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SEER
13 vs. SEER 12
From
1990 to 2000, appliance efficiency standards reduced
consumer energy bills by approximately 50 billion dollars.
As of 2000, the standards reduced
U.S.
carbon emissions from
fossil fuel consumption by nearly two percent. While
equipment prices have modestly risen under the standards,
Lawrence Berkeley National Laboratory research indicates
that the benefit energy savings are more than three times
the cost on a net-present value basis. In 2000, standards
reduced the peak generating needs by approximately 21,000
megawatts (MW), which is the same as seventy 300 MW power
plants. As old appliances are replaced by new ones the
positive impact of the energy efficiency standards will
continue to grow. From 1990 to 2030, it is estimated that
consumers and businesses will save approximately $186
billion (1997 dollars) just from the existing standards
that have been adopted. Currently, the debate concerning
appliance efficiency standards has revolved around the
Bush Administration’s proposal to weaken the standard
for air conditioners from the SEER 13 standard set by the
Clinton Administration to a SEER 12.
What
is SEER? How does it apply to the energy efficiency of air
conditioners?
The efficiency of central air
conditioning units is governed by
U.S.
law and regulated by the U.S. Department of Energy (DOE).
Every air conditioning unit is assigned an efficiency
rating known as its “seasonal energy efficiency ratio”
(SEER). The SEER is defined as the total cooling output
(in British thermal units or Btu) provided by the unit
during its normal annual usage period divided by its total
energy input (in watt-hours) during the same period.
Why
is air conditioner efficiency currently an issue?
After
finalizing a seven-year public review process, the Clinton
Administration improved the air conditioner efficiency
standard from SEER 10, which was established by Congress
in 1987, to SEER 13. The change from SEER 10 to SEER 13
represented a 30 percent improvement in energy efficiency.
The Clinton Administration decision required all
new air conditioning equipment sold in the
United
States
to comply with the SEER 13 standard by January 2006. In
April 2001, however, the Bush Administration addressed the
possibility of weakening the standard to SEER 12, and in
July, DOE formally proposed to roll back the standard.
Prior to
the August recess, the House of Representatives passed
H.R. 4, the “Securing America’s Future Energy (SAFE)
Act of 2001.” In
H.R. 4, the House followed the Bush Administration and
passed a weakened standard for air conditioners of SEER
12, instead of SEER 13.
In
October 2001, the U.S. Environmental Protection Agency
(EPA) officially commented on the DOE proposed roll back
ruling. EPA
stated that DOE overstated the regulatory burden and the
financial pressures on the air conditioning industry and
understated the savings benefits of the SEER 13 standard. The
Deputy Administrator of EPA stated, “EPA believes there
is a strong rationale to support a 13 SEER standard.”
The
issue of SEER 13 vs. SEER 12 now stands before the Senate
to be addressed when the “Energy Policy Act of 2002”
(S.517) is considered on the Senate floor.
S.517 contains a provision setting a SEER 13 air
conditioner efficiency standard (Sec. 927), but a motion
to strike or weaken Sec. 927 is expected.
What
is gained in making a SEER 13 standard
rather than a SEER 12?
According
to EPA, a SEER 13 standard represents a 30 percent
increase in minimum energy efficiency requirements for air
conditioners, in contrast to a 20 percent increase with a
SEER 12 standard. According
to DOE, 4.2 quadrillion Btu, or quads of energy, will be
saved between 2006 and 2030 by a SEER 13 standard. 4.2
quads of energy is the equivalent to the annual energy use
of 26 million
U.S.
households, which has a net savings of approximately $1
billion to the consumer by 2020. On the other hand, a SEER
12 standard will only save three quads of energy during
the same time period.
A SEER 13 standard will also
accomplish more in reducing fossil fuel consumption and
limiting air pollution. The construction of 39
400-megawatt power plants will be avoided by adopting the
SEER 13 standard, which will reduce smog forming nitrous
oxides (NOx) emissions by up to 85,000 metric tons and
cutting greenhouse gas emissions (the gases responsible
for global warming) by up to 33 million metric tons (Mt)
of carbon. In contrast, a SEER 12 standard would only
avoid the construction of 27 400-megawatts power plants,
reducing 73,000 metric tons of NOx and 24 Mt of carbon.
Power plants are major sources of greenhouse gases and the
emissions that cause smog, acid rain and soot pollution.
At a time when many areas throughout this nation are
struggling to improve their air quality and public health
the differences in avoided emissions between SEER 13 and
SEER 12 are significant. Since air conditioners run most
on hot days, the rollback would increase pollution
precisely when air quality problems are at their worst.
Myth #1: The
SEER 13 standard hurts low-income families.
FACTS:
·
The
incremental cost of improved efficiency is three to
eight percent of current equipment costs.
For most families, the extra cost will be made up
through lower utility bills within three and a half
years. Central air conditioners last about 18 years.
·
Most
low-income families with central air conditioning rent
their homes, so they benefit from the energy savings but
do not bear equipment costs.
·
Relatively
few low-income families actually ever purchase or own a
central air conditioner, a product that costs between
$2,000 and $5,000.
·
Saving
money on monthly utility bills is just as important for
low-income families as for wealthier people, which is
why consumer and low-income advocacy organizations like
the Consumer Federation of America, the National
Consumers League, the
National
Consumer
Law
Center
and several state community action agencies support the
SEER 13 standard.
Myth #2: Utility bill savings will not cover
the cost of going to a SEER 13 standard.
FACTS:
·
The
American Council for an Energy-Efficient Economy (ACEEE)
estimates that the incremental cost of a SEER 13 unit
relative to today’s minimum standard SEER 10 unit will
be about $171. With
typical household savings of $48 per year based on
current national average electricity prices, the higher
standard pays for itself in about 3.5 years. Central air
conditioners last about 18 years.
·
If
prices for power go up (particularly in the summer), the
consumer payback will be even quicker.
·
History
shows that manufacturers’ predictions of huge price
increases due to higher standards prove false.
In the 1980s, the air conditioner industry
predicted that the 1992 standard would increase prices
by more than $700.
U.S. Department of Commerce data show that prices
did not go up at all.
Now, some manufacturers are again claiming a new
standard will increase prices by more than $700.
·
The
truth is that the market determines prices, not industry
or government projections.
When faced with the need to compete for the
business of price-conscious consumers, manufacturers
have a very good track record of meeting standards with
minimal price increases.
Myth #3:
The higher standard will prevent people from
replacing their old air conditioners because of the
extra cost. As
a result, people will stick with old, inefficient air
conditioners causing the nation to use more energy.
FACT:
SEER 13 adds three to eight percent to the cost
of a purchase relative to a SEER 10 unit.
When compared to the weaker SEER 12 standard that
some in the industry and the Bush Administration
support, the price difference is even smaller (about 2
to 4 percent). It
would seem unlikely that droves of consumers will decide
to repair rather than replace an old broken-down
energy-hog system over such a small price differential
on a $2,000 to $5,000 purchase.
Myth #4: SEER 13 units are much bigger than
SEER 10 or SEER 12 units, so major renovations will be
required to fit them into existing homes.
FACT:
Some SEER 13 units are significantly bigger, but
many are not. For
example, Goodman Manufacturing makes SEER 13 units using
non-proprietary technology that are only about three
inches larger than their basic units.
The size of the unit depends on the technologies
that a manufacturer uses to improve efficiency; SEER 13
units of all sizes are made now and will be available in
the future.
Myth #5: The higher standard is burdensome
for small manufacturers.
FACTS:
·
Much
of this claim is based on specialty products for markets
like manufactured housing, where space constraints limit
efficiency with conventional technology.
However, DOE said in the final rule that it was
open to exemptions, which is a more appropriate way to
deal with such situations than weakening the standard
across the board.
·
Goettl
Air Conditioning, a small manufacturer based in
Arizona
,
supports the stronger standard.
Goettl notes that
SEER 13 technology will have been made widely available
for more than a decade to all manufacturers by 2006 when
this standard becomes effective.
Myth #6: Eighty-four percent of all models
currently sold will be eliminated.
FACTS:
·
While
true, this should not be surprising.
95 percent of refrigerator models sold in 1997
were eliminated by the refrigerator standard that went
into effect in July 2001, and the appliance
manufacturers support that standard.
·
Most
units sold today just meet the current minimum standard.
In today’s market, SEER 13 units are premium
products sold with high markups to less price conscious
consumers. Once
the new standard goes into effect, the vast majority of
units will just meet SEER 13, and manufacturers will
reestablish new premium lines with higher SEERs
and other premium features.
·
There
are hundreds of distinct models on the market today that
meet or exceed SEER 13.
Some have SEER values as high as 16, 17 and 18.
·
Over
the next five years, the majority of air conditioner
models would probably need to be upgraded to remain
competitive, even if the standard did not change at all.
The
BIG Picture
The
rollback to a SEER 12 standard from a SEER 13 would
sacrifice about one-third of the energy savings that
could be achieved by SEER 13. A SEER 13 standard will
decrease national energy consumption, lower summertime
utility bills for millions of households, reduce
pollution from power plants and improve public health.
Additional
History for Energy Efficiency Standards:
Uniform national
standards for energy efficiency on an array of
products were first put into place in 1987 when
President Regan signed the National Appliance Energy
Conservation Act (NAECA). In 1988, efficiency
standards for fluorescent lamp ballasts were added by
Congress, and in 1992, President Bush signed the
Energy Policy Act, which added new efficiency
standards for certain types of lamps, electric motors
and commercial heating and cooling equipment. The
first Bush Administration continued to add efficiency
standards laying the groundwork for the Clinton
Administration to set new standards for refrigerators,
air conditioners, ballasts, clothes washers, water
heaters, and heat pumps.
Special thanks to the Appliance Standards Awareness
Project (ASAP), the American Council for an Energy
Efficiency Economy (ACEEE), and Goodman Manufacturing
for information contained in this fact sheet. In
addition, EESI would like to thank the Pew Charitable
Trusts, Joyce Foundation, Turner Foundation, George Gund
Foundation, and Ottinger
Foundation.
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