The Lights They are A’Changing: Early Results from EISA 2007

August 15, 2012

Scott DimetroskyKatie Parkinson

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Before We Begin…

• “EESA” or “IISA”?• Show of hands…

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Overview

• Background on EISA• Reactions to EISA

– Manufacturers– Retailers– Consumers

• What are we learning from these results?

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Background on EISA

• What EISA Is….– Requires general service lamps to be about

30% more efficient– Phase-in over 3 years

• 2012: 100w 72w• 2013: 75w 53w• 2014: 60w 43w

– Adopted earlier in California

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Misconception #1

• What EISA is NOT…• Misconception #1:

– EISA bans incandescents, requires CFLs• Reality:

– Law is technology neutral, does not require CFLs

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Misconception #2

• Misconception #2– Current incandescents are illegal

after January 1st of each phase-in year

• Reality:– Law pertains to manufacturing, not

sales– Retailers can sell through existing

stock

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Misconception #3

• Misconception #3– All light bulbs are included

• Reality:– Law includes a number of

exemptions, including three-way bulbs, candelabras, and appliance lights

– Reflectors have their own standards

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Misconception #4

• Misconception #4– Congress overturned EISA at the end of 2011

• Reality:– Only eliminated funds for enforcement– Law still stands

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Misconception #5

• EISA means the end of the EZ Bake Oven• Reality:

– EZ Bake is alive and well!

NBC News: Hasbro’s classic 50-year-old Easy-Bake oven is losing its light bulb in

its 11th re-design. The new, bigger, sleeker purple Easy-Bake Ultimate Oven

costs $49.99, up from $29.99

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Early Results Based on Recent Studies

Primary Study Sponsor & State Manufacturer Interviews

Retailer Interviews

Consumer Interviews

Telephone Mystery Shopping

NEAA, OR, WA, MT, ID (2009-10)

Consortium, MA (2010)Consortium, MA (2011-12)

PacifiCorp, WY (2011)PacifiCorp, WA (2011)PacifiCorp, ID (2011)PacifiCorp, CA (2011)

NYSERDA (2011)

Commonwealth Edison (2011)

Apex Analytics, CA (2012)

16 336 3,594 105

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Manufacturer Perspective

• Manufacturers are firmly behind the legislation

“NEMA remains committed to and supportive of the lighting standards…NEMA did not support the inclusion of this rider…American manufacturers have invested millions of dollars in transitioning to energy efficient lighting…Delay in enforcement undermines those investments…”

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Manufacturer Products

• Many EISA compliant bulbs already available

• Most use halogen technologies

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Manufacturer Products

• Bulbs cost more than legacy incandescents• 72w bulbs close to price of CFLs

Source: Apex Analytics February-March 2012 California Telephone Mystery Shopping (n=50 retailers that carry 72w bulbs)

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Retailer Awareness

• 2010 MA study: Only 48% of retail store managers aware of EISA

• 2011 PacifiCorp studies: 92% of store managers aware

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Retailer Plans

• Few plan to educate customers• Nearly one in four had received customer

complaints

Source: PacifiCorp Residential Lighting Program Evaluations

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Retailer Stocking

• Almost half of all CA stores contacted in early 2012 still reported having 100w bulbs

48% 44%

78% 74%

85%

25%

0%

14%

0%10%20%30%40%50%60%70%80%90%

100%

Perc

ent o

f Ret

ail S

tore

fron

ts

Source: Apex Analytics February-March 2012 California Telephone Mystery Shopping (n=98)

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Consumer Awareness• Consumer awareness appears to be

increasing• Highest in Wyoming

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Consumer Stockpiling• ComEd study:

– 45% of respondents likely to purchase extra 100w bulbs due to EISA

• NYSERDA: 3 of 5 manufacturers preparing for hoarding

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Manufacturer:“Anecdotally, I’d say one-third of customers know about EISA, and two-thirds have no idea. When I talk to consumers, people that know about it tell me they are buying more than normal, and storing extra quantities in their pantries. We have one last big hurrah where the demand for incandescents will accelerate and consumers will rush from store to store until they find them”

Consumer Stockpiling

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The Future of Lighting Purchases?

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Summary and Conclusions

• Manufacturers – Committed to EISA– Introducing new products

• Retailers– Becoming more and more aware– Few have plans to educate customers– High degree of noncompliant bulbs

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Summary and Conclusions

• Consumers– Many are still “in the dark”– Indications that as consumers learn there is a

negative reaction

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Recommendations

• URGENT NEED FOR MORE CONSUMER EDUCATION– Facts about the law– Product options– Role for utility programs

• Risk if we don’t educate consumers– “Spin” by those opposed to EISA– Misconceptions can influence public opinion

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Mr. Poe of Texas

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Contact:Scott DimetroskyApex Analytics1525 Spruce Street, Suite 200Boulder, CO 80302(303)975-6054scottd@apexanalyticsllc.com

Questions?