change the world, start here,
ENERGY STAR® and
Other Voluntary Programs
2001 Annual Report
-------
PARTNERSHIPS CHANGING THE WORLD
ENERGY STAR® AND OTHER VOLUNTARY PROGRAMS
CONTENTS
Letter from the Administrator
Partnerships Changing the World
Summary of Program Achievements Through 2001
Environmental Benefits
Economic Benefits
Program Effectiveness
Key Accomplishments
Estimation of Environmental and Economic Benefits ...
Climate Leaders Program
ENERGY STAR Program
Energy Efficiency is Smart Investment
ENERGY STAR in the Residential Sector
ENERGY STAR in the Commercial Sector
ENERGY STAR in the Industrial Sector
ENERGY STAR Award Winners
Clean Energy Programs
Combined Heat and Power Partnership
Green Power Partnership
Methane Programs
Landfill Methane Outreach
Natural Gas STAR
Coalbed Methane Outreach
Agriculture-Based Programs
High GWP Environmental Stewardship Programs
Voluntary Aluminum Industrial Partnership
HFC-23 Emission Reduction Program
PFC Emission Reduction Partnership for the
Semiconductor Industry
SF6 Emissions Reduction Partnership for Electric
Power Systems
SF6 Emission Reduction Partnership for the
Magnesium Industry
Mobile Air Conditioning Climate Protection Partnership
International Climate Protection Award Winners
Expectations for 2002 and Beyond
References
List of Figures and Tables
Endnotes .,..,,..,,..,,..,..,,..,,..,,..,,.,,..,,..
About the Cover. The cover photo is from EPA's new national campaign to encourage
Americans to help protect the environment by changing to energy-efficient products and
practices today. The message is an easy one. Look to ENERGY STAR to make a change. By
using ENERGY STAR to increase energy efficiency at home and at work, each of us can make
an enormous difference, now and for the future.
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).
-------
LETTER FROM THE ADMINISTRATOR
August 2002
Congratulations to all the partners of EPA's climate protection programs. Together, we
have demonstrated that voluntary programs can be an extremely effective tool to ensure a
cleaner environment and greater energy security for all Americans.
Our partners' efforts have made this past year the most successful to date for protecting
the environment. In 2001 alone, reductions of greenhouse gases totaled 38 million metric
tons of carbon equivalent—the same as eliminating the emissions from 25 million cars.
As we initiate new programs and as our current programs expand with new partners, the
environmental benefits will only increase.
We have accomplished these reductions in greenhouse gases through initiatives that
increase energy efficiency, develop clean energy solutions, capture and use methane gas,
and minimize emissions of other non-carbon dioxide gases. Since 1992, ENERGY STAR®
has been a leader in this area. ENERGY STAR educates businesses and consumers about
energy-efficient solutions that do not sacrifice performance, comfort, or convenience. Last
year alone, with the help of ENERGY STAR, Americans saved $6 billion on their energy
bills, while preventing the pollution associated with that of about 12 million cars.
In 2001, we launched the Combined Heat and Power Partnership and the Green Power
Partnership, which promote cleaner technologies in order to reduce the environmental
impact of electricity generation. Commitments by partners in our methane programs have
reduced national emissions to well below 1990 levels and are expected to maintain
emissions below 1990 levels through 2010. New initiatives, such as Climate Leaders—
a program that encourages companies to develop long-term comprehensive climate
change strategies—are continuing the successful tradition of EPA voluntary programs.
Partners in our climate protection programs are showing that voluntary stewardship is
alive and well among U.S. businesses, and they are setting an example for all. By
continuing to work together and staying firmly focused on our goals, I am confident that
we will make America's environment healthier and cleaner for this and future generations.
Christine Todd Whitman
Administrator
U.S. Environmental Protection Agency
-------
CLIMATE PROTECTION PARTNERSHIPS DIVISION 2001 ANNUAL REPORT
FIGURE 1.
U.S. greenhouse gas emissions
by gas
•1.7% MFCs, PFCs and SF6
6.1% N2O
I 8.7% CH4
83.5% CO2
Source: EPA GHG Inventory 2002
FIGURE 2.
U.S. greenhouse gas emissions by sector
SERVICE INDUSTRY
(BUILDINGS)
16%
PARTNERSHIPS CHANGING THE WORLD
Each of us has a responsibility to protect our environment. We have the power, too.
Whether purchasing an ENERGY STAR product or switching to renewable energy,
businesses, organizations, and consumers can play an important role in reducing
greenhouse gas emissions and protecting our environment for future generations.
Greenhouse gases are accumulating in the Earth's atmosphere as a result of
human activities and trapping heat in the atmosphere that would otherwise
escape (see discussion on page 4). Carbon dioxide (CO2) from fossil fuel
combustion—the major source of energy in our homes, in commercial
buildings, in industry, and for transportation—is the largest source of greenhouse
gas emissions in the United States. Other activities, such as industrial processes,
cause emissions of additional greenhouse gases—for example, methane
(CH^, nitrous oxide (N2O), and perfluorocarbons (PFCs) (see Figure 1).
While emitted in smaller quantities, these gases are important to address
due to their greater impact per molecule in trapping heat in the Earth's
atmosphere and, in the case of PFCs and sulfur hexafluoride (SF6), their
long atmospheric lifetimes (see Table 1). When viewed in terms of economic
sectors, emissions from industry account for 29 percent of U.S. greenhouse
gas emissions, followed by transportation (27%), residential (19%), service
industry (buildings) (16%), and agriculture (8%) (see Figure 2).
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:
Corporate Commitments. Many companies are voluntarily evaluating their impact on
the environment and then acting to change for the better. Businesses that participate in
Climate Leaders, a new effort formally launched in early 2002, will work with EPA to
inventory their greenhouse gas emissions, set an aggressive long-term reduction goal, and
report their annual progress toward this goal.
Energy Efficiency. Energy efficiency means obtaining the
same services or output (such as heating or cooling) for less
energy input. Energy efficiency offers significant cost savings
across the residential, commercial, and industrial sectors through
an array of technologies and practices available right now that
can reduce the energy bill for many homes and businesses by 20
to 30 percent. The ENERGY STAR program works in partnership
with businesses, large and small, and other organizations, such
as schools and city governments, to capture these savings.
Clean Energy. In addition to using energy more efficiently,
there are ways to 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 play larger roles cost-effectively in the
U.S. energy mix. EPA is collaborating with its partners to
expand the use of these technologies.
MFCs, PFCs, SF6
METHANE/NITROUS
OXIDE
TRANSPORTATION
(ALL GASES)
27%
Source: EPA GHG Inventory 2002
-------
PARTNERSHIPS CHANGING THE WORLD
Methane Programs. Although it is a potent 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 (MFCs),
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.
TABLE 1.
Global warming potentials (GWPs) and atmospheric lifetimes of
greenhouse gases
Greenhouse Gas
Global Warming Potential
for 100 Years
Atmospheric Lifetime
(years)
Carbon Dioxide
Methane
21
50 - 200
12±3
Nitrous Oxide
310
120
Hydrofluorocarbons
Perfluorocarbons
Sulfur Hexafluoride
140-11,700
6,500 - 9,200
23,900
1.5 - 264
3,200 - 50,000
3,200
Source: IPCC1996
Partnerships Can Change the World
EPAs partners continued to demonstrate the power of voluntary programs in
2001, making it the most successful year to date for protecting the climate
through this approach. EPAs ENERGY STAR, methane, and environmental
stewardship programs all delivered significant environmental and economic
results while exceeding their goals for reductions in greenhouse gas emissions.1
EPA also launched two new programs in 2001—the Combined Heat and
Power (CHP) Partnership and the Green Power Partnership—to encourage
conversion to more efficient energy supply technologies and increased reliance
on renewable energy.
This annual report presents the environmental and economic benefits from EPAs
climate protection partnerships through the end of 2001. A summary of these
achievements is provided in the next section. Following that are descriptions of
each program, covering the rationale for each, the accomplishments of 2001, and
goals for the future. The final section outlines EPAs broad goals for 2002 and beyond.
1 Each of EPA's climate protection partnerships is designed to achieve greenhouse gas reduction goals for
2000 and beyond, which were set through an interagency process in 2001. Accomplishments for the
year 2000 and goals for the year 2010 were communicated to the Secretariat of the Framework
Convention on Climate Change in the U.S. Climate Action Rep on 2002.
"Together, we have
demonstrated that voluntary
programs can be an extremely
effective tool to ensure a
cleaner environment and
greater energy security for all
Americans."
— Christine ToeU Whitman
-------
CLIMATE PROTECTION PARTNERSHIPS DIVISION 2001 ANNUAL REPORT
Global Warming: Summary of the Science
Over 12 billion metric tons of carbon dioxide (CO2) accumulate in our atmosphere every year
due to fossil fuel burning and deforestation. This ongoing buildup of CO2 and other
greenhouse gases is trapping heat in the atmosphere that would otherwise escape to outer
space. Atmospheric concentrations of CO2 are now 30 percent above their 18th-century
levels. Methane (CH^), the second most important global warming gas of concern, is now
150 percent more abundant in our atmosphere. Nitrous oxide (N2O) concentrations have
increased 17 percent. And more recently, emissions of HFCs, PFCs, and SF6—all very strong
heat-trapping gases—have begun contributing to this human-induced gas buildup in the
atmosphere.
In 2001, both the Intergovernmental Panel on Climate Change (IPCC) and the U.S.
National Academy of Sciences reached essentially the same conclusions about the current and
likely future climatic effects of the increasing atmospheric concentrations of these gases. The
National Academy stated, "The IPCC's conclusion that most of the observed warming of the
last 50 years is likely to have been due to the increase in greenhouse gas concentrations
accurately reflects the current thinking of the scientific community on this issue."
The warming is expected to continue, but by how much depends on many factors. The
IPCC projects that globally averaged surface temperatures will increase by 2.5-10°F by 2100,
compared to 1990. The range primarily reflects different assumptions about the future growth
of greenhouse gas emissions and the sensitivity of our climate to the heat-trapping effect of
these gases. The National Academy therefore asserts that "national policy decisions made
now and in the longer term future will influence the extent of any damage suffered by
vulnerable human populations and ecosystems
laterin this century."
The exact impacts of further climate change
remain difficult to project, especially as one
moves from larger to smaller geographic scales.
However, some regions and sectors of the
economy have been identified as being
particularly vulnerable. The National Academy,
for example, highlights that "some models project
an increased tendency toward drought over semi-
arid regions, such as the U.S. Great Plains," and
that "hydrological impacts could be significant
over the western United States, where much of
the water supply is dependent on the amount of
snow pack and the timing of the spring runoff."
Another key uncertainty that remains is whether
or not we can arrive at a "safe" level of
atmospheric greenhouse gas concentrations.
Neither the IPCC nor the National Academy can
answer this question definitively at this time, as it
requires not only scientific and economic
analysis, but also value judgements regarding
acceptable risks for diverse populations and
ecosystems. According to the National Academy,
however, "risk increases with increases in both the
rate and magnitude of climate change."
FIGURE 3.
Global atmospheric concentrations of three
well-mixed greenhouse gases
Chan
360
340
Atmospheric concentration
ppb) CH4(ppb) C02(ppm;
ro w -Nioroui-Nl ro ro w w
03 o ro
o o ooooo oooo
o
^ 270
250
10
ges in Atmospheric Concentration
CO2, CH4, and N20
- Carbon Dioxide
1.5
Ji.o
U~~*-/
- Methane
• -• ft. -.-. .- rt -z&- , •— ;• ~M«*"^
- Nitrous Oxide
; j:
= • .. "-. -.: • '" • •: "'
I 0.5
0.0
0.5
0.4
0.3
0.2
0.1
0.0
0.15
0.10
0.05
0.0
E
c
'o
J5
CD
05
T3
CO
DC
00 1200 1400 1600 1800 2000
Year
Source: IPCC Third Assessment Report 2001
-------
PARTNERSHIPS CHANGING THE WORLD
SUMMARY OF PROGRAM ACHIEVEMENTS
THROUGH 2001
The major environmental and economic achievements across EPA's climate protection
partnerships,2 based on actions that business partners and consumers have taken through
the end of 2001, are summarized below.
Environmental Benefits
• Greenhouse gas emissions were reduced by 38 million metric tons of carbon
equivalent 3 (MMTCE) in 2001 alone—the same as eliminating the emissions from
more than 25 million cars.
• Nitrogen oxides (NOX) were reduced by 140,000 tons in 2001 alone.4
• Reductions in greenhouse gas emissions of more than 33 MMTCE per year are locked
in between now and 2012.
Economic Benefits
• Consumers and businesses have locked in investments in
energy-efficient technologies exceeding $13 billion.
• Net of their investments in energy-efficient technologies,
consumers and businesses are saving about $70 billion
cumulatively through 2012 and more than $6 billion in 2001
alone.
Program Effectiveness
Every federal dollar spent on these partnership programs through
2001 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.
CPPD carbon reductions compared
to program goals
38
I I
I I I
ri 11
'95 '96
YEAR
'97
'98
'99 '00 '01
TARGET •ACTUAL
Source: EPA Climate Protection Partnerships Di
This report provides results for the voluntary programs operated by the Climate Protection Partnerships Division
(CPPD) at EPA. It does not include emission reductions attributable to Waste Wise, the State and Local Outreach
Program, transportation programs, the Significant New Alternatives Program, or the landfill rule, which are the
remaining actions in EPAs comprehensive climate program. EPA estimates the reduction in greenhouse gas emissions
across the entire set of climate programs to be about 65 MMTCE in 2001.
Reductions in annual greenhouse gas emissions for all EPA programs, including non-CC>2 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.
Based on data from the Emissions & Generation Resource Integrated Database (E-GRID) Version 2.0, released
September 2001.
-------
CLIMATE PROTECTION PARTNERSHIPS DIVISION 2001 ANNUAL REPORT
FIGURE 5.
Annual savings in energy use as a result
of CPPD's partnership programs
Source: EPA Climate Protection Partnerships Di
Key Accomplishments
Energy Efficiency
• The ENERGY STAR program saved a significant amount of energy in 2001—more than
80 billion kilowatt hours (kWh) and 10,000 megawatts (MW) of peak power, the
amount of energy required to power more than 10 million homes.
• The ENERGY STAR label has become the national symbol for energy efficiency,
recognized by more than 40 percent of the American public. It is being used by more
than 1,200 manufacturers across a total of 13,000 individual product models in over
35 product categories. Americans bought 150 million ENERGY STAR labeled products in
2001, contributing to the more than 750 million ENERGY STAR
products bought throughout the past decade.
• More than 1,600 builder partners constructed over 57,000
ENERGY STAR labeled homes, locking in financial savings for
homeowners of more than $15 million annually.
• The national energy performance rating system was used to
evaluate more than 10,000 buildings; 11 percent of office
building space and 8 percent of schools have been benchmarked
with 435 office buildings and 285 schools earning the
ENERGY STAR label. In 2001, EPA added energy performance
rating capabilities for grocery stores and hospitals.
• EPA added a home benchmarking tool to its online "toolbox,"
which allows homeowners to evaluate their home's efficiency.
EPA also introduced ENERGY STAR Home Sealing, a package
that helps homeowners improve the energy performance of their
homes during remodeling and renovation.
• An international agreement was finalized allowing Canada to
implement an energy efficiency labeling program for a variety
of consumer and business products, modeled after ENERGY STAR.
Canada joins the European Community, Japan, Taiwan,
Australia, and New Zealand in adopting ENERGY STAR to
identify efficient products.
'00
'01
Clean Energy
• In July, EPA launched the Green Power Partnership with more than 20 companies,
government agencies, and other organizations making the commitment to buy
green power.
• EPA launched the Combined Heat and Power Partnership in October with
18 founding partners representing a variety of industrial sectors.
-------
PARTNERSHIPS CHANGING THE WORLD
Methane and High-GWP Environmental Stewardship
• Partnership programs achieved reductions of non-carbon dioxide (CO2) gases—
methane, perfluorocarbons (PFCs), hydrofluorocarbons (HFCs), and sulfur
hexafluoride (SF6)—totaling more than 18 MMTCE in 2001 alone.
• Partner actions are projected to maintain methane emissions below 1990 levels
through 2010.
• The number of landfill gas-to-energy projects grew to almost 325 by the end of 2001.
• EPA renewed its partnership with the semiconductor industry, which has established a
new goal to reduce PFC emissions 10 percent below their 1995 levels by 2010.
Estimation of Environmental and Economic Benefits
The environmental and economic benefits from EPA's partnership programs are
presented in 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 2012 from the technology
investments and product purchases made through the year 2001 due to these
partnership efforts.
TABLE 2.
Summary of the cumulative benefits through 2O12 from the actions taken by
partners through 2OO1 (in billions of 2OO1 dollars)
Program
NPV of NPV of Technology
Bill Savings Expenditures
NPV of GHG Reductions
Net Savings (MMTCE)
ENERGY STAR
Labeled Products
Building and Industrial
Improvements
Methane Programs
Environmental
Stewardship Programs
$75.9
$42.0
$33.9
$5.5
$10.7
$2.9
$7.7
$2.5
$65.2
$39.1
$26.1
$3.0
241
104
137
161
117
TOTAL
$81.4
$13.1
$68.2
518
NPV: Net Present Value
NOTES: Technology Expenditures include O&M expenses for methane programs.
Bill Savings and Net Savings include revenue from sales of methane and electricity.
ENERGY STAR labeled homes are included in the Labeled Products totals.
Totals may not equal sum of components due to independent rounding.
— : Not applicable.
The Endnotes of this Annual Report (see page 48) provide documentation of the
estimation methodology and the assumptions used in measuring the performance of the
partnership programs. A few key methodological concepts and assumptions are
summarized on the following page.
-------
CLIMATE PROTECTION PARTNERSHIPS DIVISION 2001 ANNUAL REPORT
Stream of Benefits
In Table 2, the benefits are presented through 2012 for investments and program actions
that have been "locked-in" through the end of 2001. 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 2001 and 2012. This assumes that
when someone purchases an ENERGY STAR labeled product, he/she is likely to replace it with
another ENERGY STAR product. For products with a short lifetime, such as computers, fax
machines, and audio equipment, it means replacement purchases keep total energy savings
at 2001 levels; for products with long lifetimes, such as lighting fixtures, transformers, and
homes, it means that no additional purchases are made after 2001. Programs with 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.
GHG Emission Reductions
Many of the Division's 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 the 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.
Net Present Value of 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 the Energy Information Administration (EIA) Annual Energy Outlook 2002 and
Annual Energy Review 2000 for each year in the analysis (1993-2012). Energy bill savings
also include revenue from the sale of methane and/or the sale of electricity made from
captured methane. The net present value (NPV) of these savings was calculated using a
4-percent discount rate and a 2001 perspective.
Net Present Value of Expenditures on Energy-Efficient Technologies
For most of its programs, the Division's estimate of expenditures on energy-efficient
technologies is based on the partners' cost of energy-efficient equipment, including the
cost of financing. For ENERGY STAR labeled products, investment was taken as the
incremental 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 4-percent
real rate of interest. The NPV of these expenditures was calculated using a 4-percent
discount rate and a 2001 perspective.
Net Present Value of the Net Savings
The NPV of the Net Savings is the difference between the NPV of energy bill savings and
the NPV of expenditures on energy-efficient technology. It represents the net value to
partners and ENERGY STAR product consumers of participating in the Division's programs.
-------
CLIMATE LEADERS PROGRAM
CLIMATE LEADERS PROGRAM
CLIMATE
U.S. Environmental Protection Agency
Climate Leaders is EPA's newest
industry-government partnership.
It encourages companies to develop
long-term comprehensive climate
change strategies. Many corporations
are already making great strides in
reducing their greenhouse gas emissions through participation in EPA programs
such as ENERGY STAR. Climate Leaders gives these companies, and others, the
opportunity to take their climate commitment one step farther.
Partners set a corporate-wide greenhouse gas reduction goal and inventory
their emissions to measure progress. By reporting inventory data to EPA,
partners create a lasting record of their accomplishments through an EPA-
approved greenhouse gas inventory protocol.
Partners also identify themselves as corporate
environmental leaders and strategically
position themselves through better
greenhouse gas emissions management as
climate policy continues to unfold.
The groundwork for this new initiative was
completed in 2001, with a formal launch in
early 2002. More information about the
climate leaders that are working with EPA in this program can be found on
the Web at www.epa.gov/climateleaders.
"It is Alcoa's policy to operate
worldwide in a safe,
responsible manner which
respects the environment and
the communities where we
operate. Alcoa believes
climate change is an issue of
vital importance and has
committed to reducing our
direct greenhouse gas
emissions. We believe our
participation in Climate
Leaders will help us and the
nation in addressing this
issue."
— William J. O'Rourke, Vice President
Environment, Health, & Safety and Audit
Alcoa Inc.
-------
CLIMATE PROTECTION PARTNERSHIPS DIVISION 2001 ANNUAL REPORT
FIGURE 6.
More than 5O% of projected energy use
1O years from now will come from equipment
purchased between now and then
COMMERCIAL/
RESIDENTIAL
TRANSPORTATION
ENERGY STAR PROGRAM
Energy Efficiency is Smart Investment
Energy efficiency is well recognized for providing many benefits. These include:
• Cost savings. American families and businesses spend $600 billion each year on
energy bills—almost one and a half times what is spent on K-12 education. Energy
efficiency offers great potential for reducing these energy costs. Many homeowners and
businesses could use 30 percent less energy, without sacrificing services or comfort, by
investing in energy efficiency. Many of these purchases or
investments offer financial returns worth more than double
the return of other common options, such as money market
funds or U.S. Treasury bonds.
• Greenhouse gas reductions. More than 50 percent
of the projected national energy use and CO2 emissions
10 years from now will come from the use of equipment
purchased between now and then (see Figure 6). Promoting
more efficient options could reduce greenhouse gas
emissions substantially as equipment is naturally retired
and replaced.
• Energy reliability. By reducing demand, energy efficiency
is a low-cost (2-3 cents/kWh) contributor to system
adequacy—the ability of the electric system to supply the
aggregate energy demand at all times—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—the ability of the system to withstand
sudden disturbances—by reducing the load and stress at
various points in the power distribution system, thereby
decreasing the likelihood of failures.
• Energy security. Between 1973 and 2000, U.S. dependence on foreign oil rose from
about 35 percent to more than 52 percent of U.S. consumption. During the same
period, the import share of natural gas rose from less than 5 percent to more than
15 percent and continues to rise. Energy efficiency and the use of renewable energy are
environmentally sound ways to reduce foreign oil and gas imports and to moderate the
effects of energy price spikes.
The potential of energy efficiency is not, however, being fully realized nationwide for a
variety of reasons. With relatively low energy prices in the United States, many
organizations have focused much less on energy efficiency improvements and much
more on improvements in labor or capital productivity. 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 them in their areas, and whether the real energy savings will live up to the claims.
The lack of answers to these important questions shows a large information gap for
energy efficiency. The ENERGY STAR program seeks to fill this gap and enables
INDUSTRY
• NEW STOCK PURCHASES
• EXISTING EQUIPMENT STOCK
Source: EPA Climate Protection Partnerships Di
10
-------
ENERGY STAR PROGRAM
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 by 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 energy-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
thus achieve more with their resources.
Introduced by EPA in 1992 for energy-
efficient computers, the ENERGY STAR label
has been expanded to more than 35 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 became eligible for the label in 1995.
Efficient buildings became eligible for the
label in 1999 when EPA unveiled a new
standardized approach for measuring the
efficiency (or energy performance) of an
entire building.
Money Isnt All You're Saving
California Consumers Kept Lights on During Electricity Crisis
A new report by the DOE Lawrence Berkeley National Laboratory (LBNL) concludes that it is California consumers—
not the mild weather or the cooling economy—who should get credit for avoiding blackouts and keeping the lights
on in summer 2001 by embracing energy efficiency and conservation and reducing their peak demand by up to
5,500 megawatts (MW).
"Many observers predicted that California would face widespread rolling blackouts in the summer of 2001," states author
Charles Goldman. "In April 2001, the North American Electric Reliability Council predicted that the state would have
about 150 hours of rolling blackouts. Others predicted that the cost of these blackouts would range from $2 billion to
$20 billion. But the blackouts never happened last summer. Our research addresses the question of what role customer load
reduction played."
A central conclusion of the LBNL study is that consumers' actions to reduce their electricity consumption were the driving
force behind the load reductions (reduced demand for electricity) observed in summer 2001. An important lesson to take
from this, according to the report, is that a pre-existing energy efficiency services infrastructure can help the state's
policymakers respond quickly to short-term power shortage emergencies. California was able to undertake massive energy
efficiency projects quickly because the underlying services were already there, due in part to the fact that the state's
policymakers and regulators have historically supported and funded energy efficiency programs.
Source: Goldman et a/., 2002
1 1
-------
CLIMATE PROTECTION PARTNERSHIPS DIVISION 2001 ANNUAL REPORT
The potential benefits from full adoption of ENERGY STAR over the next 10 years are
tremendous:
• If everyone in the country bought only ENERGY STAR labeled products during the next
decade, the nation would cut 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.
TABLE 3.
ENERGY STAR Program: annual goals and achievements
2001
2002
Energy Saved
(Billion kWh)
Emissions Prevented
(MMTCE)
Energy Saved
(Billion kWh)
Emissions
Prevented (MMTCE)
Computers
Monitors
Printers
Copiers
Exit Signs
Lighting
Goal
for ENERGY STAR 75
ntial Buildings Total 75
ucts Subtotal
rs —
ice Equipment
s
sctronics
xlucts
-ovements Subtotal
4
ents Total
Achieved
84.3
84.3
45.82
4.2
18.6
5.4
0.9
5.6
2.4
3.3
2.9
2.3
38.6
Goal
18.2
15.1
8.2
6.9
3.1
Achieved
19.7
16.6
9.2
0.8
3.6
1.0
0.4
1.1
0.5
0.6
0.6
0.6
7.4
3.1
Goal
85
Goal
20.3
17,0
9.5
7.5
3.3
Results for office equipment from Webber et al., 2002.
^ The kWh savings imply peak demand savings of more than 10 gigawatts (GW), based on conservation load factors developed by LBNL (Koomey et al., 1990).
^ Results for building improvements from Horowitz, 2001.
' Results for industrial improvements from Dutrow, 2002.
Totals may not equal sum of components due to independent rounding.
: Not applicable.
The economic and environmental benefits of ENERGY STAR through the year 2001 are
already substantial. More than 750 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 gas emissions avoided in
2001 are provided in Table 3. Additional program achievements within the residential,
commercial, and industrial sectors are presented in the sections beginning on page 13.
The ENERGY STAR label is being adopted in countries around the world. The year 2001
saw the signing of an international agreement with Natural Resources Canada allowing it
to implement an energy efficiency labeling program modeled after ENERGY STAR for
commercial and residential products. This complements existing ENERGY STAR agreements
with the European Community, Japan, Taiwan, Australia, and New Zealand.
12
-------
ENERGY STAR PROGRAM
ENERGY STAR in the Residential Sector
ENERGY STAR continues to grow as a powerful platform for delivering energy efficiency to
homeowners across the country. Major highlights of 2001 include:
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, dehumidifiers, ventilation fans, ceiling fans, and telephony
products to the ENERGY STAR family in 2001, bringing the total to
38 product categories, of which 33 are routinely used in the home.
EPA also updated the specifications for geothermal heat pumps. More
than 1,200 manufacturers are now partners in the ENERGY STAR
program, using the label on more than 13,000 product models.
Building consumer awareness of the ENERGY STAR label as
the national, government-backed symbol for energy
efficiency. Recent surveys, including a 2001 household survey
sponsored by the Consortium for Energy Efficiency, show that more
than 40 percent of consumers nationwide recognize the ENERGY STAR
label. In addition, a majority of consumers report that the label
influenced their purchasing decisions, and more than 70 percent
would recommend ENERGY STAR to a friend. In November 2001,
EPA launched a new national campaign to help increase this
awareness. The campaign encourages Americans to help protect the
environment by changing today to energy-efficient products and
practices. The message is an easy one: Look to ENERGY STAR to make a
change. By using ENERGY STAR to increase energy efficiency at home
and at work, each of us can make an enormous difference now and
for the future.
Dehumidifier
13
-------
CLIMATE PROTECTION PARTNERSHIPS DIVISION 2001 ANNUAL REPORT
Residential
Air Conditioner
Programmable
Thermostat
Expanding the use of the ENERGY STAR label on efficient new homes. Homes that
earn the ENERGY STAR label 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. In 2001, EPA exceeded its
goal with the construction of close to
27,000 ENERGY STAR labeled new homes.
This brings the total of new homes that
have earned the ENERGY STAR label to
57,000. ENERGY STAR has achieved market
penetration of up to 20 percent in key target
areas such as Phoenix and Las Vegas.
Developing home improvement
opportunities beyond labeled products.
In 2001, EPA expanded its work in
residential efficiency improvements. EPA is offering a new set of
recommendations for whole-house improvement called Home Performance
with ENERGY STAR. This new approach was launched with the New York
State Energy and Research Development Authority (NYSERDA) and the
Wisconsin Energy Conservation Corporation (WECC). It uses
performance-based building science techniques to maximize quality,
consistency, and effectiveness of energy efficiency improvements
in existing homes.
Additional home improvement initiatives include ENERGY STAR
Home Sealing, an expansion of the original labeled insulation
program to encompass the entire home "envelope." Many
homeowners do not realize that the loss of warmed or cooled air
through holes and cracks can equal as much airflow as leaving a
window open all winter (see illustration on page 17). With partner utility National
Grid in New England, ENERGY STAR launched Home Sealing in late 2001 as a new
service to improve comfort and reduce energy bills.
2001 ENERGY STAR Award Winner
Sears, Roebuck & Co.
Hoffman Estates, Illinois
For the third consecutive year, Sears has distinguished itself as a champion in promoting energy efficiency to the American
public. Sears continues to offer the widest array of ENERGY STAR qualified appliances under one roof, including leading
brands and its own Kenmore brand. In 2000, Sears pledged to sell more than one million ENERGY STAR labeled appliances
and did so, repeating this achievement in 2001. In addition, Sears sold more than 1.5 million ENERGY STAR labeled home
electronics products and more than 30,000 labeled heating and cooling units. Also in 2001, Sears created "the Sears
Experience" for all of its 863 mall-based appliance showrooms that showcased unique ENERGY STAR product placement and
consumer education materials. Sears introduced two of the most efficient appliances in their categories—the Kenmore Elite
refrigerator and the HE3t clothes washer. Both products exceed the efficiency requirements of ENERGY STAR. Contributing
significantly to its success, Sears has demonstrated a strong commitment to working with regional ENERGY STAR programs
across the country, offered comprehensive sales training programs for its staff, and directed its vendors to supply
ENERGY STAR qualified products.
14
-------
ENERGY STAR PROGRAM
Highlighting and promoting ENERGY STAR labeled products in retail
stores and through key state-level energy efficiency programs. In
2001, EPA worked with more than 160 utilities and state or regional energy
efficiency providers that serve nearly 60 percent of the households in the
United States in promoting energy efficiency with ENERGY STAR. More than
50 of them encouraged ENERGY STAR labeled homes as part of their residential
construction programs. EPA also partners with over 450 retailers in promoting
ENERGY STAR labeled products in more than 15,000 storefronts across
the country.
In 2002, EPA will:
• 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. EPA expects to update specifications
for televisions/VCRs, residential air conditioning/heat pumps, and
residential light fixtures. EPA will also add new products and services
to the ENERGY STAR family.
• Continue to build consumer awareness of the
ENERGY STAR label through the new integrated
public awareness campaign, as well as product-
focused national campaigns for heating and
cooling equipment and lighting products, with
the goal of raising awareness of the label to
more than 45 percent.
"Panasonic is very pleased to
take industry leadership in the
ENERGY STAR program. Today
we offer about 450 ENERGY
STAR qualifying Panasonic
models in 15 different
categories. Panasonic
continues to devote significant
resources to the
development of more
innovative energy-
efficient products and to
help educate customers
about the value of
conserving energy and
buying ENERGY STAR. "
— Don Iwatani,Chairman and CEO
Matsushita Electric Corporation of America
2001 ENERGY STAR Award Winner
Panasonic
Secaucus, New Jersey
Panasonic is a true leader in offering energy-efficient products. Panasonic and its affiliated Quasar and Technics brands
currently offer an exemplary 446 ENERGY STAR qualified product models spread over 15 product categories. Last year alone
marked the introduction of 164 newly qualifying models, expanding Panasonic's participation to all product categories.
Panasonic's diverse product line includes home electronics, office equipment, home appliances, heating and cooling
equipment, and lighting. Panasonic's commitment to ENERGY STAR also extends into sales and marketing, consumer
education, specification development, product labeling, internal training, and public outreach. Panasonic actively engages
other manufacturers and retailers in ENERGY STAR efforts. In 2001 Panasonic launched an Internet-based sweepstakes, which
included a quiz designed to educate consumers on the benefits of ENERGY STAR and which was experienced by more than
30,000 entrants.
15
-------
CLIMATE PROTECTION PARTNERSHIPS DIVISION 2001 ANNUAL REPORT
Expand Home Performance with ENERGY STAR pilot programs in New York State and
Wisconsin to Austin, Texas and Kansas City, Missouri.
Expand home improvement programs to promote in-home services such as ENERGY
STAR Home Sealing, duct sealing, and proper installation and maintenance of heating
and cooling equipment. One key component will involve increasing the number of
trained contractors to perform these services. ENERGY STAR will continue to work
closely with the Building Performance Institute and the North American Technical
Excellence Association to expand the number of qualified technicians who understand
energy efficiency and the advantages of ENERGY STAR.
• Work with home builders
and allies to build, test, and
label 36,000 new homes as
ENERGY STAR in 2002, by
expanding the outreach
partnership to 9 metropolitan
areas and building upon
EPAs manufactured housing
alliance.
• 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, residential heating
and cooling equipment, and
consumer education.
2001 ENERGY STAR Award Winner
D.R. Wastchak, L.L.C.
Tempe, Arizona
With over 15,000 homes certified as ENERGY STAR to date, D.R. Wastchak, L.L.C. has labeled more homes than any other
ratings provider and fueled much of the growth in ENERGY STAR housing in Phoenix. In 2001, D.R. Wastchak verified and
labeled over 3,600 homes, representing nearly 15 percent of all ENERGY STAR homes labeled nationwide. The company also
added 12 new builders to the ENERGY STAR program last year. D.R. Wastchak has been a key champion in ENERGY STAR
marketing and advertising efforts in Phoenix, and was a primary coordinator of the successful 2001 Phoenix Showcase of
ENERGY STAR labeled homes, which highlighted ENERGY STAR builder partners in the Phoenix market. These efforts serve as an
exemplary model for other active ENERGY STAR markets across the country.
16
-------
ENERGY STAR PROGRAM
Home Performance with ENERGY STAR
Home Performance with ENERGY STAR promotes the whole-house approach to improving the
overall energy efficiency of existing homes. By systematically addressing the energy use in the
home—from the insulation and air leakage to the HVAC system to appliances and lighting—
contractors implementing Home Performance with ENERGY STAR may be able to reduce the
total energy use of a home by up to 40 percent. To achieve these significant reductions, the
program emphasizes diagnostic testing, the application of building science principles, and the
quality installation of improvement measures. While not all homes will be able to cost-
effectively reach this level of savings, by taking a comprehensive look at an individual home,
contractors can identify and implement the best solutions for that home.
To develop a cadre of residential contractors who have the knowledge and skills to provide
diagnostic services and properly install energy efficiency measures, ENERGY STAR is partnering
with national training and certifying organizations. EPA is continuing its partnership with
the Consortium for Energy Efficiency (CEE) and the National Association of Technicians for
Excellence (NATE) to promote best practices for residential HVAC systems. Further, EPA has
begun a partnership with the Building Performance Institute (BPI) to develop and promote
the certification of whole-house energy improvement contractors and the use of best practices
in all aspects of improving existing homes.
Two states have stepped forward to implement this ambitious program. In 2001, the New
York State Energy Research and Development Authority (NYSERDA) and the Wisconsin
Energy Conservation Corporation (WECC) on behalf of the State of Wisconsin launched
Home Performance with ENERGY STAR. NYSERDA combined an intensive marketing
campaign and the services of BPI to provide contractor certification as it successfully rolled
the program out across the state. NYSERDAs marketing has uncovered a large consumer
demand for comprehensive energy-saving services, which in turn provides a strong incentive
for contractors to seek out rigorous training and certification. WECC also began with a
marketing campaign and then focused on contractor training and mentoring to establish
initial capacity in the market.
Potential air leaks in a home
1 7
-------
CLIMATE PROTECTION PARTNERSHIPS DIVISION 2001 ANNUAL REPORT
The Department of Housing and Urban Development and ENERGY STAR
Each year, U.S. Department of Housing and Urban Development (HUD) programs assist
5 million renters and owners—almost 5 percent of all households in the nation. HUD spends
some $4 billion annually on energy, through utility allowances to renters, housing assistance
payments to private building owners, and operating grants to public housing authorities.
Improving energy efficiency in the public housing stock could provide significant savings to
building residents, property owners, and the federal government.
Recognizing this potential savings and responding to the President's National Energy Policy,
HUD recently adopted an Energy Action Plan. Prepared by HUD's multi-office Energy Task Force,
the Action Plan identifies 21 separate measures that HUD could implement to improve the
overall energy efficiency of HUD-financed housing. ENERGY STAR is one of several key initiatives
that HUD will embrace over the coming year.
Under this Action Plan, HUD and ENERGY STAR will coordinate resources to help achieve HUD's
mission to provide affordable housing to the disadvantaged, as well as EPA's mission to protect
the environment. Specifically, the Action Plan calls for housing authorities to purchase ENERGY
STAR labeled products and equipment, most likely through bulk purchasing orders coordinated
by HUD or ENERGY STAR, to help reduce energy costs. Under HUD's HOPE VI Program for single-
family housing, all new housing must be built to ENERGY STAR labeled home specifications.
ENERGY STAR is collaborating with HUD to ensure that such purchasing and construction are cost
effective for property owners. HUD's network of public housing authorities, FHA lenders and
homeowners, and property managers provides an excellent distribution channel for information
on energy efficiency and ENERGY STAR. ENERGY STAR is developing information packets for
homeowners, renters, and housing managers detailing the advantages of ENERGY STAR.
"Jeffco Public Schools is pleased to partner with ENERGY STAR on this important effort. As a partner, we
operate more efficiently and cost-effectively and have been able to carry these savings directly to our
bottom line. We're also proud of the positive effects these efforts have on the environment."
—Jane Hammond, Superintendent
Jefferson County Public Schools
2001 ENERGY STAR Award Winner
Jefferson County Public Schools
Golden, Colorado
Jefferson County Public Schools is the largest school district in Colorado with more than 87,000 students and
135 school buildings. Its commitment to conserving natural resources starts with the Board of Education's resolution
that outlines the District's energy management plan. The District has established an energy management team with a
goal of achieving 20 percent or greater cost avoidance on an annual basis, and includes comparing schools to ENERGY
STAR specifications to find greater improvements. Understanding how important measurement is to sound energy management,
the District benchmarked more than 80 percent of its school buildings, earning the ENERGY STAR label for 41 schools.
Now it is turning its attention to upgrading those buildings that have the most energy-saving opportunities. Jefferson
County has saved energy while improving the indoor environment for students. An active participant in EPA's Indoor Air
Quality Tools for Schools, the District has received an Excellence Award for indoor air quality. Its annual energy savings
are approximately $2.8 million, which equates to hiring an additional 80 people or purchasing 70,000 text books.
18
-------
ENERGY STAR PROGRAM
ENERGY STAR in the Commercial Sector
EPA continued to have tremendous success in promoting energy efficiency in the commercial
sector in 2001. Highlights for the year include:
Building and expanding partnerships to add new commercial products to
the ENERGY STAR family. Light commercial HVAC and reach-in refrigerators and
freezers were added in 2001 to the list of commercial products that can earn the
ENERGY STAR label.
Promoting the innovative rating of building
energy performance and the labeling of high
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. EPA first developed this online rating for office buildings.
Schools (K-12) were added in 2000. Use of the national energy performance rating
system more than doubled in 2001, with over 10,000 buildings evaluated through the
year. Eleven percent of the office market and 8 percent of the schools market have
benchmarked with 435 office buildings and 285 schools earning the ENERGY STAR label.
Expanding the national building energy performance rating system to new
building types. EPA added the capability to rate the energy performance of
supermarkets and hospitals in 2001. The national building energy performance rating system
now has the capability to rate building types representing about 40 percent of carbon
emissions from the commercial building stock.
19
-------
CLIMATE PROTECTION PARTNERSHIPS DIVISION 2001 ANNUAL REPORT
"Food Lion is proud to have
taken a leadership role in
EPA's ENERGY STAR program.
The wise management of our
energy resources has resulted
in savings to the bottom line
that we pass along to our
customers, helping us
maintain our low-price leader
status in the market. In
addition, the responsible
approach to energy
management has helped
Food Lion take a leadership
role in the grocery industry's
pollution prevention efforts."
— Bill McCanless, President and CEO
Food Lion LLC
National Building Energy Performance
Rating System
The national building energy performance rating system became available for
supermarkets and hospitals in 2001. To earn the ENERGY STAR label, these
buildings must be among the top 25 percent most efficient in the country and
meet important indoor environment quality targets.
Since the rating system was
introduced for supermarkets in the
summer of 2001, extending the
system beyond office buildings and
schools, more than 1,300 stores
have benchmarked with three earning
the ENERGY STAR. Benchmarking
became available in late fall of 2001
for hospitals, and over 70 hospitals
have benchmarked since that time.
Three hospitals have earned the
ENERGY STAR label.
The following hospitals and supermarkets were the first to receive an ENERGY
STAR label in 2001:
Hospitals
Naval Medical Center San Diego
California
Memorial Hospital of Carbondale
Illinois
St. Joseph's Medical Center
New York
Supermarkets
Food Lion
North Carolina
Shaw's
Massachusetts
Pathmark
New York
2001 ENERGY STAR Award Winner
Food Lion, LLC
Salisbury, North Carolina
Food Lion, LLC, the U.S. division of Brussels-based Delhaize Group, operates more than 1,200 stores in 11 Southeastern
and Mid-Atlantic states. Food Lion has integrated energy management into its corporate business objectives. The company
benchmarks all of the stores in its portfolio, evaluates the worst performing stores on a monthly basis, and provides
quarterly energy bonuses to maintenance staff to encourage improvements. A key partner in developing the EPA benchmark
for supermarkets, Food Lion has used the energy ratings to justify recommissioning services. Food Lion knows that no
matter how efficiently the store is designed, it will not be top performing if there are wasteful energy practices. It uses
newsletters and other opportunities to communicate good practices to store managers and operations personnel. Food Lion
extends its communication to customers by placing the ENERGY STAR logo on its grocery bags and providing links to ENERGY
STAR on its Web site. In 2001, even with a 6-percent increase in store square footage, Food Lion reduced energy
consumption by 1.3 percent—equivalent to over $50 million in sales and the pollution associated with approximately
14,000 cars.
20
-------
ENERGY STAR PROGRAM
Expanding partnerships with organizations, large and small, public
and private, to provide them with effective energy efficiency
investment tools. Over the past 10 years, EPA has partnered with companies and
organizations representing approximately 17 percent of the U.S. building floor space
who have committed to improving their energy performance.
Among others, EPA has collaborated with (1) commercial real estate companies
representing over 3.4 billion square feet of building space; (2) universities and
schools including large school districts such as San Diego Unified, Chicago,
and Fairfax County as well as smaller districts like Academy School District
#20 in Colorado and Sachem Central School District in New York; and
(3) over 5,000 small businesses and organizations to help them lower their
overhead through lower energy bills.
Also in 2001, EPA partnered with telecommunications companies such as
Verizon and BellSouth, in coordination with the U.S. Telecom Association, to
begin development of an energy performance rating for energy-intensive
central offices that house high-tech equipment. In addition, major real estate
investment managers and pension funds, such as Lend Lease and TIAA,
committed to using ENERGY STAR tools to help improve energy management
throughout their real estate portfolios.
EPA continued to work with the
energy services industry to assist these
companies in integrating the national
building energy performance rating
system into their customer services.
These service and product providers
rated almost 750 buildings, submitted
about 75 applications for the ENERGY
STAR label, and provided professional
engineer (PE) verification on over
150 labeled buildings.
"With an annual energy bill of
nearly $500 million, Verizon
knows that saving energy
means saving money.
ENERGY STAR is helping us
learn where and how our
energy investments can
reap the greatest savings,
which is good for our
bottom line and good for
the environment."
—Ivan Seidenherg
President and Chief Ixeculwe ()ffifer
Verizon C. ttions Inc.
2001 ENERGY STAR Award Winner
Verizon Comunications Inc.
New York, New York
A Fortune 10 company, Verizon Communications Inc. is not only a recognized leader in its approaches to energy
management, but the company also uses its leadership position to establish energy performance requirements of its
product vendors. In 2001, Verizon reduced the environmental impact of its operations, while saving an estimated $41 million
in energy consumption costs, and communicated this improved environmental and financial performance to its employees,
shareholders, and consumers. As part of a comprehensive strategic energy management plan, Verizon benchmarked
145 facilities, initiated a series of building-wide improvements, created a corporate-wide employee volunteer effort of
250 "energy champions," and adopted energy-efficient purchasing policies for new equipment. In addition, Verizon
educated its 256,000 employees on the importance of energy performance and their role in controlling energy use and
costs. Demonstrating exceptional leadership, Verizon spearheaded an initiative with the United States Telecom Association
and the North American Communications Environmental Excellence Initiative to develop an energy performance benchmark
for telecom central offices and lead fellow telecom organizations to partner with ENERGY STAR in this effort.
21
-------
CLIMATE PROTECTION PARTNERSHIPS DIVISION 2001 ANNUAL REPORT
EPA partnered with about 20 utilities, states, and regional energy efficiency program
managers to integrate ENERGY STAR into their activities to reduce energy use in the
commercial sector. Specific efforts include work with the State of California to promote
building energy performance rating to businesses and organizations throughout the state
in response to the energy crisis of 2001.
In 2002, EPA will:
• Add new products for the commercial marketplace to the ENERGY STAR family. 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. EPA expects to update specifications for boilers. 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.
• Develop additional energy performance ratings to provide benchmarking
capabilities for hotels, discount stores and home centers, and central offices (telephone
switching stations).
• Continue to promote the national building energy performance rating system and work
with building owners and managers to double the number of buildings rated and the
number of buildings that qualified as ENERGY STAR in 2001.
• Release innovative energy and financial performance metrics to Wall Street and the
financial community to better assess the impact of energy use on businesses'
bottom line.
• Work with restaurant and hotel companies to expand the purchase of ENERGY STAR
products to increase energy savings opportunities.
• Continue working with energy service providers to integrate the national building
energy performance rating system into their service offerings.
• Continue to collaborate with utilities, states, and regional energy program partners to promote
ENERGY STAR'S national energy performance rating system, including the launch of new
partnerships in the Northeast, Northwest, Midwest, Texas, and California.
22
-------
ENERGY STAR PROGRAM
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 EPAs
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 EPAs programs from those of
other energy efficiency programs. The EPA impacts are referred to as market transformation
because the intent of EPAs public-private voluntary partnerships is to encourage the
formation of self-sustaining markets for energy-efficient products and services, rather than
temporarily increasing 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 2001 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 reductions
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.
23
-------
CLIMATE PROTECTION PARTNERSHIPS DIVISION 2001 ANNUAL REPORT
"General Motors is proud to be
part of the ENERGY STAR
program, which we believe is
an excellent example of a
collaborative public-private
partnership. EPA's recognition
ofGM's excellence in energy
management reinforces our
drive to reduce energy use.
These kinds of energy
initiatives are good for the
environment, good for
business, and good for our
customers."
— Elizabeth A. Lowery
Vice President, Environment and Ei
General Motors Corporation
ENERGY STAR in the Industrial Sector
ENERGY STAR encourages superior corporate energy management, providing
tools and resources specific to meet the needs of manufacturers. In 2001,
ENERGY STAR continued its work with the U.S. manufacturing industry;
highlights of this activity include:
• Collaborating with partners on concentrated efforts to improve energy
performance within two major U.S. industries—motor vehicle assembly
and brewing.
• Developing energy performance indices for motor vehicle and brewing facilities.
• Revamping the peer networking opportunities for industrial participants in
ENERGY STAR and conducting two national meetings to facilitate peer discussion
of effective strategies to reduce energy consumption among participants.
• Welcoming new partners to the program, for a combined total of more than
470 companies representing 14 percent of U.S. industrial energy use.
• Continuing technical support for small and medium size enterprises; more
than 40 percent of the partner companies have 100 or fewer employees.
In 2002, EPA will:
• Produce final energy performance indices for motor vehicle assembly and
brewing plants and begin development of similar indices for three additional
industries.
• Conduct energy performance focus group meetings with the auto and
brewing industries.
• Enhance ENERGY STAR in the industrial sector by initiating concentrated
efforts to improve energy performance with three new industries.
• Expand the peer-exchange opportunities for U.S. industry and ENERGY
STAR partners by improving the national networking meetings and by
providing additional settings for such exchanges.
• Continue to partner with industrial organizations, large and small, around a
joint goal of improved energy performance.
2001 ENERGY STAR Award Winner
General Motors Corporation
Pontiac, Michigan
General Motors, a world leader in vehicle manufacturing, has a comprehensive corporate energy management program that
tracks the energy performance of its business operations worldwide. General Motors established its global Energy and
Environment Strategy Board to integrate energy and environmental issues with core business decisions. As a result, its
corporate energy program includes (1) aggressive continuous-improvement energy performance goals, (2) a clear
procurement policy covering energy purchasing and the acquisition of manufacturing process and building operation
equipment, (3) benchmarking of plant energy performance internally as well as with key competitors, and (4) the Energy
Savings Project Implementation Process to promote energy projects on equal grounds with other core business operations.
General Motors uses its partnership with ENERGY STAR to promote energy performance throughout the corporation. General
Motors' corporate energy commitment has saved more than $400 million in the past 6 years and for 2001 expects a
reduction of 4.8 trillion BTUs from its 2000 levels. The cost savings for the reduction in 2001 translates to an equivalent profit
margin for vehicle sales of $800 million.
24
-------
ENERGY STAR PROGRAM
ENERGY STAR Award Winners
Partner of the
Year—Product
Manufacturers
Alside
Cuyahoga Falls, Ohio
Canon U.S.A., Inc.
Lake Success, New York
Good Earth Lighting
Wheeling, Illinois
Maytag Corporation
Newton, Iowa
Panasonic
Secaucus, New Jersey
Philips Lighting Company
Somerset, New Jersey
VELUX America Inc.
Greenwood, South Carolina
Whirlpool Corporation
Benton Harbor, Michigan
Partner of the Year—
Retailer
Sears, Roebuck & Co.
Hoffman Estates, Illinois
Change A Light,
Change the World Award
GE Lighting
Cleveland, Ohio
Midwest Energy Efficiency
Alliance
Chicago, Illinois
OSRAM SYLVAN IA
Danvers, Massachusetts
Excellence in Service
and Product Provider
Performance
Servidyne Systems, LLC
Atlanta, Georgia
Excellence in
Energy
Management
Arden Realty, Inc.
Los Angeles, California
BJ's Wholesale Club, Inc.
Natick, Massachusetts
Food Lion, LLC
Salisbury, North Carolina
General Motors Corporation
Pontiac, Michigan
Mines
Houston, Texas
Jefferson County Public
Schools
Golden, Colorado
Starwood Hotels & Resorts
Worldwide, Inc.
White Plains, New York
Excellence in Business
and Public Education
Society of Industrial and
Office Realtors
Washington, DC
Excellence in New
Homes
Reliant Energy HL&P
Houston, Texas
D.R. Wastchak, LLC.
Tempe, Arizona
Ence Homes
St. George, Utah
New Jersey ENERGY STAR
Homes
Mount Laurel, New Jersey
Vermont Energy Investment
Corporation
Burlington, Vermont
Excellence in
Manufactured
Housing
Champion Enterprises, Inc.
Auburn Hills, Michigan
Excellence in Home
Improvement
New York State Energy
Research and Development
Authority
Albany, New York
Excellence In Consumer
Education
Northeast Energy Efficiency
Partnerships, Inc.
Lexington, Massachusetts
Northwest Energy Efficiency
Alliance
Portland, Oregon
Sacramento Municipal Utility
District (SMUD)
Sacramento, California
Wisconsin Energy
Conservation Corporation
Madison, Wisconsin
Corporate Commitment
Award
Verizon Communications Inc.
New York, New York
Special Recognition
Awards
Industry Leadership
Hunter Fans
Memphis, Tennessee
Technical Innovation
Royal Vendors, Inc.
Kearneysville, West Virginia
Online Information
Lowe's Home Improvement
Wilkesboro, North Carolina
25
-------
CLIMATE PROTECTION PARTNERSHIPS DIVISION 2001 ANNUAL REPORT
"Using renewable energy to
reduce our ecological
footprint represents one of
the cornerstones ofKinko's
Environmental Vision
Statement. ForKinko's,
purchasing green power
makes a very real impact in
an area that is important to
our customers and to our
team members."
— Gary Kusin
President and Chief Executive Officer
CLEAN ENERGY PROGRAMS
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.
CHP
Combined Heat and Power
Partnership
&EPA COMBINED HEAT AND
POWER PARTNERSHIP
Through its Combined Heat and Power Partnership,
EPA works with industry, states and local governments,
universities, and other institutional users to facilitate the development of
efficient CHP projects. EPA is focusing the bulk of its efforts on small and
medium-sized CHP applications by identifying candidate industrial and
commercial hosts in select state markets. Partners benefit from technical
assistance, networking, peer exchange, and public recognition of their
contribution to the environmental benefits
of CHP.
2001 ENERGY STAR CHP Award Winner
Cinergy Solutions
Cincinnati, Ohio
CINERGY
SOLUTIONS
In 2001, Cinergy Solutions purchased existing separate heat and power equipment from
BP-Texas City and completed a significant overhaul of the equipment. This upgrade allowed
Cinergy Solutions to switch the gas turbine and boiler from independent operation to run as a
combined heat and power unit. The 13-MW gas turbine CHP unit uses 17 percent less fuel than
onsite thermal generation and purchased electricity. Using this comparison, this project annually reduces carbon dioxide
emissions by 78,000 tons, saves the energy equivalent of 160,000 barrels of oil, reduces nitrogen oxide emissions by
40 tons, and saves the economy $2.5 million in fuel costs.
26
-------
CLEAN ENERGY PROGRAMS
In 2001, the CHP Partnership:
• Launched its program in October with 18 founding partners representing a
variety of industrial sectors.
• Assisted in regulatory streamlining via the issuance of draft guidance for
source definition under EPA's New Source Review Program.
• Published a catalog of technologies to provide information to air regulators,
end users, and others about the emission profiles, operating characteristics,
and efficiencies of a variety of onsite generation technologies.
In 2002, EPA will:
• Launch the CHP Partnership's Web site (www.epa.gov/chp) as a one-stop
shop for information about CHP project development.
• Work with DOE and the U.S. Combined Heat and Power Association to
sponsor a series of national meetings to address key issues related to CHP
project development.
• Enlist up to 40 new partners.
• Assist in finalizing the draft guidance for source definition under EPA's New
Source Review Program.
• Co-sponsor state-specific CHP workshops that bring together energy and
environmental regulators, industry, and interested CHP developers in
Illinois and New York.
• Provide direct project
assistance to as many
as 10 new CHP projects
across the country.
MIT Cogen Facility
"TTje MIT 'Cogen' project
provided a special opportunity
for MIT's environmental and
energy research to be applied
full scale at home. It provides
benefits of electrical reliability,
fuel cost stability, and greatly
reduced environmental
impact. We appreciate EPA's
CHP ENERGY STAR award for
the positive reinforcement it
provides in support of
MIT's goal to be a model
environmental citizen."
— Peter L. Cooper
Director of Utilities, Department of Facilities
Massachusetts Institute of Technology
2001 ENERGY STAR CHP Award Winner
Massachusetts Institute of Technology
Cambridge, Massachusetts
II Jl IT In 1995, the Massachusetts Institute of Technology (MIT) completed installation of a 21-MW gas turbine with a
"* heat recovery steam generator. The turbine incorporates a dry, low NOX combustor technology, which was
developed at MIT, to lower nitrogen oxide emissions while avoiding the expense, power losses, and ammonia emissions
from typical end of pipe controls. MIT's central CHP facility provides power, process steam, heating, and cooling to the
campus and uses 28 percent less fuel than onsite thermal generation and purchased electricity. Using this comparison, this
project annually reduces carbon dioxide emissions by 72,000 tons, saves the energy equivalent of 120,000 barrels of oil,
reduces nitrogen oxide emissions by 240 tons, and saves the economy $1.7 million in fuel costs.
27
-------
CLIMATE PROTECTION PARTNERSHIPS DIVISION 2001 ANNUAL REPORT
"The key reason we joined the
Green Power Partnership is
that by buying renewable
energy we can help reduce
our dependence on fossil
fuels. Buying green power is
another way to demonstrate
that what's good for people
and the environment is good
business."
— FredKelle
Chairman and CEO
Cascade Engineering
Green Power Partnership
&EPA
GREEN
POWER
PARTNERSHIP
The Green Power Partnership, a new voluntary
program developed to take advantage of the
pollution prevention opportunity created by the
increasing availability of green power, is
working to standardize green power
procurement as part of best practice environmental management. Partners sign
a one-page Letter of Intent making a commitment to switch a specific
percentage of their electricity to renewable sources within one year. In return,
EPA provides technical assistance and recognition.
In 2001, the Green Power Partnership:
• Launched in July with 20 companies, government agencies, and other
organizations making a commitment to green power.
• Provided national recognition to leading green power purchasers through
the Green Power Leadership Awards.
• Developed a Web site (www.epa.gov/greenpower) to provide technical,
market, and public recognition information related to green power.
• Published E-GRID 2000, updating the existing comprehensive E-GRID
database of air emissions for the U.S. electric generation industry.
28
-------
CLEAN ENERGY PROGRAMS
In 2002, EPA will:
• Recruit at least 40 additional
partners willing to make a
green power purchase
commitment.
• Launch a Provider Partners
program to integrate green
power marketers, utility
green pricing programs, and
tradable renewable certificate
vendors into the partnership.
• Publish a green power
procurement guide, case
studies, and other materials
that help organizations
understand the benefits and
costs of green power options.
• Publish a Web-based tool
that allows electricity users to
understand the emission
impacts associated with the
electricity they consume.
Wind Farm Under Construction
"EPA's Green Power
Partnership bridged the
gap between supplier and
customer, enabling Bay
Windpower to build
Michigan's largest wind
farm. Bay Windpower I,
our Mackinaw City Project,
is up, on line, below budget,
and 'sold out.' We are
currently developing more
than 100 MW of new projects
to protect our Great Lakes for
future generations."
— Rich Vander Veen, President
Bay Windpower, L.L.C.
Partnership Commitments Spur Construction of New Wind Turbines
The Green Power Partnership builds demand for green power among consumers of electricity, ultimately leading to the
development of new renewable capacity. Founding partners, Cascade Engineering and Steelcase, Inc., will rely on the
electricity produced by a new wind farm in Mackinaw, Michigan, developed by Bay Windpower. Their commitment to
purchasing green power was a significant economic factor enabling the creation of the wind farm project. Such
commitments are an essential ingredient to developing additional clean energy resources.
2001 Green Power Leadership Awards
In July 2001, the Green Power Partnership, in collaboration with DOE and the Center for Resource Solutions, presented the
First Annual Green Power Leadership Awards.
Green power purchaser awards were given to:
Kinko's
Ventura, California
New Belgium Brewing Company
Santa Monica, California
University of Colorado
Boulder, Colorado
Toyota Motor Sales, USA
Torrance, California
Carnegie Mellon University
Pittsburgh, Pennsylvania
Fetzer Vineyards
Hopland, California
29
-------
CLIMATE PROTECTION PARTNERSHIPS DIVISION 2001 ANNUAL REPORT
METHANE PROGRAMS
FIGURE 7.
Partner actions are projected to maintain methane
emissions below 199O levels through 2O1O
'90 '95
YEARS 1990-2010
Source: EPA Climate Protection Partnerships Df
Methane's contribution to total U.S. greenhouse gas emissions is second only to that of
carbon dioxide. Each ton of methane emitted is, however, 21 times more effective at
trapping heat in the atmosphere than one ton
of CO2. At the same time, methane is also a
valuable source of energy, being the major
component of natural gas.
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 the Landfill Methane Outreach
Program, Natural Gas STAR Program, and
Coalbed Methane Outreach Program. 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 nation's largest landfills, reduced national methane emissions to well
below 1990 levels in 2001, and they are projected to maintain emissions below 1990
levels through 2010.
Landfill Methane Outreach Program
Landfills are the largest source of U.S. human-related (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 nation to capture and use their
landfill gas emissions as an energy source. Working with landfill owners,
state energy and environmental agencies, energy suppliers, industry,
communities, and other stakeholders, LMOP lowers the barriers to landfill gas-to-energy
project development.
Launched in December 1994, LMOP achieved significant reductions through 2001,
reducing methane emissions from landfills by 3.7 MMTCE in 2001 alone. The number
of landfill gas-to-energy projects grew to almost 325 by the end of 2001.
LANDFILL METHANE
OUTREACH PROGRAM
30
-------
METHANE PROGRAMS
LMOP focuses its outreach efforts on smaller landfills not regulated by EPA's
New Source Performance Standards and Emission Guidelines. The program's
varied tools help landfill owners and operators overcome barriers to project
development. Such tools include 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 2001, LMOP:
• Assisted in the development of 23 new landfill gas-to-energy projects, with
more than 40 additional projects under construction and expected to be
online soon.
• Signed on 39 new partners, bringing the total number of LMOP
partners to 285.
• Awarded two competitive grants designed to spur innovative project
development at smaller landfills to the County of Chesterfield, Virginia, and
the Blue Ridge Resource Conservation and Development Council of
Sugar Grove, North Carolina.
In 2002, EPA will:
• Host seven state-specific workshops to present the benefits of landfill gas
energy recovery, discuss project development activity and opportunities, and
address state-specific issues affecting landfill gas projects.
• Establish a Green Power Strategy to identify new project development
opportunities presented by the growing market for green power.
"The project demonstrates a
successful public-private
sector partnership, and
the value of a single
company's commitment
to environmental protection."
— Tom Jennings
Manager of Power dr Utilities
Rolls-Royce
31
-------
CLIMATE PROTECTION PARTNERSHIPS DIVISION 2001 ANNUAL REPORT
LMOP 2001 Award Winners
Project of the Year: Middlesex County Utility Authority
Landfill Gas-to-Energy Project
Middlesex, New Jersey
This project stemmed from a successful partnership between the National Energy Resource
Corporation (NERC) and the Middlesex Generating Company, LLC. NERC targeted
three large landfills to supply landfill gas to fuel the County's wastewater treatment operations
and provide power to the grid. National Energy Resource Corporation applied path-breaking
finance and development strategies over 5 years to overcome numerous implementation
barriers. NERC's successful approaches included innovative permitting, regulatory, and sales
agreement strategies. Today the landfill gas production facilities at the Middlesex, Edison, and
Industrial Land Reclaiming landfills are connected by an 8-mile underground pipeline
running beneath the Raritan River to the largest landfill gas-fueled advance-stage energy
center east of the Mississippi. The environmental benefits of the project's energy production
include displacing 18 MW of fossil-fueled power and reducing greenhouse gas emissions by
more than 1.6 million tons of carbon dioxide equivalent through the year 2000.
Project of the Year: Lopez Canyon Landfill Project
City of Los Angeles, Bureau of Sanitation
Los Angeles, California
Initiated by the City of Los Angeles, Bureau of Sanitation, this project involves the collection
and use of landfill gas for energy at three landfill sites in southern California, and financing
an Environmental Awareness Center for the city. The Bureau persevered for 13 years to
overcome a number of barriers to the project's development, including an unfavorable electric
power market, geological site conditions (seismic faults), and numerous regulatory and
financial hurdles. In 1998, the first energy production facility at Lopez Canyon was brought
online and is now generating 6 MW of power. The City of Los Angeles manages the site's
operation and maintenance, as well as a new Environmental Awareness Center that educates
students and local residents about environmental conservation. In early 2001, the City
constructed a 1.5-MW microturbine energy facility consisting of 50, 30-kilowatt
microturbines. Scheduled to begin operating in the latter part of 2002, Lopez Canyon
Microturbine energy facility is the largest of its kind in the world.
Partner of the Year: Horry County Solid Waste Authority, Inc.
Conway, South Carolina
Horry County successfully opened the state's first landfill gas-to-energy project on
September 4, 2001, at its landfill in Conway, South Carolina. State-owned utility Santee
Cooper partnered with the Horry County Solid Waste Authority, Horry Electric Cooperative,
and Central Electric Power Cooperative to develop this innovative and environmentally
beneficial energy project. It currently hosts two generators, with the possibility of adding two
more. At full capacity, the 2.2-MWplant will reduce emissions of methane equivalent to
planting over 80 million pine trees in a reforestation project. This provides the state with its
first landfill gas project and its first green power generating station and green pricing program.
Residential customers may purchase the landfill gas in blocks of 100 kWh, and commercial
customers in blocks of 200 kWh. The gas is offered at a premium of 3 cents per kWh.
One hundred percent of the revenue will be applied to future green power projects, providing
customers an opportunity to support the development of renewable energy resources.
32
-------
METHANE PROGRAMS
Industry Ally of the Year: Granger Energy-South Side Landfill
Gas-to-Energy Project with Rolls Royce
Indianapolis, Indiana
At the South Side Landfill in Indianapolis—the first landfill in Indiana to establish a gas
project—Granger Energy worked with Rolls-Royce to supply landfill gas for the
manufacturer's Indianapolis operational facilities. As part of the project, Rolls-Royce
converted three of its large industrial steam producing boilers to accommodate the use of
landfill methane in aircraft engine manufacturing operations. In 2001, Rolls-Royce also
modified a 5-MW turbine that generates electricity for onsite use to run on landfill gas. Since
the project was developed, Rolls-Royce has saved nearly $2 million in fuel costs, and in the
year 2000 reduced emissions of greenhouse gases by over 240,000 tons of carbon dioxide
equivalent, compared with their former natural gas use. Supported by the City of
Indianapolis, the Mayor's office, and the Indiana Department of Environmental Management,
this project received a Governor's Award in 2000 for Excellence in Pollution Prevention, as
well as recognition from the Department of Energy for reduction in greenhouse gas emissions.
Energy Ally of the Year: International Truck and Engine Corporation,
Springfield Assembly Plant
Springfield, Ohio
Springfield Gas Company, Inc., an independently owned company specializing in landfill gas
extraction, partnered with International Truck and Engine Corporation's Springfield Assembly
Plant to use landfill methane from the Tremont City sanitary landfill to fuel operations at the
plant. Both partners adopted a proactive community outreach strategy to overcome the
barriers to project development. International is now using the landfill gas in process paint
ovens, hot water boilers, and other units. The use of landfill gas in radiant heat surface
coating ovens is believed to be the first of its kind in an industrial application. The project
allows the plant to replace purchased natural gas with the landfill methane, saving an
estimated $100,000 annually and reducing greenhouse gas emissions from the landfill by the
equivalent of 150,000 tons per year of carbon dioxide.
" We value our partnership with LMOP—
they serve as a great resource for the
LFG industry."
—Joel Zylstm, President
Granger Energy Company
Granger Energy-South Side Landfill
33
-------
CLIMATE PROTECTION PARTNERSHIPS DIVISION 2001 ANNUAL REPORT
"Participation in Gas STAR
helps El Paso Energy achieve
our corporate goal of
combining outstanding
business performance with
outstanding environmental
performance. Participation
in Gas STAR makes
perfect environmental
and business sense."
— Greg Qdeeard
A o>
Vice President of Environmental
Health and Safety
El Paso Energy Corporation
Natural Gas STAR Program
NaturalGas
EPA POLLUTION PREVENTER
Natural Gas STAR is a voluntary partnership between
EPA and the U.S. natural gas industry designed
to overcome barriers to the 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 2001, reducing methane emissions from natural
gas systems by 4.6 MMTCE in 2001 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 positive feedback from partners, demonstrates the
effectiveness of these tools in promoting methane reduction activities.
In 2001, Natural Gas STAR:
• Represented 58 percent industry participation across all major sectors
(production, processing, transmission, and distribution).
• Partnered with 11 new companies, bringing the total number of
partners to 94.
• Successfully implemented a new online reporting system to enhance
program implementation.
• Completed an
evaluation of
gas recovery
opportunities from
gas processing plants
that identified
significant economic
potential for reducing
methane losses
through directed
inspection and
maintenance
programs.
In 2002, EPA will:
• Expand Natural Gas STAR in all sectors to represent 59 percent industry
participation.
• Launch a series of technology transfer workshops for the natural gas
processing sector.
• Initiate a 2-year study to identify additional cost-effective methane emission
reduction opportunities from the gas production and processing sectors.
34
-------
METHANE PROGRAMS
Natural Gas STAR 2001 Partners of the Year
BP
Houston, Texas
BP received the 2001 Natural Gas STAR Producer Partner of the Year award for
achieving cumulative program reductions of 3.3 billion cubic feet (Bcf) of methane Krj
emissions and for outstanding support of the goals of the Natural Gas STAR Program. ^fc^A-
In its 2000 Annual Report, BP reported 616 million cubic feet (Mmcf) of new Jjr 7f
emission reductions, bringing its annual emission reduction total to 1.7 Bcf. Since BP
joined Natural Gas STAR in 1998, the company has identified and implemented many
innovative emission reduction opportunities. In addition, BP was instrumental in
assisting the expansion of the program to the gas processing sector and participated in
an EPA-sponsored study of emission reduction opportunities from gas processing plants. BP
has supported the program's regional technology transfer workshops and has contributed to
the development of technical materials, including EPAs Lessons Learned studies and Partner
Reported Opportunity (PRO) Fact Sheets.
Columbia Gas Transmission and Columbia Gulf Transmission
Merrillville, Indiana
Columbia Gas Transmission Corp. and Columbia Gulf Transmission Co., subsidiaries of
NiSource, Inc., were named 2001 Transmission Partners of the Year. EPA _
honored the companies for excellent program implementation, outreach efforts, CjQllimblcl Cj3.S
and contributions in the area of technology transfer. In their 2000 Annual l-TcUlSITHSSlOn
Report, Columbia Gas Transmission and Columbia Gulf Transmission reported
annual emission reductions of 3.5 Bcf of methane. To date, the pipeline companies have
reported methane savings of more than 13.2 Bcf. Columbia Gas Transmission and Columbia
Gulf Transmission have also identified and implemented more than 10
innovative emission reduction technologies and practices. They have been C~f)llimnia. CrtllF
aggressive in communicating the benefits of the Natural Gas STAR Program to
other companies and have contributed to the development of PRO Fact Sheets
and case studies.
PECO Energy
Philadelphia, Pennsylvania
PECO Energy received the 2001 Natural Gas STAR Distribution Partner of the Year award.
Since joining the Natural Gas STAR Program in 1995, the company has reported cumulative
reductions of approximately 46 Mmcf of methane emissions. In its 2000 Annual
Report, PECO reported emission reductions of 9 Mmcf—the result of successfully
implementing many PROs such as testing gate station pressure relief valves with
nitrogen instead of methane, optimizing the operation of high-pressure distribution »JEa33ISfiE3rfBHIsj
systems, and implementing a random meter calibration program. PECO has been a
strong participant in Natural Gas STAR Program-sponsored activities and has contributed to
journal articles and development of the program's technical materials.
35
-------
CLIMATE PROTECTION PARTNERSHIPS DIVISION 2001 ANNUAL REPORT
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 (CMM) projects. Outreach efforts focus on providing high-quality, project-
specific information. CMOP has achieved significant results through 2001.
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 2001. 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.
Following the program's 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 Bcf of methane annually. CMOP is
collaborating 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 gassy U.S. underground coal mine to apply these tools and facilitate
projects which achieved a reduction of 2.3 MMTCE in 2001.
36
-------
METHANE PROGRAMS
In 2001, CMOP:
• Helped reduce methane emissions at 23 project sites by providing high-
quality, project-specific information to mine operators, project developers,
and other stakeholders.
• Supported the development of the largest CMM energy generation project
in the world, a CMM fueled 88-MW electricity generating station. The
project is a joint venture between CONSOL Energy Inc. and Allegheny
Energy Inc., in Buchanan County, Virginia.
• Successfully promoted a small-scale demonstration of ventilation air
oxidation technology in Australia.
In 2002, EPA will:
• Begin implementing the first commercial-scale demonstration of ventilation
air oxidation technology in the United States.
• Develop the first U.S. methane emission inventory for abandoned coal
mines and assess the cost-effective emission reduction opportunities.
• Evaluate the emerging market for ventilation air methane projects
domestically and abroad, including the identification of new technologies
and the assessment of project costs and benefits.
CONSOL
Energy-Coal
Mine Methane
Power Project
"This award demonstrates
that commercial success in
the energy business need
not come at the expense of
the environment. We are
honored to receive this
award, and pleased with the
Administrator's continued
support and encouragement
of our coalbed methane
commercialization efforts."
President and Chief Executive Officer
CONSOL Energy Inc.
CONSOL Energy Inc.
Pittsburgh, Pennsylvania
CONSOL Energy Inc. received EPA's Climate Protection Award for work in recovering and using coal mine methane.
CONSOL Energy is an international industry leader in producing pipeline quality coalbed methane for sale. The company
produces an average 123 Mcf of gas daily, from operations in southwestern Virginia, southwestern Pennsylvania, and
northern West Virginia. CONSOL Energy's coal mine methane-specific recovery operations accounted for two-thirds of the
U.S. coal industry's avoided emissions in 2000.
37
-------
CLIMATE PROTECTION PARTNERSHIPS DIVISION 2001 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 online reporting form,
and EPA works with partners to verify these data.
Landfill Methane Outreach
EPA works with all stakeholders to compile up-to-date annual 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 from degasification systems. 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. In the future, the program will also be reporting
emission reductions from ventilation air methane reduction projects.
TABLE 4.
Methane Programs: annual goals and achievements
2001 Goal
2001 Achievement
2002 Goal
LMOP
Number of Projects
Annual Methane Reductions (MMTCE)
Natural Gas STAR1
Industry Participation (% in program)
Annual Gas Savings (MMTCE)
225
3.7
4.4
214
3.7
58%
4.6
235
3.9
59%
4.6
CMOP^
Annual Methane Reductions (MMTCE)
2.0
2.3
2.1
1 A new metric for industry participation is being applied for 2001 that assesses industry-wide involvement in the program across all major sectors
(production, processing, transmission, and distribution).
Revisions to the methodology for determining program achievements and emission reduction goals are currently under consideration. EPA
anticipates applying these changes in 2002, which will facilitate a more accurate calculation of emissions and emission reductions.
38
-------
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 2001, EPA and USDA:
• Assisted swine and cattle producers in projects that produced about 14 million
kWh/year of renewable energy from farms capturing methane—energy then used by
the farm and local community.
• Increased recognition of anaerobic digestion viability at commercial swine and
dairy farms.
• Assisted states, including California and New York, in developing programs and policies
for the broader deployment of methane-capturing technologies.
In 2002, 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 the western, northeastern, southeastern and
mid-western regions to facilitate the development of anaerobic digesters as renewable
energy resources.
39
-------
CLIMATE PROTECTION PARTNERSHIPS DIVISION 2001 ANNUAL REPORT
FIGURE 8.
Partner actions can maintain voluntary
program sector emissions of high global
warming potential gases at or below 1990
levels through 2O1O
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 their industrial processes to reduce
emissions of perfluorocarbons (PFCs), hydrofluorocarbons
(HFCs), and sulfur hexafluoride (SF6)—all particularly
potent greenhouse gases. When compared ton-for-ton with
CO2, they trap much more heat in the atmosphere. PFCs
and SF6 also have very long atmospheric lifetimes. Despite
the potential for sizable growth in high GWP greenhouse
gas emissions, these partner industries are expected to
maintain emissions below 1990 levels through the year 2010.
EMISSIONS WITHOUT PARTNER ACTIONS
EMISSIONS WITH PARTNER ACTIONS
'90 '95
YEARS 1990-2010
Source: EPA Climate Protection Partnerships Df
The Voluntary Aluminum Industrial
Partnership (VAIP)
The primary aluminum producers are
collaborating with EPA to reduce
emissions of PFCs emitted as a
byproduct of the smelting process.
The goal is to reduce perfluoro-
methane (CF4) and perfluoroethane (C2F6) where
technically feasible and cost effective. Since the partnership began in 1996, participating
industries have had notable success in characterizing the emissions from their smelter
operations and reducing overall emissions.
INDUSTRIAL PARTNERSHIP
U.S. Voluntary Partnership Catalyzes Groundbreaking Global Industry Commitment to
Climate Protection
EPA launched the PFC Emission Reduction Partnership for the Semiconductor Industry in 1996. While the partnership's
initial focus was reducing PFC emissions from U.S. semiconductor fabrication plants, EPA and its industry partners quickly
recognized the advantage of addressing this global environmental challenge through international cooperation. The
partnership also sought to maintain a "level playing field" for the multinational partner companies and thus encouraged
other nations' governments to develop similar voluntary initiatives. Japan was the second country to establish a voluntary
partnership following a Pathfinder's Meeting organized by Japan's Ministry of International Trade and Industry and EPA in
1996. With the United States and Japan gaining momentum in coordinating PFC emission reduction activities, the remaining
major semiconductor producers including Europe, Korea, and Taiwan joined the effort soon thereafter.
Industry representatives from the United States and Japan communicated the importance of protecting the climate to the
World Semiconductor Council (WSC). The WSC, whose members include the national semiconductor industry associations
of Europe, Japan, Korea, Taiwan, and the United States, identified PFC emission reduction as its top environmental challenge.
In April 1999, WSC members proudly announced a technically challenging goal to reduce PFC emissions by at least
10 percent below the 1995 baseline level by year-end 2010. The WSC's goal represents the first greenhouse gas emission
reduction target for an entire global industry. This type of responsibly aggressive goal setting assures international
governments, industry suppliers, and the public of the industry's commitment to protect the climate.
40
-------
ENVIRONMENTAL STEWARDSHIP
The partnership achieved its initial goal to reduce emissions by 30 to 60 percent from
1990 levels by 2000 and has now extended work to 2005.
In 2001, the Voluntary Aluminum Industrial Partnership:
• Completed analysis and a spreadsheet tool on the "Cost of an Anode Effect." The work
helps producers analyze the financial benefits of avoiding anode effects based on
smelter-specific process data.
• Completed, in collaboration with the London-based International Aluminum Institute,
a standardized smelter-specific PFC measurement protocol to help improve the
consistency and comparability of global emissions data.
• Continued work with eight of the nine U.S. primary aluminum producers to better
understand the generation of PFCs in the smelting process and to quantify smelter-
specific emissions.
HFC-23 Emission Reduction Program
Industry is working with EPA to reduce emissions of the potent greenhouse gas, HFC-23,
which is generated as a byproduct in the manufacture of the refrigerant 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.
Partners have reduced emissions of HFC-23 through process optimization and thermal
destruction. Their efforts have helped reduce the intensity of HFC-23 emissions (the
amount of HFC-23 emitted per kilogram of HCFC-22 manufactured) significantly.
Despite a considerable increase in production since 1990, total emissions are below 1990
levels—a reduction of 5.1 MMTCE compared to business-as-usual.
In 2001, 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 of the hydrofluorocarbons.
41
-------
CLIMATE PROTECTION PARTNERSHIPS DIVISION 2001 ANNUAL REPORT
The PFC Emission Reduction Partnership for the
Semiconductor Industry
Since 1996, this partnership has served as a catalyst for semiconductor
companies in Europe, Japan, Korea, Taiwan, and the United States to
jointly set the first global target for reducing greenhouse gas emissions.
? Collaborating with EPA, these companies have identified and implemented
process changes and manufacturing tool improvements in the production
of integrated circuits to reduce emissions of PFCs.
In 2001, EPA worked closely with the partners to establish a data quality review process,
enhanced emissions projections by developing an emission vintaging model, and co-
authored with Japanese, European, and U.S. industry representatives a status report on
semiconductor PFC emission reduction efforts for the Third International Symposium
on Non-CO2 Greenhouse Gases in Maastricht, The Netherlands.
SF6 Emissions Reduction Partnership for Electric
Power Systems
Initiated in 1999, this partnership 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.
In 2001, EPA:
• Expanded this effort to reduce SF6 emissions to 63 partners, representing nearly
45 percent of net generating capacity. More than 80 percent of SF6 sales are to this
sector (utilities and electrical equipment manufacturers).
• Enhanced web site (www.epa.gov/highgwpl/sf6) resource offerings with SF6
handling guidelines.
42
-------
ENVIRONMENTAL STEWARDSHIP
SF6 Emission Reduction Partnership for the
Magnesium Industry
The U.S. magnesium industry is working with EPA to identify and
encourage the adoption of best management practices for reducing
emissions of sulfur hexafluoride (SF6), a potent heat trapping pollutant.
This partnership to reduce emissions from magnesium production and
casting operations already represents approximately 80 percent of U.S.
magnesium industry emissions.
In 2001, EPA:
• Expanded the magnesium industry partnership to reduce SF6 emissions to 16 partners,
representing 100 percent of primary magnesium production and 80 percent of
domestic casting capacity.
• Received the second annual emission reports from magnesium partners. Emission
estimates are reported using software designed by EPA with input from the partners.
EPA published the partnership's achievements and "Lessons Learned" in an annual report.
Mobile Air Conditioning Climate Protection Partnership
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 part of "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 four goals:
• To promote cost-effective designs and improved service procedures to minimize
emissions from HFC-134a systems.
• To cooperate on developing and testing the next-generation mobile air conditioning
systems that satisfy customer requirements and environmental, safety, cost, and
reliability concerns.
Bonneville Power Administration
Bonneville Power Administration (BPA), a power transmission system, provides service and power to Oregon, Washington,
Idaho, and portions of Wyoming, Nevada, Utah, California, and Montana. BPA owns and operates more than three-quarters
of the high-voltage transmission grid in the Pacific Northwest, which stretches across a service area of 300,000 square
miles. In 2001, SF6 loss from leaking equipment was reduced by 2,765 Ibs. This represented a 62-percent reduction
compared to BPA's previous emissions report and one of the largest percentage improvements by any partner in the
SF6 Emissions Reduction Partnership for Electric Power Systems. BPA has found that system reliability improves as SF6
equipment integrity improves, and that monitoring of SF6 equipment leads to the discovery of potential problems before
they become critical failures.
43
-------
CLIMATE PROTECTION PARTNERSHIPS DIVISION 2001 ANNUAL REPORT
• To communicate technical progress to policy makers and the public.
• To document the current and near-future opportunities to improve the environmental
performance of mobile air conditioning system design, operation, and maintenance.
In 2001, this partnership benchmarked HFC-134a systems for energy efficiency and is
using this information to compare the climate performance of CO2 systems. SAE draft
standards for new refrigerants are near completion and scheduled for global acceptance.
The partnership has held meetings in Europe and North America, and organized the
July 9-11, 2002 'Automotive Alternate Refrigerant Symposium." This symposium will
feature road tests of prototype motor vehicles using HC, HCFC-152a, and CO2
refrigerants, as well as dozens of technical papers.
TABLE 5.
Stewardship Programs: annual goals and achievements
2001 Goal
2001 Achievement
2002 Goal
Voluntary Aluminum Industrial Partnership
Industry Participation (% in program)
Reductions (MMTCE)
1.9
95%
1.9
95%
2
HCFC-22
Industry Participation (% in program)
Reductions (MMTCE)
Other Stewardship Programs***
Industry Participation (% in program)
Reductions (MMTCE)
4.6*
100%
5.1
100%
4.7*
0.4
50-100%*
0.4
60-100%
0.8
These goals have been adjusted downward to reflect lower than expected HCFC-22 production in 2001 and the closure of one of the four
U.S. HCFC-22 plants. The 2001 industry average HFC-23 emission factor actually declined more than expected.
Participation varies from 50% of net generating capacity for electric power systems to 100% for primary magnesium producers.
* Lower than expected production or actual production declines in the aluminum, magnesium, and semiconductor industries have decreased the
actual and expected achievements of these sectors.
In 2002, the High GWP Environmental Stewardship Programs will:
• Negotiate a new agreement with the aluminum industry 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.
• Expand the SF6 Emissions Reduction Partnership for Electric Power Systems (utilities)
to 80, representing 60 percent of the industry's net generating capacity, and develop
relationships with electrical equipment manufacturers to further reduce SF6 emissions.
• Announce an emission reduction goal for the SF6 Emission Reduction Partnership for
the Magnesium Industry at EPAs second conference on SF6 and the Environment in
November. Continue to 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 of HFC-23.
• Expand the stewardship programs to reduce high GWP emissions from other key
sources, such as the ozone-depleting substance replacement industries.
• Continue to explore and document the performance of new vehicle air conditioning designs.
44
-------
PARTNERSHIPS CHANGING THE WORLD
International Climate Protection Award Winners
Since 1998, 68 individuals, companies, and organizations from 12 countries have earned EPA's
Climate Protection Award honoring outstanding accomplishments in protecting the Earth's
climate. The 20 award recipients have demonstrated their commitment to the environment
through innovation in engineering, policy, and marketing. Their leadership will reduce greenhouse
gas emissions and inspire others to do their part. This year's winners are from Canada, Chile, Italy,
Japan, and the United States.
Corporate and Governmental
Awards
Air Products and Chemicals, Inc.
Allentown, Pennsylvania
City of Portland, Oregon
Portland, Oregon
C2D, US Army CECOM RD&E Center
Belvoir, Virginia
CONSOL Energy Inc.
Pittsburgh, Pennsylvania
DuPont
Wilmington, Delaware
Hitachi, Ltd. and Hitachi America, Ltd.
Dallas, Texas
NJDEP/DSRT Office of Innovative Technology
Trenton, New Jersey
Ontario Power Generation's Energy Efficiency
Program
Ontario, Canada
Shaklee Corporation
Pleasanton, California
Verizon Communications Inc.
Newark, New Jersey
Association, Partnership, and
Team Awards
CO2 Hot Water Supply Unit Design Team
Kariya-shi, Japan
International SEMATECH's PFC Emission
Reduction Working Group
Austin, Texas
Land and Water Fund of the Rockies
Boulder, Colorado
Voluntary Aluminum Industrial Partnership for
PFC Reductions
Washington, DC
Individual Awards
Dr. Fabio R. Borri, STMicroelectronics
Brianza, Italy
Dr. Luis Abdon Cifuentes, Pontifica
Universidad Catolica de Chile
Santiago, Chile
Yoshinobu Hayakawa, NEC Corporation
Kawasaki, Japan
Rev. Richard L. Killmer, National Council of
the Churches of Christ
New York, New York
Robert L. Markle, U.S. Coast Guard
Washington, DC
Robert T. Wickham, Delegate, UN
International Maritime Organization
Stratham, New Hampshire
"The Aluminum Association and its
members are proud of our voluntary
partnership with EPA. It was the right
thing to do, and it has resulted in a
more than 40 percent PFC emission
reduction over the past decade. We
are committed to further reductions
because we and our 145,000
employees want to leave the earth a
better place for our children."
— Brian W. Sturgell
Executive Vice President, Alcan Inc.
45
-------
CLIMATE PROTECTION PARTNERSHIPS DIVISION 2001 ANNUAL REPORT
FIGURE 9.
Annual reductions in greenhouse gas emissions can be more
than doubled by 2O1O
'95 '96 '97 '98
YEARS 1995-2010
EXPECTATIONS FOR 2002 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 partnerships to benefit our planet and its people by continuing to
reduce local and global air pollution.
EPA plans to:
• Encourage more businesses to become Climate Leaders by creating corporate-wide
inventories and setting aggressive greenhouse gas emissions reduction goals.
• Add products and services to the
ENERGY STAR family, as well as
review and update performance
specifications for product areas
already labeled.
• 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 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 hotels,
warehouses, convenience stores,
and industrial facilities.
• Establish additional partnerships with more businesses and organizations, focusing
particularly on state and local governments, and school districts.
• 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 maintain emissions below 1990 levels.
All of EPAs Climate Protection Programs are designed to achieve long-term greenhouse
gas emission reduction goals, which were set through an interagency process in 2001 and
communicated to the Secretariat of the Framework Convention on Climate Change in
the U.S. Climate Action Report 2002. In 2010, the programs represented in this report are
expected to reduce greenhouse gas emissions by more than 100 MMTCE compared to
business-as-usual (see Figure 9).5
EPA estimates the reduction in greenhouse gas emissions across the entire set of climate programs to be about
180 MMTCE in 2010.
Source: EPA Climate Protection Partnerships Di.
46
-------
PARTNERSHIPS CHANGING THE WORLD
References
Climate Protection Partnerships Division, U.S. Environmental Protection Agency. Partner and emissions data for 2001 provided by
individual programs and partnerships in the Division.
Dutrow, Elizabeth. 2002. 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. 2001. Annual Energy Outlook 2002 with Projections to 2020. Office of Integrated Analysis and Forecasting. December.
(DOE/EIA-0383(2002)).
Goldman, C., J. Eto, and G. Barbose. 2002. "California Customers Load Reductions during the Electricity Crisis:
Did They Help Keep the Lights On?" Lawrence Berkeley National Laboratory. LBNL-49733. Journal of Industry, Trade, and Competition
(pending publication).
Horowitz, M.J. 2001. "Economic Indicators of Market Transformation: Energy Efficient Lighting and EPAs Green Lights." The Energy
Journal 2(4):95-\22.
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, B.A. 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. October. (LBNL-27286). Available online at http://enduse.lbl.gov/Info/Pubs.html.
National Research Council. 2001. Climate Change Science: An Analysis of Some Key Questions. National Academy Press. Washington, D.C.
U.S. Department of State. 2002. U.S. Climate Action Report 2002. Washington, D.C. May. Available online at
www.epa.gov/globalwarming/publications/car/index.html.
U.S. Environmental Protection Agency. 2002. Inventory of Greenhouse Gas Emissions and Sinks: 1990-2000. Office of Atmospheric
Programs. April. (EPA 430-R-02-003). Available online at www.epa.gov/globalwarming/publications/emissions/us2002/index.htm.
Webber, C. A., R. E. Brown, and J. G. Koomey. 2002. 2002 Status Report: Savings Estimates for the ENERGY STAR® Voluntary Labeling
Program (DRAFT). Lawrence Berkeley National Laboratory. (LBNL-51319). Available online at http://enduse.lbl.gov/Info/Pubs.html.
Figures and Tables
Figure 1. U.S. greenhouse gas emissions by gas 2
Figure 2. U.S. greenhouse gas emissions by sector 2
Figure 3. Global atmospheric concentrations of three well-mixed greenhouse gases 4
Figure 4. CPPD carbon reductions compared to program goals 5
Figure 5. Annual savings in energy use as a result of CPPD s partnership programs 6
Figure 6. More than 50% of projected energy use 10 years from now will come from equipment
purchased between now and then 10
Figure 7. Partner actions are projected to maintain methane emissions below 1990 levels through 2010 30
Figure 8. Partner actions can maintain voluntary program sector emissions of high global warming
potential gases at or below 1990 levels through 2010 40
Figure 9. Annual reductions in greenhouse gas emissions can be more than doubled by 2010 46
Table 1. Global warming potentials (GWPs) and atmospheric lifetimes of greenhouse gases 3
Table 2. Summary of the cumulative benefits through 2012 from the actions taken by partners through 2001 7
Table 3. ENERGY STAR Program: annual goals and achievements 12
Table 4. Methane Programs: annual goals and achievements 38
Table 5. Stewardship Programs: annual goals and achievements 44
47
-------
CLIMATE PROTECTION PARTNERSHIPS DIVISION 2001 ANNUAL REPORT
Endnotes for Table 2
NPV of Bill Savings. Each total represents the net present value (NPV) of the total savings in energy
bills, in 2001 dollars, realized by partners or purchasers of ENERGY STAR labeled products through 2012.
Many of these investments, such as the building improvements associated with ENERGY STAR, have
lifetimes as long as 15 years. A cut-off of 2012 was chosen as a reasonable end-point to assess benefits,
even though the benefits of the Division's programs and partners' investments will often continue to be
realized after that year.
NPV Of Technology Expenditures. Each total represents the NPV of costs to partners, in 2001
dollars, of their investments in energy efficiency, including the cost of financing the investment over its
life at a 4.0-percent real rate of interest. These expenditures include any price premium, and the cost of
financing that premium, for the purchase of ENERGY STAR labeled products. The benefits of these capital
expenditures or 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
2002 and 2012. Four 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 Ease-Case Analysis.
NPV of Net Savings. Net Savings is the difference between Bill Savings and Technology Expenditures.
For ENERGY STAR partners and consumers, each total represents the NPV of using ENERGY STAR
products. For methane partners it represents the NPV of the income stream generated by their projects.
MMTCE. Each total under Million Metric Tons of Carbon Equivalent represents the amount of carbon
emission equivalents avoided by the investment and use of energy-efficient products through 2012 plus
the emissions avoided by the methane programs and by the programs that reduce 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.
48
-------
United States
Environmental Protection Agency
Air and Radiation 6202J
EPA 430-R-02-OW
August 2002
-------
&EPA
United States
Environmental Protection Agency
Air and Radiation (6202J)
Washington, DC 20460-0001
First Class Mail
Postage and Fees Paid
EPA
G-35
Official Business
Penalty for Private Use
$300
Recycled/Recyclable Printed on paper containing 30% post consumer waste.
------- |