ENERGY STAR
INVESTING IN OUR FUTURE

ENERGY STAR® and Other Voluntary Programs
2004 Annual Report

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INVESTING  IN OUR FUTURE
ENERGY STAR® AND OTHER VOLUNTARY PROGRAMS
2004 ANNUAL REPORT
                   CONTENTS
                   Letter from the Administrator	   1
                   Executive Summary  	   2

                   Introduction  	   7
                   ENERGY STAR Program	  10
                   Climate Leaders Program	  27
                   Clean Energy Programs 	  28
                       Combined Heat and Power Partnership  	  28
                       Green Power Partnership  	  29
                   State and Local Partnership Programs	  31
                   Methane Programs  	  33
                       Landfill Methane Outreach  	  34
                       Natural Gas STAR	  37
                       Coalbed Methane Outreach  	  40
                       Agriculture-Based Programs	  42
                   High Global Warming Potential  Gas Programs	  43
                   International Climate Protection Award Winners  	  48
                   Benefits of Voluntary Programs	  49

                   Companies and Organizations Mentioned in This Report  ...  50
                   References  	  53
                   List of Figures and Tables	  54
                   For additional information, please visit our Web sites at www.epa.gov/cppd
                   and www.energystar.gov or call the toll-free ENERGY STAR Hotline at
                   1-888-STAR-YES (1-888-782-7937).

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LETTER FROM THE ADMINISTRATOR
                                                                                              September 2005
                       I am pleased to present this report on the accomplishments of ENERGY STAR and other
                       voluntary programs at EPA. These exemplary results would not be possible without the
                       commitment that our partners, many of whom are highlighted in this report, have toward
                       protecting the climate and ensuring a cleaner, healthier environment for all Americans.
                       The programs described in this report help Americans use energy more efficiently and save
                       money on their energy bills. At a time when energy costs are at an all time high, these
                       programs offer real solutions to people worried about heating and cooling their homes
                       or running their businesses.

                       These partnership efforts are helping the United States to meet the President's goal of an
                       18 percent reduction in greenhouse gas intensity by 2012 through a broad set of strategies.
                       Our partners are demonstrating that Americans will invest in energy efficiency when they
                       have the right information on cost-effective choices for their homes  and businesses. With our
                       partners' help, ENERGY STAR continues to grow and encourage greater investment in energy
                       efficiency. In 2004, Americans saved around $10 billion on their energy bills while preventing
                       greenhouse gas emissions equivalent to those from 20 million vehicles.

                       Our ENERGY STAR and other voluntary program partners are increasing their investment
                       in clean energy supply such as renewable energy and combined heat and power. EPA's Green
                       Power Partnership now has 550  partners committed to purchasing more than 2 million
                       megawatt hours of green power. In 2004 alone, over 300 new organizations joined the
                       partnership, more than doubling the total number of Green Power partners.

                       The Climate Leaders program has welcomed a total of more than 60 leading companies of
                       which more than 25 have publicly announced goals for aggressively reducing their greenhouse
                       gas emissions.

                       EPA's partners have already significantly reduced emissions of methane and other powerful
                       greenhouse gases. Methane emissions, in particular, are now 5 percent below 1990 levels and
                       expected to remain below 1990 levels through 2020.

                       Year after year, these partners build on their environmental commitments. The past year was
                       truly inspiring, and we commend our partners for volunteering to lead, innovate, and protect
                       the environment for this and future generations.

                       I know from personal experience how easy it is to  make ENERGY STAR part of your life at
                       home. Each of us can make a difference in protecting our environment; when we all work
                       together we can truly change the world.

                                                            Sincerely,
                                                            Stephen L. Johnson
                                                            Administrator
                                                            U.S. Environmental Protection Agency
INVESTING  IN  OUR  FUTURE

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EXECUTIVE SUMMARY
                             EXECUTIVE SUMMARY
                             For more than a decade, the United States has made significant progress in reducing greenhouse
                             gas emissions that contribute to global climate change. The comprehensive national climate
                             change strategy implemented under President Bush continues to make progress in both the near
                             and longer term by building on U.S. strengths in innovation and technology development. EPA's
                             voluntary partnership programs are key elements of the near-term strategy that address market
                             barriers, accelerate the adoption of proven technologies and practices, and deliver substantial
                             emissions reductions.

                             A large and diverse set of partner organizations continues to avoid emissions of greenhouse gases
                             and make significant progress toward meeting the Presidents goal for 2012. The year 2004 was
                             another remarkable one for these efforts as demonstrated by the environmental and economic
                             accomplishments presented in this annual report.
 Figure ES-1.
 Greenhouse gas emissions avoided
 compared to program goals
                                            57
                           I            I
       rlllllll
   '95 '96   '97   '98   '99   '00
   YEAR
 '01   '02   '03   '04
I TARGET • ACTUAL
 NOTE: Historical totals updated based on most recent data
 available.
 Source: EPA Climate Protection      -i Division
HIGHLIGHTS OF 2004
• Americans, with the help of ENERGY STAR, prevented the
  greenhouse gas emissions equivalent to those from 20 million
  vehicles and saved around $10 billion on their energy bills.

• Since 2000, utility bill and greenhouse gas savings have doubled with
  the help of ENERGY STAR. Annual emissions reductions are on
  track to more than double again in 10  years from 20 to 40 million
  vehicle equivalents.

• The domestic methane programs exceeded their emissions reduction
  goals in 2004 and kept national methane emissions to well
  below 1990 levels.

• Renewable energy purchases grew to more than 2 billion kilowatt hours
  (kWh) among major companies, universities, government agencies,
  and other organizations as a strategy for demonstrating environmental
  leadership.

• The Administrations corporate leadership program, Climate Leaders,
  grew to 66 companies from many different industries, and about one-
  third of the companies completed sufficient work to announce
  aggressive greenhouse gas reduction targets for the future.

• Energy savings were about 125 billion kWh, or about 4 percent of the
  total 2004 U.S. electricity demand.

Additional environmental and economic achievements of EPA's climate
partnerships as of 2004 are summarized on the next page.
                                These partnership efforts are helping the United States to meet the
                                President's goal of an 18 percent reduction in greenhouse gas
                                intensity by 2012 through a broad set of strategies. Our partners are
                                demonstrating that Americans will invest in energy efficiency when
                                they have the right information on cost-effective choices for their
                                homes and businesses."
                                                                              —Stephen L. Johnson, Administrator,
                                                                              U.S. Environmental Protection Agency
  CLIMATE  PROTECTION  PARTNERSHIPS  2004  ANNUAL  REPORT

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EXECUTIVE SUMMARY
ENVIRONMENTAL BENEFITS
• The partnerships prevented 57 million metric tons
  (in MMTCE ) of greenhouse gas emissions in 2004,
  equivalent to the annual emissions from 38 million vehicles
  (see Figure ES-1).

• 50 MMTCE per year will be avoided  during the next
  decade due to investments and actions already taken by
  partners in EPA's voluntary climate programs.

ECONOMIC BENEFITS
• Consumers and businesses have locked in investments in
  energy-efficient technologies exceeding $20 billion.

* Net of their investment in energy-efficient technologies,
  consumers and businesses are saving $ 115 billion
  cumulatively over the next 10 years; they saved about
  $10 billion in 2004 alone.
PROGRAM EFFECTIVENESS
Every federal dollar spent on these partnership programs
through 2004 means:

• Reductions in greenhouse gas emissions of 1.0 metric ton of
  carbon equivalent (3.7 tons of carbon dioxide (C02).

• 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 more than $60 into the economy.

The environmental and economic benefits for key EPA
partnership program areas—ENERGY STAR, Clean Energy
Programs, Methane Programs, and the High Global Warming
Potential (GWP) Gas Programs—are summarized in
Table ES-1.
Table ES-1.
Summary of the benefits for 2004 and cumulative benefits through 2014 from the actions taken by partners
through 2004 (in billions of 2004 dollars)

Program
ENERGY STAR
Qualified Products
Buildings
Industry
Clean Energy Programs
Methane Programs
High GWP Gas Programs
TOTAL
BENEFITS FOR 2004
Net
Savings
$5.1
$4.2


$0.3


$9.7
MMTCE
13.0
13.2
4.1
1.7
12.9
11.7
56.6
CUMULATIVE BENEFITS 1993-2014
NPV of
NPV of Technology NPV of Net
Bill Savings Expenditures Savings
$66.4 $4.6 $59.8
$63.5 $12.6 $50.9


$8.7 $4.5 $4.2


$136.7 $21.7 $115
MMTCE
161
170
69
19
191
181
791
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 qualified homes are included in the Qualified Products totals.
Totals may not equal sum of components due to independent rounding.
For details on cumulative benefits, see page 49.
	 : Not applicable
na: Not available
1 This report provides results for the climate protection partnership programs operated by the Office of Atmospheric Programs at EPA. It does not include
 emissions reductions attributable to WasteWise, transportation programs, the Significant New Alternatives Program, or the landfill rule, which are the
 remaining actions in EPA's comprehensive climate program. EPA estimates the reduction in greenhouse gas emissions across the entire set of climate
 programs to be more than 80 MMTCE in 2004.
- Reductions in annual greenhouse gas emissions for EPA's climate programs, including non-C02 gases, are based on "carbon equivalents," which are
 determined by weighting the reductions in emissions of a gas by its global warming potential for a WO-year time period.
INVESTING   IN  OUR  FUTURE

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EXECUTIVE SUMMARY
Figure ES-2.
Annual savings in

energy use as a
result of EPA's partnership programs

12
110


9


/
_ 62
o
i 4

o

i J
, I
1*111
•95 '96 '97 '98 '9
YEAR
i














a









5
























6









9 '00 '01 '02 '03 '04

NOTE: Historical totals updated based on most
recent data available.

;•:,-.
                                           KEY ACCOMPLISHMENTS FOR 2004

                                           ENERGY STAR
                                           • Americans, with the help of ENERGY STAR, saved a significant amount of
                                            energy in 2004—126 billion kWh and 25 gigawatts (GW) of peak power, the
                                            amount of peak energy required for about 25 million homes (see Figure ES-2).
                                            They also prevented the greenhouse gas emissions equivalent to those from
                                            20 million vehicles and saved around $10 billion on their energy bills
                                            (see Figure ES-3).

                                           • Since 2000, awareness of the government's ENERGY STAR label has
                                            grown from 40 percent to more than 60 percent nationwide. In addition,
                                            30 percent of U.S. households knowingly purchased an ENERGY STAR
                                            qualified product, and many say they would recommend ENERGY STAR
                                            to others.

                                           • The ENERGY STAR label can be found on more than 40 different types  of
                                            products. Participation has grown to over 1,400 manufacturers who use the
                                            ENERGY STAR across a total of 32,000 individual product models. In 2004,
                                            EPA introduced new specifications for air cleaners and vending machines and
                                            updated specifications for computer monitors.

                                           • In the residential sector, over 360,000 ENERGY STAR qualified homes have
                                            been constructed by more than 2,500 builders to date, locking in savings of
                                            $200 million annually for homeowners.

                                           • More than 11,000 homes have been improved through a new home retrofit
                                            program, Home Performance with ENERGY STAR. Home  Performance with
                                            ENERGY STAR is  growing as states and utilities look for additional
                                            opportunities to achieve energy savings and reduce  peak loads.

                                           • In the commercial sector, about 21,000 buildings representing more than
                                            3.5 billion square feet (or 12 percent of the total eligible market) have now
                                            been rated for energy performance, including 34%  of hospitals, 22% of office
                                            buildings, 21% of supermarkets, 13% of schools, and 9% of hotels.

                               • EPA also launched a new recognition effort—ENERGY STAR Leaders—to honor partners
                                 that achieve energy efficiency improvements of 10, 20, or 30  points across their building
                                 portfolio and recognized 18 organizations as ENERGY STAR Leaders in October 2004.

                               • In the industrial sector,  EPA continued to convene Industry Focuses to develop  key energy
                                 management tools and improve energy efficiency in the automobile, corn  refining, brewing,
                                 cement, pharmaceutical, and petroleum industries.

                               Clean Energy
                               • The Combined Heat and Power  (CHP) Partnership has grown to 145 partners since first
                                 introduced in 2001 and facilitated 32 new CHP projects, totaling 1,260 MWe3 of new
                                 CHP capacity.

                               • Since the program's launch in 2001, the number of Green Power partners  has increased to
                                 549 organizations, which have made a combined commitment to purchase more than
                                 2 million megawatt hours (MWh) of green power annually, including 1.6  million MWh from
                                 new renewable energy resources.
3 Measured at the generator terminals.
   CLIMATE  PROTECTION  PARTNERSHIPS  2004   ANNUAL  REPORT

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EXECUTIVE SUMMARY
State and Local Government Programs
• EPA developed the Clean Energy-Environmental State
  Partnership Program, a new voluntary initiative which
  encourages state officials to develop and implement
  comprehensive clean energy strategies that will lead to
  public health and economic benefits.

• EPA worked with states and communities to estimate the air
  quality benefits of energy efficiency and renewable energy
  measures and incorporate the measures into their State
  Implementation Plans (SIPs).

• EPA provided states with analytic support to help estimate
  the macroeconomic impact of energy efficiency and
  renewable energy policies. The states discovered that they
  could achieve significant reductions in fossil fuel energy use
  and emissions while promoting clean energy, creating jobs,
  and saving money.

Methane and High Global Warming Potential
(GWP) Gas  Programs
• The reduction of non-carbon dioxide gases—methane, PFCs,
  HFCs, and SF6—totaled more than 24 MMTCE in 2004
  as a result of EPAs partnership programs. These voluntary
  partnerships,  in conjunction with a regulatory program to
  limit air emissions from the nation's largest landfills, kept
  national methane emissions to well below 1990 levels, and
  they are projected to remain below 1990 levels through 2012.

• Public-private industry partnerships are substantially
  reducing U.S. emissions of the high GWP gases released as
  byproducts of industrial operations and are expected to
  maintain high GWP gas emissions substantially below 1990
  levels through 2012.
  Figure ES-3.
  Since 2000, ENERGY STAR savings have nearly doubled
                                                      EXPECTATIONS FOR 2005 AND BEYOND
                                                      The efforts of EPA and its partners are expected to deliver a
                                                      significant portion of the emissions reductions required to
                                                      meet the nation's greenhouse gas intensity reduction goal for
                                                      2012. In the coming years, expanding programs and
                                                      partnerships with strong foundations will continue to offer
                                                      increasing benefits to businesses, organizations, and consumers
                                                      while promoting environmental stewardship (see Figure ES-4).

                                                      For 2005 and beyond, EPA plans to:

                                                      ENERGY STAR
                                                      • Add new products to the ENERGY STAR family where
                                                       significant energy savings are possible, including external
                                                       power supplies (cordless phone or cell phone chargers, for
                                                       example) and battery chargers; and update energy efficiency
                                                       specifications for more products, including televisions,
                                                       dehumidifiers, telephony, air conditioners, heat pumps, and
                                                       light fixtures.

                                                      • Continue to build consumer awareness of ENERGY STAR.
                                                       The goal is to raise awareness of the ENERGY STAR label
                                                       as a credible symbol for energy efficiency and environmental
                                                       protection to more than 70 percent over the next several years.

                                                      • Work with the U.S. Department of Energy (DOE),
                                                       manufacturers, retailers, home builders and raters, utilities,
                                                       and states in broad consumer promotions of ENERGY STAR
                                                       qualified products and new homes. In 2005,  EPA expects
                                                       175 million ENERGY STAR qualified products to be sold
                                                       and 170,000 new ENERGY STAR homes to be constructed.

                                                      • Increase the stringency of the specification for ENERGY
                                                       STAR qualified new homes to be fully implemented by the
                                                       end of 2006. For the first time,  EPAs new home specification
                                                       includes ENERGY STAR qualified products.

                                                      • Pilot an  Indoor Air Quality (IAQ) specification paired with
                                                       the ENERGY STAR specification for new homes. The IAQ
                                                                  specification will address moisture control,
                                                                  radon, pest control, HVAC, combustion safety,
                                                                  building materials, and commissioning.
                      9    Sfe                        18
        iili     ill
  2000   2001    2002   2003   2004      2000    2001    2002  2003  2004
„
  UTILITY BILL SAVINGS
  (In billions)
                                 EMISSIONS SAVED IN
                                 VEHICLE EQUIVALENTS (in millions)
  Source: EPA Climate Protection Partnerships Division
INVESTING  IN  OUR  FUTURE

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EXECUTIVE SUMMARY
  Figure ES-4.
  Annual greenhouse gas emissions avoided can
  be more than doubled by 2012
       '96
     YEARS 1995- 2014

 NOTE: Historical totals updated based on most recent data available.
 Source: EPA Clin               > Division
Continue to expand Home Performance with ENERGY STAR
nationally by assisting the contractor accreditation and technician
certification program of the Building Performance Institute. EPA
expects that more than 21,000 whole house retrofits will be
completed by the end of 2005.

Launch a new ENERGY STAR Challenge-Suiting a Better World
10% at a Time to spur commercial building improvements. In
coordination with key associations and states,  the Challenge calls on
U.S. businesses and institutions to reduce energy use by 10 percent or
more; and EPA recognizes organizations that improve the energy
performance of their building portfolio by 10, 20, 30 points or more
as ENERGY STAR Leaders for demonstrating superior
energy management.

Update the energy performance rating system with the latest Energy
Information Administration and state survey data and expand it to
include more building types.
                                • Convene Industry Focuses and develop Energy Performance Indicator tools with the pharmaceutical,
                                 automobile manufacturing, brewing, cement, petroleum, and corn refining industries.

                                Climate Leaders
                                • Attract 20 additional business partners and add 20 companies to the list of Climate Leaders
                                 with publicly stated corporate greenhouse gas emissions reduction goals.

                                Clean Energy
                                • Assist partners in the Combined Heat and Power Partnership (CHP) with more than
                                 30 new CHP projects, facilitating the development of over 800 MWe of new CHP capacity.

                                • Engage more than 800 Green Power partners and increase green power purchasing
                                 commitments to a total of 2.5 million MWh annually.

                                State and Local Government Programs
                                • Launch the new Clean Energy-Environment State Partnership Program, designed to help states
                                 adopt clean energy policies and deploy programs  that will reduce greenhouse gas emissions, save
                                 energy, promote reliable and affordable electricity generation, and increase economic
                                 development in the states.

                                • Help up to 15 states develop Clean Energy-Environment Action Plans.

                                • Release the Clean Energy and Environment Guide to Action that will help states take advantage of
                                 the environmental and economic benefits that clean energy offers.

                                • Continue to provide state and local officials and their national associations with technical
                                 assistance, tools, and outreach to promote  the environmental, public health, energy, and
                                 economic benefits of reducing energy use.  Provide six or more states with hands-on assistance to
                                 facilitate the progress of clean energy policies and programs.

                                Methane and High Global Warming Potential  (GWP) Gas Programs
                                • Aggressively work with existing partner companies to expand the methane emissions reduction
                                 projects within their companies and maintain overall methane emissions below 1990 levels.

                                • Continue implementing agreements to reduce greenhouse gas intensity for the aluminum,
                                 magnesium, and semiconductor sectors as  part of the Climate VISION initiative.

                                * Continue to support the Improved Mobile Air Conditioning (I-MAC) 30/50 project to reduce air
                                 conditioning fuel consumption by at least 30 percent and cut refrigerant emissions by 50 percent.
  CLIMATE   PROTECTION  PARTNERSHIPS   2004  ANNUAL  REPORT

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INTRODUCTION
INTRODUCTION

For more than a decade, the United States has made
significant progress in reducing greenhouse gas emissions
that contribute to global climate change. President Bush
announced an aggressive strategy in 2002 to reduce the
nations greenhouse gas  intensity by 18 percent by 2012.
The Administration is strengthening and expanding EPA's
voluntary programs as a key strategy for achieving the
intensity reduction goal. EPA's voluntary partnership
programs address market barriers, accelerate the adoption
of proven technologies and practices, and deliver
substantial emissions reductions.

EPA's voluntary efforts advance a broad set of practices and
technologies that significantly reduce emissions of the major
greenhouse gases from key sources. The partnership programs:

• Span the major sectors of the U.S. economy, encompassing
  generation and use of energy in the commercial, residential,
  industrial,  and transportation sectors (see Figure 5).

• Address the most potent of greenhouse gases emitted from
  industrial processes and waste management.

• Engage and challenge  businesses, public institutions,  and
  households to reduce their greenhouse gas emissions through
  investments in energy efficiency, renewable energy, and other
  climate friendly technologies.

• Provide objective information, technical assistance,  and
  recognition for environmental leadership to organizations
  that are taking measurable steps to reduce their greenhouse
  gas emissions.
With sustained efforts, EPA and its partners will deliver a
significant portion of the emissions reductions required to
meet the President's goal for 2012. Established programs have
already demonstrated that significant accomplishments can be
achieved with well-designed partnership programs. The year
2004 was another remarkable one for EPA's voluntary climate
programs as demonstrated by the environmental and
economic accomplishments presented in this annual report.

EPA's public-private partnerships focus  on the following
opportunities to stimulate action:

Energy Efficiency. EPA has encouraged greater investment
in energy efficiency where cost effective since the early 1990s
through the ENERGY STAR program. Energy efficiency—
obtaining the identical services or output such as heating,
cooling, and lighting for less energy input—provides the
following benefits:

• Addresses the growing emissions  of carbon dioxide (CO2)
  from energy generation and use, which represent 85 percent
  of U.S. greenhouse gas emissions (see Figure 5).

• Offers significant cost savings to businesses, public
  institutions, and consumers as  many households, businesses,
  and public institutions can save 20 to 30 percent on their
  energy bills by making cost-effective investments in energy-
  efficient products and services.

• Provides a low-cost resource for improving electricity reliability.

• Helps  reduce demand for natural gas  and lower natural
  gas prices.

The ENERGY STAR program has grown into a broad
partnership with manufacturers,  retailers, home builders,
utilities, states, and others helping businesses, public
institutions, and households invest in energy efficiency.
                                   'Our partnership with ENERGY STAR has been one of the
                                   cornerstones of our very successful New York Energy Smart Program.
                                   Our market transformation efforts have been successful with retailers
                                   and consumers because of our close association with ENERGY STAR,
                                   and its message of quality, value, and environmental protection."
                                                                                —Tom Collins, Director of Communications,
                                                                    New York State Energy Research and Development Authority
 Greenhouse gas intensity is the ratio of greenhouse gas emissions to economic output (measured by the gross domestic product!. For more information on
 the Administration's goal, see http://www.whitehouse.gov/news/releases/2002/02/climatechange.html.
INVESTING  IN  OUR  FUTURE

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INTRODUCTION
  Figure 5.
  U.S. greenhouse gas emissions by sector and by gas
                 AGRICULTURAL
                      8%
                                         INDUSTRIAL
                                           29.6%
   RESIDENTIAL
      17.2%
      COMMERCIAL
         17.3%
  • CO2 85% of TOTAL
    Methane/Nitrous Oxide

  O MFCs, PFCs, and SF6
  13% of TOTAL

2% of TOTAL
 NOTE: Totals may not add to 100% due to independent rounding.
  Source: EPA GHG Inventory 2005
                            Clean Energy Supply. EPA is collaborating with its partners to
                            lower transaction costs and expand the use of technologies that
                            significantly reduce the greenhouse gas emissions from energy
                            generation. In fulfillment of the National Energy Policy, EPA is
                            promoting combined heat and power as well as the purchase of
                            renewable sources of energy so that these technologies can play
                            larger roles in the U.S. energy mix.

                            Corporate Commitments. EPA has offered leading
                            organizations the opportunity to be Climate Leaders since 2002.
                            The Climate Leaders partners take aggressive steps to reduce
                            their impacts on the global environment. They inventory their
                            greenhouse gas emissions, set aggressive long-term  reduction
                            goals, report their progress to EPA, and receive recognition for
                            their achievements. Climate Leaders partners are playing an
                            important part in helping the country reach its  greenhouse gas
                            intensity reduction  goal of 18 percent by 2012.

                            State and Local Clean Energy  Programs.  EPA is providing
                            technical assistance to state agencies  to help them assess the
                            environmental and economic benefits of clean energy policies
                            and programs, including those that advance energy efficiency,
                            combined heat and power, and renewable sources of energy.

                            Methane Programs. Methane is not only a potent greenhouse
                            gas, but is also a much sought-after clean fuel. When methane
                            emissions can be captured, the recovered methane represents a
                            valuable energy source 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 Gas Programs. Hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), and
sulfur hexafluoride (SF6) are potent greenhouse gases, meaning they have a greater ability to
trap heat in the Earth's atmosphere on a molecule per molecule basis relative  to CO2 (see
Table 2); and some of these gases persist in the environment for thousands of years. Various
U.S. industries are working with EPA to avoid significant accumulation of long-lived 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.
                                      TRANSPORTATION
                                           27.1%
Table 2.
Global warming potentials (GWPs) and atmospheric
lifetimes of greenhouse gases
Greenhouse
Gas
Carbon Dioxide
Methane
Nitrous Oxide
Hydrofluorocarbons
Perfluorocarbons
Sulfur Hexafluoride
Source: IPCC 1996
Global Warming
Potential
for 100 Years
1
21
310
140- 11,700
6,500 - 9,200
23,900
Atmospheric
Lifetime (years)
50 - 200
12 ±3
120
1.5-264
3,200 - 50,000
3,200
                                                               The results from these partnership efforts have been steady
                                                               and strong for over a decade, and 2004 was another
                                                               extraordinary year. This 2004 Annual Report provides
                                                               detailed information on each of the program areas listed
                                                               above, including program overviews, environmental and
                                                               economic benefits for 2004, and goals for the future.
  CLIMATE  PROTECTION  PARTNERSHIPS   2004   ANNUAL  REPORT

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     ENERGY STAR SINCE 2000
     The ENERGY STAR Program has been substantially expanded since the end of 2000. Important
     program efforts include:
    Adding more than 10 new
    products to the ENERGY STAR
    family, with more under
    development.
    • Air cleaners
    • Ceiling fans
    • Commercial coin-op washing
      machines*
    • Commercial cooking equipment
    • Commercial solid door
      refrigerators and freezers
    • Refrigerated vending machines
    • Set top boxes
    • Small commercial heating
      and cooling equipment
    • Telephony (cordless phones,
      answering machines)
    • Ventilation fans
                                  Updating ENERGY STAR
                                  specifications to more efficient
                                  levels for more than 15 products,
                                  with more underway.

                                  • Audio/DVD
                                  • Ceiling fans
                                  • Clothes washers*
                                  • Compact fluorescent lights*
                                  • Computer monitors
                                  • Dishwashers*
                                  • Exit signs
                                  • Freezers and compact
                                   refrigerators*
                                  • Light commercial A/C and air
                                   source heat pumps
                                  • Refrigerators*
                                  • Residential light fixtures
                                  • Residential central air
                                   conditioners and air source
                                   heat pumps
                                  • Telephony
                                  • TV/VCRs
                                  • Ventilation fans
                                  • Windows*
     *DOE managed products
                                                                      Expanding EPA's national building
                                                                      energy performance rating
                                                                      system—through which buildings
                                                                      can be rated on a scale of 1 to 100
                                                                      and earn the ENERGY STAR for top
                                                                      performance—to more than eight
                                                                      new building types.
                                                                      • Acute care hospitals
                                                                      • Bank branches
                                                                      • Courthouses
                                                                      • Financial centers
                                                                      • Hotels
                                                                      • Medical offices
                                                                      • Residence halls
                                                                      • Supermarkets and grocery stores
                                                                      • Warehouses

                                                                      Adding commercial new
                                                                      construction (Designed to Earn the
                                                                      ENERGY STAR).

                                                                      Expanding the ENERGY STAR
                                                                      program into the industrial sector
                                                                      through targeted partnerships with
                                                                      the auto manufacturing, cement,
                                                                      corn refining, petroleum, and
                                                                      pharmaceutical industries.
        ENERGY STAR KEY PROGRAM INDICATORS
                                   Products Sold
                                   Product Categories
                                   Product Models
                                   Public Awareness
                                   Retailers
                                                            600 million
                                                                33
                                                              11,000
                                                               40%
                                                                25
                                                                                   1.5 billion
                                                                                      45
                                                                                    32,000
                                                                                   Over 60%
                                                                                     550
QUALIFIED
PRODUCTS
                                   New Homes Built
                                   Home Builders
                                   Buildings Benchmarked
                                   Buildings Labeled **
                                   Building Types
COMMERCIAL
BUILDINGS
        INDUSTRIAL
        IMPROVEMENTS
                           Industry Focuses
                                   Energy Saved (kWh)
                                   Avoided Emissions (MMTCE)
                                   Net Savings (2004 $s)
                                                                                   126 billion
                                                                                     30.3
                                                                                   $10 billion
ANNUAL RESULTS
       ** Results are cumulative.
INVESTING  IN  OUR  FUTURE

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     ENERGY STAR PROGRAM
                                   ENERGY STAR PROGRAM
                                   There is large potential for cost-effective energy efficiency that is not being fully realized in
                                   businesses and households across the United States due to the number of informational,
                                   institutional, and practical obstacles that hinder greater investment. For example, while
                                   businesses and homeowners may express interest in energy-efficient improvements for their
                                   buildings or homes, they do not always 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.
                                   There may also be a lack of incentive for builders or building owners who do not usually pay
                                   the energy bill and, therefore, may equip buildings at the lowest cost with less efficient
                                   products.

                                   The ENERGY STAR program seeks to overcome many of these market barriers and enable
                                   businesses, organizations, and consumers to realize the cost savings and environmental
                                   benefits of energy efficiency investments. The ENERGY STAR program employs the
                                   following strategies:

                                   • Uses the government-backed ENERGY STAR label to  clearly identify the products, practices,
                                    services, new homes, and buildings that meet government guidelines for energy efficiency—
                                    offering lower energy bills and environmental benefits.

                                   • Empowers decisionmakers by making them aware of the benefits of products, homes, and
                                    buildings that qualify as ENERGY STAR, by providing easy to use assessment tools, and by
                                    providing project guidelines for efficiency improvements.

                                   • Works with retailers, service providers, and others in the delivery chain to offer energy-
                                    efficient products and services.

                                   • Partners with regional, state, and local organizations running energy efficiency programs to
                                    take advantage of growing public awareness of ENERGY STAR and achieve greater energy
                                    efficiency in the residential and commercial sectors with combined resources.

                                   Introduced by EPA in 1992 for energy-efficient computers, the ENERGY STAR program has
                                   become a broad platform for energy  efficiency across the residential, commercial, and industrial
                                   sectors. The program has grown to include:

                                   • Efficient new homes that became eligible for the ENERGY STAR label in 1995.

                                   • Corporate management approaches for improving the energy performance of commercial
                                    buildings, which became a core ENERGY STAR strategy (building upon Green Lights)
                                    starting in 1995.

                                   • More than 40 product categories for homes and businesses.
                                     "With ENERGY STAR, Lowe's partners with our employees and
                                      customers to help improve the environment through reduced pollution
                                      and decreased reliance on energy. Through our training and
                                      educational efforts, we help make the connection between energy use
                                      and the environment, which last year led to sales of over 5 million
                                      ENERGY STAR qualified products—saving our customers more than
                                      $58 million in energy costs and reducing carbon emissions equivalent
                                      to planting nearly 116,000 acres of trees."
                                                                 —Michael Chenard, Director Environmental & Government Affairs,
                                                                                                 Lowe's Companies, Inc.
10
       CLIMATE  PROTECTION   PARTNERSHIPS  2004   ANNUAL  REPORT

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ENERGY STAR PROGRAM
 ' Collaboration with DOE which assumed responsibility for
  certain product categories in 1996.

 1 A new national energy performance rating system for office
 buildings—similar to the miles per gallon rating for
 vehicles—which was introduced in 1999 and now applies to
 building types such as schools, hospitals, hotels, and grocery
 stores, among others.

 1 Approaches for energy management and efficiency
 improvements in the industrial sector since 2001, when EPA
 integrated the Climate Wise program into ENERGY STAR.

 ' Residential home improvement services that offer solutions
  beyond product purchases with the 2001 launch  of
  ENERGY STAR Home Sealing and the whole house home
  improvement effort called Home Performance with
  ENERGY STAR.
The economic and environmental benefits of ENERGY STAR
through the year 2004 are substantial. More than 1.5 billion
ENERGY STAR qualified products have been purchased,
more than 360,000 ENERGY STAR qualified new homes are
in place, and billions of square feet of building space have
been improved. Americans, with the help of ENERGY STAR,
have saved about 125 billion kilowatt hours of energy, or
about 4 percent of the total 2004 electricity demand, as
shown in Table 3. They have prevented 30 million metric tons
of greenhouse gas emissions, saved about $10 billion on their
utility bills, and helped avoid 25 GW of
peak power. These benefits have doubled
since 2000 as EPA and DOE have
continued to expand and refine the
program in important ways (see page 9).

Additional program achievements within the
residential, commercial, and industrial sectors
are presented in the following sections.
Table 3.
ENERGY STAR Program: Annual Goals and Achievements
2004
Energy Saved
(Billion kWh)
Goal Achieved
PROGRAM TOTAL FOR ENERGY STAR 99.5
Qualified Products and Homes2 —
Residential Products 	
Consumer Electronics3 	
4

D -^ t- i rttr c

• ut-

Heating and Cooling —
Commercial Products 	
Commercial Appliances —


r »• i i • k*-



M Ul

Commercial Building Improvements5
Industrial Improvements6
125.81
61.2
24.9
7.5
0.2
9.4
5.3
2.6
35.6
0.6
33.7
1.2
0.1
0.7
64.6
	
Emissions Prevented
(MMTCE)
Goal Achieved
24.8
11.9
	
	






	
	
	








9.5
3.4
30.3
12.8
5.6
1.5
0.0
1.9
1.1
1.1
7.2
0.1
6.8
0.2
0.0
0.2
13.2
4.1
2005
Energy Emissions
Saved Prevented
(Billion kWh) (MMTCE)
Goal Goal
116.8
	
	
	






	
	
	








	
	
27.3
13.3
	
	






	
	
	








10.5
3.5
The kWh savings imply peak demand savings of more than 25gigawatts (GW), based on conservation load factors developed by LBNL (Koomey et al., 1990).
Results for qualified products from Webber etal., 2005.
A small portion of consumer electronics may be used in commercial buildings such as hotels. For reporting purposes, all consumer electronics results are included under
Residential Products.
EPA results only, does not include products under the responsibility of DOE.
Results from building improvements based on methodology presented in Horowitz, 2004.
Results from industrial improvements from ICF Consulting, 2005.
Totals may not equal sum of components due to independent rounding.
	 : Not applicable
INVESTING  IN  OUR  FUTURE
                                                                                                                     11

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 ENERGY STAR PSA SHOWS HOW TO PROTECT
 THE ENVIRONMENT RIGHT FROM HOME

 EPA launched a new public service announcement (PSA)
 campaign in May 2004 encouraging the public to look for the
 ENERGY STAR to help prevent the air emissions created when
 electricity is generated for home use. The campaign uses humor
 to make the point that the energy used in a home may cause
 twice the greenhouse gas emissions of a vehicle.

 The TV PSA shows the value and ease of looking for the
 ENERGY STAR to find qualified products and get home
 improvement tips, which will reduce the amount of energy
 needed for a home. The comprehensive campaign, which
 includes TV, radio, and print PSAs in English and Spanish,
 encourages consumers to visit www.energystar.gov to discover
 five steps to protect the environment right from home. If every
 household followed just one of these steps—replacing their five
 most frequently used lights with ENERGY STAR qualified
 ones—that would prevent more than one trillion pounds of
 greenhouse gas emissions.
 EPA ENCOURAGES HOMEOWNERS TO TAKE THESE FIVE STEPS TO PROTECT THE ENVIRONMENT:
 1. Change five lights
    Replace the five most frequently used lights, or the
    bulbs in them, with ones that have earned the
    ENERGY STAR to save energy and prevent emissions.

 2. Look for products that have earned the
    ENERGY STAR
    When shopping for lighting, home electronics, heating
    and cooling equipment, and appliances, choose
    ENERGY STAR qualified products.

 3. Heat and cool smartly
    Improve the home's performance by servicing
    equipment annually, using programmable
    thermostats, and replacing old equipment with
    ENERGY STAR models.
4.  Seal up the house
   Seal air leaks around drafty windows and doors, add
   insulation to attics, and buy ENERGY STAR windows
   when replacing older ones to improve comfort in your
   home and save energy.

5.  Tell family and friends
   Help spread the word that energy efficiency is
   important—it benefits your home, lowers your utility
   bills, and makes a difference in your environment.
Energy savings from ENERGY STAR qualified products
and homes add up to cleaner air and lower energy bills
for American consumers.  And, as the ENERGY STAR PSA
campaign points out, saving energy every day right from
home is an easy step for anyone to take.
CLIMATE  PROTECTION  PARTNERSHIPS  2004  ANNUAL  REPORT

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ENERGY STAR PROGRAM
ENERGY STAR in the Residential Sector

Homes continue to provide a sizeable opportunity for protecting
the environment through energy efficiency. The energy used in a
typical home can cause twice as many greenhouse gas emissions
as operating a vehicle for one year. That energy costs about
$1,500 per year. By looking to ENERGY STAR for greater
efficiency, households are saving up to $450 annually on utility
bills and significantly reducing their emissions of greenhouse
gases. Whether buying a product for the home, making home
improvements, or buying a new home, consumers can rely on
ENERGY STAR to guide their investment decisions, save them
money, and contribute to a better environment. Residential
sector highlights for 2004 include:

More ENERGY STAR qualifying products. More ENERGY
STAR qualified products joined the family this past year as
EPA introduced new ENERGY STAR specifications for air
cleaners (in addition to products in the commercial sector),
and completed the work necessary to qualify external power
supplies for the ENERGY STAR, which will be announced in
early 2005. In addition, EPA undertook efforts to update
energy efficiency specifications for products in cases where
technology had advanced and updates were necessary to
maintain the value of ENERGY STAR. EPA updated  the
specification for computer monitors; and, for the first time,
it addresses energy consumption while monitors are in use,
as well as when they are idle. By the end of 2004, Americans
could choose  energy-saving products from more than
40 categories  to use in their homes. These products offer
consumers savings of between 10 and 90 percent relative to
standard models and up to 30 percent savings in total on their
energy bills. More than  1,400 manufacturers are using the
label on more than 32,000 qualifying product models.
            CHANGE FORTHE
            BETTER WITH
            ENERGY STAR
                                NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT
                                AUTHORITY
                                Albany, New York
PARTNER OF THE YEAR 2004
                                The New York State Energy Research and Development Authority (NYSERDA) has
                                achieved tremendous success leveraging the ENERGY STAR platform across many
program areas, demonstrating an organization-wide commitment. As a result, EPA recognized NYSERDA as the winner of the
Corporate Commitment award in 2004, making it only the fourth organization and the first public entity to earn the award. Since
the program's inception in 1999, the market share of ENERGY STAR qualifying appliances, room air conditioners, and lighting
fixtures has risen by more than 100 percent. NYSERDA also leads the nation in the market for home improvement through
Home Performance with ENERGY STAR, which encourages homeowners and contractors to identify and implement a complete
set of cost-effective improvements when retrofitting homes. The program has helped create more than 6,400 jobs and saved
homeowners $3.5 million in 2004. NYSERDAs ENERGY STAR labeled homes program, launched in 2001, helped promote the
construction of 2,500 ENERGY STAR labeled homes statewide in 2004, more than doubling the program  total in one year
alone. NYSERDA is helping state agencies use EPA's energy performance rating to identify good candidates for building
improvements. Already, more than  25 percent of state buildings are tapping into ENERGY STAR. Across  New York, NYSERDA is
assisting public school districts by using ENERGY STAR to elevate energy priorities, develop effective school improvement
plans, and attain ENERGY STAR Leader designations based on their savings, (for a complete list of ENERGY STAR Award
Winners for 2004, see page 26.)
INVESTING  IN  OUR  FUTURE
                                                                                                                 13

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     ENERGY STAR PROGRAM
      "Our ongoing
       relationship with
       ENERGY STAR has
       been a most
       rewarding journey.
       We, at Ence Homes,
       can attribute a
       great amount of
       our success to the
       ENERGY STAR
       program.  Our
       mission statement
       reflects our sincere
       commitment:
       Providing Prompt,
       Courteous
       Customer Service
       While Building
       Quality, Innovative
       and Energy Efficient
       Homes."
            —Kim Ence, President,
                   Ence Homes
Growing awareness. The ENERGY STAR label is now recognized by more than 60 percent
of the American public, up from 40 percent in 2001. In addition, consumers increasingly trust
ENERGY STAR when making purchasing decisions. A majority of consumers report that the
label influenced their purchasing decisions, and more than 70 percent of those who purchased an
ENERGY STAR product would recommend ENERGY STAR to a friend (GEE Household,
2005). The ENERGY STAR label ranks among the highest level of influence on product
purchases among all consumer emblems, similar in ranking to the Good Housekeeping Seal
and Consumer Reports (Fairfield Research, 2003). Some of the growth in awareness is the
result of a series of national public awareness campaigns developed by EPA. The most recent
campaign launched in the summer of 2004 (see page 12) offers practical advice  to consumers
on what they can do to reduce greenhouse gas emissions. The campaign has garnered more
than $5.5 million in equivalent ad value through print, radio, and television placements
through the end of 2004 and continues to run.

Nearly 10 percent of the  nation's new homes earned the ENERGY STAR. Homes that
earn the ENERGY STAR provide comfort, value, and savings to homeowners and increased
profits to home builders, while protecting the environment. In 2004, nearly 10  percent of the
nation's housing starts were ENERGY STAR qualified homes, and by the  end of the year,
more than 360,000 homes had earned the ENERGY STAR, saving Americans more than
$200 million in energy costs annually.  Recent growth in the number  of qualified new homes
has been exceptional, with a doubling in each of the past 3 years. Now in  many major markets,
prospective home buyers can easily find an ENERGY STAR qualified home because local
builders are constructing 20 percent or more of their new homes as ENERGY STAR. These
markets include Phoenix, Las Vegas, Southern California, and parts of Texas. New Jersey, New
England, and the Midwest also have large concentrations of ENERGY STAR qualified homes.
Recognizing the value of offering ENERGY STAR qualifying homes, some 2,500 builder
partners have joined ENERGY STAR,  including the nation's 10 largest home builders, 23 of
the top 25 builders, and nearly 50 percent of the top 100 builders (Builder Magazine, 2003).

Beyond products with ENERGY STAR Home Improvement. EPA continued to work to
help homeowners make home improvements by promoting contractor services that improve
the efficiency and comfort of their homes, as well as do-it-yourself steps homeowners can take
to improve their homes. EPA, working with DOE, the U.S. Department of Housing and
Urban Development (HUD), and regional sponsors, promoted the whole house improvement
program called Home Performance with ENERGY STAR. This program emphasizes whole
house diagnostics, provides for improvements made by trained, credentialed technicians  to
CHANGE FORTHE
BETTER WITH
ENERGY STAR
                                 CENTERPOINT ENERGY
                                 Houston, Texas
                                  PARTNER OF THE YEAR 2004
                                CenterPoint Energy is successfully building consumer
                                awareness and demand for ENERGY STAR qualified
                                homes, while also increasing the building industry's
willingness and ability to construct ENERGY STAR qualified homes around Houston. Since its
inception 4 years ago, the program has worked closely with consumers, realtors, and
builders to ensure that they understand the value associated with ENERGY STAR qualified
homes. The number of qualified homes in CenterPoint's program grew to more than 13,000
in 2004. Exemplary efforts in 2004 include CenterPoint's extensive outreach campaign
highlighting the value of ENERGY STAR. In addition, CenterPoint's realtor outreach included
co-sponsoring a  continuing education course for Houston realtors that explains the value of
ENERGY STAR to assist them in selling new homes. CenterPoint also regularly conducts
training for and reaches out to builder sales staffs and home energy raters, (for a complete
list of ENERGY STAR Award Winners for 2004, see page 26.)
14
       CLIMATE  PROTECTION  PARTNERSHIPS  2004  ANNUAL  REPORT

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ENERGY STAR PROGRAM
  ENERGY STAR PRODUCT CATEGORIES
  Appliances
  Clothes Washers*
  Dishwashers*
  Refrigerators & Freezers*

  Heating & Cooling
  Air-source Heat Pumps
  Boilers
  Central  AC
  Ceiling  Fans
  Dehumidifiers
  Furnaces
  Geothermal Heat Pumps
  Home Sealing (Insulation)
  Light Commercial HVAC
  Programmable Thermostats
  Room AC*
  Ventilating Fans
  *DOE managed products
                                    Home Electronics
                                    Cordless Phones
                                    Combination Units
                                    DVD Products
                                    Home Audio
                                    Televisions
                                    VCRs

                                    Office Equipment
                                    Computers
                                    Copiers
                                    Fax Machines
                                    Laptops
                                    Mailing Machines
                                    Monitors
                                    Multifunction Devices
                                    Printers
                                    Scanners
Commercial Food Service
Commercial Fryers
Commercial Hot Food Holding Cabinets
Commercial Solid Door Refrigerators
 & Freezers
Commercial Steam Cookers

Lighting
Ceiling Fans with CFLs
Compact Fluorescent Light Bulbs (CFLs)J
Exit Signs
Residential Light Fixtures
Traffic Signals

Other
Roof Products
Room Air Cleaners
Transformers
Vending Machines
Water Coolers
Windows, Doors, & Skylights*
            CHANGE FORTHE
            BETTER WITH
            ENERGYSTAR
                                LOWE'S COMPANIES, INC.
                                Mooresville, North Carolina
PARTNER OF THE YEAR 2004
                                Evidence of Lowe's strategic commitment to ENERGY STAR includes everything from a
                                dedicated ENERGY STAR staff and regular ENERGY STAR progress meetings to features
                                in its annual and social responsibility reports and visual standard guidelines for ENERGY
STAR. Moreover, this commitment translated into a 38 percent increase in stocking and a 44 percent increase in sales of
ENERGY STAR qualified products in 2004 — more than double its overall sales growth of 18 percent. Lowe's has consistently
delivered and expanded its consumer education activities through sales associate training, in-store promotions, vendor and
utility promotions, TV ads, direct mail, and its Web site — altogether reaching 95,000 sales associates and more than 10 million
customers per week. (For a complete list of ENERGY STAR Award Winners for 2004, see page 26.)
INVESTING  IN  OUR  FUTURE
                                                                                                               15

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     ENERGY STAR PROGRAM
                                  POTENTIAL AIR LEAKS IN A HOME
                                  improve the efficiency and comfort of the home, and backs up contractor work with a strong
                                  quality assurance program. Key states and metropolitan areas that operate Home Performance
                                  with ENERGY STAR programs are New York, Wisconsin, California, Massachusetts, Missouri,
                                  Atlanta, Georgia, and Austin, Texas. By the end of 2004, these states and metro areas completed
                                  close to 12,000 whole house retrofits, with many retrofits saving between 25 and 40 percent of
                                  total energy costs. To facilitate the national expansion of Home Performance with ENERGY
                                  STAR, EPA collaborated with DOE and  HUD to financially support the Building Performance
                                  Institute (BPI) with a $ 1 billion grant to  establish a nationwide accreditation and certification
                                  program for whole house performance contractors.

                                  In 2004, EPA continued to promote ENERGY STAR Home Sealing as an effective means to
                                  cut energy costs and improve the comfort of homes by properly insulating homes and sealing
                                  air leaks within the home's envelope. In many cases, home owners can do this work themselves.
                 CHANGE FORTHE
                 ENERGY STAR
                                PARDEE HOMES
                                Los Angeles, California
     PARTNER OF THE YEAR 2004
                                Pardee Homes began its solid commitment to building and qualifying 100 percent of its
                                homes as ENERGY STAR in January 2002, firmly establishing energy efficiency as a core
                                value of the company. First test marketed in 1998, Pardee's ENERGY STAR marketing
commitment will account for nearly 7,000 qualified homes built during 2004 in the California and Nevada regional markets. The
most recent example is Pardee's role as the first builder to showcase ENERGY STAR qualified products, systems, and programs
as a key design focus in the television series "Extreme Makeover Home Edition." The show reaches an estimated 23 million
viewers each week and is a great platform for demonstrating the benefits of energy efficiency that an ENERGY STAR qualified
home offers. (For a complete list of ENERGY STAR Award Winners for 2004, see page 26.)
16
       CLIMATE   PROTECTION  PARTNERSHIPS  2004  ANNUAL   REPORT

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ENERGY STAR PROGRAM
EPA worked closely with major retailers to promote ENERGY
STAR Home Sealing through do-it-yourself clinics as well as
in-store promotions. EPA developed and distributed the new
"Do-It-Yourself Guide to ENERGY STAR Home Sealing," an
easy-to-use instruction booklet for home owners to improve
the comfort and energy efficiency of their homes through
better insulating and  air sealing practices.

In addition to envelope improvements promoted under
ENERGY STAR Home Sealing, EPA began to lay the ground
work for a proper HVAC installation program. HVAC
industry professionals have demonstrated that proper
installation, including proper refrigerant charge, air flow over
the coils, and properly sealed ducts, ensures that HVAC
systems operate at peak efficiency. Poorly installed equipment
can impose a 10 to 20 percent energy penalty on the system.
EPA is working closely with the Air Conditioning Contractors
of America (ACCA) and the Consortium for Energy Efficiency
(CEE) to develop industry-accepted standards for proper
installation that achieve real energy savings. These organizations
will continue their work over the coming year to assist EPA in
the development of a proper HVAC installation program.

In 2005, EPA will:
• Update energy efficiency specifications for more products,
  including those for televisions, dehumidifiers, telephony, air
  conditioners, heat pumps, and light fixtures. EPA will also
  add external power supplies (cordless phone or cell phone
  chargers, for example) and battery chargers to the ENERGY
  STAR suite of qualifying residential products.

• Continue to build consumer awareness of ENERGY STAR.
  EPA will continue its public service campaign providing
  consumers with five simple steps they can take to help reduce
  energy use at home and prevent greenhouse gas emissions.
  EPA will also coordinate focused national campaigns for
  lighting products, home electronics, and cooling equipment.
  The goal is to raise awareness of the ENERGY STAR label as
  a credible symbol for energy efficiency and environmental
  protection to more than 70 percent over the next several years.

• Work with manufacturers, retailers, home builders and
  raters, utilities, and states in broad consumer promotions of
  ENERGY STAR qualified products and new homes. In 2005,
  EPA expects 175 million ENERGY STAR  qualified products
  to be sold and 170,000 new ENERGY STAR homes to be
  constructed.
• Increase the stringency of the specification for ENERGY
 STAR qualified new homes to reflect improvements in the
 International Energy Conservation Code (IECC). For the
 first time, EPAs new home specification is expected to include
 lighting and appliances. And builders will be able to earn the
 ENERGY STAR label for their homes through either a
 performance path or a prescriptive path.

• Pilot an Indoor Air Quality (IAQ) specification paired with
 the ENERGY STAR specification for new homes. The IAQ
 specification will address moisture control, radon, pest
 control, HVAC, combustion safety, building materials, and
 commissioning. EPA will run a limited number of pilots over
 the next 3 years.

• Continue to expand Home Performance with ENERGY
 STAR nationally by assisting the contractor accreditation and
 technician certification program of BPI. EPA expects  that
 more than 21,000 whole house retrofits will be completed by
 the end of 2005 under this program.

• Develop an installation and maintenance program for
 HVAC systems to complement the ENERGY STAR label
 for HVAC. EPA anticipates pilot projects in 2006 followed
 by implementation of a full national program by 2007.
INVESTING  IN  OUR  FUTURE
                                                                                                                         17

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         PROGRAM EVALUATION: MEASURING RESULTS IN THE ENERGY STAR PROGRAM
         In 2004, the ENERGY STAR program helped Americans save nearly $10 billion on their energy bills while avoiding
         30 million metric tons of greenhouse gas emissions—emissions equivalent to those from 20 million vehicles. The
         benefits resulting from key strategies are estimated as outlined below.

         ENERGY STAR Products and New Homes
         By 2004, more than 1.5 billion ENERGY STAR qualifying products had been purchased, and more than 360,000 ENERGY
         STAR new homes had been constructed. These efforts are estimated to have saved 61 billion kWh of electricity and
         $5.1 billion on energy bills, while avoiding 13 MMTCE of greenhouse gas emissions. These estimates were developed as follows:6
         Products
          Sales of products due to the ENERGY STAR program are determined as those
          above and beyond established business-as-usual purchases of these products.
          These sales are estimated by:

               Collecting annual sales data on ENERGY STAR qualifying products from
               participating product manufacturers as a condition of partnership and
               supplementing these data by industry reports on total annual product
               sales as necessary. These data are screened and issues resolved.

               Using established business-as-usual baselines for annual product sales
               for each product category. These baselines use historic data and expert
               judgment and typically reflect increasing market shares for efficient
               products and increasing product efficiencies over time.

          Annual energy savings are calculated using established values for the
          difference  in annual energy use between a single ENERGY STAR product and
          a typically  purchased product. For these values,  EPA:

               Assumes that ENERGY STAR products just meet the ENERGY STAR
               thresholds, even though there  are some products that exceed this level.

               Assumes the typically purchased product meets minimum efficiency
               standards where standards exist or uses the average energy use for the
               product category where there are no standards.

               Supports primary data collection, such as  product metering to collect
               power use information, where  additional information is necessary to
               estimate energy savings.

          Peak power savings are estimated using product-specific factors that
          reflect the  contribution of the annual energy savings from a product to
          peak load savings.

          Net energy bill savings reflect the incremental purchase price of ENERGY
          STAR qualifying products, where there is a price premium, and use national
          sector-specific fuel prices.

          Avoided emissions of greenhouse gases are determined using marginal
          emissions  factors for CO2 derived from energy efficiency scenario runs of
          national energy models. EPA is currently using the integrated utility dispatch
          model. Integrated Planning Model (IPM®), to estimate these emissions factors.7

          The potential for double-counting benefits, such as counting the energy
          savings from ENERGY STAR qualifying HVAC equipment installed in new
          ENERGY STAR homes in both areas, is addressed.
                                        New Homes
                                          EPA receives data quarterly from
                                          third-party verifiers (home energy
                                          raters) on the number of homes
                                          they verified to be ENERGY STAR,
                                          as a condition of program
                                          partnership. These raters abide by
                                          a set of quality assurance practices
                                          to ensure data quality. In addition,
                                          EPA reviews the submitted data
                                          and resolves any data irregularities.

                                          EPA recognizes that some new
                                          homes that qualify for ENERGY
                                          STAR are not a direct result of the
                                          program and that many homes built
                                          to ENERGY STAR levels due to the
                                          program are not  labeled or reported
                                          to the program. Currently, EPA
                                          estimates the former number of
                                          homes to be lower than the latter.

                                          Annual energy savings are
                                          calculated using established values
                                          for the energy savings from a home
                                          that meets the ENERGY STAR level
                                          relative to a home built to code.
                                          Energy bill savings are calculated
                                          using average national energy
                                          prices for the residential sector.

                                          Peak power savings and avoided
                                          emissions of greenhouse gases are
                                          determined using approaches
                                          similar to those described for
                                          products.
18
       CLIMATE  PROTEC
PARTNERSHIPS  2004   ANNUAL  REPORT

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    Commercial Buildings
    EPA estimates that 65 billion kWh and $4.2 billion were
    saved while avoiding  13.2 MMTCE of greenhouse gas
    emissions due to ENERGY STAR commercial sector efforts
    in 2004. EPA estimates these benefits as follows:8

      Annual electricity savings are determined using a peer-
      reviewed  methodology developed for the commercial
      building sector, which estimates national electricity
      savings due to market transformation programs
      throughout the United States. The methodology uses
      more than a decade of economic, product shipment,
      and other time-series data. It distinguishes electricity
      savings attributable  to energy efficiency programs
      such as ENERGY STAR and those attributed to market
      effects such as declining prices for efficient products.
      It also distinguishes  the electricity savings from utility-
      run demand-side management programs and other
      market transformation programs, such as DOE's
      Rebuild and FEMP programs and  regional energy
      efficiency programs, so that the estimated annual
      electricity savings from ENERGY STAR do not overlap
      with these efforts.

      The peak  power savings are estimated using system
      specific factors that  reflect the contribution of the
      energy savings from lighting and  other building
      improvements to peak load savings.

      Net energy bill savings reflect the incremental
      investment in ENERGY STAR  measures determined by
      using simple payback period decision criteria and use
      national commercial sector fuel prices.

      Avoided emissions of greenhouse gases  are
      determined using marginal emissions factors for CO2
      as discussed above.

      The potential for double-counting, such as including
      the electricity savings from ENERGY STAR office
      equipment used in commercial buildings, has been
      addressed.
Industry
EPA partners in the industrial sector are estimated to
have avoided 4.1 MMTCE of greenhouse gas emissions
in 2004. While they also achieved significant reductions
in electricity use and fuels, as well as energy bill savings,
these benefits are not estimated due to the lack of data.
EPA estimates program benefits as follows:

  Industrial  partners use one of two methods to report
  greenhouse gas emissions reductions. Either partners
  file reports under the federal Voluntary Reporting of
  Greenhouse Gases Program (1605(b)) that are reviewed
  by EPA or, in a small number of cases, EPA works
  with  individual companies to estimate their emissions
  reductions.

  EPA adjusts the reported results to account for
  business-as-usual improvements, structural changes in
  the sector that do not reflect efficiency improvements
  such as plant sales or closures, and program benefits
  attributable to the commercial building efforts or other
  federal programs. Process-related actions are included
  in the results,  whereas activities such as recycling,
  lighting improvements, and transportation
  improvements are not.
     EPA's Qualified Products and Buildings sector savings are $5.1 and $4.2 billion, respectively. Savings from DOE's Qualified Products 130.9 billion) bring total ENERGY STAR savings
     to around $10 billion. Greenhouse gas sa vings from EPA Qualified Products, Homes, Buildings, and Industrial sectors are 12.8, 0.2, 13.2, and 4.1 MMTCE, respectively for a total of
     30.3 MMTCE.
     For more details on many aspects of this method, see the peer-reviewed articles, "Savings Potential of ENERGY STAR Voluntary Labeling Programs," by Carrie A. Webber and
     Richard £ Brown; and "Sa vings Estimates for the ENERGY STAR* Voluntary Labeling Program: 2001 Status Report" by Carrie A Webber, eta I.
     For more details on IPM, see "Documentation Summary for EPA Base Case 2004 (V.2.1.9) Using the Integrated Planning Model" at http://www.epa.gov/airmarkets/epa-
     ipm/docsummary.pdf
     For more details on many aspects of this method, see Marvin J. Horowitz, "Electricity Intensity in the Commercial Sector: Market and Public Program Effects," The Energy
     Journal, Vol 25, No. 2, Spring 2004, pp. 115- 137, and "Economic Indicators of Market Transformation: Energy Efficient Lighting and EPA's Green Lights," The Energy Journal, Vol.
     22, No. 4, Fall 2001, pp. 95- 122.
INVESTING  IN  OUR   FUTURE
                                                                                                                                19

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     ENERGY STAR PROGRAM
       "With more than
       200 stores across
       four states, energy
       management and
       conservation is
       not only a
       responsibility, but
       a priority for
       everyone at Giant
       Eagle. We have long
       been committed as
       a company to being
       a friend to the
       environment, and
       being named the
       2004 ENERGY STAR
       Partner of the Year
       is an honor that we
       take great pride in
       earning."
         —David Shapira, Chairman
             and CEO, Giant Eagle
ENERGY STAR in the Commercial  Sector

EPA offers the ENERGY STAR partnership to organizations of all types and sizes, encouraging
senior level executives and decisionmakers to commit to superior energy management. As a
result, these organizations reap the economic and environmental benefits that come with energy
savings. Many U.S. buildings and industrial facilities can use 20 to 30 percent less energy by
making cost-effective investments in energy efficiency. EPA provides standardized measurement
tools, proven business strategies to capture substantial environmental and economic benefits,
and recognition for organizations when they meet important milestones. Commercial sector
highlights for 2004 include:

More organizations committed to superior energy management. In 2004, many new
businesses and organizations joined with EPA to pursue superior energy management. Local
governments led the way, doubling the number  of new partners over the previous year. By
year end:

• More than 13,000 organizations, including small businesses, were working with EPA to
  improve their energy management practices.

• ENERGY STAR partners represented about 13 billion square feet of building space across the
  country or approximately 19 percent of the commercial building market.

Thousands of buildings benchmarked for energy  performance.  EPAs energy
performance rating system is growing as a valuable means for assessing the baseline energy
performance of buildings and targeting investments. The performance rating, launched in
1999, compares the energy use of an individual  building against the national stock of similar
buildings using a 1 to 100 point rating system. The rating shows whether a building is a high
or low energy performer, or somewhere in between. To date, the system has been used to
evaluate about 21,000 buildings representing more than 3.5 billion square feet (or 12 percent
of the total eligible market). This includes 34%  of hospitals, 22% of office buildings, 21% of
supermarkets, 13% of schools, and 9% of hotels. Also in 2004, the rating was extended to
more building types, including financial centers, courthouses, bank branches, warehouse/
storage facilities, residence halls, and medical offices. EPA now provides the commercial market
with the capability to rate building types that represent more than 50 percent of the sectors
energy use.
CHANGE FORTHE
BETTER WITH
ENERGY STAR
                                NEW YORK-PRESBYTERIAN HOSPITAL
                                New York, New York
PARTNER OF THE YEAR 2004
                                                                  New York-Presbyterian Hospital (NYPH) delivers
                                                                  comprehensive medical services to residents of New
                                                                  York City and its surrounding boroughs, handling
                                   100,000 discharges, scheduling more than 850,000 outpatient visits, delivering 11,500 babies,
                                   and accommodating 178,000 emergency visits each year. NYPH joined ENERGY STAR in
                                   2003, recognizing that every dollar saved on energy costs is a dollar that could be devoted to
                                   healthcare delivery or medical research. Under the  leadership of a full-time energy program
                                   manager, NYPH rated the energy performance of all its facilities and set a goal of achieving
                                   and maintaining ENERGY STAR status for both its hospitals and medical office buildings in
                                   2005. The hospital is well on its way toward accomplishing these goals, having already been
                                   recognized as an ENERGY STAR Leader for achieving a 10-point portfolio-wide improvement
                                   from the first round of energy-saving capital projects. NYPH's combined savings in energy is
                                   equivalent to generating more than $18 million in new business. (Fora complete list of
                                   ENERGY STAR Award Winners for 2004, see page 26.)
20
       CLIMATE   PROTECTION  PARTNERSHIPS  2004   ANNUAL  REPORT

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ENERGY STAR PROGRAM
More top performing buildings earn the ENERGY STAR.
EPA offers the ENERGY STAR label to businesses and public
institutions as a way to distinguish buildings that are top
energy performers—those that score in the top 25 percent on
the rating system while meeting industry standards for indoor
air quality. Through 2004:

• Nearly 2,000 buildings, representing almost 400 million
  square feet, earned the ENERGY STAR, saving a significant
  amount of energy and avoiding unnecessary greenhouse gas
  emissions. These top performers use about 40 percent less
  energy than average  buildings.

• The ENERGY STAR label could be found in every U.S.
  state and the District of Columbia on the following building
  types: office buildings, schools, financial centers, bank
  branches, supermarkets, courthouses, hospitals, medical
  offices,  hotels,  residence halls, and warehouses.

• EPA expanded the ENERGY STAR program to new
  building design. Nine commercial building design projects
  have already received the "Designed to Earn the ENERGY
  STAR" graphic because the estimated energy performance of
  these building  designs met EPA criteria. The completed
  buildings will be eligible to receive the ENERGY STAR
  after maintaining superior energy performance for one year.
                   Increased recognition for organizations achieving
                   important milestones. In 2004, EPA launched a new
                   initiative, ENERGY STAR Leaders, to recognize partners
                   that establish baseline ratings for their organization-wide energy
                   use and achieve energy efficiency improvements of 10, 20, or
                   30 points above the baseline across their portfolio. EPA
                   recognized a diverse set of 18 organizations as ENERGY
                   STAR Leaders in October 2004 (see box below). Of these
                   Leaders, seven had already achieved an average portfolio-wide
                   rating of 75 or better.
   THE 2004 ENERGY STAR LEADERS
   Achieving a 10-point
   improvement portfolio wide
   Colorado Springs School
   District 11
   Colorado Springs, CO

   The Vanguard Group
   Valley Forge, PA

   Achieving a 20-point
   improvement portfolio wide
   Cambridge Savings Bank
   Cambridge, MA
Achieving an average portfolio-
wide rating of 75 or better
Cambridge Savings Bank
Cambridge, MA
Columbus Hospitality
Columbus, OH
Food Lion, LLC
Salisbury, NC
Giant Eagle
Pittsburgh, PA
Granite Properties
Piano, TX
H.E. Butt  Grocery Company
San Antonio,  TX
USAA Real Estate Company
San Antonio,  TX
Completing the portfolio-wide
baseline
Academy School District 20
Colorado Springs, CO
Douglas, Emmett & Company
Los Angeles, CA
Glenborough Realty Trust, Inc.
San Mateo, CA
The Hartford
Hartford, CT
Muskogee Public Schools
Muskogee, OK
New York-Presbyterian Hospital
New York, NY
Parkway Properties
Jackson, MS
The Saunders Hotel Group
Boston, MA
The World Bank
Washington, DC
INVESTING  IN  OUR  FUTURE
                                                                                                                    21

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     ENERGY STAR PROGRAM
      "We are pleased to
      be recognized as an
      ENERGY STAR
      Partner of the Year.
      This award not only
      acknowledges the
      efforts of district
      staff and students,
      but also sends a
      clear message to
      the community that
      the district is a
      responsible steward
      of the environment
      and their tax dollars.
      With the help of
      ENERGY STAR, the
      district has saved
      more than $4 million
      in energy costs and
      used these funds to
      enhance student
      achievement."
        —Thomas Fernandez, Energy
          Manager, Colorado Springs
                School District 11
Many service providers, utilities, states, and others are leveraging the ENERGY
STAR commercial program. In 2004, EPA continued to partner with interested organizations,
such as energy service providers, utilities, state energy groups, and public benefits funds
administrators to provide clear, accurate information to energy end-users about opportunities
for improved energy performance. By the end of 2004, 5 5 energy efficiency program sponsors
across the United States were partnering with EPA to offer resources to end-user customers,
enabling them to be more energy efficient. Highlights include:

• NSTAR, a major New England utility, completed the first phase of a benchmarking pilot
  program with ENERGY STAR for customers who control over 7 million square feet of
  floor space.

• The Business Council of Fairfield County (CT) (formerly SACIA), in cooperation with
  Connecticut Light and Power (CL&P), won approval from the Energy Management Board of
  Connecticut for a one million dollar utility retro-commissioning pilot program which begins
  with the assessment of building performance using EPAs energy performance rating system.

• Nicor Gas,  the largest natural gas distributor in northern Illinois, is using EPAs Guidelines
  for Energy Management as the framework for presenting energy management and demand-
  side incentives to its commercial and  industrial customers.

• Service and Product Providers (SPPs)  increased their activities. In 2004, the number of SPP
  partners grew to almost 800 (with the addition of 175 new partners), and they helped
  benchmark nearly 1,650 buildings. More than 80 of these buildings showed at least a
  10-point energy performance improvement during the year. SPPs also assisted in labeling
  more than 250 buildings in 2004.

• The California Public Employees' Retirement System (CalPERS) and the California State
  Teachers' Retirement System (CalSTRs) are using building energy performance benchmarking to
  improve the financial and environmental performance of their real estate holdings  through
  energy efficiency.

More ENERGY STAR qualifying products. More ENERGY STAR qualified products came
to market for the commercial sector. In 2004, EPA added  vending machines and updated
specifications for computer monitors and exit signs.
            CHANGE FORTHE
            BETTER WITH
            ENERGYSTAR
                                SYLVANIA
                                Danvers, Massachusetts
PARTNER OF THE YEAR 2004
                                As the number one lighting manufacturer in North
                                America, SYLVANIA is dedicated to leading the cause
                                for excellence in the manufacture and promotion of
energy-efficient products. In 2004 SYLVANIA increased its ENERGY STAR qualified product
line by 50 percent over 2003 by adding eight new ENERGY STAR qualified compact
fluorescent light (CFL) bulbs. SYLVANIA held seminars for the commercial and industrial
community at its Lightpoint educational facility and created the first ever "See Energy in a
New Light" seminar, which was designed to educate and inform lighting designers and
engineers about available lighting solutions that address new technology and federal
energy codes. These initiatives, coupled with installation of energy-efficient products  and
environmental programs at its facilities, demonstrate SYLVANIA's superior commitment to
energy efficiency and a cleaner environment. (Fora complete list of ENERGY STAR Award
Winners for 2004, see page 26.)
22
       CLIMATE   PROTECTION  PARTNERSHIPS  2004  ANNUAL  REPORT

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ENERGY STAR PROGRAM
                                'Protecting the environment through sound energy management is a
                                 major organizational priority for us at USAA Real Estate Company. As
                                 an ENERGY STAR partner, we are striving to achieve superior energy
                                performance in our organization. The ENERGY STAR program is good
                                 for our bottom line and good for the environment. "
                                                         —Edward B. Kelley, President and CEO, USAA Real Estate Company
In 2005, EPA will:
• Launch a new ENERGY STAR Challenge-^/,
  a Better World 10% at a. Time. In coordination with
  key associations and states, the Challenge calls on U.S.
  businesses and institutions to reduce energy use by
  10 percent or more. In partnership with these organizations,
  EPA will help build campaigns that encourage building
  owners to participate in the ENERGY STAR Challenge.

• Recognize those organizations that improve the energy
  performance of their building portfolios by 10, 20, 30 points
  or more as ENERGY STAR Leaders for demonstrating
  superior energy management and portfolio-wide improvements.

• Update and expand the energy performance rating system
  with the following modifications:

   • Facilitate the hosting of EPAs energy performance
     rating system by third parties, with the goal of making
     it easier for companies to benchmark their customers'
     facilities using their own energy tracking software;

   • Work with the Energy Information Administration to
     analyze the latest Commercial Buildings Energy
     Consumption Survey (CBECS) and state survey data to
     refine and update current system information; and

   • Expand to more building types  such as discount stores,
     fast food restaurants, and home centers in the near
     future.
                                                          Update and expand ENERGY STAR specifications for
                                                          products such as ice machines, commercial dishwashers, and
                                                          clothes washers.

                                                          Assess opportunities for bundling energy-efficient
                                                          commercial products into packages of recommended
                                                          products of interest to particular market segments  such as
                                                          commercial kitchens. This strategy will  be closely
                                                          coordinated with state and local energy efficiency program
                                                          sponsors with the goal of developing an effective program
                                                          model for increasing the efficiency of new restaurants.
            CHANGE FORTHE
            BETTER WITH
            IJJIJritfldflrt
                                FOOD LION, LLC
                                Salisbury, North Carolina
PARTNER OF THE YEAR 2004
                               Food Lion, LLC, one of the largest supermarket chains in the United States, operating more
                               than 1,200 stores in 11 states, continues to produce exceptional results for itself and the
                               environment through its energy management approach. Food Lion joined ENERGY STAR
in 1998, and over the past 4 years, with the full support of upper management, has reduced its energy usage by more than
25 percent or 1.6 trillion BTUs, exceeding even its most optimistic energy management goals. During the last 3 years alone,
the company has reduced carbon dioxide emissions by more than 940 million pounds and saved enough energy to power
285 stores. During 2004, Food Lion brought the number of stores earning the ENERGY STAR label to 200 and was recognized as
an ENERGY STAR Leader for achieving a portfolio-wide rating greater than 75. (For a complete list of ENERGY STAR Award
Winners for 2004, see page 26.)
INVESTING   IN  OUR   FUTURE
                                                                                                                23

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     ENERGY STAR PROGRAM
       "Toyota was founded
       on the principles of
       continuous
       improvement, or
       "kaizen," and
       respect for people...
       these principles
       shape the way we
       do business and
       provide the
       foundation for our
       environmental and
       energy policies.
       ENERGY STAR
       has contributed
       to the shaping of
       our energy
       management
       program by
       providing tools
       and resources,
       and with this
       combination has
       brought us success
       leading to where
       we are today."
                 —Dennis Cuneo,
              Senior Vice President,
                  Toyota Motor of
                  North America
ENERGY STAR in the Industrial Sector
Through ENERGY STAR, EPA helps manufacturers identify the best in energy performance
for their companies and assists them in developing strategic energy management programs.
These programs are built on the principles of organizational commitment and continuous
improvement. Strategic corporate energy management with sustained progress and
decisionmaking leads to a better environment and improved financial health for a company.

For some industrial sectors, EPA convenes Industry Focuses. An Industry Focus is a targeted
effort to improve energy efficiency within a specific manufacturing sector. Industry Focuses
encourage strategic corporate energy management, provide the tools needed to achieve and
measure continuous improvement, and create a supportive environment where ideas and
opportunities are shared. For each Focus, EPA prepares an energy guide,  which is an analysis
of the energy efficiency opportunities in an industry's manufacturing plants. To enable an
advanced level of energy management in a focus industry, EPA also develops plant energy
performance indicators (EPIs). An EPI scores a plants energy efficiency relative to that of the
entire industry and enables corporations to manage energy aggressively and set realistic
improvement i
In 2004, EPA initiated several Industry Focuses, enhanced the networking opportunities for
partners from all sectors, provided tools and resources geared toward energy strategies, and
supported all industries in their efforts to manage energy well.

During 2004, EPA  managed six Industry Focuses with interested
manufacturing sectors:
• Automobile/Motor Vehicle Manufacturing. At the request of the industry, EPA held the
  third annual focus to exchange energy efficiency practices for assembly plants and improve
  the efficiency of production processes. One hundred percent of the companies with U.S.-
  based assembly plants participated. EPA revised the draft EPI based on industry review
  comments and offered the energy guide to the entire industry. EPA also coordinated with the
  Alliance of Automobile Manufacturers to  identify opportunities for the industry to meet its
  Climate VISION commitments. To encourage greater information dissemination, EPA
  created a forum for this industry to take advantage of DOE's plant energy tools.

• Cement. EPA conducted the first cement industry focus. Participating companies represented
  40 percent of the clinker  (output from a cement kiln) production capacity in this sector.
  Taking industry review comments into  consideration, EPA produced a revised EPI for
  evaluating cement plant energy efficiency. Distribution of the cement energy guide continued
  during 2004. EPA coordinated with the Portland Cement Association to identify opportunities  for
  achieving the industry's Climate VISION commitments; participation in ENERGY STAR  is
  a prominent part of the industry's work plan. To encourage greater information dissemination,
  EPA created a forum for the cement industry to take advantage of DOE's plant energy tools.

• Corn Refining. The second annual corn refining focus was held in November 2004,
  with 96 percent of the U.S.-based corn refining capacity represented. EPA collaborated with
  the industry to test a draft corn refinery EPI and continued to disseminate this industry's
  energy guide.

24
       CLIMATE  PROTECTION  PARTNERSHIPS  2004  ANNUAL   REPORT

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ENERGY STAR PROGRAM
  Glass. EPA initiated work on an energy guide for the glass
  industry by consulting technology specialists, industry
  experts, and partners to gather resource material. Initial
  contacts were made with the key corporate energy managers
  in the leading U.S.-based glass companies to begin
  discussion of  a glass focus.

  Petroleum Refining. EPA continued the development of a
  petroleum focus initiated in late 2003. Meetings were held
  with the industry's corporate energy managers to discuss
  potential systems for benchmarking the energy efficiency of
  petroleum refineries in the United States. Using industry
  review comments, EPA revised the draft energy guide,
  outlining key opportunities for improving energy use in
  petroleum refineries.

  Pharmaceuticals. Working with the pharmaceutical
  industry, EPA improved the draft energy guide for its
  manufacturing plants. Significant discussions were held
  with industry leaders about the scope of an EPI for
  pharmaceutical manufacturing plants. They indicated an
  EPI would be a useful energy management tool and offered
  to assist in its development.
In 2005, EPA will:
Expand its work with specific industrial sectors, as follows:

• Convene an Industry Focus with the pharmaceutical
  industry and develop an initial EPI tool for industry testing.

• Conduct the fourth annual automobile/motor vehicle
  Industry Focus and release the first complete EPI for
  auto assembly plants.

• Organize the third annual cement Industry Focus and
  finalize the cement plant EPI.

• Hold the third annual corn refining Industry Focus and
  finalize the corn refining EPI.

• Initiate meetings with the glass industry to plan for an EPI
  and first focus meeting.

• Evaluate an existing petroleum refinery benchmarking
  system to determine whether data of similar quality and
  value to the ENERGY STAR EPI are produced.

• Convene a water and wastewater Industry Focus.

• Increase partner networking opportunities and participation
  by holding a biannual in-person networking meeting.

• Improve the participation of public sector organizations in
  networking opportunities.

• Produce a guidebook for development of energy teams based
  on the ENERGY STAR Guidelines for Energy Management.
                                "For California Portland Cement, protecting the environment through
                                 sound energy management is a major priority. As an ENERGY STAR
                                 partner, we value superior energy performance in our organization.
                                 We have found that participating in ENERGY STAR just makes good
                                 business sense."
                                                                 —Jim Repman, CEO, California Portland Cement Company
INVESTING  IN  OUR  FUTURE
                                                                                                                   25

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      ENERGY STAR 2004 AWARD WINNERS
      ENERGY STAR
      CORPORATE COMMITMENT
      New York State Energy Research
      and Development Authority
      Albany, NY
      SUSTAINED EXCELLENCE
      3M
      St Paul, MN
      Eastman Kodak Company
      Rochester, NY
      Ence Homes
      St George, UT
      Food Lion, LLC
      Salisbury, NC
      Nevada ENERGY STAR Partners
      Las Vegas, NV
      Pardee Homes
      Los Angeles, CA
      Servidyne Systems, LLC
      Atlanta, GA
      USAA Real Estate Company
      San Antonio, TX
      PARTNER OF THE YEAR
      RETAILER
      Lowe's Companies, Inc.
      Mooresville, NC
LEADERSHIP IN ENERGY
MANAGEMENT
California Portland Cement
  Company
Glendora, CA
Colorado Springs School District 11
Colorado Springs, CO
Giant Eagle, Inc.
Pittsburgh, PA
Marriott International, Inc.
Washington, DC
New York-Presbyterian Hospital
New York, NY
The Saunders Hotel Group
Boston, MA
Toyota Motor Manufacturing North
  America, Inc.
Erlanger, KY
Transwestern Commercial Services
Houston, TX


EXCELLENCE IN ENERGY
SERVICES
Avista Advantage
Spokane, WA
NSTAR Electric
Boston, MA


EXCELLENCE IN HOME
IMPROVEMENT
Austin Energy
Austin, TX
Wisconsin Focus on Energy
Madison, Wl
PARTNER OF THE YEAR
PRODUCT MANUFACTURERS
Canon U.S.A., Inc.
Lake Success, NY
GE Consumer and
  Industrial - Appliances
Louisville, KY
Gorell Enterprises, Inc.
Indiana, PA
Lennox Industries Inc.
Richardson, TX
Sea Gull Lighting Products, Inc.
Riverside, NJ
SYLVANIA
Danvers, MA
Whirlpool Corporation
Benton Harbor, Ml


NATIONAL PRODUCT
CAMPAIGNS
GE Consumer and
  Industrial - Lighting
Louisville, KY
Maytag Corporation
Newton, I A
Wisconsin Focus on Energy
Madison,  Wl


EXCELLENCE IN APPLIANCE
RETAILING
Sears, Roebuck and Co.
Hoffman Estates, IL


EXCELLENCE IN PRODUCT
LABELING
Panasonic
Secaucus, NJ


RETAIL COMMITMENT
AWARD
The Home Depot
Atlanta, GA
PARTNER OF THE YEAR
NEW HOMES
Astoria Homes
Las Vegas, NV
Cambridge Homes
Altamonte Springs, FL
D.R. Horton, Inc. - Sacramento
  Division
Fort Worth, TX
David Powers Homes
Houston, TX
Energy Sense
Houston, TX
Guaranteed Watt Saver Systems-
  West, Inc.
Oklahoma City, OK
Veridian Homes
Madison,  Wl


LEADERSHIP IN ENERGY
EFFICIENCY
California  Investor-Owned Utility
  Companies:
   Pacific Gas & Electric Company
   San Francisco, CA
   San Diego Gas & Electric
   San Diego, CA
   Southern California Edison
     Company
   Rosemead, CA
   Southern California Gas
     Company
   Los Angeles, CA
CenterPoint Energy
Houston, TX
Governor Robert L Ehrlich, Jr. and
  the  Maryland Energy
  Administration
Annapolis, MD
MidAmerican Energy Company
Des Moines, IA
New Jersey Board of Public Utilities,
  Office of Clean Energy
Newark, NJ
Northeast ENERGY STAR Lighting
  and Appliance Initiative
Lexington, MA
TXU Electric Delivery
Dallas, TX
Wisconsin Focus on Energy
Madison,  Wl
                                      "Sears not only sustained its commitment to energy efficiency in 2004,
                                       but raised the standard as well.  We worked hard on multiple fronts
                                       to bring ENERGY STAR appliances to a broader cross section of
                                       Americans, and we're very proud of the fact that no other retailer sells
                                       more ENERGY STAR appliances than Sears."
                                                                               —Tina Settecase, Vice President and General Manager of
                                                                                           Home Appliances, Sears, Roebuck and Co.
26
        CLIMATE   PROTECTION  PARTNERSHIPS   2004   ANNUAL   REPORT

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CLIMATE LEADERS PROGRAM
CLIMATE LEADERS

EPA launched Climate Leaders in February 2002 to challenge
individual companies to develop long-term comprehensive
climate change strategies. Companies implement their
strategies by setting an aggressive greenhouse gas emissions
reduction target and reporting on progress through submitting
annual inventory data to EPA. By reporting inventory data to
EPA, partners create a lasting record of their accomplishments
and are able to identify themselves as corporate environmental
leaders. Companies also develop a corporate-wide Inventory
Management Plan, which institutionalizes best practices in
measuring and reporting greenhouse gas emissions. In these
ways, corporate partners gain a better understanding of the
risks and opportunities associated with global climate change.

In 2004, Climate Leaders:
• Welcomed 14 new corporate partners for a total of
  66 partners.

• Announced 7 additional corporate greenhouse gas emissions
  reduction targets. Through 2004, 27 Climate Leaders
  partners have publicly stated greenhouse gas targets.

• Placed a public service announcement (PSA) in six national
  publications to recognize the environmental leadership of
  Climate Leaders partners.

• Published four cross-sector and one sector-specific
  greenhouse gas inventory core module guidance documents.
                   In 2005, EPA will:
                   • Attract 20 additional corporate partners.

                   • Announce 20 new Climate Leaders corporate greenhouse
                     gas emissions reduction targets.

                   • Publish the first edition of Climate Leaders Design Principles.

                   • Develop a new Climate Leaders Program Guide and various
                     sector fact sheets.

                   • Continue to recognize Climate Leaders through PSAs in
                     national publications.

                   • In collaboration with partners, begin to develop inventory
                     guidance for projects addressing offsets of greenhouse gas
                     emissions.
  PARTNER GREENHOUSE GAS (GHG) REDUCTION GOALS ANNOUNCED IN 2004
  The company targets announced through 2004 will prevent an average of 7.5 MMTCE per year above projected business-
  as-usual baselines. These reductions are equivalent to the annual emissions from 5 million vehicles.
   • Ball Corporation pledged to
    reduce U.S. GHG emissions by
    16 percent per production index
    from 2002 to 2012.

   • Baxter International pledged to
    reduce U.S. GHG emissions by
    16 percent per unit of production
    value from 2000 to 2005.
• The Collins Companies pledged to
  reduce total U.S. GHG emissions
  by 18 percent from 2000 to 2010.

• First Environment, Inc. pledged to
  achieve net zero U.S. GHG
  emissions by 2008.

• GE Transportation pledged to
  reduce global GHG emissions by
  25 percent per dollar of revenue
  from 2003 to 2008.
• Hasbro, Inc. pledged to reduce
  total U.S. GHG emissions by
  30 percent from 2000 to 2007.

• Roche Group U.S. Affiliates
  pledged to reduce total U.S. GHG
  emissions by 10 percent from
  2001 to 2008.
INVESTING  IN  OUR  FUTURE
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     CLEAN ENERGY PROGRAMS
       2004 ENERGY STAR
       CHP AWARD AND
       EPA CHP
       CERTIFICATES OF
       RECOGNITION
       2004 ENERGY STAR
       CHP Award winners
       California Institute of
        Technology
       Pasadena, CA
       LaFarge North America/
        Trigen-Cinergy
        Solutions of Silver
        Grove
       Silver Grove, KY

       2004 EPA CHP
       Certificates of
       Recognition winners
       Borden Chemical
       South Glen Falls, NY
       Greater Rochester
        International Airport
       Rochester, NY
       Johnson & Johnson
       LaJolla, CA
       Yale University
       New Haven, CT
       New York Power
        Authority
       Brooklyn, NY (2)
       Staten Island, NY
       Bronx, NY
CLEAN ENERGY PROGRAMS

Combined Heat and Power Partnership

In October  2001, EPA introduced the Combined Heat and Power (CHP) Partnership as
part of the President's National Energy Policy. CHP projects offer tremendous potential for
pollution prevention by using the waste heat that is produced in many industrial processes and
as a by-product of electricity generation. CHP systems provide many benefits, including cost
savings, enhanced reliability of the electric system, and local economic development.
Compared with conventional separate heat and power, CHP projects are highly efficient—
often reaching 75 percent efficiencies and higher—and can be installed in a variety of settings,
including large industrial plants, college campuses, hospitals, hotels,  and commercial buildings.
EPA recognizes the most efficient projects  each year through the ENERGY STAR CHP Award.

To maximize the use of cost-effective, efficient CHP, the partnership works with the CHP
industry; state and local governments; commercial,  institutional, and industrial energy users;
and other organizations to facilitate project development and to improve the markets  for
combined heat and power. EPA provides education, outreach, technical assistance for  candidate
sites, and public recognition for exceptional CHP projects.

In 2004, the CHP Partnership:
• Grew to 145 partners and facilitated 32 new CHP projects, totaling  1,260 MWe of new
  CHP capacity.

• Co-sponsored CHP workshops in New York, Iowa, Tennessee, Georgia,  Colorado, Texas,
  and Massachusetts  to increase the level of knowledge about CHP among energy users, to
  recognize  highly efficient projects, and to share case studies of CHP Partnership assistance.

• Provided public recognition to eight projects that demonstrated high operating efficiency by
  presenting them with ENERGY STAR CHP Awards or EPA CHP Certificates of Recognition.

• Expanded project facilitation services to provide tailored technical  and informational
  assistance to address issues that arise during different stages of project development.

• Continued strategic market development efforts in the ethanol industry  by producing an
  industry-specific fact sheet, sponsoring workshops in Iowa and Wisconsin, and engaging in
  direct outreach to ethanol plant owners and their design engineers.

• Released Output-Based Regulation: A Handbook for Air Regulators to educate air regulators on
  innovative ways to  recognize the efficiency benefits of CHP.

In 2005, EPA will:
• Assist partners with more than 30 new projects, facilitating the development of over
  800 MWe of new CHP capacity.

• Produce and publicize clean energy state policy guidelines focusing on policies affecting
  CHP and clean distributed generation.

• Continue to educate state air regulators on the methods  and benefits of  creating output-based
  environmental regulations.

• Co-sponsor CHP outreach events in multiple states to further inform potential CHP users
  about its benefits.

• Continue strategic  market development activities  with the ethanol  industry and initiate new
  strategic market efforts in the wastewater treatment sector and in hotels  and casinos.

• Revise and expand  the CHP Partnership Web  site to include a CHP  procurement guide,
  a guide to the CHP project development process for energy users,  and a guide to
  funding resources.
28
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CLEAN ENERGY PROGRAMS
                                 'Dairyland and our members have worked hard to advance green
                                 power in our cooperative system, and we are happy to be a leader in
                                   Such a beneficial energy technology,"
                                                          —John McWilliams, Resource Planner, Dairyland Power Cooperative
Green Power Partnership

EPA launched the Green Power Partnership in 2001 in
response to a recommendation in the President's National
Energy Policy. The partnership's goal is to lower the cost of
renewable energy by enlisting large electricity purchasers to
buy a percentage of their power from green power sources.
EPA also works to increase green power's value by offering
public recognition to leading green power purchasers. As
increasing numbers of large electricity customers demand
green power,  electricity providers will respond by investing in
new renewable energy capacity to meet this growing demand.
EPA supports the development of green power markets in
                   several ways, such as providing emissions benefits information,
                   recognizing leading purchasers through annual green power
                   awards, and supporting the development of third-party
                   certification so consumers can be confident that they are
                   getting what they pay for.

                   In 2004, renewable energy purchasing grew among major
                   companies, universities, government agencies, and other
                   organizations as a strategy for demonstrating environmental
                   leadership. The Green Power Partnership welcomed 313 new
                   partners in 2004. EPA provided technical assistance to
                   partners, including comparison of various green power
                   products and information on strategies for maximizing  the
  2004 GREEN POWER LEADERSHIP AWARDS
   Partner of the Year
   Clif Bar, Inc.
   Berkeley, CA

   Montgomery County, MD
   Rockville, MD

   Staples, Inc.
   Framingham, MA

   U.S. General Services
    Administration,
    Region 2
   New York, NY

   WhiteWave Foods
   Boulder, CO
Green Power Purchasing
Alterra Coffee Roasters
Milwaukee, Wl

College of the Atlantic
Bar Harbor, ME

Edwards Air Force Base
Edwards AFB, CA

Interface, Inc.
Atlanta, GA

Johnson & Johnson
New Brunswick, NJ

Lundberg Family Farms
Richvale, CA

New York State Municipal Wind
 Buyers Group
Conklin, NY
Salt Lake City
Salt Lake City, UT

Whole Foods Market
Austin, TX
On-site Generation

California State University at
 Hay ward
Hayward, CA

City and County of San Francisco,
 Moscone Convention Center
San Francisco, CA

Harbec Plastics, Inc.
Ontario, NY

Mauna Lani Resort
Kohala Coast, HI

Rodney Strong Vineyards
Healdsburg, CA
INVESTING  IN   OUR  FUTURE
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     CLEAN ENERGY PROGRAMS
                                    benefit of a green power purchase. EPA also publicly recognized exceptional partners through
                                    its participation in local events, press releases, speaking engagements, the Green Power
                                    Leadership Club, and national Green Power Awards.

                                    In 2004, the Green Power Partnership:
                                    • Welcomed an additional 313 partners for a total of 549 organizations that have made a
                                      combined commitment to purchase more than 2 billion kWh of green power annually,
                                      including 1.6 billion kWh from new renewable energy resources.

                                    • Created resources for partner recognition and technical assistance, including a Web listing of
                                      the top 25 green power purchasers and a comprehensive Guide to Purchasing Green Power.

                                    • Provided recognition to leading green power purchasers through local press events and the
                                      national Green Power Leadership Awards.

                                    • Debuted an updated Web site that offers the public and partners more information about
                                      green power, purchasing guidance, and more.

                                    In 2005, EPA will:
                                    • Engage 300 new partners to purchase green power, bringing the total to more than 800.

                                    • Assist new and existing partners in purchasing more than 2.5 million MWh of green power
                                      annually.

                                    • Encourage 100 current partners to increase their purchases of green power.

                                    • Create new resources for partner recognition and technical assistance, including fact sheets
                                      designed to appeal to specific business sectors.

                                    • Expand public recognition of outstanding partners by offering speaking roles at established
                                      business sector conferences alongside EPA staff.
30
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STATE AND LOCAL PARTNERSHIP PROGRAMS
STATE AND LOCAL PARTNERSHIP

PROGRAMS

Since 1992, EPA's State and Local Program has been helping
state and local governments maximize the environmental and
economic benefits of their clean energy policies. As state
and local needs have evolved, so have EPA's services and
partnerships. States have developed policies and programs that
deliver low-cost, reliable clean energy. These policies reduce
energy costs, improve efficiency, lower greenhouse gas
emissions, improve air quality and public health, and promote
economic development. Many state governments have made
clean energy initiatives a priority and see opportunities to
align clean energy actions with other objectives.

EPA is encouraging state and local government collaborative
approaches for developing cost-effective clean energy policies
due to the multitude of benefits to the environment, their
economies, and quality of life. The program has developed an
extensive network of state and local officials and a rich suite of
tools and resources for aligning environmental objectives with
their economic, energy, and public health goals. These include
analytic tools and guidance documents to assess the impacts of
policies on energy, the economy, public health, and the
environment; direct technical assistance on specific policies
and best practices; and forums and workshops to foster
information exchange among state and local officials.
In 2004, the State and Local Program:
• Designed the Clean Energy-Environment State Partnership
  Program, a new voluntary initiative that reflects the needs of
  state officials. This program encourages states to develop
  and implement comprehensive clean energy strategies that
  will help fulfill their clean energy and environmental goals
  and lead to public health and economic benefits.

• Developed new guidance documents on incorporating
  energy efficiency and renewable energy (EEPvE) into air
  quality planning, helped states incorporate EEPvE measures
  into their local air pollution control plans, and facilitated
  the inclusion of supplemental environmental projects in
  state environmental enforcement cases. EPA worked with
  four states and five communities to estimate the air quality
  benefits of EERE measures and incorporate the measures
  into their State Implementation Plans  (SIPs).

• Provided two states with analytic support to help estimate
  the macroeconomic impact of energy efficiency and
  renewable energy policies. The states discovered that they
  could achieve significant reductions in fossil fuel energy use
  and emissions while promoting EEPvE, creating jobs, and
  saving money.
                                  EPA's Clean Energy-Environment State Partnership Program is
                                  providing tools and resources to help a Connecticut stakeholder
                                  group evaluate the economic, environmental, and public health
                                  benefits of several key clean energy recommendations. Through it's
                                  collaboration with EPA, the state is now better positioned to move
                                  from policy analysis to implementation."
                                                              —Chris James, Director of the Planning and Standards Division,
                                                                      Connecticut Department of Environmental Protection
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     STATE AND LOCAL PARTNERSHIP PROGRAMS
                                   • Launched a new heat island Web site that describes urban heat islands and their energy, air
                                     quality, and public health impacts. It provides communities and building owners with steps to
                                     reduce summertime temperatures. Estimates of community-level cooling energy savings from
                                     heat island reduction strategies range from 10 to 25 percent.

                                   • Supported the Puget Sound Clean Air Agency stakeholder process involving 27 organizations,
                                     which resulted in a clean energy action plan. The plan includes recommendations for nine
                                     clean energy actions that will reduce greenhouse gas emissions.

                                   In 2005, EPA will:
                                   • Launch the new State Clean Energy-Environment Partnership Program, designed to help
                                     states adopt clean energy policies and deploy programs that will reduce greenhouse gas
                                     emissions, save energy, promote reliable and affordable electricity generation, and increase
                                     economic development in the states.

                                   • Help up to 15 states develop Clean Energy-Environment Action Plans.

                                   • Release the Clean Energy and Environment Guide to Action that will help states take advantage
                                     of the environmental and economic benefits that clean energy offers.

                                   • Publish a heat island guidebook that will provide easy-to-understand technical information on
                                     temperature reducing measures—in particular, cool roofing and strategic tree planting—and
                                     guidance on implementing heat island mitigation projects and programs.

                                   • Release the Co-Benefits Risk Assessment model, a tool that generates rough estimates of the
                                     public health effects associated with changes in air pollution levels at the state and local levels.
                                     This tool will enable officials to compare pollution scenarios associated with different policies
                                     and to incorporate human health effects into their decisions.

                                   • Continue to provide state and local officials and their national associations with technical
                                     assistance, tools, and outreach to promote the environmental, public health, energy,  and
                                     economic benefits of reducing energy use. Provide six or more states with hands-on assistance
                                     to facilitate the progress of clean energy policies and programs.
                                   "Ohio is committed to promoting the efficient use of energy to achieve
                                    a broad range of public policy goals. The EPA Clean Energy-Environment
                                    State Partnership Program is helping us realize our potential by
                                    identifying and analyzing opportunities to advance clean energy that
                                    are cost effective, help enhance economic development, and protect
                                    public health and the environment."
                                                                                 —Sara Ward, Chief, Office of Energy Efficiency,
                                                                                          Ohio Department of Development
32
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METHANE PROGRAMS
METHANE PROGRAMS

Methane's contribution to total U.S. greenhouse gas emissions
is second only to that of carbon dioxide. Each ton of methane
emitted is over 20 times more effective at trapping heat in the
atmosphere than one ton of CO2. At the same time, methane,
the major component of natural gas, is also a valuable source
of energy.

U.S. industries along with state and local governments
collaborate with EPA in several voluntary partnerships to
encourage the profitable collection and use of methane that
would otherwise 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—to provide sound technical, economic,  and
regulatory information  on emissions reduction technologies
and practices, as well as tools to help implement methane
reduction opportunities. Partners profit from these programs
by enhancing their operational efficiency and competitive
advantage. EPA also provides information  and tools to the
agricultural community to  encourage methane reductions.

In 2004,  these voluntary partnerships, in conjunction with a
regulatory program to limit air emissions from the nation's
largest landfills, kept national methane emissions to well
below 1990 levels, and  they are projected to remain below
1990 levels through 2012 (see Figure 6).
Figure B.
Partner actions are projected to maintain methane
emissions below 1990 levels through 2012
   180
     '90        '95

      YEARS 1990-2012
Source: EPA Climate Protection Partnerships Divisit
                                  'Curtailing methane releases would take the nations of the world a
                                  long way toward slowing the growth of greenhouse gases, and in the
                                  view of some scientists, stabilize their growth in the world."
                                                                       —Red Cavaney, CEO, American Petroleum Institute
                                                                     as quoted in The Oil and Gas Journal, February 21, 2005
INVESTING  IN  OUR   FUTURE
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     METHANE PROGRAMS
            LANDFILL METHANE
            OUTREACH PROGRAM
Landfill Methane Outreach Program

Landfills are the largest source of U.S. human-related (anthropogenic) methane emissions.
Capture and use of landfill gas (LFG) 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 country and overseas to capture and
use their landfill gas emissions as a renewable energy source. Together with landfill owners, state
energy and environmental agencies, energy suppliers, industry, communities, and other
stakeholders, LMOP lowers the barriers to landfill gas energy (LFGE) project development.

Since the program's launch in December 1994, LMOP has assisted with 279 projects and
reduced methane emissions from landfills by approximately 23 MMTCE. In addition, the total
number of landfill gas energy projects has grown to nearly 380. In 2004 alone, LMOP assisted
all 33 LFGE projects that became operational, resulting in a reduction of 4.4 MMTCE.

LMOP focuses its outreach efforts on the 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. These tools include feasibility
analyses, software for evaluating project economics, profiles of hundreds of candidate landfills
across the country, a project development handbook, and energy end-user analyses.

In 2004, LMOP:
• Assisted in the development of 26 new landfill gas energy projects and 7 project expansions,
  with more than 30 additional projects under construction and expected online soon.

• Welcomed 53 new partners, increasing participation by 14 percent and bringing the total
  number of LMOP partners to 424.

• Collaborated with the Department of Energy-Atlanta and state energy offices in Florida,
  Mississippi, and North Carolina to deliver three landfill gas energy workshops in the
  Southeast, reaching more than 400 project stakeholders.

• Implemented a corporate and federal end-user  market strategy, providing landfill gas energy
  opportunities to more than 20 U.S. corporations, representing over 275 manufacturing
  facilities nationwide.
                                                              In 2005, EPA will:
                                                              • Assist in the development of 33 new landfill gas energy projects.

                                                              • Release new and updated resources to advance project
                                                                development, including a streamlined version of LMOP's LFG
                                                                project evaluation tool (LFGcost) and the third edition of
                                                                Funding Landfill Gas Projects: A Guide to State, Federal, and
                                                                Foundation Resources.

                                                              • Host the 9th Annual LMOP Conference and Project Expo
                                                                and state and regional workshops to present the benefits of
                                                                landfill gas energy, discuss project development activity and
                                                                opportunities, and address issues affecting landfill gas projects.
34
        CLIMATE  PROTECTION  PARTNERSHIPS  2004  ANNUAL  REPORT

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LMOP 2004 AWARD WINNERS
  PROJECT OF THE YEAR — LINKING
  ATLANTIC WASTE DISPOSAL LANDFILL TO
  HONEYWELL
  In 2002, Honeywell Nylon along with LMOP Industry
  Partners Enerdyne Power Systems, Inc. and Waste
  Management Inc. (WMI) collaborated to construct a
  23-mile landfill gas pipeline—the longest in the United
  States—to transport medium-BTU LFG from WMI Atlantic
  Waste Disposal Landfill in Waverly, Virginia, to the
  Honeywell Nylon plant in Hopewell, Virginia. When the
  pipeline was completed in January 2004, it began reducing
  the site's demand for natural gas fuel by 15 percent.
  The project links one of the largest landfills east of the
  Mississippi River with the largest natural gas consumer
  east of the Mississippi River. Built to accommodate a LFG
  flow of more than 14,000 standard cubic feet per minute
  (scfm), the pipeline required the approval of three
  municipalities and seven agencies.
    "The reduction in CO2 air emissions
     over the life of the landfill, for
     example, is equivalent to planting
     5,544 square miles of trees and saving
     1.2 billion gallons of oil."
                    —Keith Togna, Site Energy Leader,
                          Honeywell Hopewell Plant
LMOP ENERGY PARTNER OF THE YEAR
(DIRECT LFG END USER) — NUCOR
CORPORATION

Nucor Corporation, the largest steel producer
and recycler in the United States, purchases approxi-
mately 650 scfm of recovered landfill gas collected by
LMOP Industry Partner Granger Energy, LLC, from the
Morgan County Regional Landfill, an LMOP Community
Partner, in Alabama. The landfill replaces about 10 to 15
percent of Nucor's natural gas consumption needs. To
capitalize on this cost-effective fuel source, the LFG is
transported to a mixing station located at Nucor Steel
Decatur's facility, where it is mixed with natural gas prior
to fueling the company's tunnel furnaces. This innovative
application is relatively new and used in only  one other
LFGE project.
LMOP ENERGY PARTNER OF THE YEAR
(ELECTRICITY PROJECT) — DAIRYLAND
POWER COOPERATIVE

Today, traditional power production is cheap and mostly
generated from fossil fuels. One energy cooperative is
breaking new ground by adding renewable energy to its
power portfolio. Dairyland Power Cooperative and Eau
Claire Energy Cooperative teamed with other LMOP
Partners, Ameresco Energy Services, Onyx Waste
Services, and Waukesha Engines to develop the Onyx
Seven Mile Creek LFGE project. This 3-MW project is one
of the cornerstones of Dairyland's many renewable
projects, with more LFGE projects expected this year and
in coming years. Leading by example, Dairyland is using
innovative thinking and partnership arrangements to
overcome barriers to renewable energy project
development.
INVESTING  IN  OUR  FUTURE
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     LMOP 2004 AWARD WINNERS
       LMOP INDUSTRY PARTNER OF THE
       YEAR — AMERESCO, INC.

       Having been the 2003 LMOP Industry Partner of the Year,
       Ameresco's 2004 project accomplishments, emissions
       reductions, and groundwork for future projects are doubly
       impressive and worthy of repeat recognition. The
       company made significant progress in 2004 by bringing
       four new LFGE projects online quickly and cost-effectively,
       without tax credits, all while improving the environment
       and reducing greenhouse gas emissions. In less than
       4 years and with few financial incentives, Ameresco has
       developed eight LFGE projects representing 30 MW, with
       another 50 MW expected online in 2005.
       COMMUNITY PARTNER OF THE YEAR —
       FAUQUIER COUNTY, VIRGINIA, LANDFILL
       GAS PROJECT

       Given its small size of approximately 1 million tons of
       waste in place, the Fauquier County landfill would not
       attract a great deal of interest from traditional LFGE
       developers. However, LMOP Community Partner Fauquier
       County and project developers prove that even small
       projects can succeed. Developed by Commonwealth
       Green Energy and LMOP Energy Partner Pepco Energy
       Services as their first foray into renewable electricity from
       landfill gas, the LFGE facility is best described as a
       merchant power plant—no tax credits, no subsidies, and
       no grants. At its peak, a full year of output from the site is
       expected to generate 15,000 MWh of renewable electricity.
 STATE PARTNER OF THE YEAR —
 MISSISSIPPI DEPARTMENT OF
 ENVIRONMENTAL QUALITY

 Receiving an unprecedented five nominations from both
 public and private sector organizations in Mississippi, the
 Mississippi Department of Environmental Quality (MDEQ)
 is a force for advancing LFGE in the state. Under MDEQ's
 leadership, the Mississippi LFGE Task Force achieved the
 requirements of being an LMOP state partner in record
 time—establishing a task force, preparing a LFGE primer,
 and holding a LFGE workshop within 6 months of
 becoming a partner. Since that time, MDEQ has worked
 closely with LMOP staff, landfill owners, project
 developers, businesses, state agencies, state partners
 from  adjacent states, and utilities to advance project
 development in Mississippi. They truly understand the
 potential of landfill gas and are helping form public-private
 partnerships to establish LFGE projects across the state.
 The first LFGE project in Mississippi is in the final stages
 of construction, with many others under development.
"Fauquier County's gas-to-energy
 operation has been a wonderful addition at
 the Corral Farm Landfill by converting an
 environmental pollutant into a renewable
 energy source,  while simultaneously
 reducing both capital and operating costs.
 This project was only possible through
 EPA's Landfill Methane Outreach Program."
          —Mike Dorsey, Director of Environmental Services,
                            Fauquier County, Virginia
36
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METHANE PROGRAMS
EPA
Natural Gas STAR Program

                                 Natural Gas STAR is a
                                 voluntary partnership
                                 between EPA and the
                                 U.S. natural gas industry
                                 designed to overcome
                                 barriers to 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 2004, reducing methane
emissions from natural gas systems by 6.7 MMTCE in
2004 alone.

Natural Gas STAR has developed a range of tools and
resources designed to help corporate  partners implement best
management practices to reduce gas loss. These include an
implementation guide, a series of "Lessons Learned" studies,
technology transfer workshops, partner-to-partner information
exchanges, and more. 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 2004, Natural Gas STAR:
• Achieved 66 percent industry participation across all major
  sectors (production, processing, transmission, and
  distribution).

• Partnered with 12 new companies, bringing the total
  number of partners to 111.

• Conducted six technology transfer workshops covering all
  four sectors of the natural gas industry.

• Achieved 100 percent participation of the American
  Petroleum Institute member companies.

In 2005, EPA will:
• Work with the oil and gas industry to expand the Natural
  Gas STAR Program, specifically in the area of small-to-
  medium size natural gas  production companies.

• Conduct eight technology transfer workshops, including
  two Web/telephone based workshops to enable attendance
  by companies with limited travel budgets.

• Continue to aggressively work with existing partner
  companies to expand the methane emissions reduction
  projects within their companies.
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NATURAL GAS STAR 2004 AWARD WINNERS
  PRODUCTION PARTNER OF THE YEAR

                Shell Exploration and Production
                Company—Shell joined Natural Gas
                STAR in 1995 and has since reported
                cumulative methane emissions
  reductions of 11.5 billion cubic feet (Bcf). The new Gas
  STAR Implementation Manager, Greg Southworth, has
  been very active this year by helping co-sponsor the
  offshore producers workshop and is currently assisting
  Gas STAR with an upcoming offshore case study. Shell
  reported the greatest reductions for all production
  partners, 3.14 Bcf in 2003, providing detailed information
  on its emissions reduction projects in the Gulf of Mexico.
                                                      TRANSMISSION PARTNER OF THE YEAR
   GulfTerra
PROCESSING PARTNER OF THE YEAR

              GulfTerra Energy Partners L. P. (formerly
              El Paso Field Services)—This was
              GulfTerra's first year of reporting since
              joining the Program in 2000. The
              company submitted an impressive report,
which included the highest emissions reductions of any
processing partner for 2003 (165,370 Mcf) and a significant
amount of past emissions reductions. To date, GulfTerra
has achieved cumulative methane emissions reductions
totaling 2.3 Bcf and has implemented more than
10 partner reported opportunities (PROs).
                                                       Columbia Gas
                                                          Transmission
                                                          A NiSource Company
                                                       Columbia Gulf
                                                          Transmission
                                                           A NiSource Company
                          Columbia Gas Transmission
                          Company and Columbia
                          Gulf Transmission
                          Company (NiSource
                          Companies)—These
                          companies continue to be
                          top reporters in the
transmission sector. Columbia Gas reported the greatest
reductions in 2003 (3.9 Bcf) and has achieved the second
highest cumulative reductions of all transmission partners
(23 Bcf). Columbia Gulf reported the second highest
reductions for 2003 (1.1 Bcf) and has achieved the sixth
highest cumulative reductions in the transmission
sector (6.2 Bcf).
                                                        DISTRIBUTION PARTNER OF THE YEAR
                       NiSource Distribution
                       Operations—The 10 NiSource
distribution companies that have partnered with EPA
submitted annual reports that together represented
81 percent of the total emissions reductions reported by the
Gas STAR distribution sector for 2003. In the past
2 years, NiSource has been working hard to reinvigorate
these companies' Gas STAR activities, including quantifying
the emissions reduction projects being implemented by all
the companies. The NiSource distribution companies have
collectively reduced methane emissions by 10.4 Bcf since 1993.
                                                        NATURAL GAS STAR ROOKIE OF THE YEAR

                                                           A     -^          Devon  Energy Corporation—
                                                         [Jt[ I/I/J^    Since joining the program in July
                                                                            2003, Devon has been very active
                                                        and supportive of Gas STAR by holding a high-profile
                                                        signing ceremony, aiding in development of technical
                                                        documents, contributing to an article in the Gas STAR
                                                        Partner Update, and volunteering its Bridgeport Gas Plant
                                                        as a location for filming the new Gas STAR Program
                                                        video. Devon is implementing a significant number of
                                                        emissions reduction activities  and will submit its first
                                                        annual report next year.
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NATURAL GAS STAR 2004 AWARD WINNERS
   NATURAL GAS STAR CONTINUING EXCELLENCE AWARDS
        bp
              BP—BP continues to be a leader in the
O              production sector. The company and its
              Gas STAR Implementation Manager,
              Reid Smith, assisted the program with
              two Partner Reported Opportunity fact
              sheets this year, two articles for the
Partner Update, and a case study on offshore activities.
Mr. Smith was awarded Implementation Manager of the
Year in 2003, and the company was recognized as the
Production Partner of the Year in 2001, 2002, and 2003. BP
reported the second highest reductions for 2003 (2.7 Bcf),
which were primarily attributable to innovative PROs, and
can also claim the second highest cumulative reductions
(19 Bcf) of all  production partners.
  Kerr-McGee Oil & Gas Corporation—Kerr-McGee
                   continues to be a leader in the
                   production sector. The company
                   reported the third highest reductions
                   for 2003 (1.2 Bcf) and has achieved
  the seventh highest cumulative reductions (6.6 Bcf) of all
  production partners. The company was also recognized
  for its accomplishments in 2000 and 2003. Plus, Kerr-
  McGee consistently implements a wide variety of partner
  reported opportunities every year.
                                                       elpaso
                  El Paso Pipeline Group,
                  ANR Pipeline Company, Tennessee
                  Gas Pipeline, El Paso Natural Gas,
Southern Natural Gas, and Colorado Interstate Gas—
(all part of the El Paso Pipeline Group) were all in the top
10 in 2003 reductions, and together totaled 1.8 Bcf of
methane emissions reductions. The company's Gas STAR
Implementation Manager, John Cordaway, has been very
active in the Gas STAR Program by providing substantial
insight to various technical issues, contributing to Gas
STAR technical support documents, and presenting at
several workshops.
                                                                    Pioneer Natural Resources USA—
                                                                    Pioneer has been one of the most
                                                                    active processing partners since
                                                                    joining the program in 2000. The
                                                                    company has the third highest
                                                                    cumulative achievements for
                                                                    processing partners—having reduced
                                                    methane emissions by 2.1 Bcf—and has reported an
                                                    impressive 19 PROs. In 2002, Pioneer was recognized as
                                                    the Production Partner of the Year. This year the company
                                                    hosted a workshop, helped EPA develop an
                                                    implementation case study, and contributed to the
                                                    development of a number of technical documents.
 PIONEER
 NATURAL RESOURCES
   "Support from our CEO has been extremely important in making our
    Natural Gas STAR Program a success. From the beginning, it was
    clear that our participation was a point of pride for the company.
    Mr. Nichols' (Devon's Chairman and CEO) endorsement
    demonstrated to all employees, stakeholders, and the public that
    the Gas STAR Program was a top priority for the company."
           —David Templet, Manager of Environmental, Health & Safety, Devon Energy Corporation
INVESTING  IN  OUR  FUTURE
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     METHANE PROGRAMS
                                     Coalbed Methane Outreach Program

                                     The Coalbed Methane Outreach Program (CMOP) reduces methane emissions from
                                     underground coal mines by collaborating with large coal companies and small businesses—
                                     primarily independent natural gas project developers and equipment supply companies—to
                                     develop environmentally beneficial and economically successful coal mine methane (CMM)
                                     projects. Outreach efforts focus on providing high-quality, project-specific information. CMOP
                                     has achieved significant results through 2004.

                                     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 mine degasification systems. As  a
                                     result of this collaboration, the percentage of methane recovery grew to about 71 percent by
                                     2003. To eliminate the remaining methane emitted from degasification systems, CMOP is
                                     working with industry to use CMM in small-and large-scale power generation, for mine
                                     heating and coal drying, and for upgrading low-quality gas to pipeline specifications. Favorable
                                     economics also increase the viability of other end-use options for CMM such as vehicle fuel
                                     (liquified natural gas and compressed natural gas), manufacturing feedstocks, and use in
                                     fuel cells.

                                     Following the program's 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 83 percent of the remaining methane emissions from underground coal
                                     mines—about 77 Bcf of methane annually. CMOP is collaborating with industry and other
                                     federal agencies to demonstrate and deploy newly developed technologies that can reduce these
                                     emissions substantially over the next few years.

                                     Abandoned mines are also a source of methane emissions, accounting for about 10 percent of
                                     U.S. CMM emissions from underground mines. CMOP is now actively engaged in promoting
                                     reductions from this source. In the United States alone, 20 projects in 2004 captured and used
                                     methane from 30 abandoned mines.

                                     CMOP has developed a range of tools designed to overcome the 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
Table 4.
Methane Programs: Annual Goals and

TOTAL REDUCTIONS (MMTCE)
LMOP
Number of Projects
Annual Methane Reductions (MMTCE)
Natural Gas STAR
Industry Participation (% in program)
Annual Gas Savings (MMTCE)
CMOP
Annual Methane Reductions (MMTCE)

Achievements
2004 Goal
10.6

269
4.3

64%
4.5

1.8


2004
Achievement
12.9

279
4.4

66%
6.7

1.8


2005 Goal
12.6

289
4.5

66%
6.3

1.8
Source: EPA Climate Protection Partnerships Division
40
        CLIMATE  PROTECTION  PARTNERSHIPS   2004  ANNUAL   REPORT

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METHANE PROGRAMS
assistance programs. CMOP has collaborated with operators
of virtually every major U.S. underground coal mine that has
gassy conditions or that emits gases to apply these tools and
facilitate projects, which in 2004 alone achieved a reduction
of 1.8MMTCE.

In 2004, CMOP:
• Reduced methane emissions at 15 of the gassiest mines in
  the country, including the first recovery projects in the
  western United States, by providing high-quality, project-
  specific information to mine operators, project developers,
  and other stakeholders.

• In cooperation with CONSOL Energy and DOE,
  supported efforts to design, install and operate the first test-
  scale demonstration of ventilation air oxidation technology
  in the United States.

• Published the first summary report of abandoned mine
  methane emissions in the United States, including
  identification of approximately 400 gassy abandoned mines
  that may offer development potential.
                    In 2005, EPA will:
                    •  Launch a targeted outreach effort, working closely with the
                      mining industry in the western United States, to increase
                      mine methane capture and use in Colorado, New Mexico,
                      and Utah.

                    •  Conduct further analysis of abandoned mine methane
                      emissions to refine methodologies for estimating project-
                      specific emissions.

                    •  Initiate more detailed assessment of coal  mine methane
                      emissions from surface mines because reports indicate U.S.
                      mining companies are using horizontal boreholes to drain
                      methane from high walls in open caste mining and shallow
                      surface wells to drain methane in advance of surface mining.
  PROGRAM EVALUATION: MEASURING RESULTS IN THE METHANE PROGRAMS
  EPA relies on the application of sound and comprehensive practices to estimate the annual methane reductions from its
  programs. EPA gathers and carefully reviews partner data on all methane reduction activities implemented through the
  partnerships.
  Natural Gas STAR
  As a condition of partnership,
  program partners submit
  implementation plans to EPA
  describing the emissions reduction
  practices they plan to implement and
  evaluate. In addition, partners submit
  progress reports detailing specific
  emissions reduction activities and
  accomplishments each year.

  EPA does not attribute all reported
  emissions reductions to Natural Gas
  STAR. Partners may only include
  actions that were undertaken
  voluntarily, not those reductions
  attributable to compliance with
  existing regulations.

  Emissions reductions are estimated
  by the partners either from direct
  before-and-after measurements or by
  applying peer-reviewed emissions
  reduction factors. These estimates
  are reviewed by EPA and any
  identified issues are resolved.
Landfill Methane Outreach
EPA maintains a comprehensive
database of the operational data on
landfills and LFGE projects in the
United States. The data are updated
frequently based on information
submitted by industry, LMOP
outreach  efforts, and other sources.

Reductions of methane that result
from compliance with EPA's air
regulations are not included in the
program  estimates. In addition,
only the emissions reductions from
projects that meet the LMOP
assistance criteria are included in the
program  benefit estimates.

EPA uses emissions factors that
reflect the type of project. The factors
are based on research, discussions
with experts in the LFG industry, and
published references.
Coalbed Methane Outreach
Through cooperation with the U.S.
Mine Safety & Health Administration,
state oil and gas commissions, and
the mining companies themselves,
EPA collects mine-specific data
annually and estimates the total
methane emitted from the mines
and the quantity of gas recovered
and used.

EPA estimates 40 percent of coal
mine methane recovery is due to its
partnership activities. This factor was
calculated by estimating  the increase
in the amount  of methane capture
expected from CMOP activities
relative to the methane capture
expected from the Energy Policy Act
of 1992 (EPAct).
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     METHANE PROGRAMS
                                    Agriculture Based Programs

                                    Through outreach to agriculture-based organizations and livestock producers, 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 collaborate with the nation's swine and
                                    dairy producers to encourage development of waste management systems that generate farm
                                    revenues while reducing water and air pollution. Currently, there are 170 operating or planned
                                    systems in the United States.  EPA provides technical information and tools to aid in  the
                                    assessment and implementation of these projects.

                                    In 2004, EPA and USDA:
                                    •  Continued to expand methane-reducing technologies in the livestock sector to help ensure
                                      clean water and air and held extension events to market these opportunities. Such activities
                                      take place as part of the second year of Farm Bill funding under Section 9006.

                                    •  Assisted swine and cattle  producers in carrying out projects that produced nearly 400 million
                                      kWh/year of renewable energy from farms capturing methane. This energy is then  used by
                                      the farm and local community.

                                    •  Organized a national conference to provide environmental, program, market, state-of-the-art
                                      technical, and funding information on anaerobic digestion systems.

                                    In 2005, EPA and USDA will:
                                    •  Continue coordinating the  implementation of anaerobic digestion funding mechanisms
                                      under the 2002 Farm Bill.

                                    •  Collaborate with state energy programs across the country to facilitate the development of
                                      anaerobic digesters as renewable energy resources.

                                    •  Update the AgSTAR Handbook, and develop the second version of FarmWare to provide
                                      farmers with guidance and tools for evaluating and successfully applying proven anaerobic
                                      digestion technology.
42
        CLIMATE  PROTECTION  PARTNERSHIPS   2004  ANNUAL  REPORT

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HIGH GLOBAL WARMING POTENTIAL GAS PROGRAMS
HIGH GLOBAL WARMING POTENTIAL

GAS PROGRAMS
Public-private industry partnerships are substantially reducing
U.S. emissions of the high global warming potential (GWP)
gases 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), hydrofiuoro-
carbons (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 their emissions substantially below
1990 levels through the year 2012 (see Figure 7).

The Voluntary Aluminum Industrial
Partnership (VAIP)
The primary aluminum producers are collaborating with EPA
to reduce direct emissions of PFCs and CO2. The goal is to
reduce emissions where technically feasible and cost effective.
Since the partnership began in 1995,  participating industries
have had notable success in  characterizing the emissions from
their smelter operations and reducing overall emissions.

In support of the  President's Climate VISION (Voluntary
Innovative Sector Initiatives: Opportunities Now) initiative,
VAIP is committed to a direct carbon intensity reduction
target of 53 percent from 1990 levels by 2010. The goal
includes reductions in emissions of perfluoromethane (CF^)
and perfluoroethane (C2F6), which are inadvertent byproducts
of the smelting process, plus CO2 from the consumption of
the  carbon anode. As large energy consumers, the primary
producers also agreed to continue their efforts to reduce
indirect CO2 emissions through ongoing energy efficiency
improvements. The aluminum industry has made progress in
reducing greenhouse gas emissions for more than a decade,
and this new commitment equates to an additional direct
carbon intensity reduction of 25 percent beyond the 2000
achievement.

VAIP has reduced PFC emissions by more than 45 percent
and direct carbon emissions by more than 54 percent
compared to the industry's 1990 baseline. The Aluminum
Association will collaborate  with EPA in measuring progress
for the President's Climate VISION initiative based on data
collected from VAIP member companies and pledges to
support climate protection through efforts to increase
aluminum recycling and develop lightweight vehicles.
In 2004, the Voluntary Aluminum Industrial
Partnership:
• Completed a global survey of facility-specific emissions
  measurements and evaluated data to support updating the
  IPCC Inventory Guidance for primary aluminum.

• Remeasured PFC  emissions at a partner facility after
  advanced emissions control technologies were installed.
  This project quantified emissions reduction benefits of
  investments in currently available technical options.

• Evaluated 1990 and 2000 partner data to establish Climate
  VISION baseline  estimates.

HFC-23 Emission  Reduction Program
Industry is working with EPA to reduce emissions of the potent
greenhouse gas, HFC-23, 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 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 significantly  reduce the intensity of HFC-23 emissions
(the amount of HFC-23 emitted per kilogram of HCFC-22
manufactured). As a result of these efforts, emissions in 2004
were more than 6.4  MMTCE lower than they would have
been at the 1990 emission intensity. In 2004, 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.
Figure 7.
Partner actions can maintain voluntary program sector
emissions of high global warming potential gases at
or below 1990 levels through 2012
                                                               '90         '95

                                                                YEARS 1990-2012

                                                            Source: EPA Climate Protection Partnerships Di
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     HIGH GLOBAL WARMING POTENTIAL GAS  PROGRAMS
                                                       The PFC Reduction/Climate Partnership for the
                                                       Semiconductor Industry

                                                       Since its inception in 1996, this partnership has been a catalyst for
                                                       semiconductor companies in Europe, Japan, Korea, Taiwan, and the
                                                       United States to set the first global target for reducing greenhouse gas
                                                       emissions. 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. EPA's partners are currently
                                   installing advanced emission control technologies to further reduce PFC emissions.

                                   While the partnership's initial focus was on 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. Seeking to maintain
                                   a "level playing field" for the many multinational partner companies, the partnership
                                   encouraged other nations' governments to develop similar voluntary initiatives. Japan was
                                   the second country to establish a voluntary partnership following a 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 emissions reduction activities,
                                   the remaining major semiconductor producers including Europe, Korea, and Taiwan joined
                                   the effort soon thereafter.

                                   In April 1999, the World Semiconductor Council (WSC), whose members include the national
                                   semiconductor industry associations of Europe, Japan, Korea, Taiwan, and the United States,
                                   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
                                   emissions reduction target for an entire global industry. This type of aggressive goal setting
                                   reassures international governments, industry suppliers, and the public of the industry's
                                   commitment to protect the climate.

                                   In 2004, the PFC  Reduction/Climate Partnership for the Semiconductor
                                   Industry:
                                   • Reduced absolute PFC emissions 45 percent below 1999 levels while U.S. manufacturing
                                     increased by 20 percent over the same period. EPA's semiconductor industry partners are on
                                     track to meet their 2010 Climate VISION commitment.

                                   • Worked with global industry representatives at the International Semiconductor Environment
                                     Safety and Health (ISESH) conference to encourage China's rapidly emerging semiconductor
                                     manufacturing industry to participate with the WSC in controlling PFC emissions.

                                   • Facilitated the IPCC's kick-off meeting to begin revising methods for estimating fluorinated
                                     compound emissions from electronics manufacturing, including semiconductors, liquid
                                     crystal displays (LCDs), and photovoltaics.

                                   • Continued seeking opportunities for the closely related  technical fields of semiconductor and
                                     LCD (i.e., flat panel display) manufacturing to exchange information and expedite PFC
                                     emissions reductions.


                     DR. HIDEKI NISHIDA, CLIMATE PROTECTION AWARD WINNER
                     Hitachi Displays

                     In January 2004, the World LCD Industry Cooperation Committee (WLICC), representing the leading LCD
                     manufacturers from Japan, Korea, and Taiwan, announced its goal to reduce PFC emissions to 0.82 MMTCE
     by 2010—a 90 percent reduction from current emissions. Guided by EPA's model for voluntary industry cooperation. Dr.  Hideki
     Nishida of Hitachi Displays led the WLICC in making such a technically aggressive commitment. EPA awarded Dr. Nishida its
     2005 Climate Protection Award  in recognition of his global industry leadership and commitment to environmental protection.


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HIGH GLOBAL WARMING POTENTIAL GAS PROGRAMS
                  SF6 Emissions Reduction
                  Partnership for Electric
                  Power Systems

                  In 1999, EPA partnered with several
electric utilities to form a voluntary program to reduce sulfur
hexafiuoride (SF6) emissions. By reducing SF6 emissions,
partner companies have not only taken an active role in
addressing climate change, but have also seen financial savings
through reduced SF6 gas purchases. In addition, equipment
reliability has been improved as a result of more careful gas
measurement, better leak detection and repairs, and
equipment replacement.

The most potent and persistent industrial greenhouse gas,
SF6 is used primarily in high voltage circuit breakers and gas-
insulated substations by electric utilities as a gaseous dielectric.
The global warming potential of SF6 is 23,900  over a 100-
year time horizon; in other words, it is 23,900 times more
effective at trapping infrared radiation than an equivalent
amount of CO2. The average SF6 emissions rate for partner
companies in 2004 was just below 10 percent.

In 2004, the SF6 Emissions Reduction
Partnership for Electric Power Systems:
• Hosted  the Third  International Conference on SF6 and
  the Environment in Scottsdale, AZ. Co-sponsored with
  the International Magnesium Association, the National
  Electrical Manufacturers Association, the American Public
  Power Association, Arizona Public Service, the Australian
  Greenhouse Office, DOE, and the Electric Power Research
  Institute, the 2004  conference included a substation field trip to
  demonstrate the latest leak detection and repair technologies.

• Initiated a study on leak rates of new equipment. The first
  of its kind, this study will document refilling requirements
  for high-voltage equipment that has been installed for
  5 years or less. The study will help isolate equipment-related
  leaks from state-of-the-art power equipment versus personnel
  servicing and handling gas loss issues.

* Developed Benchmark Reports to help partners compare
  their emissions to  those of their electric utility peers.
  Partners received a customized summary report showing
  their goal and actual SF6 emissions reductions since signing
  the MOU plus partnership averages.
                   SF6 Emission Reduction
                   Partnership for the
                   Magnesium  Industry
Sh Emission Reduction ':":'::::"
Partnership fertile 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 hexafiuoride (SF6), a long-lived
and potent greenhouse gas. Launched in  1999, this
partnership to reduce emissions from magnesium production
and casting operations represents approximately 80 percent of
the U.S. magnesium industry. The partnership goal is to
eliminate SF6 emissions by year-end 2010.

In 2004, the SF6 Emission Reduction
Partnership for the Magnesium Industry:
• Reduced absolute SF6 emissions by 19 percent since EPA
  launched the program in  1999. 2004 was the fifth year in
  which EPA collected annual SF6 emissions reports from
  magnesium partners.

• Supported partner companies' efforts to evaluate available
  alternative melt protection technologies such as alternative
  cover gases AM-Cover™ (HFC-134a) and Novec™ 612
  (a fluorinated ketone). An initial EPA study has shown both
  gases are capable  of reducing greenhouse gas emissions by
  more than 99 percent compared to the traditional SFg-based
  protection system.

• Maintained U.S.  industry participation in the partnership,
  representing 100  percent of primary magnesium production
  and 80 percent of domestic casting and recycling capacity.
                                  Once we recognized SF6 as an asset, we were able to build an
                                  effective management strategy around it. The SF6 Emission
                                  Reduction Partnership helped us make this transition and provided
                                  us with tools to design an effective program"
                                                               —Alex Salinas, Technical Specialist, Southern California Edison
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     HIGH  GLOBAL WARMING POTENTIAL GAS PROGRAMS
                                   Mobile Air Conditioning Climate Protection Partnership

                                   Until 1994, air conditioning systems in most new vehicles used refrigerants that damaged the
                                   Ozone Layer and had a high global warming potential. Under the Montreal Protocol on
                                   Substances that Deplete the Ozone Layer, countries agreed to protect the ozone layer. As  a
                                   result, vehicle air conditioning systems worldwide were redesigned. Now, mobile air
                                   conditioning systems use a different refrigerant, HFC-134a. HFC-134a has no ozone depleting
                                   potential and only one-sixth the global warming potential of the former mobile air conditioning
                                   refrigerant, CFC-12. Nonetheless, with a global warming potential of 1,300, HFC-134a is still a
                                   strong greenhouse gas.

                                   In order to reduce the climate impacts of mobile air conditioning, the Society of Automotive
                                   Engineers (SAE), the Mobile Air Conditioning Society Worldwide,  and EPA formed a global
                                   voluntary partnership to promote improved air-conditioning systems and service. This
                                   partnership is composed of environmental authorities from Australia, Canada, Europe, and
                                   Japan; environmental and industry non-government organizations (NGOs); and global vehicle
                                   manufacturers and their suppliers. The partnership has four goals:

                                   • To promote cost-effective designs and improved service procedures to minimize emissions
                                     from HFC-134a systems.
      TABLE 5.
      High GWP Gas Programs: Annual Goals and Achievements
                                                             2004
                                           2004 Goal     Achievement   2005 Goal
       TOTAL REDUCTIONS (MMTCE)
9.7
               11.7
                             10.4
       VOLUNTARY ALUMINUM INDUSTRIAL
       PARTNERSHIP
       Industry Participation (% in program)
       Reductions (MMTCE)
98%
 2.2
98%
 2.2
98%
 2.6
       HFC-23 PARTNERSHIP
Industry Participation (% in program)
Reductions (MMTCE)1
100%
4.6
100%
6.4
100%
4.8
       OTHER STEWARDSHIP PROGRAMS
       Industry Participation (% in program)2       50%-100%       45%-100%      50%-100%
       Reductions (MMTCE)                       2.9             3.1            3.0
        These goals have been adjusted downward to reflect lower than expected HCFC-22 production and the closure of one of the
        four U. S. HCFC-22 plants. The industry a verage HFC-23 emission factor actually declined more than expected.
        Participation varies from 45% of net generating capacity for electric power systems to 100% for primary magnesium producers.
To cooperate on developing and
testing the next generation of
mobile air-conditioning systems
that satisfy customer requirements
and environmental, safety, cost,
and reliability concerns.

To communicate technical
progress to policymakers and
the public.

To document the current and
near-term opportunities for
improving the environmental
performance of mobile air-
conditioning system design,
operation, and maintenance.
                                     "Chicago White Metal (CWM) Casting joined EPA's SF6 Emission
                                      Reduction Partnership for the Magnesium Industry as a charter partner
                                      in 1999. Since then, our dedicated team has worked closely with EPA,
                                      industry suppliers, and other partner companies to track emissions and
                                      share information on reduction strategies. In 2004 alone, the process
                                      improvements implemented by CWM have reduced SF6 emissions by
                                      4,920 MTCE and saved our company $11,000."
                                                                          —Eric Treiber, President, Chicago White Metal Casting
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HIGH GLOBAL WARMING POTENTIAL GAS PROGRAMS
It is estimated that air conditioning system improvements will
add $35 to $50 to the cost of producing new vehicles with
payback in fuel savings within one or two years, and lifetime
savings of more than $400. When implemented as an
incremental efficiency improvement, this technology will save
3.7 billion gallons of fuel in the United States by 2025 and a
comparable amount in the rest of the world. The Mobile Air
Conditioning Partnership is developing a new strategy to
promote these environmental and product improvements.

In 2004, the Mobile Air Conditioning Climate
Protection Partnership:
• Announced the Improved Mobile Air Conditioning
 (I-MAC) 30/50 project to reduce air conditioning fuel
 consumption by at least 30 percent and cut refrigerant
 emissions by 50 percent.

In 2005, across the High GWP Gas Programs,
EPA will:
• Participate in the preparation of the 2006IPCCNational
 Greenhouse Gas Inventory Guidelines for Industrial Processes
 and Product Use.

• Develop a Web-based emissions reduction training module
 for primary aluminum facility managers and pot-room
                    operators. This module will increase awareness of greenhouse gas
                    emissions from aluminum smelting and identify technical
                    and operational opportunities to reduce them.

                    Complete the technical analysis phase of the new equipment
                    leak study for the SF6 Emission Reduction Partnership for
                    Electric Power Systems.

                    Conduct Web-cast training sessions for electric utilities and
                    vendors servicing the electric power sector. This training will
                    help SF6 partners reduce errors in reporting their annual SF6
                    emissions.

                    Conduct a follow-up study of alternative magnesium melt
                    protection technologies. The results of this study are expected to
                    help the partnership accelerate its phase-out of SF6 by 2010.

                    Continue implementing agreements to reduce greenhouse
                    gas intensity for the aluminum, magnesium, and
                    semiconductor sectors through the Presidents Climate
                    VISION initiative.

                    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.
   PROGRAM EVALUATION: MEASURING RESULTS IN THE HIGH GWP GAS PROGRAMS
   Annual high GWP gas reductions achieved by EPA's programs are estimated  using reliable data and established methods.
   Voluntary Aluminum Industry
   Partnership
   All VAIP partners agree to report
   aluminum production and anode
   effect frequency and duration in order
   to estimate annual PFC emissions.

   Reductions are calculated compared
   to a  business-as-usual baseline which
   uses the industry's 1990 emission
   rate. The reduction in the emission
   rate  is used to calculate the overall
   greenhouse gas emissions reductions
   from the program.

   The  industry began making
   significant efforts to reduce PFC
   emissions as a direct result of the
   program. All reductions achieved  by
   partners are assumed to result from
   the program.
HFC-23 Emission Reduction
Program

Program partners report HCFC-22
production and HFC-23 emissions
to a third party that aggregates the
estimates and submits the total
estimates for the previous year
to EPA.

Reductions are calculated compared
to a business-as-usual baseline which
uses the industry's 1990 emission
rate. The reduction in the emissions
rate is used to calculate the overall
greenhouse gas emissions reductions
from the program.

Subsequent to a series of meeting
with EPA, the industry began making
significant efforts to reduce HFC-23
emissions. All U.S. producers
participate in the program and all
reductions achieved by manufacturers
are assumed to result from the
program.
Environmental Stewardship
Program

Partners report emissions and
emissions reductions based on jointly
developed estimation methods and
reporting protocols. Data collection
methods are sector specific. Data are
submitted either directly to EPA or
through a third party.

Reductions are calculated compared
to business-as-usual  baselines based
on industry-wide or company-specific
emissions rates in a base year. The
reductions in emissions rates
are used to calculate the overall
greenhouse gas emissions reductions
from the program.

The reductions from  technologies
and process improvements
attributable to the  partnership are
counted, but those developed without
the partnership's assistance are not.
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     INTERNATIONAL CLIMATE PROTECTION AWARD WINNERS
                            In 1998, EPA established the Climate Protection Awards to recognize exceptional leadership,
                            personal dedication, and technical achievements in protecting the Earth's climate. In its first
                            eight years, 110 awards have been presented to individuals and organizations from 16
                            countries, including Australia, Belgium, Brazil, Canada, Chile, China, France, India, Italy, Japan,
                            Mexico, Netherlands, South Korea, Sweden, United Kingdom, and the United States. This year,
                            17 individuals and organizations earned the award by crafting international, national, state, and
                            local policies; reducing energy consumption; and inventing technologies that protect the climate.
        CLIMATE PROTECTION AWARD WINNERS

        CORPORATE/GOVERNMENT
        American Electric Power
        Columbus, Ohio

        City of Boulder
        Colorado

        The California Energy Commission
        Sacramento, California

        Cinergy Corp.
        Cincinnati, Ohio

        Connecticut Governor's  Steering Committee
        Connecticut
                                                      INDIVIDUALS
                                                      Mr. Sandeep Ganesh, Wmrock International
                                                      India
                                                      Ms. Sonia Hamel, Office of Commonwealth Development
                                                      Massachusetts
                                                      Dr. Hideki Nishida, Hitachi Displays
                                                      Mobara, Japan
                                                      ORGANIZATIONS/TEAMS
                                                      Improved Mobile Air Conditioning Organizing Team
                                                      USA
                                                              Tufts Climate Initiative
                                                              Massachusetts
Johnson Controls
Milwaukee, Wisconsin

3M
St. Paul, Minnesota

McDonald's, Coca-Cola, & Unilever Refrigerants
Naturally Partnership
UK and USA

Rhode Island Greenhouse Gas Stakeholders
Rhode Island

City of Syracuse
New York

United Technologies Corporation
Hartford, Connecticut

York International
York, Pennsylvania
48
       CLIMATE  PROTECTION  PARTNERSHIPS  2004  ANNUAL  REPORT

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BENEFITS OF VOLUNTARY PROGRAMS
Overall, the benefits from program partners' investments and
consumers' product purchases through the year 2004 can be
summarized as follows (also see Table ES-1):

• More than 790 million metric tons of greenhouse gas
  emissions are being avoided through 2014.

• Consumers and businesses have locked in investments in
  energy-efficient  technologies of $22 billion.

• Net of the investments in energy-efficient technologies,
  consumers and businesses are saving $ 115  billion
  cumulatively through 2014.

The benefits and how they are derived are described below for
three key climate partnership program areas: ENERGY STAR,
Methane Programs, and High GWP Gas Programs. These
descriptions build on the Program Evaluation summaries
included earlier in each of the three program sections.

ENERGY STAR. The estimated benefits from the ENERGY
STAR program reflect the stream of energy savings that will
persist  through 2014 due to technology investments and
product purchases made through the year 2004 by ENERGY
STAR partners and due to the effects of markets  already
transformed. The  persistence is calculated by maintaining the
energy savings achieved in 2004 through the year 2014. The
underlying assumption is that the lifetime of most building
improvements and product purchases is at least 10 years. For
those products with shorter lifetimes, such as computers, fax
machines, and audio equipment, "persistence"  means that
once consumers buy ENERGY STAR qualified products, they
are expected to replace them with ENERGY STAR qualified
products. The benefits that can be attributed to pre-existing
trends are subtracted out of the estimated ENERGY STAR
benefits presented in this 2004 Annual Report.

In addition, EPA estimates the net present value  (NPV) of
expenditures on energy-efficient technologies based on the
partners' or customers' cost of the energy-efficient equipment,
including  the cost of financing.10 For ENERGY STAR
qualified products, expenditures were taken as  the incremental
increase in cost, if any, of purchasing these products.  For
ENERGY STAR Building and Industrial Improvements,
expenditures include the capital costs of upgrading a building
to ENERGY STAR specifications. Finally, the NPV of the net
savings is the  difference between the NPV of energy bill
savings and the NPV of expenditures. It represents the net
value to partners and ENERGY STAR product consumers of
participating in the program.
The estimated benefits for the ENERGY STAR program from
1993 to 2014 are as follows:

Qualified Products and Homes
• Preventing 160 MMTCE in greenhouse gas emissions.

• Prompting investment of $5 billion in climate friendly
  technologies.

• Providing energy bill savings net of investment of
  $60 billion.

Building and Industrial Improvements
• Preventing 239 MMTCE in greenhouse gas emissions.

• Prompting investment of $13 billion in climate friendly
  technologies.

• Providing energy bill savings net of investment of
  $51 billion.

Methane Programs. The benefits for programs with a
small number of partners, such as Natural Gas STAR and
Landfill Methane, are calculated on a project-by-project basis
from the list of projects that the programs are known to have
affected. Energy bill savings include the revenue from the sale
of methane and/or the sale of electricity made from the
captured methane.  The expenditures include the capital costs
agreed to by partners to bring projects into compliance with
the Methane programs' specifications and any additional
operating costs engendered by program participation. Both
energy bill savings and technology expenditures have been
placed in net present value terms. These programs are estimated
to have the following benefits from 1993 through 2014:

• Preventing 190 MMTCE in greenhouse gas emissions.

• Prompting about $5 billion in investment in climate
  friendly technologies.

• Providing energy bill savings net of investment of $4 billion.

High  GWP GaS Programs. The benefits for these programs
are  derived from direct partner reports of the greenhouse gas
emissions the partners have avoided. Program partners are
expected to maintain their investments in technologies and
practices through 2014. Expenditures and financial savings in
the High GWP Gas Programs are proprietary and are not
included in the summary of economic benefits and
expenditures. The programs are estimated to have the
following benefits from 1993 through 2014:

• Preventing more  than 180 MMTCE in greenhouse
  gas emissions.
 The energy savings for the year 2004 are estimated from information provided by the Division for the ENERGY STAR Building and Industrial Improvements
 program and from information provided by the Lawrence Berkeley National Laboratory for ENERGY STAR Qualified Products.
10 The NPV of these expenditures was calculated using a 4-percent real discount rate and a 2004 perspective.
INVESTING  IN  OUR  FUTURE
                                                                                                                          49

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      COMPANIES AND ORGANIZATIONS MENTIONED IN THIS REPORT
     3M  	26, 48

     Academy School District 20	21

     Air Conditioning Contractors of America  	17

     Alliance of Automobile Manufacturers 	24

     Alterra Coffee Roasters 	29

     Ameresco Energy Services  	35

     Ameresco, Inc	36

     American Electric Power  	48

     American Petroleum Institute	33

     American Public Power Association	45

     ANR Pipeline	39

     Arizona Public Service  	45

     Astoria Homes	26

     Austin Energy  	26

     Australian Greenhouse Office	45

     Avista Advantage  	26

     Ball Corporation  	27

     Baxter International	27

     Borden Chemical	28

     BP	39

     Building Performance Institute  	6, 16, 17

     Business Council of Fairfield County (CT) 	22

     California Institute of Technology	28

     California Portland Cement Company  	25, 26

     California Public Employees'
        Retirement System  	22

     California State Teachers' Retirement System	22

     California State University at  Hayward  	29

     Cambridge Homes	26

     Cambridge Savings Bank	21

     Canon U.S.A., Inc	26

     CenterPoint Energy	14, 26

     Chicago White Metal Casting 	46

     Cinergy Corp	48

     City and County of San Francisco,
     Moscone Convention Center	29
City of Boulder, Colorado 	48

City of Syracuse, New York  	48

ClifBar, Inc	29

College of the Atlantic	29

Colorado Interstate Gas	39

Colorado Springs School District 11  	21, 22, 26

Columbia Gas Transmission  Company 	38

Columbia Gulf Transmission Company	38

Columbus Hospitality 	21

Commonwealth Green Energy	36

Connecticut Governor's Steering Committee	48

Connecticut Light and Power  	22

Connecticut Department of  Environmental Protection	31

CONSOL Energy  	41

Consortium for Energy Efficiency	17

Corral Farm Landfill	36

D.R. Horton, Inc	26

Dairyland Power Cooperative  	29, 35

David Powers Homes	26

Devon Energy Corporation	38, 39

Douglas, Emmett & Company  	21

Eastman Kodak Company	26

Eau Claire Energy Cooperative  	35

Edwards Air Force Base 	29

El Paso Natural Gas	39

El Paso Pipeline Group  	39

Electric Power Research Institute	45

Ence Homes	14, 26

Enerdyne Power Systems, Inc	35

Energy Information Administration	6, 23

Energy Management Board of Connecticut	22

Energy Sense  	26

Fairfield Research	14

Fauquier County, Virginia	36

First Environment, Inc	27
50
        CLIMATE  PROTECTION  PARTNERSHIPS   2004   ANNUAL   REPORT

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COMPANIES AND ORGANIZATIONS MENTIONED IN THIS REPORT
Food Lion, LLC	21, 23, 26

GE Consumer and Industrial—Appliances  	26

GE Consumer and Industrial—Lighting	26

GE Transportation	27

Giant Eagle  	20, 21, 26

Glenborough Realty Trust, Inc	21

Gorell Enterprises, Inc	26

Granger Energy, LLC	35

Granite Properties 	21

Greater Rochester International Airport	28

Guaranteed Watt Saver Systems—West, Inc	26

GulfTerra Energy Partners L.R
   (formerly  El Paso Field Services)	38

Harbec Plastics, Inc	29

Hasbro, Inc	27

H.E. Butt Grocery Company	21

Hitachi Displays  	44, 48

Honeywell Nylon	35

Improved Mobile Air Conditioning
   Organizing Team	48

Interface, Inc	29

International Magnesium Association  	45

Japan's Ministry of International Trade and Industry	44

Johnson & Johnson	28, 29

Johnson Controls	48

Kerr-McGee  Oil & Gas Corporation	39

LaFarge North America  	28

Lennox Industries Inc	26

Lowe's Companies, Inc	10, 15, 26

Lundberg Family Farms	29

Marriott International, Inc	26

Maryland Energy Administration	26

Mauna Lani Resort 	29

Maytag Corporation  	26

McDonald's,  Coca-Cola, &
   Unilever Refrigerants  Naturally Partnership  	48
MidAmerican Energy Company  	26

Mississippi Department of Environmental Quality 	36

Mobile Air Conditioning Society Worldwide	46

Montgomery County, Maryland  	29

Morgan County Regional Landfill	35

Muskogee Public Schools	21

National Electrical Manufacturers Association	45

Nevada ENERGY STAR Partners 	26

New Jersey Board of Public Utilities,
   Office of Clean Energy	26

New York Power Authority  	28

New York-Presbyterian Hospital  	20, 21, 26

New York State Energy Research
   and Development Authority	7, 13, 26

New York State Municipal Wind Buyers Group	29

Nicor Gas	22

NiSource Distribution Operations	38

Northeast ENERGY STAR Lighting
   and Appliance  Initiative  	26

NSTAR 	22

NSTAR Electric	26

Nucor Corporation  	35

Office of Commonwealth
   Development,  Massachusetts	48

Ohio Department of Development 	32

Onyx Waste Services 	35

Pacific Gas & Electric Company  	26

Panasonic	26

Pardee Homes  	16, 26

Parkway Properties	21

Pepco Energy Services  	36

Pioneer Natural Resources USA	39

Portland Cement Association	24

Puget Sound Clean Air Agency 	32

Rhode Island Greenhouse Gas Stakeholders	48

Roche Group U.S. Affiliates	27

Rodney Strong Vineyards	29
INVESTING  IN  OUR  FUTURE
                                                                                                                              51

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     COMPANIES AND ORGANIZATIONS MENTIONED IN THIS REPORT	


     Salt Lake City, Utah	29     United Technologies Corporation  	48

     San Diego Gas & Electric  	26     USAA Real Estate Company	21, 23, 26

     Sea Gull Lighting Products, Inc	26     Veridian Homes	26

     Sears, Roebuck and Co	26     Waste Management, Inc	35

     Servidyne Systems, LLC	26     Waukesha Engines	35

     Shell Exploration and Production Company 	38     Whirlpool Corporation 	26

     Society of Automotive Engineers 	46     WhiteWave Foods  	29

     Southern California Edison Company	26, 45     Whole Foods Market	29

     Southern California Gas Company  	26     Winrock International	48

     Southern Natural Gas  	39     Wisconsin Focus on Energy	26

     Staples, Inc	29     World LCD Industry Cooperation Committee 	44

     Sylvania	22, 26     World Semiconductor Council 	44

     Tennessee Gas Pipeline	39     Yale University	28

     The Aluminum Association	43     York International  	48

     The California Energy Commission	48

     The Collins Companies 	27

     The Hartford	21

     The Home Depot  	26

     The Saunders Hotel Group 	21, 26

     The Vanguard Group	21

     The World Bank 	21

     Toyota Motor of North America 	24

     Toyota Motor Manufacturing North America, Inc	26

     Transwestern Commercial Services	26

     Trigen-Cinergy Solutions of Silver Grove, LLC 	28

     Tufts Climate Initiative  	48

     TXU Electric Delivery	26

     U.S. Department of Agriculture	42

     U.S. Department
        of Energy	5, 9, 11, 14, 16, 19, 24, 41, 45

     U.S. Department of Housing and
        Urban Development	14, 16

     U.S. General Services Administration, Region 2  	29
52
        CLIMATE  PROTECTION  PARTNERSHIPS   2004  ANNUAL  REPORT

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 REFERENCES
Builder Magazine. 2003. "Builder 100." May. Published by Hanley Wood, LLC.
Available online at www.builderonline.com.

Climate Protection Partnerships Division, U.S. Environmental Protection Agency. 2005.
Partner and emissions data for 2004 provided by individual programs within the Climate
Protection Partnerships, Office of Atmospheric Programs.

Consortium for Energy Efficiency (GEE). 2005. National Awareness of ENERGY STAR
for 2004: Analysis ofCEE Household Survey.
Available online at www.ceel.org/eval/2004_ES_survey_rep.pdf

Energy Information Administration (EIA). 2004. Annual Energy Review 2004. Office of
Markets and End Use. Available online at www.eia.doe.gov/aer/contents.html.
(DOE/EIA-0384(2004).

EIA. 2005. Annual Energy Outlook 2005 with Projections to 2025. Office of Integrated Analysis
and Forecasting. January. Available online at www.eia.doe.gov/oiaf/aeo/index.html.
(DOE/EIA-0383(2005)).

Fairfield Research. 2003. Survey sponsored by Good Housekeeping.

Horowitz, M.J. 2001. "Economic Indicators of Market Transformation: Energy Efficient
Lighting and EPAs Green Lights." The Energy Journal Vol 22, Fall (4):95-122.

Horowitz, M.J. 2004. "Electricity Intensity in the Commercial Sector: Market and Public
Program Effects." The Energy Journal Vol 25, Spring (2): 115-137.

ICF Consulting Inc. 2005. An Estimate of Emissions Reductions Accomplished by ENERGY STAR
Industrial Partners. Prepared for EPAs Climate Protection Partnerships.

Intergovernmental Panel on Climate Change (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).

U.S. Environmental Protection Agency (EPA). 2005. Inventory of Greenhouse Gas Emissions
and Sinks: 1990-2003.  Office of Atmospheric Programs.  April. (EPA 430-R-05-003).
Available online at http://yosemite.epa.gov/oar/globalwarming.nsf/content/ResourceCenter
PublicationsGHGEmissions.html

Webber, C.A., R.E.  Brown, M. McWhinney, and J.G. Koomey. 2005. Status Report:  Savings
Estimates for the ENERGY STAR Voluntary Labeling Program (DRAFT). Lawrence Berkeley
National Laboratory. (LBNL-51319).
INVESTING  IN  OUR                                                                                           53

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     FIGURES AND TABLES
     Figure ES-1. Greenhouse gas emissions avoided compared to program goals 	  2

     Figure ES-2. Annual savings in energy use as a result of EPA's partnership
                 programs	  4

     Figure ES-3. Since 2000, ENERGY STAR savings have nearly doubled 	  5

     Figure ES-4. Annual greenhouse gas emissions avoided can be more than doubled
                 by 2012	  6

     Figure 5.    U.S. greenhouse gas emissions by sector and by gas 	  8

     Figure 6.    Partner actions are projected to maintain methane emissions below
                 1990 levels through 2012  	33

     Figure 7.    Partner actions can maintain voluntary program sector emissions of
                 high global warming potential gases at or below 1990 levels
                 through 2012 	43
     Table ES-1.  Summary of the benefits for 2004 and cumulative benefits through 2014
                 from the actions taken by partners through 2004 	  3

     Table 2.     Global warming potentials (GWPs)  and atmospheric lifetimes
                 of greenhouse gases 	  8

     Table 3.     ENERGY STAR Program: Annual Goals and Achievements 	 11

     Table 4.     Methane Programs: Annual Goals and Achievements 	40

     Table 5.     High GWP Gas Programs: Annual Goals and Achievements 	46
54      CLIMATE  PROTECTION  PARTNERSHIPS  2004  ANNUAL  REPORT

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United States
Environmental Protection Agency
Air and Radiation 6202J
EPA 430-R-05-010
www.epa.gov
September 2005


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