Increasing energy efficiency is ubiquitous in many economies, and several mechanisms for achieving this increase, from mandatory policies to voluntary initiatives, have been proposed and implemented. In the United States, the Department of Energy, during the development of its energy conservation standard rules, evaluates the benefits from several of these mechanisms. In this report, we review how estimates of benefits from two types of voluntary energy efficiency initiatives – rebates and voluntary energy efficiency targets (VETs) – compare to the same benefits estimated for minimum energy efficiency standards (MEPS) established in the United States for residential appliances, commercial and industrial equipment, and lighting applications (referred to simply as “products” for the remainder of this report) between 2010 and 2020. Our results show that, overall, these two voluntary measures are estimated to provide, altogether, 36% of the total energy savings estimated to be provided by new efficiency standards, with a total net-present value that corresponds to 52% of the net-present value estimated for standards. When considering all energy conservation rules reviewed in this report, the energy savings a rebate program is estimated to achieve ranges from less than 1% to 86% of the savings from new standards set for the same type of product and at the same level of energy efficiency. As for VETs, the energy savings range from less than 1% to 78% of the savings from standards. Results vary widely across types of products due to (a) the relevance of the monetary incentive relative to incremental upfront costs considered for each type of product, and (b) the estimated level of market barriers associated with each type of product. While voluntary energy efficiency initiatives are not as effective as MEPS in transforming the market and raising the bar of energy efficiency for energy consuming goods in an economy, when applied in tandem with MEPS they can be powerful instruments for promoting and increasing energy efficiency in the economy.

Direct Heating Equipment (DHE) is a category of ductless space heating appliances that supply heat directly to the space where they are installed. While DHE is the primary or secondary heating source in a non-negligible proportion of California households, its performance, installation, and operational characteristics remain poorly understood, as do the main barriers to adopting efficient DHE in the state. Inefficient DHE increases household energy costs, greenhouse gas emissions, and safety and health risks to users. We surveyed households with DHE in California. Results demonstrate that both homeowners and tenants are willing to invest in a new DHE unit to improve their thermal comfort and indoor air quality and reduce fuel costs and environmental impacts. It further shows that the primary barrier to more efficient DHE is their additional cost compared to baseline models. Monetary incentives and building codes that are more stringent can contribute to increasing the adoption of high-efficiency DHE in the state, increasing safety, reducing energy costs for consumers, and reducing greenhouse gas emissions in California.

This paper presents estimates of the key impacts of Federal energy and water conservation standards adopted from 1987 through 2015. The standards for consumer products and commercial and industrial equipment include those set by legislation as well as standards adopted by DOE through rulemaking. In 2015, the standards saved an estimated 4.49 quads of primary energy, which is equivalent to 5% of total U.S. energy consumption. The savings in operating costs for households and businesses totaled $63.4 billion. The average household saved $320 in operating costs as a result of residential appliance standards. The estimated reduction in CO2 emissions associated with the standards in 2015 was 238 million metric tons, which is equivalent to 4.3% of total U.S. CO2 emissions. The estimated cumulative energy savings over the period 1990-2090 amount to 216.9 quads. Accounting for the increased upfront costs of more-efficient products and the operating cost (energy and water) savings over the products’ lifetime, the standards have a cumulative net present value (NPV) of consumer benefit of between $1,627 billion and $1,887 billion, using 7 percent and 3 percent discount rates, respectively. The water conservation standards, together with energy conservation standards that also save water, reduced water use by 1.9 trillion gallons in 2015 and estimated cumulative water savings by 2090 amount to 55 trillion gallons. The estimated consumer savings in 2015 from reduced water use amounted to $12 billon.

Green lawns and landscaping are archetypical of the populated American landscape, and typically require irrigation, which corresponds to a significant fraction of residential, commercial, and institutional water use. In North American cities, the estimated portion of residential water used for outdoor purposes ranges from 22-38% in cooler climates up to 59-67% in dry and hot environments, while turfgrass coverage within the United States spans 11.1-20.2 million hectares (Milesi et al. 2009). One national estimate uses satellite and aerial photography data to develop a relationship between impervious surface and lawn surface area, yielding a conservative estimate of 16.4 (± 3.6) million hectares of lawn surface area in the United States—an area three times larger than that devoted to any irrigated crop (Milesi et al. 2005). One approach that holds promise for cutting unnecessary outdoor water use is the increased deployment of “smart” irrigation controllers to increase the water efficiency of irrigation systems. This report describes the methodology and inputs employed in a mathematical model that quantifies the effects of the U.S. Environmental Protection Agency’s WaterSense labeling program for one such type of controller, weather-based irrigation controllers (WBIC). This model builds off that described in “Methodology for National Water Savings Model and Spreadsheet Tool–Outdoor Water Use” and uses a two-tiered approach to quantify outdoor water savings attributable to the WaterSense program for WBIC, as well as net present value (NPV) of that savings. While the first iteration of the model assessed national impacts using averaged national values, this version begins by evaluating impacts in three key large states that make up a sizable portion of the irrigation market: California, Florida, and Texas. These states are considered to be the principal market of “smart” irrigation controllers that may result in the bulk of national savings. Modeled water savings and net present value for these three states should be more accurate and representative than the averaged national values given state-specific inputs such as lot size, water price, and housing stock. To complete the picture of national impacts, the remaining WBIC shipments not assigned to these three states are assessed using the original methodology based on the averaged national values.