&EPA
United States
Environmental Protection
Agency
Air and Radiation
6202J
EPA430-R-01-009
July 2001
CLIMATE PROTECTION PARTNERSHIPS DIVISION
The Power of Partnerships
ENERGY STAR® and Other Voluntary Programs
2000 ANNUAL REPORT
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Contents
Letter from the Administrator
The Power of Partnerships
Summary of Program Achievements Through 2000
Environmental Benefits
Economic Benefits
Program Effectiveness (
Key Accomplishments
Estimation of Environmental and Economic Benefits I
ENERGY STAR Program
Energy Efficiency is Smart Investment
ENERGY STAR in the Residential Sector 12
ENERGY STAR in the Commercial Sector 16
ENERGY STAR in the Industrial Sector 21
ENERGY STAR Award Winners 22
Clean Energy Programs 23
Combined Heat & Power Partnership 23
Green Power Partnership 24
Methane Programs 25
Landfill Methane Outreach 26
Natural Gas STAR 28
Coalbed Methane Outreach 31
Agriculture-Based Programs 33
High GWP Environmental Stewardship Programs 34
Voluntary Aluminum Industrial Partnership 34
HFC-23 Emission Reduction Program 35
PFC Emission Reduction Partnership for the Semiconductor Industry 35
SF6 Emissions Reduction Partnership for Electric Power Systems 35
SF6 Emission Reduction Partnership for the Magnesium Industry 36
Mobile Air Conditioning Climate Protection Partnership 36
International Climate Protection Award Winners 38
Expectations for 2001 and Beyond 39
References 40
Figures and Tables 40
Endnotes .,,,,.,,.,..,,,..,.,..,,,,.,.,,.,,,,.,..,.,. .Inside Back Cover
For additional information, please visit our Web sites at www.epa.gov/cppd
and www.energystar.gov or call the toll-free ENERGY STAR Hotline
at 1-888-STAR-YES (1-888-782-7937).
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LETTER FROM THE ADMINISTRATOR
July 2001
Congratulations to everyone who has chosen to participate in EPA's voluntary climate protection
programs. The extraordinary successes detailed on the following pages are a direct result of widespread
cooperation on the part of citizens, businesses, organizations, and governments across the country
Since taking office, President Bush and I have emphasized the need to build partnerships across traditional
boundaries and encourage cooperation in our efforts to protect the environment. The results have shown
that environmental achievement and economic prosperity can go hand in hand. As EPA Administrator, I
am pleased to have so many dedicated partners in pursuit of this goal.
Our efforts to help control global climate change have been extremely successful. The most recent data
show that, despite unprecedented economic expansion, growth of U.S. greenhouse gas emissions has
started to decline. We have accomplished this together through initiatives to increase energy efficiency,
develop clean energy solutions, capture and use methane gas, and cultivate a sense of environmental
stewardship. In the year 2000 alone, public-private partnerships helped reduce energy consumption by
74 billion kilowatt hours. This reduction produced net savings for consumers and businesses of more than
$5 billion in energy costs and prevented 35 million metric tons of harmful carbon emissions. That is
equivalent to eliminating the emissions from almost 25 million cars.
As individuals and businesses seek to improve the efficiency of their homes and offices, EPA will do
everything we can to ensure that they have the information necessary to choose the cleanest and most
efficient options available. The ENERGY STAR® label makes it easy for consumers and businesses to
maximize their efficiency, save money, and help protect the environment. Cooperation from a wide variety
of partners has helped make ENERGY STAR the leading symbol of energy efficiency around the world—and
a model for partnership programs in the future.
We all have a responsibility to be good stewards of our environment. We have an obligation to leave our
air cleaner, water purer, and land better protected for future generations. Together, we have the opportunity
to make every day Earth Day, not only in our own homes, but in our communities across the country,
and around the world. I look forward to continuing to work in partnership with you to leave a legacy of
environmental progress and economic prosperity unmatched in any previous time.
Christine Todd Whitman
Administrator
U.S. Environmental Protection Agency
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CLIMATE PROTECTION PARTNERSHIPS DIVISION 2000 ANNUAL REPORT
The Power of Partnerships
Awareness is growing throughout the United States that global warming is a serious problem and that
serious action is required to limit emissions of greenhouse gases. Energy-related activities account for the
vast majority of greenhouse gas emissions, with carbon dioxide (CO2) from fossil fuel combustion
contributing approximately 80 percent of total U.S. emissions. These emissions result from generating
the energy used in our homes (19%), in commercial buildings (16%), in industry (33%), and for
transportation (32%) (see Figure 1). Other activities cause
: 1. U.S. CARE emissions of additional greenhouse gases, such as methane and
perfluorocarbons (PFCs). While emitted in smaller quantities,
Commercial these gases are important to address due to their greater impact per
16% ,^^[fl molecule in trapping heat in the Earths atmosphere (see Table 1).
EMISSIONS BY SOURCE
Residential
Buildings
19%
Industrial
33%
Fortunately, a number of opportunities exist for working in
partnership with businesses and organizations across the country to
enhance investment in attractive, yet underutilized technologies
and practices that reduce greenhouse gas emissions. The
Environmental Protection Agency (EPA) has developed public-
private partnerships that focus on the following opportunities to
take action:
Transportation
32%
Source- EPA 2001 Energy Efficiency. Energy efficiency means getting the
same services or output (such as heating or cooling) for less energy
input. Energy efficiency offers sizable cost savings across the
residential, commercial, and industrial sectors through an array of technologies and practices available
today that can reduce the energy bill for many homes and buildings by 20 to 30 percent. The ENERGY
STAR program works in partnership with businesses, large and small, and other organizations to capture
these savings.
Clean Energy. In addition to using energy more efficiently, there are ways we can make the
energy we use cleaner—effectively breaking the link between increased energy use and harmful air
emissions. Combined heat and power as well as renewable sources of energy can cost-effectively play
larger roles in the U.S. energy mix. EPA is working to facilitate the use of these technologies.
Methane Reductions. While a greenhouse gas, methane is also the major component of
natural gas—a much sought after clean fuel. When methane emissions are reduced in a cost-effective
manner, the recovered methane represents valuable fuel that can be used or sold. The natural gas, coal,
and landfill gas development industries are working with EPA through partnership and outreach
programs to capture and use methane wherever cost effective.
High GWP Environmental Stewardship. Hydrofluorocarbons (HFCs), perfluorocarbons
(PFCs), and sulfur hexafluoride (SF6) are potent greenhouse gases, and some persist in the environment
for thousands of years. Given these long atmospheric lifetimes, various U.S. industries are working
aggressively with EPA to avoid significant accumulation of these chemicals in the atmosphere. These
voluntary programs accelerate the development and implementation of low-emitting technologies and
help companies use alternative chemicals where technically feasible and cost effective.
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THE POWER OF PARTNERSHIPS
"Cooperation from a wide variety of partners has helped make ENERGY STAR the
leading symbol of energy efficiency around the world, and a model for partnership
programs in the future."
— Christine Todd Whitman
A Proven Strategy
The actions taken by partners in EPA's public-private partnerships continue to demonstrate the power of
voluntary programs to cost-effectively reduce greenhouse gas emissions and prevent air pollution, while
also saving businesses, organizations, and consumers billions of dollars on their energy bills.
In 2000, EPA's climate protection partnerships had their most successful year to date—rapidly
expanding national participation in the popular ENERGY STAR program, as well as the methane and high
GWP voluntary programs. This growth in existing programs combined with new initiatives launched in
the energy supply and industry sectors will help ensure that these partnerships deliver ever greater
environmental benefits in years ahead. This report presents the environmental and economic benefits
from EPA's climate protection partnerships through the end of 2000. Overall achievements are
summarized in the next section. Following that are descriptions of each program, covering the rationale
for each, the accomplishments of 2000, and goals for the future. The final section outlines EPA's broad
goals for 2001 and beyond.
TABLE 1. GLOBAL WARMING POTENTIALS (GWPS) AND ATMOSPHERIC LIFETIMES OF
GREENHOUSE GASES
Greenhouse Gas Global Warming Potential Atmospheric Lifetime
for 100 Years (years)
Carbon Dioxide
Methane
Nitrous Oxide
Hydrofluorocarbons
Perfluorocarbons
Sulfur Hexafluoride
1
21
310
140-11,700
6,500-9,200
23.900
50-200
12±3
120
1.5-264
3,200-50,000
3.200
Source: 1PCC 1996
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CLIMATE PROTECTION PARTNERSHIPS DIVISION 2000 ANNUAL REPORT
Global Warming: New and Stronger Evidence
Our atmosphere today contains about 660 billion more metric tons of carbon dioxide (CO^ than it did before industrial
times. This CO2 buildup is well documented and is the unambiguous result of clearing forests and burning fossil fuels
that generate electricity, power industry, and drive transportation. In reality, even this large amount of CO2 still
represents a tiny fraction of our atmosphere. However, these trace amounts of CO2 and other greenhouse gases,
including methane and nitrous oxide, help regulate our planet's temperature.
The recent Third Assessment Report of the Intergovernmental Panel on Climate Change (IPCC) projects that the
ongoing accumulation of greenhouse gases will result in a global temperature increase of 2.5-10°F by the end of the
century. The range represents uncertainties in emissions growth over the next 100 years and the global temperature
response to a given increase in atmospheric greenhouse gases. To place IPCC's estimates in context, even the low-end
projection would be an unprecedented temperature change relative to the past 10,000 years (see Figure 2).
Because human activities have already changed the composition of our atmosphere—by releasing CO2, methane,
nitrous oxide, and even more potent synthetic gases such as MFCs, PFCs, and SF6—one would expect to see signs of
global warming today. Average global surface temperatures have in fact increased by 1°F over the past century, and
scientists are hard pressed to explain this warming through natural fluctuations alone. The IPCC states "[t]here is new
and stronger evidence that most of the warming observed over the last 50 years is attributable to human activities."
Increasing average temperatures are only part of the global warming story. More extreme hot days, less extreme cold
days, more intense rainfall, sea-level rise, and shrinking ice and glaciers are all strongly associated with global warming.
Human health, agriculture, water resources, coastal areas, ecosystems, and wildlife are vulnerable to these changes.
Exactly how the impacts of global warming will play out over time and over various regions remains uncertain. It is clear
that the greater the change, the greater the chance of adverse impacts on human health and the environment. The
greenhouse gases now being added to
the atmosphere will remain airborne for
decades to centuries, which is why there
are calls to reduce emissions now to
insure against long-term, and largely
irreversible, consequences.
FIGURE 2. AVERAGE GLOBAL SURFACE TEMPERATURE
PAST VARIATIONS AND PROJECTIONS, 1000-2100
LJJ
Q
"There is new and stronger
evidence that most of the
warming observed over the
last 50 years is attributable
to human activities."
— IPCC 2001
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SUMMARY OF PROGRAM ACHIEVEMENTS
Summary of Program Achievements
Through 2000
EPA's climate protection partnerships achieved substantial environmental and economic results in 2000,
exceeding their goals for reductions in greenhouse gas emissions under the nations Climate Change
Action Plan (CCAP).1 The major environmental and economic achievements across these programs,2
based on actions that partners have taken through the end of 2000, are summarized below.
Environmental Benefits
• In 2000 alone, reductions of greenhouse gas emissions totaled 35 million metric tons of carbon
equivalent^ (MMTCE)—the same as eliminating the emissions from almost 25 million cars.
• Emissions of almost 160,000 tons of nitrogen oxides (NOX) were prevented in 2000—equivalent
to the emissions from more than 100 power plants.
FIGURE 3. ACTUAL DIVISION CARBON
REDUCTIONS COMPARED TO ANNUAL
PERFORMANCE GOALS
YEAR
TARGET
Source: EPA Climate Protection
'00
ACTUAL
ips Division
• Emission reductions averaging
about 33 MMTCE per year
between now and 2010 were
locked in, based on actions already
taken by partners.
Economic Benefits
• Locked-in expenditures on energy-
efficient technologies exceeding
$11 billion.
• Cumulative net energy bill savings
for consumers and businesses of
over $60 billion through 2010—
an average net savings of more
than $4.5 billion per year from
2000 through 2010.
Each of EPA's climate protection partnerships has annual performance goals that were set through an interagency process in
1997. Goals for the years 2000, 2005, 2010, and 2020 were communicated to the Secretariat of the Framework Convention
on Climate Change in the Climate Action Report of 1997.
This report provides results for the climate protection partnership programs operated by the Office of Atmospheric Programs
at EPA (not including the State and Local Outreach Program). It does not include emission reductions attributable to
Waste Wise, transportation programs, the Significant New Alternatives Program, or the landfill rule, which are the remaining
EPA actions that constitute EPAs responsibilities within the nation's Climate Change Action Plan (CCAP).
^ Reductions in annual greenhouse gas emissions for all EPA programs, including non-CO2 gases, are expressed in "carbon
equivalents," which are determined by weighting the reductions in emissions of a gas by its global warming potential for a
100-year period.
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CLIMATE PROTECTION PARTNERSHIPS DIVISION 2000 ANNUAL REPORT
Program Effectiveness
Every federal dollar spent on these partnership programs through 2000 means:
• Reductions in greenhouse gas emissions of 1.0 metric ton of carbon equivalent (3.7 tons of CO2)
• Savings for partners and consumers of more than $75 on their energy bills.
• The creation of more than $15 in private sector investment.
• The addition of over $60 into the economy.
FIGURE 4. ANNUAL SAVINGS IN ENERGY USE AS
A RESULT OF THE DIVISION'S PARTNERSHIP
PROGRAMS
'95
YEAR
'96 '97 '98 '99 '00
Source: EPA Climate Protection Partnerships Division
Key Accomplishments
• The ENERGY STAR program saved 74 billion kilowatt hours
(kWh) in 2000 alone (20 percent greater energy savings than
expected under the nation's CCAP*) and more than 10,000
megawatts (MW) of peak power.
• The ENERGY STAR label has become a national symbol for
energy efficiency and is recognized by more than 40 percent of
the American public.
• More than 1,600 manufacturers produced a total of 11,000
individual product models in 33 product categories that were
ENERGY STAR compliant.
• Americans bought over 120 million ENERGY STAR products in
2000, contributing to the more than 600 million ENERGY STAR
products bought throughout the past decade.
• Organizations representing approximately 17 percent of the
U.S. building floor space have partnered with ENERGY STAR as
a commitment to improve their energy performance.
A new national energy performance rating system was used to evaluate the energy efficiency
of more than 4,200 buildings, and 330 office buildings and 215 schools earned the
ENERGY STAR label.
More than 1,600 builder partners constructed over 25,000 ENERGY STAR labeled homes, locking
in financial savings for homeowners of more than $7.5 million annually.
An international agreement was finalized allowing the European Community to implement an
energy efficiency labeling program for office equipment modeled after ENERGY STAR.
Partnership programs achieved reductions of non-carbon dioxide (CO2) gases—methane,
perfluorocarbons (PFCs), hydrofluorocarbons (HFCs), and sulfur hexafluoride (SF6)—totaling
more than 17 MMTCE in 2000 alone.
The number of landfill gas-to-energy projects grew from fewer than 100 in the early 1990s to
almost 320 projects by the end of 2000.
The Voluntary Aluminum Industrial Partnership met its aggressive goal for 2000 with emissions
reduced about 45 percent relative to 1990 levels, on an emissions per unit of production basis.
Each partnership program, including ENERGY STAR, was expected to deliver specific reductions in greenhouse gas emissions.
ENERGY STAR was expected to reduce energy use by 60 billion kWh and reduce CO2 emissions by 12.8 MMTCE. The
actual 2000 reductions were 74 billion kWh and 15.2 MMTCE.
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SUMMARY OF PROGRAM ACHIEVEMENTS
Estimation of Environmental and Economic Benefits
The environmental and economic benefits from EPA's partnership programs are presented in greater
detail below. EPA provides these benefits for three key program areas: ENERGY STAR, Methane Programs,
and the Environmental Stewardship Programs for the high GWP gases.
The environmental and economic benefits reflect the stream of greenhouse gas emission reductions and
energy bill savings that will persist through 2010 from the technology investments and product
purchases made through the year 2000 due to these partnership efforts.
TABLE 2. SUMMARY OF THE CUMULATIVE BENEFITS THROUGH 2010 FROM THE ACTIONS TAKEN BY
PARTNERS THROUGH 2000 (IN BILLIONS OF 2000 DOLLARS)
Program
Bill Savings
Technology
Expenditures
Net Savings
GHG Reductions
(MMTCE)
ENERGY STAR
Labeled Products $39.6
Building and Industrial $27.6
Improvements
Methane Programs $5.5
Environmental
Stewardship Programs
TOTAL $72.7
$1.6
$7.1
$2.7
$38.0
$20.6
$2.7
94
65
139
148
$11.4
$61.3
447
NOTES: Technology Expenditures include O&M expenses for methane programs.
Bill Savings and Net Savings include revenue from sales of methane and electricity.
Totals may not equal sum of components due to independent rounding.
—: Not applicable.
The Endnotes of this Annual Report (see inside back cover) provide more detailed documentation of
the estimation methology and the assumptions used in measuring the performance of the partnership
programs. A few key methodological concepts and assumptions are summarized below.
Stream of Benefits
In Table 2, the benefits are presented through 2010 for investments and program actions that have
been "locked-in" through the end of 2000. The table shows the locked-in benefits from efficiency
improvements that current partners have completed (or, in the case of ENERGY STAR labeled products,
products that have already been purchased) plus expenditures and benefits that are due to the
persistence of the market transforming activities already undertaken by the Division. In Table 2, the
effect of this persistence is modeled by keeping energy savings constant between 2000 and 2010. For
long-lived equipment, such as lighting fixtures, transformers, and homes, this means no additional
purchases after 2000; for shorter lived items such as computers, fax machines, and audio equipment, it
means replacement only to the level that would keep total energy savings at 2000 levels. Programs that
have a small number of partners, such as Natural Gas STAR and Landfill Methane, are modeled using
only current projects or projects for which partners have signed commitments.
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CLIMATE PROTECTION PARTNERSHIPS DIVISION 2000 ANNUAL REPORT
Emissions Prevented
Many of the Divisions programs focus on energy efficiency. For these programs, EPA estimated the
expected reduction in electricity consumption in kilowatt-hours (kWh). Emissions prevented are
calculated as the product of kWh of electricity saved and an annual emission factor (e.g., MMTCE
prevented per kWh). Other programs focus on directly lowering greenhouse gas emissions (e.g., Natural
Gas STAR, Landfill Methane Outreach, and Coalbed Methane Outreach); for these, greenhouse gas
emission reductions were estimated on a project-by-project basis.
Energy Bill Savings
Energy bill savings are calculated as the product of the kWh of energy saved and the cost of electricity
for the affected market segment (residential, commercial, or industrial taken from EIAs Annual Energy
Outlook 2001 and Annual Energy Review 2000) for each year in the analysis (1993-2010). Energy bill
savings also include revenue from the sale of methane and/or the sale of electricity made from
captured methane.
Expenditures on Energy-Efficient Technologies
For most of its programs, the Divisions estimate of expenditures on energy-efficient technologies is based
on the partners' capital cost of energy-efficient equipment, including the cost of financing. For ENERGY
STAR labeled products, investment was taken as the increase in cost, if any, of purchasing ENERGY STAR
products. Expenditures on this equipment include the cost of financing the equipment over the life of
the equipment. In all cases equipment purchases are assumed to be financed at a 7-percent real rate of
interest by the private sector and a 4-percent real rate of interest by the public sector.
Net Savings
Net savings is the difference between energy bill savings and expenditures on energy-efficient
technology. It represents the increase in the amount of money that partners and ENERGY STAR product
consumers have available to invest in the economy as a result of participating in the Divisions programs.
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ENERGY STAR PROGRAM
ENERGY STAR Program
Energy Efficiency is Smart Investment
American families and businesses spend over $600 billion each year on energy bills—more than one and
a half times what is spent on K-12 education. Energy efficiency offers great potential for reducing these
energy costs and reducing greenhouse gas emissions, while enhancing economic growth. More than 50
percent of projected energy use (and carbon dioxide emissions) 10 years from now will come from the
use of equipment purchased between now and then (see Figure 5).
Choosing the energy-efficient solution at these purchase or
investment points has the potential to reduce the nations energy
bill by approximately 9 percent from business-as-usual in 2010
(EERE, 2000).
Money Isn't All You're Saving
FIGURE 5. MORE THAN 50% OF PROJECTED ENERGY USE
10 YEARS FROM NOW WILL COME FROM EQUIPMENT
PURCHASED BETWEEN NOW AND THEN
Many homeowners and businesses could use 30-percent less
energy, without sacrificing services or comfort, by investing in
energy efficiency. And many of these purchases or investments
offer financial returns potentially worth more than double the return of other common options, such as
money market funds or U.S. Treasury bonds. However, the potential of energy efficiency is not being
fully realized in the market due
to a variety of reasons.
With relatively low energy
prices in the United States,
many organizations have
focused much less on energy
efficiency improvements and
more on improvements in
labor productivity or capital
productivity. And while many
businesses and homeowners
express interest in making
energy efficiency investments
for their own buildings and
homes, they do not know which
products or services to ask for,
who supplies these products in
their areas, and whether the real
energy savings will live up to
the claims.
2,500
2,000
COMMERCIAL/
RESIDENTIAL
TRANSPORTATION
INDUSTRY
• NEW STOCK PURCHASES
• EXISTING EQUIPMENT STOCK
Source: EPA Climate Protection Partnerships Division
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CLIMATE PROTECTION PARTNERSHIPS DIVISION 2000 ANNUAL REPORT
The ENERGY STAR program enables businesses, organizations, and consumers to realize the cost
savings and environmental benefits of energy efficiency investments through a straightforward market-
based approach:
• Use the ENERGY STAR label to clearly identify which products, practices, new homes, and
buildings are energy efficient—offering lower energy bills and environmental benefits.
• Empower decisionmakers by making them aware of the benefits of labeled products, homes, and
buildings and providing energy performance assessment tools and project guidelines for efficiency
improvements.
• Work with retail and service companies in the delivery chain so that they can easily offer efficient
products and services.
• Partner with regional, state, and local organizations that are running energy efficiency programs so
that these programs leverage the national energy efficiency specifications and public awareness of
ENERGY STAR and achieve more with their resources.
Introduced by EPA in 1992 for energy-efficient computers, the ENERGY STAR label has been expanded
to more than 30 product categories. Since the mid-1990s, EPA has collaborated with the U.S.
Department of Energy (DOE), which now has responsibility for certain product categories. Efficient
new homes and efficient commercial buildings became eligible for the label in 1995 and 1999
respectively. The potential benefits from full use of the ENERGY STAR platform over the next 10 years are
tremendous:
• If everyone in the country bought only ENERGY STAR products during the next decade, the nation
would slash its cumulative energy bill by more than $100 billion and reduce greenhouse gas
emissions by more than 300 MMTCE.
• If all commercial and industrial building owners implemented the ENERGY STAR strategy during
the next decade, they would shrink their cumulative energy bill by $130 billion and reduce
greenhouse gas emissions by more than 350 MMTCE.
Contribution of Energy Efficiency to Electric System Reliability
The recent power outages in California, along with last summer's outages in New York City, Chicago,
and New Orleans, have heightened awareness of the relationship between electric system reliability
and energy efficiency. The North American Electric Reliability Council defines the reliability of electric
systems in terms of two basic, functional aspects: (1) Adequacy—the ability of the electric system to
supply the aggregate electrical demand and energy requirements of the customers at all times; and
(2) Security—the ability of the system to withstand sudden disturbances.
By reducing demand, energy efficiency is a low-cost (2-3 cents/kWh) contributor to system
adequacy because it reduces the base load as well as the peak power demand. This reduction in
peak power demand can also contribute to system security by reducing the load and stress at
various points in the power distribution system, thereby decreasing the likelihood of failures. One
additional benefit of demand reductions is their ability to moderate electricity price spikes, reducing
not only private costs for individual consumers, but also the market clearing price for delivered
energy, thereby providing monetary benefits to all (Raynolds and Cowart, 2000).
A new report by the American Council for an Energy Efficient Economy, Using Targeted Energy
Efficiency Programs to Reduce Peak Electrical Demand and Address Electric System Reliability Problems,
includes recommendations for six programs whose savings would total more than 60,000 MW by 2010
if deployed nationwide—or about 40 percent of the overall increase in demand projected by the
North American Electric Reliability Council. The proposed efficiency programs could also reduce
peak demand for participating customers by 5-15 percent without reducing comfort or service.
10
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ENERGY STAR PROGRAM
The economic and environmental benefits of ENERGY STAR through the year 2000 are already
substantial. More than 600 million ENERGY STAR labeled products have been purchased and billions
of square feet of building space improved. The results across the ENERGY STAR program in terms of
energy saved and greenhouse gases avoided in 2000 are provided in Table 3. Additional program
achievements within the residential, commercial, and industrial sectors are presented in the sections
beginning on page 12.
TABLE 3. ENERGY STAR PROGRAM: ANNUAL GOALS AND ACHIEVEMENTS
2000 2001
Energy Saved Emissions Prevented Energy Saved Emissions Prevented
(Billion kWh) (MMTCE) (Billion kWh) (MMTCE)
Goal Achieved Goal Achieved Goal Goal
Commercial/Residential Buildings 60.3
Labeled Products 34.9
Computers
Copiers
Residential Lighting Fixtures
Building Improvements 25.4
4
Industrial Improvements
74.0 12.8 15.2 75.3
42.4
3.0
21.5
6.0
1.1
3.4
1.8
2.1
2.0
1.5
31.6
7.3 8.8 41 .0
0.6
0.2
0.7
0.4
5.5 6.4 34.2
1 .8 3.0
15.1
8.2
6.9
2.0
1 Results for office equipment from Webber et al., 2001.
The kWh savings imply peak demand savings of 4.5 gigawatts (GW) for labeled products and 6.8 GW for building improvements, based on
conservation load factors developed by LBNL (Koomey et al., 1990).
^ Results for building improvements from Horowitz, available October, 2001.
^ Results for industrial improvements from Dutrow, 2001.
— : Not applicable.
The ENERGY STAR label is being adopted in countries around the world. The year 2000 saw the signing
of an international agreement allowing the European Community to implement an energy efficiency
labeling program for office equipment modeled after ENERGY STAR, and in 2001 EPA expects to enter
into an agreement with Natural Resources Canada allowing it to implement an energy efficiency
labeling program modeled after ENERGY STAR for commercial and residential products.
1 1
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CLIMATE PROTECTION PARTNERSHIPS DIVISION 2000 ANNUAL REPORT
ENERGY STAR IN THE RESIDENTIAL SECTOR
ENERGY STAR continues to deliver and develop new energy efficiency solutions for homeowners across
the country. ENERGY STAR grew through the year 2000 by:
Building and expanding partnerships with manufacturers to add new products that
can earn the ENERGY STAR label. EPA added new products such as set-top (cable) boxes and
dehumidifiers to the ENERGY STAR family in 2000, bringing the total to 33 product categories, of which
25 are routinely used in the home. ENERGY STAR partners with more than 1,600 manufacturers, and the
label appears on more than 11,000 product models. ENERGY STAR includes products that represent over
60 percent of energy use in the average household, so families can reduce their energy bills by up to
$400 per year by purchasing currently available products that also improve home comfort.
SET-TOP BOX
Building consumer awareness of the ENERGY STAR label as
the national, government-backed symbol for energy
efficiency. Recent surveys show that more than 40 percent of
consumers nationwide recognize the ENERGY STAR label.
Expanding the use of the ENERGY STAR label on efficient new
homes. ENERGY STAR labeled homes provide comfort, value, and savings to homeowners and increased
profits for homebuilders, while protecting the environment. In 1995, the ENERGY STAR label became
available for new homes that are 30 percent more energy efficient than homes built to the national
model energy code. Since then, more than 1,600 builders have joined the partnership program.
They have built more than 25,000 ENERGY STAR labeled homes, at a pace that has doubled each year,
and homeowners are now saving $7.5 million annually on their utility bills. Much of this success results
from promotional campaigns with key allies in three of the leading new homes markets—Phoenix/
Tucson, Las Vegas, and Indianapolis—which have netted additional builders, increased awareness of
ENERGY STAR, and brought ENERGY STAR to 10 percent of new housing starts in one of these markets.
2000 ENERGY STAR Award Winner: Southwest Gas Corporation
ENERGY STAR utility partner Southwest Gas Corporation (SWG) is one of the fastest growing
natural gas distribution companies in the country, providing service to more than 1.3 million
customers in Arizona, California, and Nevada. Southwest Gas has leveraged its high visibility
and credibility to form powerful alliances with home energy rating providers and builders and
to help educate prospective home buyers about the benefits of ENERGY STAR labeled homes.
SWG's partnership with ENERGY STAR is having a significant impact in SWG's service territory.
For example, it is estimated that over 17,000 new homes are committed to ENERGY STAR in
the Phoenix area alone. The local alliances that Southwest Gas has created in Phoenix and
Las Vegas have become the model for other cities to follow for delivering the benefits of
ENERGY STAR labeled homes.
12
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ENERGY STAR PROGRAM
Developing home improvement opportunities beyond labeled products. EPA continued
to explore the potential for developing energy performance specifications for parts of the home such as
duct systems. The loss of warmed or cooled air through leaky ducts accounts for up to 20 percent of the
home energy bill. These losses can be turned into savings when ducts are sealed to prescribed levels. EPA
has partnered with several utilities to refine the duct sealing performance specification and to lay the
groundwork for new consumer-oriented materials (see page 15).
Providing new consumer friendly home improvement tools. EPA launched the ENERGY
STAR home improvement program, featuring an online "toolbox" to help homeowners improve the
energy performance of their homes during repair, remodeling, or renovation. This toolbox includes a
benchmarking tool that helps homeowners assess their home's energy
performance compared to other homes, and a Web-based audit that
recommends the top five energy efficiency improvements that can be made
to their home.
Working with retailers and regional, state, and local
organizations to assist them in effectively highlighting and
promoting ENERGY STAR labeled products in retail stores and
through key state-level energy efficiency programs. EPA worked
with more than 100 utilities and state energy efficiency providers that serve
approximately 50 percent of the households in the United States in
promoting energy efficiency with the ENERGY STAR label. More than 60 of them promoted ENERGY
STAR labeled homes as part of their residential construction programs. EPA also partners with over 550
retailers in promoting ENERGY STAR labeled products in 7,000 storefronts across the country.
Regional Partners: NYSERDA's Accomplishments
The New York State Energy Research and Development Authority (NYSERDA), a public
benefit corporation created in 1975 by the New York State Legislature, joined with EPA and
DOE as an ENERGY STAR partner in November 1998. NYSERDA is using the ENERGY STAR logo,
name, and energy efficiency messages to promote the environmental and economic benefits
of energy efficiency investments. NYSERDA's strategy, across all ENERGY STAR programs, is to
create real consumer demand through public awareness and marketing, while building a
sustainable mid-stream infrastructure to deliver ENERGY STAR products and services.
Through the New York Energy $martSM program, NYSERDA partners with retailers,
manufacturers, and remodelers/contractors to promote ENERGY STAR as a vehicle to deliver
energy efficiency. This collaboration includes 592 retail partners, 52 remodeler partners, and
10 manufacturers. Governor George Pataki has taken a lead role in promoting ENERGY STAR
as the best way for consumers to recognize energy-efficient products.
These efforts have been remarkably successful. Under NYSERDA's Appliance and Lighting
program, New York has documented more than 350,000 ENERGY STAR product purchases
attributable to their mid-stream support, marketing, and public awareness efforts.
NYSERDA estimates its efforts under the New York Energy $martSM program have saved
approximately 5.2 megawatt hours in the residential sector from program inception in 1998
to March 2001. These efforts serve as an outstanding model for other regional, state, and
local organizations.
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CLIMATE PROTECTION PARTNERSHIPS DIVISION 2000 ANNUAL REPORT
In 2001, EPA will:
• Add new products to the ENERGY STAR family. Candidate products include ventilation fans,
ceiling fans, and telephony. EPA will also update the performance specifications for products in
cases where technology has advanced and updates are necessary to maintain the integrity of the
ENERGY STAR label.
• Continue to build consumer awareness of the ENERGY STAR label through a new public awareness
campaign, with the goal of raising awareness of the label to more than 45 percent.
• Work with home builders and allies to build 25,000 ENERGY STAR labeled homes in 2001, by
(1) expanding promotional campaigns to Dallas and Houston, while building on the momentum
in Phoenix, Las Vegas, and Indianapolis; (2) expanding ENERGY STAR in the modular and
manufacturing housing industry; and (3) increasing the use of the ENERGY STAR
label by the large national builders.
• Expand the set of home improvement tools to
include guidelines for improving the major systems of a
home so that the homeowner can see the greatest energy cost
savings. Systems will include the home envelope (steps
to take to keep warmed or cooled air in the home)
and the heating and cooling system (efficiently
conditioning and delivering cooled or heated air to where it is wanted). EPA
will work with regional partners to explore and refine these guidelines.
Work with retail partners, utilities, and states in broad promotions of ENERGY STAR labeled
products and homes, with special emphasis on ENERGY STAR labeled lighting and residential
heating and cooling equipment.
"Sears is very proud to be part of the ENERGY STAR program. We are by far the largest
retailer of home appliances in the nation, and we are committed to increasing
consumer awareness about the benefits of using ENERGY STAR products."
— Tina Settecase, Vice President, Sears, Roebuck & Co., Hoffman Estates, IL
2000 ENERGY STAR Award Winner: Sears, Roebuck & Co.
Sears, Roebuck & Co. effectively promotes a wide range of ENERGY STAR labeled products
from appliances, office equipment, and home electronics to HVAC equipment and window
products. Last year, Sears pledged to sell more than one million ENERGY STAR qualified
appliances. The company exceeded this goal by promoting ENERGY STAR in over 1,500 stores
nationally. Sears' success is the result of a strong commitment to working with ENERGY STAR
utility and market transformation groups across the country, offering comprehensive sales
training programs for its sales staff, and directing its vendors to supply ENERGY STAR qualified
products. Sears has also demonstrated an ongoing commitment to educate its consumers
by airing the ENERGY STAR public service announcement on in-store displays, reaching
more than 26 million viewers in the last half of 2000, and by using the ENERGY STAR logo in
weekly advertising.
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ENERGY STAR PROGRAM
RECOMMENDED
The ENERGY STAR Whole House Approach: Residental HVAC Sizing and Ducts
Research shows that proper sizing, installation, and maintenance of HVAC equipment are major factors in
operating efficiency and cost savings. Proper sizing and installation of the equipment can result in energy savings
of up to 35 percent for air conditioners and 16 percent or more for furnaces. In 2000, EPA began to promote
this total HVAC system approach, including proper sizing and installation of the equipment and sealing
of the ducts that deliver the warmed or cooled air to where it is
needed. EPA is partnering with the Consortium for Energy Efficiency
(GEE) and National Association of Technicians for Excellence (NATE)
to promote CEE's Specification of Energy-Efficient Installation and
Maintenance Practices for Residential HVAC Systems to
contractors. The specification is a clear, accepted definition of an
energy-efficient installation. EPA is also in the pilot phase of a
performance specification for home duct systems, a major part of
the HVAC system. Properly sealed and insulated ducts can save
up to 20 percent on heating and cooling bills and benefit
consumers in the following ways: (1) adding comfort by
distributing air evenly throughout the home, (2) protecting against
combustion back drafting, and (3) preventing outside pollutants
from entering the home.
The following businesses and organizations are participating in
this pilot: Sacramento Municipal Utility District; Austin Energy;
Bodine-Scott Air Conditioning Company; Ongaro & Sons Inc.;
Conservation Services Group; TSC, Inc.; enalasys; and Albermarle
Heating and Air Inc. These pilot participants cover different
climates nationally and different sealing methods. They will
provide feedback on the feasibility of meeting the specification
and feedback on new ENERGY STAR marketing tools for contractors
and consumers.
wo
Federal Partners: DOE's Building America Program
The U.S. Department of Energy's (DOE) Building America Program is a
set of private-public partnerships that accelerate the adoption of energy-
efficient technologies and best building practices in production-built
housing. This effort involves five teams from more than 50 specialist
companies working with builders across the country on a systems engineering approach to energy efficiency.
These teams have demonstrated technical innovations that achieve high energy performance with no or minor
additional construction cost. More than 2,000 ENERGY STAR labeled homes have been built as a result. EPA's ENERGY
STAR perfectly complements DOE's effort by increasing the market awareness for energy-efficient homes and
providing successful builders with a competitive advantage for their labeled homes. DOE's Building America and
ENERGY STAR are working together to provide a complete solution for the building industry. And American home
buyers are saving thousands of dollars in ownership costs while living in homes with better comfort, durability,
and air quality.
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CLIMATE PROTECTION PARTNERSHIPS DIVISION 2000 ANNUAL REPORT
ENERGY STAR IN THE COMMERCIAL SECTOR
ENERGY STAR continues to develop and provide innovative energy efficiency solutions to the commercial
sector. ENERGY STAR grew through the year 2000 by:
Building and expanding partnerships to add new commercial products to the ENERGY
STAR family. Water coolers and traffic signals were added in 2000 to the list of commercial products
that can earn the ENERGY STAR label.
Expanding the innovative national building energy performance rating system that
benchmarks the efficiency of a building and allows the ENERGY STAR label to be earned
by high energy performing buildings. Achieving energy efficiency in the commercial market is
more difficult than simply filling a building with ENERGY STAR
equipment. Significant building efficiency can result only from
designing and operating major building systems in an integrated,
complementary fashion. To help building owners better understand
and measure the energy performance of the whole building, EPA
introduced a national building energy performance rating system in
1999, which compares the energy performance of an individual
building against the national stock of similar buildings. Other than
building codes, which focus only on building component and system
efficiency, no consistent or comparable metric existed for whole
building performance. In 2000, the rating system was expanded to
include both office buildings and schools (K-12). By year end,
215 schools had earned the ENERGY STAR label representing more
than 15 million square feet of space, in addition to 330 office buildings. More than 4,200 buildings
(office and K-12) were benchmarked.
2000 ENERGY STAR Award Winner: Verizon
Verizon, one of the world's leading providers of communications services, has dedicated an
energy team of a dozen management employees to focus entirely on the wide range of
energy issues affecting this Fortune 10 company. Team Energy meets quarterly with
department heads across the business. As the Energy Board of Directors, they develop,
implement, and sustain a world class energy program. Verizon's program features a
corporate purchasing policy, a strong employee communications effort, energy audits and
reviews of the most wasteful buildings, system design, data tracking, and investigation of
alternative clean fuel sources, such as fuel cells. Verizon uses ENERGY STAR to benchmark its
administrative facilities and then to prioritize and motivate facilities to bring their energy
standards to a higher level. Verizon projects a savings of over $20 million annually from more
than 14,000 energy-reduction projects implemented in over 60 percent of its facilities in 2000.
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ENERGY STAR PROGRAM
National Building Energy Performance Rating System
The national building energy performance rating system, which was first offered for office buildings in 1999, became
available for schools in 2000. To earn the ENERGY STAR label, schools must be among the top 25 percent most efficient in
the country and meet important indoor environment quality targets. Almost 1,700 school buildings were benchmarked in
2000, and 215 earned labels. Through 2000, about 2,500 office buildings were benchmarked with 330 earning labels.
Schools that make energy-efficient improvements can cut costs by an estimated 25 to 30 percent on average. The first
nine school districts to receive the ENERGY STAR label were announced at the Eleventh Annual Energy Efficiency Forum in
June 2000:
San Diego Unified School District California
Academy School District 20 Colorado
Boulder Valley Public Schools Colorado
New Haven Public Schools Connecticut
Kansas City Public Schools Kansas
Columbia Public Schools Missouri
McAllen Independent School District Texas
Marion Public Schools West Virginia
Milwaukee Public Schools Wisconsin
"In general, we're ahead of the curve on energy conservation. Many of our schools are
the exact same layout, and while one scored 100, one scored below 75. It may turn out
that the air-conditioning is running all day at that school and the lights are on all
night, but now we can go back and look at the historical data and find the red flags."
— Joe Cochran Jr., Energy/Utility Inspector, San Diego Unified School District, CA
2000 ENERGY STAR Award Winner: Arden Realty, Inc.
Arden Realty, Inc., a self-administered real estate investment trust, is the largest landlord of
office properties in Southern California. Arden has earned an ENERGY STAR award for two
consecutive years. The key to Arden's success is its top-down management commitment
that continually looks for ways to improve the performance of its properties through
benchmarking and linking energy improvements to the financial value of its business. Arden
now displays the ENERGY STAR label on 80 properties, more than doubling the number of
properties that qualified for ENERGY STAR in 1999. In the forefront of adopting new approaches
to accomplish its goals, Arden recently announced the installation of the largest solar array
on an office property in the Western Hemisphere. Arden Realty's commitment to
improvement has saved 50 million kWh of electricity and avoided 9 MW of demand.
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CLIMATE PROTECTION PARTNERSHIPS DIVISION 2000 ANNUAL REPORT
EPA also focused on the construction of new energy-efficient buildings. While new
buildings could use up to 70-percent less energy by taking advantage of today's high-
efficiency technologies, in reality the newest stock of buildings does not perform any better
than the existing stock. This poor performance results from owners not knowing what the
energy consumption of a well-designed new building should be and not verifying that the
new building actually performs at the design intent. As of 2000, ENERGY STAR now
provides energy performance targets to architects, engineers, and building owners so that
they can capture the potential energy savings in new buildings.
Expanding partnerships with organizations, large and small, public and
private, to provide them with effective energy efficiency investment tools.
Through 2000, EPA partnered with organizations representing approximately 17 percent
of the U.S. building floor space who have committed to improving their energy
performance. Among others, EPA has partnered with: (1) almost 2,900 small businesses
and organizations to lower their overhead through lower energy bills; (2) more than 70 commercial real
estate companies representing over 2.25 billion square feet of building space—an estimated 80 percent
of the office properties market; (3) almost 250 universities and about 200 school districts, including the
Los Angeles Unified School District which alone has more than 650 schools, to bring superior building
performance into the classroom; and (4) about 200 local and state governments, helping them overcome
key financing and budgeting barriers, which continue to be a major hurdle to energy efficiency projects
in the public sector, by delivering financing training to 60 of these partners.
Also in 2000, four influential commercial real estate industry associations, including the National
Association of Real Estate Investment Trust (NAREIT) and the Society of Industrial and Office Realtors
(SIOR), agreed to make ENERGY STAR available to their members.
EPA continued to work with the energy services industry and assist these companies in integrating the
national energy performance rating system into their service offerings. The energy services industry
benchmarked almost 750 buildings, submitted more than 50 label applications, and provided
professional engineer (PE) verification on over 300 labeled buildings.
EPA launched 10 pilots with utilities, states, and regional energy efficiency program managers to
integrate into their activities the national energy performance rating system provided by ENERGY STAR.
Examples include the following:
• California utilities agreed to provide electronic billing data for customer energy performance ratings.
• The State of Wisconsin specified ENERGY STAR as the commercial sector delivery platform for the
states public benefits program.
2000 ENERGY STAR Award Winner: Servidyne Systems, Inc.
For 25 years, Servidyne Systems, Inc., has provided building owners and managers with
products and services that make building operations more efficient in terms of energy use,
occupant satisfaction, and labor productivity. Servidyne pioneered energy benchmarking in
the early 1980s and has adopted ENERGY STAR as a natural way to recognize clients, as well
as focus attention on achieving a reduction goal. Servidyne uses benchmarking as the basis
for long-term energy efficiency improvements and continues to be a leader in the industry for
improving its clients' energy efficiency. In 2000, Servidyne benchmarked 94 of its clients'
facilities and helped to provide services that led to the award of an ENERGY STAR label on
38 buildings.
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ENERGY STAR PROGRAM
• The Consortium for Energy Efficiency launched a national effort to foster integration of the
performance rating system into member utility programs.
• NYSERDA benchmarked more than 1,000 schools to identify opportunities for energy
performance improvements in districts throughout New York.
• The Building Operator Certification Program incorporated the rating system and portfolio
manager into curriculum for use in training facility managers on energy-efficient
operations practices.
In 2001, EPA will:
• Add new products for the commercial marketplace to the ENERGY STAR family. Candidate
products include light commercial heating and cooling equipment and reach-in refrigerators and
freezers.
• Develop building energy performance rating systems for four additional space types, such as
convenience stores, grocery stores, hospitals, lodging, or warehouses.
• Continue to partner with state and local governments, school systems, small businesses, and the
entire private sector to provide them with energy efficiency solutions. EPA will promote the new
building energy performance rating system and expects to work with building owners and
managers to rate 5,000 additional buildings in 2001 and qualify an additional 1,250 buildings as
ENERGY STAR. EPA will also promote a new and easy-to-use
power management tool for computer monitors. Although
ENERGY STAR labeled monitors account for 95 percent of
monitors sold, many businesses and consumers disable
the power management feature due to misinformation in
the marketplace.
• Continue working with energy service providers to integrate
the national energy performance rating system into their
service offerings.
• Continue to collaborate with utilities, states, and regional
program implementers to promote the national energy
performance rating system provided by ENERGY STAR, including the launch of 10 new pilots.
Efforts will involve the Northwest and Midwest and an innovative partnership with the California
Energy Commission to rate building energy performance in conjunction with a new state
real-time pricing initiative designed to curb peak load.
"Energy efficiency has become an important benchmark for our entire portfolio.
For us the ENERGY STAR label signals to our tenants and investors that we're
capitalizing on an extraordinary opportunity to make our buildings environmentally
and fiscally sound."
— 77m Callahan, President and Chief Executive Officer, Equity Office Properties, Chicago, IL
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CLIMATE PROTECTION PARTNERSHIPS DIVISION 2000 ANNUAL REPORT
Partnership Program Evaluation
EPA devotes considerable effort to obtaining the best possible information on which to evaluate emission reductions
from voluntary programs. Below are summaries of efforts undertaken by EPA in three areas of the ENERGY STAR program.
Evaluating Office Equipment Energy Savings
Office equipment was the first in a long line of ENERGY STAR labeled products,
and this equipment is responsible for a large portion of the energy and carbon
savings achieved by the program over the years. To assess the impacts of this
important part of the ENERGY STAR program, EPA used market data (estimated by
a leading industry analyst firm) on shipments of both ENERGY STAR and non-
ENERGY STAR labeled equipment, field-measured data on the power levels for
this equipment in different operating modes (e.g., active, sleep, off), as well
as survey data on equipment operating patterns, lifetimes, and ownership
_ levels. EPA combined these data with survey data on the percentage of the
labeled equipment that was correctly enabled and saving energy in the field.
The reliance on market data, survey data, and state-of-the-art field measurements ensures the accuracy of the
estimates. Because technology in this particular market changes so rapidly and because of the importance of this
equipment to the overall results of the Climate Protection Partnerships Division, the data collection and analysis efforts
are ongoing.
Evaluating the Green Lights® Program
To evaluate the climate protection benefits of EPA's Green Lights program (now part of
ENERGY STAR), EPA conducted a long-term statistical analysis of the market for energy-
efficient lighting products. The economic methodology used observed shipment values
and shipped quantities to differentiate market effects from public programs' effects,
and then employed published data sources to separate the impacts of EPA's programs
from those of other energy efficiency programs. The EPA impacts are referred to as
market transformation because the intent of EPA's public-private voluntary partnerships
is to encourage the formation of self-sustaining markets for energy-efficient products
and services, rather than temporarily increase demand through financial subsidies.
Using four decades of data related to fluorescent lighting ballasts, this Green Lights
program evaluation derived price elasticity and relative price response estimates
associated with the quantities demanded and market shares of electronic ballasts. National energy savings and climate
protection impacts associated with Green Lights market transformation efforts through the year 2000 were derived using
engineering algorithms.
Measuring Results in the Industrial Sector
Reductions in carbon dioxide emissions are estimated based on ENERGY STAR
partners' reports to the Voluntary Reporting of Greenhouse Gases Program
managed by DOE. Partners are encouraged to report on energy reduction
activities they have completed in a given year for either individual projects or for
an entire organization. From these reports, only projects that are clearly identified
as activities that ENERGY STAR impacted are attributed to the program. EPA and
DOE work with reporting companies to ensure the reliability of the data.
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ENERGY STAR PROGRAM
V
ENERGY STAR IN THE INDUSTRIAL SECTOR
ENERGY STAR continues to provide energy efficiency solutions to the industrial sector. ENERGY STAR
grew through the year 2000 by:
• Integrating ENERGY STAR and the Climate Wise Partnership into one program to provide the
industrial sector with a more comprehensive set of industrial benchmarking and technical
assistance tools.
• Welcoming new partners to the program, for a combined total of 500 companies representing
14 percent of U.S. industrial energy use.
• Continuing technical support for small and medium enterprises; more than 40 percent of the
partner companies have 100 or fewer employees.
• Providing technical assistance to its partners by (1) helping U.S. companies to purchase renewable
energy; (2) supporting cement industry partners in the form of an enhanced emissions tracking
spreadsheet tailored to the unique needs of this industry; and (3) promoting opportunities for
green power purchasing, including green power workshops in Connecticut and New Jersey.
In 2001, EPA will:
• Enhance ENERGY STAR in the industrial sector by developing energy and related productivity
benchmarks of industrial plant performance for U.S. industries.
• Expand the peer-exchange networking opportunities for U.S. industry and ENERGY STAR partners
by holding national networking meetings.
• Continue to partner with industrial organizations, large and small, around a joint goal of
improved energy performance.
Lockheed Martin Corporation: A Model for Corporate
Energy Management
Lockheed Martin Corporation—a researcher, designer, developer, manufacturer, and integrator
of advanced technology systems, products, and services—recently instituted a model
corporate energy program and strategy. Using ENERGY STAR principles, Lockheed Martin
established a corporate energy policy, systems for measuring and benchmarking energy in
each business unit, an energy management plan addressing responsibilities and resources,
and systems for promoting awareness among all employees of better energy management.
Lockheed Martin's corporate energy managment system is geared toward continuous
improvement. Senior management review is a critical factor in ensuring that the company's
program succeeds. Recognized for having one of the first 100 ENERGY STAR labeled buildings,
Lockheed Martin saved 3 million kWh of electrical energy and more than $500,000 in electric
and gas costs at its Orlando Missiles and Fire Control facility in 2000 alone. Energy
improvements are underway and savings are being realized at the company's other
manufacturing sites, thus demonstrating that improved energy performance is good for
the environment and for business.
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CLIMATE PROTECTION PARTNERSHIPS DIVISION 2000 ANNUAL REPORT
ENERGY STAR Award Winners
ENERGY STAR
FOR BUSINESS
Partners of the
Year
Arden Realty, Inc.
Los Angeles, CA
ENERGY STAR
LABELED
PRODUCTS
Partners of the
Year
Alside
Cuyahoga Falls, OH
ENERGY STAR
LABELED HOMES
Partners of the
Year
Atlantic Design and
Construction
Gainesville, FL
Excellence in
Consumer
Education
Northwest Energy
Efficiency Alliance
Portland, OR
Pacific Gas &
Electric
San Francisco, CA
Participating
Electric and Gas
Utilities of the
Northeast Energy
Efficiency
Partnerships
Lexington, MA
Sacramento
Municipal Utility
District
Sacramento, CA
Wisconsin Energy
Conservation
Corporation
Madison, Wl
Excellence in
Corporate
Commitment
IBM Corporation
Armonk, NY
IMIWH 1 1 IW117I*?
Corporation
Beverly Hills, CA
Mines
Houston, TX
Johnson Controls,
Inc.
Milwaukee, Wl
Kingston School
District
Kingston, NY
M. J. Soffe
Company, Inc.
Fayetteville, NC
Servidyne Systems,
Inc.
Atlanta, GA
Shaw's
Supermarkets, Inc.
East Bridgewater, MA
University of
Missouri at
Columbia
Columbia, MO
University of
Virginia
Charlottesville, VA
Verizon
Albany, NY
Virtua Health
System
Camden, NJ
Canon USA, Inc.
Lake Success, NY
Harvey Industries
Waltham, MA
Maytag
Corporation
Newton, IA
National Coatings
Corporation
Camarillo, CA
Panasonic
Secaucus, NJ
Sears, Roebuck &
Co.
Hoffman Estates, IL
Viking Windows &
Patio Doors
Portland, OR
Whirlpool
Corporation
Benton Harbor, Ml
Technical
Innovation in
ENERGY STAR
AMD
Sunnyvale, CA
Intel Corp.
Folsom, CA
Barry Andrews
Homes
Bel Air, MD
Beazer Homes
Arizona
Tempe, AZ
Connecticut Light
and Power
West Springfield, CT
Guaranteed Watt
Saver Systems
West
Oklahoma City, OK
Southwest Gas
Corporation
Las Vegas, NV
Tierra Concrete
Homes
Pueblo, CO
Woods and
Associates
Las Vegas, NV
Excellence in
Home
Improvement
Bob Vila
fJ\J\J VIICI
COMBINED HEAT
AND POWER
The College of
New Jersey
Ewing, NJ
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CLEAN ENERGY PROGRAMS
Clean Energy Programs
GEOTHERMAL ENERGY
Energy use is fundamental to economic activity—powering our homes, businesses, and transportation
systems. Historically, increased economic growth has been driven primarily by energy produced from
fossil fuels, with the unintended consequence of increased air pollution and an
increased threat of climate change. A wide array of economically viable and
environmentally preferable clean energy technologies are available today, and
more will be available in the next few years. These technologies—including
solar and wind power, fuel cells, and microturbines—can effectively break
the link between increased energy use and harmful air emissions.
*.
Distributed generation technologies, such as combined heat and power
(CHP), offer the promise of producing electricity and heat in a
fundamentally different way through a dispersed set of smaller scale
generators providing power and heat at or near customer sites. CHP systems
generate electricity and capture waste heat, which is then used to heat and
cool buildings or provide steam in industrial processes. The use of waste heat
results in total system efficiencies of 70 to 90 percent—a considerable
performance gain over the 33-percent average efficiency of conventional
central station electricity plants.
COMBINED HEAT & POWER PARTNERSHIP
Through its Combined Heat & Power Partnership, EPA is facilitating the use of CHP technologies in
selected sectors. This effort initially targets a handful of state markets, and as the program progresses,
work will be expanded to other markets. EPA is focusing on small- and medium-sized CHP applications
by identifying candidate industrial and commercial hosts in the select state markets. Companies receive
information about the efficiency gains and improved environmental performance of CHP as well as
technical assistance.
In 2000, the CHP Partnership:
• Recognized the CHP ENERGY STAR Award winner, The College of New Jersey
• Continued to explore opportunities for regulatory flexibility in recognizing the environmental
benefits of CHP applications.
2000 CHP Award Winner: The College of
New Jersey
In 1999, The College of New Jersey replaced its existing
3.2 MW gas turbine with a 5.2 MW gas turbine. The
upgrade increased both output and efficiency of the
combined heat and power (CHP) unit while decreasing
air emissions. The benefits of this one project alone are
equivalent to removing the emissions from 4,000 cars.
Further, the improved efficiency of the plant allows it to
operate using 12 percent less fuel than modern separate
heat and power installations. EPA was proud to
recognize the important pollution prevention qualities of
this project by awarding the 2000 ENERGY STAR CHP
Award to The College of New Jersey.
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CLIMATE PROTECTION PARTNERSHIPS DIVISION 2000 ANNUAL REPORT
In 2001, EPA will:
• Launch a national CHP partnership, working with industrial partners to convert several hundred
industrial boilers to clean, efficient, gas-fired CHP.
• Launch the CHP Power Quality Initiative to work with partners' Internet data centers and
telecom switching stations to meet their reliable power needs with CHP.
• Promote the recognition of CHP s benefits in environmental regulations.
Green Power Partnership
EPA has developed a program to encourage purchases of renewable energy. Modeled after EPA's
successful energy efficiency programs, the Green Power Partnership is a voluntary partnership with
companies, government agencies, and other organizations that purchase renewable energy. In return for
technical assistance and recognition, partners commit to purchasing a percentage of their annual
electricity consumption from green power.
In 2001, EPA will:
• Launch the Green Power Partnership Program, which will work with founding partners and local
governments to encourage green power purchases.
• Announce 40 new corporate or local government
green power purchases.
• Launch efforts with states to promote customer
choice through electricity restructuring in an
environmentally friendly manner.
WIND POWER
"We believe it's beneficial to continually evaluate and improve the energy
efficiency of our nation's power supply. Using CHP helps companies and
institutions meet their energy needs while saving money and improving their
environmental performance."
— Mark Hall, Vice President of External Affairs, Trigen Energy
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METHANE PROGRAMS
Methane Programs
FIGURE 6. PARTNER ACTIONS ARE PROJECTED TO RETURN
METHANE EMISSIONS BELOW 1990 LEVELS BY 2010
Methanes contribution to total U.S. greenhouse gas emissions is second only to that of carbon dioxide.
Each ton of methane emitted is 21 times more effective at trapping heat in the atmosphere than one ton
of CO2. Methane, the major component of natural gas, is also a valuable source of energy.
U.S. industries along with state and local governments collaborate with EPA in several voluntary
partnerships to encourage the profitable collection and use of methane that otherwise would be released
to the atmosphere. These
methane partnerships
include Landfill Methane
Outreach, Natural Gas
STAR, and Coalbed
Methane Outreach. All
follow a common approach,
which is to provide sound
technical, economic, and
regulatory information on
emission-reduction
technologies and practices,
as well as tools to facilitate
implementation of
methane-reduction
opportunities. Partners
profit by their involvement
in these programs by
making their operations
more efficient and their
businesses more competitive. EPA also provides information and tools to the agricultural community to
encourage methane reductions.
These voluntary partnerships, in conjunction with a regulatory program to limit air emissions from the
nations largest landfills, reduced national methane emissions to well below 1990 levels in 2000, and
they are projected to maintain emissions below 1990 levels through 2010.
'90 '95
YEARS 1990-2010
Source: EPA Climate Protection Partnerships Division
"EPA's technical and economic information has helped Jim Walter Resources (JWR)
identify options to profitably capture our low-quality coalbed methane. Our
concern at JWR is operating a business. It's great if this also benefits the environment."
— Chuck Dixon, Senior Vice President, Jim Walter Resources, Alabama
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CLIMATE PROTECTION PARTNERSHIPS DIVISION 2000 ANNUAL REPORT
LANDFILL METHANE OUTREACH PROGRAM
Landfills are the largest source of U.S. anthropogenic methane emissions. Capture
and use of landfill gas not only reduces methane emissions directly, but also
reduces CO2 emissions indirectly by displacing the use of fossil fuels. The
Landfill Methane Outreach Program (LMOP) encourages landfills across the
LANDFILL METHANE nation to capture and use their landfill gas emissions. Working with landfill
owners, state energy and environmental agencies, energy suppliers, industry,
and other stakeholders, LMOP lowers the barriers to landfill gas-to-energy project development.
Launched in December 1994, LMOP achieved significant reductions through 2000, reducing methane
emissions from landfills by 3.2 MMTCE in 2000 alone. The number of landfill gas-to-energy projects
grew from fewer than 100 in the early 1990s to almost 320 projects by the end of 2000.
LMOP focuses its outreach efforts on smaller landfills not regulated by EPA's New Source Performance
Standards and Emission Guidelines. The program promotes cost-effective and environmentally
beneficial methane emission reductions by encouraging the capture and use of methane that would
otherwise be emitted to the atmosphere. LMOP has developed a range of tools to help landfill owners
and operators overcome barriers to project development, including feasibility analyses, software for
evaluating project economics, profiles of hundreds of candidate landfills across the country, a project
development handbook, energy end-user analyses, and many others.
In 2000, LMOP:
• Assisted in the development of 35 new landfill gas-to-energy projects, with more than
50 additional projects under construction and expected to be online soon.
• Signed on 35 new allies, bringing the total number of LMOP allies to more than 250.
• Helped facilitate a partnership between a waste company and three Pennsylvania communities,
which resulted in one of the most innovative and economically beneficial landfill gas utilization
projects in the country.
• Held its fourth annual conference, which was the largest and most successful to date. One
highlight of the conference was the project EXPO, a section of the exhibit hall where 10 landfill
operators looking for landfill gas project development partners displayed information about their
sites and distributed requests for proposals.
In 2001, EPA will:
• Initiate a competitive grant process designed to spur innovative, replicable projects at
smaller landfills.
• Host its fifth annual conference in December 2001, which will include a half-day session on using
landfill gas as a green power resource.
• Conduct training sessions on landfill gas utilization in Korea and Brazil.
26
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METHANE PROGRAMS
LMOP 2000 Award Winners
Project of the Year: Green Knight Economic Development Corporation
Landfill Gas Utilization Project (Pen Argyl, PA)
Known as the "Slate Belt," Northampton County, Pennsylvania, played host to residents whose livelihoods depended on the
quarry and textile industries. These industries have been on the decline for about a decade, which has forced the region into
economic distress. But now, an unusual source is bringing economic development to the region—the local landfill. Grand
Central Sanitary Landfill, owned by Waste Management, Inc. (WM), generates more than 8 million cubic feet of landfill gas per
day. Waste Management put in a well system to flare the gas and approached the community about end-use options for the gas.
Encouraged by WM's partnership offer, the community came up with an ideal solution—create the Green Knight Economic
Development Corporation (GKEDC)—an independent, nonprofit corporation that would own the gas collection facility and use
the revenue from sales of the landfill gas to fund local economic development efforts. The project developed through this
innovative public-private partnership not only has economic, social, and environmental benefits but also generates a source of
clean, renewable energy for the community.
Partner of the Year: Buncombe County, NC
Wedged between two national parks, Buncombe County, North Carolina, attracts tourists and is home to many residents.
County officials are mindful of the environment; keeping the county clean and picturesque—and fostering sustainable
development—are among their priorities. When the county closed its landfill, it had to manage the gas emitted from the landfill.
Rather than flare the gas, county staff teamed with a private company, Asheville Landfill Gas LLC, to build a facility, collect the
gas, and turn it into an energy source for the Municipal Service District (MSD), a local wastewater treatment facility. By
purchasing the landfill gas for its supplemental energy needs, MSD saves $500,000 annually. Buncombe County plans to build a
30-acre greenhouse near the landfill and heat it with landfill gas. County officials estimate that the greenhouse has the potential
to create 300 new jobs.
State Ally of the Year: State of South Carolina Energy Office
South Carolina's Energy Office partnered with LMOP in 1998 because officials were interested in promoting landfill gas
utilization throughout the state. In 1999, they developed a primer on project development requirements and opportunities,
organized and created a task force of various government and community representatives, and conducted a one-day educational
workshop. In addition, the Energy Office conducted a survey and determined that 30 landfills could economically develop
landfill gas projects, generating a potential 81 MW of power. The tireless efforts of the Energy Office staff have created
momentum in South Carolina—12 projects are under construction, and two are slated to become operational in 2001.
Energy Ally of the Year: PPL Corporation (Allentown, PA)
PPL Corporation has a long record of working with methane producers—including landfills, wastewater treatment facilities, and
farms. PPLs support for methane-capturing projects spans more than a decade and represents approximately 2 million tons of
greenhouse gas emission reductions since 1991. Landfill power production facilities are an integral part of PPLs power portfolio.
PPL is currently purchasing power from Keystone Landfill, Lycoming Landfill, and Taylor/Amity Landfill, all in Pennsylvania.
The company assisted Empire Landfill, also in Pennsylvania, in the development of assets in support of its pipeline quality gas
production. PPL is developing partnerships with new landfills and is looking to expand existing landfill projects.
"This is an excellent opportunity for the City of Allentown to save money, improve our
operations, and partner with a company that has the experience and know-how to
plan and execute projects well."
— Allentown Mayor William Heydt
27
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CLIMATE PROTECTION PARTNERSHIPS DIVISION 2000 ANNUAL REPORT
NATURAL GAS STAR PROGRAM
Natural Gas STAR is a voluntary partnership between EPA and the U.S. natural
gas industry designed to overcome barriers to adoption of cost-effective
technologies and practices that reduce emissions of methane. Natural
Gas STAR was launched in 1993 with the transmission and
distribution sectors, and has since expanded twice—to the production
sector in 1995 and the processing sector in 2000. The program has
achieved significant reductions through 2000, reducing methane
emissions from natural gas systems by 4.2 MMTCE in 2000 alone.
Natural Gas STAR has developed a range of tools designed to help corporate partners implement best
management practices to reduce gas loss. These include an implementation guide, a series of "lessons
learned" studies, focused workshops, partner-to-partner information exchanges, and others. Extensive
partner support for and continued expansion of the program, combined with ongoing feedback from
partners, demonstrates the effectiveness of these tools in promoting methane reduction activities.
In 2000, Natural Gas STAR:
• Represented 72 percent of transmission mileage, 49 percent of service connections, 40 percent of
production, and 23 percent of gas processing.
• Partnered with 18 new companies, bringing the total number of partners to 88.
• Successfully expanded the program to the gas gathering and processing sector.
• Created the successful instructional video, "U.S. EPA's Natural Gas STAR Program for
Producers," which received a 2000 Telly award.
In 2001, EPA will:
• Expand Natural Gas STAR in all sectors to represent 85 percent of gas transmission pipelines,
55 percent of distribution service connections, 55 percent of domestic gas production, and
30 percent of gas processing.
• Institute an online reporting system to enhance partner implementation.
• Increase participation among independent producers.
"As a Natural Gas STAR partner, we are recognized as an environmentally friendly
company. Even regulators are aware of this voluntary partnership) which is just as
valuable as the cost savings achieved by reducing methane emissions."
— James Frederick, Environmental Specialist, Unocal Gulf Region, USA
28
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METHANE PROGRAMS
This public service announcement and editorial promoting Gas STAR was printed pro bono on the cover
wrap of the November/December 2000 edition of the Harvard Business Review.
environment*
>erformance,
As the
Production Partners
Aniemdo Hess, U.S.
Exploration and
Production
ATOFINA Petrochemicals
Bdco Energy
BP
Burlington Resources
Cheiron, U.S.A.
Production
Devon Energy
ExxonMobil Production
Kerr-McGee
Marathon Oil
Mitchell Energy
end Development
Oceon Energy
Phillips Petroleum,
Americos Division
Pioneer Natural
Resources USA
Shell Exploration
ond Production
Spirit Energy 76,
A Business Unit
ol llnocal
is.,. in, Exploration
ond Production
The Stranded
Gas Association
Union Pacific
Resources Group
Transmission and
Distribution Partners
ANR Pipeline
Atlanta Gas Light
Atmos Energy
Baltimore Gas and
Electfic
Bay Stole Gas
Centre 1 Hudson
Gas& Electric
Citizens Gos &
Coke Utility
Colorado
Interstate Gas
Columbia Energy
Group Distribution
(Columbia Gascl
KV, MD, OH, PA, VA)
Columbia Gas
Transmission
Columbia Gu f
Transmission
Conecliv Power Delivery
Consolidated Edison
ol Hew York
Consumers Energy
El Peso Noturai Gets
Enron Gas
Pipeline Group
Equitable Resources
r 't ^t
Gos Transmission
Great Late
Gas Transmission
Iroquois Gas
Transmission
Kansas Pipeline
Operating Company
KeySpan Energy Delivery
KN Interstate
Pipeline (Midton)
Koch Gateway Pipeline
Louisville Gas & Electrk
Michigan
Consolidated Gos
New Tork State
Electric & Gas
Niagara Mohawk Power
Northern Indiana
Public Service
Northern Natural Gas
Northern Utilities
NW Natural
Orange and
Rocklartd Utilities
Pacific Gas and Electric
PECO Energy
PSNC Energy
Publk Service
Eleclric and Gas
Guestai Pipeline
Reliant Energy
Mlnnegasca
Ruchesinr Gi:i & Electric
South Carolina
Electric & Gos
Southern California Gas
Southern Natural Gai
Southwest Gas
Superior Water,
Light and Power
Tennessee Gas Pipeline
Transwestern Pipeline
UGI Utilities
UtiliCorp United
Washington Gas
Williams Gos Pipeline -
South Central
Witliams Gas Pipeline -
Transco
Interstate Pipeline
Wisconsin Public Seruke
These natural gas companies are focused on being smart, efficient, and
innovative, which are qualities that define business leadership.
Each has found that implementing marks
consistent with objectives for continued
ased solutions to environmental challenges is
These forward-thinking companies are committed to improving the,environment by vpluntaf
reducing emissions of methane, a major component of natural gas and an important greenhi
gas. As partners with EPA in the Natural Gas STAR Program, they are actively identifying and
implementing cost-effective technologies and practices that reduce methane emissions, whilr
improving the bottom line.
fn teaming with EPA, these companies are establishing a reputation for reducing natural gas
losses at a time when the demand for ciean-burning natural gas is expected to rise significa
over the next 20 years. And EPA considers the voluntary actions of these companies an important
part of the nation's response to concerns about global climate change.
To learn more about how these companies have become industry leaders while emphasize
environmental performance, call the program manager at 202-564-2318 or visit the program
Web site at www.epa.gov/gasstar.
atural Gas STAR Program — www.epa.gov/gasstar
Endorsers of the Natural Gas STAR Program include:
j^ ^^ VV Arner'can
V^-^^J^-Tk G a s Association
4>
American
Petroleum inf
Institute Ik
A Interstate Natural
1 /C &V Gas Assoc'ali°n
wnfin of America
NGSJ
Natural
Gas Supply
Association
29
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CLIMATE PROTECTION PARTNERSHIPS DIVISION 2000 ANNUAL REPORT
Natural Gas STAR 2000 Partners of the Year
Kerr-McGee Oil and Gas Corporation
Kerr-McGee received the 2000 Natural Gas STAR Producer Partner of the Year Award. EPA
honored the company for significant methane emission reductions, implementation of many
partner reported opportunities (PROs), and outreach contributions both in assisting EPA with
developing an Implementation Case Study and in working to secure the Domestic Petroleum
Council's endorsement of the Gas STAR program. An active partner since 1996, Kerr-McGee
has reported cumulative methane reductions totaling 8.5 billion cubic feet (Bcf), valued at more than $17 million. In
1999 alone, Kerr-McGee reported emission reductions of 2.3 Bcf, of which 547 million cubic feet (Mmcf) was from
new activities. While transferring the Natural Gas STAR program to its newest acquisition, Oryx Energy, Kerr-McGee
identified more than 5 Bcf in prior reductions during a survey of Oryx facilities. Kerr-McGee's emphasis on
maintaining open communication to ensure employee awareness and participation in data collection efforts has
significantly contributed to the company's Gas STAR program success.
Columbia Transmission Segment (a NiSource Company)
1 i^fe r~* Columbia Transmission Segment received the 2000 Natural Gas STAR Transmission
v-OJ-UJ- Partner of the Year Award. EPA honored the company, which consists of Columbia Gas
lr3ilSmiSSlC FL. Transmission and Columbia Gulf Transmission, for its ^4.
A NiSource Company excellent program implementation; significant methane CblurnDltl Gull
emission reductions, which include the inventorying and reporting of substantial reductions J[r3JlSITllSSlOns,
from previous years; and its outreach efforts. Even though Columbia Transmission Segment A NiSource Company
just became a partner in 1999, it reported more than 9.7 Bcf of methane emission reductions—valued at more
than $19.4 million—in its first annual report. In 1999 alone, Columbia Transmission Segment reported reductions of
1.5 Bcf, with 1.4 Bcf of this from new activities. The company took a team approach to implementing the Natural
Gas STAR program and integrating it into everyday operations and existing programs, such as the company's
Environmental Excellence Program. Members of the company's Natural Gas STAR Team visited field operations and
worked closely with technicians and operators to assess current methane emission reduction practices and ways
to measure these reductions.
Bay State Gas Company (a NiSource Company)
A Bay State Gas Company received the 2000 Natural Gas STAR Distribution Partner of the Year Award. Bay
f Al
State was honored for achieving significant methane emission reductions,
| Bay State GaS introducing a number of new PROs, and contributing to the promotion of the
Natural Gas STAR program through its outreach activities. Bay State Gas
Company has been an active partner since 1994. In 1999, the company reported 79 Mmcf of methane emission
reductions, and Bay State's cumulative reductions total more than 250 Mmcf.
"We are convinced that proactive environmental responsibility is good business.
Through Natural Gas STAR our efforts to reduce our methane emissions often
improve the operating efficiency of the pipelines, and that leads to financial reward."
— Steve Wilner, Director, Environmental Health & Safety Services, NiSource, Inc.
30
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METHANE PROGRAMS
COALBED METHANE OUTREACH PROGRAM
The Coalbed Methane Outreach Program (CMOP) reduces methane
emissions from underground coal mines by collaborating with large coal
companies and small businesses—primarily independent natural gas project
developers and equipment supply companies—to develop environmentally
beneficial and economically successful coal mine methane projects. Outreach
j** J^j,E^???I efforts focus on providing high-quality, project-specific information. CMOP
has achieved significant results through 2000.
EPA began working with the coal mining industry in 1990 when coal mines captured and used only
25 percent of the methane produced from their degasification systems. As a result of this collaboration,
the percentage of methane recovery grew to more than 85 percent by 1999. To eliminate the remaining
methane emitted from degasification systems, CMOP is working with industry to demonstrate the use
of flare technology, which has yet to be employed at a U.S. mine.
With the programs tremendous success in reducing methane emissions from degasification systems,
CMOP has expanded its focus to the methane emitted from coal mine ventilation systems. Ventilation
air from coal mines typically contains methane at concentrations below one percent, yet accounts for
94 percent of the remaining methane emissions from underground coal mines—over 90 billion cubic
feet of methane annually. CMOP is working with industry to demonstrate and deploy newly developed
technologies that can reduce these emissions substantially over the next few years.
CMOP has developed a range of tools designed to overcome barriers to recovery and combustion of
coal mine methane. These include numerous technical and economic analyses of technologies and
potential projects, mine-specific project feasibility assessments, state-specific analyses of project potential,
market evaluations, and guides to state, local, and federal assistance programs. CMOP has collaborated
with operators of virtually every U.S. underground coal mine to apply these tools and facilitate each
project. CMOP achieved a reduction of 2.1 MMTCE in 2000.
In 2000, CMOP:
• Helped reduce methane emissions at 23 project sites by providing high-quality, project-specific
information to mine operators, project developers, and other stakeholders.
• Affirmed the feasibility of technology to combust ventilation air methane and identified a mine
for the first demonstration of coal mine methane flaring.
In 2001, EPA will:
• Evaluate and promote the market potential of new technologies, including flares at wells
producing medium-quality gas and combustion technologies appropriate for mine ventilation air.
• Facilitate flare and ventilation air demonstration projects.
Jim Walter Resources (JWR) has operated an extensive
degasification program at its deep, longwall mines in
Alabama for about 20 years. These operations produce
gas from in-mine, gob, and vertical degasification wells.
JWR is a leader in exploring innovative technologies to
utilize medium- to low-quality gas.
31
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CLIMATE PROTECTION PARTNERSHIPS DIVISION 2000 ANNUAL REPORT
Program Evaluation: Measuring Results in the Methane Programs
Tracking and recording the methane reductions achieved by EPA's partnership programs is a straightforward
process. EPA gathers project-specific data on all the methane reduction activities implemented in coordination
with the partnerships.
Natural Gas STAR
Industry partners report their reduction activities to EPA on a detailed reporting form, and EPA works with
partners to verify these data.
Landfill Methane Outreach
EPA works with all stakeholders to compile up-to-date project information. The program reports reductions
from only those projects that EPA directly assisted.
Coalbed Methane Outreach
EPA gathers state gas sales data for each mine to determine the total amount of coal mine methane used.
Although EPA works with every project, the program reports only 40 percent of the total reductions achieved,
attributing 60 percent to the impact of the Energy Policy Act of 1992.
TABLE 4. METHANE PROGRAMS: ANNUAL GOALS AND ACHIEVEMENTS
2000 Goal 2000 Achievement 2001 Goal
LMOP
Number of Projects
Annual Methane Reduction (MMTCE)
1
Natural Gas STAR
Transmission Pipeline Miles (% in program)
Distribution Pipeline Miles (% in program)
Natural Gas Production (% in program)
Gas Processing (% in program)
Annual Gas Savings (MMTCE)2
CMOP
Annual Methane Reduction (MMTCE)
TOTAL Methane Reduction (MMTCE)
2000 achievements are estimates. Final figures are
193
3.5
85%
60%
55%
4.2
2.0
9.7
not yet available.
177
3.2
72%
49%
40%
23%
4.2
2.1
9.5
225
3.7
85%
55%
55%
30%
4.4
2.0
10.1
2 Includes both CCAP program and base reductions.
32
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METHANE PROGRAMS
AGRICULTURE-BASED PROGRAMS
Through outreach to agriculture-based organizations and farmers, EPA and the U.S. Department of
Agriculture (USDA) work together to promote practices that reduce greenhouse gas emissions at U.S.
farms. The programs work with U.S. swine and dairy producers to encourage development of waste
management systems that produce farm revenues and reduce water and air pollution. EPA provides
technical information and tools to aid in the assessment and implementation of the projects.
In 2000, EPA and USDA:
• Assisted swine and cattle producers in developing waste management systems that improve
livestock efficiency and produce farm revenues, while reducing water and air pollution. About
13 million kWh/year of renewable energy was produced from farms capturing methane to provide
energy for the farm and local community.
• Increased recognition of anaerobic digestion viability at commercial swine and dairy farms.
• Brought 13 new commercial demonstration systems online across nine states through the "Charter
Farm" program. These systems provided about 3 million kWh of renewable power.
• Assisted states in developing programs and policies for the broader deployment of technology.
In 2001, EPA and USDA will:
• Continue the expansion of methane-reducing technologies in the livestock sector to help ensure
clean water and air.
• Collaborate with state energy programs in New York, California, Colorado, Iowa, Wisconsin, and
Minnesota to facilitate the development of anaerobic digesters as renewable energy.
SWINE USA'S COMPLETE MIX DIGESTER IN THAYER, IOWA
33
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FIGURE 7. PARTNER ACTIONS CAN MAINTAIN EMISSIONS OF
HIGH GLOBAL WARMING POTENTIAL GASES AT OR BELOW
1990 LEVELS THROUGH 2010
CLIMATE PROTECTION PARTNERSHIPS DIVISION 2000 ANNUAL REPORT
High GWP Environmental
Stewardship Programs
Public-private industry partnerships are substantially reducing U.S. emissions of the "high global
warming potential" (GWP) gases, which are released as byproducts of industrial operations. These
partnerships involve various
industries that are
developing cost-effective
improvements in processes
to reduce emissions of
perfluorocarbons (PFCs),
hydrofluorocarbons (HFCs),
and sulfur hexafluoride
(SFg)—all particularly
potent greenhouse gases.
When compared ton-for-ton
with CO 2, they trap much
more heat in the atmosphere.
PFCs and SFg also have very
long atmospheric lifetimes.
Despite the potential for
sizable growth in high GWP
greenhouse gas emissions,
these partnerships are
expected to reduce emissions
below 1990 levels by the year 2005.
YEARS 1990-2010
Source: EPA Climate Protection Partnerships Division
THE VOLUNTARY ALUMINUM INDUSTRIAL PARTNERSHIP
This partnership program with the primary aluminum
smelting industry is designed to reduce emissions of PFCs
emitted as a byproduct of the smelting process. EPA is
working with primary aluminum producers to reduce Cp4
and C2Fg where technically feasible and cost effective. Since
the partnership was formed in 1996, it has had great success
in characterizing the emissions from smelter operations and
reducing overall emissions. The goal of the partnership was to
reduce emissions by 30 to 60 percent from 1990 levels by 2000.
J INDUSTRIAL PARTNERSHIP
In 2000, the Voluntary Aluminum Industrial Partnership:
• Met its 2000 program goal, with emissions reduced about 45 percent relative to 1990 levels on an
emissions per unit of product basis. The absolute reductions are a similar percentage but are
currently affected by facility closures caused by high energy costs in the Northwest.
• Completed an emissions measurement campaign at six U.S. aluminum smelters to better
characterize the relationship between operating parameters and emissions.
• Continued work with 9 of the 10 U.S. primary aluminum producers, representing 22 of the
23 U.S. smelters, to better understand the generation of PFCs in the smelting process and to
quantify smelter-specific emissions.
34
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ENVIRONMENTAL STEWARDSHIP
HFC-23 EMISSION REDUCTION PROGRAM
The HFC-23 partnership works to cost-effectively reduce emissions of the potent greenhouse gas,
HFC-23, which is generated as a byproduct in the manufacture of HCFC-22. Through this program,
EPA encourages all U.S. producers of HCFC-22 to develop and implement technically feasible, cost-
effective processing practices or technologies to reduce HFC-23 emissions.
The partners have reduced emissions of HFC-23 through process optimization, reaching the total
reductions that can likely be achieved through these techniques. The partnership has helped the
intensity of HFC-23 emissions (the amount of HFC-23 emitted per kilogram of HCFC-22
manufactured) decline significantly. Despite an estimated 35-percent increase in production since 1990,
total emissions are below 1990 levels—a reduction of 4.8 MMTCE compared to business-as-usual.
In 2000, EPA partnered with 100 percent of the U.S. HCFC-22 producers to use process optimization
and abatement to reduce production byproduct emissions of HFC-23—the most potent and persistent
oftheHFCs.
THE RFC EMISSION REDUCTION PARTNERSHIP FOR THE
SEMICONDUCTOR INDUSTRY
Since 1996, the PFC Emission Reduction Partnership for the Semiconductor
Industry has served as a catalyst for companies in Europe, Japan, Korea,
Taiwan, and the United States to join together to set the first global target
for reducing greenhouse gas emissions. Through this partnership, companies
have identified and implemented process changes in the manufacture of
silicon chips to reduce emissions of PFCs.
In 2000, EPA renewed the partnership with U.S. semiconductor manufacturers
who agreed to reduce emissions of PFCs by 10 percent below their 1995
baseline by 2010.
SF6 EMISSIONS REDUCTION PARTNERSHIP FOR
ELECTRIC POWER SYSTEMS
The SF6 Emissions Reduction Partnership for Electric Power Systems, initiated in
1999, provides a forum for the electric power industry to work with the U.S.
government to reduce sulfur hexafluoride (SF6) emissions to technically and
economically feasible levels through identifying and encouraging adoption of best
management practices. By the end of 2000, more than 60 electric utility companies
had joined the partnership, representing approximately 25 percent of the companies within this industry.
MliBUflri * Emissions Reduction
Partnership** Electric Power Systems
In 2000, EPA expanded the electric power systems partnership to reduce SF6 emissions to 63 partners,
representing nearly 45 percent of net generating capacity. Over 80 percent of SF6 sales are to this
power sector.
35
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CLIMATE PROTECTION PARTNERSHIPS DIVISION 2000 ANNUAL REPORT
SF6 EMISSION REDUCTION PARTNERSHIP FOR THE
MAGNESIUM INDUSTRY
This new partnership is identifying and encouraging adoption of best management
practices for reducing emissions of sulfur hexafluoride (SF6), a highly potent
greenhouse gas. The program to reduce emissions from magnesium production
already represents more than 60 percent of U.S. magnesium industry emissions.
In 2000, EPA:
• Expanded the magnesium industry partnership to reduce SF6 emissions to 1 5 partners, representing
100 percent of primary magnesium production and 60 percent of domestic casting capacity.
This partnership accounts for 75 percent of total domestic SF6 emissions from the U.S.
magnesium industry.
• Received reports from magnesium partners for their first annual emissions estimates using EPA-
designed reporting software. In turn, EPA published the partnerships first annual report.
MOBILE AIR CONDITIONING CLIMATE PROTECTION
PARTNERSHIP
As part of the effort under the Montreal Protocol for the Protection of the Ozone Layer, new vehicles
worldwide have been redesigned to use HFC-134a refrigerants in air conditioning systems rather than
CFC-12. The production of CFC-12 refrigerants for use in developed countries was halted in 1996 and
will be phased out globally by 2006. HFC-134a was the global choice because it has no ozone depleting
potential, has six times less global warming potential than CFC-12, is non-flammable, has low toxicity,
and has cooling capacity and energy efficiency that can be made comparable to CFC-12 through
engineering. Although HFC-134a has far less impact on the climate than the CFC-12 it replaced, it is
included in the basket of greenhouse gases whose emissions need to be reduced.
The Society of Automotive Engineers (SAE), the Mobile Air Conditioning Society Worldwide (MACS),
and EPA have organized a global voluntary partnership to promote improved air conditioning systems
and service. The choice of measures to improve the environmental performance of vehicle air conditioning
systems is complicated because (1) both refrigerant and fuel consumption must be considered over the
life of the vehicle, (2) customers demand reliable and affordable equipment, and (3) new systems may
require special safety systems and technician training. The partnership has three goals:
• To promote cost-effective designs and improved service procedures to minimize emissions from
HFC-134a systems.
• To cooperate on development and testing of next-generation mobile air conditioning systems that
satisfy customer requirements and environmental, safety, cost, and reliability concerns.
• To communicate technical progress to policy makers and the public.
36
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ENVIRONMENTAL STEWARDSHIP
In 2000, this partnership developed a brochure that provides an overview for decisionmakers and
interested parties of the "state-of-the art" of mobile air conditioning technology from the viewpoint of
industry, technical organizations, and government. Titled The Importance of Motor Vehicle Air
Conditioning in Climate Protection, this brochure presents the consensus on the best methods of
speeding progress toward the implementation of more energy-efficient mobile air conditioning systems.
As a member of the partnership, SAE has drafted new test plans, circulated and improved existing test
plans, and held an extensive investigation of testing organizations. SAE has also worked on the Internet
to involve experts and stakeholders in this process.
In 2001, the High GWP Environmental Stewardship Programs will:
• Work with the aluminum industry to negotiate a new agreement to continue to explore and
implement emission reduction options through 2005, as well as continue to conduct smelter
measurements in the aluminum industry to complete the U.S. smelter-type data set and to
validate past process-type measurements.
• Work with the U.S. semiconductor partners to achieve their 10 percent PFC emission reduction
goal by 2010 from their 1995 baseline.
• Continue to build the SF6 Emissions Reduction Partnership for Electric Power Systems (utilities)
to 100 (representing 60 percent of the industry's net generating capacity).
• Expand participation in the SF6 Emission Reduction Partnership for the Magnesium Industry to
represent greater than 80 percent of U.S. industry emissions. Facilitate global information sharing
to achieve cost-effective emission reductions of 0.3 MMTCE.
• Maintain an effective partnership with HCFC-22 chemical manufacturers to reduce emissions
ofHFC-23.
• Expand the stewardship programs to reduce high GWP emissions from other key sources, such as
the military and the ozone-depleting substance (ODS) replacement industries.
Alcoa Inc.: Aluminum Industry Leader
In addition to achieving significant PFC emission reductions in the past decade, Alcoa Inc.
has been a global industry leader working to protect the climate. U.S. companies in the
aluminum industry, including Alcoa, have partnered with EPA since 1995 to reduce emissions
of PFCs, an inadvertent byproduct of the primary smelting process. The charter partners of
the Voluntary Aluminum Industrial Partnership were Alcan Ingot, Alcoa Inc., Alumax, Century
Aluminum, Columbia Falls, Goldendale, Kaiser Aluminum, Noranda Aluminum, Northwest,
Southwire Co., Reynolds Metals Co., and Vanalco Inc. In 2000, these companies reduced
their U.S. PFC emissions by more than 45 percent from the 1990 baseline. Alcoa has served
as co-chair of the partnership and provided significant in-kind technical expertise in
developing and implementing the partnership's PFC smelter measurement campaigns.
Having met its 2000 PFC emission reduction goal, Alcoa has committed to further PFC
reductions by 2005. These efforts are part of an overall company plan for a 25-percent
reduction in greenhouse gas emissions by 2010.
37
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CLIMATE PROTECTION PARTNERSHIPS DIVISION 2000 ANNUAL REPORT
International Climate Protection Award Winners
In 1998, EPA established the Climate Protection Awards to recognize exceptional leadership,
personal dedication, and technical achievements in protecting the Earth's climate. Awards
are presented to companies, organizations, and individuals that have demonstrated their
commitment to greenhouse gas reductions through pollution prevention, technical innovation,
stewardship, recycling, and new products. The 2000 award winners are presented below.
CORPORATE & GOVERNMENTAL
AWARDS
Alcan Aluminum Sebree Ingot Plant
Henderson, KY, USA
Architectural Services Department, the
Government of the Hong Kong Special
Administrative Region
Queensway, Hong Kong
The AT&T Employee Telework Program
Atlanta, GA, USA
Honda Motor Company
Torrance, CA, USA
ICI Klea Runcorn
Cheshire, UK
Intel Corporation
multiple locations
International Fuel Cells
South Windsor, CT, USA
Novellus Systems
San Jose, CA, USA
Oregon Energy Facility Siting Council and
Oregon Office of Energy
Salem, OR, USA
Visteon Corporation
Dearborn, Ml, USA
ASSOCIATION AWARDS
American Portland Cement Alliance
Washington, DC, USA
The Real Estate Roundtable
Washington, DC, USA
University of Colorado Environmental Center
Boulder, CO, USA
INDIVIDUAL AWARDS
Ms. Sherri W. Goodman
U.S. Department of Defense
Washington, DC, USA
Dr. Jerry Mahlman
U.S. National Oceanic and Atmospheric
Administration
Princeton, NJ, USA
Mayor Marc H. Morial
City of New Orleans
New Orleans, LA, USA
Ms. Tia Nelson
The Nature Conservancy
Arlington, VA, USA
Mr. Nobuo Okubo
Nissan Motor Company, Japan
Tokyo, Japan
Dr. Robert T. Watson
The World Bank
Washington, DC, USA
38
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THE POWER OF PARTNERSHIPS
Expectations for 2001 and Beyond
Voluntary partnership programs will continue to be a powerful means for reducing emissions of
greenhouse gases and air pollutants across the country, while saving businesses, organizations, and
consumers money on their energy bills. In the future, EPA expects these win-win partnerships to
continue reducing local and global air pollution, while delivering sizable savings.
EPA plans to:
• Add new products and services to the ENERGY STAR family.
• Build public awareness of ENERGY STAR to more than 60 percent by the end of 2005.
• Continue to educate consumers and homeowners to be aware that ENERGY STAR products can
reduce their home energy bills by about 30 percent or $400 annually through a variety of means.
• Offer energy performance rating and labeling for more building types, including retail uses,
healthcare, lodging, food service and sales, and public assembly.
• Build additional partnerships with businesses and organizations, focusing particularly on small
businesses, state and local governments, and school systems.
• Encourage increased penetration of cleaner, more efficient energy supply technologies.
• More than double the cost-effective reductions of the non-carbon dioxide greenhouse gases by
2010, helping to return methane emissions to 1990 levels.
FIGURE 8. ANNUAL REDUCTIONS IN GREENHOUSE GAS EMISSIONS CAN BE MORE
THAN DOUBLED BY 2010
'95 '96 '97
YEARS 1996-2010
'00 '01 fli '03 '04 '05 '06 '07 '08 W '10
Source: EPA Climate Protection Partnerships Division
39
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CLIMATE PROTECTION PARTNERSHIPS DIVISION 2000 ANNUAL REPORT
References
Climate Protection Partnerships Division, U.S. Environmental Protection Agency. Partner and emissions data for
2000 provided by individual programs and partnerships in the Division.
Dutrow, Elizabeth. 2001. An Estimate of Emissions Reductions Accomplished by ENERGY STAR Industrial Partners. EPA
Climate Protection Partnerships Division.
Energy Information Administration (EIA). 2001. Annual Energy Review 2000. Office of Markets and End Use.
Available online at www.eia.doe.gov/aer/contents.html.
EIA. 2000. Annual Energy Outlook 2001 with Projections to 2020. Office of Integrated Analysis and Forecasting.
December. (DOE/EIA-0383(2001).
Horowitz, MJ. 2001. "Economic Indicators of Market Transformation: Energy Efficient Lighting and EPAs Green
Lights." The Energy Journal 2(4): 95-122.
Intergovernmental Panel on Climate Change (IPCC). 2001. Third Assessment Report - Climate Change 2001. United
Nations Environment Programme.
IPCC. 1996. Climate Change 1995: The Science of Climate Change. J.T. Houghton, L.G. Meira Filho, BA. Callander,
N. Harris, A. Kattenberg, and K. Maskell, eds. Cambridge University Press. Cambridge, UK.
Koomey, J., A. Rosenfeld, and A. Gadgil. 1990. Conservation Screening Curves to Compare Efficiency Investments
at Power Plants. Lawrence Berkeley National Laboratory. LBNL-27286. October. Available online at
http://enduse.lbl.gov/Info/Pubs.html.
Lstiburek, J. 2000. Builder's Guide. Energy Efficient Building Association. January.
Nadel, S., F. Gordon, and C. Neme. 2000. Using Targeted Energy Efficiency Programs to Reduce Peak Electrical
Demand and Address Electric System Reliability Problems. American Council for an Energy-Efficient Economy. November.
Office of Energy Efficiency and Renewable Energy (EERE). 2000. Scenarios for a Clean Energy Future. Prepared by
the Interlaboratory Working Group on Energy-Efficient and Clean-Energy Technologies, U.S. Department of Energy.
Raynolds, N. and R Cowart. 2000. The Contribution of Energy Efficiency to the Reliability of the U.S. Electric System.
Alliance to Save Energy/Regulatory Assistance Project.
U.S. Department of State. 1997. Climate Action Report. 1997 Submission of the United States of America Under
the United Nations Framework Convention on Climate Change. July.
U.S. Environmental Protection Agency. 2001. Draft Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-
1999. Office of Policy Planning and Evaluation. January. (EPA 236-R-01-001)
Webber, Carrie A., Richard E. Brown, Jonathan G. Koomey, and Akshay Mahajan. 2001. "Savings estimates for the
ENERGY STAR voluntary labeling program: 2001 status report." Lawrence Berkeley National Laboratory. Draft
LBNL-48496. July.
Figures and Tables
Figure 1. U.S. Carbon Dioxide Emissions by Source 2
Figure 2. Average Global Surface Temperature Past Variations and Projections, 1000-2100 4
Figure 3. Actual Division Carbon Reductions Compared to Annual Performance Goals 5
Figure 4. Annual Savings in Energy Use as a Result of the Division's Partnership Programs 6
Figure 5. More than 50% of Projected Energy Use 10 Years From Now Will Come From
Equipment Purchased Between Now and Then 9
Figure 6. Partner Actions are Projected To Return Methane Emissions Below 1990
Levels by 2010 25
Figure 7. Partner Actions can Maintain Emissions of High Global Warming Potential Gases
at or Below 1990 Levels Through 2010 34
Figure 8. Annual Reductions in Greenhouse Gas Emissions can be More Than Doubled by 2010 ... 39
Table 1. Global Warming Potentials (GWPs) and Atmospheric Lifetimes of
Greenhouse Gases . .
Table 2. Summary of the Cumulative Benefits Through 2010 From the Actions Taken by
Partners Through 2000 7
Table 3. ENERGY STAR Program: Annual Goals and Achievements 11
Table 4. Methane Programs: Annual Goals and Achievements 32
40
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Endnotes
1. Bill Savings. These are the total savings in energy bills, in 2000 dollars, realized by partners or
purchasers of ENERGY STAR labeled products through 2010. Many of these investments, such as the
building improvements associated with ENERGY STAR, have lifetimes as long as 15 years. A cut-off of
2010 was chosen as a reasonable end-point to assess benefits, even though the benefits of the
Divisions programs and partners' investments will often continue to be realized after that year.
2. Technology Expenditures. Technology Expenditures represent the cost to partners, in 2000 dollars,
of investments in energy efficiency, including the cost of financing the investment over its life at a
7.0 percent real rate of interest (4.0 percent for public-sector investments). This includes any price
premium, and the cost of financing that premium, for the purchase of ENERGY STAR labeled
products. The benefits of these investments have accrued since they were made and will continue to
accrue until the end of their useful lives. Investments also include future investments and purchases
made as a result of market transformation that has already occurred, to the extent that they keep
kWh savings constant between 1999 and 2010.
Seven percent is the standard interest rate recommended by the Office of Management and Budget in
Circular No. A-94, Guidelines and Discount Rates for Benefit-Cost Analysis of Federal Programs for Base-
Case Analysis. As stated in the circular, "[the 7.0 percent] rate approximates the marginal pretax rate
of return on an average investment in the private sector in recent years."
3. Net Savings. Net Savings is the difference between Bill Savings and Technology Expenditures. It
represents the undiscounted amount of cash in constant dollars available to partners and purchasers
of ENERGY STAR labeled products to put into the economy through 2010.
4. MMTCE. Million Metric Tons of Carbon Equivalent is the amount of carbon emission equivalents
avoided by investments in energy-efficient products through 2010 plus the emissions avoided by the
methane programs and by the programs reducing emissions of high global warming potential gases.
For energy efficiency investments and purchases, the carbon emission equivalents are based on an
analysis of marginal carbon emissions from electric generation. The marginal carbon emission rate
decreases over time: in 2000 it is 1.64 Ibs. CO2/kWh; in 2005 it is assumed to be 1.20 Ibs. CO2/kWh;
and in 2010 it drops to 1.09 Ibs. CO2/kWh.
For further information on the cost and benefits calculations,
call EPA's Climate Protection Partnerships Division at 202-564-9190.
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EPA
United States
Environmental Protection Agency
Air and Radiation (6202J)
Washington, DC 20460-0001
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