers test and label products – No cost for participating

ENERGY STAR Qualified Products

• Residential products– Household appliances

– CFLs and light fixtures

– Consumer electronics

– Heating and cooling equipment

– Office equipment

– Ceiling fans

– Windows

– Water coolers

– Dehumidifiers

ENERGY STAR Qualified Products

• Commercial Products– Heating and cooling equipment– Roof products– Traffic signals/exit signs– Commercial solid door refrigerators

• New Products in Development– Commercial food service equipment– Refrigerated beverage

vending machines

Criteria for Product Selection

Significant energy savings potentialEfficiency is cost-effectivePerformance is maintained or enhancedEfficiency is achieved with non-proprietary

technologyProduct differentiation and testing are

feasibleLabeling would be effective in the market

Developing an Effective Label

Energy and environmental analysis

Market research and design analysis

Specification development (in cooperation with stakeholders)

Activities to Support the Label

• Publicity and consumer education

• Marketing tools and financing

• Recognition with annual awards

• Purchasing tools

ENERGY STAR Success

• More than 1,200 manufacturers labeling more than 13,000 product models

• More than 400 retailers (16,000 storefronts) including Sears, Wal*Mart, Lowes, and Home Depot

• 160 state and utility partners supplying nearly 60% of US customers

• To date, American consumers have purchased more than 750 million ENERGY STAR labeled products

ENERGY STAR Impact

• ENERGY STAR is recognized by 40% of consumers nationwide

• Awareness exceeds 50% in areas where utility/state programs are active

• High brand loyalty: most ENERGY STAR purchasers would recommend ENERGY STAR to a friend

Why ENERGY STAR Works

• Adds value to products & services

• Simple --- consistent platform

• Flexible --- partners can take ownership

• Builds on existing market structures

ENERGY STAR Partnership Agreement

• 3 Sections– Commitment Form– Partner Commitments– Eligibility Criteria

• Commitment Form: only has to be signed once and allows partner to expand product areas at any time

• Partner Commitments: similar language across ALL products

• Eligibility Criteria: Product specifications, testing guidelines, and effective dates

ENERGY STAR Partnership Agreement

Three Standard Commitments:

• Annual submission of product information

• Clear display of the ENERGY STAR label on products, on product packaging, in product literature, and on company Web site

• Annual submission of ENERGY STAR unit shipment data

Essential to continued growth and success of ENERGY STAR

Annual Submission of Product Information

Goal: to ensure qualified product information provided on the Web site is current

• Qualifying products do not need to be retested if the specification has not changed

• Submit list of products that continue to qualify

• Report products that have been discontinued year round

Product Labeling

• Goals:

– To ensure that participating manufacturers get recognition for their efforts

– To increase awareness of ENERGY STAR among consumers

– To make it easy for purchasers, retailers, and/or others to identify energy-efficient models

– To maintain the integrity of the ENERGY STAR brand by ensuring that the label is visible in the marketplace

Annual Shipment Data

Goal: to determine market penetration of ENERGY STAR

• EPA will work with partners to determine data collection format

• Data can be masked and/or aggregated• Data may be provided by trade association

on behalf of its members

EPA’s History with Vending Machines

• Efforts began over 5 years ago with limited success– Energy savings/pollution prevention potential sparked

EPA interest– Improved understanding of market and split incentives– Difficult to get reliable data on which to base a

specification

• Recently jump started again– Machine improvements by manufacturers– Recognition by beverage companies of importance of

energy efficiency– Interest from utilities

Working toward an ENERGY STAR specification

• To date, EPA has limited data on machine energy consumption– Need to augment dataset to ensure that

specification captures at least the top 25% of the market

– Build understanding of the market and where ENERGY STAR could play a role

• For both new machines and installed base

Vital to developing a successful specification

Working toward an ENERGY STAR specification: Next Steps

• Preliminary Draft available for review– Determine Draft review period– Post comments on the Web site

• Assimilate industry comments– Obtain more data– Further research as needed

• Disseminate additional Draft for review• Finalize specification and launch

– Mfrs sign a Partnership Agreement