Recycled/Recyclable
Printed on paper that contains
at least 50% recycled fiber
Environmental Protection
Agency
The Climate i
Voluntary Progi
Greenhouse Gas
Sauce
-------
OFFICE OF AIR AND RADIATION
THE CLIMATE is RIGHT FOR ACTION
VOLUNTARY PROGRAMS TO REDUCE GREENHOUSE GAS EMISSIONS
As part of" its ongoing effort to prevent air pollution, the United States Environmental
Protection Agency is expanding its voluntary programs. These programs bring significant
benefits in reduction of overall air pollution—and particularly in controlling greenhouse
gas emissions. This plan describes the voluntary air pollution prevention programs already
underway and provides a blueprint for future action.
In reviewing this blueprint for action, it is important to remember four key items:
l.Air Pollution Prevention: EPA's programs described here reduce emissions of green-
house gases such as carbon dioxide (CO2) and methane (CH4), and they also signifi-
cantly reduce other types of air pollution, including sulfur dioxide (SO9)—a primary
component of acid rain, and nitrogen oxides (NOX)—a contributor to both acid rain
and smog.
2. Sound Economics: EPA's voluntary greenhouse programs make sense independent of
environmental concerns. The actions described here are good ideas on economic
grounds alone. Energy efficiency is indeed "no regrets."
3. Multiple Efforts: The voluntary efforts described here are but one component of the
Federal government's activity in reducing the risk of climate change. The Department
of Energy, Department of Agriculture, and other U.S. agencies have programs under-
way in this important effort.
4. Public/Private Partnerships: Most importantly, the success of EPA's voluntary programs
depends upon widespread participation by U.S. companies and citizens. Join EPA in
these programs to prevent pollution—The Climate Is Right!
"These program are the cornerstone to limiting greenhouse gas emissions—pairing
environmental protection and economic growth."
William K. Reillv, EPA Administrator
-------
CLIMATE CHANGE IN KIO
At the United Nations Conference on Environment and
Development (UNCED) in Rio de Janeiro, Brazil, the U.S.
recently joined with 153 nations in signing the United Nations
Framework Convention on Climate Change, which calls upon each
signatory to mitigate climate change by limiting its emissions of
greenhouse gases.
The U.S. takes this commitment seriously—in fact, Senate
ratification of the climate treaty on October 7th makes the U.S.
the first industrialized nation to become a signatory. And the
EPA is already translating this commitment into concrete action
and measurable results. EPA's greenhouse programs pair the
"green" of environmentalism with the "green" of profit to com-
bat air pollution and stimulate economic growth, through the
new environmentalism of voluntary corporate action.
EPA's voluntary greenhouse programs consist of a series of
initiatives modeled on successful programs already underway,
such as Green Lights and the utility-sponsored "Golden
Carrot™" Super-Efficient Refrigerator Program, which EPA
helped develop.
EPA envisions a rapid roll-out of these new programs.
In fact, in the days following Rio EPA launched its next
effort—Energy Star Computers—with leading manufacturers
who represent ~35 percent of the domestic market for
desktop computers.
EPA's voluntary greenhouse programs are highlighted in U.S.
Views on Global Climate Change, published by the Department of
State prior to Rio. Also featured prominently in U.S. Views are: full
implementation of the National Energy Strategy, which defines a
new, more efficient energy path for the United States; the new
transportation law which will greatly improve the efficiency of
moving people and goods by autos, rapid transit, and other
means; and the world's most stringent clean air legislation, which
will also contribute to greenhouse emissions reduction. The strate-
gy also emphasizes the role of cooperative action—technical and
financial—with developing countries and countries with
economies in transition. In Rio the U.S. challenged all countries
to develop national action plans and pledged to issue the next
publication of the U.S. national action strategy for climate change
in January 1993. This U.S. strategy will include EPA's voluntary
programs and other efforts.
GREENHOUSE
INITIATIVES
TIMELINE
Historical Milestones
January 1991:
Launched Green Lights
May 1991:
First Green Lights State
Government Partners
(California and Maryland)
September 1991:
Consortium for Energy
Efficiency (GEE) established
and incorporated
January 1992:
Green Lights Partner commit-
ments exceed 2 billion fta of
facility space
-------
UNITED NATIONS FRAMEWORK CONVENTION ON CLIMATE CHANGE
OBJECTIVE
The ultimate objective of this Convention and any related legal
instruments that the Conference of the Parties may adopt is to
achieve, in accordance with the relevant provisions of the
Convention, stabilization of greenhouse gas concentrations in
the atmosphere at a level that would prevent dangerous
anthropogenic interference with the climate system. Such a
level should be achieved within a time frame sufficient to
allow ecosystems to adapt naturally to climate change, to
ensure that food production is not threatened and to enable
economic development to proceed in a sustainable manner.
ARTICLE 4: COMMITMENTS
2. (a)Each of these Parties shall adopt national policies and
take corresponding measures on the mitigation of climate change,
by limiting its anthropogenic emissions of greenhouse gases and
protecting and enhancing its greenhouse gas sinks and reservoirs.
These policies and measures will demonstrate that developed coun-
tries are taking the lead in modifying longer-term trends in
anthropogenic emissions consistent with the objective of the
Convention, recognizing that the return by the end of the pre-
sent decade to earlier levels of anthropogenic emissions of car-
bon dioxide and other greenhouse gases not controlled by the
Montreal Protocol would contribute to such modification...
(b)In order to promote progress to this end, each of these
Parties shall communicate, within six months of the entry into
force of the Convention for it and periodically thereafter, and
in accordance with Article 12, detailed information on its poli-
cies and measures referred to in subparagraph (a) above, as
well as on its resulting projected anthropogenic emissions by
sources and removals by sinks of greenhouse gases not con-
trolled by the Montreal Protocol for the period referred to in
subparagraph (a), with the aim of returning individually or
jointly to their 1990 levels of these anthropogenic emissions
of carbon dioxide and other greenhouse gases...
February 1992:
Chlorofluorocarbon (CFC)-
free refrigerator with
improved energy efficiency
developed
March 1992:
EPA/Chinese non-CFC insu-
lated refrigerator prototypes
developed
April 1992:
U.S. Views on Global Climate
Change published by U.S.
State Department
June 1992:
Earth Summit in Rio: United
Nations Framework Convention
on Climate Change signed
June 1992:
Energy Star Computers kick-
off—35% of market share
participating on 1st day!
-------
UFA'S VOLUNTARY GREENHOUSE PROGRAMS-
A NEW PERSPECTIVE
While scientific uncertainty over the nature of climate change
remains, the public is raising other important questions: "What can
we do about climate change?" and "How much will it cost?"
The success of programs implemented by EPA suggests not
only that significant reductions of greenhouse gases are achiev-
able at low cost—but that they can be profitable! EPA's voluntary
greenhouse programs seek to strategically enhance the market.
These programs provide mechanisms for improving energy effi-
ciency, which leads to reduced fossil fuel use and lower carbon
dioxide emissions, as well as capturing and using methane, a
powerful greenhouse gas.
This document describes EPA's voluntary greenhouse pro-
grams for industry, state and local governments, and others with-
in the energy and environmental community. The early assis-
tance and involvement of these organizations is essential to the
development and continuing success of EPA's greenhouse pro-
grams. Public/private partnerships that increase the efficiency
with which we use our resources can reduce greenhouse gas
emissions and other air pollution, save consumers money, and
increase the competitiveness of our businesses.
VOLIWTARY GREEMIOUSE PROGRAMS
EPA envisions a rapid rollout of its voluntary greenhouse pro-
grams, as illustrated by the timeline beginning on the previous page.
Other events supporting the voluntary efforts are included in the
timeline as well.
Green Lights
Corporate Purchasing
Energy Star
JBniL Advisory C
ommittee
/ / Regulatory/
Legal Support
"Golden Carrot™"
Consortium for
Energy Efficiency
New Technology
Reports
X Mass Purchases
Environmental
Best Practices
International
Cooperation
Dates prior to July 1992 are historical; those following the fall of 1992 are
subject to significant uncertainty and are included to provide a template
for "EPA" s anticipated actions.
June 1992:
EPA Greenhouse Programs
Advisory Sub-Committee
selection begins
June 1992:
EPA testifies in Georgia hear-
ing on utility regulatory
reform
July 1992:
Utilities commit ~$30 million
in "Golden Carrot™"
Refrigerator incentives,
RFP issued
July 1992:
Brief Ohio Public Utility
Commission
July 1992:
U.S.-Russian natural gas meet-
ing in Moscow
-------
KEY ELEMENTS OF EPA's VOLUNTARY GREEN PROGRAMS
1) Encourage corporate-wide purchasing frameworks so that energy
efficiency and full life cycle cost considerations
are incorporated up front. This helps to over-
come internal organizational barriers (for exam-
ple, departments responsible for purchasing equipment would
consider energy costs in their decisions—even when their
department does not pay the electricity bills).
"It takes not much imagination to see that environmental
concern is not just a fad, but a serious trend. It will
shape the future of our business, and to learn to
understand it and shape it is really in our interest."
Stephan Schmidheiny
Business Council for Sustainable Development
2) Identify energy-efficient products so that consumers can make
educated purchasing decisions. Unfortunately, the
lack of good information makes it difficult to
choose the most cost-effective products.
3) Promote mass purchases of energy-efficient technologies in order
to improve economies of scale and reduce prices.
Once organizations begin to purchase efficient tech-
nologies, prices for these products often fall below
their less energy-efficient alternatives.
4) Encourage industry to commercialize more resource-efficient
technologies by demonstrating that these products
will sell. Clear "market-pull" signals to manufacturers
can help get products off the drawing board and onto
store shelves.
August 1992:
Green Lights: over 600
participants
September 1992:
NBC program on Green
Lights airs
September 1992:
EPA develops initiative with
India for super-efficient, non-
CFC refrigerators
September 1992:
EPA/Chinese development
of non-CFC Lorenz Cycle
refrigerators
September 1992:
New super compressor
technology prototype for
home refrigerators
-------
5) Promote sensible utility regulation and legal frameworks to
• encourage cost-effective investments in energy con-
servation and methane-recovery programs. Too
often, regulatory barriers prevent potential efficiency
investments and increase capital requirements.
Ensuring that companies and consumers can indeed profit from
wise use of resources—by improving energy efficiency or captur-
ing and using methane for energy—leads to a more productive
and less polluting economy.
"Innovative green programs such as Green Lights,
Energy Star Computers, and the 'Golden Carrot™'
Refrigerator Program are critical to achieving national
goals for reducing greenhouse gas emissions.
Eamomicatty sound programs like these are absolutely
necessary for achieving the environmental goals
of the 1990s."
Rafe Pomerance, Senior Associate
World Resources Institute
6) Create Environmental Best Practices agreements to integrate
environmental considerations into the design and
planning of products and services. Placing environ-
mental concerns in a primary role can lead to well-
designed products, cost-effective manufacturing processes,
and a wiser use of scarce natural resources (for example, cap-
turing leaking methane from a variety of sources and using it
for energy).
7) Expand international markets for resource-efficient U.S.
technologies. EPA, the Department of Energy
(DOE) and the Department of Commerce are all
working to promote resource- and energy-efficient U.S. tech-
nologies worldwide to create additional business opportunities
for U.S. industry, while helping protect the global environment.
EPA's voluntary greenhouse programs often create such oppor-
tunities, many of which are described herein.
September 1992:
EPA manual for chiller refrig-
erant containment, conserva-
tion, and conversion for
developing countries
October 1992:
EPA/DOE Memorandum of
Understanding (MOU)
finalized
._A
October 1992:
Green Buildings—Variable
Speed Drives (VSDs) (air han-
dlers) corporate pilot pro-
gram launched
October 1992:
Energy Star Printers MOU
released
October 1992:
EPA promulgates incentive
regulations for energy
efficiency
-------
EPA VOLUNTARY GREEN PROGRAMS EXPLAINED
1. CORPORATE PURCHASING STRATEGIES
Flagship Program: Green Lights
EPA's Green Lights Program is changing the way that compa-
nies light their offices and factories across the United States.
Lighting accounts for over 20 percent of total U.S. electricity
consumption and was responsible for 120 million metric tons of
carbon emissions in 1990. Available technology can reduce the
electricity used for lighting 50-70 percent. These efficient tech-
nologies also provide excellent investment opportunities—in
fact, a typical lighting upgrade yields an internal rate of return of
20-30 percent—a payback of about 3-4 years.
Green Lights provides companies and governments with a
framework for seizing these efficiency opportunities. Through
Green Lights, organizations make a corporate-wide decision to
invest in energy-efficient lighting, thus giving individual build-
GREEN LIGHTS UPGRADES SURPASS
ESTIMATES OF TECHNICAL POTENTIAL
When EPA launched Green Lights in early 1991, published
engineering calculations estimated the largest possible light-
ing electricity savings to be 25-54 percent. Many of the first
lighting upgrades completed under Green Lights exceed
these estimates of "maximum technical potential."
The Gillette Company
Santa Monica, GA
50,000 ft2
61%
Energy Savings
37% IRR*
Lavergne, TN
125,000ft2
54%
Energy Savings
72% IRR
Jantzen
Vancouver, WA
45,000 ft2
71%
Energy Savings
36% IRR
*internal rate of return (IRR)
Source: Green Lights Upgrade Reports.
October 1992:
Green Lights has over 3 bil-
lion ft2 committed
November 1992:
GEE executive director hired
November 1992:
Appalachian Coalbed
Methane Environmental and
Economic Benefits Study
released
November 1992:
EPA publishes Conservation
Verification Protocol
November 1992:
EPA report on the economic
and environmental benefits
of natural gas generation
released
-------
ing managers nationwide a mandate to pursue the optimal
lighting designs.
By signing a partnership agreement with EPA, Green Lights
participants commit to survey and upgrade 90 percent of all
domestic facilities with the most energy-efficient lighting systems
that are profitable, within 5 years of signing the agreement.
As of September 30, 1992, Green Lights participants num-
ber 651, including 296 corporate Partners, 24 state and local
government Partners, 42 utilities, 195 lighting manufacturers,
55 lighting management companies, and 40 Endorsers. These
organizations have committed over 2.8 billion square feet of
facility space to the program, over 3 percent of the national
total—far exceeding the leasable office space in the metropoli-
tan areas of New York City, Los Angeles, Chicago, San
Francisco, Washington DC, Philadelphia, and Dallas.
GREEN LIGHTS TODAY & TOMORROW
Estimates include the Green Lights Program as well as other promising
DOE and utility programs to promote energy-efficient lighting.
Green Lights Today: 1992
2.8 billion
square feet committed
Expected From These
Commi tments—
Green Lights Tomorrow: 2000
24-60 billion
square feet committed
Expected From These
Commitments—
12.4 BkWh/yr Energy Savings 104 - 226 BkWh/yr Energy Savings
2.3 MMT Avoided
Carbon Emissions
67,500 Metric Tons
Avoided SO2 Emissions*
28,700 Metric Tons
Avoided NOX Emissions
$870 Million Reduced
Electricity Bills**
22 - 55 MMT Avoided
Carbon Emissions
1.3 MMT
Avoided SO2 Emissions*
600,000 Metric Tons
Avoided NOX Emissions
$7 -15.8 Billion Reduced
Electricity Bills**
Source: EPA and U.S. Views on Global Climate Change, calculated using the follow-
ing emissions factors: 1992 Carbon = .186 MMT/BkWh; 2000 Carbon = .243
MMT/BkWh; SO2 = 5.8g/kWh; NOX = 2.5g/kWh.
* As a result of the Clean Air Act, these reductions may lead to SO2 allowance cred-
its, worth an estimated $300-10007ton, rather than actual emissions reductions.
** At 7.0 cents/kWh.
November 1992:
National Association
of Regulatory Utility
Commissioners endorse-
ment of EPA Energy Star
Computers program
November 1992:
Issue final rule reducing land-
fill methane emissions
November 1992:
Green Lights Partners adver-
tising co-op places ads in
major business magazines
November 1992:
Agreement for Energy Star
Fax Boards
November 1992:
Launch outreach program on
methane energy recovery
from landfills to industry/
states/municipalities/utilities
-------
Future Corporate Purchasing Programs
Following the flagship Green Lights Program, EPA is plan-
ning the introduction of similar programs, targeting the fol-
lowing technical opportunities:
Industrial Motors
Buildings Technologies
Commercial Cooking
Better Refrigerants
Industrial Electrolytics
As technologies evolve and market conditions change, EPA will modify
and expand this list.
EPA helps to get the Green Lights job done with technical
support from start to finish, including: state-of-the-art software
to assist in upgrade decision-making; information on financing
energy-efficient lighting through a large national data base;
"consumer reports" of lighting products through the National
Lighting Product Information Program; and networking
through lighting manufacturers, lighting management compa-
nies, and utilities. EPA also provides opportunities for public
recognition, including public-service advertisements, news arti-
cles, marketing materials, broadcast specials, and videotapes.
2. PRODUCT IDENTIFICATION STRATEGIES
Flagship Program: Energy Star Computers
The EPA Energy Star Computer program is helping to cre-
ate a market for energy-efficient desktop computers, by provid-
ing a clear market incentive for manufacturers to improve the
'EPA should be amgratulatedforits
creative and inspired solution."
Info World
November 1992:
Mobile Methane Monitor
transferred to Russia
November 1992:
Kick-off Federal Green Lights
Program
December 1992:
EPA Residential Heating and
Cooling Report released
December 1992:
Launch voluntary program
on methane emission reduc-
tions from natural gas systems
December 1992:
Initiate Animal Waste
Demonstration Project
-------
efficiency of their products and an effective mechanism for
consumers to make informed purchasing decisions.
Currently, computer systems consume 5 percent of all com-
mercial electricity—and this number could grow to 10 percent
by the year 2000. Research suggests that 30-40 percent of all
computers are left on at night and over weekends, and that
even during the day computers are active less than 20 percent
of the time. This provides a clear opportunity for dramatic
reductions in energy use, costs, and greenhouse gas emissions.
Manufacturers who sign the EPA Energy Star Computers
program agreement will introduce personal computers that
automatically "power-down" when they are not being used. This
feature was pioneered for use in portable applications, and
could cut the energy used by personal computers in half—at
no additional cost!
The EPA Energy Star logo will be used to identify machines
capable of "powering-down," so that consumers and businesses
know that they can save money and cut air pollution when they
purchase this equipment.
The EPA Energy Star Computers program was developed
with industry leaders and launched June 17, 1992. Current partic-
ipants in Energy Star Computers make 40 percent of all personal
computers and workstations sold in the U.S., and EPA is expand-
ing the program to include other manufacturers. As of
September 1992, participating manufacturers include:
• Acer America
• Apple Computer
• Compaq Computer
• Digital Equipment
• EMPaC International
• Hewlett-Packard
• Hyundai Electronics America
•IBM
•NCR
• Silicon Graphics
• Smith Corona
• Zenith Data Systems
December 1992:
Green Lights Residential
Program announced
December 1992:
GEE Board of Trustees
instated
December 1992:
1,000 Green Lights upgrades
underway
December 1992:
1992 EPA/Sweden discuss
incorporation of Energy Star
Computers guidelines into
Swedish strategy
December 1992:
"Golden Carrot™"
Refrigerator finalists
announced
-------
Future Energy Star Product Identification
Programs
Following the flagship Energy Star Computers program, EPA is
planning the introduction of similar programs in conjunction
with the DOE appliance standards program, targeting the fol-
lowing technical opportunities:
Low-flow Showerheads
Residential Room Air Conditioning
Residential Cooking Equipment
Residential Space Conditioning and Shell Improvements
Miscellaneous Residential and Commercial End-Uses
As technologies evolve and market conditions change, EPA will modify and
expand this list.
3. MASS PURCHASING STRATEGIES
Flagship Program: Green Buildings—Variable Speed Drives
EPA's Green Buildings initiative will stimulate the market
for highly efficient heating, ventilation, air conditioning
(HVAC), and water heating technologies. The program's first
technology target will be variable speed motor drives for ven-
tilation systems.
Every year, roughly 50,000 air handling motor drives are
purchased to move air through buildings and factories. Of
these, less than 20 percent have fans capable of operating at
variable speeds—that is, adjusting their power based on the
needs of the building occupants at any particular time or
~T~~J^~ ^
- •!Bi*a*\
SMSS**
Winter 1993:
Voluntary Green Programs
Advisory Sub-Committee
meets
Winter 1993:
Green Buildings - Ventilation
launched
Winter 1993:
Green Industrial Motors
launched
Winter 1993:
Energy Star Low-flow
Showerhead Program
launched
Winter 1993:
Coalbed methane recovery
and use case studies
-------
THE EXPLODING MARKET FOR ENERGY
EFFICIENCY
Energy efficiency is BIG business. Sales for efficient products
targeted by these four flagship greenhouse programs alone are
expected to total $53 billion by the end of the decade—compa-
rable to the entire domestic paper producing industry.
Sales of Efficient Products ($ million)
Historical Projected
1985 1990 19
Lighting1
Personal Computers
Variable Speed
Motor Drives
for Ventilation
Refrigerators2
* Negligible
1 Includes only compact fluorescents, T-8 lamps, and electronic ballasts.
2 Efficient refrigerators are defined to be < 700 kWh/yr, the level of the
1993 DOE standard.
Source: EPA estimates derived from Electric Power Research Institute,
International Data Corporation, manufacturers, and Bureau of the Census data.
1985
*
*
*
*
1990
340
3,400
50
*
1995
2,000
25,000
115
4,200
2000
10,000
37,000
400
5,200
any particular weather circumstance. Most fans either oper-
ate continuously at one speed regardless of building needs
or use less efficient mechanical means to control air flow.
Furthermore, fans are usually oversized in order to meet
demands under the most extreme conditions (i.e. the
hottest hour of the hottest day), with an additional margin
of safety.
Variable speed drives (VSDs) have been demonstrated in
the HVAC marketplace for over 10 years and are capable of
reducing electricity consumed for air handling by 40 percent
or more. Why is VSD market share so small? According to
manufacturers, the answer is simple: first cost. Even though
the payback is only 1-3 years, most consumers have been
unwilling to make the initially higher investment for the more
efficient—and money saving—products.
Winter 1993:
Identify Russian natural gas
pilot projects
Winter 1993:
Clean Air Act (CAA)
Amendment Utility Energy
Savings Evaluation Project
begins
Winter 1993:
"Golden Carrot™" Heat
Pump launched
Winter 1993:
Green Lease MOU released
Winter 1993:
General Services
Administration procurement
guidelines for Energy Star
Computer products
11
-------
Through a mass purchase, however, it is possible to reduce
the risk to manufacturers to invest more heavily in VSD produc-
tion. A group buy will signal that VSDs are no longer a "niche
product"—that it is time to gear up to larger product lines in
order to meet a large and growing demand. This drives down
prices—in fact, it is reasonable to believe that large markets
enhanced by EPA's Green Buildings program and other utility
rebate initiatives will make the first cost of the most efficient
products comparable to the first cost of the least efficient ones.
Future Mass Purchasing Programs
Following the flagship VSD mass purchase, EPA is planning
the introduction of similar programs, targeting the following
technical opportunities:
Green Buildings Technologies
Solar Thermal Water Heaters
Amorphous Core Transformers
As technologies evolve and market conditions change, EPA will modify and
expand this list.
4. STRATEGIES TO ENCOURAGE
COMMERCIALIZATION OF RESOURCE-
EFFICIENT TECHNOLOGIES
Flagship Program: "Golden Carrot™" Super-Efficient
Refrigerator Program
Appliance manufacturers often report that it is technically
possible to produce more energy-efficient products. From a
business standpoint, however, investing in this production has
often appeared unwise, since the most efficient products cur-
rently on store shelves are not purchased in large quantities.
Why invest in the next generation?
The "Golden Carrot™" is why. By aggregating a large pool
of appliance rebate money, utilities are giving appliance manu-
facturers a financial incentive—the most powerful market sig-
nal they can send—to make the most energy-efficient appli-
ances possible.
The flagship "Golden Carrot™" appliance is the refrigera-
tor. Refrigerators consume 20 percent of all residential electric-
Winter 1993:
Launch commercial rooftop
air conditioning "Golden
Carrot™" initiative
Winter 1993:
Launch Animal Waste
Outreach Program to
states/livestock producers/
rural electric coops
Spring 1993:
VSD for air handlers
group buy
Amorphous core transformer
group buy
Spring 1993:
Launch outreach program on
"Nega-allowances"
-------
'This utility consortium deserves U^i praise for an initia-
tive that is pro-energy efficiency, pro-environment, and pro-
economy. . .It will provide utilities with a low-cost conservation
option to help meet growth in electricity demand. It will
benefit industry by enhancing the market for innovative
technologies and increasing American competitiveness."
William K. Reilly, EPA Administrator, in response to the public
announcement of the Super-Efficient Refrigerator Program
ity. On average, refrigerators consume ~1,200 kilowatt hours
per year (kWh/yr) of electricity. The best widely-available
model on the market now uses ~800 kWh/yr, and the 1993
DOE refrigerator performance standard is ~700 kWh/yr. The
"Golden Carrot™" Super-Efficient Refrigerator Program is
focusing manufacturer research and development toward ener-
gy efficiency in a manner never before seen for refrigerators,
and will lead to the introduction of units 25-50 percent more
energy-efficient than the 1993 DOE performance standards.
Under the program, which EPA helped develop with utilities
and others, utilities have pooled almost $30 million in rebate
incentives to the refrigerator manufacturer that can produce the
superior product. The manufacturer that can build the largest
number of the most efficient, chlorofluorocarbon (CFC)-free
refrigerators the quickest and cheapest wins the contract. The
environmentally superior product will be available to consumers
at a utility-subsidized price beginning in 1994 or 1995. The
"Golden Carrot™" Super-Efficient Refrigerator Program will ulti-
mately save consumers $240-480 million in annual electricity pay-
ments. This translates into annual electric bill savings of 10 per-
cent to 35 percent for an average household.
Utilities usually create individual, uncoordinated incentive
programs with unpredictable life spans. The "Golden Carrot™"
coordinates and aggregates utility incentives in a long-term
strategy that allows manufacturers to plan ahead. The result
is a more rational investment strategy than before, that leads to
Spring 1993:
"Golden Carrot™"
Refrigerator prototypes
available
Spring 1993:
Launch key state programs in
coal mine methane
recovery
Summer 1993:
Debut of Energy Star logo on
computer equipment
Summer 1993:
"Golden Carrot™"
Refrigerator winning manu-
facturer announced
Summer 1993:
Energy Star logo available for
windows, insulation, and
other building products
13
-------
more efficient products at a lower price than would otherwise
be the case. Ultimately this translates into healthier corporate
bottom lines, lower consumer costs, and significantly reduced
carbon dioxide emissions and other air pollution from electric-
ity generation.
Future Programs to Encourage
Commercialization of Resource-Efficient
Technobgies
The Consortium for Energy Efficiency (GEE) has been estab-
lished by utilities, EPA, and several environmental groups to
roll out future "Golden Carrot™" programs for other promis-
ing technologies. EPA and utility members are advising GEE
staff in new program areas, including:
Advanced Heat Pumps
Residential Central Air Conditioning
Clothes Washers
Clothes Dryers
As technologies evolve and market conditions change, EPA and CEE will
modify and expand this list.
5. REGULATORY AM) LEGAL
SUPPORT STRATEGIES
Flagship Program: Utility Reform
For too long, utility regulation has encouraged investments in
power plants and discouraged investment in efficiency. In fact,
utilities and their stockholders have lost money when they con-
serve electricity. At the same time, ratepayers have been con-
cerned about whether real savings are actually occurring. The
result has been an inefficient mix of resources, inflated costs, and
unwarranted air pollution.
On the other hand, where utility regulations allow it, utilities
often find that it is more cost-effective to invest in energy efficien-
cy than supply. This investment in energy efficiency—or demand-
side management (DSM)—complements EPA's voluntary pro-
grams and other efforts to increase energy efficiency.
A movement is underway nationwide, supported in the National
Energy Strategy (NES), to level the playing field and encourage eco-
nomically justifiable investments in energy efficiency. The basic
premise is that utilities should be able to make as much money on
Summer 1993:
Conservation and Renewables
Incentive Allowance Program
begins
Summer 1993:
Washer/Dryer "Golden
Carrot™" launched
Summer 1993:
EPA/European Community
(EC) meeting to discuss
Energy Star Computers-—
Europe
Summer 1993:
Green Buildings - Cooling
launched
Fall 1993:
HCFC-free energy-efficient
air conditioner prototype
developed
-------
energy saved as energy sold when savings are properly verified. This
philosophy was formally embraced in the 1990 Clean Air Act (CAA)
Amendments. The Act provides incentives for utilities to reduce
compliance costs through the use of renewable energy and energy
efficiency, where:
The state regulatory authority... has established rates and charges which
ensure that the net income of such electric utility after implementation of
specific cost-effective energy conservation measures is at least as high as
such net income would have been if the energy conservation measures
had not been implemented.
"We need to reform the rate-makingpmcess so that saving
energy is more profitable to utilities than setting it."
Ron Eachus
Chairman, Oregon Public Utility Commission Chair, Energy Conservation
Committee, National Association of Regulatory Utility Commissioners
While EPA recognizes that each state will need to develop
its own very specific utility regulations, in general the Agency
encourages inclusion of three broad principles:
• Eliminating the incentive to sell electricity by separating (or
"decoupling") profits from sales
• Creating an incentive to save electricity—accomplished
through programs in which utilities and their stockholders can
actually profit from successful investments in conservation
• Verifying energy efficiency measures to ensure that actual
energy savings are realized
As of July 1991, at least one dozen states have adopted com-
prehensive regulatory mechanisms to encourage conservation.
EPA will publish final rules on the CAA incentives and guidance
on verifying conservation in the fall of 1992. EPA, DOE, and
other Federal agencies are working across the U.S. to encourage
the implementation of regulations that will benefit ratepayers
and stockholders and prevent pollution. These regulatory
changes, by encouraging an increase in DSM investment in
energy efficiency, will strengthen EPA's voluntary programs.
Fall 1993:
Green Lights has over 1 bil-
lion ft2 of upgrades underway
Fall 1993:
Launch national certification
program for architects and
lighting consultants
Fall 1993:
"Golden Carrot™" residential
central air conditioner
program launched
Fall 1993:
Five additional VA mines
recovering methane
(total =11)
Winter 1994:
Mass market debut of
"Golden Carrot™" rooftop air
conditioners
15
-------
Flagship Program: Methane Recovery at Coal Mines
Methane, a significant greenhouse gas, can be recovered
from coal mines and used for energy instead of being wasted
and released into the atmosphere. A variety of proven technolo-
gies are available to recover and use this waste gas, but prospects
are hampered by legal and regulatory barriers. Some of the
principal barriers include legal questions about who owns the
gas released by coal mining, the unwillingness of utilities and
pipelines to buy the electricity or gas produced by these facili-
ties, and the existence of regulatory frameworks that discourage
the use of the recovered gas. These barriers can be addressed
through legislative actions at the state or Federal level, incentive
programs, and outreach to coal mines, operators, utilities,
pipeline companies, states, and municipalities.
EPA has been working with the U.S. coal industry to identify
the barriers to methane recovery and assist in their removal.
The key focus of current activities is the Appalachian region,
which has the largest potential for methane recovery and could
most benefit from actions to address ownership issues and
"These voluntary programs exemplify how we
can achieve environmental protection,
economic growth, and energy security. As such,
they represent a new environmentalism that
is broader, cleaner, and even profitable."
William G. Rosenberg
EPA Assistant Administrator for Air and Radiation
remove other hurdles. EPA has efforts underway to ensure that
the full benefits of methane recovery at coal mines—in terms of
environmental protection, employment, and revenues—are rec-
ognized by coal mine operators, as well as by states and other
Federal agencies.
EPA's activities to expand the recovery of methane from
coal mines also have a major international component. U.S.
companies lead the world in the development of technologies
to recover and use methane from coal seams. Thus, there are
Winter 1994:
Energy Star logo debut on
residential cooking
appliances
Winter 1994:
Energy Star Room Air
Conditioner Program
launched
Winter 1994:
Green Buildings - Water and
Space Heating launched
Winter 1994:
of potential for reducing
methane from landfills
achieved
Spring 1994:
Solar thermal water heater
group-buy
-------
many opportunities for U.S. companies to export technologies
and develop international joint venture projects. EPA is facilitat-
ing such projects through the preparation of resource assess-
ments and investment opportunity analysis, the creation of
international technology transfer centers, and the organization
of seminars, workshops, and conferences on coalbed methane
that showcase the achievements of U.S. companies. EPA plans to
continue these efforts in several countries—including the
People's Republic of China, Russia, Ukraine, Poland, and the
Czech and Slovak Federal Republic. As a result, U.S. coal and
gas companies will have additional business opportunities in
coalbed methane and methane emissions from the world's coal
mines will be reduced.
Future Programs for Regulatory and
Legal Support
Following the flagship Utility Regulatory Reform and Coalbed
Methane programs, EPA is planning the introduction of similar
programs, targeting the following opportunities:
Landfill Methane Recovery
Tire Inflation
As technologies evolve and market conditions change, EPA will modify and
expand this list.
6. ENVIRONMENTAL BEST PRACTICES
STRATEGIES
Flagship Program: Green Nylon Manufacturing
The United States produces about one-third of the world's
nylon in a manufacturing process that releases the greenhouse gas
nitrous oxide (N2O).
Nitrous oxide emissions can be reduced during the manu-
facturing process through the addition of a reductive furnace to
adipic acid plants, the factories used in the production of nylon.
This technology, which recycles nitrous oxide and saves energy
and raw materials, is being developed now and is expected to be
fully commercialized by mid-decade.
EPA is working with major U.S. nylon manufacturers to
expand the use of these reductive furnaces. By incorporating
environmental concerns into design and manufacturing process-
es, EPA and nylon manufacturers are leading the way toward a
more environmentally sound—and more competitive—economy.
Spring 1994:
Energy Star logo on most per-
sonal computers and printers
sold
Spring 1994:
Green Commercial Cooking
launched
Summer 1994:
42 State Partners in Green
Lights
Summer 1994:
CEE/EC Summit on "Golden
Carrot™" opportunities for
Europe
Summer 1994:
Launch Energy Star program
for large consumer
appliances
17
-------
Future Programs for Environmental Best
Practices
Following the flagship Green Nylon Manufacturing program,
EPA is planning the introduction of similar programs, targeting
the following opportunities:
Livestock Waste Lagoon Methane Recovery
Livestock Dietary Strategies
As technologies evolve and market conditions change, EPA will modify and
expand this list.
7. STRATEGIES TO EXPAND INTERNATIONAL
MARKETS
Flagship Program: Natural Gas Pipelines in Russia
EPA's experience in its voluntary programs often points
naturally to international opportunities, many of which are
mentioned in this document. For example, EPA's natural gas
experience in the U.S. led to an initiative in Russia, the largest
natural gas producer in the world. Current estimates suggest
that about 5 percent of the gas produced in the former
U.S.S.R—approximately 25 Teragrams (Tg) of methane—is
released into the atmosphere. EPA and Russian gas specialists
are working together to reduce leakage of this greenhouse gas
to 2 percent by adopting existing and profitable Western tech-
nology and work practices.
EPA and GAZPROM (the Russian Gas Association) have
established a working group of experts from both countries
and are developing projects to increase the efficiency of the
natural gas system in Russia. Projects will be chosen from sev-
eral areas, including: enhanced field maintenance; upstream
refining of gas; leak detection and mapping; pipeline con-
struction and rehabilitation; compressor upgrades; power
generation; and improved measurement and control devices.
The Russian Natural Gas Pipeline project expects to transfer a
mobile methane monitor to Russia in late 1992, and identify
pilot projects early in 1993.
The Russian Natural Gas Pipeline project could reduce
methane emissions 15 Tg, the equivalent of 90 million metric
tons of carbon—while providing additional capital resources
for new economic development projects in Russia, and creating
further export and investment opportunities for U.S. industry.
Summer 1994:
Expert panel updates CAA
Amendment Conservation
Verification Protocol
Fall 1994:
EPA helps Brazil produce
high-efficiency compressors
Fall 1994:
Green Buildings Partners
commit 1 billion ft2
Winter 1995:
Phase T utilities can earn
"reduced utilization" conser-
vation credit
Winter 1995:
Mass market debut of
"Golden Carrot™"
washer/dryers
-------
THE CLIMATE is RIGHT FOR ACTION
As we move forward at EPA, it becomes increasingly obvious
that environmentalists and business leaders are often pursuing
the same goals. Only by incorporating environmental concerns
can economies truly prosper; only by taking advantage of eco-
nomic forces can environmental protection goals be realized.
Through the voluntary programs to reduce greenhouse gases,
EPA and its private-sector partners seek to do both—by embrac-
ing sound, cost-effective pollution reduction opportunities and
enhancing natural market forces to save energy, reduce pollu-
tion, and mitigate the risk of climate change. In fact, EPA's
greenhouse programs, along with other U.S. actions, have the
potential to significantly reduce greenhouse gas emissions.
'We came to Rio with an action plan on climate change
...My administration published a detailed program ofspedfe
measures that the U.S. was prepared to undertake to address
climate change... Let us join in translating the words spoken
here into concrete action to protect the planet."
President George Bush
June 12, 1992, Rio de Janeiro, Brazil
Winter 1995:
~1 million homes
insulated/heated with Energy
Star products
Winter 1995:
Green Gas Partners commit
30% of natural gas transmis-
sion and distribution
Winter 1995:
All states remove legal barri-
ers hindering methane recov-
ery at mines
Spring 1995:
EPA Energy Star logo debut
on room air conditioners
Spring 1995:
Mass market debut of
"Golden Carrot™" heat
pumps
19
-------
IMPACT OF EPA GREEN PROGRAMS ON U.S. GREENHOUSE GAS EMISSIONS
1800
C/3
a
o
1700
W ^ 1600
+-» a;
U
OJ
fl
O
5-H
U
H 1500
1400
1300
1200
1990
2000
Projected
Baseline
2000
Projected
with Green
Programs (low)
2000
Projected
with Green
Programs (high)
Note: Green Programs benefits calculation includes additional complementary demand side management programs.
These estimates do not include the other parts of the U.S. Action Plan, e.g., the National Energy Strategy, Clean Air Act, Forests for the Future, and others.
Spring 1995:
Mass market debut of
"Golden Carrot™"
Refrigerators
Spring 1995:
Green Buildings Partners
commit 2 billion ft2
Spring 1995:
Major swine producers
recover methane from
animal wastes
Spring 1995:
Mass market debut of
"Golden Carrot™"
heat pumps
Summer 1995:
Chinese market
super-efficient
non-CFC refrigerator
-------
U.S. ACTIONS TO CURB CARBON DIOXIDE EMISSIONS
U.S. Views on Global Climate Change, Department of State, April 1992
Action/Description
Demand-Side Management
(DSM) /Green Lights
- Commercial/Industrial
- Residential
DSM/Green Computers
DSM/Green Industrial Motors
DSM/Green Buildings (HVAC)
"Golden Carrot™" Refrigerators
Residential Clothes Washers
Residential Clothes Dryers
Low-flow Showerheads
Solar Thermal Water Heaters
Advanced Heat Pumps
Appliance Standards
Potential
Technical
Improvement
65%
75%
57%
30%
53%
57%
96%
65%
58%
70%
20%
n/a
Year 2000
Market
Penetration
25%-62%
27%
65%
16%
17%
3%
3%
3%
11%
2%'-3%2
n/a
n/a
Electric
Energy
Savings
(BkWh)
81-203
23.4
26.3
39.5
41.9
3.0
1.3
1.2
10.2
4.8
1.8
22.2
Year 2000
Carbon
Reduction
(MMT C)
17.0-50.1
4.9
5.5
8.3
8.8
0.6
0.3
0.3
3.4
1.4
2.5
4.7
1 Homes with gas heaters
2 Homes with electric heaters
Summer 1995:
Mass market debut of
"Golden Carrot™" central
air conditioners
Summer 1995:
Energy Star-bearing low-flow
showerheads approach 5%
penetration
Summer 1995:
Five additional Appalachian
mines recovering methane
(total 16)
Fall 1995:
Launch Energy Star
program for small consumer
appliances
Fall 1995:
Green Commercial Cooking -
15 national restaurant chains
commit
21
-------
U.S. ACTIONS TO CUEB CARBON DIOXIDE EMISSIONS
U.S. Views on Global Climate Change, Department of State, April 1992 (continued)
Action/Description
Residential Space Heating
-New
-Old
Residential Central Air Conditioning
Residential Room Air Conditioning
Residential Cooking
Commercial Cooking
Industrial Electrolytics
Amorphous Core Transformers
Miscellaneous Residential
and Commercial End Uses
Better Refrigerants
Tire Inflation, Auto Inspection
and Maintenance, etc.
1991 Transportation Act
Potential
Technical
Improvement
20%
10%
29%
19%
8%
20%
20%
70%
13%
5%
n/a
n/a
Year 2000
Market
Penetration
8%
10%
40%
40%
40%
30%
13%
25%
40%
80%
n/a
Electric
Energy
Savings
(BkWh)
2.4
9.6
1.2
1.2
1.8
1.8
9.0
15.0
8.2
n/a
n/a
Year 2000
Carbon
Reduction
(MMT C)
0.5
2.0
0.3
0.3
0.4
0.4
1.9
3.1
1.8
3.0
4.0
Subtotals: Gross Additional Carbon Actions
1 Homes with gas heaters
2 Homes with electric heaters
306-429
75-108
1996:
India markets super-efficient
non-CFC refrigerator
1996:
Green Buildings Partners
reach 4 billion ft2
1996:
Green Lights Partners
upgrading 10 billion ft2
1996:
500,000 solar thermal water
heaters installed nationwide
1996:
Utilities installing amorphous
core transformers approach
10% of total
-------
ACTIONS TO CURB CARBON DIOXIDE EMISSIONS—SUBTOTALS
Electric
Energy
Savings (BkWh)
Year 2000
Carbon Reduction
(MMTC)1
Gross Additional Carbon Actions
Less:
National Energy
Strategy Integrated
Resource Planning
Consumer Response to Lower Prices 2
306-429
-116
-38
75-108
-24
-8
Additional Carbon Actions
(Net of NES and Consumer Response) 152-275 43-76
Plus:
Actions in President Bush's NES Proposals
— Efficiency Improvements and Integrated Resource Planning
— Natural Gas Regulatory Reform
— Expanded Use of Biofuels
— R&D for Renewables, Transportation, and Energy Efficiency
— Provide Framework for Additional
Actions (previous pages) 128 45
ACTIONS TO CURB METHANE AND
NITROUS OXIDE EMISSIONS
Year 2000
Carbon Equivalent
Reductions (MMT C)'
Methane
Methane Capture/Landfills
Methane Capture/Livestock
Waste Lagoons
Methane Capture/Coal Mines
Livestock Dietary Program
Total Methane Reduction
Nitrous Oxide
Green Nylon Program
Total Other Gases
@CH4GWP=11
19
3
0-3
3
25-28
8-12
33-40
@CH4 GWP = 22
39
7
0-6
6
52-58
8-12
60-70
Total Greenhouse Gas Emissions
Reductions (Carbon and Other)
125-170
152-200
Total Carbon Reductions
281-402
87-121
1 Reductions are in millions of metric tons of carbon equivalent in the year 2000. These
projections are sensitive to assumptions regarding energy prices, economic growth, and
technology penetration over the next decade. Further projections will change as the
actions list is updated, as events affecting the energy markets and the economy unfold,
and as the effects of current actions are seen.
Carbon Sinks 5-9
— "America the Beautiful" and Other Forestry Programs
1 Reductions are in millions of metric tons of carbon equivalent in the year 2000. These pro-
jections are sensitive to assumptions regarding energy prices, economic growth, and technolo-
gy penetration over the next decade. Future projections will change as the actions list is updat-
ed, as events affecting the energy markets and the economy unfold, and as the effects of cur-
rent actions are seen.
2 This value (12% to 20% of the electricity savings) is included as an adjustment for increases
in demand for energy services that will result as the introduction of these efficient technolo-
gies lower consumer costs. The actual "rebound" effect may vary significantly from this value.
1997:
Energy-efficient heating, vent-
illation, air conditioning
(HVAC) technologies installa-
tions in 5% of nation's space
1997:
50 million Americans cook
with improved efficiency
products
1998:
Green Motors penetrates 10%
U.S. market
1998:
Energy-efficient room air
conditioners hit 20%
of market
1998:
"Golden Carrot™" heat
pumps cut electric bills $70
million
23
------- |