United States
Environmental Protection
Agency
Air and Radiation
6202J
430-R-98-002
March 1998
Atmospheric Pollution
Prevention Division
ENERGY STAR® and Related Programs
\ 997 Annual Report

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Introduction	2
1997 Program Accomplishments	4
ENERGY STAR® Program Awards   	5
ENERGY STAR® for Commercial Buildings  	6
ENERGY STAR® Product Labeling   	10
Public Recognition  	22
Methane Programs	 .24
Industrial Environmental Stewardship Programs  	32
Program Costs and Benefits  	34
Explanation of Program Costs and Benefits	35
                For additional information, please call the toll-free
             ENERGY STAR Hotline at 1-888-STAR-YES (1-888-782-7937).

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                       Introduction
  "For the United States
     in particular, sound
economic analysis shows
     that there are policy
options  that would slow
 climate change without
      harming American
    living standards, and
  these measures may in
        fact improve U.S.
      productivity in the
               longer run."
   STATEMENT OF MORE THAN
        2,000  ECONOMISTS ON
             CLIMATE CHANGE
                JANUARY 1997
It has been more than  two years  since the
Intergovernmental Panel  on Climate Change
(IPCC) released its consensus report on  global
climate  change,  which concluded that human
activity is changing the climate. Although we do
not know yet what the precise consequences will
be, the IPCC did conclude that a disruption in the
climate  system "is likely  to have wide-ranging
and mostly adverse impacts on  human  health
with significant loss of life."

Most greenhouse gas emissions, which con-
tribute to  climate change,  are  caused by the
burning of fossil fuels for energy.  Roughly a third
of these emissions come from transportation,  a
             third from industry, and  a third
             from  residential  and commer-
             cial buildings.   In each case,
             the ways in which we use ener-
             gy to provide the services we
             want is inefficient.  In some of
             these sectors, this energy use
             could be more than 30 percent
             more efficient, and thus much
             cleaner, if existing technologies
             and practices were relied upon.
             Many efficient technologies not
             only  reduce greenhouse  gas
             emissions, but do so while
             improving our standards of liv-
             ing and accelerating economic
             growth.
      j About  U.S.
Energy Use
*   The  energy  used in  the  average  house
contributes more greenhouse gas emissions than
the average car.  These emissions could be 30
percent lower while saving household dollars  if
houses were equipped with energy-efficient
ENERGY STAR "-qualified products or where initially
built to ENERGY STAR  levels. // all U.S. residents
bought only energy-efficient products marked
with the ENERGY STAR label over the next 15 years,
we would  shrink our cumulative energy bill by
$100 billion.

*   The energy used to support the activities of
just one office worker for one day causes over
twice the  pollution as driving to work.  These
emissions could be 30 percent lower if system-
atic investments in building systems were made.
ENERGY STAR provides  a  proven,  organized
approach.  // all building owners took advantage
of ENERGY STAR Bui/dings and Green Lights, they
would shrink their  cumulative energy bill by $130
billion by 2010.

4   Landfills, gassy coal mines,  natural gas
systems, and swine and  dairy farms are respon-
sible  for  most anthropogenic  emissions  of
methane,  a potent  greenhouse  gas.   When
methane  is  captured and used as an  energy
source, sizable  emissions  reductions can  be
achieved at a profit.

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    PD's  Programs
EPA's Atmospheric Pollution Prevention Division
(APPD) has implemented a number of programs
strategically designed  to  capitalize  on these
opportunities for improving  energy efficiency.
The programs overcome the market barriers that
slow the rate of investment in available, smart,
efficient technologies that can slash operating
costs and prevent the emissions of greenhouse
gases.  The partnerships developed with busi-
ness, industry, government, and other organiza-
tions, through APPD's programs have met with
great success.  As these programs expand their
reach, they will continue to provide tremendous
benefits to the environment as well as the U.S.
economy. The programs include.
*  ENERGY STAR Buildings and Green Lights;
*  ENERGY STAR Product Labeling;
*  Methane Partnerships; and
«•  Industry Partnerships to reduce greenhouse
gas emissions.
    97 Achievements
1 997 was a highly successful year for the Division's
partnership programs.  Overall, the Division's work
yielded the following accomplishments:

*  An annual reduction of more than 1 1 million
metric tons of carbon (MMTCE) in greenhouse
gas emissions (a 60  percent increase over last
year).*
*  Cumulative  investments in energy-efficient
technologies in excess of $1 billion.
«•  Cumulative energy bill savings of more than
$2 billion for consumers and businesses.
In addition the cost of these
programs to the government
is less than 5% of the total
investment spurred by the
programs. Key highlights for
specific programs include.

*   Successful expansion of
Green  Lights® to  a whole
building  upgrade   strategy
yielding a total of 1.7 billion
of  recruited square feet into
ENERGY STAR Buildings.
*  Expansion  of  APPD's
successful  partnership with
the U.S.  Department of
Energy (DOE) on the ENERGY
STAR label, with EPA and DOE unveiling several
new ENERGY STAR-compliant products.

*  Greater consumer recognition of the ENERGY
STAR label,  now appearing on  more than  25
energy-consuming  products   ranging  from
refrigerators to heat pumps. Over 3,400 product
models now carry the ENERGY STAR label.

*  Annual reductions of  more than 5 million
MMTCE in the emissions of the non-C02 gases:
methane, HFCs, and PFCs.

*  Introduction of privately funded loans  for
products with the  ENERGY  STAR  label by major
financial organizations that lower the overall cost
to  consumers   of   buying   high-efficiency
equipment.

The environmental  and financial  results of these
programs are summarized in the following report.
"Climate change can
bring us together around
what America does
best—we innovate, we
compete, we find
solutions to problems,
and we do it in a  way
that promotes
entrepreneurship and
strengthens the American
economy."
PRESIDENT BILL CLINTON
REMARKS ON CLIMATE CHANGE
OCTOBER 22, 1997
NATIONAL GEOGRAPHIC SOCIETY
 * Reduction in annual greenhouse gas emissions for all APPD programs, including non-C02 gases, expressed as
 the standardized measure "carbon-equivalents" as defined by the IPCC,

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    1997   Program
  Accomplishments
   Annual Carbon Reductions
   Resulting from APPD Programs
   14.0 MMTCE
   12.0
          1995
1996
1997  1997  1998 Goal
Goal Achieve-
     ment
    Financial Highlights: Based on Total
    Stream of Savings/Benefits
    Net Energy Bill Savings to APPD
    Partners and Consumers* .
                               .$19 billion
    Million Metric Tons Carbon Equivalent (MMTCE)
    Reduction due to APPD Programs** 	
                              .210 MMTCE
    Financial Ratios
    National Energy BillSavings
     «r Dollar Spent by APPD  .
                     .$100 per $ spent by APPD
    National Energy Bill Savings with
    Every Ton of Carbon Reduced  ..
                          .$90 per metric ton
*  Net pre-tax savings over the lifetime of investments to Green Lights", ENERGY STAB*, and Methane and Utility
Program Partners and consumers for upgrades, projects, and purchases completed by the end of 1997 or commit-
ted to by the end of 1997. Net pre-tax savings are the additional revenues received above those that would have
been received from typical alternative investments. APPD costs have been subtracted.

" Total million metric tons of carbon equivalents (MMTCE) reduced over the lifetime of  investments to APPD
Program Partners and consumers for upgrades, projects, and purchases completed by the end of 1997 or commit-
ted to by the end of 1997.

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 ENERGY  STAR®
 Program   Awards
ENERGY STAR BuildingsSM and Green Lights®
   Mobil Corporation (Fairfax, VA)  	ENERGY STAR BuildingsSM Partner of the Year
   The Trane Company, Applied Global Systems (LaCrosse, Wl)	ENERGY STAR Buildings5" Ally of the Year
   Compaq Computer Corporation {Houston, TX)	Green Lights® Corporate Partner of the Year
   Louisville & Jefferson County Metropolitan Sewer District (Louisville, KY) ..  .Green Lights® Government Partner of the Year
   St. Joseph Hospital (Lancaster, PA) 	Green Lights® Healthcare Partner of the Year
   Walt Disney World Co. (Lake Buena Vista, FL)	Green Lights® Hospitality Partner of the Year
   Davenport Community Schools (Davenport, IA)	Green Lights® Education Partner of the Year
   McDonald's (Oak Brook, IL) 	Green Lights® Retail Partner of the Year
   American Electric Power Company (Columbus, OH) 	Green Lights® Ally of the Year
   City of Scottsdale (Scottsdale, AZ)	ENERGY STAR Buildings5" Best Promotion
   Johnson & Johnson (New Brunswick, NJ)	Outstanding ENERGY STAR Buildings5" Upgrade
ENERGY STAR®  Homes
   Energy Rated Homes of Indiana (Indianapolis, IN) 	ENERGY STAR® Homes Home Rating/Tech
                                                              Support Provider Ally of the Year
   Andersen Corporation (Bayport, MM)  	Outstanding ENERGY STAR® Homes Manufacturer
                                                              Ally of the Year
   Gainesville Regional Utilities (Gainesville, FL)	Outstanding ENERGY STAR® Homes Utility Ally of the Year
   Southlake Development, Inc. (Hobart, IN)	ENERGY STAR® Homes Small Builder of the Year
   Watt Homes (Salt Lake City, UT)  	ENERGY STAR® Homes Medium Builder of the Year
   Best Homes (Indianapolis, IN) 	ENERGY STAR® Homes Medium Builder of the Year
   Pufte Homes (Phoenix, AZ) 	ENERGY STAR® Homes Large Builder of the Year
   Palm Harbor Homes, Inc. (Dallas, TX)	ENERGY STAR® Homes Manufactured Home
                                                              Builder of the Year
ENERGY STAR®  Labeling
   Ricoh Corporation (Caldwell, NJ)	ENERGY STAR® Office Equipment Imaging
                                                              Partner of the Year
   Samsung Electronics (San Jose, CA)  	ENERGY STAR® Office Equipment Monitor
                                                              Partner of the Year
   IBM Corporation (Armonk, NY) 	ENERGY STAR® Office Equipment Computer
                                                              Partner of the Year
   Xerox Corporation (Stamford, CT)	ENERGY STAR® Office Equipment Best Promotion
   Lithonia Lighting (Decatur, GA) 	ENERGY STAR® Exit  Sign Partner of the Year
Natural Gas STAR
   Marathon (Houston, TX)	Production Partner of the Year
   Enron (Houston, TX) 	Transmission Partner of the Year
   Atlanta Gas Light (Atlanta, GA)	Distribution Partner of the Year

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                    ENERGY  STAR  for
                    Commercial  Buildings

  "Green Lights® is a
government program
    that really works.
 We had no idea that
 this opportunity was
 out there,  but Green
    Lights gave us the
     information and
  tools we need.  Now
         we are saving
 $24,000 per year in
  taxpayer money... .
       DR. BRAD ALLISON
 DAVENPORT COMMUNITY
ENERGY  STAR BuildingsSM and  Green Lights*
Partnership promotes energy efficiency as a busi-
ness strategy that building owners and managers
for commercial and industrial buildings can adopt
to improve their bottom line and the environment.

A number of major barriers to energy efficiency
have been identified in the commercial building
marketplace, such as:

•   Lack of technical  information. In most
cases commercial and industrial building owners
and managers lack objective, accessible informa-
       tion about the benefits of energy-effi-
       ciency strategies.

        •  Competing   vendor  claims
        Building owners  and managers must
        often rely on equipment vendors for the
        information on building products and
        equipment.

        •  Limited financial  resources
        Although the purchase price of energy-
        efficient products is often higher than
        standard equipment, the cost of owning
        them over the lifetime of the products
        is usually substantially lower than the
        cost of owning standard equipment.
                                                          Annual Carbon Emissions
                                                          Prevented From All Completed
                                                          Upgrades
                                                             '91  '92   '93   '94   '95  '96  '97
      We Are
ENERGY  STAR Buildings  and Green  Lights is
designed to address these market barriers to smart
energy management practices. The voluntary part-
nership between EPA and building owners/man-
agers help U.S. businesses design and implement
strategies that eliminate wasted energy and reduce
energy costs.
                                                               '91   '92   '93  '94  '95  '96  '97
                                        is committed to lighting upgrades {Green Lights). The dark areas (1995-1997) repre-
                                      je that go beyond lighting and pursue whole-building upgrades (ENERGY STAR Buildings).

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            DINGS
ENERGY STAR  Buildings and Green Lights  spurs
          investment in  energy-efficient build-
                     ing  technologies  and
                       practices by  partner-
                       ing  with U.S.  busi-
                       nesses.  The  partner-
                       ship  offers  a  proven,
systematic approach  to  performing building
upgrades  that  maximize energy  savings.   By
installing  energy-efficient  lighting,  ventilation,
and heating and cooling technologies in existing
buildings,  many companies  can reduce  their
total energy  bill  by 30 percent or more.   For
example, lighting accounts for 30 to 40 percent
of electricity use in commercial buildings,  An
investment in a lighting upgrade project through
Green Lights (the first stage of the ENERGY STAR
Buildings strategy)  can reduce the energy  need-
          ed  for lighting by over 40 percent. In
                     addition,  the  invest-
                  ments will earn, on average.
                     35  percent a year—with
                      less  risk  than  most
                     alternative investments,
   IERGY  STAR
BuildingsSM  Guidelines
ENERGY STAR Buildings has five guiding principles
that will improve energy efficiency in commercial
and industrial buildings across America:
an h'NJFBcv STAR
*   Energy  efficiency  investments  are  good
business decisions
*   The program provides organizations with a
systematic approach to building upgrades that
maximize savings
*   Quality  of  space  and worker  comfort are
maintained or enhanced by efficiency upgrades
*   Energy efficient upgrades enhance the asset
value of a building and
*   There are no remaining reasons for saying
"no" to energy efficiency.
   IERGY  STAR Small
BusinessSM
The  ENERGY  STAR  Small
Business™ Program encour-
ages businesses and organi-
zations   with   less   than
100.000 square feet to make
                                                                                   SMALL BUSINESS
the same energy-efficiency improvements in their
facilities as larger businesses. ENERGY STAR Small
Business  tailors  the  ENERGY  STAR  Buildings
Program to meet the needs of small business. The
energy-efficiency message  is delivered through
recognized networks such as the Small Business
Administration's Small  Business Development
Centers, Chambers of Commerce, and EPA/DOE
regional offices.

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s
     If all building owners
         join ENERGY STAR
          Buildings8" and
       Green Lights® and
        implement cost-
       effective efficiency
         opportunities by
    2010, they will shrink
         their cumulative
     energy bills by $130
       billion and reduce
         greenhouse gas
   pollution  equivalent to
           eliminating  the
       emissions from 20
       million cars for the
             next decade.
         Accomplishments
THE PARTNERS
ENERGY STAR Buildings and Green Lights has seen
tremendous success in 1997. With the addition
of 250 participants in  1997, Green Lights has
grown from 39 Charter members in 1991 to more
than 2,500 participants, including corporations,
universilies, healthcare  facilities, nonprofit orga-
nizations, school districts, federal agencies and
local governments, and small businesses.

In 1997 EPA recruited 1.5 billion square feet into
the Partnership,  bringing the total to 7.5  billion
square feet.  This figure represents 10 percent of
the total commercial building space  in the coun-
try. Over 70 percent, 1.1 billion square feet, of the
total space recruited into the program in 1997 will
take their energy-efficient  upgrades  beyond
lighting  upgrades, demonstrating a shift in
focus  from  lighting  upgrades to the strategic,
whole-building upgrade approach.

THE SAVINGS
More than 4 percent of U.S. buildings have under-
gone upgrades. As a result, businesses across the
nation have reduced  their annual energy use by
6,9 billion kilowatt  hours, and they have saved
$500 million on energy bills this year with ENERGY
STAR Buildings and Green Lights.  In 1997 these
participants in the  program also prevented the
emissions ot 1.4 million metric tons  of carbon
equivalent (MMTCE) of  greenhouse gases—the
equivalent of removing more than 1  million cars
from the  road.*   Since  1991, participants have
prevented emissions of 2.7 MMTCE—equivalent
to avoiding the pollution from over 2 million cars.
EPA predicts that by the year  2000 ENERGY STAR
Buildings and Green  Lights will  have prevented the
emissions of more than 5.5 MMTCE.

THE RECOGNITION
ENERGY  STAR Buildings and Green Lights recog-
nized its participants in 1997  for their contribu-
tion to  energy efficiency and environmental pro-
tection. Efforts  to  increase  public  awareness
brought EPA  40 placements of  ENERGY  STAR
Buildings  and  Green  Lights public  service
announcements in national and regional business
publications such as Fortune, Newsweek, and the
Harvard Business Review ($w p .22). In 1997 the
EPA reached  an estimated 17  million people
through these activities. At its annual awards cer-
                                  '111656 estimates are based on a factor of the average car emits 10,000 Ibs of carbon dioxide per year.

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 emony, the Partnership honored 11 participants,
 representing several major sectors, with the pres-
 tigious Partner of the Year awards.

 The ENERGY STAR Small Business Program also
 had an exceptional  year.  Participation more than
 quadrupled in size, growing from 21 participants
 at the end of 1996 to 104 participants by the end
 of 1997.  The amount of committed floor space
 grew as well. At year's end, more than 1.4 mil-
 lion square feet was signed up.  This figure rep-
 resents  a  four-fold increase over the  340,000
 square feet committed by the end of 1996.

    iat's Ahead
 ENERGY STAR Buildings and Green Lights plans to
 move aggressively  to meet its goals for 1998.
The Partnership plans to  save 12.2 billion kilo-
watt hours (kWh) and prevent the emissions  of
 2.4 million metric tons of carbon equivalent of
 potential greenhouse gases.

 Green Lights is being fully integrated into ENERGY
 STAR Buildings.  This transition will allow for a
 uniform  message  of  comprehensive building
 upgrades to be transmitted to all  participants,
 current and prospective.

 The business unit is developing a performance-
 based  metric or label for buildings that have
 achieved energy excellence. This label will sig-
 nify  that the  building's  energy performance
 places  it in the top of its market, establishing a
 level playing  field for all  buildings, new and
existing.  Displaying the  label  will increase the
asset value of the building, and  the label itself
will serve as a symbol  of environmental leader-
ship. This label will be available in 1998.
 Energy Star  BuiIdingsSM  and Green Lights®
 Partnership  Goals and Achievements
                                              1997
                                              Goal
                                1998
                                Goal
  Square Feet Recruited - lighting (billion)          7.5
  Square Feet Recruited - whole building (billion)    1.6
  Fioorspace Upgraded (billion sq. ft.)              2.5
  Annual Energy Savings Earned  (billion kWh)        7.2
                 7.5
                 1.7
                 2.8
                 7.1
 9.0
 3.1
 4.0
12.2
                                                                                                             o

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10
                            ENERGY  STAR
                            Product  Labeling
                            Evidence is growing that American consumers
                            are "underinvesting" in technologies that can
                            help them  reduce energy use. save
                            money, and reduce the emission of
                            greenhouse  gases.   A  recent
                            study  completed   by   the
                                                   EPA
                             *  Confusion on the pan ol consumers.  The
                             methodologies for measuring the efficiency of
                                      products  are often unavailable to
                                          consumers or  are  based on
                                          highly technical  measure-
                                          ments, making it difficult for
                                       DOB
                            Department of Energy found that
                                                   SAVINS ThE EARTH. SAVWGYXJR MONEY
    "If over the next 15 years
   everyone were to buy only
         those energy-efficient
   products marked in stores
       with EPA's distinctive
      ENERGY STAR label,  we
     could shrink our  energy
             bills by a total of
           about $100  billion
  over the next 15 years and
              dramatically cut
  greenhouse gas emissions."
         PRESIDENT BILL CLINTON
    REMARKS ON CLIMATE CHANGE
     ^k\    OCTOBER 22,1997
  NATIONAL GEOGRAPHIC  SOCIETY
the United States could reduce its
greenhouse gas emissions by 20
percent by 2010 simply by investing
in existing, proven, and cost-effec-
tive energy-efficiency technologies.

There are a number of barriers to
investments  in energy efficiency,
including:

+  Lack of information.  In many
instances, consumers lack objective,
accessible information about  the
benefits of energy-efficient products.
             the consumer to judge the rel-
ative benefits of the product.

*   Higher purchase price lor energy-efficient
products. Despite the fact that the total ownership
costs of an efficient product are often lower, the
purchase price can be higher.
       We Are
ENERGY  STAR, jointly run by EPA and the U.S.
Department of Energy, is designed to address
market  barriers to investment in energy-efficient
technologies. These voluntary, market-based pro-
grams accomplish this by working with manufac-

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 turers,  distributors,  utilities,  energy-efficiency
 advocates, consumers, and other organizations to:
 *   Label energy-efficient products.   Working
 with manufacturers and other interested parties,
 EPA and DOE establish energy-efficiency speci-
 fications  for existing,  proven  technologies.
 Products that exceed these energy-efficiency lev-
 els can be identified with  the distinctive ENERGY
 STAR label. This label allows consumers to read-
 ily  identify and purchase the most energy-effi-
 cient products on the market.

 *  Provide  objective information to consumers.
 The ENERGY STAR Program produces non-technical
 fact sheets,  brochures,  and  interactive websites
 that help consumers better understand the  eco-
 nomic and environmental benefits of using energy-
 efficient products.   This  information also gives
 consumers a way to verify manufacturers' efficien-
 cy claims for their products.

 +   Work with  national,  regional,  and local
groups to promote energy efficiency.  Many pri-
vate and public groups,  including energy-effi-
ciency advocacy groups, utilities, retailers, and
others, serve as a valuable  source of information
for consumers.  The ENERGY STAR Program works
                        ResiMtrriAi
                        HEATING &
  ENERGY STAR®-LabeIed
  Products
  January  1998
HOtti  •      ;
ELECTRONICS
Televisions
VCRs
TV/VCR
 Combination Units
OFFICE EQUIPMENT
Computers
Monitors
Copiers
Fax Machines
Multifunction
  Devices
Printers
Scanners
APPLIANCES
Dishwashers
Refrigerators
Room A/C Units
Clothes Washers
                        Boilers
                        Central A/C
                        Furnaces
                        Heat Pumps
                        Thermostats
                        OTHER PRODUCTS
                        Windows (3/98)
                        Exit Signs
                        insulation
                        Home  Lamps and
                          Lighting Fixtures
                        Transformers
                        NEW HOMES
actively with these groups to not only promote
the ENERGY STAR message, but also to ensure that
the message reflects local concerns and needs.

«•   Lower the  costs of owning energy-efficient
equipment and products through  alternative
financing.  Many financial institutions now recog-
nize that energy-efficient products represent a
market opportunity.   The ENERGY STAR Program
works with these companies to develop these
products and to devise alternative  financing for
them, so consumers can reduce the overall costs

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of  owning ENERGY SiAR-compliant products and
equipment.
As  of  January  1998.  the  ENERGY  STAR label
appears  on  more  than  25 energy-consuming
products,  ranging  from computers to  refrigera-
tors to  central air conditioning units.  The num-
ber of ENERGY SiAR-qualified models across these
products has grown to 3,400  in  the past year.
The ENERGY STAR Program has also established
strong  working relationships with state and local
organizations  to  ensure that  all  consumers
receive consistent  and cost-effective messages
about the benefits of energy efficiency.
                               97 Accomplishments
                           Products bearing  the ENERGY STAR label helped
                           consumers save  more  than $740  million  this
                           year and reduce pollution by 2.0  MMTCE. This
                           figure  is equivalent to removing the  pollution
                           from more than 1.5 million cars from the road.
                           Aggressive and comprehensive consumer aware-
                           ness efforts in 1997 greatly increased the pub-
                           lic's recognition of the ENERGY STAR label.  Public
                           service announcements appeared on TV. in print
                           media, and on mass-transit  bulletins in cities
                           such as San Francisco. Minneapolis. Chicago.
                           and Dallas.  More than 200 news  articles and TV
 Annual Home Energy Bill Comparison
            Today's Average Home
                (51.284/year)
  Heating & Cooling
      (41%)
          Appliances
            (38%)
           Lighting
            (6%)
Water Heating
   (15%)
                          Homes Equipped with Energy Star —labeled
                                  Products and Appliances
                                        ($888/year)
 Heating & Cooling
     (21%)
  Water Heating
     (15%)
Potential Savingi
    (31%)
 (About WOO)
Lighting
 (3%)
            Appliances
              (30%)
  Source:  Annual energy cost and savings estimated by LBNL, using 1993 RECS data.

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                                                                                                       13
news stories about ENERGY STAR appeared in vari-
ous markets around the country.
In 1997, the ENERGY STAR Programs:
*   Introduced the ENERGY STAR Residential Light
Fixtures Program.
+   Tightened  specifications for "sleep mode"
wattage on  computer monitors and the extended
ENERGY STAR label to high-end computers.
+   Developed successful training programs for
the ENERGY STAR Residential Heating and Cooling
Program, which has been well-received by the
heating and cooling industry.
*   Introduced ENERGY STAR loans for ENERGY STAR-
compliant heating and cooling equipment.

  that's Ahead
The ENERGY STAR Labeling Program continues to
grow.  The Division announced a new Consumer
Electronics labeling effort in January 1998.  Even
before this announcement, ENERGY STAR labeling
had commitments from most of the major TV and
VCR  manufacturers.   These charter  partners
account  for  approxi-
mately 80  percent of
the TV and 75 percent
of the VCR markets.
Another effort from the
Labeling Program is the
"ENERGY STAR Roofs" ini-
tiative.   ENERGY  STAR
Roofs  will  work  to
increase  the use  of
materials that can lower
roof temperatures, thereby cutting the amount of
energy needed to cool homes.
APPD  will continue to label  new ENERGY STAR-
qualified products, focus on new markets and partner
groups, and achieve greater market penetration of
existing ENERGY STAR-compliant products.
 "[The] ENERGY STAR
partnership shows how
government and business
can work together to drive
the marketplace toward
energy efficiency—to grow
the economy while
protecting the
environment."
VICE PRESIDENT AL GORE
JANUARYS, 1998
INTERNATIONAL CONSUMER
ELECTRONICS TRADE SHOW

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                                 ENERGY  STAR  Office Equipment
    In 1997, ENERGY STAR
 office equipment saved
         businesses and
consumers $740  million;
 additional  use of  ENERGY
   STAR office equipment
    could increase these
    total savings to more
         than $1.5 billion.
         They Are
 ENERGY SiAR-labeled  office equipment powers
 down to a low-power state  when not in use, thus
 reducing wasted electricity.  This "sleep" feature
 can reduce the total energy consumption of office
 equipment by 50 percent or  more.  To qualify, each
 category of products must  power down  below a
 specified watt level after a predetermined time of
 inactivity.  ENERGY  SiAR-labeled office equipment
 includes computers,  monitors, printers, faxes,
 copiers, scanners, and multifunction  devices.

 Energy consumption from these products is the
fastest growing use of electricity in the commercial
sector.

         Accomplishments
In 1997 the ENERGY SiAR-labeled office equip-
ment saved more than 10 billion kilowatt hours of
 energy, roughly equivalent to eliminating the pol-
 lution of 1.6 million cars or planting 2.2 million
 acres of trees.  Add that to the cumulative total of
 19  billion  kilowatt hours saved since the label
 first appeared  in 1993,  and ENERGY STAR Office
 Equipment has reduced the nation's energy  bills
 by$1 billion.

 Fifty-seven participants joined Office Equipment
 in 1997, bringing the total number of participants
 to  641  worldwide.   With  participants in
 23  countries,  including  Australia, Korea,  and
Japan, ENERGY  STAR is working to make offices
worldwide more energy efficient.
ENERGY STAR® Office Equipment
Goals and Achievements

Percent of Market with ENERGY STAR Feature:
Computers
Monitors
Printers
Fax Machines
Copiers
Annual Energy Savings (billion kWh)
1997
Goal
80%
95%
99%
70%
45%
10.1
11S3SBF
' ' '95%
99%
70%
45%
9.0
1998
Goal
80%
95%
99% ;
90%
65%
14.9
                                   Estimates based on 1996 market data and consultation with manufacturers,

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 ENERGY STAR  Residential
 Heating  and  Cooling Equipment
Ifhat They Are
 Heating and cooling is one of the top energy
 expenditures in most U.S. homes. ENERGY STA.R-
 labeled centra1 air conditioners, heat pumps, fur-
 naces, boilers, geottiermal heat pumps, gas-fired
 heat pumps, and programmable thermostats can
 help consumers reduce these costs without sac-
 rificing features, performance,  or comfort,

@?97 Accomplishments
 In 1997 the ENERGY STAR program began working
 with the financing industry lo  make special, pri-
 vately funded loans available to help consumers
 purchase  ENERGY SiAR-compliant heating  and
 cooling equipment.  The program's success to
 date and  its potential for future  success are
 demonstrated by the volume of ENERGY STAR loans
 that have already been approved. Since the pro-
 gram's inception in January  1997, the compound-
 ed monthly growth in loan  volume has been 55
 percent. EPA  has been working to attract addi-
 tional finance palners, so  consumers will  have
 mere financing options availab'e to consumers
 them for purchasing high-efficiency leafing and
 cooling equipment.
In the spring of 1998, EPA will work with MBNA,
a leading consumer credit company, to pilot test
a new loan  product for ENERGY SiAR-labeled
equipment.  The loan
product will offer con-
sumers a reduced inter-
est race on ENERGY STAR-
qualified equipment and
longer repayment (ems
than standard financing
products.
The "Train-the-Trainer"
sales t-aininc program
developed by EPA  has
also met with fabulous
success.  Trie training sessions, designed for
HVAC contractors, stress  the  importance  of
teaching consumers about the benefits ol buying
heating and cooling equipment that displays the
EMERGY STAR  label.  In Ihe  programs first year,
30,000 independent HVAC  contractors, abcut 3
 paicent of trie tola I number ol HVAC contractors,
 have been trained.
|  "We are very pleased with
I  our ENERGY STAR-labeled
1  equipment. We now have
   sufficient heating and
   cooling with  increased
   comfort,  and yet our costs
   are down.  From August to
   Decembei', we saved
   approximately $75 on our
   utility bills."
   ERNIU AND ANN VAN DEVER
   SAN CARLOS, CA

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16
  Consumers spent over
            $11 billion on
    residential  lighting in
    1997.  Using  energy-
     efficient  lighting can
               reduce this
    expenditure by more
      than  50 percent, or
               $5.8 billion.
                                 ENERGY  STAR  Residential
                                 Light  Fixtures
                                 What They Are
ENERGY STAR residential light fixtures cover indoor
and outdoor tixtures that are both hardwired and
portable. Most of these fixtures are "dedicated.
which means that they are designed to use only
energy-efficient light bulbs.

These light  fixtures deliver  the same  or better
lighting quality than traditional incandescent fix-
tures. They start immediately, operate quietly.
and often include dimming or switching capabil-
ity.  The outdoor fixtures automatically turn off in
daylight, and some have motion detectors

Established  in March  1997.  the ENERGY STAR
Residential Light Fixtures Program is one of the
newest labeling programs  Manufacturers agree
to use the ENERGY STAR  label on residential light
fixtures that meet ENERGY STAR specifications for
energy efficiency, safety, reliability, and quality.

1997 Accomplishments
Residential light fixtures bearing the ENERGY STAR
label were introduced in 1997 by 12 manufacturer
Partners. By the end of 1997. the number of par-
ticipants had more than doubled to 26 manufactur-
er Partners.  The use  of residential  light fixtures
saved the United States 11 million kilowatt hours
in 1997. which translates into $800,000 in energy
costs.  This accomplishment is equivalent to elim-
inatemg the pollution of more than 1,500 cars,
                                  Residential  Light  Fixtures -  Case Study
                                  Bright  300-watt halogen  torchiere lamps have
                                   ecome one of the most popular indoor residen-
                                  tial light fixtures on the market, with over 40 mil-
                                  lion sold in the United States in the past decade.
                                  Unfortunately, these lights not only waste energy,
                                  they can also  pose serious fire threats in homes,
                                  offices, and dorm rooms.
                                  Recent advances  by  Lawrence  Berkeley
                                  Laboratories in the development of  highly effi-
                                  cient light  sources has led to a new generation of
                                           ENERGY SiAR-labeled fixtures that use less energy
                                           and operate at much lower temperatures.
                                           The ENERGY STAR-compliant light fixtures look the
                                           same and provide the same amount of light as the
                                           halogen  lamps while saving a tremendous
                                           amount of energy.  These lamps also operate at
                                           much safer  temperatures and can  save  con-
                                           sumers more than $150 in energy bill savings
                                           over the life of each fixture.

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ENERGY  STAR  Exit  Signs
    lat  They Are
ENERGY SiAR-labeled exit signs use 75 percent less
energy than a typical exit sign, saving $15-20 year-
ly on electricity costs.  Using these technologically
advanced signs can also help businesses substan-
tially reduce their maintenance costs tor exit signs.
ENERGY SiAR-compliant exit  signs exceed current
National Fire Protection Association standards for
luminance and visibility.

More than  100 million exit signs  are in use in
buildings throughout the country.  They operate 24
hours a day, 365 days a year.  Operating these
signs costs $1 billion over the course of a year.
          Accomplishments
 The ENERGY STAR Program labels energy-efficient
 exit signs and works with manufacturer partners to
 ensure that energy-efficient exit signs are  promi-
 nently displayed in the marketplace. The program
 also promotes the benefits of using energy effi-
 cient exit signs to businesses and consumers.

 In 1997  more than 720,000 ENERGY SiAR-labeled
 exit signs were sold, bringing the total number of
 purchases to over 1 million.  The  use of  ENERGY
 SiAR-qualified exit signs  saved in excess  of $18
 million in operating and  electricity costs. They
 also prevented  over 236.5 billion kilowatt hours
 ol electricity from being wasted.
 Postal  Service  Replaces  30,000 Exit Signs
 The US Postal Service has launched an ambitious
 program to  replace 15,000 exit signs  in post
 offices nationwide  with  energy-efficient LED
 (light-emitting diode) signs that use up to  75
 percent less energy than  existing signs, while
 reducing  maintenance   costs  and  offering
 improved visibility and safety.
 The Postal Service  program is the  first major
 commitment by a federal buyer to use exit signs
ttiat qualify lor the ENERGY STAR® label.  These
LED exit signs,  which  operate continually,  are
expected to reduce Postal Service energy costs
by more than $400,000 per year.  Because LED
signs last 10 years or more, significant savings
are achieved  in avoided maintenance costs,  tn
contrast, standard lamps need to be replaced up
to three times a year.
Businesses spent in
excess of $1 billion to
operate exit signs in
1997.   Using energy-
efficient exit signs can
reduce this expendi-
ture by $700 million.
                                                                                                           o

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                                   ENERGY  STAR Insulation
More than half the energy
   used in a home goes to
  heating and cooling.  By
      insulating their attics,
      residents can reduce
home energy use by 10 to
                 20 percent.
    iat  It Is
Insulation has recently been added to EPA's list of
ENERGY STAR  qualifying products. Many homes, in
particular older homes, are not properly insulated.
Properly installed insulation is a smart and proven
way to save energy and improve the quality of a
home while saving money through lower utility bills.
By merely insulating an  attic,  a homeowner can
reduce their home energy use by 10 to 20 percent.

         Accomplishments
After introducing the ENERGY STAR label for insu-
lation in 1997, EPA has developed and complet-
ed an Insulation Guide. The  guide helps con-
sumers  choose and properly install the most
appropriate insulation for their home.
                                                                                 Participating manufacturers of insulation  have
                                                                                 agreed  to place the ENERGY STAR  label on
                                                                                 the  packaging of their ENERGY STAR-compliant
                                                                                 products.  They have also agreed to distribute the
                                                                                 Insulation Guide everywhere that ENERGY STAR insu-
                                                                                 lation is sold.

                                                                                 In addition, the ENERGY STAR Program continues
                                                                                 to  work  with manufacturers,  utilities,  trade
                                                                                 associations,  energy-efficiency  groups,  and
                                                                                 distributors to publicize the benefits of properly
                                                                                 using insulation.
                                     The ENERGY STAR® Label
                                     The ENERffir STAR Label represents an ongoing,
                                     successful  partnership between  the  Environ-
                                     mental  Protection  Agency  (EPA)  and  the
                                     Department of Energy (DOE), it promotes energy
                                     efficiency and increases consumer recognition of
                                     the label while reducing the environmental threat
                                     of global warming.
                                     To date the partnership has been extremely effec-
                                     tive.   More than  3,400 models of a variety of
                                             products have been qualified as ENERGY STAR.  In
                                             addition, consumer awareness of the benefits of
                                             energy efficiency has been increased.
                                             DOE manages product areas such as appliances
                                             (dishwashers, refrigerators, clothes washers), Toorrf'air
                                             conditioners, and windows.  EPA manages product
                                             areas such as: office equipment, consumer elec-
                                             tronics, home heating and  cooling equipment,
                                             and related products.

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                                                                                                        19
ENERGY STAR Transformers
  mat They Are
The ENERGY STAR Transformer Program promotes
the  environmental  and  economic  benefits of
cost-effective,  high-efficiency transformers to
electric utilities.  The program  accomplishes
these goals by

*  Preparing  technical  reports
and studies  on the economic
and regulatory issues surround-
ing  transformer purchases for
utilities and regulators.
                            TRANSFORMER
                         SWING THE EARTH
*  Developing (in conjunction with the electric
utility industry) technical software programs that
allow users to perform complex transformer cost-
effectiveness and sizing analyses.

*  Helping program participants  promote their
energy-efficiency efforts through the use  of the
ENERGY STAR name and logo and through the prepa-
ration of informative materials for their customers.
    97 Accomplishments
In  1997 the ENERGY STAR Transformer Program
helped its member utilities reduce energy losses by
approximately 30.5 million  kilowatt-hours, the
equivalent  of eliminating the pollution of 5,000
      cars. The program also signed  up  11
          new utility partners as participants in
              the program.

            Finally, the ENERGY STAR Transformer
              Program distributed  more than
              200 copies  of  its  unique
              DITCEM software to utilities. The
software program allows many utilities (particularly
small, publicly owned utilities) to more accurately
select the  most cost-effective and efficient trans-
former for their needs.

In 1998 the program will continue recruiting new
utility partners,  It will also announce a  new
ENERGY STAR-labeled product—high-efficiency
transformers that are available in the commercial
and  industrial  sectors.   The  ENERGY STAR
Transformer Program has developed new cost-
effectiveness  software for these  transformers.
This software is currently being field  tested.
  "EE1and the electric industry have been very supportive of the
  ENERGY STAR Transformer Program.  It's an example of a great
  program that helps economic efficiency, helps the environment,
  and helps lower customers' utility If ills."
                                                                                      In 1997, more than $1
                                                                                      billion was wasted as
                                                                                      a result of transformer
                                                                                      inefficiencies.  If
                                                                                      businesses used
                                                                                      transformer
                                                                                      technologies that are
                                                                                      currently available,
                                                                                      they could cost-
                                                                                      effectively reduce
                                                                                      these energy losses
                                                                                      by as much as 40
                                                                                      percent.
  TOMKUHN
  PRESIDENT, EDISON ELECTRIC INSTITUTE

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  ENERGY  STAR  Homes
     10 We Are
 The ENERGY STAR Homes Program is a public/pri-
 vate partnership between  the U.S.  EPA
 and new home builders and devel-
 opers, energy-efficiency allies,* and
 others  in the  residential housing
 industry.  The  primary purpose of
 ENERGY STAR Homes is to transform
                                 S«D«TtaE«miSwiNG\bi« MONK
the market for energy efficiency in new housing by
improving builder profitability,  home quality  and
homeowner comfort; lowering  energy demand;
reducing air pollution; and enhancing the national
economy. As with all ENERGY STAR Programs, the
commitments  made through  the  ENERGY STAR
Homes Program are entirely voluntary.
in 30 different states. In addition, the number of
allies expanded from 44 to more than 240, includ-
ing  25  utilities that  are promoting the program.
            Since  its  launch  in October 1995,
            ENERGY STAR Homes  has grown  to
            include more than 370 builders  in
            48 states,  and five lenders offering
            ENERGY STAR mortgages.
          Accomplishments
In 1997 the ENERGY STAR Homes Program was dis-
tinguished not only by its exponential growth but
also by the clear transition from  development to
implementation and home certification.  In 1997
the number of homes displaying  the ENERGY STAR
label grew from less than 200 to more than 1200
                                               In 1997 ENERGY STAR Homes expanded to include
                                               the  manufactured housing industry, a develop-
                                               ment that will increase the potential for reducing
                                               emissions.  This program is also planning  to
                                                ENERGY STAR® Mortgages
                                               ENERGY STAR Mortgage Partners recognize the
                                               financial value of ENERGY STAR Homes. Chase
                                               Manhattan, Countrywide and PHH Mortgage as
                                               well as several regional  fenders offer special
                                               mortgage terms for ENERGY STAR home buyers, i
                                               These terms may include  reduced closing
                                               costs, more liberal underwriting requirements,
                                               and a higher appraised home value.
'Allies include utility companies; insulation and window manufacturers; heating, ventilation, and air conditioning
(HVAC)/water heater equipment manufacturers; home energy rating system providers and raters; industry trade
associations; energy service companies; etc.

-------
expand to the existing homes market, a move
which has significant potential tor pollution pre-

vention and energy bill savings for consumers.

    lat's  Ahead

As ENERGY STAR Homes continues to  grow and

expand, EPA plans to increase market penetra-
tion as well as consumer awareness of the pro-

gram.  APPD anticipates that by the end of 1998,

10,000 ENERGY SiAR-qualified homes will be in

the ground, a number that far exceeds existing

goals.   ENERGY STAR  Homes is working toward
 having at least 10 per-

 cent of the annual U.S.

 new construction mar-

 ket (equal to 100,000
 homes)  built to  ENERGY

 STAR guidelines  by the

 year 2002 and 95 per-

 cent by  the year 2012.

 Achieving  these  goals
 "The ENERGY STAR
 Homes Program not
 only assures a quality -
 built, state-of-the-art
product,  it affords us a
 tremendous marketing
 opportunity."
 MICHAEL B. DAVIS
 PRESIDENT, BEST HOMES
would constitute a com-

plete transformation of the new homes market.
 ENERGY STAR® Homes Case Study
 Putie- Homes, .one &i America's, leading home
 builders, is increasing its participation in the
 Energy Star Homes program. Pulte divisions in
 Phoenix, AZ, and las Vegas,  NV, have been
 active in Energy Star Homes since 1997;  they
 have have recently been joined by Rule's Grand
 Rapids, Mi, division. "Our Energy Star designa-
 tion allows us to differentiate ourselves from the
 competition and confirms our  commitment to
 energy efficiency," says  Richard Obernesser,
 director of sales and marketing for the Phoenix
 division.  "We are contributing to the long-term
satisfaction of the home owner because of the
savings and energy efficiency they will notice
when they open their utility bills," he adds.
In the hot, arid Phoenix climate, Pulte employs
a combination of energy-efficiency strategies
that includes more insulation, window shade
screens, and double-pane insulated windows.
According to Obernesser, the Energy Star label
"gives Pulte's customers a reputable source that
can validate the importance of energy-efficient
features" in a Pulte home.

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22
                        Public   Recognition
                        Recognition  is an  essential part  of  EPA's partnership     leadership of exemplary participants, recognition  corn-

                        programs.   From  generating awareness for the ENERGY     plements the technical tools provided that help decision

                        STAR label among the American public to recognizing the     makers act.   1997 was a successful  year  for  these
                                         f   \    This year alone, more than

                                          \ly/5    2,300 companitt pirticipatinfi
                                          muSS
                                          -wk*!-. in EPA's Green Lights* and

                                         ENERGY STAR" Buildings programs will save

                                         nearly $282 million in energy costs, and

                                         help prevent over 5 billion pounds of ui

                                         polhiaon emissions. This means they'll not

                                         only improve their bottom line, but the

                                         environment AS well Imagine

                                         what these savings could do

                                         for your organization.
                         To find GUI how you company on IW "jnp. trwnry Bid tfae pbnn,
                          «fl ERA* wl-ftw Modw 1 I 888. STAR YES (1-888-782-7937)
                                                                                               \ File.


                                                                                                  (format A Document.
                                                                                                                       Save A Planet.
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                                                                                       "*•'* **»«•* ***>D t»*rnA*tn to 41 rptllmmi. i»* wan V jmsi it* t*vi*t "onrj

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                                                                                       mart. €»li 1 36S-STA.R-YES 'J-HfS-7S2-r9t7f

          Developed for the ENERGY STAR Buildingssw and Green LightsH  Partnership.
          this  marketing  PSA  was designed  to  provoke  the  interest of  major
          corporations in joining  the Green  Lights  and  ENERGY  STAR Buildings
          Partnership. The PSA  has been placed in publications such as  Fortune and
          Business Week.
Developed as part of a series (others include a  refrigerator  and air
conditioner)  this PSA uses  a computer  to  increase the public's
recognition of the ENERGY  STAR  label-the symbol for energy  efficiency.
This  PSA has been  in publications such as Mens  Health and Mother
Jones.

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                                                                                                       23
               recognition  activities.   Following  are a few
               examples of public  service announcements
               developed  in  1997.  Publications such as
               Fortune,  Newsweek  and  MSW Management
                                     have run  these PSAs.  These,  in addition to
                                     other PSA's, have been placed at no cost to the
                                     government in more than 90 publications.
   CG&EB
                  MORI
                 POWER
                                   sjfl^

                WP&L
     ....'•---
    N«w England Bear* SyMm
   psiEuer
YOU!
PKO
ENEIW
                                          RGY.
      j rlMfl*-m I inim Ultr-
The  Landfill Methane Outreach  Program  developed this  PSA to
recognize the Allies of the Utility Ally Program. This PSA. mainly
used for trade publications, has been seen in MSW Management.
                                   Natural Gas STAR developed this PSA to recognize the Partners
                                   in the Natural Gas STAR Producer Program  It has been placed
                                   in trade publications such as Gas Industry.

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24
                             Methane   Programs
            "The most important
       message of the program is
    that regulators and industry
    can work together effectively
     to solve problems.  The real
   enticement of the program is
         that it emphasizes cost-
   effective solutions as opposed
        to solutions at any cost."
            Who We Are
            The Methane Programs consist of five programs
            that  reduce  emissions  of methane, a  potent
            greenhouse gas. from the  largest man-made
            sources.  These programs promote methods for
            the recovery and use of  otherwise  wasted
            methane.  EPA's partners and allies in these
                        programs   are    diverse,
                        encompassing major sectors of
                        the economy and several of the
                        nation's key industries.  By
                        focusing  on the  particular
                        needs and conditions of each
                        industry,  the  programs  are
                        achieving  great  successes.
                        The major programs and their
                        partners follow:
ROBERT H. PREUSSER
JOOKLYN UNION GAS
   \s STAR PARTNKR
K
   working with states, municipal!-
                                            Landf i 11 Methan e Outreach—

                             ties, utilities, and the landfill gas-to-energy industry
                             to collect and use methane from landfills.

                             *   Coalbed Methane Outreach--working with
                             the coal and natural gas industries to collect and
                             use methane that is released during mining.

                             *   Natural Gas STAR—working with the com-
                             panies that produce, transmit, and distribute nat-
                             ural gas to reduce leaks and losses of methane.

                             *   AgSTAR—working with large livestock pro-
                             ducers to encourage methane recovery from ani-
                             mal waste.

                             *   Ruminant  Livestock  Efficiency—working
                             with livestock producers to improve animal nutri-
                             tion  and management, thereby boosting  animal
                             productivity and cutting methane emissions.


-------
                                                                                                          25
         Accomplishments
APPD's methane reduction programs achieved
substantial success in 1997.   These programs
established working partnerships with 239 com-
panies, 84 farms,  20  energy companies,  19
states, and 5 communities.  The partnerships
have enabled the  programs  to  surpass their
methane emissions reduction goals for 1997.

  that's Ahead
All of the programs have moved beyond their
start-up phases  into full marketing and  imple-
mentation, with significant methane recovery and
efficiency  gains  on  target for upcoming  years.
Key activities for  1998 and beyond include work-
 Annual Methane
 Reductions:
 Goals  and Achievements
  6 MMTCE
                            5.0
                2.6
         1.3
         1996    1997  1997    1998
                Goal  Achieve- Goal
                     men!
shops, completion of technical support tools,
and targeted project analyses. The methane pro-
grams will also focus on publicly recognizing
participant achievements and initiatives.

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26
                             Landfill  Methane  Outreach  Program
         ' This is a good move for
              energy users and the
       environment... .  If we can
       use landfill gas to generate
       electricity,  we can displace
        fossil fuels and help keep
       energy dollars in the local
       economy.  It's a winner for
                         everyone."
                    JUDITH MERCHANT
                   WASHINGTON STATE
                       ENERGY OFFICE
                                   We Are
                            The Landfill Methane Outreach Program (LMOP)
                            works with the landfill gas  industry,  utilities,
                            states, and communities to overcome
                            barriers to developing successful
                            and cost-effective landfill  gas-
                            to-energy projects.  Since its
                                          inception,
                            97 Accomplishments
                        Information and project facilitation services pro-
                        vided by the program helped more than 20 land-
                              ill gas-to-energy projects become opera-
                                tional this year. The energy recovered
                                  from these projects will produce
                                  enough electricity to power more
                                  than 44,000 houses annually.  In
          LANDFILL METHANE
95  landfill OUTREACH PROGRAM  addition, these projects will reduce
gas  service  companies,  20     enough greenhouse gas emissions each year to
                         equal the removal of 1.4 million cars from the
                         road and the planting of 940.000 acres of trees.
energy  companies, 19 state
agencies, and 5 communities
have joined the program as
voluntary participants.
                         Twenty-six new participants joined the program
                         this year. In addition, five communities joined the

-------
  program, so they could begin developing landfill
  gas recovery projects in their municipalities. This
  aspect of the Landfill Methane Outreach Program
  will ensure that all communities are aware of the
  benefits that come from a landfill gas-to-energy
  project.

  In addition to gaining new members, the program
  produced a number  of new tools that will help
  both  current and future  participants.  The pro-
  gram released E-PLUS, a project evaluation soft-
  ware  tool,  and the  Project  Development
  Handbook.

(Chat's Ahead
 This document explains landfill gas generation as
 well as landfill  gas-to-energy technologies and
  costs.   It also  gives
  guidelines for financing
  options.   By the  year
  2000,  the  program
  hopes to spur an approx-
  imately  200  percent
  increase in the number
  of landfill gas-to-energy
  projects,  which  would
  provide  enough energy
  to power about 1.5 million homes. By the end of
  1998, three  years after its launch, the  program
  seeks to further expand its membership to include
  those states that collectively represent 65 percent
  of the U.S.  landfill  gas-to-energy potential,  at
  least 40 energy companies, and virtually all of the
  industry's landfill gas service companies.
          " The [Landfill
         Methane Outreach]
         Program offers a unique
         win-win opportunity to
         both reduce greenhouse
         gases and obtain free or
         low-cost fuel... ."
         ROBERT KAPPELMAN
         JACKSONVILLE ELECTRIC
         AUTHORITY
  Landfill Methane  Outreach  Program
  Goals and Achievements

Number of New Energy Projects
1997
Goal
25.0
iH5lf
Achievement
20.0
1998
Goal
55.0
   Annual Methane Savings (trillion BTUs)
3.0
7.8
6.0
                                                                                   	o

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28
          Coalbed Methane  Outreach  Program
             ho We Are
          The Coalbed Methane Outreach Program (CMOP) encourages
          coal mines to recover and use coal mine methane as an
          energy source. The program helps facilitate projects
          by providing economic and technical assess-
          ments of potential coal mine methane projects,
          information on project financing, and detailed
          information on new equipment and techniques
          for methane recovery,
M   E  T  H  A  N
OUTREACH
    R  O  C  R  A  M
                   Accomplishments
          In 1997 the Coalbed Methane Outreach Program facilitated the
          development of three coal mine methane projects, bringing the
          total to 15.  These projects, along with all other CMOP projects.
          reduced  methane  emissions  by  15 billion  cubic feet (1.5
          MMTCE) in 1997 while generating $30 million in direct gas
          sales. This reduction  in methane emissions is equivalent to
          removing more than one million cars from the road  per year,
          putting the program ahead of its 1998 goals.
The program's  outreach efforts focus on providing high-quali-
ty, project-specific information to coal mine operators.  This
year, these outreach efforts greatly expanded as the program
             developed working relationships with a number
             of additional coal mines. The program is cur-
             rently working with 10 coal mines, 5 coal com-
             panies, and 2 electric  utilities.  The Coalbed
             Methane  Outreach  Program is  continuing to
             develop workshops, take advantage of speaking
opportunities to publicize the program, and develop new fact
sheets as well as other technical publications.

What's Ahead
By the year 2000. the program's goal is  to have coal  mine
methane projects in 20 U.S. mines.  If this goal is met. the
recovered methane could supply the natural gas needs of more
than 500,000 average American homes. In addition, the reduc-
tion in greenhouse gas emissions would result in the equivalent
of 5.4 million  cars being removed from America's roads.
           Coalbed Methane Outreach Program
           Goals and Achievements
             Total Number of Projects
             Annual Methane Savings (trillion BTUs)*
                                                             1997
                                                             Goal
           13.0
           27.2
                               1997               1998
                           Achievement             Goal
                 15.0
17.0
                 33.8
33.6
             * Includes both CCAP program and base reductions.

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  Natural  Gas  STAR
                                                                                                        29
 Who  We  Are
 The Natural Gas STAR Program helps gas companies identify and
 implement cost-effective opportunities to reduce gas leaks and the
 resulting methane emissions. Natural Gas STAR helps natural gas
 production, transmission, and distribution facilities save money
 and protect the environment by controlling leaks from natural gas
 pipelines. The program has identified seven "best management
 practices" for cost-effectively reducing methane
 emissions.
                                     NaturalGas
                                     EPA  POUUTIONPREYENTEI
if 97 Accomplishments
 During 1997 Natural Gas STAR recruited seven new partici-
 pants, bringing the total number to 70. The participants repre-
 sent a majority of the natural gas industry, including 34 percent
 of natural gas production, 65 percent of transmission pipeline
 mileage, and 32 percent of all service connections.
  Natural Gas STAR'S out-
  reach efforts soared this
  year. A  number of new
  tools that support imple-
  mentation efforts were
  developed,    including
     case  studies,  an
      implementation
           luide, deci-
          sion support
         software, and a
          media guide.
 "We have made
 substantial methane
 emission reductions
 since signing on as a
 member of Natural
 Gas STAR.   It has
 been a terrific way for
 us to improve  our
 systems and save
 money,"
JOHN WEUST, COORDINATOR
 HEALTH,  ENVIRONMENT
AND SAFETY OPERATIONS
SUPPORT GROUP
MARATHON On
 As a group, all the Natural Gas STAR participants have reduced
 emissions of methane by an estimated 35 billion cubic feet
 (bcf) through 1997—the equivalent of removing more than 3
 million cars from the road. Participants have gone beyond their
 original Natural Gas STAR commitment by identifying more
 than  90  "best  management  practices"  that cost-effectively
 reduce methane emissions.
Chat's Ahead
 By the year 2000.  Natural Gas STAR anticipates working with
 more than 300 participants to reduce methane emissions from
 80 percent of the transmission and distribution sectors and 70
 percent of all U.S. natural gas production. In 2000, Natural Gas
 STAR partners will save as much as 44 billion cubic feet of nat-
 ural gas each year,  enough to provide heat for 600,000 homes
 or the  equivalent of removing 3.5 million cars from U.S. roads.
 Natural  Gas  STAR Goals and Achievements


Transmission Pipeline Miles (% in program)
Distribution Pipeline Miles (% in program)
Natural Gas Production (% in program)
1997
Goal
70.0
40.0
40.0
1997
Achievement
65.0
32.0
37.0
1998
Goal
80.0
45.0
50.0
                                                      9.1
                10(est.)
           22.7
  ' Includes both CCAP program and base reductions.

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30
                                   AgSTAR
                                           We  Are
                                   The AgSTAR Program works with dairy and pork
                                   producers  to encourage manure  management
                                   strategies that are both profitable
                                   and environmentally appropriate.
                                   The program provides tools, guid-
                                   ance,  and methods that allow par-
                                   ticipating  livestock producers  to
                                   determine whether a biogas system
                                   is right for their farm. With these systems, pro-
                                   ducers can  use  methane recovered from  their
                                   animal manures as an  energy source.  Not only
                                   do these projects reduce greenhouse gas emis-
                                   sions, but they enable  producers to turn manure
                                   into a valuable  asset  that helps them  remain
                                   competitive in today's  livestock industry.

                                   ^97 Accomplishments
                                    In 1997 methane recovery projects in many key
                                    livestock-producing states—including  Illinois,
                                    Iowa,  California,  and  Connecticut—made
                                    progress, advancing from groundbreaking to com-
                                    pletion. At present, AgSTAR projects reduce the
                                    equivalent of approximately 10,000 metric tons of
                                    carbon from being released into the atmosphere.
In  1997  AgSTAR  welcomed  10 new  producer
partners,  bringing  the total  to  40  participants
representing 4,400  livestock facilities.  Participants
are surveying their farms and installing methane
            recovery systems when it  is cost-
             effective   and   environmentally
             beneficial  to  do  so.   Eighteen
             industry  allies also  joined  the
             program this  year,  agreeing  to
 promote cost-effective methods for reducing
 methane emissions.
 In  addition,  two electric utilities   joined the
 AgSTAR Program, Utilities play a significant role
 in the business of agriculture and keeping cus-
 tomers in a  deregulated electric   industry  is
 becoming increasingly important to the utilities.

Chat's Ahead
 AgSTAR estimates  that  methane recovery sys-
 tems  can be  applied cost-effectively to nearly
 2,000 swine and dairy farms in the United States.
 AgSTAR  is targeting the participation of 500
 farms  by the year 2000.   Reaching this goal
 would result in  the production of approximately
 50 megawatts of renewable energy.

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 Ruminant  Livestock  Efficiency  Program
                                                                                                          31
_ 10 We Are
The  Ruminant  Livestock  Efficiency  Program
(RLEP) promotes the adoption of  management
practices and improved  technologies that
reduce emissions of methane and  other
greenhouse gases from  livestock  pro-
duction. Such practices include better
grazing management, recordkeeping and
business management; better genetics;
production-enhancing technologies;  and
improved disease control.


1997 Accomplishments
During 1997 22 new farms joined RLEP bringing
the total to 44.  These farms are demonstrating
improved grazing management and other prac-
tices promoted by RLEP In addition, RLEP began
a pilot project  to promote improved grazing man-
agement through  workshops  and  technology
transfer in the  Stale of Virginia.

RLEP is developing targeted educational materi-
als and providing technical assistance to partici-
pating farms.
    Chat's Ahead
    In 1998 RLEP will work aggressively in beef-pro-
    ducing areas, seeking partnerships with interested
      farms. The program will demonstrate ways to
           improve livestock efficiency and broaden
           its outreach efforts.
           To  promote better business practices,
           RLEP will  conduct financial  impact
         assessments  on demonstration farms.
    The program will also develop new information
    tools on formulating business plans, so livestock
    producers can enhance their production efficien-
    cy and profitability.

    RLEP will also initiate a comprehensive study of
    greenhouse gas impacts and interactions result-
    ing from improved livestock management.  The
    study  will assess  how RLEP practices  can
    increase soil  carbon  content, reduce emissions
    of methane and nitric oxide, and reduce the pro-
    duction of carbon dioxide when fossil fuels are
    used to produce energy.
 Agricultural Methane Programs*
 Goals  and Achievements
                                        1997
                                         Goal
                 18I9T
              Achievement
                 1998
                 Goal
  Partner Farms
  Methane Reductions**
150.0
  1.0
418.0
  1.6
250.0
  2.4
 'Agricultural Methane Programs include AgSTAR and the Ruminant Livestock Efficiency Program.
 "Includes both CCAP program and baseline reductions.

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32
                           Industrial   Environmental
                           Stewardship   Programs
                            )ho We Are
                           APPD's environmental stewardship programs focus
                           on reducing greenhouse gas emissions, particularly
                           the industrial emissions of the most potent and
                           long-lived greenhouse gases known, the perfluoroc-
                           compounds  (PFCs)  and  hydrofluorocarbons
                     2000.  At present, these programs are well on
                     their way to achieving their long-term goals.
               The VAIP [Voluntary
           Aluminum Partnership]
           allowed for a  no regrets
                      response to the
            potentially critical, but
             not clearly understood,
           issue of global warming.
           It is a practical program
(HFCs). APPD works with
U.S.  aluminum, chemical,
and semiconductor indus-
tries to examine opportuni-
ties for controlling and elim-
inating emissions.  It also
develops partnership pro-
     to assist industry in
                     that offered the   implementing such tech-
               potentialfor a better
              approach to problem
             solving thun ... possible
                  solution by edict.
                      KAISER ALUMINUM
                         CORPORATION
nologies.
The  environmental  stew-
ardship program for each
industry has an emissions
reduction goal for the year
           Industry
The chemical industry has been tremendously
successful in voluntarily reducing their green-
house gas emissions by partnering with EPA. By
implementing cost-effective measures to  opti-
mize the production of HCFC-22 and minimize
the creation of HFC-23. the producers, have cut
the overall amount of HFC-23 created during
HCFC-22 production. The rate of HFC-23 gener-
ation per ton of HCFC-22 produced dropped by
25 percent between 1990 and 1996. Three mil-
lion metric tons of carbon emissions (MMTCE)
were not released into the environment as a result
of these HFC-23 emission control efforts. These
reductions were achieved in concert with eco-
nomic and production growth.

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                                                                                                                 33
*       fty
            .


   fmiconductor Industry
 Launched  in 1996, EPA's partnership with the
 semiconductor industry will reduce emissions of
 perfluorocompounds  (PFCs)  from  microchip
               fabrication.  In  1997 the PFC
               Emissions Reduction Partner-ship
                 for the Semiconductor Industry
            ^  produced  an   inven-tory  of
            t
            perfluorocompound emissions from
 24 participating manufacturers.  These companies
 support   extensive   research  into   chemical
 substitutes,  process   optimization,   recovery/
 recycling,  and  abatement  technologies.   The
 industry  and EPA  have  helped  develop  similar
 programs in Japan,  Europe, and Korea.  The U.S.-
 based semiconductor  industry  and   EPA  are
 committed  to protecting the earth's environment,
while not jeopardizing the industry's position in the
world market place.
      fuminum Industry
   The Voluntary Aluminum Partnership (VAIP) is an
   innovative pollution prevention program developed
   jointly by the U.S. EPA and the primary aluminum
   industry, with the assistance of the U.S. Aluminum
   Association.  Participating
   companies work with EPA
   to improve aluminum pro-
   duction efficiency while reducing
   perfluorocarbon  (PFC)  emissions.   Since 1995
   when VAIP was created, membership has grown to
   include 12 of the nation's  13 primary aluminum
   producers, representing 22 smelters and 94 percent
   of U.S. production capacity.   The program's part-
   ners have committed their companies to the goal of
   reducing PFC emissions 40 percent from 1990 lev-
   els by 2000. If they meet this objective, roughly 2.2
   million metric tons of carbon will not be relasecf into
   the air. As of 1997, it appears thai the  participants
   will reach their long-term goal.
                                                                               INDUSTRIAL PARTNERSHIP
Chemical Industry and Aluminum Industry
Goals and Achievements
                                          1997
                                          Goal
                 1997
             Achievement
  MMTCE Reductions in Greenhouse
  Gas Emissions
2.3
                                                             4.4
3.5

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            o
                Based  On Current and Projected  Savings/Benefits
Tota! Investments Completed
"•'•; • *' • ••'• trParttiis
Program, .t
Green lights and 't
ENERSY STAR ;
Buildings 'A
ENERGY STAR
- > Otfice E(^|jprnen|i,
ENERGY STAR
ait Signs. .f
ENERGY STAR
Transformers '.
ENERGYSTAR
Homes
Landfill Methane *
Outreach7
Coalbed * '••'*"
Methane Outreach
Natural
Gas STAR
AgSTAR
Chemical and
Aluminum Industry
TOTAL
Total
Investment
% Partners*
jpusands)
$1,737,566
$44,064
$6,999
$3,692
$77,789
$43,760
$30,738
$3,750

$1,948,358
Bill Savings2 .
(thousands)
.$2,695.471
\$2,962JQ6
-,•$318442
$667
$6,873
$47,208
$261,420
$223,320
$222

$6,515,629
MMTCE
Reduction3
14.16
. 8.01
0.71
0.28
0.02
2.62
15.3
15.35
1.72
45.0
103.17
Total Investments Committed
%Partiers i
Additional
Inveshnent
by Ratters*
(thousands)
$2,415,141
•*
$8,852

$192,046

$61,477
$12,500

$2,690,016
Fufcre
BflfSawngs* MMICE
(tooififflids) RedBcfon6^
, $2,827,381 18.59 ;|:
. y.
$5,894 0.45 i

$234,363 9.38
.:,:;,::. g?:,.
$334,046 22.96
$740 5.73
27.0
$12,972,059 110.01
                      APPD1991-1997 PROGRAM Cosrs8 (™OUSAND$): 191,830

APPD engaged Arthur Andersen, an independent public accounting firm, to perform certain  agreed-upon procedures
designed by APPD to assess the accuracy of APPD's calculations used to prepare the Statements of Program Costs and
Benefits of the three largest APPD programs: the  Green Lights, ENERGY STAR Office Equipment and Coalbed Methane
Programs. This agreed  upon procedures  engagement was performed in accordance with standards established by the
American Institute of Certified Public Accountants. Arthur Andersen's report on the results of these agreed-upon procedures
is in the technical appendices.

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                                              1
Investment made or completed by Partners to the Green Lights, ENERGY STAR and Methane Programs
prior to the end of 1997. These investments represent their capital expenditures made in order to meet
their commitments under their Memorandum of Understanding with EPA. Since ENERGY STAR office equip-
ment does not cost more than non energy efficient equipment, there are no investment costs associated
with this Program.  APPD's appendix to the Annual Report details the derivation of these investments.
                                              2
Energy bill savings (Net Pre tax Savings) to  Green Lights, ENERGY STAR, and Methane Partners and
consumers who have either completed their upgrades to Green Lights or ENERGY STAR buildings, pur-
chased ENERGY STAR Office Equipment, or made investments  under  the  ENERGY  STAR Methane and
Transformers Programs by the end of 1997.
These energy bill savings (Net Pre tax Savings) are additional savings Partners or consumers receive due
to their investments in Green Lights.  ENERGY STAR, and Methane Program upgrades, projects or prod-
ucts, above those revenues they would have received  had they invested in alternative projects. To deter-
mine this energy bill savings (Net Pre tax Savings),  APPD  first calculated the revenue  received by the
Partner or consumer due to energy savings for each  year of upgrade, purchase of equipment, or dura-
tion of the project.  APPD then determined the annual revenue to the Partner as if the Partner had  invest-
ed the same funds  in an alternative project that yielded the average rate of return of 10 percent for pri-
vate sector projects or 4 percent for public sector projects over a similar length of time. (APPD used
an opportunity cost of 8 percent for the ENERGY STAR Transformer Program.) To complete the calculation,
APPD subtracted the alternative investment revenue from revenue generated due to Green Lights, ENERGY
STAR, or Methane Programs in each year.  APPD then added all annual energy bill savings (Net  Pre tax
Savings) to generate the total energy bill savings  (Net Pre tax Savings) for these "completed" programs.
APPD used this approach to calculate energy bill savings (Net Pre tax Savings) to consumers for ENERGY
STAR Office Equipment.  Since energy bill savings  (Net Pre tax Savings) represents savings to consumers
for their purchase of ENERGY STAR Office Equipment, the alternative  investment for consumers would be
other non  ENERGY STAR Office Equipment.  However,  since  non ENERGY STAR Office  Equipment has  the
same cost as ENERGY STAR Office Equipment,  but none of the savings, there is no alternative  investment
revenue.  Consequently, the energy bill savings (Net Pre tax Savings) to consumers due to the purchase
of ENERGY STAR Office Equipment is simply the annual savings due to the use of that equipment.
 APPD calculated energy bill savings (Net Pre tax Savings) over the lifetime of "completed"  projects or
purchases. These projects or purchases have lifetimes that extend from 4 to 15 years, accruing bene-
fits through the year 2010. The total energy bill savings (Net Pre tax Savings) for completed projects or
purchases under the Green Lights, ENERGY STAR, and Methane  Programs therefore include savings that
have not yet been realized by Partners or  consumers.  However, APPD believes that these savings will
be realized since the investment or purchase has already been made.  As for ENERGY STAR Homes,  the
life span of a home can be more than 100 years.  However, various energy  savings attributes, such as
HVAC equipment or windows, will need to be replaced during  this period. Since such an analysis can
become complicated, APPD has only estimated energy bill savings (Net Pre tax Savings) over the first
30 years of an ENERGY STAR Home, the life of a conventional mortgage.  This analysis assumes that the

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36
                                    HVAC equipment is replaced with ENERGY STAR HVAC equipment at the end of 15 years.  If APPD  had
                                    considered a 100 year period to determine savings, the energy bill savings (Net Pre tax Savings) would
                                    be more than three times greater.  All future energy bill savings (Net Pre tax Savings) are in constant
                                    1997 dollars.
                                    These energy bill savings (Net Pre tax Savings) do not include  financial benefits for partners who are
                                    recruited in the future, nor benefits for Partners or consumers who reinvest in their project once the cur-
                                    rent projects are depreciated, amortized, or retired.
                                    APPD obtained investment costs for Green Lights and ENERGY STAR Programs from either industry reports
                                    submitted to APPD on their investments and savings, or from market penetration  estimates obtained
                                    from industry surveys,  However, the ENERGY STAR Methane Programs estimated investment costs, oper-
                                    ation and maintenance costs, as well as revenue from industry models developed to determine the costs
                                    of specific methane programs.
                                    The Appendix to the Annual Report describes in detail the calculation of the energy bill savings (Net Pre
                                    tax Savings) (Completed) for the Green Lights, ENERGY STAR, and Methane Programs.
                                                                                3
                                    Total Million Metric Tons  of Carbon Equivalents (MMTCE) reduced due to the completed Green
                                    Lights and ENERGY STAR Programs as described in footnote 1 and 2. For programs that save electricity,
                                    APPD applied a factor that converts Kilowatt hours saved per year to MMTCEs. Similarly, for programs
                                    that reduce methane emissions, APPD applied a factor that converts billion cubic feet of methane
                                    reduced to MMTCE.  The Appendix to the Annual Report describes these calculations in detail.
                                                                                4
                                    Level of investment to be made or committed to by Partners to the Green Lights, ENERGY STAR and
                                    Methane Programs prior  to the end of 1997, i.e., their likely capital expenditures made to  meet their
                                   commitments under their Memorandum of Understanding with EPA. All Coalbed Methane Partners and
                                   ENERGY STAR Homes Builders to date have completed their investments; there were no commitments
                                   pending at the  end of 1997.  Also, since ENERGY STAR Office Equipment does not cost more than non
                                   energy efficient equipment, there are no investment costs associated with this Program. APPD assumes
                                   additional investments in  ENERGY STAR  Exit Signs will be accounted for in ENERGY STAR Buildings. APPD's
                                   appendix to the Annual Report details the derivation of these investments.
                                                                                5
                                   Energy bill savings (Net Pre tax Savings) to Green Lights and ENERGY STAR Program Partners who have
                                   committed to either upgrade their commercial space or participate in the ENERGY STAR Methane Programs
                                   by signing a Memorandum of Understanding (MOU) to undertake these investments.  APPD only includ-
                                   ed those Partners who have committed their participation in these  programs by signing MOUs by the end
                                   of 1997.  However, these Partners had not yet made capital investments, in comparison to those Partners
                                   who had already committed costs to these programs, as described in Footnote 1 and 2.
                                   APPD calculated energy bill savings (Net Pre tax Savings) for committed projects similarly to energy bill
                                   savings (Net Pre tax Savings) for completed projects described under Footnote 2. Any savings from  the
                                   ENERGY STAR Office Equipment Program is due to the purchase and use of this equipment.
                                   Due to the significant market penetration of ENERGY STAR Equipment into the market place, the future ben-
                                   efits will be on the same  order as the energy bill savings (Net Pre tax  Savings) for "completed" ENERGY
                                   STAR Office Equipment.
                                    For Green Lights, ENERGY  STAR Buildings, and the ENERGY STAR Methane Programs, APPD determined the
                                   likely savings that result over the life of an upgrade or project.  These upgrades or projects last from 10
                                   to 15 years.  For the ENERGY STAR Transformer Program, APPD has assumed that utilities maintain their
                                   MOU commitment to purchase a certain number of transformers for 1997 and 1998. With pending de
                                   regulation of the utility industry, APPD believes it appropriate to limit any projections to these years.

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                                                                                                                        37
APPD assumes additional energy bill savings due to ENERGY STAR  Exit Signs will be accounted for in
ENERGY STAR Buildings.
The Appendix to the Annual  Report describes the calculation of the energy bill savings (Net Pre tax
Savings) (Committed) for the Green Lights, ENERGY STAR, and Methane Programs.
                                              6
Total MMTCE reduced due to committed Green Lights and ENERGY STAR Programs as described in
footnote 4 and 5.  For programs that save electricity, APPD applied a factor that converts Kilowatt hours
saved per year to MMTCEs.  Similarly, for programs that  reduce methane emissions, APPD applied a
factor that converts billion cubic feet of methane reduced to MMTCE.  APPD assumes additional carbon
reductions due to ENERGY STAR Exit Signs will be accounted for in ENERGY STAR Buildings. The Appendix
to the Annual Report describes these calculations  in detail.
                                              7
For the purpose  of analysis, the projects in this program  were divided into Gas and Electric projects.
Furthermore,  within those categories, the projects  were divided  into Rule and Non-Rule projects.
Projects that fall into the Rule category are those which are located at landfills that are affected by EPA's
New Source Performance Standards and Emissions Guidelines for landfills, and as such will be required
to collect and  combust their landfill gas.  The  first deadline date for landfills affected by the Rule is
December 1998.  Therefore, all methane reductions prior to December 1998 can be attributed to the
Landfill Methane Outreach Program.
APPD expenditures dedicated to the development and  operation of the Green Lights, ENERGY STAR,
Methane Programs, and Industrial Programs from FY1991 to the end of 1997.  APPD dates the begin-
ning of these programs to January 1,1991 when the strategic plan for the Green Lights Program was
first presented to the APPD Division.  1997 is the last completed fiscal year.
These costs include administrative costs such as office space rental, staff supplies, telecommunications
and computer support, as well as programmatic costs such as grants, travel, contract support and staff
salaries, including employee benefits, as well as costs for overhead support  provided by other EPA
offices in support of APPD's mission.
APPD obtained this information from EPA's Integrated Financial Management System as well as in inter-
nal records maintained by the Management Operations and Support Staff within APPD.
These  costs  reflect expenditures to support  the Green  Lights, ENERGY STAR, Methane and Utility, and
Industrial Programs.  However,  APPD also expended funds to support other activities such as interna-
tional climate change programs. Since these funds were not used to support the Green  Lights, ENERGY
STAR, and Methane Programs, APPD does not present these costs in this report.
            For more detailed information on the program cost and benefits calculations,
                                 call APPD at (202) 564-9190.

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