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-
-------
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.
-------
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
-------
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.
-------
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
-------
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.
-------
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
-------
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.
-------
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
T»* 'II b* truiif ike twrr**mr*i ll ifrmi ivmpnttn kavt ndfrf t*mt a
trty Lttt /*r tkt E.atncr STA* ;*Ar/ em »/**,
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.
-------
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.
-------
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.
-------
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
-------
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.
-------
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.
-------
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.
-------
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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