Intheworks_EISA 2012

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    w w w . d a l l a s m a r k e t c e n t e r . c o m14 L I G H T S o u r c e s W i n t e r 1 1

    y IN THE works

    light e

    T

    he lighting industry is already experiencing the greatest changes in residential light-

    ing in more than 130 years. But one more major change will take place in 2012,

    when the ederal energy bill known as the Energy Independence Security Act o

    2007 (EISA), goes into eect to phase out inefcient lighting. The act builds on the

    oundation set by the Energy Policy Act o 2005 (EPAct), which created a compre-

    hensive energy strategy or the 21st century. EISA is a signifcant step in the right direction orreducing the nations dependence on oil, thereby increasing energy security and making the

    country cleaner or generations to come.

    These lighting standards will provide U.S. consumers and businesses with massive sav-

    ings, says Noah Horowitz, senior scientist at the Natural Resources Deense Council (NRDC),

    one o the principal architects or the 2007 bill. Once all sockets contain an energy efcient

    bulb, our nation will save roughly $13 billion a year in the orm o lower electric bills and we

    will eliminate the need or 30 large (500 MW) power plants. In addition, the standards will

    prevent the emission o 100 million tons per year o carbon dioxide, the main heat-trapping

    pollutant responsible or global warming.

    The legislaTion

    So what exactly does the legislation say about incandescent lights? As o 2012, general servicelight bulbs must be up to 30 percent more energy efcient than current standards require.

    Contrary to media reports and water-cooler speculation, it will not ban the sale o incan-

    descent lamps, says Chris Calwell, senior research ellow and ounder o Ecos Consulting.

    Instead, it requires many types o incandescent lamps to consume less power.

    Some technologies already meet the requirements, like Compact Fluorescent Lamps (CFLs)

    and Light Emitting Diodes (LEDs), but, according to Calwell, incandescent products can also

    comply through various strategies:

    Signicantly improving efciency: Using halogen ll gas and advanced heat-reecting

    coatings to keep light output the same while reducing power consumption

    Reducing light output: The law allows lamps that are signicantly dimmer than todays

    Understand the new requirements or efcient lighting.

    kit Alpet

    EISA2012

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    D A L L A S M A R K E T C E N T E R 15

    IN THE works x

    incandescent products to be sold; these products will be cheap, but

    many customers will fnd they arent bright enough

    Improving efciency a little and reducing light output moderately:

    Many o these products have already been introduced; they are an

    adequate (but not optimal) option or consumers

    When one retailer, Bulbrite, frst noticed the gap in the market or

    energy-efcient lamps, they decided to do something about it. We

    launched an EISA-compliant halogen alternative in January, called the

    Eco-Friendly Halogen A19, says Cathy Choi, president o Bulbrite, who

    reers to halogen as the orgotten child o light source technology that

    is coming back or a revival.

    Were trying to let people know that there are a lot o other energy

    efcient, compliant options out there, and it doesnt have to be CFL.

    Essentially, i you buy the rost version o our halogen lamp, you

    wouldnt know it looked dierent. Its just that the way it produces

    light is dierent than the standard incandescent household bulb, andit is compliant with 2012.

    She says that people who are interested in keeping that same warm

    light and ull dimming options can choose the halogen, but they also

    have a more energy efcient option like CFLs or LEDs.

    The impacTObviously, this legislation will have serious ramifcations or lighting

    retailers when it takes eect in 2012. The biggest change is that they

    will no longer be able to stock the conventional incandescent light

    bulbs known today (40, 60, 75, 100 and 150 W).

    The standard has two tiers, explains Horowitz. The frst tier

    requires lamps to use roughly 30 percent less power than todays ine-fcient bulbs and begins to go into eect on Jan. 1, 2012. The regula-

    tions create lumen bins around todays conventional incandescent. In 2012, the brightest

    bulbs (equivalent to bulbs 100W and brighter) are covered, in 2013 the 75W equivalents, and

    in 2014 bulbs 60W and below are covered.

    The table below, provided by the NRDC, explains the details o the frst tier:

    U.s. Tier 1

    U.s. Tier 1 w

    rATEd LumENs MaxiMuM Wattage effective Date

    1490-2600 71 1/1/20121050-1489 53 1/1/2013

    750-1049 43 1/1/2014310-749 29 1/1/2014

    TodAys buLb after the stanDarD100 W 72 W75 W 53 W60 W 43 W40 W 29 W

    Note: All lamps must have: Minimum rated life of 1,000 hours CRI 80

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    w w w . d a l l a s m a r k e t c e n t e r . c o m16 L I G H T S o u r c e s W i n t e r 1 1

    y IN THE works

    edUcaTing consUmersWith noticeable conusion already occurring, once the bill goes into eect in 2012, it will

    become more important than ever to educate consumers about what this bill means or them

    and what it doesnt mean.

    Todays consumers are used to buying lighting based on the products power use, says

    Horowitz. They need instead to shit to buying a product based on the amount o light they

    provide. Rather than telling a roommate or spouse to pick up a 100W bulb, instead they

    should tell them to buy a 1600 lumen bulb. This transormation will take a while and we can

    expect a lot o conusion initially.

    Bulbrite is doing its part to help ease the initial

    conusion. The company launched a campaign to

    educate retailers and consumers about what the

    changes will mean and how they will impact sales

    and purchases. Since the changes are right around

    the corner, Bulbrite decide to start the conversa-

    tion early to help avoid mass conusion.Ater meeting with numerous conused retailers

    at the June market in Dallas, Choi realized how

    dramatic the need was. Bulbrite quickly launched

    a micro site within their Web site to break down

    what the legislation is and what replacements are

    available. They even included a countdown clock

    that tells retailers how many days let until 2012.

    Ater launching their Eco-Friendly Halogen A19,

    they realized consumers could use a little help

    making sense o this option, so they developed

    an educational display to accompany the new

    bulbs. [Consumers] think everyone will have tobuy CFLs, and thats not true, says Choi. We put

    together a tree display, a point o purchase display,

    and a consumer-riendly brochure so that show-

    rooms will be able to tell them whats going on by

    showcasing the compliant products and explaining

    to them the whole education process.

    I think whats happening now or the retailers

    is that the savvy ones are starting to realize that

    everyone is looking or that leg up or competitive advantage with this new legislation, and

    this is where lighting showrooms in particular can use and leverage what theyre already good

    at: service and expertise.

    geTTing prepared Although the change is still a ways out, wise retailers are already getting their inventory

    primed or the new market. Starting now, retailers need to revise their purchasing and stock-

    ing strategies, Horowitz says. He also recommends that in order to gain that competitive

    edge in this market, retailers should consider participating in consumer education campaigns

    through their advertising and in-store materials.

    Once the change hits, unprepared retailers could potentially be stuck with large amounts o

    returned merchandise. To prevent this, Calwell recommends retailers stop promoting dimmer

    lamps as equivalent to the 40/60/75/100W incandescent lights people purchase today and

    begin using Energy Stars current equivalence criteria in customer education.

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    D A L L A S M A R K E T C E N T E R 17

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