Description: To assist the federal government in meeting its energy reduction goals, President Clinton's Executive Order 12902 established the Procurement Challenge, which directed all federal agencies to purchase equipment within the top 25th percentile of efficiency. Under the direction of DOE's Federal Energy Management Program (FEMP), the Procurement Challenge's goal is to create efficiency recommendations for all energy-using products that could substantially impact the government's energy reduction goals, like commercial boilers. A typical 5,000,000 Btuh boiler, with a thermal efficiency of 83.2%, can have lifetime energy cost savings of $40,000 when compared to a boiler with a thermal efficiency of 78%. For the federal market, which makes up 2% of the boiler market, this means lifetime energy cost savings of over $25,600,000. To establish efficiency recommendations, FEMP uses standardized performance ratings for products sold in the marketplace. Currently, the boiler industry uses combustion efficiency and, sometimes, thermal efficiency performance measures when specifying a commercial boiler. For many years, the industry has used these efficiency measures interchangeably, causing confusion about boiler performance measurements, and making it difficult for FEMP to establish the top 25th percentile of efficiency. This paper will illustrate the method used to establish FEMP's recommendation for boilers. The method involved defining a correlation between thermal and combustion efficiency among boiler classifications; using the correlation to model a data set of all the boiler types available in the market; and identifying how the correlation affected the top 25th percentile analysis. The paper also will discuss the applicability of this method for evaluating other equipment for which there are limited data on performance ratings.
Date: August 1, 2000
Creator: Ware, Michelle J.
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