U. S. Department of Energy's Office of Building Technologies: Successful Initiatives of the 1990s

Howard Geller and Jennifer Thorne

January, 1999

Executive Summary

This study examines five case studies of recently commercialized technologies and initiatives advanced by the Office of Building Technologies (OBTS) of the U.S. Department of Energy during the 1990s. The technologies/initiatives selected for this study are considered to be among the most successful efforts of OBTS during the 1990s. The five technologies/initiatives are:

• spectrally selective low-emissivity (low-E) windows (solar control low-E products);

• compact fluorescent lamp (CFL)-based replacements for halogen torchieres;

• new housing designs and/or construction techniques (resulting from the Building America program);

• alternative refrigerants and insulation blowing agents; and

• building standards and guidelines.

Obviously these are not all discrete technologies. The Building America program emphasizes integration of technologies into energy-efficient, environmentally sound, high- quality, and affordable new housing. The building standards and guidelines program focuses on the adoption and implementation of state-of-the-art building codes at the state level, which leads to improvements in the energy efficiency of new residential and commercial buildings. This mix of discrete technologies, integrated technologies, and policy/technology deployment activities reflects the breadth of OBTS, an office concerned with all stages and aspects of improving energy efficiency in buildings—technology research & development (R&D), demonstration, testing and ratings, promotion and education, and regulation.

For each technology or initiative, this study addresses: (1) origin of the project; (2) the specific contribution made by DOE; (3) the partners that DOE worked with and their contribution; (4) the impacts that the technology or initiative have already had in the marketplace and the impacts that are expected in the future; and (5) the lessons learned from each project. Our conclusion summarizes these lessons and makes recommendations for future OBTS activities.

Spectrally Selective Glazings

DOE/OBTS contributed significantly to the development, demonstration, and promotion of low-E window coatings. The first generation of low-E coatings were designed primarily for colder parts of the country where heat loss dominates. DOE/OBTS continued to work with glass and window manufacturers on spectrally selective coatings for warmer parts of the country. Spectrally selective glazings, also know as solar control or "southern" low-E glazings, admit as much daylight as possible while blocking transmission of much of the ultraviolet and infrared "heat" radiation, thereby cutting down on solar heat gains in summer while still preventing loss of interior heat in the winter.

Working through Lawrence Berkeley National Laboratory (LBNL), DOE/OBTS carried out assessments showing that cooling costs due to windows were significant even in colder climates and that reducing solar gain in hotter climates could substantially cut energy costs. These studies helped convince major glass and window manufacturers to introduce solar control low-E glazings in the late 1980s and early 1990s. DOE's labs also tested spectrally selective glazings in both the laboratory and field to verify their energy performance.

DOE/OBTS also supported rating and labeling efforts so that the performance of spectrally selective glazings could be accurately conveyed to consumers, architects, and specifiers. This work involved establishing the solar heat gain coefficient (SHGC) parameter for windows and other fenestration products along with SHGC ratings and labeling through the National Fenestration Rating Council. In 1997, DOE expanded its promotion of spectrally selective glazings by funding the Efficient Windows Collaborative. Promoting solar control glazings in the sunbelt region is one priority of the Collaborative.

Today spectrally selective coatings and tinted glasses are manufactured by the major glass manufacturers as well as some films manufacturers. Spectrally selective windows are marketed and sold throughout the country. Andersen Windows, for example, converted its entire line of standard windows to spectrally selective coatings in 1991 through 1992, leading the industry in this direction. Spectrally selective coatings are now used in a significant fraction of new low-E windows and their overall use is growing.

The development of spectrally selective coatings and fenestration products was carried out by private companies following on the success of ordinary low-E coatings. DOE/OBTS made valuable contributions through:

• pointing out the technological opportunity and potential benefits;
• testing products in both the laboratory and field;
• developing analytical tools as well as testing and rating procedures; and
• demonstration, promotion, and education efforts.

Funding by DOE/OBTS for these efforts was relatively modest—about $4 million over ten years. But DOE's labs and contractors maintained a close working relationship with window and glazing manufacturers, leading to work that was both highly relevant to and well-received by the private sector.

CFL Torchieres

Halogen torchiere lamps of 300 to 500 watts produce crisp white light, are dimmable, and have low first cost—making them very attractive to consumers. As low-cost torchieres made in Asia entered the U.S. market, sales surged with around 40 million units now in use. However, halogen torchiere lamps are very energy inefficient and a fire hazard.

DOE, working through researchers at LBNL, studied these lamps and developed an energy-efficient, safe alternative using CFLs. Prototypes were built including a design that produced 50 percent more light than a 300 watt halogen torchiere with only 25 percent of the energy consumption. DOE/LBNL then worked with fixture manufacturers to develop designs that were relatively simple and easy to manufacture, using state-of-the-art components. DOE/LBNL also helped set up large-scale field tests of the new CFL torchieres at universities and a military base. These field tests confirmed the superior performance of the CFL torchieres and generated considerable publicity.

By the end of 1998, five manufacturers had introduced CFL-based torchiere products in a range of styles and price-levels. Sales are expected to grow to 200,000 units in 1998. If all of the estimated 40 million halogen torchieres currently in use were replaced with CFL models, annual energy savings would total approximately 9.4 TWh/yr ($750 million).

In this case, DOE/LBNL recognized a growing problem, developed a solution, and worked with manufacturers to make a viable product that could meet consumers' needs. DOE/LBNL also provided credible, independent monitoring and performance verification, demonstrated the improved technology, and publicized its availability and benefits. And the entire effort was carried out with only $300,000 from DOE (Johnson 1998).

New Housing Designs

DOE's Building America program brings together teams of architects, builders, contractors, and equipment manufacturers to apply a systems engineering or "whole building" approach to home design and construction. Goals of the program include: (1) 50 percent reduction in household energy use; (2) improvement of occupant comfort and health; (3) increased design flexibility, adaptability, and durability; (4) 50 percent reduction in waste at the construction site; and (5) 25 percent increase in the use of recycled and/or recyclable materials.

DOE/OBTS is supporting four Building America teams. DOE/OBTS provides cost- sharing funds to the consortia for staffing and project design, builder/contractor training, and monitoring activities. No DOE funds are used for construction costs, building materials, or equipment. The National Renewable Energy Laboratory (NREL) provides technical assistance during the design and construction phases and acts as an independent evaluator by monitoring home performance once construction is complete.

The Building Science Consortium (BSC) team includes some of the nation's largest home builders (e.g., Pulte Homes, Town & Country Homes). BSC is working in 12 states in all regions of the country with approximately 2,500 homes planned and more than 250 of these homes built as of September 1998. Innovations include new insulating techniques, locating all ductwork in a home's conditioned space, use of mechanical ventilation, and downsized heating and cooling systems. Initial monitoring results are showing 30 to 40 percent energy savings over the builders' standard practice with no net increase in first cost.

The Consortium for Advanced Residential Buildings (CARB) team includes large home builders such as Ryan Homes, Del Webb Corporation, and Beazer Homes. CARB prototype homes include factory-built framing, structural insulation panels, two-zone heating and cooling systems, use of waste and recycled materials in the foundation, and use of other environmentally preferable materials. Monitoring results so far are indicating 35 to 45 percent energy savings compared to standard practice. Ryan Homes has announced plans to offer one model nationwide.

The Integrated Building and Construction Solutions (IBACOS) team has built six prototype single-family homes with improved windows, reduced air infiltration, improved insulation, relocation of ducts into conditioned space, and downsizing of the heating and cooling system. The prototypes are yielding 15 to 45 percent energy savings, while the impact on first cost ranges from a net savings of more than $400 to an added cost of $150. Based on the success of the prototypes, team members are constructing at least 500 homes based on the IBACOS designs.

In contrast to the other teams, the Hickory Consortium is building multi-family housing including factory-built modular housing. In 1998, Hickory completed a 41-unit planned neighborhood with common gardens and communal office, cooking, dining, and exercise facilities in Cambridge, Massachusetts. A custom-designed air distribution system was developed to complement the project's ground-source heat pump. Tests conducted to date demonstrate 53 percent energy savings compared to the same complex built to state code.

The Building America program brings together top-notch designers and equipment suppliers with open-minded builders. By working cooperatively, each Building America team gains experience about what works in the "real world" and learns to design and construct innovative homes economically. DOE's cofunding for the consortia's design, training, and testing activities, but not construction, facilitates innovation while minimizing the cost to the federal government. Based in large part on the success of this program, the Clinton Administration launched a Partnership for Advanced Technology in Housing (PATH) initiative with the ambitious goal of replicating the Building America results in millions of homes.

Alternative Refrigerants & Insulation Blowing Agents

In the late 1980s and early 1990s, manufacturers of refrigeration equipment—refrigerators, freezers, air conditioners, and heat pumps—faced several challenges. First, the manufacture and use of chlorofluorocarbons (CFCs) would be phased-out as of December 31, 1995, under the Montreal Protocol on Ozone-Depleting Substances. Second, appliance standards mandated by the National Appliance Energy Conservation Act of 1987 (NAECA) would take effect in 1992 and 1993, requiring significant improvements in the energy efficiency of refrigeration products.

Working through Oak Ridge National Laboratory (ORNL), DOE/OBTS established cooperative research and development agreements (CRADAs) with the private sector to investigate and test alternative refrigerants, new insulation materials, new appliance designs, and other technological advances to help the appliance and air conditioner industries cope with these challenges. These R&D partnerships played a key role in enabling the private sector to meet the NAECA requirements without an energy penalty and allowed industry to phase out CFCs two years before the Montreal Protocol deadline. ORNL estimates that the nation's energy use would have increased 1 to 2 quads—representing additional annual energy expenditures of $13 to $26 billion—if alternatives to CFCs had not been developed successfully. The CRADAs helped the private sector and the nation achieve its regulatory goals at least cost and no loss of performance.

Refrigerators, freezers, air conditioners, and heat pumps currently manufactured contain CFC substitutes that are much less damaging to the ozone layer. At the same time, today's products are 20 to 50 percent more efficient on average than models sold a decade ago. The rapid development of CFC substitutes in the United States—earlier than these technologies were developed elsewhere—resulted in greater exports of U.S. air-conditioning and refrigeration products. Additional R&D also has led to new compounds that can substitute for hydrochlorofluorocarbons (HCFCs), which will be phased out in the coming years at least without an energy penalty and even possibly with a further improvement in energy efficiency.

This case study demonstrates that energy and environmental regulation can be a very effective stimulus for collaborative and results-oriented R&D between the public and private sectors. Appliance and chemical manufacturers were clearly motivated by two powerful drivers—the Montreal Protocol and appliance efficiency standards. DOE/ORNL had experience working with the industry, understood their needs, and responded in useful ways.

Building Standards and Guidelines

Energy efficiency codes and standards are an effective strategy for improving the efficiency of new buildings. DOE's Building Standards and Guidelines Program (BSGP) works with the building industry, state and local governments, public interest groups, and other parties to:

• improve model building energy codes and standards;
• encourage and help states upgrade and implement their building energy codes;
• promulgate energy codes for federal buildings and assist federal agencies in implementing them; and
• help the U.S. Department of Housing and Urban Development (HUD) implement some of the energy efficiency provisions of its residential loan and loan guarantee programs.

BSGP supports the Building Code Assistance Project (BCAP), a public interest group effort promoting the adoption and implementation of state-of-the-art building energy codes at the state level. BCAP has contributed to successful efforts to strengthen building energy codes in Louisiana, Massachusetts, South Carolina, and Vermont. BCAP has assisted with code implementation strategies in a number of states, and BCAP has helped to stop efforts to weaken or repeal current energy codes in Delaware, Iowa, Kansas, and Ohio.

BSGP, working mainly through Pacific Northwest National Laboratory (PNNL), has produced and widely disseminated a variety of products to simplify code use, ease the enforcement burden, and educate designers and builders on how to apply the code to their projects. The MECcheckTM software tool, which helps to simplify and improve code compliance, is used by around 35,000 designers, builders, and code officials, according to DOE. Also, BSGP has provided extensive energy code training using a variety of methods.

BSGP also provides grants to states to facilitate their adoption and implementation of improved energy codes. During 1995 through 1998, DOE provided grants worth over $11 million to 32 states. In addition, codes experts from the program have provided critical technical support to many states during code upgrade deliberations and for implementation activities.

Since 1992, state-of-the-art energy codes have been extended to cover an additional 39 percent of residential construction and 26 percent of commercial construction. This means about 350,000 additional housing units and over 50 million square feet of additional commercial floor space are being required to meet relatively stringent energy codes each year. PNNL estimates that consumers nationwide saved around $750 million in 1997—equivalent to about 1 percent of energy expenditures for space heating and cooling in all buildings—as a result of improved energy codes adopted since 1980.

BSGP demonstrates that DOE can play a valuable role in influencing state energy policy, the marketplace, and technology deployment. A collaborative approach has been critical to the success of BSGP. The program has worked closely with the building industry, national and regional code organizations, state agencies, and public interest groups. While these parties don't always see eye-to-eye in code upgrade deliberations, BSGP has been able to maintain good relations with and support all of these parties in ways that lead to increased energy savings.

Conclusions

Partnering between the national laboratories (and other technical experts) and the private sector is critical.

Partnering between technical experts (usually from national labs) and private companies was an important characteristic of all the case studies examined in this report. On the one hand, the labs (and other DOE contractors) have expertise and technical capability that the building industry lacks. On the other hand, private sector involvement is critical for moving innovations into the marketplace and ensuring that projects serve "real world" needs. This partnering also is valuable for setting and achieving ambitious yet realistic technical goals.

Modest efforts by DOE can make a difference if they are well-targeted, well-timed, seize opportunities, and address clear needs.

These case studies demonstrate that DOE can achieve a high degree of leveraging and impressive results with modest R&D, testing, or deployment support—if the conditions are right. Some of the projects, such as the CFL torchiere, spectrally selective glazings, and alternative refrigerants projects, cost the federal government relatively little money. The lesson is to address clear needs of the private sector and/or the marketplace with well-designed partnerships.

DOE/OBTS plays an important role in deployment of energy-efficient technologies, not just technology development.

Increasing energy efficiency and saving energy means changing behavior, not just changing technology. Education, training, and promotion are critical for getting innovative technologies accepted and widely and properly used. The private sector is seeking and benefitting from DOE's help in deployment, not just in R&D assistance, as evidenced by the selective glazings, CFL torchiere, and BSGP projects.

DOE/OBTS makes a valuable contribution through its testing, monitoring, and ratings activities.

The federal government can provide sophisticated and impartial testing and evaluation, while federal performance ratings have high credibility in the marketplace. The key role that DOE/OBTS plays in testing, monitoring, and ratings was demonstrated in the spectrally selective glazings, Building America, and CFL torchiere projects.

Regulations can lead to widespread energy efficiency improvements in the buildings sector, but supporting their implementation is critical.

Building energy codes and appliance efficiency standards are very effective policies for stimulating widespread efficiency improvements in buildings. However, it is important to support their implementation so that maximum energy savings benefits are obtained without compromising other objectives, and so that costs for manufacturers and consumers are minimized. Both the BSGP and alternative refrigerants projects demonstrate the contributions that DOE/OBTS make towards implementation of regulations.

Recommendations

The case studies presented in this report lead to a set of recommendations that could help guide future DOE/OBTS efforts.

1. Emphasize partnering between national laboratories (and other centers of technical expertise) and the private sector—don't just fund researchers or private companies. This partnering should extend to project and program planning, not just implementation.

2. Stay flexible and opportunistic—look for opportunities to address emerging problems and needs, involving key partners so that limited resources are well-spent and highly leveraged.

3. Continue to emphasize the full spectrum of activities including applied research, technology development, demonstration and testing, education and training, promotion, and regulatory support.

4. Look for opportunities to support the implementation of energy efficiency regulations so that these regulations provide maximum benefits at minimum cost.

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