Boiler Guideline - Southern California Gas

Guideline
Gas Boilers
Southern California Gas Company
New Buildings Institute
Advanced Design Guideline Series

November, 1998
Acknowledgments
This Advanced Design Guideline was developed by the New

Buildings Institute for the Southern California Gas Company,
contract P13311, part of SoCalGas Third Party Initiatives
Program for 1998. Project managers for SoCalGas included
Taimin Tang, Lilia Villarreal and James Green.
This project was managed by the New Buildings Institute,

Douglas Mahone, Executive Director.
Subcontractors on this project were:
Heschong Mahone Group:

Catherine Chappell, Project Manager,
Jon McHugh, Nehemiah Stone and Kalpana Kuttaiah
Eskinder Berhanu Associates
The Expert Advisory Panel, which reviewed and advised the

project, included: Gary Nowakowski, Gas Research Institute;
William Saulino, American Gas Cooling Center, Inc.; David
Goldstein, Natural Resources Defense Council; Tamy Ben-
Ezra; Peter Schwartz, LAS & Assoc.; Jeffrey Johnson, New
Buildings Institute

11626 Fair Oaks Blvd. #302
Fair Oaks CA 95628 (Sacramento area)
(916) 966-9916 Fax: (916) 962-0101
E-mail: info@newbuildings.org
Web: www.newbuildings.org
II SOCALGAS/NBI ADVANCED DESIGN GUIDELINES

Table of Contents
CHAPTER 1: PREFACE .................................................. 1

CHAPTER 2: DESCRIPTION ........................................... 3
A. Classifications ..................................................... 3
B. Heating Efficiency............................................... 4
C. Boiler Classes...................................................... 5
D. Improved Features and Designs .......................... 6
E. System Performance............................................ 7
CHAPTER 3: STATUS ..................................................... 9
A. Standards............................................................. 9
B. Condensing Boiler Manufacturers....................... 9
C. Market Share..................................................... 10
CHAPTER 4: ANALYSIS ............................................... 11
A. Overview........................................................... 11
B. Annual Energy Cost Savings............................. 11
C. Cost Effectiveness............................................. 12
CHAPTER 5: DESIGN ANALYSIS GRAPHS .................... 15
A. Using the Boiler Graphs.................................... 15
B. Annual Energy Cost Savings Graphs ................ 17
C. Cost Effectiveness............................................. 32
CHAPTER 6: BIBLIOGRAPHY ....................................... 51
CHAPTER 7: APPENDIX............................................... 53
A. Building Type Descriptions .............................. 53
B. Summary of Utility Rates.................................. 55
C. Scalar Ratio and SIR ......................................... 56
GAS BOILERS GUIDELINE III

List of Figures Figure 30 - Savings to Investment Ratio for Large
Office, 89% vs. 80% Efficient Boiler..........44
Figure 31 - Savings to Investment Ratio for Medium
Figure 1 - Efficiency of Different Boiler Types.............. 5 Office, 89% vs. 80% Efficient Boiler..........45
Figure 2 - Boiler Efficiency Ranges - Condensing Figure 32 - Savings to Investment Ratio for Hotel,
and Non-Condensing ................................... 6 89% vs. 80% Efficient Boiler .....................46
Figure 3 - Minimum Boiler Efficiency Requirements .... 9 Figure 33 - Savings to Investment Ratio for Large
Figure 4 - Market Share of Selected Technologies...... 10 Retail, 89% vs. 80% Efficient Boiler ..........47
Figure 5 - Building Type and Size ............................... 11 Figure 34 - Savings to Investment Ratio for Hospital,
Figure 6 - Cities used for Heating Analysis................. 12 89% vs. 80% Efficient Boiler .....................48
Figure 7 - Energy Cost Savings for Large Office, Figure 35 - Savings to Investment Ratio for School,
84% vs. 80% Efficient Boiler .................... 17 89% vs. 80% Efficient Boiler .....................49
Figure 8 - Energy Cost Savings for Medium Office, Figure 36 - Savings to Investment Ratio for Medical
84% vs. 80% Efficient Boiler ..................... 18 Clinic, 89% vs. 80% Efficient Boiler..........50
Figure 9 - Energy Cost Savings for Hotel, Figure 37 - Example Present Worth Calculation.........57
84% vs. 80% Efficient Boiler ..................... 19 Figure 38 - Range of Typical Scalars ..........................59
Figure 10 - Energy Cost Savings for Large Retail, Figure 39 - Variable Effects on Scalar ........................59
84% vs. 80% Efficient Boiler ..................... 20
Figure 11 - Energy Cost Savings for Hospital,
Figure 12 - Energy Cost Savings for School,
Figure 13 - Energy Cost Savings for Medical Clinic,
Figure 14 - Energy Cost Savings for Large Office,
Figure 15 - Energy Cost Savings for Medium Office,
Figure 16 - Energy Cost Savings for Hotel,
Figure 17 - Energy Cost Savings for Large Retail,
Figure 18 - Energy Cost Savings for Hospital,
Figure 19 - Energy Cost Savings for School,
Figure 20 - Energy Cost Savings for Medical Clinic,
Figure 21 - SIR for 84% vs. 80% Efficient Boiler ...... 32
Figure 22 - Savings to Investment Ratio for Large
Office, 84% vs. 80% Efficient Boiler ......... 34
Figure 23 - Savings to Investment Ratio for Medium
Office, 84% vs. 80% Efficient Boiler ......... 35
Figure 24 - Savings to Investment Ratio for Hotel,
Figure 25 - Savings to Investment Ratio for Large
Retail, 84% vs. 80% Efficient Boiler.......... 37
Figure 26 - Savings to Investment Ratio for Hospital,
Figure 27 - Savings to Investment Ratio for School,
Figure 28 - Savings to Investment Ratio for Medical
Clinic, 84% vs. 80% Efficient Boiler ......... 40
Figure 29 - SIR for 89% vs. 80% Efficient Boiler ....... 42
IV SOCALGAS/NBI ADVANCED DESIGN GUIDELINES

CHAPTER 1: PREFACE
These Guidelines have been developed by the New

Buildings Institute in cooperation with Southern
California Gas Company to assist program planners,
evaluators and designers make informed decision on the
cost-effectiveness of energy saving measures. This
Guideline deals specifically with gas boilers. These
Guidelines are intended to be a step toward a
comprehensive approach to design specifications.
This Design Guideline is based on careful evaluation
and analysis of high efficiency gas boilers to determine
when the measure is appropriate, how it is best
implemented, how cost effective it is, and how its energy
savings are described. These Guidelines describe
efficiency measures that are more advanced than
standard practice, yet still cost effective in all, or select
markets. Design Guidelines are used by individuals and
organizations interested in making buildings more
energy efficient. They provide the technical basis for
defining efficiency measures used in individual building
projects, in voluntary energy efficiency programs, and in
market transformation programs.
It should be remembered that this Guideline document
deals primarily with the comparison of a single
efficiency measure and its baseline. This means that the
analysis assumes that all other features of the building
are fixed. This is done primarily for clarity of the
analysis, and allows one to focus on the advantages and
economics of the single measure.
In reality, most new building design situations involve
multiple energy efficiency options. The cost
effectiveness of one measure is often influenced by other
measures. For example, increases in building envelope
insulation can often reduce HVAC loads enough to
reduce the sizing requirements for the heating and
cooling equipment. It is not uncommon for the cost
savings from smaller equipment to offset increased
insulation costs.
It is beyond the scope of this Guideline to attempt to
address the interactions between measures, especially
because these interactions can cover a huge range of
options depending on the climate, the local energy costs,
the building, and its systems. Nevertheless, the New
Buildings Institute recommends that building designers
give careful consideration to measure interactions and to
integrated systems design. This Guideline can provide
the starting point by providing insight into the
performance of one measure.
GAS BOILERS GUIDELINE 1

CHAPTER 2: DESCRIPTION
Pressure Vessel Code1. There are also many sub-

Boilers form the core of the heating system for many
classifications within these broader classifications
commercial buildings. Boilers account for more than
relating to distribution systems and temperature-control
40% of the heating energy in commercial buildings. The
methods.
primary purpose of a boiler is to transfer the heat of
combustion to the water or steam to be heated. Low-pressure boilers are designed for
maximum working pressures of 15 psig steam
There are two basic types of boilers: Fire-tube and
and up to 160 psig hot water. Hot water boilers
water-tube. Fire-tube units pass the hot products of
are limited to 250F operating temperature.
combustion (gases) through tubes submerged in the
boiler water. Water-tube units circulate the boiler water Medium- and high-pressure boilers are
through tubes that run through the combustion chamber designed to operate above 15 psig steam or
and the flue gases pass on the outside of the tubes. above 160 psig or 250F for water boilers.
Boilers are classified as hot water or steam systems. Water boilers are available in standard sizes
Water systems, also called hydronic systems, are from 50 to over 100,000 kBtuh and are
typically used when the building is also served by a typically in the low-pressure class.
chiller. Steam systems are advantageous in facilities
Steam boilers are available in standard sizes up
where:
to and above 100,000 lb. steam/hr (60 to over
heat is used for comfort heating and process 100,000 kBtuh).
loads,
Boilers are also rated by their input fuel consumption, or
heating load varies; in terms of horsepower, where 1 boiler hp = 33,520
the heating medium must travel great horizontal Btuh.
or vertical distances, and
as a heat source for absorption cooling systems. Fuels
Boilers are also classified as condensing and non- Boilers are designed for several different fuels
condensing. Condensing boilers condense the flue gas including, various types of fuel gas, various grades of
water vapor, extracting useful heat and improving the fuel oil, diesel, coal, and electricity. A boiler is typically
boiler efficiency. Various codes and standards define designed for only one fuel type and cannot burn other
allowable efficiencies, in terms of heat transfer rates, as fuels. Some boiler designs can be adapted to burn gas,
described in Section B. Standard non-condensing gas oil or coal. Other designs allow for burner conversion
boilers have combustion efficiencies that range from and dual-fuel burners to accommodate gas and oil. For
80% to 86%. High-efficiency condensing gas boilers larger boilers, particularly in industrial applications, it is
have combustion efficiencies from 88% to over 95%. common for boilers to burn both gas and diesel. This
Further classifications are described in the following Guideline deals specifically with natural gas-fired
section. boilers.
A. Classifications Construction Materials

Boilers are grouped into classes based on working Most non-condensing boilers are made of cast iron or
pressure and temperature, fuel used, and construction steel. Smaller boilers may also be made of copper.
material. Cast-iron boilers range in size from 35 to
10,000 kBtuh gross output. They are
constructed of individually cast sections. The
Working Pressure and Temperature sections are then assembled into blocks. The
Every steam or water boiler is rated at the maximum
working pressure determined by the ASME Boiler and
1
Section IV Rules for Construction of Heating Boilers (low-
pressure boilers) and Section I Rules for Construction of
Power Boilers (medium and high pressure boilers).

number of sections assembled determines the ignition, a spark lights an intermittent pilot light, which
boiler size. Cast-iron boilers may be fire-tube in turn lights the gas burner.
or water-tube.
Exterior surface losses are the losses of heat via
Steel boiler sizes are 50 kBtuh and larger. They radiation and convection from the surface of the boiler.
are made as one assembly for a given size. These losses are usually less than 2% for boilers.
Steel boilers may be fire-tube or water-tube.
Interior surface losses are the largest heat loss
Copper boilers are usually water-tube and use mechanism for natural draft gas boilers. When the boiler
natural gas as the fuel type. is cycling on and off, there is air movement over the
heat transfer surfaces even when the boiler is off. Air
Condensing boilers must be fabricated using special
movement is induced by a combination of stack and
stainless steel materials to resist the corrosive effects of
wind velocity effects. These losses can be reduced by
the condensate, which forms at the lower return
using a stack damper. Interior surface losses on forced
temperatures. Alternatively, the condensing portion of
draft boilers result from the purge cycle - emptying
the boiler may use thicker materials, which will take
the combustion chamber of gases before initiating firing.
longer to corrode, and therefore provide the same life-
span as non-condensing boilers. Since natural gas Cycling Losses occur during periods of non-uniform
contains a small fraction of sulfur, the condensate is a operation. When a boiler is first cycled on, the interior
dilute mixture of water and sulfuric acid, which is surfaces of the boiler are cooler and steady-state
corrosive. combustion conditions are not developed. Some of the
fuel will not be completely burned under these non-
equilibrium conditions, temporarily resulting in lower
B. Heating Efficiency combustion efficiency.
The overall efficiency of the boiler is defined as the Heat transfer from the hot combustion gases to the
gross output energy divided by the input energy. The cooler heat exchange surface results from radiation and
overall efficiency is affected by four basic factors: convection. Convection can be enhanced by increasing
Combustion efficiency turbulence via the shape of combustion gas passages or
the addition of inserts such as turbulators. Heat transfer
Standby losses can also be increased by increasing the size of the heat
Cycling losses exchange surface through the use of additional fins on
the gas side of the heat exchanger.
Heat transfer
Another measure of efficiency is:
Combustion Efficiency, or Thermal Efficiency, is
output energy minus stack loss energy, divided by input Seasonal Efficiency, which is the actual operating
energy, and ranges from 80% to 86% for most non- efficiency that the boiler will achieve over an entire
condensing boilers. Condensing boilers operate in the heating season, during which it experiences a variety of
range of 88% to 97% efficiency. loading and temperature conditions.
The combustion efficiency describes how well the boiler

is able to burn the fuel and transfer this heat to either
water or air. Testing and rating specifications vary by
fuel type, size and jacket construction.
Standby Losses can include the following:
Standing pilot
Exterior surface losses
Interior surface losses
A standing or constantly burning pilot flame consumes
energy all of the time, even when no heat is required
from the boiler. This form of heat loss is being
eliminated by the widespread replacement of standing
pilots with electronic ignition. With an electronic
4 SOCALGAS/NBI ADVANCED DESIGN GUIDELINES

More efficient than conventional boilers,

C. Boiler Classes Up to 20% reduction in fuel costs,
The combustion efficiency of boilers can be Production of less CO2, sulfur and nitrogen
predominately attributed to four major design classes, as oxide.
given in Figure 1. Condensing boilers differ from conventional boilers in
that they recover waste heat from their exhaust gases
that would otherwise be lost to the atmosphere. This is
Boiler Type Combustion
achieved through the use of an enlarged heat exchanger
Efficiency
surface which extracts sensible heat and, under certain
Standard natural draft 80% conditions, extracts the latent heat from the water vapor
Standard forced draft 82% which is generated during combustion. In the process of
capturing heat from moisture in the flue gases,
Extended heat transfer surface 83% - 85% condensing boilers significantly increase efficiency
Condensing or stack heat 88%+ compared to non-condensing boilers. In non-condensing
recovery boilers, the flue gasses leave the system hotter, so the
moisture remains in a vapor state, and more thermal
Figure 1 - Efficiency of Different Boiler Types energy is carried away.
The principal component of natural gas is methane
(CH4). The difference between Methanes Higher
Standard Natural Draft Boiler Heating Value (Gross Caloric Value) of 23,875 Btu/lb
Standard natural draft boilers rely on buoyancy forces to which include and the Lower Heating Value (Net
induce air into the combustion chamber and combustion Caloric Value) of 21,495*1 is, approximately 2,380
gases out of the flue. Natural draft boilers are fairly Btu/lb. Approximately (10%) of the energy content of
simple with few moving parts and thus easy to maintain. methane is used in the latent heat of vaporization. This
These boilers typically have only on/off controls. latent heat content is not released unless the combustion
Typically natural draft boilers have flue diverters or gas is then condensed. Thus, condensing boilers are
barometric dampers to maintain the correct pressure approximately 10% more efficient than an efficient non-
drop across the boiler and to prevent down-drafting condensing boiler.
which will reduce efficiency and spill carbon Standard boilers are designed to operate without
monoxide gas from incomplete combustion into the condensing flue gases in the boiler. This design is
boiler room. necessary to prevent corrosion of cast-iron or steel parts.
The efficiency of natural draft boilers can be improved Standard non-condensing natural gas hot-water boilers
by replacing the standing pilot with an electronic are often operated at 140F minimum return water
ignition and installing a draft damper. The draft damper temperature to prevent rusting. Condensing boilers
closes the flue when the boiler is not firing. operate at inlet water temperatures below 140F. Figure
2 shows the operating conditions for condensing and
non-condensing boilers.
Forced Draft Boiler
Forced draft boilers use a fan to push the combustion air
into the combustion chamber, instead of relying on the
outside temperature and wind velocity.
Efficiency of standard forced draft boilers can be
increased by adding extra passes to the combustion heat
exchanger. The number of passes and increased
efficiency are limited by the amount of heat that can be
extracted. It is critical not to remove so much heat as to
condense the flue gases.
Condensing Boiler
Condensing boilers have the following advantages: 1
1997 ASHRAE FUNDAMENTALS Handbook.

The cooling and momentum of the combustion gases

creates suction in the combustion chamber which draws
in a fresh charge of air and gas. Because of the resonant
100 design of the combustion chamber and the exit pipe,
when the pressure wave reaches the end of the exit pipe
98
it is partially reflected back toward the combustion
96 chamber where the new charge of air and gas is ignited
by residual heat.
BOILER EFFICIENCY
94
NON-CONDENSING
92 BOILER The turbulent flow in pulse boilers produces high heat
transfer rates as compared to boilers that have a
90 smoother or laminar air flow which creates an
%
88
DEW POINT insulating air layer (boundary layer) between the hot
CONDENSING combustion gas and the heat exchanger surface.
86 BOILER
84
10% EXCESS AIR
82
80
40 80 120 160 200 240
INLET WATER TEMPERATURE

degrees F
(1996 ASHRAE Systems & Equipment Handbook,
Ch 27, Boiler Efficiency graph (Figure 5))
Figure 2 - Boiler Efficiency Ranges - Condensing and

Non-Condensing
Pulse Combustion Boiler D. Improved Features and Designs

One form of condensing boiler is the pulse There are several recent developments in gas boiler
combustion boiler. Pulse combustors have the features and design that have improved efficiency.
following advantages:
Reduces energy costs by operating at high
efficiency with low standby losses, Motorized Flue Dampers
Low nitrogen oxide emissions, Boilers that require a natural draft exhaust vent
commonly draw room air up the chimney, both when the
Eliminates the need for fans, blowers and boiler is firing and when it is idle. Air velocity up the
conventional flues. chimney, which is a combination of stack effects and
The combustion process for a pulse combustion boiler is wind effects can be substantial. Motorized flue dampers
unlike all the other types of boilers. During firing, the close the flue pipe outlet when the boiler is idle to
combustion is not a continuous equilibrium reaction but prevent heat loss from the boiler heat transfer surfaces.
burns discrete charges of gas/air mixtures in rapid The boiler controls open the flue damper when the main
succession, similar to the firing process in an automobile burners are operational.
engine.
A combustion fan, used only for initial charge, draws in Fan-Assisted Combustion
both air and gas, which mix and are then ignited by a Many boilers now incorporate fan-assisted combustion
spark. The combustion of the fuel air mixture creates into their design to improve efficiency. Fan-assisted
pressure waves at sonic velocity which drives the flow boilers do not require a large natural draft chimney, and
of combustion gases out of the combustion chamber, and can be vented through a smaller flue pipe directly
across the heat transfer surfaces to the end of the exit through a wall. The fan provides a more consistent air-
pipe. to-fuel ratio, which is less impacted by outside
atmospheric conditions. This results in improved

combustion gas flow through the heat exchanger, which On/Off Control - for non-critical applications.
improves the heat transfer efficiency inside the boiler.
Staged or Sequenced - provides matching of
heat delivered to load requirements in discrete
Sealed Combustion steps.
Sealed combustion boilers draw combustion air directly Modulating - infinite matching of heat
from outside through a venting system that is sealed so delivered to load requirements.
that the indoor air cannot mix with the outside air. Reset-type controls - delivered water
Sealed combustion is a way to prevent boilers from temperature is varied to provide hotter water
inducing infiltration into a building and to more when the outdoor temperature is low.
carefully control the combustion process. This approach
eliminates the need for natural draft chimneys and Combustion air control is needed on multi-stage or
allows the use of sheet metal or plastic exhaust pipe modulating boilers so the appropriate amount of air is
directly through the wall in many cases. available at the different firing ranges. Combustion air
control can take the following forms:

Flue Gas Recirculation Combustion air dampers that are physically
connected by a linkage to the gas valve.
New burner technology such as Flue Gas Recirculation
Dampers controlled via trim controllers that
(FGR) is now available for fire-tube boilers. This design
reduces emission levels of NOx by recirculating a adjust in response to a measured O2 level in the
portion of the relatively cool stack gases back into the exhaust gases.
furnace to reduce the temperature of combustion Variable frequency drives on the combustion
products. air blower can be controlled by either gas valve
position or trim control.
E. System Performance
Diagnostic Points
System performance is greatly affected by equipment
maintenance. Improperly maintained boilers have Various diagnostic points need to be designed into the
efficiencies substantially lower than well-maintained system. Meters and gauges should be installed
boilers. This section presents control and maintenance throughout the system to diagnose key elements and
issues that should be considered during both the design operating characteristics.
and operation of the system to ensure that the expected
Space heating-only boilers should have a feed-water
boiler efficiency is maintained.
meter and a log posted by the meter. Excessive feed-
water usage indicates leakage in the system. In addition
Controls to the obvious problems of system leakage, excess feed
water changes the system water chemistry.
The following boiler controls are typically included in a
heating system design to maintain the equipments Supply and return temperature wells, which house
design efficiency: thermostats, and main system flow measurement ports
should be included. All piping should be clearly labeled.
Gas pressure regulators maintain proper A stack temperature gauge should be used to measure
pressure in the manifold regardless of gas stack temperature, with lines drawn on the face of the
supply pressure fluctuation. gauge to indicate acceptable temperature ranges.
Automatic gas valves turn gas on and off in Temperatures above this range indicate the need for tube
response to operational and safety controls. cleaning.
Ignition safety controls ignite the main burner These diagnostic points can also be applied to an energy
and shut off the gas flow to the main burner if management system and alarms can be set to indicate
there is no source of ignition. the need for corrective actions.
Limit controls prevent outlet water temperature Well-documented maintenance manuals should also be
from exceeding a specified level, typically a utilized. These manuals describe how the system is
maximum of 240F for low pressure boilers. supposed to work, what temperatures and flows are
expected throughout the system, and a planned
Other operating controls include: maintenance schedule.

Air - Fuel Mixing Other Boiler Room Issues

Complete mixing of the appropriate amounts of air and Condensing boilers must be vented with a corrosion
fuel results in the highest combustion efficiency. The resistant stack. Because a large amount of heat has been
stoichiometric, or ideal, combustion of natural gas removed from the combustion gases, in some cases the
requires 9.6 times as much air by volume. stack can be plastic pipe. Other stack materials are
stainless steel vent pipe or pipe with a corrosion
If not enough air is available, the fuel is not completely
resistant lining.
burned, less heat is released, more soot forms and the
exhaust gases contain excessive amounts of carbon Pulse combustors typically operate at 30 to 100 cycles
monoxide (CO). If there is excess air, the heat released per second. Measures typically need to be taken to
by combustion is diluted by the air volume resulting in a isolate the building from the boiler and flue vibrations.
lower air temperature. The higher volume of
combustion gases results in a shorter residence time in
the heat exchanger. This shorter residence time
combined with the lower temperature reduces heat
transfer.
Incomplete mixing of the fuel and air can result in a
situation of simultaneously incomplete combustion and
excess air. Incomplete mixing indicates misapplied
burners or a burner that is in need of replacement or
repair.
A combustion gas analyzer, should be used to measure
both oxygen and carbon monoxide. Measurement of
both combustion gas constituents indicates completeness
of air/fuel mixing.
Surface Fouling
Fouling of the heat transfer surfaces acts like an
insulator to prevent heat exchange. Excessively rich
(starved for air) air/fuel mixtures will result in sooting
on the combustion air side of the heat exchange
surfaces. In this situation, the air fuel ratio should be
corrected and the combustion side of the heat exchange
surfaces mechanically cleaned.
Water side scaling of heat exchanger in boilers is
typically corrected through chemical or mechanical
cleaning. Placing a feed water meter on space heating
only systems is recommended to identify excessive
leaking and the water treatment repercussions.
Condensate Disposal
The amount of condensation that will take place for a
given boiler is dependent upon the entering feed-water
temperature. More condensate will form when the
entering water temperature is low, such as during start-
up. Heating systems with fairly high return water
temperatures (above 130F), may have little
condensation during normal operation.
Condensate must be drained and, depending upon the
municipality, treated before sent to the sewage system.

CHAPTER 3: STATUS
A. Standards Equipment Minimum

Efficiency
Because there are many ways to characterize the
efficiency of boilers, and many techniques for measuring Small steam boilers 75% AFUE
the components of efficiency, it has become necessary to (<300 kBtuh)
establish consistent, published measurements. There are Small water boilers 80% AFUE
various rating and testing procedures for boilers, and (<300 kBtuh)
resulting standards, which are generally based on size
Large boilers 80% thermal
and type.
Figure 3 - Minimum Boiler Efficiency Requirements
Efficiency Rating Procedures B. Condensing Boiler
The National Energy Policy Act of 1992 mandates that Manufacturers
all boiler manufacturers must meet the requirements of
ASHRAE Std. 90.1. All commercial and industrial This section provides information on several
boilers over 300 kBtu/h must be certified for manufacturers of condensing boilers.
combustion efficiency as measured by one of the
following: AERCO Benchmark
ANSI Z21.13-87
AERCO Benchmark has a line of copper fin equipment
UL 793-73 with input capacities up to 2,000 kBtuh.
ASME PTC 4.1-64
IBR Std. 86 The Fulton Companies
In 1978, DOE issued a test procedure applying to all The Fulton Companies has lines of pulse combustion
gas- and oil-fired boilers up to 300 kBtu/h input to hydronic and steam boilers. The input capacities of the
determine an annual fuel utilization efficiency (AFUE). hydronic boilers range from 300 to 1 million Btuh (8-26
The DOE test procedure determines both on-cycle and bhp), with efficiencies up to 96%.
off-cycle losses based on a laboratory test involving
cyclic conditions. The test results are applied to a
computer program, which estimates the equipment
Hydrotherm
operation over a typical years range of loads. The The Hydrotherm Multi-pulse AM pulse combustion
AFUE value represents the part-load efficiency at the series ranges from 100 to 300 kBtuh input capacities.
average outdoor temperature and load of a boiler
installed in the United States. This value is useful for
comparing different boilers, but is not meant to Lochinvar
represent actual efficiency. The Lochinvar Power Fin copper finned model ranges
from 250 to 1,000 kBtuh.
Minimum Efficiency Requirements
Different minimum efficiencies are required for different Raypak
boiler types and sizes. Small boilers are rated according Raypaks ADB Advanced Design Boiler has a 97%
to AFUE, while large units are rated by thermal thermal efficiency. There are five models ranging in size
efficiency. The table in Figure 3 summarizes the from 500 to 1,500 kBtuh inputs with direct vent and
efficiency requirements. sealed combustion.

CHAPTER 3: STATUS
Thermal Solutions
Thermal Solutions has 88% boilers ranging in size from
250 kBtu to 2.5 MMBtuh
Trianco-Heatmaker, Inc.
Trianco-Heatmakers Heatmaker 9600 condensing
boiler series has an input range of 150 to 250 kBtuh (2-
19 bhp), with AFUEs from 88.1% to 88.7%.
C. Market Share
Our best source of market share data comes from a 1994
study for a major Midwestern utility that collected
baseline data on efficient commercial and industrial gas
technologies. The market share for near-condensing and
condensing equipment are quite low for all commercial
HVAC equipment. Condensing and near-condensing
boilers make up between 0.5% and 6% of the market,
depending on the size of the equipment. As shown in
Figure 4, the larger the units, the smaller the market
share.
Boiler Size Combustion Market

(kBtuh) Efficiency Share
300 < 1,000 >85% 6.0-6.3%
1,000 < 2,000 >85% 2.3-2.5%
>2,000 >85% 0.6%
Source: Hewett, et al, 1996 ACEE Summer Study
Figure 4 - Market Share of Selected Technologies

CHAPTER 4: ANALYSIS
A. Overview B. Annual Energy Cost Savings

Two high thermal efficiency levels were compared to a The high efficiency boiler measure was analyzed for the
base efficiency of 80%: 84% and 89%. The 84% seven (7) building types shown in Figure 5.
efficiency represents a standard upgrade, non-
condensing furnace. The 89% efficiency represents a
condensing boiler. Efficiency ratings for condensing Bldg. Type Size Capacity
boilers range from 87% to 95%. The 89% efficiency (Sq Ft) (MBH)
rating was selected as a conservative basis for estimating Large Office 160,000 3,459 5,436
savings.
Medium Office 49,000 414 - 892
This analysis is structured to provide typical values
Hotel 315,000 3,582 - 8,860
that can be used as a screening tool during schematic
design of a building or as guidance on equipment Hospital 272,000 4,442 5,453
efficiency issues to voluntary energy efficiency Medical Clinic 49,000 514 1,241
programs and market transformation programs. The
results of a detailed energy and rates analysis, for seven Large Retail 164,000 622 3,555
building types in ten cities, have been distilled down to a School 50,000 803 3,454
series of graphs.
Figure 5 - Building Type and Size
The selected cities and buildings are representative of
the range of climates and building occupancies where For each building type annual heating loads were
hot water boilers would be used. The economic analysis calculated from a detailed energy simulation using
is of course dependent upon gas rates. The results are DOE-2.1E. The models provide comprehensive data on
graphed for a range of gas rates. Building descriptions energy use and savings. The building models were
and city specific utility rates are provided in the modified for each location to be compliant with the
Appendix. applicable building energy code.
Both energy savings and cost-effectiveness were The cities were selected for varying HDD (heating
calculated. The energy savings metric is presented in degree days) as shown in Figure 6. The graphs in the
two ways: following chapter present the energy savings for each of
Annual energy cost savings ($/yr) these cities for a range of marginal gas prices. The graph
legend corresponds to the abbreviations for each of the
Normalized energy cost savings ($/yr per MBH cities, as shown in the table.
capacity)
The normalized graphs, in the following chapter, allow
the user to expand these results to different size
equipment.
The cost-effectiveness metric is the Savings to
Investment Ratio (SIR), which is the Life Cycle Cost
(LCC) savings divided by the incremental measure cost.
The measure is assumed to be cost-effective if the SIR is
greater than 1.0.

CHAPTER 4: ANALYSIS
C. Cost Effectiveness
City HDD65 Cost effectiveness is based on the calculation of the
Miami (Mia) 200 Savings to Investment Ratio (SIR), which is defined as
the Life Cycle Cost (LCC) savings, in dollars, divided
San Diego (SD) 1256 by the incremental measure cost per unit capacity, in
Phoenix (Phnx) 1350 dollars per MBH capacity, as shown in the following
equation:
Los Angeles (LA) 1458
Riverside (River) 1861 LCC Savings
SIR =
Fort Worth (FW) 2304 Incremental Cost
Atlanta (Atl) 2991 The SIR uses an investment model over the life of the
San Francisco (SF) 3016 equipment rather than the simplistic and short range
perspective of simple payback.
Washington D.C. (DC) 4707
The LCC savings describe the present worth of the
Chicago (Chic) 6536
energy cost savings over the life of the investment. If the
Figure 6 - Cities used for Heating Analysis LCC savings are greater than the incremental cost, then
the SIR will be greater than one and the measure is
The graphs present the annual energy cost savings per assumed to be cost effective.
unit capacity, dollars per year per MBH capacity, versus Savings to Investment Ratios (SIRs) indicate the cost
the marginal cost of gas, in dollars per therm. The effectiveness of the equipment selection depending upon
marginal gas cost, which provides the incremental several factors including:
energy cost, is calculated as energy cost savings, in
dollars, divided by energy savings in therms. The building type,
marginal cost accounts for varying gas rates that may equipment,
apply based on total usage.
climate,
To make best use of these graphs it is important to
understand what was not included in the analysis as well utility rate, and
as what was. The maintenance issues discussed in scalar ratio.
Chapter 2 can significantly affect the efficiency of gas
boilers. However, there are too many variables and the The scalar ratio is a single term that combines discount
additional complication would not have increased the rate, period of analysis, and fuel escalation rate. A
clarity or accuracy of the analysis. Indeed, many of the scalar ratio is a mathematical simplification of life cycle
economic effects of maintenance contingencies are costing (LCC) analysis. The first year savings are
evident across equipment types. multiplied by the scalar to arrive at the life cycle
savings. In technical terms, the scalar ratio represents
Economic savings can also be realized when more the series present worth multiplier. A more detailed
efficient equipment allows downsizing of other description of the scalar ratio is provided in the
equipment in the building, such as supply pipe size and Appendix.
meter. In some cases, these savings could be significant
enough to offset the incremental cost of the more Different scalars have been used to evaluate the cost-
efficient equipment, resulting in a lower overall first effectiveness based on different economic assumptions.
cost. To be conservative, in the development of these Typical values of the scalar are in the 8 to 16 range.
Guidelines, we ignored such potential related savings. This approach has the virtue that different life cycle
costing criteria, and different scalars may be applied to
Another basic assumption in this analysis is that the the results.
decision about cost effectiveness of options being
compared is being made at the time of new construction. The graphs present the annual energy cost savings per
In a retrofit application, existing supply, venting or unit capacity, dollars per year per MBH capacity, versus
distribution equipment can significantly shift the the marginal cost of gas, in dollars per therm. The
incremental cost of, for example, condensing boilers marginal gas cost, which provides the incremental
versus standard efficiency boilers. energy cost, is calculated as energy cost savings, in
dollars, divided by energy savings in therms. The

CHAPTER 4: ANALYSIS
marginal cost accounts for varying gas rates that may

apply based on total usage.

CHAPTER 5: DESIGN ANALYSIS GRAPHS
The cases shown on this graph can also be used to

A. Using the Boiler Graphs estimate savings for other cities with comparable
climates. For example, the Chicago line would also be
The following pages contain families of graphs that reasonably representative of Milwaukee or Detroit or
describe the performance of high efficiency boilers in a Omaha. The gas costs in these other locations may be
variety of cities and building types. As described in different than Chicago, but by entering the graph at the
Chapter 4, these graphs were developed from DOE-2.1E x-axis value that represents the costs in the other
runs done for representative prototype buildings using location, an estimate of the savings can be obtained.
the actual utility rate structures currently published for
each of the cities. The graphs can save the reader a
great deal of analysis work, and can provide good Normalized Energy Cost Graphs
information about when and where high efficiency The bottom graph in Figure 14 is typical of the
boilers can be cost effective. normalized energy cost graphs. Unlike the annual
Each of the lines on the graphs represents the energy energy savings cost graphs, which are specific to the
savings potential of the prototype building in one of the boiler sizes of the prototype buildings in each city, these
ten cities studied. Markers on each line indicate the have been normalized to show annual dollar savings per
current local gas rate for each of the cities selected. By unit of boiler capacity, in thousands of Btus per hour
following the line on the graph the results can be (MBH). This makes them a bit more abstract, but also
extrapolated to different gas rates. makes them more universal. These graphs can be used to
estimate the boiler savings for different size boilers and
buildings for different building types.
Annual Energy Cost Savings Graphs
For example, an 89% efficiency boiler in Los Angeles,
The top graph in Figure 14 is typical of the annual with a marginal gas cost of about $0.41 per therm,
energy cost savings graphs. This particular one is for would save about $0.40 per year per MBH of capacity.
the large office building prototype, and it shows the A large office building with a 10,000 MBH boiler would
comparison between a base case boiler of 80% save about $0.40 x 10,000 = $4,000 per year in energy
efficiency versus a condensing boiler of 89% efficiency. costs compared to an 80% efficiency boiler. A building
The horizontal x-axis of this graph is the marginal cost in a climate similar to Los Angeles, but with a marginal
of gas, in dollars per therm. Marginal cost is the rate cost of $0.60 per therm, would save about $0.60/yr per
charged, under the local utility rate structure, for those MBH capacity. For a 10,000 MBH boiler, his would
therms that are saved by the higher efficiency boiler, so translate to $0.60 x 10,000 = $6,000 per year in cost
it does not include the utility basic service charges or savings. For a much larger boiler, 25,000 MBH, the
other charges that are common to both scenarios. savings would be $0.60 x 25,000 = $15,000 per year.
The vertical y-axis shows the annual energy cost The city lines higher up on the graph indicate locations
savings, in dollars per year, between the 80% base of higher boiler loads and hence higher savings
efficiency case and the 89% efficient condensing boiler. potential. Because of the upward slope of the lines,
savings increase as the marginal cost increases. As with
For example, Los Angeles is represented by a hollow the previous set of graphs, the markers on each line
circle marker. In this example, the prototype large show the actual marginal cost and savings for the cities.
office building in Los Angeles has a marginal gas cost of
approximately $0.41 per therm, and a high efficiency
condensing boiler would save approximately Cost Effectiveness Graphs
$1,700/year compared to a base efficiency boiler. This section presents the cost effectiveness, or SIR,
The slope of the line represents the rate of change in graphs developed for various gas rates and locations.
annual energy cost savings for each increment or The graph in Figure 22 is typical of the savings-to-
decrement in the marginal cost of gas. In the Los investment ratio (SIR) graphs. These graphs describe
Angeles example, if gas were to increase to $0.60 per the cost effectiveness of high efficiency boilers on a life
therm, the cost savings would increase to approximately cycle costing basis.
$2,600 per year.

The SIR is used as the figure of merit for cost denominator of the SIR values plotted on these graphs.
effectiveness, as described in Chapter 4. It is the ratio If the incremental cost for a particular installation was
of the life cycle cost (LCC) savings to the incremental instead $5/MBH, then the SIR value from the graph
first cost of a high efficiency boiler, as shown in the would be adjusted to reflect the new cost. In our
following equation: example, an SIR value of 0.98 from the graph would be
multiplied by 3.25/5 to arrive at an adjusted SIR of 0.64
LCC Savings
SIR = and the condensing boiler would not be cost effective.
Incremental Cost If, instead, the incremental cost was $2/MBH, the
adjustment factor would be 3.25/2, for an adjusted SIR
If the LCC savings is greater than the incremental cost, of 1.59. For this measure, the adjustment factor will
then the SIR will be greater than one and the investment always have a numerator of 3.25 and a denominator of
is a sound one. Thus, any point on the graph that is the new incremental equipment cost, in dollars per MBH
above the 1.00 line on the vertical axis is a good capacity, as shown in the following equation:
investment.
Cost graph
Calculating the LCC savings can seem complicated to SIR Actual = SIR graph
anybody unfamiliar with present worth analysis Cost Actual
principles. It involves several variables, including the
lifetime of the investment, the rate of increase in energy The following pages contain the full set of graphs
costs, and the rate of economic inflation. These factors describing high efficiency boilers and their applicability
have been combined into a single numeric parameter in different building types and cities, with different
called the scalar ratio, or scalar, as described in energy and equipment costs, and different economic
Chapter 4. criteria.
For each of the SIR graphs, particular scalar and

incremental equipment values are used. The 84%
efficiency option for a medium office, shown in Figure
23, has an incremental equipment cost of $3.25/MBH.
Three scalar graphs are presented, for scalars of 8, 12,
and 16.
Each graph enables one to quickly determine the cities
where the high efficiency boiler is currently cost
effective. If the marker for the city is above the 1.00
SIR line, its cost effective. If the marker is not quite
over the 1.00 line, then one can see how much of an
increase in marginal gas cost would be needed to bring it
over the line. As shown in the bottom graph of Figure
23, the SIR for an 84% efficient boiler in an LA medium
office building for a scalar of 16 is just under 1.00 (refer
to Figure 21 for exact value).
As with the previous energy savings graphs, one can
apply these graphs to other cities by selecting one of the
ten cities whose climate conditions are most similar and
moving to the point on that line which corresponds to
the gas costs in the other city. For example, if one was
examining the same boiler installation (84% in a
medium office, scalar = 16) in a city whose climate was
similar to Los Angeles, but which had a marginal gas
cost of $0.60 per therm, it would have an SIR of
approximately 1.40, which is cost effective.
These graphs can be adjusted for different incremental
equipment costs. For example, the graphs for
condensing boilers in Figure 23 are based on an
incremental cost of $3.25/MBH. This value is the

B. Annual Energy Cost Savings

Graphs
84% Efficient Boilers

The following charts show the savings associated with
the 84% efficient boiler compared to a standard 80%
efficient boiler, by building type.
Energy Cost Savings for Large Office, 84% vs 80% Eff. Boiler
$3,500
$3,000
Annual Energy Cost Savings ($/yr)
LA
$2,500 SD
River
$2,000 SF
Phnx
FW
$1,500
Mia
Atl
$1,000
Chic
DC
$500
$0
0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 1.1
Marginal Cost of Gas ($/therm s)
Normalized Energy Cost Savings for Hotel, 89% vs. 80% Eff. Boiler
$3.20
$2.80
LA
$2.40 SD
Savings ($/yr/MBH Cap)
Normalized Energy Cost
River
$2.00 SF
Phnx
$1.60 FW
Mia
$1.20 Atl
Chic
$0.80 DC
$0.40
$0.00
0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 1.1
Figure 7 - Energy Cost Savings for Large Office, 84% vs. 80% Efficient Boiler

Energy Cost Savings for Medium Office, 84% vs. 80% Eff. Boiler
$450
$400
$350
LA
SD
$300
River
$250 SF
Phnx
$200 FW
Mia
$150 Atl
Chic
$100
DC
$50
$0
0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 1.1
Normalized Energy Cost Savings for Medium Office, 84% vs. 80% Eff. Boiler
$1.40
$1.20
LA
$1.00 SD
River
SF
$0.80
Phnx
FW
$0.60 Mia
Atl
$0.40 Chic
DC
$0.20
$0.00
0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 1.1
Figure 8 - Energy Cost Savings for Medium Office, 84% vs. 80% Efficient Boiler

Energy Cost Savings for Hotel, 84% vs. 80% Eff. Boiler
$10,000
$9,000
$8,000 LA
SD
$7,000
River
$6,000 SF
Phnx
$5,000 FW
Mia
$4,000
Atl
$3,000 Chic
DC
$2,000
$1,000
$0
0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 1.1
$3.20
$2.80
LA
$2.40
SD
River
$2.00
SF
Phnx
$1.60
FW
Mia
$1.20
Atl
Chic
$0.80
DC
$0.40
$0.00
0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 1.1
Figure 9 - Energy Cost Savings for Hotel, 84% vs. 80% Efficient Boiler

Energy Cost Savings for Large Retail, 84% vs. 80% Eff. Boiler
$3,000
$2,500
LA
SD
$2,000
River
SF
$1,500 Phnx
FW
Mia
$1,000 Atl
Chic
DC
$500
$0
0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 1.1
Normalized Energy Cost Savings for Large Retail, 84% vs. 80% Eff. Boiler
$1.60
$1.40
LA
$1.20
SD
River
$1.00
SF
Phnx
$0.80
FW
Mia
$0.60
Atl
Chic
$0.40
DC
$0.20
$0.00
0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 1.1
Figure 10 - Energy Cost Savings for Large Retail, 84% vs. 80% Efficient Boiler

Energy Cost Savings for Hospital, 84% vs. 80% Eff. Boiler
$20,000
$18,000
$16,000
LA
$14,000 SD
River
$12,000 SF
Phnx
$10,000
FW
$8,000 Mia
Atl
$6,000
Chic
$4,000 DC
$2,000
$0
0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 1.1
Normalized Energy Cost Savings for Hospital, 84% vs. 80% Eff. Boiler
$6.00
LA
SD
River
SF
$4.00 Phnx
FW
Mia
Atl
$2.00 Chic
DC
$0.00
0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 1.1
Figure 11 - Energy Cost Savings for Hospital, 84% vs. 80% Efficient Boiler

Energy Cost Savings for School, 84% vs. 80% Eff. Boiler
$1,400
$1,200
LA
SD
$1,000 River
SF
$800 Phnx
FW
$600 Mia
Atl
Chic
$400
DC
$200
$0
0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 1.1
Normalized Energy Cost Savings for School, 84% vs. 80% Eff. Boiler
$1.00
$0.80
LA
SD
River
$0.60 SF
Phnx
FW
$0.40 Mia
Atl
Chic
$0.20 DC
$0.00
0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 1.1
Figure 12 - Energy Cost Savings for School, 84% vs. 80% Efficient Boiler

Energy Cost Savings for Medical Clinic, 84% vs. 80% Eff. Boiler
$1,600
$1,400
$1,200 LA
SD
$1,000 River
SF
$800 Phnx
FW
$600 Mia
Atl
$400 Chic
DC
$200
$0
0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 1.1
Normalized Energy Cost Savings for Medical Clinic, 84% vs. 80% Eff. Boiler
$3.00
$2.80
$2.60
$2.40
LA
$2.20
SD
$2.00
River
$1.80 SF
$1.60 Phnx
$1.40 FW
$1.20 Mia
$1.00 Atl
$0.80 Chic
$0.60 DC
$0.40
$0.20
$0.00
0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 1.1
Figure 13 - Energy Cost Savings for Medical Clinic, 84% vs. 80% Efficient Boiler


89% Efficient, Condensing Boilers

The following charts show the savings associated with a
condensing boiler compared to a standard 80% efficient
boiler, by building type. Efficiency ratings for
condensing boilers range from 87% to 96%. The 89%
efficiency rating was selected as a conservative basis for
estimating savings. Actual savings will vary based on
actual equipment efficiency. As a general rule, the
increase in savings will be proportional to the increase
in efficiency.
Energy Cost Savings for Large Office, 89% vs. 80% Eff. Boiler
$7,000
$6,000
LA
$5,000
SD
River
$4,000 SF
Phnx
$3,000 FW
Mia
Atl
$2,000
Chic
DC
$1,000
$0
0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 1.1
Normalized Energy Cost Savings for Large Office, 89% vs. 80% Eff. Boiler
$1.40
$1.20
LA
$1.00 SD
River
$0.80 SF
Phnx
FW
$0.60
Mia
Atl
$0.40 Chic
DC
$0.20
$0.00
0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 1.1
Marginal Cost of Gas ($/therms)
Figure 14 - Energy Cost Savings for Large Office, 89% vs. 80% Efficient Boiler

Energy Cost Savings for Medium Office, 89% vs 80% Eff. Boiler
$1,000
$900
$800
Annual Enegy Cost Savings ($/yr)
LA
$700 SD
River
$600
SF
$500 Phnx
FW
$400 Mia
Atl
$300
Chic
$200 DC
$100
$0
0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 1.1
Normalized Energy Cost Savings for Medium Office, 89% vs. 80% Eff. Boiler
$1.40
$1.20
LA
$1.00 SD
River
SF
$0.80
Phnx
FW
$0.60
Mia
Atl
$0.40 Chic
DC
$0.20
$0.00
0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 1.1
Figure 15 - Energy Cost Savings for Medium Office, 89% vs. 80% Efficient Boiler

Energy Cost Savings for Hotel, 89% vs. 80% Eff. Boiler
$25,000
$20,000 LA
SD
River
$15,000 SF
Phnx
FW
$10,000 Mia
Atl
Chic
$5,000 DC
$0
0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 1.1
$3.20
$2.80
LA
$2.40 SD
River
$2.00 SF
Phnx
$1.60 FW
Mia
$1.20 Atl
Chic
$0.80 DC
$0.40
$0.00
0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 1.1
Figure 16 - Energy Cost Savings for Hotel, 89% vs. 80% Efficient Boiler

Energy Cost Savings for Large Retail, 89% vs. 80% Eff. Boiler
$6,000
$5,000
LA
SD
$4,000 River
SF
Phnx
$3,000
FW
Mia
$2,000 Atl
Chic
DC
$1,000
$0
0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 1.1
Normalized Energy Cost Savings for Large Retail, 89% vs. 80% Eff. Boiler
$1.60
$1.40
LA
$1.20
SD
River
$1.00
SF
Phnx
$0.80
FW
Mia
$0.60
Atl
Chic
$0.40
DC
$0.20
$0.00
0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 1.1
Figure 17 - Energy Cost Savings for Large Retail, 89% vs. 80% Efficient Boiler

Energy Cost Savings for Hospital, 89% vs. 80% Eff. Boiler
$40,000
$35,000
LA
$30,000
SD
River
$25,000
SF
Phnx
$20,000
FW
Mia
$15,000
Atl
Chic
$10,000
DC
$5,000
$0
0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 1.1
Normalized Energy Cost Savings for Hospital, 89% vs. 80% Eff. Boiler
$6.00
LA
SD
River
SF
$4.00 Phnx
FW
Mia
Atl
$2.00 Chic
DC
$0.00
0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 1.1
Figure 18 - Energy Cost Savings for Hospital, 89% vs. 80% Efficient Boiler

Energy Cost Savings for School, 89% vs. 80% Eff. Boiler
$3,500
$3,000
LA
$2,500 SD
River
SF
$2,000
Phnx
FW
$1,500 Mia
Atl
$1,000 Chic
DC
$500
$0
0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 1.1
Normalized Energy Cost Savings for School, 89% vs. 80% Eff. Boiler
$1.00
$0.80
LA
SD
River
$0.60 SF
Phnx
FW
$0.40 Mia
Atl
Chic
DC
$0.20
$0.00
0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 1.1
Figure 19 - Energy Cost Savings for School, 89% vs. 80% Efficient Boiler

Energy Cost Savings for Medical Clinic, 89% vs. 80% Eff. Boiler
$4,000
$3,500
LA
$3,000
SD
River
$2,500
SF
Phnx
$2,000
FW
Mia
$1,500
Atl
Chic
$1,000
DC
$500
$0
0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 1.1
Normalized Energy Cost Savings for Medical Clinic, 89% vs. 80% Eff. Boiler
$3.00
$2.80
$2.60
$2.40
LA
$2.20
SD
$2.00
River
$1.80
SF
$1.60
Phnx
$1.40
FW
$1.20
Mia
$1.00 Atl
$0.80 Chic
$0.60 DC
$0.40
$0.20
$0.00
0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 1.1
Figure 20 - Energy Cost Savings for Medical Clinic, 89% vs. 80% Efficient Boiler

C. Cost Effectiveness
84% Efficient Boilers

The following graphs show the Savings to Investment
Ratio (SIR) for an 84% efficient boiler compared to a
standard 80% efficient boiler, using an incremental
equipment cost of $3.25/MBH boiler capacity, for an 8,
12 and 16 scalar, respectively.
Bldg. Marg. Scalar

Location
Type Gas Rate 8 12 16
Medium Los Angeles 0.53 0.49 0.74 0.98
Office San Diego 0.78 0.66 0.99 1.33
Riverside 0.52 0.45 0.68 0.91
San Francisco 0.59 0.73 1.09 1.46
Phoenix 0.63 0.50 0.75 1.00
Fort Worth 0.19 0.18 0.28 0.37
Miami 0.96 0.40 0.61 0.81
Atlanta 0.60 0.45 0.67 0.89
Chicago 0.39 0.38 0.56 0.75
Baltimore (Wash D.C.) 0.84 0.84 1.26 1.68
Large Los Angeles 0.41 0.47 0.71 0.95
Office San Diego 0.51 0.46 0.69 0.92
Riverside 0.40 0.40 0.60 0.80
San Francisco 0.59 0.68 1.02 1.36
Phoenix 0.64 0.56 0.85 1.13
Fort Worth 0.17 0.18 0.26 0.35
Miami 0.96 0.32 0.47 0.63
Atlanta 0.58 0.46 0.69 0.91
Chicago 0.36 0.45 0.67 0.89
Hotel Los Angeles 0.40 0.85 1.28 1.70
San Diego 0.49 1.21 1.82 2.42
Riverside 0.40 0.85 1.28 1.71
San Francisco 0.44 1.21 1.82 2.42
Phoenix 0.44 0.48 0.72 0.96
Fort Worth 0.18 0.26 0.39 0.52
Miami 0.92 0.50 0.75 1.00
Atlanta 0.57 0.91 1.37 1.82
Chicago 0.35 0.77 1.16 1.55
Figure 21 - SIR for 84% vs. 80% Efficient Boiler

Bldg. Marg. Scalar

Location
Retail San Diego 0.83 0.01 0.02 0.03
Riverside 0.52 0.03 0.05 0.06
San Francisco 0.61 0.11 0.16 0.22
Phoenix 0.65 0.08 0.11 0.15
Fort Worth 0.17 0.08 0.12 0.15
Miami 1.20 0.02 0.02 0.03
Atlanta 0.56 0.31 0.46 0.62
Chicago 0.36 0.51 0.77 1.02
Hospital Los Angeles 0.36 2.49 3.73 4.97
San Diego 0.43 2.93 4.40 5.86
Riverside 0.36 2.53 3.80 5.07
San Francisco 0.43 3.11 4.66 6.22
Phoenix 0.41 2.62 3.93 5.25
Fort Worth 0.23 1.51 2.27 3.02
Miami 0.92 5.69 8.54 11.38
Atlanta 0.63 4.27 6.41 8.55
Chicago 0.35 2.47 3.70 4.94
School Los Angeles 0.52 0.17 0.26 0.35
San Diego 0.77 0.28 0.42 0.56
Riverside 0.53 0.15 0.23 0.31
San Francisco 0.59 0.25 0.37 0.50
Phoenix 0.63 0.17 0.25 0.33
Fort Worth 0.18 0.06 0.09 0.12
Miami 0.95 0.36 0.55 0.73
Atlanta 0.58 0.26 0.39 0.52
Chicago 0.38 0.30 0.44 0.59
Clinic Los Angeles 0.40 0.70 1.05 1.40
San Diego 0.56 0.85 1.28 1.71
Riverside 0.40 0.71 1.06 1.41
San Francisco 0.58 1.26 1.89 2.52
Phoenix 0.63 0.92 1.37 1.83
Fort Worth 0.18 0.27 0.40 0.54
Miami 0.96 0.58 0.87 1.16
Atlanta 0.58 1.08 1.62 2.16
Chicago 0.38 0.96 1.44 1.92
Figure 21 (continued) - SIR for 84% vs. 80% Efficient Boiler

Large Office, 84% Eff. Boiler, based on a Scalar of 8

& incremental equipment cost of $3.25/MBH capacity
4.00
SIR (LCC Savings/Incremental

Equip. Cost/MBH Capacity)
LA
3.00 SD
R iver
SF
P hnx
2.00
FW
M ia
A tl
1.00 C hic
DC
0.00
0.3 0.5 0.7 0.9 1.1

4.00
LA
3.00 SD
R iver
SF
P hnx
2.00
FW
M ia
A tl
1.00 C hic
DC
0.00
0.3 0.5 0.7 0.9 1.1

& incremental cost of $3.25/MBH capacity
4.00
LA
SD
3.00
R iver
SF
P hnx
2.00
FW
M ia
A tl
1.00 C hic
DC
0.00
0.3 0.5 0.7 0.9 1.1
Figure 22 - Savings to Investment Ratio for Large Office, 84% vs. 80% Efficient Boiler

Medium Office, 84% Eff. Boiler, based on a Scalar of 8

4.00
LA

SD
3.00 R iver
SF
P hnx
2.00 FW
M ia
A tl
1.00 C hic
DC
0.00
0.3 0.5 0.7 0.9 1.1

4.00
LA
SD
3.00
R iver
SF
P hnx
2.00 FW
M ia
A tl
1.00 C hic
DC
0.00
0.3 0.5 0.7 0.9 1.1

4.00
LA
SD
3.00
R iver
SF
P hnx
2.00
FW
M ia
A tl
1.00 C hic
DC
0.00
0.3 0.5 0.7 0.9 1.1
Figure 23 - Savings to Investment Ratio for Medium Office, 84% vs. 80% Efficient Boiler

Hotel, 84% Eff. Boiler, based on a Scalar of 8

4.00

LA
3.00 SD
R iver
SF
P hnx
2.00
FW
M ia
A tl
1.00 C hic
DC
0.00
0.3 0.5 0.7 0.9 1.1

4.00
LA
3.00 SD
R iver
SF
P hnx
2.00 FW
M ia
A tl
1.00 C hic
DC
0.00
0.3 0.5 0.7 0.9 1.1

4.00
LA
3.00 SD
R iver
SF
P hnx
2.00
FW
M ia
A tl
1.00 C hic
DC
0.00
0.3 0.5 0.7 0.9 1.1
Figure 24 - Savings to Investment Ratio for Hotel, 84% vs. 80% Efficient Boiler

Large Retail, 84% Eff. Boiler, based on a Scalar of 8

4.00

LA
SD
3.00
R iver
SF
P hnx
2.00 FW
M ia
A tl
1.00 C hic
DC
0.00
0.3 0.5 0.7 0.9 1.1

4.00
LA
SD
3.00
R iver
SF
P hnx
2.00 FW
M ia
A tl
1.00 C hic
DC
0.00
0.3 0.5 0.7 0.9 1.1

4.00
LA
3.00 SD
R iver
SF
P hnx
2.00
FW
M ia
A tl
1.00 C hic
DC
0.00
0.3 0.5 0.7 0.9 1.1
Figure 25 - Savings to Investment Ratio for Large Retail, 84% vs. 80% Efficient Boiler

Hospital, 84% Eff. Boiler, based on a Scalar of 8

4.00

LA
3.00 SD
R iver
SF
P hnx
2.00
FW
M ia
A tl
1.00 C hic
DC
0.00
0.3 0.5 0.7 0.9 1.1
Hospital, 84% Eff. Condensing Boiler, based on a Scalar of 12

4.00
LA
3.00 SD
R iver
SF
P hnx
2.00
FW
M ia
A tl
1.00 C hic
DC
0.00
0.3 0.5 0.7 0.9 1.1
Hospital, 84% Eff. Boiler, based on a Scalar of 16

4.00
LA
3.00 SD
R iver
SF
All values are above 4.0. The measure is P hnx
2.00 cost-effective for these conditions. FW
M ia
A tl
1.00 C hic
DC
0.00
0.3 0.5 0.7 0.9 1.1
Figure 26 - Savings to Investment Ratio for Hospital, 84% vs. 80% Efficient Boiler

School, 84% Eff. Boiler, based on a Scalar of 8

4.00

LA

SD
3.00
R iver
SF
P hnx
2.00 FW
M ia
A tl
1.00 C hic
DC
0.00
0.3 0.5 0.7 0.9 1.1

4.00
LA
3.00 SD
R iver
SF
P hnx
2.00
FW
M ia
A tl
1.00 C hic
DC
0.00
0.3 0.5 0.7 0.9 1.1

4.00
LA
3.00 SD
R iver
SF
P hnx
2.00
FW
M ia
A tl
1.00 C hic
DC
0.00
0.3 0.5 0.7 0.9 1.1
Figure 27 - Savings to Investment Ratio for School, 84% vs. 80% Efficient Boiler

Clinic,84% Eff. Boiler, based on a Scalar of 8

4.00

LA
3.00 SD
R iver
SF
P hnx
2.00
FW
M ia
A tl
1.00 C hic
DC
0.00
0.3 0.5 0.7 0.9 1.1
Clinic, 84% Eff. Boiler, based on a Scalar of 12

4.00
LA
3.00 SD
R iver
SF
2.00 P hnx
FW
M ia
A tl
1.00
C hic
DC
0.00
0.3 0.5 0.7 0.9 1.1
Clininc,84% Eff. Boiler, based on a Scalar of 16

4.00
LA
3.00 SD
R iver
SF
P hnx
2.00
FW
M ia
A tl
1.00 C hic
DC
0.00
0.3 0.5 0.7 0.9 1.1
Figure 28 - Savings to Investment Ratio for Medical Clinic, 84% vs. 80% Efficient Boiler


89% Efficient, Condensing Boilers

The following graphs show the SIR for a condensing
boiler (89%) compared to a standard 80% efficient
boiler, using an incremental equipment cost of
$5.00/MBH boiler capacity, for an 8, 12 and 16 scalar,
respectively.
Bldg. Marg. Scalar

Location
Medium Los Angeles 0.53 0.68 1.02 1.35
Office San Diego 0.78 0.91 1.37 1.83
Riverside 0.53 0.63 0.94 1.26
San Francisco 0.58 1.01 1.51 2.01
Phoenix 0.63 0.69 1.03 1.37
Fort Worth 0.19 0.25 0.38 0.50
Miami 0.96 0.56 0.84 1.12
Atlanta 0.60 0.62 0.92 1.23
Chicago 0.39 0.52 0.77 1.03
Office San Diego 0.51 0.63 0.95 1.27
Riverside 0.40 0.55 0.83 1.10
San Francisco 0.59 0.94 1.41 1.88
Phoenix 0.64 0.78 1.17 1.56
Fort Worth 0.17 0.24 0.36 0.48
Miami 0.96 0.43 0.65 0.87
Atlanta 0.58 0.63 0.95 1.26
Chicago 0.36 0.62 0.93 1.24
Hotel Los Angeles 0.40 1.28 1.92 2.56
San Diego 0.49 1.82 2.73 3.64
Riverside 0.40 1.28 1.92 2.57
San Francisco 0.44 1.82 2.74 3.65
Phoenix 0.44 0.72 1.08 1.44
Fort Worth 0.18 0.39 0.59 0.78
Miami 0.92 0.76 1.13 1.51
Atlanta 0.57 1.37 2.06 2.74
Chicago 0.35 1.16 1.75 2.33
Figure 29 - SIR for 89% vs. 80% Efficient Boiler

Bldg. Marg. Scalar

Location
Retail San Diego 0.85 0.02 0.03 0.04
Riverside 0.53 0.04 0.07 0.09
San Francisco 0.61 0.15 0.23 0.30
Phoenix 0.65 0.10 0.16 0.21
Fort Worth 0.17 0.11 0.16 0.21
Miami 1.09 0.02 0.03 0.04
Atlanta 0.56 0.43 0.64 0.85
Chicago 0.36 0.71 1.06 1.41
Hospital Los Angeles 0.32 3.10 4.65 6.21
San Diego 0.43 4.05 6.07 8.10
Riverside 0.35 3.41 5.12 6.83
San Francisco 0.43 4.29 6.44 8.59
Phoenix 0.41 3.62 5.43 7.24
Fort Worth 0.23 2.09 3.13 4.17
Miami 0.92 7.86 11.79 15.71
Atlanta 0.63 5.90 8.85 11.80
Chicago 0.35 3.41 5.11 6.82
School Los Angeles 0.52 0.11 0.17 0.23
San Diego 0.77 0.18 0.27 0.37
Riverside 0.53 0.10 0.15 0.20
San Francisco 0.59 0.16 0.24 0.32
Phoenix 0.63 0.11 0.16 0.22
Fort Worth 0.18 0.04 0.06 0.08
Miami 0.95 0.24 0.36 0.47
Atlanta 0.58 0.17 0.26 0.34
Chicago 0.38 0.19 0.29 0.39
Clinic Los Angeles 0.40 0.46 0.68 0.91
San Diego 0.56 0.56 0.83 1.11
Riverside 0.40 0.46 0.69 0.92
San Francisco 0.58 0.82 1.23 1.64
Phoenix 0.63 0.60 0.89 1.19
Fort Worth 0.18 0.17 0.26 0.35
Miami 0.96 0.38 0.56 0.75
Atlanta 0.58 0.70 1.05 1.40
Chicago 0.38 0.63 0.94 1.25
Figure 29 (continued) - SIR for 89% vs. 80% Efficient Boiler

Large Office, 89% Eff. Condensing Boiler, based on a Scalar of 8

& incremental equipment cost of $5/MBH capacity
4.00

LA

SD
3.00
R iver
SF
P hnx
2.00
FW
M ia
A tl
1.00 C hic
DC
0.00
0.3 0.5 0.7 0.9 1.1

4.00
LA
SD
3.00
R iver
SF
P hnx
2.00
FW
M ia
A tl
1.00 C hic
DC
0.00
0.3 0.5 0.7 0.9 1.1

4.00
LA
SD
3.00
R iver
SF
P hnx
2.00 FW
M ia
A tl
1.00 C hic
DC
0.00
0.3 0.5 0.7 0.9 1.1
Figure 30 - Savings to Investment Ratio for Large Office, 89% vs. 80% Efficient Boiler

Medium Office, 89% Eff. Condensing Boiler, based on a Scalar of 8,

incremental equipment cost of $5/MBH capacity
4.00

LA

SD
3.00
R iver
SF
P hnx
2.00
FW
M ia
A tl
1.00 C hic
DC
0.00
0.3 0.5 0.7 0.9 1.1

4.00
LA
SD
3.00
R iver
SF
P hnx
2.00 FW
M ia
A tl
1.00 C hic
DC
0.00
0.3 0.5 0.7 0.9 1.1

4.00
LA
3.00 SD
R iver
SF
P hnx
2.00
FW
M ia
A tl
1.00 C hic
DC
0.00
0.3 0.5 0.7 0.9 1.1
Figure 31 - Savings to Investment Ratio for Medium Office, 89% vs. 80% Efficient Boiler

Hotel, 89% Eff. Condensing Boiler, based on a Scalar of 8

4.00
SIR (LCC Savings/Incremental LA
Equip. Cost/MBH Capacity) 3.00

SD
R iver
SF
P hnx
2.00 FW
M ia
A tl
1.00 C hic
DC
0.00
0.3 0.5 0.7 0.9 1.1
Hotel, 89% Eff. Condensing Boiler, based on a Scalar of 12

4.00
LA
3.00 SD
R iver
SF
P hnx
2.00 FW
M ia
A tl
1.00 C hic
DC
0.00
0.3 0.5 0.7 0.9 1.1
Hotel, 89% Eff. Condensing Boiler, based on a Scalar of 16 &

4.00
LA
3.00 SD
R iver
SF
P hnx
2.00
FW
M ia
A tl
1.00 C hic
DC
0.00
0.3 0.5 0.7 0.9 1.1
Figure 32 - Savings to Investment Ratio for Hotel, 89% vs. 80% Efficient Boiler

Large Retail, 89% Eff. Condensing Boiler, based on a Scalar of 8

4.00
LA

SD
3.00 R iver
SF
P hnx
2.00 FW
M ia
A tl
1.00 C hic
DC
0.00
0.3 0.5 0.7 0.9 1.1

4.00
LA
SD
3.00
R iver
SF
P hnx
2.00 FW
M ia
A tl
1.00 C hic
DC
0.00
0.3 0.5 0.7 0.9 1.1

4.00
LA
SD
3.00
R iver
SF
P hnx
2.00 FW
M ia
A tl
1.00 C hic
DC
0.00
0.3 0.5 0.7 0.9 1.1
Figure 33 - Savings to Investment Ratio for Large Retail, 89% vs. 80% Efficient Boiler


4.00
SIR (LCC Savings/Incremental LA
Equip. Cost/MBH Capacity) SD
3.00 R iver
SF
P hnx
2.00 FW
M ia
A tl
1.00 C hic
DC
0.00
0.3 0.5 0.7 0.9 1.1

4.00
LA
SD
3.00
R iver
SF

2.00
cost-effective for these conditions. FW
M ia
A tl
1.00
C hic
DC
0.00
0.3 0.5 0.7 0.9 1.1

4.00
LA
SD
3.00
R iver
SF
2.00 cost-effective for these conditions. FW
M ia
A tl
1.00 C hic
DC
0.00
0.3 0.5 0.7 0.9 1.1
Figure 34 - Savings to Investment Ratio for Hospital, 89% vs. 80% Efficient Boiler

School, 89% Eff. Condensing Boiler, based on a Scalar of 8

4.00

LA

SD
3.00
R iver
SF
P hnx
2.00 FW
M ia
A tl
1.00 C hic
DC
0.00
0.3 0.5 0.7 0.9 1.1

4.00
LA
SD
3.00
R iver
SF
P hnx
2.00 FW
M ia
A tl
1.00 C hic
DC
0.00
0.3 0.5 0.7 0.9 1.1

4.00
LA
SD
3.00 R iver
SF
P hnx
2.00 FW
M ia
A tl
1.00 C hic
DC
0.00
0.3 0.5 0.7 0.9 1.1
Figure 35 - Savings to Investment Ratio for School, 89% vs. 80% Efficient Boiler

Clinic, 89% Eff. Condensing Boiler, based on a Scalar of 8

4.00
LA

SD
3.00 R iver
SF
P hnx
2.00 FW
M ia
A tl
1.00 C hic
DC
0.00
0.3 0.5 0.7 0.9 1.1

4.00
LA
SD
3.00
R iver
SF
P hnx
2.00 FW
M ia
A tl
1.00 C hic
DC
0.00
0.3 0.5 0.7 0.9 1.1

4.00
LA
SD
3.00
R iver
SF
P hnx
2.00
FW
M ia
A tl
1.00 C hic
DC
0.00
0.3 0.5 0.7 0.9 1.1
Figure 36 - Savings to Investment Ratio for Medical Clinic, 89% vs. 80% Efficient Boiler

CHAPTER 6: BIBLIOGRAPHY
ASHRAE 1996 Systems & Equipment Handbook,

Chapter 27.
Gas Research Institute Digest, GRID - Spring 1996.
Cutting Edge in Basic Research - Pulse Combustion,
Research Harnesses a Fascinating Phenomenon
Hewett, Lobenstein, Nathan and Krauss, 1996. Baseline
Market Conditions for Efficient Commercial And
Industrial Gas Technologies, 1996 ACEEE Summer
Study Proceedings, Volume 4.
Pacific Northwest National Laboratory, July 1996.
Analysis of Commercial Space-Conditioning and
Storage Water-Heating Equipment Efficiencies,.

CHAPTER 7: APPENDIX
External loads from the three sides of

the building in thermal contact with
A. Building Type Descriptions the rest of the mall, are neglected.
1. Medium Office Building Operating hours are 10AM to 10PM,
This building is a 49,000 sq. ft., 3- 6 days a week and 10AM to 6PM
story structure made of precast Sundays and holidays. The HVAC
exterior concrete panels. The glass is systems are constant volume variable
36% of the wall area on all sides and temperature (CVVT) served by
is vertical. (The original building had centrifugal chillers and gas-fired hot
sloped glass on the lower level. - is water generators.
this comment of any significance,
other than historical interest?) 4. Strip Retail
Occupancy is 330 people, 5 days a The strip store is a typical 9,600 sq. ft.
week plus half-day on Saturday, none end unit of a street mall with one
on Sundays or holidays. The HVAC portion of one side connected to
system has three powered induction another store. It is a slab-on-grade
units serving each floor separately, building of wood frame construction
with variable-air-volume (VAV) air with display windows on the west and
handling units on the roof. The chiller south walls. The west windows are
is DX air cooled and the heating is by shaded by a canopy, but on the south
a gas-fired hot water generator. side there is no shading. The glazing
on the west and south exposures is
2. Large Office Building about 35% of the wall area. The store
This structure is a hexagonal shaped is open for business 10AM to 10PM,
38-story office building with 18,000 6 days a week and from 10AM to
sq. ft. per floor (total of 684,000 sq. 6PM on Sundays and holidays. The
ft.). Construction is steel frame with HVAC system is a rooftop packaged
limestone cladding. The glass area on VAV unit with DX air cooled
the SE and NW sides is about 50%, condensing unit. The heating is by a
with the other four sides having 15% gas-fired hot water generator.
glass. The building is occupied from
8AM to 6PM weekdays, 10% 5. Hospital
occupied during the same hours on The building is a 4-story, 272,200 sq.
Saturday and unoccupied Sundays and ft., 348-bed hospital. It is of face
holidays. The HVAC systems are brick construction. There are multiple
split into a core VAV system and a types of HVAC systems such as dual
perimeter VAV system with reheat duct, 4-pipe induction, reheat constant
coils for the perimeter only. The volume, 4-pipe fan coil and CVVT.
chillers are centrifugal and heating is These units are all served by hermetic
supplied by gas-fired hot water centrifugal chillers and gas-fired hot
generators. water generators.
3. Retail Store 6. Junior High School

The retail store is a high quality The junior high school is a 50,000 sq.
department store located in a shopping ft. building with combination
mall. It is a 2-story masonry structure auditorium/recreation space, multi-
of 164,200 sq. ft. with 82% of the purpose rooms, and classrooms. The
floor area devoted to merchandising classroom section is 2-stories high.
and office and 18% devoted to storage Walls are constructed of face brick
and stock preparation. There is very and stucco. The building is modeled
little glass except for entry doors.

CHAPTER 7: APPENDIX
with CVVT units with centrifugal periods of occupancy are from 5AM
chiller and gas-fired heaters. to midnight, 7 days per week.
7. Hotel
This 350 room hotel is a medium size
convention-type facility with 10 floors
totaling 315,000 sq. ft. The space
utilization divides as follows: 65%
guest rooms, 30% public areas such as
lobby, restaurants and meeting rooms,
and 5% service area. The building is
70% glass on the west, 50% on the
east and less than 10% on the south
and north. Construction is of
reinforced concrete. The HVAC
system is a mix of VAV and CVVT in
the public areas, with 4-pipe fan coil
units in the guest rooms and CVVT
for makeup air units supplying
ventilation air to the corridors for
guest room bathrooms.
8. Full Service Restaurant

This full service restaurant is open
from 7AM to 12 midnight all days
including holidays. The building is a
1-story brick structure with 9,060 sq.
ft. of floor space with a main dining
area for 240 people and a lounge area
for 60 people. The HVAC system
includes a multi-zone unit serving the
public areas and a CVVT unit serving
the kitchen area. Makeup air
requirements are about 65% of the
total supply air. The primary cooling
is provided by two reciprocating
chillers with air cooled condensers.
Heating is from two hot water
generators.
9. Fast Food Restaurant

The fast food restaurant is atypical
major chain design with food
preparation, food storage and food
service and dining areas. The
restaurant is a single floor, 2,000
square foot building with wood frame
construction, brick veneer, and a built-
up roof. The restaurant has 4 five-ton
DX packaged rooftop units with
150,000 Btuh input gas heating each.
Windows are present on the north,
south, and west walls. Floor-to-roof
height is 12 feet. Maximum
occupancy is 81 persons. Typical

CHAPTER 7: APPENDIX
B. Summary of Utility Rates
Summary of Gas Utility Rates Used
Minimum Maximum
City Utility Rate Name Rate Type (Therms/Mo) (Therms/Mo)
Chicago NiCor 4 General Service 0 No Limit
Washington DC Washington Gas Light 2 General Service 0 No Limit
Dallas/Ft. Worth Lone Star Gas General Service General Service 0 No Limit
Los Angeles City So. Cal. Gas GN-10 General Service 0 <20800
GN-20 General Service 20800 No Limit
G-AC Air Conditioning 0 No Limit
Riverside So. Cal. Gas GN-10 General Service 0 <20800

G-AC Air Conditioning 0 No Limit
San Diego San Diego G & E GN-1 General Service 0 <20800

San Francisco Pacific G & E G-NR1 General Service 0 <20800

G-NR2 General Service 20800 No Limit
Atlanta Atlanta Gas Light G-11 General Service 0 <2000 th/day

G-11 AC Air Conditioning 0 <2000 th/day
G-12 Heating Only 0 <2000 th/day
G-13 LLF General Service 0 <5000 th/day
G-13 AC LLF Air Conditioning 0 <5000 th/day
Phoenix Southwest Gas CG-25 Small General Service 0 600

CG-25 Medium General Service >600 15000
CG-25 Large General Service >15000 No Limit
CG-40 Air Conditioning 0 No Limit
Miami Peoples Gas SGS General Service 0 108

GS General Service >108 2708
GSLV-1 General Service >2708 54166
GSLV-2 General Service >54166 No Limit
Rider LE Air Conditioning 0 No Limit

CHAPTER 7: APPENDIX
of savings does not exceed the investment cost, then the

investment will not provide the minimum rate of return
C. Scalar Ratio and SIR and could be better spent on another investment.
Throughout the Guidelines, the terms scalar ratio and Of course, in the case where the net cost of the higher
SIR (savings to investment ratio) are used to describe efficiency equipment is lower than that of the base case
the economic analysis of measures. A scalar ratio is a equipment, any positive present worth of energy savings
mathematical simplification of life cycle costing (LCC) indicates a sound investment. In some cases more
analysis. An SIR compares the life cycle savings to the efficient equipment allows downsizing of other
initial investment. An LCC analysis is preferable to a equipment in the building, such as the electrical load
simple payback analysis, because it enables a more center and service drop. These savings can be
realistic assessment of all the costs and savings to be significant enough to offset the incremental cost of the
expected over the life of an investment. While LCC more efficient equipment, resulting in a lower overall
analysis can be quite complicated and difficult to first cost. To be conservative, in the development of
understand, a scalar ratio and an SIR are relatively these Guidelines, we have ignored these potential related
simple to use. This discussion explains their meaning savings.
and derivation, and provides some guidance on how to
use them in better understanding the analysis graphs in Likewise, maintenance costs were not included because
these Guidelines. there are too many variables and the additional
complication would not have increased the clarity or
accuracy of the analysis.
Scalar Ratios Simplified
Figure 37 shows a simple spreadsheet illustrating how
In technical terms, the scalar ratio represents the series this basic scenario would be calculated. In the example,
present worth multiplier. This can be understood by the first years savings are $1,051. The annual energy
assuming a simple situation: an initial investment in an savings escalate at 4% per year, and the annual
energy efficiency measure, followed by a series of maintenance costs escalate at 2% per year. If you
annual energy savings realized during the lifetime of the simply add up these costs after five years, you will
measure. The annual energy costs are assumed to expect to save $5,734. The discounted present worth is
escalate at a steady rate over the years and an annual calculated using the spreadsheets net present value
maintenance cost, when included, is assumed to escalate (NPV) function using the string of annual totals and the
at a different steady rate. Once the included costs and discount rate. If the discount rate is 15%, these savings
savings are laid out over the life of the investment, each have a present worth of $3,799, which is 3.6 times the
years net savings is discounted back to present dollars, first years savings (scalar ratio = 3.6). If the initial
and the resulting present worth values are summed to investment to achieve these savings was less than
arrive at the life cycle energy savings. This number is $3,799, then it meets the investment criteria and will
then divided by the net savings for the first year, to provide a rate of return greater than 15%. On the other
obtain the scalar ratio. Once the scalar ratio is hand, if the discount rate is 3%, the present worth of the
determined, it can be applied to other investment savings is $5,239 and the scalar ratio is 5.0. Investors
scenarios that share the same economic rates of energy with high discount rates have higher expectations for
cost and maintenance cost escalation. One simply their returns on investment, and are therefore less
calculates the first years energy savings and multiplies willing to invest in efficiency measures that have lower
it by the scalar ratio to obtain the net present worth of savings. On the other hand, public agencies and most
the savings. individuals have lower discount rates and accept lower
rates of return in exchange for reliable returns. A
The process of discounting these future dollars back to
discount rate of 3% in this example yields a scalar ratio
present dollars is a straightforward calculation (most
of 5.0 and indicates that a substantially higher initial
spreadsheets have built-in present worth functions). The
investment of $5,239 could be justified.
present worth of a future dollar earned (or saved) is a
function of the number of years in the future that the
dollar is earned, and of the discount rate. The discount
rate may be thought of as the interest rate one would
earn if the first cost dollars were put into a reliable
investment, or as the minimum rate of return one
demands from investments. If the investment is a good
one, the present worth of the discounted savings will
exceed the cost of the investment. If the present worth

CHAPTER 7: APPENDIX
Year: 1 2 3 4 5
Energy Savings (escalated 4%/yr); $1,200 $1,248 $1,298 $1,350 $1,404
Maint. costs (escalated 2%/yr): ($150) ($153) ($156) ($159) ($162)
Annual totals: $1,051 $1,097 $1,145 $1,195 $1,246
( Sum of Annual totals: $5,734 )
Discounted Present Worth: $3,799 / $1,051 = Scalar: 3.6

(15% discount rate)
Discounted Present Worth: $5,239 / $1,051 = Scalar: 5.0

(3% discount rate)
Figure 37 - Example Present Worth Calculation
expected from savings account or a money market

fund (2% - 4%). An upper end might be the rate of
Selecting a Scalar Ratio return that an aggressive investor expects to
To use the cost-effectiveness analysis graphs in this produce with his money (10% - 20%), although it is
Guideline, one must select a scalar ratio by deciding on difficult to argue that this represents an assured
the economic conditions for their efficiency investments. investment. Another way to think of the real
The example discussed here has been rather simplistic, discount rate is the real rate of return that
and the five-year analysis period is quite short for most competing investments must provide in order to
energy efficiency measures. In selecting a scalar, users change the choice of investments that the
should decide on at least the following: organization makes.
Period of Analysis - This is the number of years the The table in Figure 38 shows a range of typical scalars.
energy efficiency investment is expected to provide It presents the resulting scalars for 8, 15 and 30-year
savings. Some users will have a long-term study periods, discount rates ranging from 0% to 15%
perspective, and will choose a period of analysis and escalation rates ranging from 0% to 6%.
that approaches the expected life of the measure.
For long life measures, such as building insulation,
the period of analysis may be thirty years or more. Savings to Investment Ratios (SIRs)
For mechanical system measures, the period may be
An extension of the present worth and scalar concepts is
fifteen years. Other users may choose a shorter
the Savings to Investment Ratio (SIR). As indicated
analysis period because they are interested in their
above, one is interested in both the incremental first cost
personal costs and benefits and are not expecting to
of an investment (how much more it costs than the base
hold the property for a long time. Public policy
case) and in the present worth of its cost savings. The
agencies setting energy codes may choose a societal
SIR provides a simple way to compare the two: divide
perspective, based on the principle that building
the present worth of the savings by the incremental first
investments impinge on the environment and the
cost (or its present worth if the investment extends over
economy for a longer period of time, and so may
time). If this ratio is greater than one, then the
select a long period of analysis.
discounted savings are greater than the first cost, and the
Discount Rate - This is the real rate of return that return on investment will be greater than the discount
would be expected from an assured investment. A rate. The cost-effectiveness analysis graphs presented in
rate of return offered by an investment instrument is this Guideline use the SIR on the vertical axis. Thus any
the investments nominal interest rate and must be points on the curves that lie above an SIR value of one
adjusted, by the loss in real value that inflation are deemed to be cost effective.
causes, to arrive at the real interest rate. Nominal
discount rates must likewise be adjusted for
inflation to find the real discount rate. In order to Advanced Economic Analysis
simplify the analysis, we assumed a zero inflation
rate, which then makes the nominal and real The economic analysis could be more elaborate than the
discount rates the same. As discussed in the examples discussed here, of course, and could account
example above, different kinds of people may have for more factors. For example, there could be other
different expectations. A lower end interest rate maintenance costs that recur every few years, the energy
(and discount rate) might be the rate of return cost escalation factors could be non-linear, or the tax

CHAPTER 7: APPENDIX
deductions for the operating and maintenance costs Finally, it is assumed in this analysis that a decision
could be included. In addition, the first costs could be about the cost effectiveness of options is being made at
spread out over the years as loan payments and interest the time of new construction. For program designers
cost deductions. All of these costs would be discounted focusing on retrofit applications of these technologies,
back to present dollar values and summed to arrive at additional first costs will need to be included. This is
the net present value, which compares the life cycle less of an issue when the change-out is due to equipment
costs to the life cycle savings1. failure and replacement is required. In the case of
replacements for equipment that is still functioning, the
Analysis for different purposes will include both
incremental first cost will be the full cost of the new
different types of inputs as well as varying levels for the
equipment minus the salvage value of the equipment
input types chosen. For example, while a commercial
removed. Obviously, the energy savings must be of
building owner is likely to be interested in the economic
much greater value to justify replacing equipment before
impacts within a relatively short time frame, e.g., 8-10
the end of its useful life.
years, a state energy office is likely to be more
concerned with the societal economic impacts over a As this discussion illustrates, a thorough economic
much longer term, like 30 years for residential energy analysis of energy efficiency investments can require
codes. A business owner, who is looking at energy considerable thought and calculation. The scalar and
efficiency investments relative to other business uses of SIR approach used throughout these Guidelines provide
her capital, might also feel that a discount rate of 15% a convenient method for simplifying the economic
reflects her value for future energy savings. On the analysis task. For many purposes, this will be sufficient,
other hand, an energy efficiency program planner or provided the decision-makers who will be relying on this
energy code developer could justify a 0% discount rate analysis understand its limitations.
as representative of the future value of resource savings.
The table in Figure 39 provides guidance on selecting
between the range of potential scalars.
A more comprehensive economic analysis might also
consider measure interactions and analyze the impacts of
numerous building elements as a system. For example,
increasing the level of roof insulation can lead to the
ability to downsize the cooling equipment. Selection of
a gas chiller could potentially allow the downsizing of
the electric service drop and load center for the building.
The analysis in this Guideline did not include such
synergies because of the complication of identifying
situations in which the additional savings could be
expected.
Appendix section A described the base case buildings
that were used in the analysis for these Guidelines. A
more comprehensive, targeted analysis would begin with
an examination of these building descriptions to
determine whether they are representative of the location
of interest. The building design can greatly increase or
decrease the cost effectiveness of various measures. For
example, a base case office building with effective
daylighting, reducing internal gains from lighting
systems, and high performance glazing on the south, east
and west, may have a small enough cooling load that
high efficiency equipment will be less cost effective.
1
For a more in-depth description, see Plant Engineers and Managers
Guide to Energy Conservation, by Albert Thumann, Fairmont
Press, Lilburn, GA 1989.

CHAPTER 7: APPENDIX
Scalars for 8 year period Scalars for 15 year period Scalars for 30 year period
Escalation rates Escalation rates Escalation rates
Discount
0% 2% 4% 6% 0% 2% 4% 6% 0% 2% 4% 6%
Rates
0% 8.0 8.8 9.6 10.5 15.0 17.6 20.8 24.7 30.0 41.4 58.3 83.8
3% 7.0 7.7 8.4 9.1 11.9 13.9 16.2 19.0 19.6 25.9 35.0 48.3
5% 6.5 7.0 7.7 8.4 10.4 12.0 13.9 16.2 15.4 19.8 26.0 34.9
7% 6.0 6.5 7.1 7.7 9.1 10.4 12.0 13.9 12.4 15.5 19.9 26.0
9% 5.5 6.0 6.5 7.1 8.1 9.2 10.5 12.1 10.3 12.6 15.7 20.0
11% 5.1 5.6 6.0 6.5 7.2 8.1 9.3 10.6 8.7 10.4 12.8 15.9
13% 4.8 5.2 5.6 6.1 6.5 7.3 8.2 9.3 7.5 8.8 10.6 12.9
15% 4.5 4.8 5.2 5.6 5.8 6.5 7.4 8.3 6.6 7.6 9.0 10.8
Figure 38 - Range of Typical Scalars
INPUT IF INPUT: THEN SCALAR TENDS TO:
Measure Life Increases Increase
Discount Rate Increases Decrease
Energy Cost Escalation Rate Increases Increase
Maintenance Escalation Rate Increases Decrease
Inflation Rate Increases Decrease
Mortgage Interest Rate Increases Decrease
Tax Advantage Increases Increase
Figure 39 - Variable Effects on Scalar

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Guideline

New Buildings Institute

This Advanced Design Guideline was developed by the New

This project was managed by the New Buildings Institute,

Subcontractors on this project were:

Heschong Mahone Group:

Eskinder Berhanu Associates

The Expert Advisory Panel, which reviewed and advised the

New Buildings Institute

II SOCALGAS/NBI ADVANCED DESIGN GUIDELINES

CHAPTER 1: PREFACE .................................................. 1

GAS BOILERS GUIDELINE III

IV SOCALGAS/NBI ADVANCED DESIGN GUIDELINES

These Guidelines have been developed by the New

GAS BOILERS GUIDELINE 1

Pressure Vessel Code1. There are also many sub-

A. Classifications Construction Materials

GAS BOILERS GUIDELINE 3

The combustion efficiency describes how well the boiler

4 SOCALGAS/NBI ADVANCED DESIGN GUIDELINES

More efficient than conventional boilers,

GAS BOILERS GUIDELINE 5

The cooling and momentum of the combustion gases

INLET WATER TEMPERATURE

Figure 2 - Boiler Efficiency Ranges - Condensing and

Pulse Combustion Boiler D. Improved Features and Designs

6 SOCALGAS/NBI ADVANCED DESIGN GUIDELINES

GAS BOILERS GUIDELINE 7

Air - Fuel Mixing Other Boiler Room Issues

8 SOCALGAS/NBI ADVANCED DESIGN GUIDELINES

A. Standards Equipment Minimum

GAS BOILERS GUIDELINE 9

Boiler Size Combustion Market

Source: Hewett, et al, 1996 ACEE Summer Study

Figure 4 - Market Share of Selected Technologies

10 SOCALGAS/NBI ADVANCED DESIGN GUIDELINES

A. Overview B. Annual Energy Cost Savings

GAS BOILERS GUIDELINE 11

12 SOCALGAS/NBI ADVANCED DESIGN GUIDELINES

marginal cost accounts for varying gas rates that may

GAS BOILERS GUIDELINE 13

The cases shown on this graph can also be used to

GAS BOILERS GUIDELINE 15

For each of the SIR graphs, particular scalar and

16 SOCALGAS/NBI ADVANCED DESIGN GUIDELINES

B. Annual Energy Cost Savings

84% Efficient Boilers

GAS BOILERS GUIDELINE 17

18 SOCALGAS/NBI ADVANCED DESIGN GUIDELINES

GAS BOILERS GUIDELINE 19

20 SOCALGAS/NBI ADVANCED DESIGN GUIDELINES

GAS BOILERS GUIDELINE 21

22 SOCALGAS/NBI ADVANCED DESIGN GUIDELINES

Marginal Cost of Gas ($/therm s)

GAS BOILERS GUIDELINE 23

24 SOCALGAS/NBI ADVANCED DESIGN GUIDELINES

89% Efficient, Condensing Boilers

Marginal Cost of Gas ($/therms)

GAS BOILERS GUIDELINE 25

26 SOCALGAS/NBI ADVANCED DESIGN GUIDELINES

GAS BOILERS GUIDELINE 27

28 SOCALGAS/NBI ADVANCED DESIGN GUIDELINES

GAS BOILERS GUIDELINE 29

30 SOCALGAS/NBI ADVANCED DESIGN GUIDELINES