New CEE Gas Initiative Launched

After CEE conducted lengthy consultation among all the stakeholders, on January 18 the CEE Board of Directors approved a binational strategy to overcome barriers to more efficient gas water heating in the residential market. The new High Efficiency Residential Gas Water Heating Initiative provides efficiency specifications for both gas storage and tankless water heaters. The keystone of the consensus strategy is to introduce efficient storage water heating by promoting the .62 EF level. All major manufacturers and the vast majority of CEE gas efficiency program members agreed that it is critical to begin with this higher efficiency level, because it is readily available and currently cost effective for program promotion. Programs and manufacturers agreed that this technology could meet the challenge in the replacement market of educating not just the consumer, but also distributors and installers about a viable alternative to the lowest first cost, minimum efficiency water heater that currently dominates the market. As efficiency becomes valued throughout the supply chain, the CEE initiative provides higher efficiency tiers that will become the new standard bearers for high efficiency gas water heating.

Included in the Initiative is an educational campaign that CEE is currently organizing in partnership with the manufacturers. At a meeting CEE organized, this coalition urged U.S. DOE to align the proposed ENERGY STAR storage water heating level with the CEE level. Representatives of gas efficiency programs and manufacturers made their case to senior management of the ENERGY STAR program, and the coalition made a strong argument on the value of first establishing a presence for ENERGY STAR in this market at the initial CEE tier of .62 EF. We anticipate a favorable outcome to be announced shortly.

Initiative Requirements
The initiative requires that participants incorporate incentives for at least one tier in their programs and undertake awareness building to educate consumers and the distribution chain about the benefits of high efficiency. The storage water heater specification has three tiers that can be used to promote different levels of efficiency, and the specification for tankless water heaters has one tier level. The latter may be updated in the future as new high efficiency products enter the market. In addition, the initiative sets voluntary NO_x emission requirements for each of the water heating product categories.

Promoting the Initiative
Members are eager to move water heating forward. “NSTAR is excited and proud to support CEE’s high efficiency water heating initiative,” said Charlie Olsson of NSTAR Electric and Gas. “It is the first initiative of its kind that will address water heating on a binational level, and it will ultimately have a significant impact on the future of the water heating marketplace.” By adopting and promoting specifications for energy efficient residential gas water heaters, the initiative and its participants are increasing demand for this equipment, as well as encouraging manufacturers to expand production of high efficiency products.

“The CEE initiative will help stimulate the market for high efficiency water heaters by encouraging the manufacturing community, the supply chain, contractors, and consumers to understand the benefits of promoting energy efficiency. The initiative will boost the coordination of efforts among all the industry players to achieve a common goal of identifying immediate opportunities to maximize energy savings,” said Subid Wagley of Pacific Gas and Electric Co. The Gas Committee membership, ENERGY STAR, and our water heating industry partners are working hard to launch this new initiative successfully. According to Bruce Johnson of National Grid USA “The CEE Water Heating Initiative is a major milestone toward substantially increasing the efficiency of how we heat water. CEE members from across North America worked closely with the water heating industry to reach a consensus proposal. With the upcoming ENERGY STAR label for water heaters, CEE’s new specification, and the support of manufacturers, we now have a solid platform from which to improve water heating efficiency.”

Kara Rodgers and Joanne O’Donnell, CEE’s gas program team, have worked diligently with all our members and stakeholders to bring this new CEE Initiative to fruition. “Many people deserve credit for this achievement, and we look forward to rolling out the Initiative, knowing we are now all on the same page,” noted Rogers.

“Bringing all these parties together for the coordinated effort it is going to take to transform this market is something that could happen only at CEE. There have been lots of discussions over the past three years about achieving greater efficiency in gas water heating. Aligning efficiency programs across the United States and Canada, with manufacturers, and with ENERGY STAR, will be worth the time it took to get it right,” noted CEE Executive Director Marc Hoffman.

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