ENERGY STAR Commercial Products U.S. Opportunities and Status

1. ENERGY STARCommercial ProductsU.S. Opportunities and Status Canadian ENERGY STAR Participants Meeting May 4, 2006 Kate Lewis, U.S. EPA

3. Commercial Foodservice (CFS) Product Sales & ES * From NAFEM Size and Shape of the Industry (2003). Sales and unit shipments are in thousands ** ENERGY STAR Units Shipment Data Report, October 2005

4. Targeted Programs: CFS • CFS Goal: Demonstrate viability of CFS platform • Facilitate communication between industry/Energy Efficiency Program Sponsors (EEPS) • Integrate ENERGY STAR messaging into EEPS programs • Develop and demonstrate CFS “whole-kitchen” concept

6. CFS Objective • Transform the market for energy efficient commercial kitchen products by helping EEPS develop effective programs that promote (1) a bundle of ENERGY STAR qualified commercial kitchen equipment and (2) water-saving and product operating practices/recommendations for restaurants

7. CFS FY 06 Strategies • Establish ES’ credibility with and value for utilities • Help make their existing commercial food service equipment programs as successful as possible • Refine equipment package, usage recommendations, and logic/savings model with utilities • CEE commercial kitchens committee • Demonstrate program support and buy-in from equipment manufacturers • ES CFS partner outreach

8. CFS FY 06 Strategies • Demonstrate market adoption through pilot implementation of the kitchen package with one restaurant chain (independent, small/regional, or national) • Will likely involve ES Buildings and ES Small Business • Document best practices and lessons learned and share those cross-industry • Continue to research other non-restaurant commercial kitchen opptys. for installation of specific qualified products or bundle/suite • Schools and hospitality sectors • Follow the utility rebate funds, direct install programs and sector-focused outreach

9. CFS FY 06 Goals • Early FY 07 (fall 2006) 2-6 EEPS partners/utilities are actively promoting ENERGY STAR qualified CFS equipment to their customers • Via equipment-focused rebates/incentives • Later FY 07 (spring 2007) 1-3 EEPS partners/utilities are actively promoting an efficient commercial kitchen via ES’ approach (the advanced kitchen package) to their customers • Primarily restaurants, but also could include schools or large institutional accounts • Via new construction or commercial rebates/incentives.

10. New Specification Prospects • Battery Charging Systems* • Complement to EPSs • Seeking CEC adoption • Commercial dishwashers • Research ongoing on water and energy • 1st draft target May ’06 • Ice Makers* • Research on water/energy “tradeoff” • Final document Nov ’05 * Product addressed in EPAct 2005

11. Revised Specifications – 2006 • Imaging Equipment: values for products tested using TEC and OM approaches, includes power supply requirement, excludes grandfathering. • Milestones: • Test data due (November 1, 2005) • Distributed second draft specification (December 2005) • Released final specification (April 2006) • Effective date (March 2007) • Industry Concerns/Issues: • Integrated digital front-ends • Allowances for networked equipment • Duplex requirements • Functional adder • Remanufactured components • Recovery time

12. Revised Specifications – 2006 Priorities • Vending retrofits

13. EPS -- Where Are We? • Launched specification in January 2005 • Have recruited 5 end use product manufacturers (EUPM’s) • Have approached 40 to 50 EUPMs overall • Developed graphic for use on packaging (Samsung will be first to use – 2 cell phones in Nov. 05) • Identified target products for manufacturer recruitment (portable electronics products) • Begun general media – raise awareness and recruit Partners • Recruited 18 EPS makers (including 6 of the top 7 makers), representing over 50% of the market, have become ENERGY STAR Partners and supply qualified EPSs. Therefore, active recruitment of EPS makers not a major focus.

14. Initial Focus on High End Portable Devices

15. EPS -- What We’ve Learned • Recruiting new partners can be slow (unfamiliarity with ES, legal issues, # of contacts) • Partner requirements add some obstacles • Label • Presence of English text (HP) • Label overload (brought by several partners) • Acceptability of graphic (Apple) • Efficiency levels • 230V requirements excluding many products • Some manufacturers may not be worth recruiting (Nokia example – already have efficient EPSs, won’t use graphic, legal concerns) • Need case studies and more partners for more effective PR outreach • EUPM Recruitment will drive success not EPS manufacturers

16. Overall Strategy and Activities • Current and Near term: • Directly recruit EUPMs using first to market category tactics • Develop somewhat flexible solutions for use of graphic and alternatives • Develop case studies highlighting success, use of graphic, and benefits to partner • Media outreach • Mid term: • Work closely with participating EUPMs to build number of products and to label them • Begin creating customer preference for products with ENERGY STAR EPSs through PR • Design of recognition and publicity elements • Redesign Website to a recruitment tool • Recruit direct retailer of EPSs (e.g. Targus) • Long term (Expand Market): • Begin working with retailers • Integrate into FEMP specification