ENERGY STAR® and Other
              Climate Protection Partnerships
ENERGY STAR    2005 Annual Report
                                   &EPA
                                      United States
                                      Environmental Protection
                                      Agency

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ENERGY STAR® AND OTHER CLIMATE PROTECTION PARTNERSHIPS
2005 ANNUAL REPORT

CONTENTS
Letter from the EPA Administrator	   1
Executive Summary  	   2
     Highlights of 2005	   2
     Key Program Accomplishments for 2005	   4
     2006 and Beyond 	   6
Introduction  	   8
Climate Leaders	  12
ENERGY STAR Program	  14
     ENERGY STAR in the Residential Sector 	  20
     ENERGY STAR in the Commercial Sector 	  30
     ENERGY STAR in the Industrial Sector	  38
Clean Energy Supply  Programs	  44
     Green Power Partnership	  44
     Combined Heat and Power Partnership	  46
State and Local Programs and Initiatives	  48
     Clean Energy-Environment State Partnership	  48
     Clean Energy and Utility Regulatory Policies	  50
Methane Programs 	  52
     Natural Gas STAR Program	  52
     Coalbed Methane Outreach Program	  54
     Landfill Methane Outreach Program	  56
High Global Warming Potential Gas Programs 	  60
Calculating Voluntary Program Benefits	  67
Companies and Organizations Mentioned in This Report	  68
List of Figures and Tables	  72
References .                                                         . .Back Cover
For additional information, please visit our Web sites at www.epa.gov/cppd, www.energystar.gov,
www.epa.gov/methane, and www.epa.gov/highgwp.

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                                                             LETTER FROM THE ADMINISTRATOR
                                                                         October 2006
I am pleased to present this report on EPA's climate change strategies at work. Through the
efforts of EPA and our partners, we are successfully implementing the President's aggressive yet
practical plan to dramatically reduce our nation's greenhouse gas emissions, while continuing to
grow the American economy.

Whether running a business or a household, Americans are realizing that getting the most out
of their  energy dollars just makes sense. And by making smart energy choices, millions of
people are saving billions  of dollars each year. In fact, in 2005  alone, Americans, with the help
of ENERGY STAR, saved $12 billion on their energy bills, while preventing the greenhouse
gas  emissions equivalent to those from 23 million vehicles—the number of all the cars in
California and Illinois combined.

As EPA partners with more states,  businesses, and public utilities, investments in clean
energy also continue to grow. In 2005, more than 600 of our Green Power partners purchased
4 million megawatt-hours of green power, and since 2001, our 170 Combined Heat and
Power partners have installed 3,500 megawatts of clean energy capacity—demonstrating that
the  market for clean and renewable energy has never been stronger.

In addition, through  our Climate Leaders program, EPA is encouraging individual companies
to set corporate-wide greenhouse gas reduction goals, develop comprehensive long-term
reduction strategies, and inventory their emissions to determine progress. In 2005, Climate
Leaders  grew to 78 corporate partners whose greenhouse gas emissions represent 8 percent of
the  U.S. total.

Finally,  EPA's partners have significantly reduced their methane and other potent greenhouse
gas  emissions to well  below 1990 levels. The reduction of non-CO2 gases totaled 26 million
metric tons of carbon equivalent in 2005, almost 16 percent of the total non-CO2 emissions.
Even as  the economy grows, we expect our partners to continue fulfilling their environmental
commitments by reducing their climate footprints in cost-effective ways.

Through ENERGY STAR and our other voluntary programs, EPA is encouraging consumers
and businesses to reduce their greenhouse gas emissions, while contributing to a growing
economy. By working with our partners, EPA is helping deliver America a brighter, healthier,
and more prosperous future.

                                               Sincerely,
                                               Stephen L. Johnson
                                               Administrator
                                               U.S. Environmental Protection Agency


                                      ENERGY STAR® and Other Climate Protection Partnerships 2005 Annual Report  1

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EXECUTIVE  SUMMARY

The U.S. Environmental Protection Agency's (EPA's)
climate protection partnership programs continue to play
an important role in reducing emissions of greenhouse
gases (GHGs) that  contribute to global climate change.
EPA's programs are well-designed efforts that address
identified market barriers,  accelerate the adoption of
proven technologies and practices, and deliver substantial
emissions reductions. Greater investments in energy
efficiency, clean energy supply, and other climate-friendly
technologies provide cost-effective, near-term means for
protecting our global environment, in addition to
combating higher utility bills and hedging against
volatility in electricity and  natural gas markets.

By 2005, these programs had more than a decade of success
delivering environmental and economic results (see Table 1
and Figure 1). A diverse and growing set of partner organizations
have delivered sizeable emissions reductions  and made
significant progress towards meeting the President's
greenhouse  gas intensity1 reduction goal for  2012.


Highlights of  2005
• The Administration's corporate leadership program,
  Climate Leaders, grew to 78 companies; about half of
  them have announced aggressive GHG reduction
  targets for the future;  and five companies  announced
  they had  achieved previously set goals.

• Americans, with the help of ENERGY STAR,
  prevented greenhouse gas emissions equivalent
  to those from about 23  million vehicles and saved
  more than $12 billion on their energy bills (see Figure
  2), more  than double the savings in 2000. The program
  is on track to more  than double these benefits again in
  10 years.

• Some 600 partners in the Green Power Partnership
  purchased more  than 4  billion kilowatt-hours (kWh)
  of renewable energy as a strategy for demonstrating
  environmental leadership.

• EPA joined with 11 states in a new partnership to help
  state decisionmakers explore clean energy policies that
  can best meet state environmental and economic
  objectives.
• Utility regulators—together with utilities, EPA and
   DOE, and other key stakeholders—kicked off a new
   initiative, The National Action Plan for Energy
   Efficiency, to identify approaches to overcome many of
   the regulatory, policy, and information barriers that
   have hindered greater investment in energy efficiency.

• The domestic methane (CH4) programs exceeded their
   emissions reductions goals in 2005  and kept national
   methane emissions to well below 1990 levels.

• The partnerships focusing on high global warming
   potential (GWP) gases have kept national emissions
   levels to well below 1990 levels.

The environmental and  economic benefits of many of
EPA's climate partnership programs2 as of 2005 are
presented below and in Table 1:

• The partnership programs prevented 63 million metric
   tons (in MMTCE3) of greenhouse gas emissions in
   2005, equivalent to the annual emissions from
   42 million vehicles (see Figure 1).

• More than 800 MMTCE are being avoided through
   2015 due to investments and actions  already taken by
   partners in EPA's climate protection partnerships.

• Consumers and businesses have locked  in investments
   in energy-efficient technologies exceeding $38 billion.

• Net of their  investment in energy-efficient technologies,
   consumers and  businesses are saving $130 billion
   cumulatively over the next 10 years, having saved about
   $13 billion in 2005 alone.

These programs continue to be a cost-effective approach
for reducing  U.S.  GHG emissions. Every federal dollar
spent on these  partnership programs through 2005 means:

• Reductions in greenhouse gas emissions of
   1.0 metric ton of carbon equivalent (3-7 tons of
   carbon dioxide  (CO2)).

• Savings for partners and consumers of more than
   $75 on their energy bills.

• The creation  of more than $15 in private sector investment.

• A net addition of more than $60 into the economy.
NOTE: The data source for all figures and tables in this 2005 Annual Report is EPA's Climate Protection Partnership Programs
      unless otherwise noted.

1 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.
2 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 86 MMTCE in 2005.
3 Million metric tons of carbon equivalent (MMTCE). 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 fora 100-year time period.

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                                                                                      EXECUTIVE SUMMARY
TABLE 1. BENEFITS FROM PARTNER ACTIONS IN 2005 AND CUMULATIVE BENEFITS THROUGH 2015 FROM
PARTNER ACTIONS THROUGH 2005 (IN BILLIONS OF 2005 DOLLARS AND MMTCE)
BENEFITS FOR

NET
SAVINGS
PROGRAM (BILLION $)
ENERGY STAR Total $12.6
Qualified Products $6.8
and Homes
Buildings $4.6
Industry $1.2
Clean Energy
Supply Programs
Methane Programs $0.4
High GWP Gas Programs

TOTAL $13.0
PV: Present Value


EMISSIONS
AVOIDED
(MMTCE)
34.2
15.2

14.8
4.2
3 1

14.2
11.5

63.0
CUMULATIVE BENEFITS 1993-2015

PVOF
BILL SAVINGS
(BILLION $)
$160.5
$73.6

$69.9
$16.9


$7.7


$168.2

PVOF
TECHNOLOGY
EXPENDITURES
(BILLION $)
$35.4
$8.7

$24.5
$2.3
na

$2.8
na

$38.2

NOTES: Technology Expenditures include O&M expenses for Methane Programs. Bill Savings and Net Savings include

PVOF
NET SAVINGS
(BILLION $)
$125.1
$64.9

$45.5
$14.7


$4.9


$130


EMISSIONS
AVOIDED
(MMTCE)
399
157

167
74
38

209
192

838

revenue from sales of methane and electricity.
        Totals may not equal sum of components due to independent rounding. For details on cumulative benefits, see page 67.
        Not applicable
        Not available
FIGURE 1. MORE GREENHOUSE GAS EMISSIONS AVOIDED EACH YEAR THROUGH PARTNER ACTIONS
          2000
                                                                                TOTAL HIGH GWP SAVINGS

                                                                               | TOTALCH4 SAVINGS

                                                                               | TOTALC02 SAVINGS
2001
2002
2003
2004
2005
FIGURE 2. SINCE 2000, ENERGY STAR BENEFITS HAVE MORE THAN DOUBLED
     2000
             2001
                    2002
                           2003
                                   2004
                                          2005
    UTILITY BILL SAVINGS
    (in billions)
                                                                                    21
                                                                                           23
                                                                     16
                                                      11
                                                          I     I
                                           •     I     I     I
                                   I     •     I     I     I
                                                     2000
                                                             2001
                                                                    2002
                                                                            2003
                                                                                   2004
                                                                                          2005
                              EMISSIONS AVOIDED IN
                              VEHICLE EQUIVALENTS (in millions)
                                                   ENERGY STAR® and Other Climate Protection Partnerships 2005 Annual Report 3

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Key Program Accomplishments for 2005

Key 2005 accomplishments for Climate Leaders,
ENERGY STAR, Clean Energy Supply Programs,
State and Local Programs, Methane Programs, and the
High Global Warming Potential Gas Programs are
provided below.

Climate Leaders. The number of Climate Leaders
partners grew to 78, an increase of about 20 percent over
2004. By year end, half of the partners had announced
GHG reduction goals; and were recognized in an EPA-
sponsored public service announcement (PSA)  that ran
in 13 publications with a combined circulation of
5.2 million (see p. 5). In addition, five Climate Leaders
partners met their initial GHG reduction goals, the first
ones to do so since the program launch in 2002.

ENERGY STAR. Americans, with the help of ENERGY
STAR, saved a significant amount of energy in 2005—
150 billion kWh and 28 gigawatts (GW) of peak power,
equivalent to the generation capacity of 50 new power
plants. This energy savings represents  an increase of about
20 percent over the prior year and more than a doubling
since 2000. Accomplishments across the residential,
commercial, and industrial sectors include:

• EPA, along with the U.S. Department of Energy
  (DOE) and U.S. Department of Housing and Urban
  Development (HUD), announced  the new Partnerships
  for Home Energy Efficiency to coordinate and leverage
  their efforts with a goal of saving homeowners 10
  percent on their energy bills by 2015-

• EPA introduced new ENERGY STAR specifications for
  external power adapters and updated specifications for
  air source heat pumps, central air conditioners, cordless
  phones, dehumidifiers, and light fixtures. Participation
  grew to over 1,500 manufacturers using the ENERGY
  STAR on a total of 35,000 individual product models
  across more than 50 different product categories.

• More than 500,000  ENERGY STAR qualified new
  homes have been constructed by more than 2,500
  builder partners to date, locking in annual savings of
  $120 million for homeowners. About one in ten new
  homes now qualify for the ENERGY STAR.

• Home Performance with ENERGY STAR, a new
  whole home audit and retrofit program offering
  homeowners significant energy bill  savings, has
  expanded as states and utilities look for additional
  opportunities to achieve energy savings and reduce
  peak loads.

• EPA launched the ENERGY STAR Challenge, calling
  on businesses and institutions to reduce commercial
  building energy use by 10 percent or more. More than
  half of the states and the District of Columbia (D.C.)
  along with over 20 major associations are participating
  in the Challenge.  In addition, EPA recognized 20
  organizations as ENERGY STAR Leaders for
  improving the energy performance of their building
  portfolios by 10, 20, or 30 points or more and for
  sharing how to meet or go beyond the ENERGY STAR
  Challenge goals. These efforts added to the growing
  momentum of EPA's whole building energy performance
  benchmarking system. By late 2005, about 26,000 buildings
  had been rated for energy performance, and more than
  2,500 buildings across the nation had earned the
  ENERGY STAR label for superior energy performance.

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

Clean Energy Supply. EPA's clean energy supply
programs grew in the number of partners involved, in
the number of clean  energy projects installed, and in
emissions avoided.

• The Combined Heat and Power Partnership grew to
  170 partners and has helped facilitate CHP projects
  totaling 3,500 megawatts (MW) of CHP capacity.

• Since its inception in 2001, the number of Green
  Power partners has increased to over 600 organizations
  that have made a combined commitment to purchase
  more  than 4 million megawatt-hours  (MWh) of green
  power annually.

State and Local Government Programs. EPA
initiated new efforts  that reflect the needs of state officials
and encouraged  them to develop and implement clean
energy strategies. These efforts include:

• A new Clean Energy-Environment State Partnership
  rolled out with 11 state charter partners.

• A final draft of a new Clean Energy and Environment
  Guide to Action, which identifies and describes 16 clean
  energy policies and strategies that states have used to
  meet  their clean energy objectives.

• A new effort,  in partnership with DOE, to bring utility
  regulators together  with utilities and other key stakeholders
  to identify sound business approaches for expanding
  investment in energy efficiency and to develop a
  National Action Plan for Energy Efficiency.

Methane and High Global Warming Potential
(GWP)  Gas Programs. EPA's programs for the more
potent greenhouse gases continued to grow in the breadth
of their  partnerships  and emissions  avoided.

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                                                                                                                      EXECUTIVE SUMMARY
EPA RECOGNITION FOR CLIMATE LEADERS PARTNERS WITH ANNOUNCED GHG REDUCTION GOALS IN 2005
Total circulation of 5.2 million in 13 publications
                                                                                                                  75EEASONS
                                                                                                                    TOOwNA
                                   EPA conpatuiatK these corporate fwders fw wtti ng goal? to wduee bi Hions of pounds
                                   of greenhouse gas emissions. It's the equivalent of eliminating the annual emissions of
                                   5 millwn cars, tow, that's a healthy diet which can benefit us all. To Team i>cw your
CLIMATED
LEADERS
3M
Advanced Micro Devices, Inc.
American Electric Power
Ball Corporation
Baltimore Aircoil Company
Bank of America Corporation
Baxter  International
Calpine
Caterpillar Inc.
Cinergy Corp,
The Collins Companies
Eastman Kodak Cdmpany
EMC Corporation

First Environment. Inc.
FPL Group. Inc.
Frito Lay. inc.
Gap Inc.
General Electric Company
General Motors Corporation
Green Mountain Energy Company
Hasbro. Inc,
Haworth. Inc.
Holcim (USJ Inc
IBM Corporation
Interface, Ing.
International Paper
Johnson & Johnson
Lochheed Martin Corporation
Mack Trucks, Inc.
Marriott International, Fnc.
Melaver, Inc.
Miller Brewing Company
National Renewable Energy Laboratory
Oracle Corporation
Pfizer,  Inc.
PSEG
Roche Group US Affiliates
SC Johnson
Staples, Inc.
St, Lawrence Cement
5T Microsystems, line.
Sun Microsystems, Inc.
United Technologies Corporation
Volvo Trucks North America
Xerox Corporation
                                                                       ENERGY STAR® and Other Climate Protection Partnerships 2005 Annual Report 5

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• The reduction of non-CO2 gases totaled nearly
  26 MMTCE in 2005- EPA's voluntary methane
  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. Public-private industry partnerships
  are also substantially reducing U.S. emissions of the
  high global warming potential (GWP) gases released
  as byproducts of industrial operations. High  GWP gas
  emissions and methane emissions are projected to
  remain well below 1990 levels through the year 2012.

International Climate Protection Awards.  EPA,
working with a team of reviewers from around the world,
recognized 13 leading organizations and individuals for
their leadership in addressing global climate change issues
(see p.  63).


2006 AND  BEYOND
As EPA expands these programs and partnerships, the
resulting environmental benefits are expected to  nearly
double in the next 10 years, from 63 MMTCE in 2005 to
almost 120 MMTCE in 2015 (see Table 2 and Figure 3),
with continued funding at current levels. For 2006 and
beyond, EPA's near-term plans for the key partnership
program  areas are summarized below:

Climate Leaders. Approach the 100 partner milestone,
of which about half will have publicly stated their GHG
reduction goals.

ENERGY STAR. Make major advancements across the
residential, commercial, and industrial sectors including:

• Continuing  efforts to maintain the integrity of the
  ENERGY STAR name and logo, as required under the
  Energy Policy Act of 2005 among other laws,  and
  providing a new report on these efforts.

• Working with manufacturers, retailers, home builders
  and raters, utilities, and states in broad education on
  the benefits of ENERGY STAR qualified products, new
  homes, and commercial buildings.

• Adding battery chargers to the ENERGY STAR family
  of products; updating ENERGY STAR specifications for
  five or more products; and implementing a more
  stringent specification for ENERGY STAR qualified
  new homes,  the first major revision since the mid 1990s.

• Expanding Home Performance with ENERGY STAR
  to new regions of the country and developing a new
  energy service program for quality installation of
  heating and  cooling systems.
• Increasing energy savings in the commercial and
  industrial sector by engaging more organizations and
  associations in the ENERGY STAR Challenge, the
  EPA building benchmarking system, and recognition
  opportunities; expanding partnerships with the industrial
  sector by convening more than 10 sector-specific
  Industry Focuses; developing Energy Performance
  Indicators (EPIs) and other technical assistance tools;
  making the ENERGY STAR label available to energy-
  efficient industrial facilities for which EPIs have been
  developed; and broadly encouraging energy management
  as a strategic business issue.

• Renewing the ENERGY STAR agreement with the
  European Union, through which the revised
  specifications for computers and imaging equipment
  would be adopted.

Clean Energy Supply. Assist partners of the Combined
Heat and Power Partnership with more than 30 new CHP
projects, facilitating the development of over 800 MW of
new CHP  capacity; and engage 50 new organizations in
the Green  Power Partnership, bringing the total to more than
650 partners and increasing green power purchasing
commitments.

State and Local Government Programs. Assist state
decisionmakers by:

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

• Adding  two to three new partners to the Clean Energy-
  Environment State Partnership Program.

• Facilitating the National Action Plan for Energy
  Efficiency in conjunction with DOE. Key milestones
  include  the development and release of major
  recommendations and the announcement by the
  Leadership Group and others of the actions they will
  take to advance energy efficiency in their areas
  of business.

Methane and High Global Warming Potential
(GWP) Gas Programs. Continue:

• Working aggressively with existing partner companies
  to expand their methane emissions reduction projects
  within their companies and  maintain overall methane
  emissions below  1990 levels.

• Implementing agreements to reduce greenhouse gas
  intensity for the aluminum, magnesium, and
  semiconductor sectors as part of the Climate VISION
  initiative (see Table 3).

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                                                                                                 EXECUTIVE SUMMARY
TABLE 2. GREENHOUSE GAS REDUCTION GOALS FOR EPA CLIMATE PARTNERSHIP PROGRAMS OVER
THE NEXT 10 YEARS (MMTCE)
PROGRAM*

ENERGY STAR**
Clean Energy Supply
Programs
Methane Programs
High GWP Programs
TOTAL
ACCOMPLISHMENTS
2005
34.2
3.1
14.2
11.5
63
GOALS
2012
52
8
18
19
97
2015
64
12
20
22
118
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 86 MMTCE in 2005.
** Does not include ENERGY STAR products managed by DOE.
FIGURE 3. EPA CLIMATE PARTNERSHIP PROGRAMS CAN NEARLY DOUBLE EMISSIONS AVOIDED BY 2015
     120
     100
            1996       1998

         YEARS 1995-2015
                              2000
                                       2002
                                                2004
                                                         2006
                                                                  2008
                                                                           2010
                                                                                    2012
                                                                                             2014  2015
NOTE: Historical totals updated based on most recent data available.
TABLE 3. CLIMATE VISION* GOALS FOR EPA'S HIGH GWP GAS PROGRAMS
EPA PROGRAM
Voluntary Aluminum Industrial
Partnership (VAIP)
The SF6 Emission Reduction
Partnership for the
Magnesium Industry
The PFC Reduction/Climate
Partnership for the
Semiconductor Industry
CLIMATE VISION GOAL
Has committed to achieving a direct carbon intensity reduction of
53% from 1990 levels by 2010.
Has committed to eliminating SF6 emissions by 2010.
Has committed to reducing absolute perfluorocompound (PFC) emissions by
10% below the 1995 baseline level by the end of 2010.
' Voluntary Innovative Sector Initiatives: Opportunities Now
                                                          ENERGY STAR® and Other Climate Protection Partnerships 2005 Annual Report 7

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INTRODUCTION

EPA's climate protection partnership programs promote
successful strategies and practical solutions to help
Americans reduce energy use, save money, and protect the
environment. These programs have produced sizeable
benefits over more than 10 years throughout the commercial,
industrial, and residential sectors due to the efforts of
thousands of committed partners. These programs play an
important role in efforts to achieve President Bush's goal of
an 18-percent reduction in greenhouse gas intensity by 2012
and are more important than ever as rising energy prices
become a major concern for U.S. businesses and consumers.

Greater investments in energy efficiency, clean energy, and
other climate-friendly technologies provide a cost-effective,
near-term means to protect our global environment and,
in many cases, to combat higher utility bills and hedge
against volatility in electricity and natural gas markets.
EPA's suite  of climate protection partnership programs  is
designed to overcome existing market barriers  that limit
greater investment  in these technologies and practices by
providing objective information and technical assistance to
partners and the public and recognition for environmental
leadership to those organizations taking measurable steps
to reduce their greenhouse gas  (GHG) emissions (see
Table 4). The programs summarized in this report4 focus
on the following opportunities:

Corporate Commitments for Managing
GHG Emissions
Climate Leaders—most of    f"*I  I t\A AT"C
which are major corporations  I EXVDER*
and industry leaders—are      u-8- Environmental era**™ Aa«icy
earning recognition for their environmental stewardship
and leadership in helping the country reach its greenhouse
gas intensity reduction goal. These companies  have
committed  to aggressively  reducing their impact on the
global environment by completing a comprehensive
inventory of their greenhouse gas emissions, setting
ambitious long-term  reduction goals, and systematically
reporting their progress to EPA. To meet these targets, the
Climate Leaders make investments in three areas—energy
efficiency, clean energy, and emissions reductions in the
non-carbon dioxide (CO2) greenhouse gases.
                                                                                               ENERGYSTAR
Energy Efficiency
Energy efficiency—obtaining the
identical services or output (e.g.,
heating, cooling, and lighting) for
less energy input—is a proven
means of producing immediate and
measurable environmental and
financial benefits. For more than  a decade, EPA has
promoted cost-effective investments to improve energy
efficiency at work and at home through the ENERGY
STAR program. Energy efficiency helps the nation:
• Avoid carbon dioxide  (CO2) emissions, the primary
  greenhouse gas (see Figure 4).
• Save on energy bills through cost-effective investments
  in energy-efficient products and services that offer
  businesses and households savings of up to 20 to  30
  percent.
• Improve electricity reliability and lower the volatility
  of energy prices.
                                                                                                     *EPA
                                                                                                     GREEN
                                                                                                     POWER
                                                                                                A EPA COMBINED HEAT AND
                                                                                                     POWER PARTNERSHIP
Clean  Energy Supply
EPA has joined with numerous
organizations to promote greater
purchase of electricity derived
from renewable energy and greater
investment in combined heat and
power. In each of these efforts, EPA
is collaborating with partners to
minimize transaction costs, provide technical assistance,
and encourage greater use of technologies that significantly
reduce greenhouse  gas emissions from energy generation.

State Energy  Policies
EPA works with state and local
energy policymakers to explore the
role that a variety of clean energy
policies can play in meeting
environmental and economic
objectives. EPA provides state and local government
agencies with information and resources to support the
evaluation and implementation of these policies.
                                                                                               Clean EnergyEnvironmant
                                                                                               STATE PARTNERSHIP
4 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 86 MMTCE in 2005.

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                                                                                               INTRODUCTION
TABLE 4. MARKET BARRIERS ADDRESSED BY ERA'S CLIMATE PARTNERSHIP PROGRAMS
AUDIENCE OR
TARGET MARKET
Energy Consumers
Utilities
Industries with
Byproduct GHG
Emissions *
State Policy and
Decisionmakers
MARKET BARRIERS
ADDRESSED
Lack of information about energy
efficiency options
Competing claims in the marketplace
Accessing objective measurement tools
Minimizing transaction costs
Reliable technical assistance
Peer exchange opportunities
Overcoming split incentives
Understanding organizational risks
Incentives for action through recognition
Accessing objective measurement tools
Lack of information about energy efficiency
program costs and benefits
Disincentives for energy efficiency in existing
regulations and energy planning processes
Reliable technical assistance
Peer exchange opportunities
Incentives for action through recognition
Lack of information about clean energy policies
Reliable technical assistance
Incentives for action through recognition
CLIMATE PROTECTION PARTNERSHIP PROGRAM
CLIMATE ENERGY GREEN COMBINED HEAT
LEADERS STAR POWER AND POWER
•
• •
• •
• • • •
• • • •
• • • •
•
• •
• • • •
• • • •
National Action Plan for Energy Efficiency
National Action Plan for Energy Efficiency
Climate Leaders
Methane Partnerships
High GWP Partnerships
Clean Energy-Environment State Partnership
National Action Plan for Energy Efficiency
 ' Includes utilities.
FIGURE 4. U.S. GREENHOUSE GAS EMISSIONS BY SECTOR AND GAS
                                 AGRICULTURAL
                                     73%
                                                         INDUSTRIAL
                                                           29.7%
                    RESIDENTIAL
                       16.7%
                                                                         CO2  85% of TOTAL

                                                                         Methane/Nitrous Oxide  13% of TOTAL

                                                                        } MFCs, PFCs, and SF6 2% of TOTAL
                       COMMERCIAL
                          17.1%
TRANSPORTATION
     27.7%
NOTE: Totals may not add to 100% due to independent rounding.
Source: EPA 2006
                                                    ENERGY STAR® and Other Climate Protection Partnerships 2005 Annual Report 9

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        Non-C02 GHG Emissions Reductions
        EPA's climate partnerships are substantially reducing U.S.
        emissions of methane and other high global warming
        potential (GWP) gases released as byproducts of industrial
        operations.
        • Methane (CH4) is a much sought-after clean fuel;  at
          the same time, it is a potent greenhouse gas. When
          methane emissions can be captured cost-effectively, the
          recovered methane represents a valuable energy source
          that can be used or sold. EPA works with the natural
          gas, coal mining, and landfill gas development
          industries to help them capture and use methane
          wherever cost-effective.
          Hydrofluorocarbons (HFCs), perfluorocarbons (PFCs),
          and sulfur hexafluoride (SF6) are all potent greenhouse
          gases; on a molecule per molecule basis they have a
          greater ability than CO2 to trap heat in the  earth's
          atmosphere. Various U.S. industries—including
          aluminum, magnesium, semiconductor, electric utilities,
          and those engaged in mobile air conditioning—are
          working with EPA to avoid significant accumulation of
          these long-lived, high GWP gases in the atmosphere.
                                        Sh Emission Reduction
                                        Partnershipfor the Magnesium Industry
The Benefits of Partnering
The thousands of businesses and organizations that have
joined EPA's climate partnership programs are seizing
numerous opportunities to reduce the environmental
impacts of their own and their customers' activities and
thereby serve as environmental leaders. Every year the
benefits of these programs grow as a result of partner
actions and investments (see Table 5).

This 2005 Annual Report provides detailed information
on each of the program areas mentioned in this
introduction and summarized at right, including program
overviews, environmental and economic benefits achieved
in 2005, and goals for the future. EPA makes it a priority
to achieve quantifiable program results and uses well-
established methods to estimate the environmental and
economic benefits of its climate partnership programs.
Specific approaches vary by program  depending on
program strategy, sector, market size and structure, and the
availability of data (see pages 42, 43,  46, 59, and 63). For
each program, EPA addresses common issues that  arise
when estimating program benefits, such as data quality,
double counting, mitigating free-ridership, and accounting
for market effects, among others. The information
presented in this report is similar to much of the
information used in the U.S. Office of Management and
Budget (OMB) Program Assessment  Rating Tool (PART)
evaluation, which found these EPA programs to be
achieving their goals.
10

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                                                                                                    INTRODUCTION
TABLE 5. OVERVIEW OF EPA CLIMATE PARTNERSHIP PROGRAMS REVIEWED IN THIS ANNUAL REPORT WITH
GREENHOUSE GAS REDUCTIONS SINCE 2000
  PROGRAM
                       GHGs
                    ADDRESSED
    KEY
  SECTOR(S)
SCOPE OF PARTNERS
    AS OF 2005
            GHG REDUCTIONS
               (MMTCE)
                                                                      2000  2001    2002   2003  2004    2005
  Climate Leaders
                         All
 Commercial,
   Industrial
                                                       78
                      Climate Leaders' reductions are reflected
                        in the data shown for other programs.
  ENERGY STAR
                        C02
  Residential,
 Commercial,
   Industrial
       8,000
                                                                      15.4   18.6    22.7    26.6   30.5    34.2
  Clean Energy-
  Environment State
  Partnership
  CLEAN ENERGY SUPPLY

  Green Power
                        CO,
                        CO2
  Combined Heat and
  Power


  METHANE PROGRAMS


  Natural Gas STAR
                        CO,
                        CH4
    State
 Government
 Commercial,
   Industrial
 Commercial,
   Industrial
 Natural Gas
        11
       600
                                                                                 New in 2005
        170
   56% of industry
                                                                      N/A   N/A     0.5     1.0    2.0     3.1
                                                                     4.1    5.0     5.8     5.9    6.7     7.5
  Coalbed Methane
  Outreach Program
  (CMOP)
                        CH4
 Coal Mining
       N/A
                                                                     1.6    1.7     1.9     1.7    1.8     2.2
Landfill Methane
Outreach Program
(LMOP)
                          CH4
  HIGH GWP GAS PROGRAMS
  Voluntary Aluminum
  Industrial Partnership
    Waste
 Management
                                   Aluminum
                                    Smelting
       490
                 98% of industry
                                                                       3.2    3.7     3.9     4.1    4.4     4.5
                                    2.0    2.1     1.8    2.2   2.2     2.3
  HFC-23 Partnership
                        MFCs
  Chemical
   Industry
  100% of industry
                                                                       4.7    5.1     4.5     6.1    6.4     6.2
  Stewardship
  Programs
                        SF6
                        PFCs
  Magnesium
  Production,
Semiconductor
Manufacturing,
 Electric Power
   Systems
     50%-100%
     of industry
0.8    0.8    1.3    1.8   3.1     3.0
  Mobile Air
  Conditioning (MAC)
  Partnership
                        C02
                        MFCs
 MAC Industry
       N/A
      Working toward technology
         improvement goals
NOTE: Historical totals updated based on most recent data available.
N/A: Not applicable.
                                                      ENERGY STAR® and Other Climate Protection Partnerships 2005 Annual Report 11

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        CLIMATE  LEADERS
        Corporate Commitments to Emissions
        Reductions
                                   CLIMATE
Since 2002, the Climate
Leaders program has
provided valuable guidance   u-8- fmnmtntaM Prowctton Agency
and recognition to leading companies across many
industries to help them develop and implement long-term
comprehensive climate change strategies. By joining the
partnership, these companies commit to completing a
comprehensive inventory of their greenhouse gas
emissions, setting aggressive long-term reduction goals,
and reporting their progress to EPA using clear
measurement protocols.

Companies use EPA's tools, expertise, and resources to
make informed decisions about cost-effective strategies
and practical portfolio investments  in energy efficiency,
clean energy, and non-CO2 emissions reductions. EPA
continuously tracks progress through a variety of means,
and EPA ensures the credibility of reported data through
detailed  data reviews and site visits.

Climate Leaders partners have made substantial progress
in the 4  years since the program was launched (see Table
6). By the end of 2005, five partners had achieved their
initial Climate Leaders reduction goals, many companies
had established emissions reductions goals, and many new
companies had joined.

Achievements in  2005
• The number of Climate Leaders  partners grew to
  78, an increase of about 20 percent in just one year,
  with the addition  of 14 new corporate partners. These
  companies represent approximately 8 percent of U.S.
  GHG emissions.
• Five partners met  their initial Climate Leaders GHG
  reduction goals, the first ones to  do so since the
  program was launched in 2002 (see Table 7). Once
  companies reach their initial targets, they will continue
  working with EPA to  establish new goals.
• The total number of corporate GHG goals announced
  though 2005 grew to 38, including the 13 organizations
  that announced new GHG reduction goals last year
  (see Table 8). About half of the companies in the
  partnership now have publicly announced GHG goals.
• EPA estimates that GHG reductions by Climate
  Leaders partners will prevent more than 9 million
  metric tons of carbon equivalent per year relative to
  typical improvement activities. These reductions are
  equivalent to the annual emissions of more than
  6 million vehicles.
• Sixty partners submitted initial GHG inventories to
  EPA, a necessary step for many organizations prior to
  establishing an emissions reduction goal. EPA technical
  experts performed 30 site visits to review partner GHG
  inventories and Inventory Management Plans and
  recommend  improvements.
• EPA issued the first edition of the Climate Leaders
  Design Principles and released sector-specific inventory
  protocols, Inventory Management Plan tools, and draft
  offset protocols to provide rigorous yet flexible
  accounting principles and help companies manage
  their GHG emissions.
• EPA recognized those partners that have set emissions
  reduction goals  through a public service announcement
  (PSA)  that ran in  13 publications with a combined
  circulation of more than 5-2 million (see p. 5).

What to Expect in 2006 and Beyond
EPA's Climate Leaders program expects to welcome
20 additional Climate Leaders partners each year,
approaching the milestone of 100 Climate Leaders in
2006, and to announce 20 new corporate GHG reduction
targets each year. Three more companies are poised to
achieve their corporate climate change goals in 2006, and
EPA will  collaborate with  these partners to develop new
corporate recognition opportunities for companies that
achieve major milestones. EPA technical experts will field-
test and finalize inventory guidance for GHG emissions
offset projects as well as expand the types of projects for
which offset protocols are  available.
12

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                                                                                CLIMATE LEADERS
TABLE 6. CLIMATE LEADERS KEY PROGRAM INDICATORS FOR 2004 AND 2005
CLIMATE LEADERS INDICATORS
Partners
Initial Inventories Submitted
Site Visits
Goals Announced
Goals Accomplished
2004 CUMULATIVE
64
45
9
25
0
2005 CUMULATIVE
78
60
30
38
5
TABLE 7. FIVE CLIMATE LEADERS ACHIEVE THEIR CLIMATE PROTECTION GOALS IN 2005
PARTNER
Baxter International, Inc.
General Motors Corporation
IBM Corporation
National Renewable
Energy Laboratory
SC Johnson
GOAL ACHIEVED
Met its goal to reduce U.S. greenhouse gas emissions by 16 percent per unit of
production value.
Met its goal to reduce total greenhouse gas emissions by 10 percent for all
North American facilities.
Met its goal to reduce average annual COz emissions associated with global
energy use by 4 percent per year through 2005. In addition, IBM Corporation
met its goal to reduce total perfluorocompound (PFC) emissions from
semiconductor manufacturing processes by 10 percent.
Met its goal to reduce U.S. greenhouse gas emissions by 10 percent
per square foot.
Met its goal to reduce U.S. greenhouse gas emissions by 23 percent
per pound of product.
TABLE 8. THIRTEEN MORE CLIMATE LEADERS SET AGGRESSIVE CLIMATE PROTECTION GOALS
FOR A TOTAL OF 38
PARTNER
Caterpillar Inc.
Frito-Lay
Green Mountain Energy
Melaver
Calpine
Xerox
Staples
Gap, Inc
Bank of America
Exelon
General Electric
Sun Microsystems
Marriott International
GOAL ANNOUNCED
Reduce global GHG emissions by 20 percent per dollar revenue from 2002 to 2010
Reduce U.S. GHG emissions by 14 percent per pound of production from
2002 to 20 10
Achieve net zero U.S. GHG emissions by 2005 and maintain that level through 2009
Achieve net zero U.S. GHG emissions by 2006 and maintain that level through 2009
Reduce U.S. GHG emissions by 4 percent per megawatt hour from 2003 to 2008
Reduce total global GHG emissions by 10 percent from 2002 to 2012
Reduce total U.S. GHG emissions by 7 percent from 2001 to 2010
Reduce U.S. GHG emissions by 1 1 percent per square foot from 2003 to 2008
Reduce total U.S. GHG emissions by 9 percent from 2004 to 2009
Reduce total U.S. GHG emissions by 8 percent from 2001 to 2008
Reduce total global GHG emissions by one percent from 2004 to 2012
Reduce total U.S. GHG emissions by 20 percent from 2002 to 2012
Reduce U.S. GHG emissions by 6 percent per available room from 2004 to 2010
                                             ENERGY STAR® and Other Climate Protection Partnerships 2005 Annual Report 13

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                                          ENERGYSTAR
ENERGY  STAR  OVERVIEW

Investing in energy efficiency is a
strategic decision with many
benefits—saving money on utility
bills, avoiding emissions of criteria
air pollutants and greenhouse gases,
increasing domestic energy
reliability, and ensuring a more
balanced energy future. Since it was first introduced by
EPA in 1992 for energy-efficient computers, the
ENERGY STAR program has grown steadily in terms of
the energy efficiency solutions it offers, the breadth of the
organizations engaged in the partnership, and the benefits
delivered. And since 1996, the U.S. Department of
Energy (DOE) has joined with EPA to assume specific
ENERGY STAR program responsibilities. In 2005,
ENERGY STAR was specifically recognized in the Energy
Policy Act of 2005, which provides additional authorizing
language beyond Section 103(g) of the Clean Air Act and
other existing authorities (see sidebar on p. 16).

ENERGY STAR has  made tremendous progress in
overcoming informational, institutional, and practical
obstacles to greater investment in energy-efficient
technologies and practices. Even with the progress  made
to date, numerous opportunities still exist for cost-effective
energy efficiency investments in the residential, commercial,
and industrial sectors. Faced with the challenge of rising
energy prices, the nation's need for expanding investment
in energy efficiency is more critical than ever.

The ENERGY STAR program enables decisionmakers to
clearly identify the products, practices, services, homes,
and buildings that offer energy savings. ENERGY STAR
strategies have already resulted in substantial cost savings
for businesses and consumers, while diminishing the
market barriers that remain.

Achievements in 2005
• More than $12 billion saved by Americans on utility
  bills across the residential, commercial, and industrial
  sectors (see Table 1 on 2005 benefits, p. 3)
• 150 billion kilowatt hours (kWh) of energy saved, or
   about 4 percent of the total 2005 electricity demand,
   and 28 gigawatts (GW) of peak power avoided,
   equivalent to the generation capacity of 50 new power
   plants
• More than 34 million metric tons of greenhouse gas
   emissions avoided, equivalent to the GHG emissions
   from about 23 million vehicles (see Table 9)
• More than 2 billion ENERGY STAR qualified products
   purchased,5 spanning significant numbers of computers,
   other office equipment, lighting, consumer electronics,
   and other products (see Figure  5)
• More than half a million ENERGY STAR qualified
   new homes built, with about one in ten new homes in
   2005 earning the ENERGY STAR
• Billions of square feet of building space improved
• More than 60 percent awareness of the ENERGY
   STAR label among people in the United States
• More than 4 million visitors to the  ENERGY STAR
   Web site, while media articles mentioning ENERGY
   STAR qualified products, homes, and buildings had a
   reach of more than 1.1 billion consumers in 2005 (see
   Figure 6)
• 75 leading organizations recognized by EPA and DOE
   through ENERGY STAR annual awards (see p. 19)
The ENERGY STAR program now engages more than
8,000 manufacturers, retailers, service  providers, home
builders, energy consumers, and others to advance energy-
efficient products and services that lower energy bills and
benefit the environment. These partners include:
• About 1,500 manufacturers using the ENERGY STAR
   to distinguish the superior energy efficiency of more
   than 35,000 individual product models across more
   than 50 product categories, many carrying the brand
   names that today's consumers prefer. These products
   offer consumers savings that range from 5 to 90 percent
   relative to standard models and up to 30 percent savings
   in total on their household energy bills (see Table 12,
   p. 18).
• More than 800 retail partners bringing ENERGY STAR
   qualified products and educational information to their
   customers, representing a  more than 45 percent increase
   over 2004.
14
        5 This cumulative total includes product sales across the entire ENERGY STAR program, including those resulting from the efforts of the Department of Energy. The results for energy
         saved and the resulting environmental and economic benefits represent EPA efforts alone.

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                                                                                             ENERGY STAR OVERVIEW
TABLE 9. ENERGY STAR PROGRAM ACHIEVEMENTS EXCEED GOALS IN 2005
2005 2006
ENERGY SAVED
(BILLION KWH)

All Qualified Products1
Commercial Building
Improvements2
New Homes3
Industrial Improvements4
PROGRAM TOTAL
for ENERGY STAR
GOAL
—
—
—
—
116.8
ACHIEVED
68.3
71.7
1.0
10.2
151.26
EMISSIONS AVOIDED
(MMTCE)
GOAL
13.0
10.5
0.3
3.5
27.3
ACHIEVED
14.9
14.8
0.3
4.2
34.2
ENERGY SAVED
(BILLION KWH)
GOAL
—
—
—
—
130.0
EMISSIONS AVOIDED
(MMTCE)
GOAL
14.5
11.5
0.5
3.7
30.2
ACHIEVEMENTS BY PRODUCT TYPE

Consumer Electronics6
Residential Appliances7
Residential Office Equipment
Lighting
Heating and Cooling
All Residential Products
Commercial Appliances
Office Equipment
Commercial Lighting
Other
All Commercial Products
ENERGY SAVED 2005
(BILLION KWH)
9.3
0.6
9.5
7.0
3.8
30.2
0.9
34.6
1.5
1.1
38.2
EMISSIONS AVOIDED 2005
(MMTCE)
1.9
0.1
1.9
1.4
1.8
7.2
0.2
7.0
0.3
0.2
7.7
1 Results for qualified products from Webber et al., 2006.
2 Results from building improvements based on methodology presented in Horowitz, 2004.
3 Results for qualified homes from CPPD, 2006.
' Results from industrial improvements from ICF International, 2006.
8 The kWh savings imply peak demand savings of more than 28 gigawatts (GW), based on conservation load factors developed by LBNL (Koomey et al., 1990).
6 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.
Totals may not equal sum of components due to independent rounding.
	: Not applicable
FIGURE 5. OVERVIEW OF THE PRODUCTS
CONTRIBUTING TO 2 BILLION PURCHASES
OF ENERGY STAR PRODUCTS SINCE 1992
         *Excluding computers and monitors.
          Includes DOE managed products.
FIGURE 6. REACHING MORE CONSUMERS WITH THE ENERGY
STAR MESSAGE THROUGH PRINT MEDIA AND THE WEB
                                                                 2003
                            2004
2005
            I WEBSITE SESSIONS •CIRCULATION
                                                         ENERGY STAR® and Other Climate Protection Partnerships 2005 Annual Report 15

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          More than 2,500 builder partners constructing new
          homes that qualify for the ENERGY STAR in every
          state and the District of Columbia—saving homeowners
          money while maintaining high levels of comfort.
          About 2,500 private businesses and public sector
          organizations investing in energy efficiency and reducing
          energy use in their buildings and facilities.
          More than 30 states and more than 450 utilities and
          other energy efficiency program sponsors leveraging
          ENERGY STAR to improve the efficiency of
          government buildings and lower energy use among
          their customers.
          Hundreds of energy service providers, energy raters,
          architects and building engineers,  and financial lenders
          partnering with ENERGY STAR to make energy
          efficiency more widely available to consumers and
          businesses.
The program is also growing internationally. EPA has
engaged with government agencies in a number of
countries to promote certain ENERGY STAR qualified
products. These partnerships are intended to unify
voluntary energy efficiency labeling programs in major
global markets and make it easier for partners to
participate by providing a single set of energy efficiency
qualifications, instead of a patchwork of varying country-
specific requirements. The international partners include
Australia,  Canada, the European Union, Japan, New
Zealand, and Taiwan.

The ENERGY STAR program has grown substantially—
more products introduced, more specifications revised,
additional programs for specific industries, more partners
involved, and greater environmental and economic
benefits for all. Highlights since the year 2000 are presented
on page 17 in Table 10 and Table  11. Additional program
achievements within the residential,  commercial, and
industrial sectors  are presented in the sections that follow.
           ENERGY STAR PROGRAM PROVIDED ADDITIONAL AUTHORITIES UNDER EPACT 2005 (SECTION 131)

           (a) In General- There is established within the Department of Energy and the Environmental Protection Agency a voluntary
              program to identify and promote energy-efficient products and buildings in order to reduce energy consumption,
              improve energy security, and reduce pollution through voluntary labeling of, or other forms of communication about,
              products and buildings that meet the highest energy conservation standards.
           (b) Division of Responsibilities- Responsibilities under the  program shall be divided between the Department of Energy and
              the Environmental Protection Agency in accordance with the terms of applicable agreements between those agencies.
           (c) Duties- The Administrator and the Secretary shall-
                (1) promote ENERGY STAR compliant technologies as the preferred technologies in the marketplace for-
                    (A) achieving energy efficiency; and
                    (B) reducing pollution;
                (2) work to enhance public awareness of the ENERGY STAR label, including  by providing special outreach to small
                   businesses;
                (3) preserve the integrity of the ENERGY STAR label;
                (4) regularly update ENERGY STAR product criteria for product categories;
                (5) solicit comments from interested parties prior to  establishing or revising  an ENERGY STAR product category,
                   specification, or criterion (or prior to effective dates for any such product category, specification, or criterion);
                (6) on adoption of a new or revised product category, specification, or criterion, provide reasonable notice to
                   interested parties of any changes (including effective dates) in product categories, specifications, or criteria,
                    along with-
                    (A) an explanation of the changes; and
                    (B) as appropriate, responses to comments submitted by interested parties; and
                (7) provide appropriate lead time (which shall be 270 days, unless the Agency or Department specifies otherwise)
                   prior to the  applicable effective date for a new or a significant revision to a product category, specification, or
                   criterion, taking into account the timing requirements of the manufacturing, product marketing, and distribution
                   process for  the specific product addressed.
16

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                                                                                     ENERGY STAR OVERVIEW
TABLE 10. ENERGY STAR PROGRAM GROWTH SINCE 2000
  The ENERGY STAR Program has been substantially expanded since the end of 2000. Important program efforts include:
  Adding more than 15 new
  products to the ENERGY STAR
  family, with more under
  development.

  • Ceiling fans
  • Commercial fryers
  • Commercial hot food holding
   cabinets
  • Commercial solid door
   refrigerators and freezers
  • Commercial steam cookers
  • Cordless phones
  • Dehumidifiers
  • External power adapters
  • Geothermal heat pumps
  • Light commercial HVAC
  • Room air cleaners
  • Vending machines
  • Ventilating fans
Updating ENERGY STAR
specifications to more efficient
levels for more than 20 products,
with more underway.
• Ceiling fans
• Central air conditioners and air
 source heat pumps
• Clothes washers*
• Compact fluorescent light bulbs*
• Cordless phones
• Dehumidifiers
• Dishwashers*
• DVD products
• Exit signs
• Home audio
• Light commercial HVAC
• Monitors
• Refrigerators and freezers*
• Residential light fixtures
• TVs
• VCRs
• Ventilating fans
• Windows,  doors, and skylights*
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—with 9 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, food
processing, glass manufacturing,
petroleum, pharmaceutical, and
water/wastewater treatment
industries.
* DOE managed products

TABLE 11. ENERGY STAR KEY PROGRAM INDICATORS, 2000 AND 2005

Qualified Products
New Homes
Commercial Buildings
Industrial Improvements
ANNUAL RESULTS
INDICATOR
Products Sold**
Product Categories
Product Models
Public Awareness
Retailers (Partners)
New Homes Built**
Home Builders (Partners)
Buildings Benchmarked**
Buildings Labeled**
Building Types Eligible for Label
Industry Focuses
Energy Saved (kWh)
Avoided Emissions (MMTCE)
Net Savings ($)

600 million
40
11,000
40%
25
25,000
1,600
4,200
545
2
0
62 billion
15.8
$5 billion

2 billion
56
35,000
60%
800
520,000
2,500
26,000
2,500
11
8
150 billion
34
$12 billion
 1 Results are cumulative.
                                                    ENERGY STAR® and Other Climate Protection Partnerships 2005 Annual Report  17

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          TABLE 12. ENERGY STAR QUALIFIED PRODUCTS SAVE ENERGY
ENERGY STAR
PRODUCT CATEGORY
APPLIANCES
Clothes washers*
Dehumidifiers
Dishwashers*
Refrigerators & freezers*
Room air conditioners*
Room air cleaners
HEATING & COOLING
Air source heat pumps
Boilers
Ceiling fans
Central air conditioners
Furnaces
Geothermal heat pumps
Light commercial HVAC
Programmable
thermostats
Ventilating fans
HOME ELECTRONICS
Cordless phones
Combination units
DVD products
External power adapters
Home audio
Televisions
AVERAGE ENERGY
SAVINGS** ABOVE
STANDARD PRODUCT

35%
5%
25%
15%
10%
45%

15%
5%
45%
25%
15%
30%
N/A
N/A
70%

30%
30%
60%
35%
75%
25%
VCRs ^^fe 20% ~^^^^
ENERGY STAR
PRODUCT CATEGORY
HOME ENVELOPE
Insulation and air sealing
Roof products
Windows, doors, & skylights*
LIGHTING
Compact fluorescent
light bulbs (CFLs)*
Exit signs
Residential light fixtures
Traffic signals
OFFICE EQUIPMENT
Computers
Copiers
Fax machines
Monitors
Printers
Scanners
COMMERCIAL FOOD SERVICE
Commercial fryers
Commercial hot food
holding cabinets
Commercial solid door
refrigerators and freezers
Commercial steam cookers
OTHER
Transformers
Vending machines
Water coolers

AVERAGE ENERGY
SAVINGS** ABOVE
STANDARD PRODUC'

N/A
N/A
N/A

65%
9%
70%
90%

40%-80%
65%
40%
40%-85%
70% 1
75% 1

15%
60%
35%
55% |

25%
25%
45%
^^^"^
r














[
j










                                                                Ceiling fan with
                                                                qualified fixture/bulb
                                                                Room air cleaner
                                                                Floor torchiere
          *DOE managed products

          "Actual savings will vary by climate region and home characteristics.
18

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ENERGY STAR AWARD WINNERS
                                                                                           ENERGY STAR OVERVIEW
  SUSTAINED EXCELLENCE
  3M
  St. Paul, MN
  ASTORIA HOMES
  Las Vegas, NV
  CenterPoint Energy
  Houston, TX
  David Powers Homes
  Houston, TX
  Ence Homes
  St. George, UT
  Food Lion, LLC
  Salisbury, NC
  GE Consumer and Industrial
  Louisville, KY
  Giant Eagle, Inc.
  Pittsburgh, PA
  Gorell Enterprises, Inc.
  Indiana, PA
  Nevada ENERGY STAR Partners
  Las Vegas, NV
  New York State Energy
    Research and Development
    Authority
  Albany, NY
  Northeast ENERGY STAR
    Lighting and Appliance
    Initiative
  Lexington, MA
  OSRAM SYLVANIA
  Danvers, MA
  Pacific Gas and Electric Company
  San Francisco, CA
  Pardee Homes
  Los Angeles, CA
  Servidyne Systems, LLC
  Atlanta, GA
  Southern California Edison
  Rosemead, CA
  Southern California Gas
    Company
  Los Angeles, CA
  Toyota Motor Manufacturing
    North America, Inc.
  Erlanger, KY
  Transwestern Commercial
    Services
  Houston, TX
  TXU Electric Delivery ENERGY
    STAR® Homes Program
  Dallas, TX
  USAA Real Estate Company
  San Antonio, TX
  Veridian Homes
  Madison, Wl
  Whirlpool Corporation
  Benton Harbor, Ml
  Wisconsin Focus on Energy
  Madison, Wl
PARTNER OF THE YEAR-
RETAILER
The Home Depot
Atlanta, GA

PARTNER OF THE YEAR-
PRODUCT
MANUFACTURER
Good Earth Lighting
Wheeling, IL
Lithonia Lighting
Conyers, GA
Precision Entry,  Inc.
Sugarcreek, OH
Victory Refrigeration
Cherry Hill, NJ


EXCELLENCE  IN ENERGY
STAR OUTREACH
ACME Markets,  Inc.
Malvern, PA
Alliant Energy/MidAmerican
  Energy Company
Cedar Rapids, IA
Delta-Montrose  Electric
  Association (DMEA)
Montrose, CO
Energy Trust of Oregon, Inc.
Portland, OR
Governor Robert L. Ehrlich Jr.
  and the Maryland Energy
  Administration
Annapolis, MD
Kentucky Office of Energy Policy
Frankfort, KY
Lowe's
Mooresville, NC
Maytag Corporation
Newton, IA
National Grid
Westborough, MA
Nevada Power Company—
  Sierra Pacific Power Company
Las Vegas, NV
Sears, Roebuck  and Co.
Hoffman Estates, IL
PARTNER OF THE YEAR-
ENERGY MANAGEMENT
California Portland Cement
  Company
Glendora, CA
Ford Motor Company
Dearborn, Ml
Frito-Lay
Piano, TX
Gresham-Barlow School
  District 10Jt
Gresham, OR
Marriott International, Inc.
Washington, DC
Merck & Co., Inc.
Whitehouse Station, NJ
New York-Presbyterian Hospital
New York, NY


PARTNER OF THE YEAR-
SERVICE AND PRODUCT
PROVIDER
Avista Advantage
Spokane, WA
next>edge
Los Angeles, CA
Save More Resources, Inc.
Grand Junction, CO


PARTNER OF THE YEAR-
ENERGY EFFICIENCY
PROGRAM DELIVERY
Austin Energy
Austin, TX
New Jersey's Clean Energy
  Program, NJBPU
Newark, NJ
Puget Sound Energy
Bellevue, WA


EXCELLENCE IN
ENERGY-EFFICIENT
AFFORDABLE HOUSING
New Jersey Green Homes
  Office-NJ Department of
  Community Affairs
Trenton, NJ
PARTNER OF THE YEAR-
NEW HOMES
Anderson Homes, Inc.
Gary, NC
Aspen Homes of Colorado
Loveland, CO
Bosgraaf Homes
Holland, Ml
Bureau  Veritas
Piano, TX
D. R. Horton, Inc.-Sacramento
Gold River, CA
Energy  Sense
Houston, TX
Guaranteed Watt Saver
  Systems, Inc.
Oklahoma City, OK
Haven Properties, Inc.
Alpharetta, GA
Segal & Morel
Bridgewater, NJ
Southwest Home Energy Raters
El Paso, TX
TexEnergy Solutions, Inc.
Irving, TX
Winton/Flair Custom Homes
El Paso, TX
SPECIAL RECOGNITION-
EXCELLENCE IN
EFFICIENCY
Cathedral Square Corporation
Burlington, VT
Curtis Lumber Company, Inc.
Ballston Spa, NY
Fort Collins Utilities
Fort Collins, CO
Innovative Design, Inc.
Raleigh, NC
McCreary County Community
  Housing Development
  Corporation
Whitley City, KY
Piedmont Housing Alliance
Charlottesville, VA
Pinellas County Community
  Development Department
Clearwater, FL
Power Integrations, Inc.
San Jose, CA
                           Highlights of their 2005 Award winning activities may be found at energystar.gov/awards.
                                                        ENERGY STAR® and Other Climate Protection Partnerships 2005 Annual Report 19

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        ENERGY STAR  IN  THE
        RESIDENTIAL SECTOR
        Households are spending more on energy because of the
        rising prices for electricity, natural gas, and oil, and a
        growing number of consumers are seeking ways to control
        these costs. By looking to ENERGY STAR, households
        can reduce their energy use and save up to 30 percent, or
        $600 annually, on their utility bills. As demonstrated by
        recent sales figures, more and more consumers are relying
        on ENERGY STAR to help guide their purchasing
        decisions, save them money, and prevent greenhouse gas
        emissions—no matter whether they are replacing an old
        appliance, making home improvements, or buying a
        brand new home. EPA, through ENERGY STAR, assists
        consumers as they tackle decisions in each of these areas.
        Accomplishments for 2005 are highlighted below.

        ENERGY  STAR  Products for the  Home
        Each year, EPA expands the ENERGY STAR program to
        new products, updates the requirements for products to
        earn the ENERGY STAR where appropriate, ensures the
        ENERGY STAR mark is being used appropriately in the
        marketplace, and engages program partners in broad
        outreach efforts that help consumers find these products.
        Highlights of these activities for 2005 are described below:
        New ENERGY STAR Products. EPA continued its
        recent focus on energy efficiency in small household
        appliances, which is a  rapidly growing area of home
        energy use. In 2005, EPA established a new ENERGY
        STAR specification for external power adapters, which has
        the potential to improve the efficiency of millions of
        electronic products by about 35 percent, and was close to
        finalizing a specification for battery chargers. Battery
        charging systems are used to recharge a wide variety of
                         cordless products such as the power tools and small
                         household appliances found in most homes.
                         Raising the Bar for ENERGY STAR. Responding to
                         important changes in market conditions such as new
                         federal standards, increased market penetration, and lower
                         equipment costs, in 2005 EPA reviewed and revised
                         specifications for six ENERGY STAR residential product
                         categories to make them more stringent: air source heat
                         pumps, central air conditioners, cordless phones, cordless
                         phone/answering machine combination units,
                         dehumidifiers, and residential light fixtures. In 2005,
                         EPA also began revising the specification for imaging
                         equipment (copiers, printers, scanners, and fax machines)
                         and began the specification development process for
                         battery chargers. ENERGY STAR manufacturing partners
                         are also raising the bar, as highlighted in award summaries
                         on page 21.
                         Protecting  the  Integrity of the ENERGY STAR. EPA
                         continually undertakes efforts to maintain and enhance
                         the integrity of the ENERGY STAR label through a
                         variety of activities—including product testing, retail
                         shelf studies, product literature reviews, and logo-use
                         monitoring (in advertising and on product packaging).
                         In 2005, dehumidifiers were tested, and all models were
                         found to have presented accurate information and met or
                         exceeded the ENERGY STAR performance levels. This
                         brings the number of product categories that have recently
                         undergone off-the-shelf product monitoring to eight.
                         In addition, more than 2,000 pieces of in-store
                         ENERGY STAR focused materials, displays, and signage
                         were examined during the year, and more than
                         130,000 advertising clips were monitored. EPA reviewed
                         and updated products listed on the ENERGY STAR
                         Web site to ensure that listed models were available in
                         the marketplace.
          ENERGYSTAR
Powered by an
ENERGY STAR®
qualified adapter
for a better
environment
          On average, 5 to 10 power adapters are used in the
          typical U.S. home, and more than 1 billion new
          adapters are shipped worldwide each year.
                                                         External power adapters convert high-voltage AC electricity
                                                         from the wall outlet to low-voltage DC power that runs
                                                         popular electronic products.
                                                         PRODUCTS USING EXTERNAL POWER ADAPTERS
cell phones
PDAs
MP3 players
digital cameras
camcorders
laptops
Internet routers
power tools
power razors
shavers
clippers
toothbrushes
radios
answering machines
phones
and more
20

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                                                                 ENERGY STAR IN THE RESIDENTIAL SECTOR

TABLE 13. ENERGY STAR RESIDENTIAL PRODUCT SPECIFICATIONS ADDED, REVISED, AND IN PROGRESS
  PRODUCT CATEGORY

  2005 NEW SPECIFICATIONS
  External power adapters
  2005 REVISIONS COMPLETED
  Central air conditioners
  and air source heat pumps
YEAR INTRODUCED
AND (YEAR REVISED)
               STATUS OF ACTIVITY IN 2005
                                    New specification took effect 2005
1995(2002,2005)
EPA
Final revised specification to take effect 2006
  Clothes washers*
1997 (2005)
DOE
Final revised specification to take effect 2007
  Cordless phones
2002 (2005)
EPA
Final revised specification to take effect 2006
  Dehumidifiers
2001 (2005)
EPA
Final revised specification to take effect 2006
  Residential light fixtures
1997(2002,2003,
2005)
EPA
Final revised specification took effect 2005
  Windows, doors,
  and skylights*
1998(2003,2005)
  REVISIONS IN PROGRESS IN 2005
  Computers                  1992 (2006)
DOE
                     EPA
Final revised specification took effect 2005
               Revision starting in 2006
  Copiers
1995
EPA
Revision in progress
  Dishwashers*
1996(2006)
DOE
Revision in progress
  Furnaces
1995
EPA
Revision starting in 2006
  Printers and fax machines
1993, 1994
EPA
Revision in progress
  Programmable thermostats
1995
EPA
Revision in progress
  Roof products
1999 (2006)
EPA
Revision in progress
  Scanners                  1997
  NEW SPECIFICATIONS IN DEVELOPMENT
  Battery charging systems    2006
                     EPA
               Revision in progress
                                    New specification to take effect in 2006
1 DOE managed products.
  PARTNER OF THE YEAR—PRODUCT MANUFACTURER

  GOOD EARTH LIGHTING
  WHEELING, ILLINOIS
  Good Earth Lighting is recognized for outstanding achievements in advancing energy-efficient light
  fixtures. In 2005, Good Earth launched the first national ENERGY STAR programs at Lowe's and The
  Great Indoors, as well as conducting several regional retail torchiere events. One hundred percent of
  Good Earth's decorative lighting sales are ENERGY STAR qualified. In the past 2 years. Good Earth
  has achieved 50-percent growth in ENERGY STAR unit shipments and a 90-percent increase in the
  number of qualified models. Additional accomplishments include introducing millions of Lowe's
  customers to the  ENERGY STAR "Change a Light, Change the World" campaign message and incorporating
  advanced lamp technologies into its product line and the retail replacement market. For 13 years. Good Earth has
  steadfastly integrated  ENERGY STAR into its overall business planning.

  LITHONIA LIGHTING
  CONYERS, GEORGIA
  Lithonia Lighting, North America's largest manufacturer of lighting equipment, significantly
  increased its promotion of energy-efficient products in 2005. Sixty-two percent of Lithonia's
  consumer models are  ENERGY STAR qualified, including more than 90 percent of its new
  models. In 2005, 38 percent of Lithonia's total consumer product sales were ENERGY STAR
  qualified models.  Lithonia also expanded its consumer education by dedicating an entire panel of its new 4-color
  packaging to the ENERGY STAR message in English, French, and Spanish. The ENERGY STAR qualified Ferros
  fixture family took 1st  Place at the American Lighting Association/Consortium for Energy Efficiency (ALA/CEE)
  design competition in the Indoor Fixture Category. In 2005. Lithonia expanded qualified fixture availability at 1,800
  Home Depot stores, 150 Ace Hardware stores, and hundreds of lighting showrooms.
                                                              L/THON/A
                                                              LIGHTING.
                                                          ^
                                                           A?«Staj«ySrarxfe Gxrpary
                                                    ENERGY STAR® and Other Climate Protection Partnerships 2005 Annual Report 21

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       Public Outreach with Key Partners. Educating
       consumers about the environmental and financial
       benefits of ENERGY STAR qualified products is a core
       activity of the program. The 2005 ENERGY STAR
       campaigns and public service announcements (PSAs)
       reached millions of people through TV, magazine, radio,
       and other media outlets:
       • ENERGY STAR Change a Light, Change the
          World Campaign. EPA, DOE, and more than
          30 governors across the country marked October 5,
          2005 as "ENERGY STAR Change a Light Day" to
          highlight the savings from the simple act of changing
          one light at home. With a total of more than
          100 million media impressions, the 2005 outreach
          campaign experienced unprecedented coverage, with a
          nearly 500-percent increase in advertising equivalency
          over the previous year. The 2005 campaign included an
          on-line "pledge" to change one light that secured more
          than 70,000 pledges in all 50 states during fall 2005-
          (For more information, see p. 23.)
       • The ENERGY STAR Cool Your World Campaign,
          promoting energy-efficient cooling for summer, also
          enjoyed exceptional media coverage in 2005- The
          campaign reached consumers through placements in
          Redbook, Southern Living, and Newsweek magazines, in
          addition to newspaper placements in a number of top
          markets—Dallas, Chicago, Washington, DC, Baltimore,
          Charlotte, Detroit, and Cleveland. Cool Your World
          radio spots and television placements had an overall
          reach of 58 million consumers.
I The 2005 ENERGY STAR First Frost Campaign
 presented practical steps consumers could take to
 prepare for the winter heating season. The campaign
 garnered more than 800 placements of ENERGY
 STAR tips, including in Real Simple, US News & World
 Report, House Beautiful, and Good Housekeeping. With
 the addition of radio spots and television, the First Frost
 campaign had a reach of more than 35 million
 Americans.
I New Orleans Radio PSA. In November 2005,
 Entergy, an ENERGY STAR utility partner that services
 New Orleans, requested EPA's assistance with public
 outreach to promote energy efficiency as residents of
 New Orleans and other storm-struck areas began
 rebuilding their homes. EPA developed and distributed
 a radio PSA urging homeowners to make smart energy
 decisions and to consider purchasing ENERGY STAR
 qualified products for their homes and offices as they
 replaced what was lost to Hurricane  Katrina. The PSA
 drove consumers to ENERGY STAR's home page,
 where they found a link to a special "Hurricane Help"
 page offering information on ENERGY STAR
 products, home improvement/rebuilding tips, and other
 helpful information. The radio PSA was released in
 December 2005- More than 80 radio stations in
 Louisiana, Texas, Mississippi, and Alabama committed
 to playing the PSA.
         PARTNER OF THE YEAR—RETAILER
         THE HOME DEPOT
         ATLANTA, GEORGIA
         In 2005, The Home Depot's goal was to be the leader in ENERGY STAR marketing, raising its outreach
         to a level of comprehensiveness and sophistication that would be unparalleled in the marketplace.
         Not only does The Home Depot carry more ENERGY STAR qualified product models and sell more of
         these products than any other retailer, but at every opportunity—on store signage, in brochures, in
         advertising, and on its Web site—The Home Depot links these products with how to save energy with
         ENERGY STAR. 2005 highlights  include a dedicated ENERGY STAR TV ad, comprehensive in-store
         signage, and several brochures  on how to save energy with ENERGY STAR. With impressive sales results of
         34 million ENERGY STAR qualified products and billions of consumer impressions through energy savings
         education. The Home Depot has helped customers save more than $7.4 million dollars and prevented greenhouse
         gas emissions equivalent to those from more than 100,000 vehicles, demonstrating that we should all "Follow
         the STAR for Savings."
22

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                                                                  ENERGY STAR IN THE RESIDENTIAL SECTOR

2005 ENERGY STAR CHANGE A LIGHT, CHANGE THE WORLD CAMPAIGN PROVES TO BE A BRIGHT IDEA
      Take Hie ENERGY SUW
    Change a Light
            Pledge
            iANGEALIGHT
          j CHANGE THE WORLD
           ENERGY STAR
EPA Administrator Stephen L.
Johnson kicked off the 6th
annual ENERGY STAR Change
a Light, Change the World
Campaign on October 5, 2005,
when he helped launch the
ENERGY STAR Change a Light
Pledge and called on everyone
in the United States to help
change the world, one light—
one energy-saving step—at a
time. EPA, DOE, and more than
   30 governors across the country marked October 5 as
   "ENERGY STAR Change a Light Day."
   The 2005 Campaign capitalized on strong public-private
   partnerships to educate the public about the
   environmental and monetary benefits of ENERGY STAR
   qualified lighting. Nearly 300 participating organizations
   leveraged the national platform and campaign materials
   to develop innovative in-store promotions, public
   events, compact fluorescent light (CFL) fundraisers, and
   school activities. Through partnerships with the retail,
   regional energy efficiency program sponsor,
   manufacturer, government, school, non-profit, and
   industrial sectors, the 2005 campaign message reached
   a broader audience than ever before.
   With the support of EPA and partner organizations,
   more than  70,000 people in all 50 states and several
   U.S. territories participated in the 2005 Change a Light
   Pledge. All together, the 2005 pledges would prevent
   the release of 33 million pounds of greenhouse gas
   emissions into the atmosphere, demonstrating that
   small changes by individuals really do add up to a
   significant, positive change for the environment. And
   at a time of rising energy costs, the 23 million kWh of
electricity savings also translates into significant utility
bill savings for consumers.
The 2005 collaborative campaign also experienced
unprecedented media coverage, generating more than
100 million earned media impressions. Articles
mentioning the ENERGY STAR Change a Light, Change
the World Campaign appeared in Newsweek, USA
Today, The Wall Street Journal, and U.S. News and
World Report, while radio listeners heard the campaign
message through more than 950 radio spots, including
a National  Public Radio interview with EPA
Administrator Johnson on Change a Light Day. Retail,
utility, and manufacturing partners supported the
campaign by running print advertisements during
October and November.
EPA raised the visibility of the ENERGY STAR Change a
Light, Change the World Campaign through a print
public service announcement (PSA) that ran in a
number of major publications, including Time and
Discover. A Spanish version of the PSA ran in 18
publications in New York, Chicago, Texas, New Mexico,
and Washington, D.C. Additionally, EPA distributed
240,000  "Go Cards" introducing the campaign to cafes,
college student unions, dining halls, retailers, and
restaurants in the country's top college markets.
To build on the success of 2005, EPA intends to expand
the Change a Light "community," with a goal of
encouraging at least 500,000 people to take the Pledge
starting  in  October 2006. For the first time,
organizations can play a more active role by setting
their own Pledge goal and inviting their community to
join the  ENERGY STAR campaign. One energy-efficient
light at a time, the ENERGY STAR Change a Light,
Change the World Campaign is demonstrating that
making a difference can be as simple as replacing a light.
FIGURE 7. STATES PROMOTE ENERGY STAR CHANGE A LIGHT, CHANGE THE WORLD IN 2005
                                                                                 STATES THAT PARTICIPATED
                                                                                 IN CHANGE A LIGHT THROUGH
                                                                                 THE GOVERNOR'S OR FIRST
                                                                                 LADY'S OFFICES
                                                     ENERGY STAR® and Other Climate Protection Partnerships 2005 Annual Report 23

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        Home Improvement Through
        ENERGY STAR
        There are many low-cost steps homeowners can take to
        increase their comfort and reduce their energy bills that
        go beyond the purchase of ENERGY STAR qualified
        products. EPA has been making progress in the
        following areas:
        Home Performance with ENERGY STAR. EPA
        continues to promote Home Performance with ENERGY
        STAR to homeowners who want to retrofit their homes
        for improved energy efficiency. Home Performance with
        ENERGY STAR is a whole house improvement program
        that emphasizes a home diagnostic evaluation and
        improvements made by a trained technician, coupled with
        a strong quality assurance program administered by a
        regional sponsor.
        To accomplish this, EPA, along with DOE, works with
        organizations that evaluate the credentials and expertise of
        technicians and  contractors who offer third-party home
        performance verification to homeowners. EPA funds the
        Building Performance Institute (BPI)—a national
        technician certification and contractor accreditation
        organization—jointly with DOE and HUD so that BPI
        may provide the necessary quality assurance for home
        performance contracting programs such as Home
        Performance with ENERGY STAR.
        • The number of state and local partners involved in
         Home Performance with ENERGY STAR grew to
          14 sponsors in 2005 (see Figure 8).
        • The New York State Energy Research and Development
         Authority (NYSERDA) and the state of New York lead
         the way in promoting whole house retrofits under
         Home Performance with ENERGY STAR.
        • By the end of 2005, ENERGY STAR partners  had
         retrofitted almost 16,000 homes. These homes  are
         delivering up to 40 percent savings on energy bills for
         their owners,  as measured by regional implementing
         programs.
Proper HVAC Installation. Without proper installation,
HVAC equipment may not perform as well as expected
(see Figure 9). Some studies indicate that more than half
of all central air conditioners may be installed improperly.
During 2005, EPA explored various labeling schemes for
ENERGY STAR qualified HVAC systems to promote
proper equipment  installation. In response to the growing
importance of proper installation and maintenance of
HVAC equipment, EPA supported and participated in an
industry-led effort  to define the requirements for proper
HVAC installation. The Air Conditioning Contractors of
America (ACCA),  in conjunction with the Consortium
for Energy Efficiency (GEE), led this important effort.
These specifications are serving as the basis for an
ENERGY STAR proper HVAC installation pilot program
in 2006 in California.
Home Sealing with Major Retailers. ENERGY
STAR Home Sealing is 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. National retailers Lowe's and The Home Depot
aggressively promoted ENERGY STAR Home Sealing
during their fall campaigns to help homeowners
weatherize their homes for the coming winter. Through
in-store clinics, store-wide broadcast announcements, and
aisle end-cap promotions, more than 700 million
consumer impressions were generated by The Home
Depot and Lowe's.
Teaming up with DOE and HUD. In 2005, EPA
teamed up with DOE and HUD to announce the
Partnerships for Home Energy Efficiency (PHEE)—a
joint effort to  improve the energy efficiency of the nation's
housing stock by 10 percent by 2015- A 10-percent
savings would total almost $20 billion a year, help increase
the affordability and comfort of homes, and reduce
demand for natural gas by more than one quad, among
other benefits. This partnership draws  upon the strengths
of the three agencies across four goals:  (1) Expand
efforts to promote  ENERGY STAR qualified products,
(2) Develop new energy efficiency services to provide
homeowners with  greater savings, (3) Promote energy
efficiency in affordable housing, and (4) Continue to
invest in innovative research on building science
technologies, practices, and policies.
24

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                                                                ENERGY STAR IN THE RESIDENTIAL SECTOR

FIGURE 8. HOME PERFORMANCE WITH ENERGY STAR SPREADS ACROSS THE COUNTRY
                                           NORTH DAKOTA
                                           SOUTH DAKOTA
                                                                                PENNSYLVANIA
                                                                            WEST VIRGINIA

                                                                                VIRGINIA
                                                                               NORTH CAROLINA
                                                                                        DELAWARE

                                                                                        MARYLAND
                                                                    ALABAMA   GEORGIA
              States with Established
              Home Performance with
              ENERGY STAR Programs
      METRO Areas with Established     •// States and Metro Areas
      Home Performance with             Launching Home Performance
      ENERGY STAR Programs             with ENERGY STAR Programs
FIGURE 9. QUALITY INSTALLATION DELIVERS MORE COOLING
            QUALITY
            INSTALLATION
LOW AIRFLOW
LOWAIRFLOW +
IMPROPER CHARGE
LOWAIRFLOW +
IMPROPER CHARGE +
DUCT LEAKAGE
                                                    ENERGY STAR® and Other Climate Protection Partnerships 2005 Annual Report 25

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        ENERGY STAR New Homes
        2005 was an important year for ENERGY STAR qualified
        new homes as the program hit major milestones. EPA
        completed the first revision of the requirements for new
        homes to earn the ENERGY STAR, enhanced the quality
        control involved in awarding a home the ENERGY
        STAR, and coordinated with green building groups.
        Highlights of these activities are described below:
        Major Program Milestones. By the end of 2005, more
        than half a million American households, 40 percent more
        than the prior year, had purchased ENERGY STAR
        qualified homes (see Figure 10). These homeowners are
        saving more than $120 million annually on their energy
        bills. Furthermore,  about 10 percent of new homes
        constructed in 2005 earned the ENERGY STAR, with
        homes now available in every state and the District of
        Columbia. Fourteen states are seeing more than 10 percent
        of their new housing starts be ENERGY STAR qualified
        (see Figure 11). In 2005, Nevada had 42 percent market
        penetration, New Jersey 36 percent, Texas 31 percent, and
        California 12 percent.  In Las Vegas, market penetration
        reached 55 percent of the 35,000  new homes constructed
        in 2005-
        Updated Specification for ENERGY STAR New
        Homes. EPA completed the first  ever revision of the
        ENERGY STAR new homes specification in response to
        the program's progress, increased energy efficiency levels
        required in the updated national energy code, and
        adopted more stringent HVAC equipment standards.
        Under the new guidelines, homes that earn  the ENERGY
        STAR are at least 15 percent more energy efficient than
        homes built to the 2004 International Residential Code
        (IRC). By January 2007, all new ENERGY STAR
        qualified homes must be constructed in accordance with
        the new guidelines. They include several new energy-
        saving requirements for ENERGY STAR products and
        appliances because these products can account for as much
        as 50 percent of a home's energy consumption. The
        guidelines also require  Home Energy Raters to safeguard
        against any major gaps in the home's air barrier and
        perform an inspection  of the home's insulation. These
        areas are common causes of comfort problems and higher
        than necessary energy bills for homeowners.
Promoted Additional Opportunities for Energy
Savings. EPA encouraged ENERGY STAR builder
partners to offer the Advanced Lighting Package, an
upgrade package that more than 170 builders are
recommending to home buyers to save energy and money.
EPA estimates that in 2005 the Advanced Lighting
Package saved more than 100,000 kWh.
Quality Control. EPA continues to work to ensure that
homeowners receive the value of ENERGY STAR when
purchasing a new home. Under the new specification for
new homes developed during 2005, ENERGY STAR will
require in 2006 that Home Energy Raters, when
qualifying ENERGY STAR new homes, complete a
Thermal Bypass Checklist6 to safeguard against any major
gaps in the home's air barrier that are  inadvertently missed
by the builders. Such gaps  can lead to comfort problems
for homeowners and could potentially lead to structural
problems. Inspection of the installation of insulation is  a
key component of the Checklist. If insulation is
improperly installed with voids between the studs and
rafters and compression of batts, the insulation will not
adequately insulate up to its stated R-value,7 a common
problem with new homes. This requirement bolsters the
ENERGY STAR promise for quality homes.

Third-party verification continues to be an important
attribute of ENERGY STAR. For the new homes
program, EPA relies on the Home Energy Rater network
to inspect new homes to determine whether they meet the
ENERGY STAR new homes specification. Over the past
year, EPA has worked with the Residential Energy Services
Network (RESNET), the accrediting body for the raters,
to enhance its oversight of these raters and their rating
providers to ensure that they meet the necessary standards
and qualifications to evaluate whether a home qualifies  as
ENERGY STAR.
26
        6 The Thermal Bypass Checklist is a 16-point list of building details where thermal bypass, or movement of heat around or through insulation, frequently occurs due to missing air
         barriers or gaps between the air barrier and insulation. Reducing thermal bypasses is important as they can lead to comfort and warranty issues as well as higher utility bills.
        ^ Insulation is rated in terms of thermal resistance, called R-value, which indicates the resistance to heat flow. The higher the R-value, the greater the insulating effectiveness. The
         R-value of thermal insulation depends on the type of material, its thickness, and density. Installing more insulation in your home increases R-value and the resistance to heat flow.

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                                                                ENERGY STAR  IN THE RESIDENTIAL SECTOR

FIGURE 10. A DECADE OF GROWTH FOR ENERGY STAR QUALIFIED NEW HOMES
   500,000

   450,000

   400,000

   350,000

   300,000

   250,000

   200,000
en
|  150,000
3C
o  100,000
tr.
I  50,000
Z3
Z
       0
          1996
                               i CUMULATIVE HOMES BUILT
                               I ANNUAL HOMES BUILT
                                                                  z
1997      1998       1999      2000       2001
                                                                   2002       2003
2004       2005
FIGURE 11. ENERGY STAR QUALIFIED NEW HOMES GAINING MARKET SHARE

The state index is a comparison of the number of ENERGY STAR qualified new homes built to the number of
privately owned housing units permitted in each state and the District of Columbia. Each state's index is a
measurement of ENERGY STAR'S presence in the site-built, single-family  new homes market for that state. It does
not measure other energy efficiency efforts within the state. ENERGY STAR, in partnership with stakeholders,
achieved an average national market presence in the new homes sector of nearly 10% in 2005.
             WASHINGTON
                                                     Increasing Participation
                                           -; l
                                           -
                                                                        10-20%    >20%
                                                   ENERGY STAR® and Other Climate Protection Partnerships 2005 Annual Report 27

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                                           ENERGY STAR
                                           INDOOR AIR PACKAGE
Indoor Air Quality and Green Building Programs.
In 2005, EPA advanced efforts to
bring improved indoor air quality
into new homes and ensure that
green homes are energy-efficient
homes. For example, EPA finalized
an Indoor Air Package that
complements the ENERGY STAR
label for qualified homes. The
package includes seven specific construction practices and
associated specifications, ranging from moisture control,
HVAC system sizing, and combustion system measures to
building materials, radon and pest control, and home
commissioning. While these new requirements cannot
guarantee good indoor air quality, they do provide a path
to a better indoor environment. In addition, EPA worked
with the U.S. Green Building Council (USGBC) to see
that the specification for ENERGY STAR qualified homes
would be a requirement for the Leadership in Energy and
Environmental Design (LEED) for Homes certification—
underscoring the significance of energy efficiency in any
green building program. LEED for Homes also
incorporated EPA's Indoor Air Package specifications and
the ENERGY STAR Advanced Lighting Package into the
point system used to qualify LEED homes.

Recognition for Outstanding Builder Partners.
Builders maintained their strong enthusiasm for ENERGY
STAR qualified new homes. In 2005, EPA recognized six
builders for their continued excellence and support for
ENERGY STAR. ASTORIA HOMES, David Powers Homes,
Ence Homes, Pardee Homes, Veridian Homes, and the
Nevada ENERGY STAR Partners received EPA's Award
for Sustained Excellence (see p. 29). These six partners
have won Partner of the Year at least twice before, and
some three times. In addition, EPA welcomed Anderson
Homes, Aspen Homes, Bosgraaf Homes, Haven
Properties, Segal &  Morel, and Winton/Flair Custom
Homes as first time winners of the ENERGY STAR
Partner of the Year for New Homes. EPA also recognized
D.R. Horton (Sacramento)  for the second year in a row
(seep. 19).
What to Expect in  2006 and Beyond
Across the Residential Sector
In 2006, EPA will continue to deliver savings to
consumers through ENERGY STAR qualified products,
new homes, and home performance. These residential
sector programs will:
• Update energy efficiency specifications for more
   products, including those for imaging equipment
   (copiers, printers, fax machines, scanners), computers,
   and furnaces. EPA will add battery chargers to the suite
   of ENERGY STAR qualified products.
• Continue to build consumer awareness of ENERGY
   STAR. EPA will continue to coordinate national,
   seasonal outreach campaigns featuring products of
   interest in the relevant season (e.g. lighting products in
   the fall and cooling products in the spring/summer).
   The goal is  to raise awareness of the ENERGY STAR
   label as the  trusted 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 2006, EPA expects 175 million
   ENERGY STAR qualified products to be sold.
• Complete the transition to the updated ENERGY
   STAR qualified new home specification that takes effect
   nationwide starting January 2007- Various workshops
   are scheduled across the  country to help with the
   changeover.
• Exceed the 2005 market penetration number for new
   homes and add more than 180,000 qualified homes
   in 2006.
• Work with partners retrofitting another 10,000 existing
   homes under Home Performance with ENERGY STAR.
• Roll out and monitor three to five pilot projects that
   demonstrate a new ENERGY STAR service for proper
   installation  of HVAC equipment.
• Continue efforts to maintain the  integrity of the
   ENERGY STAR name and logo, as required under
   the Energy Policy Act of 2005 among other laws, and
   provide a new report on these efforts.
28

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            ENERGY STAR IN THE RESIDENTIAL SECTOR
                       www.AsTORIAHoMES.com
                          More for Your Money,'
SUSTAINED EXCELLENCE AWARD WINNERS

ASTORIA HOMES
LAS VEGAS, NV
ASTORIA HOMES, winner of the ENERGY STAR Award for the third time, was
recognized for its continued, outstanding commitment to delivering and
promoting ENERGY STAR qualified homes in the Las Vegas market. In 2005,      	
more than 900 ASTORIA HOMES earned the ENERGY STAR label, bringing its
total to more than 3,600 qualified homes. ASTORIA'S philosophy is to build the highest quality yet attainable
homes in Las Vegas by offering "More for Your Money." Building 100 percent ENERGY STAR qualified homes
provides "More Quality and  More Savings" for the homebuyer while protecting the environment. ASTORIA HOMES
uses the ENERGY STAR logo in all point-of-sale materials and ads, on signs and billboards, on its Web site, and in
direct  mail pieces. The company also created a homeowner welcome gift basket containing ENERGY STAR
qualified lighting and educational pieces. ASTORIA continuously trains its sales agents on the features and
benefits of ENERGY STAR qualified homes and has been instrumental in the success of the Nevada ENERGY
STAR  Partners group.


DAVID POWERS HOMES
HOUSTON, TX
David  Powers Homes, an ENERGY STAR Award winner for the third consecutive year, was
recognized for its continued, outstanding commitment to ENERGY STAR in the Houston         _ DAVID
market. David Powers Homes was one of the first builders in Houston to become an ENERGY    _
STAR  partner and to commit to building 100 percent of its homes to ENERGY STAR                   HOMES
performance levels. In 2005, 511 David Powers homes  earned the ENERGY STAR label, bringing
its total to more than 1,500 qualified homes. From the  corporate level to the consumer, education and awareness
of ENERGY STAR remains a strong priority for the company. The result of these efforts means that David Powers
Homes enjoys strong consumer awareness among those who view the company as not  only a quality builder, but
also a true leader in energy efficiency. Since becoming an ENERGY STAR partner in 2000, David Powers Homes
has seen a 120-percent increase in new homes sales, a 95-percent increase in traffic into model homes, and a
52-percent increase in realtor co-op sales—proving that energy efficiency is good business.


ENCE  HOMES
ST. GEORGE, UTAH
Ence Homes, an ENERGY STAR partner since 1998 and a four-time ENERGY STAR Award
winner, was recognized for its continued, outstanding commitment to ENERGY STAR in
the Utah market. From the start, Ence has built 100 percent of its homes to ENERGY STAR
performance levels and actively promoted the program. In 2005, 400 Ence Homes earned
the ENERGY STAR label, bringing its total to nearly 1,800 qualified homes. All of the
company's collateral material carries the ENERGY STAR logo, including newspaper and magazine ads, in-house
flyers, inventory booklets, price sheets, maps, brochures, banners, construction signs, and billboards. Ence
Homes places a brass plaque with the ENERGY STAR logo on all new homes and includes information on
ENERGY STAR  in the homeowner's manual. Ence Homes is "on the Utah map" thanks to its advertising  and
promotional efforts; its dedication to energy-efficient, quality building standards;  and the awards bestowed by
EPA. In 2005, Ence Homes received the 2-10 Home Builder's Warranty Award, which is the highest award given
for superior customer service and home warranty performance in the nation. Ence's home sales in  2005
surpassed all other years.

Highlights of more 2005 Award winners may be found  at energystar.gov/awards.
ENERGY STAR® and Other Climate Protection Partnerships 2005 Annual Report 29

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        ENERGY  STAR  IN  THE

        COMMERCIAL  SECTOR
        Since the early 1990s, EPA has promoted energy efficiency
        in commercial buildings. Through their ENERGY STAR
        partnership, businesses and organizations of all sizes
        benefit from energy efficiency resources and guidance that
        help inform their decisions, enabling them  to make cost-
        effective investments and reduce their energy use by as
        much as 30 percent. Central elements of EPA's efforts
        include promoting energy management as a strategic
        business objective and promoting performance
        benchmarking of building energy use to help energy
        users target their investments. In 2005, EPA made great
        progress in partnering with national organizations, states,
        and others to encourage these practices, in recognizing
        excellence in energy management, and in encouraging
        service providers to offer building energy benchmarking
        as a part of their services.

        Achievements in 2005
        Growing the Partnership. In 2005, more businesses
        and organizations partnered with EPA to pursue superior
        energy management approaches. They include:
        • More than 1,500 commercial, public, and industrial
          organizations that have committed to adopting an
          energy management approach by partnering with
          ENERGY STAR; school districts represented the largest
          number of new partners in 2005-
        • ENERGY STAR partners representing about
          11 billion square feet of building space across the
          country and approximately 16 percent of the
          commercial building market.
        • More than 900 Service and Product Providers (SPPs)
          and nearly 70 utility and energy efficiency program
          administrators partnering with EPA to offer energy
          efficiency services to users working toward energy savings
          goals and public programs linked to ENERGY STAR.
        • Over 1,100 small businesses and congregations in the
          ENERGY STAR network and about  11,000 monthly
          Web site visitors finding tailored energy efficiency
          guidance and solutions.
Challenging Building Owners to Save 10 Percent
Or More. In 2005, EPA announced a new national
ENERGY STAR campaign in coordination with key
professional associations and states. The ENERGY STAR
Challenge is a call to action for building owners and
operators to implement energy efficiency measures and
reduce energy use by 10 percent or more. EPA estimates
that if each building owner met this challenge, by 2015
Americans would reduce greenhouse gas emissions by
more than 20 MMTCE—equivalent to the emissions
from 15 million vehicles—while saving about $10 billion.

By year end, more than half of the states and the District
of Columbia—along with more than 20 major associations
whose members manage many of the nation's office
buildings, schools, hospitals, and other commercial
facilities—were participating in the Challenge (see Figure
12 and Table 14). These associations and states are
encouraging their members to benchmark the energy
use of their buildings, set an energy savings target of
10 percent or more, and make the investments necessary
to achieve this goal. In addition, many of them are
undertaking efforts, in conjunction with EPA, to train
their members on how to achieve their goals. For example:
• BOMA (the Building Owners and Managers
  Association International)—which represents 9 billion
  square feet of office space across the country—launched
  its Building Energy Efficiency Program (BEEP)  and
  offered Web-based benchmarking training that is
  expected to reach thousands of building managers with
  significant benchmark activity in most states.
• Ten leading associations representing state  school
  boards, superintendents, principals, facility planners,
  parents, and teachers joined with EPA to address critical
  energy issues in our nation's K-12 schools.  Through the
  ENERGY STAR Challenge, these groups are helping
  school decisionmakers assess how much energy school
  districts currently use, establish efficiency improvement
  goals of 10  percent or greater district wide, and make
  efficiency improvements wherever cost-effective.
These association-led outreach and training efforts are
producing the tools and information that building owners
and managers need to control their energy costs.
30

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                                                                ENERGY STAR IN THE COMMERCIAL SECTOR
FIGURE 12. STATES COMMITTED TO THE ENERGY STAR CHALLENGE THROUGH 2005
                                                                              PARTICIPATING STATES 2005
TABLE 14. KEY ASSOCIATIONS COMMITTED TO THE ENERGY STAR CHALLENGE THROUGH 2005
  Alliance to Save Energy (ASE)
  The American Hotel & Lodging Association (AH&LA)
  The American Society for Healthcare Engineering of the
    American Hospital Association (ASHE)
  The American Solar Energy Society (ASES)—Legacy
    Schools Program
  The Association of Energy Engineers (AEE)
  Association of School Business Officials (ASBO)
    International
  Building Owners & Managers Association International
    (BOMA)
  The Business Council of Fairfield County, Connecticut
    (SACIA)
  Council of Educational Facility Planners International
    (CEFPI)
  Council of the Great City Schools
  Food  Marketing Institute (FMI)
  National Association of Counties (NACo)
  The National Association of Elementary School Principals
    (NAESP)
The National Association of Energy Service Companies
   (NAESCO)
The National Association of Secondary School Principals
   (NASSP)
The National Association of State Energy Officials
   (NASEO)
The National Energy Education Development (NEED)
   Project
The National Energy Foundation (NEF)
National Parent Teacher Association (PTA)
The National School Boards Association (NSBA)
North East Sustainable Energy Association (NESEA)
Public Technology Institute (PTI)
The Real Estate Roundtable
Sustainable Buildings Industry Council (SBIC)
United States Telecom Association (USTA)
                                                    ENERGY STAR® and Other Climate Protection Partnerships 2005 Annual Report 31

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        Recognizing Excellence in Efficient Buildings and
        Energy Management. As a critical element of its
        commercial building program, EPA offers ENERGY
        STAR recognition for leadership in energy efficiency. This
        recognition is available for individual buildings that are
        energy efficient, for organizations that demonstrate
        superior energy management by meeting energy saving
        milestones across their entire portfolio of buildings, and
        for a select number of organizations each year that stand
        out within their sector.
        Businesses and public institutions can earn the ENERGY
        STAR to distinguish highly efficient buildings based on
        EPA's building energy performance rating system, which
        also meet industry standards for indoor air quality. These
        buildings consume about 35 percent less  energy than typical
        buildings while providing comparable comfort and services.
        2005 highlights are described below:

        • More than 2,500  buildings (representing 480 million
          square feet)  earned the ENERGY STAR for superior
          energy and environmental performance, saving their
          owners an estimated $350 million annually on energy
          relative to typical  buildings (see Figure 13).

        • More than 400 buildings, double the  number from the
          previous year, have demonstrated sustained energy
          performance by qualifying for the ENERGY STAR for
          2 years or more.

        • Food Lion was recognized as the first  organization to
          earn its 400th ENERGY STAR label, representing the single
          largest number of labels earned by any one partner.

        • More than 200 schools earned labels in 2005, with the
          San Diego City Schools qualifying for over 100 labels.

        • The hotel sector was strongly represented by Marriott
          International, which earned almost 150 ENERGY
          STAR labels.

        In addition, more organizations were recognized as
        ENERGY STAR Leaders in 2005 bringing the total to
        20. These organizations achieved a 10, 20, or 30  percent
        improvement across all their buildings or an average
        portfolio-wide rating of 75 or better. They include school
        districts, hospitals, supermarkets, hotels, banks, and
        commercial real estate companies and are leading
        examples of how to meet or better the ENERGY STAR
        Challenge (see Table 15).
EPA also recognized 10 organizations for their efforts in
2005 with the ENERGY STAR Partner of the Year Award
for energy management (see p. 19 and p. 37). These
organizations included a school district, hospital, and
hotelier, as well as service and product providers. Seven
more organizations were recognized for Sustained
Excellence for demonstrating continued significant energy
reductions, building upon prior achievements, and going
beyond "program maintenance."

Building Benchmarking Gaining Momentum.
Knowing "you cannot manage what you cannot measure,"
EPA released an energy performance rating system for
commercial buildings in 1999- This system compares the
energy use of individual buildings against the national
stock of similar buildings using a 1 to 100 point rating
scale, and it shows building owners and managers whether
a building is operating at an efficient level or if it may
be a  strong candidate for cost-effective efficiency
improvements. Highlights for 2005 are described below:

• The number of buildings whose energy use has been
   assessed using EPA's energy performance rating system
   continued to grow, increasing by about 20 percent over
   2004 (see Figure 13). The  rating system has been used
   to evaluate about 26,000 buildings, including 38% of
   hospital space across the country, 25% of office building
   space, 24% of supermarket space, 15% of school space,
   and 14% of hotel space, with significant benchmark
   activity in most states  (see  Figure 14, p. 35).

• EPA launched a new feature to make energy
   benchmarking easier for owners of large building
   portfolios. The ENERGY STAR Exchange Services is
   designed to integrate EPA's energy performance rating
   system into energy billing services offered by third
   parties. This new feature provides automated
   benchmarks of customers'  facilities within Web-based
   energy tracking software. More than 3,000 benchmarked
   buildings were associated with the nine companies that
   hosted the system.

• EPA also offered training, including benchmarking
   sessions, to several hundred SPP partners. They assisted
   with more than 5,000 benchmarks and helped label
   45 percent of the buildings qualifying for the ENERGY
   STAR during the year.
32

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                                                              ENERGY STAR IN THE COMMERCIAL SECTOR

FIGURE 13. BUILDING BENCHMARKING AND ENERGY STAR BUILDING LABELING GAIN MOMENTUM
     GO
     z
      I
     o
     GO
     s
     CO
     fri
            2001               2002            2003

           • LABELED SQ. FT.    • BENCHMARKED SQ. FT.
               2004
2005
TABLE 15. 2005 ENERGY STAR LEADERS
  ACHIEVING A 10-POINT IMPROVEMENT
  PORTFOLIO WIDE
  Colorado Springs School District 11
  Colorado Springs, CO
  Independent School District 197
  Mendota Heights, MN
  New York-Presbyterian Hospital
  New York, NY
  Rochester City School District
  Rochester, NY
  South Colonie Central School District
  Albany, NY
  South Washington County School District 833
  Cottage Grove, MN
  The Vanguard Group
  Valley Forge, PA
  York County School Division
  Yorktown, VA

  ACHIEVING A 20-POINT IMPROVEMENT
  PORTFOLIO WIDE
  Cambridge Savings Bank
  Cambridge, MA

  ACHIEVING A 30-POINT IMPROVEMENT
  PORTFOLIO WIDE
  Gresham-Barlow School District
  Gresham, OR
ACHIEVING AN AVERAGE PORTFOLIO-WIDE
RATING OF 75 OR BETTER
Buehler Food Markets
Wooster, OH
Cambridge Savings Bank
Cambridge, MA
Columbus Hospitality
Columbus, OH
Douglas, Emmett & Company
Santa Monica, CA
Food Lion, LLC
Salisbury, NC
Giant Eagle
Pittsburgh, PA
Granite Properties
Piano, TX
Gresham-Barlow School District
Gresham, OR
H.E. Butt Grocery Company
San Antonio, TX
San Diego City Schools
San Diego, CA
The Saunders Hotel Group
Boston, MA
USAA Real Estate Company
San Antonio, TX
                                                   ENERGY STAR® and Other Climate Protection Partnerships 2005 Annual Report 33

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                                                DESIGNED
                                                TO EARN THE
                                                ENERGY STAR
Integrating ENERGY STAR and New Building
Design. EPA has expanded ENERGY
STAR to include new building design
because it is important to integrate
energy efficiency into the design process
as early as possible. EPA promotes
energy efficiency as both a stand-alone
goal and a critical element of green
buildings. In 2005, EPA worked collaboratively with
leading designers, states, federal agencies, the American
Institute of Architects (AIA), and green building rating
organizations to integrate aggressive energy use targets  for
new buildings so as to capture the environmental benefits
and financial value that energy efficiency offers. Highlights
for 2005 are described below:
• The number of participating architecture and
  engineering (A&E) firms rose to 70—a fourfold
  increase in 3 years. Partners now use the "Designed  to
  Earn the ENERGY STAR" graphic on their project
  drawings to show the projects meet EPA energy
  performance criteria.
• About 1,200 professionals in the A&E community
  learned about the importance of setting energy targets
  during the design phase and checking their designs'
  estimated energy use against these targets as projects
  mature.
• The 2005 AIA Top Ten Green Projects, a prominent
  U.S. design competition, incorporated EPA's energy
  rating as part of the evaluation criteria.
• Green building rating tools began to integrate energy
  performance requirements or guidance.  For instance,
  Green Globes, a green building management tool,
  incorporated EPA's energy performance rating (Target
  Finder) into its green building assessment. The
  USGBC's LEED Advanced Workshops  and Energy
  Simulation Workshop include training on how to set
  energy targets, and LEED-NC added a requirement
  that new construction projects use Target Finder to
  document the whole-building energy use expected from
  the building submitted for certification.
• Innovative Design of Raleigh, North Carolina, was the
  first architecture firm to receive national recognition
  from EPA for energy-efficient design.
Making More Commercial Products Available.
EPA promotes the purchase of certain commercial
products as a key strategy for saving energy in private and
public sector buildings. Program efforts focus on office
equipment, commercial food service equipment, and
lighting (exit signs and LED traffic signals), among others.
EPA also assists partners in adopting and enabling
computer power management, a proven energy and cost
saving tool. EPA is working to keep the ENERGY STAR
specifications for these products up to date, as well as to
add new product categories with a focus on providing a
suite of efficient products for the commercial food service
sector (see Table 12 on p. 18 and Table 16).

Helping Small Businesses Save Energy. Small
businesses and faith-based organizations have tremendous
opportunity to cost-effectively reduce energy use, which is
critical to keeping their energy costs manageable and
making significant contributions that benefit the
environment. ENERGY STAR guidance helps these
organizations find effective energy solutions. In 2005, EPA:
• Improved the ease of use of its ENERGY STAR Small
  Business  guide by producing a Web-based version of
  the popular "Putting Energy into Profits Guidebook,"
  which was downloaded more than 8,000 times in 2005-
• Produced a new energy efficiency guide specifically
  tailored to automobile dealerships in conjunction with
  the National Automobile Dealers Association (NADA),
  which will print 20,000 copies and distribute them to
  members.
• Made  plans to implement the Energy Policy Act
  of 2005, signed in November 2005, which directed
  EPA to provide "special outreach to small business"
  in conjunction with the U.S.  Small Business
  Administration and DOE.
Building the Market for Services. In 2005, EPA
continued to partner with 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
improving energy performance. Highlights include:
• To meet a California Executive Order requiring a
  20-percent reduction in energy use in state buildings by
34

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                                                          ENERGY STAR IN THE COMMERCIAL SECTOR
FIGURE 14. BUILDING BENCHMARKING ACTIVITY BY STATE
                                         Increasing Building Benchmarking Activity





                                         <1mmsq.ft.  1-5mmsq.ft. 5-10mmsq.ft.  >10mmsq.ft.
TABLE 16. ENERGY STAR COMMERCIAL PRODUCT SPECIFICATIONS REVISED AND IN PROGRESS
PRODUCT CATEGORY
Computers
Commercial dishwashers
Copiers
Printers and fax machines
Roof products
Scanners
Vending machines
YEAR INTRODUCED
AND (YEAR REVISED)
1992 (2006)
2006
1995
1993, 1994
1999 (2006)
1997
2004 (2006)
RESPONSIBLE
AGENCY
EPA
EPA
EPA
EPA
EPA
EPA
EPA
STATUS OF ACTIVITY
IN 2005
Revision starting in 2006
New specification to be
finalized in 2007
Revision in progress
Revision in progress
Revision in progress
Revision in progress
Revision in progress
                                                ENERGY STAR® and Other Climate Protection Partnerships 2005 Annual Report 35

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          2015, the California Energy Commission (CEC),
          California State Department of General Services, and
          EPA collaborated to use EPA's energy performance
          rating to assess the energy use of state buildings.
        • The EPA energy performance rating was successfully
          implemented in programs promoting whole-building
          energy saving improvements by NSTAR, National
          Grid, Connecticut  Light and Power, and the Business
          Council of Fairfield County, Connecticut (SACIA).
          Other program administrators provided the
          Consortium for Energy Efficiency (GEE) with the
          information to develop a whole-building performance
          program model in cooperation with their national
          membership of utilities and energy efficiency program
          administrators.
        • In collaboration with the energy services industry,
          EPA and the National Association of Energy Service
          Companies (NAESCO) trained over 500 energy
          service professionals from about 250 companies on
          the use of ENERGY STAR tools and resources to
          deliver objective  energy assessments to energy users.
        • EPA expanded ENERGY STAR to  energy billing and
          tracking services  by launching the ENERGY STAR
          Exchange Services with nine service providers in the fall
          of 2005-  Anyone using these billing services can
          automatically receive ENERGY STAR ratings across
          their building portfolio.

        What to Expect in 2006 and Beyond
        EPA will continue to work with its commercial sector
        partners to promote energy management and improvements in
        building energy use. Specifically, EPA will:
        • Continue to promote the ENERGY STAR Challenge
          by increasing the number of participating organizations and
          reaching more building owners to assist them in
          reducing energy demand in their buildings. EPA will
          also expand its partnerships with all current Challenge
          participants, including the  BOMA BEEP program, to
          build on their early successes and bring energy
          efficiency to more building owners.
        • Refine and expand EPA's energy performance rating
          system. EPA will work collaboratively with additional
          stakeholders—including those in retail, higher
          education, and restaurants—to bring meaningful energy
          performance benchmarks and energy efficiency
          guidance to the market. EPA will also update the
 energy performance rating system based on new
 commercial building energy use survey information.
 EPA expects to add water use tracking, another
 important measure of efficient management and
 environmental performance.
I Update energy-efficient product specifications for office
 equipment, refrigerated vending machines, and
 commercial roof products to increase their stringency.
 EPA will also add commercial dishwashers to the
 ENERGY STAR suite  of qualifying commercial kitchen
 products (see p. 35).
I Continue to expand its emphasis on portfolio-wide
 energy savings. EPA will launch new efforts to allow all
 types of organizations to track and measure energy
 savings across their entire portfolio and to receive
 recognition for reaching important milestones.
I Work with the General Services Administration (GSA)
 and other federal agencies to make energy efficiency
 requirements part of government procurement and
 leasing policy starting with the facilities that house EPA
 employees.
I Work with other organizations to  ensure that green
 buildings are energy efficient and deliver the financial
 and environmental benefits expected by owners. EPA
 will collaborate with federal agencies, AIA, and
 organizations that develop green rating systems to
 ensure that appropriate energy metrics are incorporated,
 including EPA's energy performance rating.
I Make information available to ENERGY STAR
 partners on how to use the energy efficiency tax
 incentives to further their energy efficiency goals;
 provide real estate owners guidance  on how to use
 ENERGY STAR to find the best building opportunities;
 and offer EPA's energy performance rating as an
 important tool to include in supporting documentation
 for the tax deduction.
I Collaborate with small business associations and
 development centers, DOE, and the Small Business
 Administration to bring ENERGY STAR to this
 market, as  intended by the Energy Policy Act of 2005-
I Continue efforts to integrate ENERGY STAR into
 state and utility energy efficiency programs to help
 organizations make cost-effective energy reductions of
 10 percent or more.
36

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                                                               ENERGY STAR IN THE COMMERCIAL SECTOR
PARTNER OF THE YEAR—ENERGY MANAGEMENT

GRESHAM-BARLOW SCHOOL DISTRICT 10JT.
GRESHAM, OREGON
Gresham-Barlow School District 10Jt. serves more than 12,000 students in 19 K-12 schools. In
1998, to reduce energy and water consumption, the district adopted an energy policy and began
investing in building infrastructure, energy-efficient equipment, and energy management
software. Since then, Gresham-Barlow has decreased its overall energy use by 46 percent and
saved a total of $4.3 million. For the school year 2004/2005, the district avoided more than $1
million in utility costs, equivalent to salaries for over 20 teaching positions. As a result of its
partnership with the energy services company Save More  Resources, which offers EPA's new automated rating
feature, the district automatically tracks the impact of its efficiency program using EPA's energy performance
rating for all schools. Gresham-Barlow School District 10 has earned the ENERGY STAR label for 12 of its schools,
more than half, and is the first school district in the nation to achieve a 30-point improvement in energy
performance. The energy team has developed a successful model for achieving buy-in from district executives, as
well as principals and onsite staff, creating an environment where custodians, students, and teachers work
together to save energy. Gresham-Barlow School District 10 is committed to promoting, educating, modeling, and
teaching other school districts about their energy management system at conferences and workshops throughout
the Pacific Northwest.

MARRIOTT INTERNATIONAL, INC.
WASHINGTON, DC
In 2005, Marriott International, Inc. continued to build on its ambitious energy
management achievements and took energy management to the next level. The success
of its energy management program is rooted in the strong commitment of senior
corporate leaders to responsible environmental stewardship. Marriott's strategy has
ranged from simple behavior modifications to lighting replacements to the introduction of new technologies. The
company has integrated energy management into daily operations  through the active participation of all Marriott
associates. To involve staff, the hotels hold contests with prizes for  the best energy-saving tips and for the 10 best
Energy Awareness Week posters.  In 2005, Marriott introduced a retro-commissioning program and launched
a 6-month re-lamping campaign to replace all lighting with the most energy-efficient option. Marriott has now
rated 580 properties, moving closer to its goal of benchmarking 100 percent of its 980 properties. More than
150 properties  have earned the ENERGY STAR label. Through its energy management program,  Marriott has
achieved annual energy savings of more than $5 million and prevented the emissions of more than 68,000 tons
of greenhouse  gases.

NEW YORK-PRESBYTERIAN HOSPITAL
NEW YORK, NEW YORK
An ENERGY STAR Award winner 2 years in a row. New          I WpwYork-PrCSbvtGriSn
York-Presbyterian  Hospital (NYPH), which includes the        _ Thfi Universjty Hospjta| jfColumbia and Cornell
university  hospitals of Columbia and Cornell, employs
more than 5,000 physicians and delivers comprehensive
medical services to residents of New York City and its surrounding  boroughs. NYPH joined ENERGY STAR in
2003, recognizing that every dollar saved on energy costs is a dollar that can  be devoted to healthcare delivery or
medical research.  NYPH continues to implement a multi-million dollar initiative throughout its facilities. In 2005,
the hospital system saved more than 4.5 million kWh of electricity (worth $823,000), increased the  average energy
performance rating across its portfolio by 14 points, and earned the ENERGY STAR label for both hospitals. NYPH
has embarked on an ambitious system-wide mission to communicate the value of energy efficiency using
newsletters and posters, employee incentives, and presentations to its network affiliates. The financial value of
New York Presbyterian Hospital's energy savings is equivalent to generating more than $16 million in new business.

Highlights of more 2005 Award winners may be found at energystar.gov/awards.
                                                   ENERGY STAR® and Other Climate Protection Partnerships 2005 Annual Report 37

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ENERGY STAR  IN THE

INDUSTRIAL SECTOR
Manufacturing requires the input of substantial amounts
of energy; therefore, companies that control costs by
trimming energy use can improve their competitive
advantage. EPA's industrial work began in the early
1990s with the Green Lights and Climate Wise programs
and by 2000 was folded into ENERGY STAR. Through
ENERGY STAR, EPA works with industries to help them
strategically manage energy use, improve overall energy
efficiency, and earn distinction as environmental stewards.
EPA offers guidance on energy management, energy
performance measurement tools, and peer exchange
opportunities, which enable manufacturers to measure,
monitor, manage, and continuously improve their
energy use.

Achievements in 2005
Fostering Energy Savings Through Industrial
FoCUSeS. By 2000, EPA had developed a robust energy
management program for the commercial sector that
included a new energy performance benchmarking
approach for buildings to help building owners target
energy efficiency investments and stimulate energy
savings. In consultation with industry, EPA embarked
upon developing similar energy management tools for the
industrial sector, working with companies within specific
sectors to address the unique energy efficiency barriers
they face. These Industrial  Focuses offer:
• Guidance on strategic energy management
• An  industry-specific energy guide identifying the
  barriers to efficiency and options for overcoming them
• Peer exchange opportunities
• Plant-level energy performance indicators (EPIs) for
  gauging the energy efficiency of manufacturing plants
  and targeting improvements where systems do not exist
By 2005, eight industries were actively engaged with EPA in
these efforts (see Table 17). Highlights of 2005 include:
• Three new focus industries were added—food
  processing, glass manufacturing, and water/wastewater
  treatment—as EPA partnered with them to develop
  standardized measurement tools, industry-specific best
  practices, and peer exchange opportunities.
• EPA advanced the existing industry focus partnerships
  with automobile manufacturing, cement, corn refining,
  pharmaceuticals, and petroleum refining by developing
  sector-specific energy management guidance and
  engaging the majority of companies in these sectors in
  discussions of best practices.
• EPA also made steady progress in developing plant
  level energy performance indicators, including
  (1) completing the first industrial plant EPI for
  automobile assembly plants located in the United States,
  (2) bringing two additional EPIs for cement plants and
  corn refineries close to completion, and (3) developing
  preliminary guidelines on how these industries can earn
  the ENERGY STAR for  demonstrating superior energy
  and environmental performance.
• Companies reached out  to peers to share their success
  with ENERGY STAR and improved energy
  management. EPA is pleased to share the letter written
  by the chairman of the Portland Cement Association to
  his executive counterparts throughout the industry,
  urging them to set clear  direction for strategic energy
  management in  their companies (see letter p. 41).
Working  Broadly with  Industry. Beyond the focus
industries,  EPA works with a large variety of
manufacturing companies  through ENERGY STAR.
EPA supports these partners with energy management
resources on the ENERGY STAR Web site,
communication materials,  an active network of energy
managers,  and recognition  for superior energy
management. Highlights of the past year include:
• The total number of industrial companies committing to
  improve their energy use  by partnering with ENERGY
  STAR grew to more than 450 in 2005-
• More industrial  and commercial partners than ever
  participated in the ENERGY STAR peer exchange
  network, as Webcasts and networking meetings were
  held to address such topics as (1) helping partners assess
  their energy programs and identify actions for
  improvement, (2) enabling companies to audit plants
  and buildings for energy efficiency upgrade
  opportunities, and (3) benchmarking energy use of
  facilities to empower organizations to set challenging
  goals. Participating partners indicated  that they have
  learned valuable energy management information
  through ENERGY STAR networking and that they
  intend to use it in their operations. Overall, EPA saw

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                                                                  ENERGY STAR IN THE INDUSTRIAL SECTOR
TABLE 17. SUMMARY OF EPA ENERGY STAR INDUSTRIAL FOCUSES
FOCUS
CEMENT
MANUFACTURING
CORN REFINING
FOOD PROCESSING
GLASS
MANUFACTURING
MOTOR VEHICLE
MANUFACTURING
PETROLEUM
INDUSTRY
PHARMACEUTICALS
WATER AND
WASTEWATER
FUELAND
ELECTRICITY
COST($)*
(IN MILLIONS $)
$1,200
$800
$1,000
$950
$900
$7,600
$700
$4,000
YEARS
ACTIVE
2
3
NEW
NEW
4
1
1
NEW
SCOPE
50 percent of U.S. -based clinker**
production capacity
95 percent of U.S. -based refining
capacity
80 percent of U.S. processed fruit,
vegetable, and grain sales
50 percent of U.S. flat, container,
and fiberglass sales
75 percent of the industry with
U.S.-based production.
64 percent of U.S.-based refining
capacity
Over 50 percent of the global and
U.S. manufacturing capacity
40 percent of the total
U.S. population represented
PEER EXCHANGE
OPPORTUNITY
•
•
•
•
•
•
•
•
INDUSTRY
ENERGY
GUIDE
Complete
Complete
In process
In process
Complete
Complete
Complete
In process
ENERGY
PERFORMANCE
INDICATOR
Final draft
Final draft
In process
In process
Final, beginning updates
Exploring options
In process
In process
' Source: "Statistics for Industry Groups and Industries: 2004."Annual Survey of Manufacturers. Table 4. U.S. Census Bureau. December 2005.
'* Clinker is the output from a cement kiln.
  SUSTAINED EXCELLENCE AWARD WINNERS

  3M
  ST. PAUL, MINNESOTA
  3M, a diversified technology company with a worldwide presence, continues to demonstrate outstanding
  leadership in improving energy performance. 3M's dedication to company-wide involvement in energy
  management yielded a 9-percent improvement in the energy efficiency of its facilities worldwide from
  2004 levels. Continuous improvement over the past 5 years has enabled 3M to reduce energy intensity by almost
  34 percent and save more than $82 million, surpassing the company's energy reduction targets. As an active
  ENERGY STAR partner, 3M has promoted the benefits of energy efficiency and best management practices to
  employees, surrounding communities, and other U.S. manufacturing industries. 3M's energy management system
  is well-known among U.S. industrial companies and serves as a model for them.


  TOYOTA MOTOR MANUFACTURING NORTH AMERICA, INC.
  ERLANGER, KENTUCKY
  The principle of continuous improvement is the foundation for environmental and energy management
  at Toyota Motor Manufacturing North America (TMMNA).  In 2005, TMMNA continued to follow its
  successful path by achieving an 8-percent  reduction per vehicle in energy consumption. All of this
  was accomplished within a business environment where new manufacturing capabilities were added
  and total vehicle production increased. In addition to a corporate-wide energy management system,
  Toyota Motor  Manufacturing completed a study of new generation lighting in its plants, transferred its facility
  assessment process to the plant level, and established an  energy benchmarking procedure for its North American
  auto assembly plants using EPA's energy performance indicator. All TMMNA assembly plants scored well,
  indicating their energy-efficient operation.
TOYOTA
                                                    ENERGY STAR® and Other Climate Protection Partnerships 2005 Annual Report 39

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          participation grow to include nearly 400 participants in
          2005, representing close to 200 organizations.
        • New materials are now available to guide companies in
          improving energy management. These include "A
          Roadmap for Strategic Energy Planning and
          Management," which EPA supported through The
          Conference Board, a leading organization that engages
          corporate managers in strategic business issues. The
          Roadmap helps companies systematically develop and
          implement corporate energy management programs. At
          the end of 2005, EPA also released a guide on building
          internal energy teams to help organizations take a key
          step in implementing more  effective energy programs.
          The guide, titled "Teaming  Up to Save Energy," draws
          on the best practices from ENERGY STAR partners
          whose strong energy programs have consistently
          reduced energy use. Initial partner reaction has been
          positive, and several corporations have expressed an
          interest in distributing the guide across their entire
          organization to educate employees about managing
          energy.
        • Two ENERGY STAR industrial partners were
          recognized in 2005 for Sustained Excellence  in Energy
          Management:  3M and Toyota Motor Manufacturing
          North America. Recipients of the Sustained Excellence
          award continually challenge their organizations to
          improve energy efficiency and consistently meet the
          challenge. Both organizations have advanced company-
          wide energy management systems that annually achieve
          substantial energy savings (see p. 39).  Additional
          industrial partners were also recognized with ENERGY
          STAR awards in 2005-

        What to Expect in  2006 and Beyond
        In the coming years, EPA will  expand  its efforts to offer
        industrial companies assistance in reducing costs and
        improving environmental performance through energy
        efficiency.  For example, EPA will:
        • Continue industrial focuses  with the eight interested
          sectors.  EPA expects to finalize three industrial EPIs—
          for the cement and corn refining industries, and an
          updated EPI for auto assembly—and  to make
          important progress in developing EPIs for the other
          sectors by the end of 2006. EPA will also expand the
          scope of some of the industrial focuses based on sector-
          specific interests and requests, including addressing
 energy efficiency opportunities outside of vehicle
 assembly operations with the vehicle manufacturers,
 incorporating water-saving measures into the corn
 refining and food processing industry focuses, and
 developing a second EPI for the food processing
 industry for cereal production plants. EPA will continue
 to support peer exchange forums for these sectors in
 2006 and beyond, including holding the first industry
 meetings with the glass and food processing industries.
I Add two new industrial sectors to its industrial focus
 initiative: petrochemical producers and the pulp and
 paper industry in 2006, and thereafter expect to add
 two industrial sectors each year.
I Based on the sector-specific EPIs, offer a system for
 labeling energy-efficient U.S.-based plants with the
 ENERGY STAR. EPA expects that facilities in the auto
 assembly, wet corn  milling, and cement manufacturing
 industries will have earned the ENERGY STAR by the
 end of 2006.
I Expand the capability of companies to benchmark or
 rate the energy performance of all types of facilities by
 producing a guide on how to benchmark energy use.
 This guide will enable corporate energy managers to
 understand how to  approach benchmarking as an
 important energy management practice and enable
 them to evaluate, compare, and improve the energy
 performance of their facilities, particularly where EPA
 has  not provided benchmarks as part of its national
 energy performance rating system.
I Develop new  energy management assessment tools.
 EPA will develop an energy management assessment
 matrix designed to  evaluate the energy management
 practices in use at individual plants and buildings and
 to guide managers toward best practices. This plant-
 level assessment tool will complement the existing
 assessment matrix for evaluating the performance of
 corporate energy management programs.
I Work with leading  U.S. business executives to identify
 the  energy management strategies that can be used to
 manage energy effectively  and competitively over the
 next decade.
I Continue to recognize excellence in industrial energy
 management.
40

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                                                          ENERGY STAR IN THE INDUSTRIAL SECTOR
                CALIFORNIA PORTLAND CEMENT COMPANY
           2025 E. FINANCIAL WAY, GLENDORA, CA 91741 / TEL. (626) 852-6200  FAX (626) 963-9630
 Dear Colleagues:

 The U.S. cement industry is vibrant and thriving. As the leaders of this vital industry, we have the
 unparalleled opportunity to positively position our businesses, help the national economy, and
 promote practices that improve the environment through increased energy efficiency.

 Energy is a major expense for  this industry, often occupying up to  50% of variable costs.  Profit
 erosion due to rising prices is a serious threat. At the same time, some governments are moving
 forward to control energy's impacts on the environment. Since most of us operate multinationally,
 somewhere in the world we are faced with paying the cost of controlling carbon emissions, or will
 be in the future. Further, consider that the Europeans are just beginning to evaluate the impacts of
 embedded energy in building  materials. Imagine how this might affect our products.

 As leaders, we must reduce energy use and remain viable in the future. We need to think
 progressively  and act to minimize the risks, commit to sustainable energy management practices,
 and set clear directions for managing energy in our operations.

 At California Portland Cement Company, I charged my staff with  developing an energy
 management system that spans all operations. To date, we have saved over a million dollars in less
 than 2 years.  We did this by deliberately making energy management part of our core business, by
 creating a corporate function for  energy, and by viewing energy as a profit center for our business.

 Many of us have made attempts to manage energy through hit-or-miss efforts, gathering the easy
 energy savings and accepting average performance. Remember this, without a permanent,
 centralized program, low-hanging fruit will grow back and the initial savings you achieve  will be
 quickly lost. I encourage you to create an effective and permanent energy management program in
 your company.

 California Portland Cement Company took advantage of its partnership with the ENERGY STAR
 program to identify the steps we needed to take. Most of you are partners and as such have a
 variety of resources available to help you successfully manage energy. If you have questions about
 how to do this, contact our Corporate Energy Manager Steve Coppinger at (626) 852-6200 or
 Tom Carter of the Portland Cement Association at (202) 408-9494.

 Sincerely,
J^imes Repman
 Chairman, Portland Cement Association
'Chief Executive Officer
 California, Portland Cement Company
 Cc:     Stephen L. Johnson, Administrator
        U.S. Environmental Protection Agency
                                           ENERGY STAR® and Other Climate Protection Partnerships 2005 Annual Report 41

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        PROGRAM EVALUATION: MEASURING RESULTS IN THE ENERGY STAR PROGRAM
        In 2005, the ENERGY STAR program helped Americans save more than $12 billion on their energy bills while
        avoiding 34.2 million metric tons of greenhouse gas emissions—emissions equivalent to those from about
        23 million vehicles.8 The benefits resulting from key program strategies are estimated as outlined below.

        ENERGY STAR PRODUCTS AND NEW HOMES
        By 2005, more than 2 billion ENERGY STAR qualifying products had been purchased, and  more than 500,000 ENERGY
        STAR new  homes had been constructed. These efforts are estimated to have saved 69.3 billion kWh of electricity and
        $6.8 billion on energy bills, while avoiding 15.2 MMTCE of greenhouse gas emissions. These estimates were
        developed  as follows:9
        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 (IPM9), to estimate these
          emissions factors.10
        • 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.
42

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                                                                     ENERGY STAR  IN THE  INDUSTRIAL SECTOR
COMMERCIAL BUILDINGS
EPA estimates that 71.7 billion kWh and $4.6 billion
were saved while avoiding 14.8 MMTCE of greenhouse
gas emissions due to ENERGY STAR commercial
sector efforts in 2005.  EPA estimates these benefits
as follows:11
• 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 saved  10.2 billion kWh and $1.2 billion and
avoided 4.2 MMTCE of greenhouse gas emissions in
2005. 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.
8 EPA's ENERGY STAR Qualified Products and Homes, Buildings, and Industry sector savings are $6.8, $4.6 billion, and $1.2 billion respectively. Greenhouse gas savings from
 EPA Qualified Products, Homes, Buildings, and Industrial sectors are 14.8,0.3,14.8, and 4.2 MMTCE, respectively for a total of 34.2 MMTCE.
9 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 E. Brown; and "Savings Estimates for the ENERGY STAR® Voluntary Labeling Program: 2001 Status Report" by Carrie A Webber, et al.
1" 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.
11 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.
                                                      ENERGY STAR® and Other Climate Protection Partnerships 2005 Annual Report 43

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        CLEAN ENERGY
        SUPPLY  PROGRAMS
        EPA is having success with two partnership programs,
        introduced in 2001 as part of the President's National
        Energy Policy, that were designed to increase the adoption
        of clean energy supply technologies across the  United
        States. These programs, the Green Power Partnership and
        the Combined Heat and Power Partnership, provide
        partners with technical resources, credible benchmarks,
        access to expertise, and recognition for environmental
        leadership. The programs help partners find cost-effective
        solutions to meeting their energy needs. Efficient and
        clean energy supply options such as combined heat and
        power (CHP) and renewable energy resources  are
        attractive options for many organizations as they face
        escalating  fossil fuel prices and volatile energy markets.
        Clean energy supply also helps reduce emissions of criteria
        air pollutants and greenhouse gases, lower energy costs,
        and improve the reliability and security of our energy
        system. In 2005, EPA's Clean Energy Supply programs
        reduced greenhouse gas emissions by 3-1 million metric
        tons of carbon equivalent (see Table 18).
                                          &EPA
                                          GREEN
                                          POWER
                                          PARTNERSHIP
Green Power Partnership
Fortune 500 corporations,
colleges and universities,
government agencies, and
local communities all
significantly increased their green power purchasing in
2005 as part of EPA's Green Power Partnership, making it
an outstanding year for the partnership. Partners are
finding that purchasing electricity from renewable
resources is an easy, effective way to reduce the
environmental impact of their operations, hedge against
volatile energy prices, stand out from the competition,
generate goodwill, and demonstrate environmental
leadership. Because of this group's significant combined
buying power, electricity providers are responding with
new and improved products for the green power market.'2

In 2005, the Green Power Partnership:
• Increased the national visibility of its leading green
   power purchasers with the introduction of the Top 25
   Partners list, which was picked up by media such as
   USA Today, Newsweek, Dow Jones, ABC News,
   MSNBC, CNN, and National Public Radio.
• Rolled out the Green Power Communities, which helps
   forward-thinking communities encourage citizens and
   businesses to purchase green power.
• Grew to 600 partners, with the addition of 95 new
   partners, and green power purchases  totaling 4 billion
   kilowatt-hours (kWh) annually, 60 percent more than
   in 2004 and enough to power 375,000 homes
   (see Figure 15).
• Presented 22 Green Power Leadership Awards to top
   purchasers of green power and onsite renewable power
   systems  (see Table 19).

What to Expect in 2006 and Beyond
In the coming years, EPA will engage many new
organizations in purchasing green power. EPA will launch
a green power challenge for colleges and universities and
add two new Top Partner lists for local  governments and
federal agencies. Overall, EPA hopes to  engage new and
existing partners to purchase 6 billion kWh of green
power in the coming year. EPA also intends to update the
program requirements for joining the Green Power
Partnership to reflect the changing green power
marketplace.
       TABLE 18. GREENHOUSE GAS EMISSIONS AVOIDED BY EPA'S CLEAN ENERGY SUPPLY PROGRAMS (MMTCE)

Clean Energy Supply Programs
2002
0.5
2003
1.0
2004
2.0
2005
3.1
44
       12 NREL, 2006. Price Trends in Green Power Purchases by Large Commercial and Institutional Customers. Prepared for the Climate Protection Partnerships Division.

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                                                                         CLEAN ENERGY SUPPLY PROGRAMS

FIGURE 15. PARTNER GREEN POWER PURCHASES AND RESULTING GHG EMISSIONS AVOIDED SINCE 2001
   m
   to
   LU
   CO
   o
   cc
7,000,000

6,000,000

5,000,000

4,000,000

3,000,000

2,000,000

1,000,000

        0
                  2001          2002           2003          2004

                 • ANNUAL PURCHASES BY EPA PARTNERS     • MICE AVOIDED
                                                                   2005
                    Q
                    LU
                    O
                    o
                                                                                          LU
                                                                                          O
TABLE 19. EPA RECOGNIZED 22 LEADING GREEN POWER PARTNERS IN 2005
  GREEN POWER
  ON SITE GENERATION AWARD
                            GREEN POWER
                            PURCHASING AWARD
GREEN POWER
PARTNER OF THE YEAR
  Aspen Skiing Company
  Aspen, Colorado

  City of Fresno
   General Services Department
  Fresno, California

  City of Vallejo, California
  Vallejo, California

  County of Alameda
  Oakland,  California

  FedEx Express-Oakland Hub
   Facility
  Oakland California

  St. Francis Winery & Vineyards
  Santa Rosa, California

  University of Minnesota, Morris
  Morris, Minnesota
                            Atlantic Golf, a Division of the
                              Brick Companies
                            Edgewater, Maryland

                            Dagoba Organic Chocolate
                            Ashland, Oregon

                            Green Mountain Coffee Roasters
                            Waterbury, Vermont

                            Harvard University
                            Cambridge, Massachusetts

                            Hyatt Regency Dallas & Hyatt
                              Regency DFW
                            Dallas, Texas

                            Mohawk Fine  Papers, Inc.
                            Cohoes, New York

                            Safeway Inc.
                            Pleasanton, California

                            Starbucks Coffee
                            Seattle, Washington

                            Western Washington University
                            Bellingham, Washington

                            Whole Foods Market-Rocky
                              Mountain Region
                            Austin, Texas

                            The World Bank Group
                            Washington, D.C.
HSBC North America
Buffalo, New York

Johnson & Johnson
New Brunswick, New Jersey

U.S. Air Force

WhiteWave Foods
 Company
Boulder, Colorado
                                                    ENERGY STAR® and Other Climate Protection Partnerships 2005 Annual Report 45

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        Combined Heat and  Power Partnership
                                              CHP
                                       &EPA COMBINED HEAT AND
                                              POWER PARTNERSHIP
Through the CHP partnership,

EPA works in collaboration with

partners—including energy

users, project developers,

equipment suppliers, and federal, state, and local policy

makers—to address key barriers to further investment in

cost-effective CHP The program continues its work

reaching out to key markets for CHP deployment. In

2005, EPA provided market analysis for three strategic

sectors (dry mill ethanol production, hotels and casinos,

and wastewater treatment plants) through targeted

outreach, technical assistance, and multiple speaking

engagements.


In 2005, the CHP Partnership:

• Grew to 170 partners by adding 33 new partners,

   including Alliant Energy Generation, City of Palo Alto

   Utilities, Chevron Energy Solutions, Cornell University,

   Johnson & Johnson, and New York Presbyterian

   Hospital.
• Facilitated more than 30 new CHP projects, totaling

  1,120 megawatts (MW) of new CHP capacity, for a

  total of nearly 3,500 MW since the program's inception

  (see Figure 16).

• Awarded 28 ENERGY STAR CHP Awards and

  Partnership certificates for highly efficient, exemplary

  CHP projects (see Table 20).

• Provided technical assistance to an additional

  40 new projects.


What to Expect in 2006 and Beyond

EPA will provide assistance in the development of about

30 new CHP projects, representing about 800 MW of

new CHP capacity for each of the next few years. EPA

will continue to work with the rapidly growing ethanol

industry, begin working with the U.S. Department of

Agriculture's Rural Development Business Programs to

provide project facilitation services to rural renewable

energy projects that offer significant environmental and

economic development benefits, and provide technical

assistance to states considering policies that promote CHP
        PROGRAM EVALUATION: MEASURING RESULTS IN THE CLEAN ENERGY SUPPLY PROGRAMS
          COMBINED HEAT AND POWER PARTNERSHIP
                                                        GREEN POWER PARTNERSHIP
          Program partners such as project owners voluntarily
          provide project-specific information on newly
          operational CHP projects to EPA. These data are
          screened and any issues resolved.
          Energy savings are determined on  a project-by-project
          basis, based on fuel mix and project use. Estimates of
          the use of electricity, oil, and natural gas are developed,
          as well as the efficiency of use or generation, as
          appropriate.
          Emissions reductions are calculated on a project-by-
          project basis to reflect the greater efficiency of on-site
          CHP. Avoided emissions of greenhouse gases from
          more efficient electricity generation are determined
          using  marginal  emissions factors derived from energy
          efficiency scenario runs of an integrated  utility dispatch
          model—IPM®, and displaced emissions from boiler
          produced thermal energy are developed  through
          engineering estimates. In addition, emissions
          reductions may include avoided transmission and
          distribution losses, as  appropriate.
          Only the emissions reductions from projects that meet
          the assistance criteria  for the program are included in
          the program benefit estimates.  EPA also addresses the
          potential for double counting of the benefits between
          this and other partnerships by having program staff
          meet annually to identify and resolve any overlap
          issues.
                                                        As a condition of partnership, program partners submit
                                                        data on their purchases of qualifying green power
                                                        products annually. These data are screened and any
                                                        issues resolved.
                                                        Avoided emissions of greenhouse gases are determined
                                                        using marginal emissions factors for CO2 derived from
                                                        scenario  runs of an integrated utility dispatch model,
                                                        Integrated Planning Model (IPM®).
                                                        The potential for double counting, such as counting
                                                        green power purchases that may be required as part of
                                                        a renewable portfolio standard or may rely on
                                                        resources that are already part of the system mix is
                                                        addressed through a partnership requirement that
                                                        green power purchases be incremental to what may
                                                        already be required.
                                                        EPA estimates that the vast majority of the green power
                                                        purchases made by program partners are due to the
                                                        partnership, as partners comply with aggressive green
                                                        power procurement requirements (usually at incremental
                                                        cost) to remain in the program. Further, EPA estimates
                                                        that its efforts to foster a  growing voluntary green
                                                        power market have likely led to additional voluntary
                                                        green power purchases that have not been reported
                                                        through the program.
46

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                                                                          CLEAN ENERGY SUPPLY PROGRAMS

FIGURE 16. CAPACITY OF COMBINED HEAT AND POWER PROJECTS BY STATE AS OF 2005
                                              Increasing Participation


                                               <5mw   5-50mw   51-500mw  >500mw
TABLE 20. EPA RECOGNIZED 28 LEADING COMBINED HEAT AND POWER PROJECTS IN 2005
  2005 ENERGY STAR CHP AWARD WINNERS
2005 CHP CERTIFICATE OF RECOGNITION WINNERS
  Arrow Linen Supply Company
  New York
  Greenpark Care Center; American DG New York, LLC
  New York
  Hermany Farms Dairy; American DG New York, LLC
  New York
  Hexion Specialty Chemicals, Inc.
  New York
  Middlebury College
  Vermont
  Mohegan Sun
  Connecticut
  Rego Park Nursing Home; AES-NJ Cogen Co. Inc.
  New York
  St. Francis Hospital and Medical Center
  Connecticut
  Sea Rise I; Bay Park I Associates
  New York
  Sea Rise II; Bay Park II Associates
  New York
  South Houston Green Power 2; Cinergy Solutions, Inc.,
    and BP Global Power
  Texas
  University of Maryland, College Park
  Maryland
  University of Texas at Austin
  Texas
  Weyerhaeuser Albany Containerboard Mill
  Oregon
  Weyerhaeuser Hawesville Complex
  Kentucky
4C Foods
New York
10 West 66th Street Corporation
New York
30 North LaSalle; Equity Office Properties
Illinois
Beaumont Refinery Project; ExxonMobil Corporation
Texas
Federal Research Center—White Oak Central Utility
   Plant; General Services Administration
Maryland
Holliswood Care; American DG New York, LLC
New York
La Jolla Medical Center; Department of Veterans Affairs
California
Manchester Tank; NiSource Energy Technologies
Indiana
South Windsor High School
Connecticut
University of Cincinnati
Ohio
Utilimaster; NiSource Energy Technologies
Indiana
Vestil Manufacturing; NiSource Energy Technologies
Indiana
Waldbaums Supermarket; A&P Tea Company
New York
                                                    ENERGY STAR® and Other Climate Protection Partnerships 2005 Annual Report 47

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        STATE  AND  LOCAL

        PROGRAMS  AND

        INITIATIVES

        Since 1992, EPA's State and Local Programs have been
        providing state and local governments with assistance in
        their efforts to develop policies and programs to reduce
        energy costs, improve energy efficiency, lower greenhouse
        gas emissions, improve air quality and public health, and
        promote economic development. With the demand for
        energy expected to climb 40 percent by the year 2025 and
        about 126 million people living in counties where
        monitored air is unhealthy at one or more times during
        the year, state and local officials are interested in solutions.
        There are many available clean energy policies for state
        and local governments to explore and develop. EPA
        estimates that if all 50 states implemented cost-effective
        clean energy and environment policies,  the projected
        growth in demand for electricity could be cut in half by
        2025; while the additional  remaining increase in demand
        could be met with cleaner energy supplies. This translates
        into an annual savings of $70 billion in energy costs by
        2025, avoiding the need for more than  300 power plants
        and preventing the greenhouse gas emissions equivalent to
        those from 80 million vehicles.

        EPA is pursuing a number  of strategies  to help states
        explore and implement clean energy policies. The
        strategies include a new partnership program with
        interested states to advance clean energy policies, targeted
        efforts to assist local governments, and efforts to help
        utilities and their regulators explore policy options for
        increasing investment in energy efficiency, combined  heat
        and power, and renewable energy.

        Clean  Energy-Environment
        State  Partnership
        In 2005, EPA launched the Clean Energy-Environment
        State Partnership program, designed to  help states adopt
        clean energy policies and deploy clean energy programs.
        Through this program, EPA identifies and shares
        comprehensive guidance on successful, cost-effective state
        and local policies and initiatives; provides tools to help
states measure and evaluate the co-benefits of the policies;
fosters peer exchange opportunities for state and local
officials to share information on best practices and
innovative policies; and recognizes their achievements.

In 2005, the Clean Energy-Environment State
Partnership:
• Supported the 11 charter partners of the program (see
   Figure  17) launched in February, helping them analyze
   clean energy options and prioritize policies of interest,
   as well as working with them to prioritize the type of
   guidance and technical assistance that would be helpful
   from EPA in the coming years.
• Developed a final draft of a new Clean Energy and
   Environment Guide to Action, which identifies and
   describes 16 clean energy policies and strategies that
   states have used to meet their clean energy objectives
   (see Table 21). These policies were selected for inclusion
   in the Guide to Action because of their proven
   effectiveness in a number of states. States are using
   the Guide to Action to learn from each other as they
   design  and implement their own clean energy programs
   and policies.
• Conducted more than 10 peer exchange sessions of the
   EPA Clean Energy-Environment Technical Forum—
   involving a total of more than 100 state environmental,
   energy, and utility regulatory officials from over 35
   states—to examine best practices on topics including
   renewable energy credits, state energy planning, high
   performance buildings, and clean distributed
   generation.
• Advanced knowledge  about the role of pavement in
   heat islands by helping chart a strategy to help
   decisionmakers know the heat island implications of
   their paving options. EPA issued the draft Cool
   Pavements study, capturing the current knowledge about
   the science and options of alternative paving materials
   that can help lower urban temperatures.
48

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                                                                            STATE AND LOCAL PROGRAMS
FIGURE 17. CHARTER PARTNERS IN THE CLEAN ENERGY-ENVIRONMENT STATE PARTNERSHIP
                                         NORTH DAKOTA
           HAWAII
                                                       CHARTER PARTNERS
TABLE 21. SUMMARY OF CLEAN ENERGY POLICIES DESCRIBED IN EPA'S CLEAN ENERGY-ENVIRONMENT
GUIDE TO ACTION
                           CLEAN ENERGY-ENVIRONMENT GUIDE TO ACTION
                  SUMMARY OF CLEAN ENERGY POLICIES BY TYPE OF CLEAN  ENERGY
  CLEAN ENERGY POLICY
  STATE PLANNING AND INCENTIVE STRUCTUR
  Lead by Example
ENERGY EFFICIENCY   RENEWABLE ENERGY  CLEAN DG/CHP
  State and Regional Energy Planning
  Determining the Air Quality Benefits of Clean Energy
  Funding and Incentives
  ENERGY EFFICIENCY ACTIC
  Energy Efficiency Portfolio Standards (EEPS)
  Public Benefits Funds (PBF) for Energy Efficiency
  Building Codes for Energy Efficiency
  State Appliance Efficiency Standards
  ENERGY SUPPLY ACTIONS (RENEWABLE ENERGY AND COMBINED HEAT AND POWER)
  Renewable Portfolio Standards (RPS)
  Public Benefits Funds (PBF) for State Clean
  Energy Supply Programs
  Output-based Environmental Regulations to
  Support Clean Energy
  Interconnection Standards
  Fostering Green Power Markets
  UTILITY PLANNING AND INCENTIVE STRUCTURES
  Portfolio Management Strategies
  Utility Incentives for Demand-Side Resources
  Emerging Approaches: Removing Unintended
  Utility Rate Barriers to Distributed Generation
                                                  ENERGY STAR® and Other Climate Protection Partnerships 2005 Annual Report 49

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        What to Expect in 2006 and Beyond
        EPA will continue to provide state and local governments
        with support for their clean energy activities. Specifically,
        EPA will:
        • Add up to three new partners to the Clean Energy-
          Environment State Partnership Program.
        • Release the final Clean Energy-Environment Guide to
          Action and maintain up-to-date online information
          about related state clean energy policies.
        • Develop additional tools and materials for implementing
          policies in the Guide to Action, including a guidebook
          and tracking tool to support Lead by Example
          initiatives; a guidebook for measuring the multiple
          benefits of clean energy; and guidance for undertaking
          energy efficiency and renewable energy potential studies
          and designing clean energy funds.
        • Expand collaboration with program partners, providing
          targeted support for their efforts to develop and
          implement effective clean energy policies, including
          sponsoring peer exchange opportunities to assist states
          in learning about leading policies.
        • Release the Co-Benefits Risk Assessment Model
          (COBRA), a peer reviewed tool that enables officials to
          compare air pollution scenarios associated with different
          policies and incorporate human health  effects  into their
          decisions.
        • Establish a Center of Excellence on SMART Innovations
          for  Urban Climate and Energy to research and help
          implement  environmentally preferable technologies
          and policies for reducing urban temperatures.
        • Publish the Heat Island Guidebook presenting easy to-
          understand action strategies on temperature reducing
          measures—in particular, cool roofing and strategic tree
          planting—and implementation guidance  for
          governments and community groups.

        Clean Energy and Utility Regulatory
        Policies
        EPA has been assisting state public utility commissions
        (PUCs) and others with tools and resources  for exploring
        and implementing clean energy policies for a number of
        years,  including maintaining an important  database on
        power plant emissions, eGRID, that allows policy
        makers to track the progress of key policies.
In 2005, EPA:
• Announced a set of pilots with seven interested
  PUCs—those in Arkansas, Connecticut, Hawaii,
  Minnesota, New Mexico, New Jersey, and the District
  of Columbia—to explore approaches for encouraging
  energy efficiency and clean energy resources within
  their processes. Highlights to date include assisting
  state PUCs in exploring options for energy efficiency
  proceedings; providing materials on the success of
  time-of-use rates in promoting energy efficiency;
  assisting with state-level workshops to explore clean
  energy policies; and sharing of best practice information
  on energy efficiency programs.
• Initiated, in conjunction with DOE, an effort to bring
  utilities, their regulators, and other key stakeholders
  together to identify and address utility regulatory and
  other barriers limiting greater investment in energy
  efficiency in a National Action Plan for Energy
  Efficiency. The effort is co-chaired by Diane Munns,
  President of the National Association of Regulatory
  Utility Commissioners, and Jim Rogers, CEO of Duke
  Energy, and involves more than 50 representatives from
  leading gas and electric utilities, state agencies, energy
  consumers, energy service providers, and environmental
  and  energy efficiency organizations (see Table 22). This
  leadership group has developed a work plan for  meeting
  their objectives, which will be carried out in 2006 (see
  letter excerpt, p. 51).

What  to Expect in 2006 and  Beyond
EPA will continue to assist interested state PUCs in their
efforts  to advance clean energy by organizing workshops,
keeping eGRID up  to date, sharing experiences, and
conducting research on best practice policies and programs
across the country. EPA will continue to facilitate the
National Action Plan for  Energy Efficiency in conjunction
with DOE. Key milestones include the development and
release  of major recommendations and the announcement
by the  leadership group and others of actions they will
take to advance energy efficiency in their areas of business.
50

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                                                                                 STATE AND  LOCAL PROGRAMS
TABLE 22. NATIONAL ACTION PLAN FOR ENERGY EFFICIENCY LEADERSHIP GROUP
 Alliance to Save Energy
 American Council for an Energy-
    Efficient Economy
 American Electric Power
 Austin Energy
 Baltimore Gas and Electric
 Bonneville Power Administration
 California Energy Commission
 California Public Utilities
    Commission
 Connecticut Consumer Counsel
 Connecticut Department of
    Environmental Protection
 Connecticut Department of Public
    Utility Control
 District of Columbia Public Service
    Commission
 Duke Energy
 Entergy Corporation
 Environmental Defense
 Exelon
 Food Lion
 Great River Energy
ISO New England Inc.
Johnson Controls
MidAmerican Energy Company
Minnesota Public Utilities
Commission
National Association of Regulatory
   Utility Commissioners (NARUC)
Natural Resources Defense Council
New Jersey Board of Public Utilities
New Jersey Natural Gas
   (New Jersey Resources
   Corporation)
New York Power Authority
New York State Public Service
   Commission
North  Carolina Air Office
North  Carolina Energy Office
Office  of the Ohio Consumers'
   Counsel
Pacific Gas and Electric
PJM Interconnection
PNM Resources
Sacramento Municipal Utility
   District
Santee Cooper
Seattle City Light
Servidyne Systems, LLC
Southern California Edison
Southern Company
State of Maine
Tennessee Valley Authority
Texas State Energy Conservation
   Office
The Dow Chemical Company
Tristate Generation and
   Transmission
   Association, Inc.
USAA Realty Company
Vectren Corporation
Vermont Energy Investment
   Corporation
Wal-Mart Stores, Inc.
Washington Utilities and
   Transportation Commission
Waverly Light and Power
Xcel Energy
  OCTOBER 3, 2005

  EXCERPT FROM LETTER FROM CO-CHAIRS TO THE LEADERSHIP GROUP FOR THE
  NATIONAL ACTION PLAN FOR ENERGY EFFICIENCY
  As an important energy market participant, you know that today we face a number of challenges in securing
  affordable, reliable, secure and clean energy to meet our nation's growing energy demand. Your leadership is
  necessary to help us meet this challenge.
  Energy efficiency is a critically under-utilized resource in the nation's energy portfolio. Those states and utilities
  that have made significant investments in energy efficiency have lowered the growth for energy demand and
  moderated their energy costs. However, many hurdles remain that block broader investments in cost-effective
  energy efficiency. That is why we have agreed to chair the Energy Efficiency Action Plan. It is our hope that with
  the help of leading organizations like yours, we will identify and overcome these hurdles.
  Through this Action Plan, we intend to identify the major barriers currently  limiting greater investment by utilities
  in energy efficiency. We will develop a series of business cases that will demonstrate the value  and contributions
  of energy efficiency and explain  how to remove these barriers (including regulatory and market challenges).
  These business cases, along with descriptions of leading energy efficiency programs, will build upon practices
  already in place across the country.
  Our goal is to use the resulting ideas and products, beginning in 2006, to spark an aggressive new national
  commitment to energy efficiency ... and a dynamic Energy Efficiency Action Plan for the nation.
                                        Diane Munns
                                        President, NARUC
                                        Member, Iowa Utilities Board
                                    Jim Rogers
                                    President and CEO
                                    Duke Energy
                                                     ENERGY STAR® and Other Climate Protection Partnerships 2005 Annual Report 51

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        METHANE  PROGRAMS
Natural Gas STAR Program
       Twenty times more effective than CO2 at trapping heat in
       the atmosphere, methane (CH4) is both a potent greenhouse
       gas and a valuable energy resource (see Table 23).

       EPA's methane partnerships include the Landfill Methane
       Outreach Program, the Natural Gas STAR Program, and
       the Coalbed Methane Outreach Program. All follow a
       successful strategy—to provide reliable and comprehensive
       technical, economic, and regulatory information on
       effective emissions reduction technologies and practices.
       In addition, EPA's methane partnerships offer tools to help
       industrial sector partners implement methane reduction
       opportunities and recognize those partners demonstrating
       leadership.  Partners can gain a competitive advantage by
       improving their operating efficiency. EPA also provides
       information and tools to the agricultural community to
       encourage methane reductions (see sidebar below).

       In 2005, the methane programs saved a combined
       14.2 MMTCE, an increase of more than 50 percent since
       2000 (see Table 24). These climate partnerships, in
       conjunction with a regulatory program to limit air
       emissions from the nation's largest landfills, have reduced
       national methane emissions to 10 percent below 1990
       levels, and they are projected to remain below 1990 levels
       through at least 2012 (see Figure 18).
                              EPA POLLUTION PREVENTER
Natural Gas STAR is a voluntary partnership
between EPA and the U.S.        ^^_^^
natural gas industry designed to
overcome barriers to the
adoption of cost-effective technologies
and practices that reduce emissions of methane. Initiated
in 1993, Natural Gas STAR welcomes partners from all
sectors of the supply chain—production, processing,
transmission, and distribution—to participate in the
program and reap the benefits of methane reduction. EPA
has developed a range of tools and resources to help
corporate partners implement best management practices
designed to reduce gas loss. The program achieved
significant reductions through 2005, reducing methane
emissions from natural gas systems by 7-5 MMTCE in
2005 alone.

In 2005, Natural  Gas STAR:
• Achieved 56 percent industry participation across all
  major sectors (production, processing, transmission,
  and distribution).

• Partnered with seven new companies, bringing the total
  number of partners to 114.
• Conducted six technology transfer workshops covering
  all four sectors.
         AGRICULTURAL 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
         184 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 2005, EPA AND USDA:
         • 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.
         • 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 implementation
           of Section 9006 of the 2002 Farm Bill.

         WHAT TO EXPECT IN 2006 AND BEYOND
         • Collaboration with state energy programs across the country to facilitate the development of anaerobic digesters
           as renewable energy resources
         • Organization of a national conference to provide environmental, program, market, state-of-the-art technical, and
           funding information on anaerobic digestion systems
52

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                                                                           METHANE PROGRAMS

TABLE 23. GLOBAL WARMING POTENTIALS (GWPS) AND ATMOSPHERIC LIFETIMES OF GREENHOUSE GASES
GREENHOUSE GAS
Carbon Dioxide
Methane
Nitrous Oxide
Hydrofluorocarbons
Perfluorocarbons
Sulfur Hexafluoride
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
Source: IPCC 1996
TABLE 24. METHANE PROGRAMS: EPA GOALS AND ACHIEVEMENTS
PROGRAM
Natural Gas STAR
Industry Participation (% in program)
Annual Gas Savings (MMTCE)
Coalbed Methane Outreach Program
Annual Methane Reductions (MMTCE)
Landfill Methane Outreach Program
Number of Projects
Annual Methane Reductions (MMTCE)
TOTAL REDUCTIONS (MMTCE)
2005 GOAL

66%
6.3

1.8
289
4.5
12.6
2005 ACHIEVEMENT

56%
7.5

2.2
300
4.5
14.2
2006 GOAL

59%
6.5

1.9
309
4.8
13.2
FIGURE 18. PARTNER ACTIONS ARE PROJECTED TO MAINTAIN METHANE EMISSIONS BELOW 1990
LEVELS THROUGH 2012
     1990
1995
2000
2005
2010
2012
                                            ENERGY STAR® and Other Climate Protection Partnerships 2005 Annual Report 53

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        • Recognized five outstanding partners with Partner of
          the Year Awards and promoted their achievements in a
          PSA that ran in the American Oil & Gas Reporter,
          Business & Industry Connection, and American Gas
          Journal (see p. 55). EPA also honored seven oil and gas
          partner companies for Continuing Excellence (see list
          on p. 55).

        What to Expect in 2006 and Beyond
        • Continue to work with existing partner companies to
          expand their current methane emissions reduction projects
        • Conduct nine technology transfer workshops, including
          one Web-based workshop, to enable broader company
          participation
        • 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
        • Expand Natural Gas STAR internationally in support
          of the Methane to Markets Partnership

        Coalbed Methane Outreach  Program
        The Coalbed Methane Outreach
        Program (CMOP) collaborates with
        large coal companies and small
        businesses to reduce methane
        emissions from underground coal
        mines through the development of
        environmentally beneficial, cost-effective coal mine
        methane (CMM) projects. CMOP efforts focus on
        providing high-quality, project-specific information and
        technical assistance to the coal industry. These include
        analyses of technologies and  potential projects, mine-
        specific project feasibility assessments, state-specific
        analyses of project potential, market evaluations, and
        guides to state, local, and federal assistance programs. As a
        result of EPA's successful collaboration with large coal
        companies and small specialized businesses, the percentage
        of coal mine methane recovered grew from 25 percent in
        the early 1990s to more than 70 percent in  2005-
        • To capture the remaining  methane emitted from
          degasification systems, EPA is working with industry to
          use CMM in small-and large-scale power generation,
          for mine heating and coal drying, and to upgrade low-
          quality gas to pipeline specifications.
• EPA is expanding its focus to include the methane
  emitted from coal mine ventilation systems and from
  abandoned mines. These systems represent about
  77 Bcf of methane annually, or 45% of U.S. CMM
  liberated in a single year.
• CMOP achieved significant results through 2005-
  Working with the operators of virtually every major
  U.S. underground  coal mine, CMOP achieved a
  reduction of 2.2 MMTCE in 2005- These results
  include those from 20 CMOP projects that captured
  and used methane  from 30 U.S. abandoned mines.

In 2005, the Coalbed Methane Outreach Program:
• Launched a targeted outreach effort with the mining
  industry in the Western United States to increase mine
  methane capture and use in Colorado, New Mexico,
  and Utah.
• Evaluated potential sites for detailed monitoring and
  site measurements of methane emissions.
• Developed more robust basin-specific estimates for
  methane emissions from surface mines.

What to Expect in 2006 and Beyond
• Provide targeted analyses for at least one Western
  U.S. coal mine to assess the technical and economic
  feasibility of potential coal mine methane  end  use
  strategies
• In cooperation with CONSOL Energy and DOE,
  support efforts to design, install, and operate the first
  test-scale demonstration of ventilation air  oxidation
  technology in the United States
• Develop enhanced tools to assist potential project
  developers, including a project finance model and a
  comprehensive database of U.S. CMM reduction
  projects
• Support the development of methane recovery and
  utilization projects at abandoned mines by identifying
  candidate mines
54

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                                                                                        METHANE PROGRAMS
Natural  Gas STAR

2005 Award Winners

Production Partner of the Year
Devon Energy Corporation
Devon joined the Natural Gas STAR Program in 2003
and received the Rookie of the Year Award in 2004 for its
active program. Devon submitted its first annual report
to EPA in 2005, which included the highest annual
emissions reductions among the production partners for
2004—6.3 billion cubic feet (Bcf). These reductions were
the result of the implementation of core best management
practices, as well as six Partner Reported Opportunities
(PROs), bringing the company's  cumulative methane
emissions reductions to 10.6 Bcf. The company has done
an excellent job of building field and management
support for the Gas STAR Program. Based on its
experience, Devon developed a  presentation on how to
replicate its success, delivered it at three technical
workshops, and made it available to  all Natural Gas
STAR partners.

Processing Partner of the Year
Enbridge Energy Partners L.P.
Enbridge joined the Natural Gas STAR Program in
December 2003. In its first annual report in mid-2005,
the company reported the highest emissions reductions
of all processing partners for 2004—nearly 850,000 cubic
feet (Mcf)—after implementing five PROs. Enbridge has
contributed to the Natural Gas STAR Partner Update and
participated in the Dallas processing  workshop, which
highlighted the company's optical imaging work with
Leak Survey, Inc.

Transmission Partner of the Year
Northern Natural Gas
Northern Natural Gas joined the Natural Gas STAR
Program in  February 2003. In 2005, Northern Natural
Gas reported methane emissions reductions of 1.6 Bcf
for 2004, which  brought the company's cumulative
emissions reductions to 10.6 Bcf. Northern Natural Gas
has consistently given strong support to Gas STAR
workshops, including sponsorship of the  June 2005
technology transfer workshop in Midland, Texas.

Distribution Partner of the Year
DTE Energy-MichCon
DTE Energy-MichCon has been a Gas STAR partner
since  1996. In 2004, the company reported the second
highest emissions reductions in  the distribution sector,
with methane savings of 0.4 Bcf. To date, DTE's
cumulative emissions reductions total 1.3 Bcf.
             Congratulations to Those
             Who Set the Bar High,
    To k-.;im IIKIIV III* ml joining Hn^- mcL^rv k-;wJi-r\ .all Ilk-
    NAinl Gas STAR ['njuram A AU-A-U-Mtfb ar
International Partner of the Year
Occidental Oil and Gas Corporation

Occidental joined the Natural Gas STAR Program in
2004 and has concentrated its efforts on helping to
move the program into the international arena.
Occidental was the first company to sponsor an
international Natural Gas STAR workshop under the
Methane to Markets Initiative.

Continuing Excellence

EPA also honored seven Natural Gas STAR partners as
Continuing Excellence award winners, recognizing the
companies' long-standing commitment to the program:
Columbia Gas & Columbia Gulf Transmission
Duke Energy Gas Transmission
El Paso Pipeline Group
Kerr-McGee Oil & Gas Corporation
Southwest Gas Corporation
Western Gas Resources
                                                   ENERGY STAR® and Other Climate Protection Partnerships 2005 Annual Report 55

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                                              LANDFILL METHANE
                                              OUTREACH PROGRAM
Landfill Methane Outreach Program
Of all sources of human-related
(anthropogenic) methane emissions
in the United States, landfills are the
largest. The Landfill Methane
Outreach Program (LMOP)
launched in 1994 encourages the development of landfill
gas energy (LFGE) projects. The capture and use of
landfill gas (LFG) can not only directly reduce methane
emissions, but also indirectly reduces CO2 emissions by
avoiding the use of fossil fuels.

LMOP's varied tools and technical resources—including
feasibility analyses, decisionmaking software for evaluating
project economics, a database of over 600 candidate
landfills, a project development handbook, and energy
end-user analyses—help landfill owners and operators
overcome the barriers they encounter as they develop new
LFGE projects.

Over the past decade, LMOP has assisted with
300 projects and reduced methane emissions from
landfills by about 27 MMTCE. In 2005 alone, LMOP
emissions reductions totaled 4.5 MMTCE. In addition,
the total number of landfill gas energy projects grew to
nearly 400 nationwide, and EPA assisted all 25 LFGE
projects that became operational during the year.
In 2005, the Landfill Methane Outreach Program:
• Assisted in the development of 22 new landfill gas
  energy projects and 3 project expansions, for a
  cumulative total of 300 projects since LMOP was
  launched.
• Welcomed 73 new partners, increasing participation by
   16 percent and bringing the total number of LMOP
  partners to 490.
• Provided technical assistance to more than 15
  corporations, helping them identify opportunities to
  advance landfill gas energy as a reliable, low-cost source
  of energy. Additionally, over 95 analyses were
  conducted using a new LMOP Locator software tool to
  identify LFG opportunities near corporate and
  industrial facilities.
• Conducted five state workshops that attracted more
  than 400 participants to promote the use of landfill gas
  as a cost-effective, low emissions energy source.
• Recognized the outstanding accomplishments of eight
  program partners (see pp. 57-58).

What to Expect in 2006 and Beyond
• Assist in the development of more than 40 new landfill
  gas energy projects
• Expand efforts to promote the benefits of LFG energy
  to economic development offices, emphasizing job
  creation and tax revenue opportunities for states and
  communities
• Host the 10th Anniversary LMOP Conference, Project
  Expo, and Awards Ceremony to showcase the top
  LMOP partners and projects and discuss the latest
  industry trends
56

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                                                                                         METHANE  PROGRAMS
LMOP 2005 Award Winners
EPA recognized the outstanding accomplishments of eight landfill methane partners in 2005 for their efforts to
reduce emissions of methane and expand the nation's renewable energy sources.

LMOP Project of the Year (Direct Use)
Lanchester Landfill Gas Utilization Project
The Lanchester Landfill Gas Utilization Project, developed in south-central Pennsylvania by LMOP Industry Partner
Granger Energy, was the first multi-end user project in the State. The project includes a 13-mile pipeline that
transports 4,000 standard cubic feet per minute (scfm) of LFG from LMOP Community Partner Chester County Solid
Waste Authority's landfill to two industrial end users. Dart Container Corporation is now using the LFG to fuel nine
boilers, two ovens, and two thermal oxidizers; the company is 100-percent reliant on LFG for its energy needs.
Advanced Food Products uses the LFG to fuel three boilers and expects to bring more online. Granger estimates the
Lanchester project purchased more than $1  million in local materials and created more than 100 construction jobs
for local contractors.

LMOP Project of the Year (Electricity Generation)
Santee Cooper's Green  Power Generating Station
LMOP Partners Santee Cooper and Allied Waste teamed up to create a green power generating facility at the Lee
County Landfill in South Carolina. The $7 million facility, consisting of three 1.8 megawatt (MW) engines, is the
second renewable energy project for Santee Cooper, which offers green power to its customers (including  15 of
the  state's electric cooperatives).  Since 2001, Santee Cooper has sold more than 10,000 kWh of landfill gas to
energy (LFGE) electricity. Santee  Cooper is leading the way for green power programs in the Southeast. It has plans
for a potential expansion at the Lee County  Landfill to more than 21 MW by 2010, contributing to a goal of having
54 MW of green power on line by 2012.

LMOP Project of the Year (Alternate Fuel)
Biodiesel Production Facility, Denton, Texas
Biodiesel Industries, Inc. is working with LMOP Industry Partner DTE Energy to use LFG to fuel the process needs
of a 3 million gallon  biodiesel production facility in Texas. This is the first facility in the world using LFG to  produce
this alternative vehicle fuel. The biodiesel produced at this plant fuels the city's fleet of garbage trucks and other
utility vehicles. Using the 100,000 Btus of LFG to power the biodiesel plant gives Biodiesel Industries and the City
of Denton, Texas, a partner in the project and LMOP Community Partner, a hedge against rising fuel prices. The
Denton Landfill, which was highlighted at the  LMOP Project Expo in 2003, will also house a larger LFGE project
expected to be operational  in 2006.

LMOP Industry Partner of the Year
Granger Energy
Granger Energy has  more than 30 years of landfill experience; in  1985 it became the first organization to develop
an LFGE project in Michigan. Granger owns and operates numerous landfills and LFGE projects, with 13 projects
developed or in development in six states. Granger previously won LMOP's 2001 Industry Partner of the Year for its
LFGE project in conjunction with Rolls-Royce.  This year's Project of the Year at the Lanchester Landfill is yet another
example  of the company's determination to  see LFGE projects through to successful completion. Granger earned
Industry Partner of the Year in  2005 owing to its strong commitment to promoting and advancing  environmentally
and economically beneficial landfill gas energy project development. By diversifying its project portfolio during a
period of market uncertainty and showing its willingness to tackle market barriers to benefit the landfill gas
industry.  Granger demonstrates superior industry leadership.
                                                    ENERGY STAR® and Other Climate Protection Partnerships 2005 Annual Report 57

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           LMOP 2005 Award Winners (continued)

           LMOP Energy Partner of the Year (End User)
           Interface Flooring Systems
           LMOP Energy Partner Interface Flooring Systems has a corporate mission to promote projects that are both
           environmentally sustainable and economically feasible. In 2000, the company reached out to the City of LaGrange,
           Georgia, to propose building a 10-mile pipeline to bring LFG from the city's landfill to Interface's carpet production
           facility. This pipeline became operational in October 2005, reducing Interface's natural gas demand at the facility by
           20 percent. Additionally, by securing the GHG reduction credits generated by the landfill's flare, the project helped
           Interface offset all GHG emissions for its North American manufacturing facilities. Interface has been successful in
           garnering media interest in its  LFG project, which is stimulating other corporate interest in LFGE.

           LMOP Energy Partner of the Year (Provider)
           Wabash Valley Power  Association
           Wabash Valley Power Association is an Indiana-based generation and transmission cooperative providing wholesale
           power to 27 distribution systems in the Midwest. In 2005, Wabash Valley Power constructed two new LFGE facilities
           (in Jay County, Indiana and Liberty, Indiana) and acquired three other existing Indiana facilities for a total of 22 MW of
           LFG-fueled generation in its power portfolio. The two new projects were developed in partnership with LMOP Industry
           Partner Waste Management. The five plants all consist of Caterpillar engine-generators manufactured in Indiana,
           adding to the in-state economic benefit of the LFGE projects. Wabash Valley Power created the green power product
           EnviroWatts® to sell  the renewable energy to its customers; more than 4 percent of Wabash's customers are
           purchasing green power through EnviroWatts.

           LMOP State Partner of the Year
           Pennsylvania Department of Environmental Protection
           The Pennsylvania Department  of Environmental Protection (PA DEP) joined LMOP in 2003 and launched a number
           of initiatives to encourage  and  foster the use of LFG. PA DEP also worked with LMOP to develop A Primer for the
           Commonwealth of Pennsylvania for Developing Landfill Gas Utilization. The state passed the Alternative Energy
           Portfolio Standards  Act, which lists LFGE as a Tier I technology. In addition, PA DEP has been very active in providing
           grant assistance to  LFG projects. The Harvest Energy Grant provided funding to three LFGE projects, the Alternative
           Fuels Incentive Grant provided more than $1 million for LFG use as an alternative fuel, and the Pennsylvania Energy
           Development Authority funded two LFG projects in 2005.

           LMOP Community Partner of the Year
           Fairfax County, Virginia
           LMOP Community Partner  Fairfax County, Virginia owns and  operates the I-95 Landfill, which has a 6.4 MW electricity
           project, as well as a  direct-use project of approximately 1,000 scfm of LFG at its wastewater treatment plant. Although
           most of the LFG collected was already being put to use, the County decided to replace the existing propane-fired
           heating system in its onsite maintenance shop with LFG-fired infrared tube heaters to expand LFG utilization. The new
           LFG heating system improved the working conditions in the shop. The county will save money by avoiding the
           purchase of propane for the old heaters, and the use of LFG will reduce GHG emissions.
58

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                                                                                      METHANE PROGRAMS
 "By tapping into the power of landfill gasses, we are building on two of President Bush's
 nationalgoak: reducing domestic greenhouse gas production and developing alternative and
 renewable sources of energy, "said EPA Administrator Stephen L. Johnson.  "EPA and our
 partners are taking methane waste and turning it into  wealth—-proving that doing what's
 good for the environment is  also good for business."
PROGRAM EVALUATION: MEASURING RESULTS IN THE METHANE PROGRAMS

EPA relies on the application of sound, comprehensive analyses 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
LANDFILL METHANE OUTREACH
COALBED METHANE OUTREACH
  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 issues are resolved.
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
are appropriate to the project.
The factors are based on
research, discussions with
experts in the LFG industry, and
published references.
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.
There are no regulatory
requirements for recovering and
using  coal mine methane; such
efforts are entirely voluntary. EPA
estimates coal mine methane
recovery attributable to its
program activities on a mine-
specific basis, based on the
program's interaction with mines.
                                                   ENERGY STAR® and Other Climate Protection Partnerships 2005 Annual Report 59

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HIGH  GLOBAL WARM ING

POTENTIAL  GAS

PROGRAMS

EPA is working closely with industry to improve
technologies and processes that will substantially reduce
U.S. emissions of the high global warming potential
(GWP) gases released as byproducts of industrial
operations. These partnership programs assist key
industries in the development of cost-effective operational
improvements that will help reduce emissions of
perfluorocarbons (PFCs), hydrofluorocarbons (HFCs),
and sulfur hexafluoride (SF6)—all particularly potent
greenhouse gases. When compared ton-for-ton with CO2,
these three gases each trap much more heat in the
atmosphere. PFCs and SF6 also have very long
atmospheric lifetimes (see Table 25). Despite the potential
for sizable growth in high GWP greenhouse gas emissions,
EPA's partner industries are expected to maintain their
emissions substantially below 1990 levels through the  year
2012 (see Figure 19). Greenhouse gas emissions reductions
across these programs totaled 11.5 MMTCE in 2005
(see Table 26).

The Voluntary Aluminum Industrial
Partnership (VAIP)
In support of the President's
Climate VISION (Voluntary
Innovative Sector Initiatives:
Opportunities Now)
initiative, VAIP is committed
to reducing direct emissions of PFCs and CO2 where
technically feasible and cost effective. The aluminum
industry's goal is to achieve a direct carbon intensity
reduction of 53 percent from 1990 levels by 2010. This
involves reducing emissions of perfluoromethane (CF4)
and perfluoroethane (C2F6), which are inadvertent
byproducts of the smelting process, and reducing CO2
emissions caused by the consumption of the carbon anode.
Their Climate VISION commitment equates to an
additional direct carbon intensity reduction of 25 percent
beyond the 2000 achievement.
I.MJL STK1AL K\KI \LKSH1P
In 2005, the Voluntary Aluminum Industrial
Partnership:
• Reduced PFC emissions by more than 45 percent and
   direct carbon emissions by more than 59 percent
   compared to the industry's 1990 baseline.
• Benchmarked emissions reduction progress for various
   technologies to help partner companies identify further
   reduction potential.
• Promoted the PFC emissions reduction actions and
  VAIP progress in journals and at conferences, including
   the International Non-CO2 Conference in The
   Netherlands.
• Completed efforts with the International Panel on
   Climate Change (IPCC) to update emissions inventory
   methods for the  aluminum sector.

HFC-23 Emission Reduction Program
U.S. manufacturers of HCFC-22 and EPA have worked
together since 1993 to reduce emissions of the greenhouse
gas HFC-23, a byproduct in the production of HCFC-22
and the most potent and persistent of the hydrofluoro-
carbons. HCFC-22 is most commonly used as a
refrigerant in residential and commercial air  conditioning.
Through this program, EPA encourages all U.S. producers
of HCFC-22 to develop and implement feasible, cost-
effective processing practices and technologies to reduce
HFC-23 emissions. In 2005, EPA continued to partner
with 100 percent of U.S. HCFC-22 producers to
implement process  optimization and abatement measures
that will decrease byproduct emissions of HFC-23.

To date, EPA's partners have succeeded in lowering
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).
In 2005, emissions  were 6.2 MMTCE less than they
would have been had production continued  at 1990
emissions intensity  levels.

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                                               HIGH GLOBAL WARMING POTENTIAL GAS PROGRAMS

TABLE 25. GLOBAL WARMING POTENTIALS (GWPS) AND ATMOSPHERIC LIFETIMES OF GREENHOUSE GASES
GREENHOUSE GAS
Carbon Dioxide
Methane
Nitrous Oxide
Hydrofluorocarbons
Perfluorocarbons
Sulfur Hexafluoride
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
Source: IPCC 1996
FIGURE 19. PARTNER ACTIONS ARE PROJECTED TO MAINTAIN EMISSIONS OF HIGH GWP GASES
BELOW 1990 LEVELS THROUGH 2012
    30
      1990
1995
2000
2005
2010       2012
TABLE 26. HIGH GWP GAS PROGRAMS: EPA GOALS AND ACHIEVEMENTS

VOLUNTARY ALUMINUM
INDUSTRIAL PARTNERSHIP (VAIP)
Industry Participation (% in program)
Reductions (MMTCE)
HFC-23 PARTNERSHIP
Industry Participation (% in program)
Reductions (MMTCE)
OTHER STEWARDSHIP
PROGRAMS
Industry Participation (% in program)1
Reductions (MMTCE)
TOTAL REDUCTIONS (MMTCE)
2005 GOAL

98%
2.3

100%
4.8

50-100%
3.0
10.4
2005 ACHIEVEMENT

98%
2.3

100%
6.2

45-100%
3.0
11.5
2006 GOAL

98%
2.7

100%
4.9

50-100%
3.8
11.4
 Participation varies from 45% of net generating capacity for electric power systems to 100% for primary magnesium producers.

                                              ENERGY STAR® and Other Climate Protection Partnerships 2005 Annual Report 61

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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,
Asia, and North America to set the first    *#>?    rtjS^
global target for reducing greenhouse gas
emissions. Semiconductor manufacturers have worked
alongside EPA to identify and implement PFC-reducing
process changes and manufacturing tool improvements for
the production of integrated circuits. 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
world's first industry-wide, global greenhouse gas
emissions reduction target. This type of aggressive goal
setting reassures international governments, industry
suppliers, and the public of the semiconductor industry's
commitment to climate protection. Today's challenge is to
expand the  global industry's cooperative climate protection
initiative to include China's semiconductor manufacturers,
the world's fastest growing integrated circuit (1C)
production center.

In 2005, the PFC Reduction/Climate Partnership for
the Semiconductor Industry:
• Reduced absolute PFC emissions 65 percent below
   1999  levels while U.S.  manufacturing continued to
   expand. EPA's semiconductor industry partners are on
   track to meet their 2010 WSC/Climate VISION
   commitment.
• Led the IPCC's initiative to revise fluorinated
   greenhouse gas emissions reporting guidelines for
   electronics manufacturing, including semiconductors,
   flat panel displays, and photovoltaics.
• 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 WSC in controlling PFC
   emissions.
                                                               • Facilitated emissions reduction technology transfer
                                                                 between related electronic manufacturing sectors such
                                                                 as semiconductor and flat panel displays to identify
                                                                 and implement the most cost-effective PFC reduction
                                                                 strategies.
                                                               • Completed and published the 2005 State-of-the-
                                                                 Technology Report on Reduction of Perfluorocompound
                                                                 (PFC) Emissions in cooperation with the Semiconductor
                                                                 Industry Association.

                                                               Sulfur Hexafluoride (SF6) Emissions
                                                               Reduction  Partnership for Electric
                                                               Power Systems
                                                               SF6 is the most potent and persistent
                                                               greenhouse gas. Used primarily by
                                                               electric utilities, SF6 is a gaseous
                                                               dialectric for high-voltage circuit
                                                               breakers and gas-insulated substations.
                                                               The global warming potential of SF6 is 23,900 over a
                                                               100-year time horizon, which means it is 23,900 times
                                                               more effective at trapping infrared radiation than an
                                                               equivalent amount of CO2.

                                                               In 1999, EPA partnered with several electric utilities to
                                                               form a voluntary program to reduce SF6 emissions. In
                                                               addition to providing a means to actively address climate
                                                               change, this program has helped partner companies reap
                                                               financial savings through reduced SF6 gas purchases. In
                                                               2005, partner companies reported SF6 emissions of almost
                                                               416,000 pounds, bringing their average SF6 emission
                                                               rates down to 8.4 percent of the total nameplate capacity
                                                               of installed equipment.

                                                               In 2005, the SF6 Emissions Reduction Partnership
                                                               for Electric Power Systems:
                                                               • Recruited four new companies into the partnership:
                                                                 LG&E Energy (KY); Otter Tail Power (MN); Great
                                                                 River Energy (MN); PECO Energy Delivery (PA).
                                                               • Completed a new equipment study showing that that
                                                                 leak rates for high-voltage equipment installed between
                                                                 1998 and 2002 were as much as two times improved
                                                                 over the industry standard for new equipment.
                                                               • Conducted three Webcasts with SF6 partners, prospects,
                                                                 and other sector vendors on SF6 emissions reporting
                                                                 requirements and other technical program issues.
62

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                                                       HIGH GLOBAL WARMING  POTENTIAL GAS PROGRAMS
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
 HFC-23 EMISSION REDUCTION
 PROGRAM
  ENVIRONMENTAL
  STEWARDSHIP PROGRAMS
  All VAIP partners agree to report
  aluminum production and anode
  effect frequency and duration in
  order to estimate annual RFC
  emissions.
  Reductions are calculated by
  comparing current emissions to a
  business-as-usual baseline that
  uses the industry's 1990 emissions
  rate. Changes in the  emissions rate
  (per ton production)  are used to
  estimate the annual greenhouse
  gas emissions and reductions
  resulting from the program.
  The aluminum  industry  began
  making significant efforts to  reduce
  RFC emissions  as a direct result of
  EPA's climate partnership program.
  Therefore, all reductions achieved
  by partners are assumed to be the
  result of the 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 by
 comparing current emissions to a
 business-as-usual baseline that
 uses the industry's 1990 emission
 rate. Changes in the emissions rate
 are used to estimate the annual
 greenhouse gas emissions and
 reductions resulting  from the
 program.
 Subsequent to a series of meetings
 with EPA, industry began making
 significant efforts  to reduce  HFC-23
 emissions. All U.S. producers
 participate in the program;
 therefore, all reductions achieved
 by manufacturers are assumed to
 be the result of the program.
  Partners report emissions and
  emissions reductions based on
  jointly developed estimation
  methods and reporting protocols.
  Data collection methods are sector
  specific, and data are submitted to
  EPA either directly or through a
  third party.
  Reductions are calculated by
  comparing current emissions to a
  business-as-usual baseline, using
  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 share of the reductions
  attributable to EPA's programs are
  identified based on a detailed
  review of program activities and
  industry-specific information.
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. Over the past years, awards have
                   been presented to individuals and organizations from 16 countries: Australia, Belgium, Brazil, Canada,
                   Chile, China, France, India, Italy, Japan, Mexico, Netherlands, South Korea, Sweden, United Kingdom, and
                   the United States. This year, 13 individuals and organizations earned the award by crafting international,
                   national, state, and local policies; reducing energy consumption; and inventing technologies that protect
                   the climate.
   CORPORATE, GOVERNMENT
   AND MILITARY
ORGANIZATIONS AND
ASSOCIATIONS
INDIVIDUALS
   Arizona Public Service Company
   Phoenix, Arizona

   Baxter International Inc.
   Deerfield, Illinois

   DENSO Corporation
   Kariya, Japan

   IBM Corporation
   Armonk, New York

   Johnson & Johnson
   New Brunswick, New Jersey

   National Renewable Energy
     Laboratory of the U.S.
     Department of Energy
   Golden, Colorado

   United States Air Force

   Yokota Tohoku Company
   Tokyo, Japan
Mobile Air Conditioning Society
  Worldwide
Lansdale, Pennsylvania

Refrigerant Reclaim Australia
Canberra, Australia
Susan J. Brown
  California Energy Commission
Sacramento, California

Mayor Gregory J. Nickels
Seattle, Washington

Barry G. Rabe
  University of Michigan
Plymouth, Michigan
                                                      ENERGY STAR® and Other Climate Protection Partnerships 2005 Annual Report 63

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                                               SFs Emission Reduction ':
                                               Partnership forthe Magnesium Industry
SF6  Emission Reduction Partnership for
the  Magnesium Industry
The U.S. magnesium industry is also
working with EPA to identify and
encourage the adoption of best
management practices for reducing
emissions of SF6. Launched in 1999,
this partnership works to reduce SF6 emissions from
magnesium production and casting operations and
currently includes almost 80 percent of the U.S.
magnesium industry. Partner companies are striving to
completely eliminate magnesium industry-related SF6
emissions by the end of 2010.

In 2005, the SF6  Emission Reduction Partnership
for the Magnesium  Industry:
• Held SF6 emissions  steady at 2004 levels, equaling an
   absolute reduction of 19 percent since the program's
   inception in 1999- 2005 was the sixth year in which
   EPA collected annual  SF6 emissions reports from
   magnesium partners.
• Organized and  led the first International Melt
   Protection Users Group Round Table in  conjunction
   with the 2005 Annual World Magnesium Conference
   in Germany. More than 20 industry and government
   participants from Asia, Europe, North America, and the
   Middle East exchanged technical information on
   phasing out SF6-based melt  protection.
• 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 that both gases  are capable of
   reducing greenhouse gas emissions by more than
   99 percent compared  to the traditional SF6-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.
• Developed and distributed a simplified cover gas
   emissions tracking and reporting tool and held a
   Webcast training session for EPA's magnesium partners.

Mobile Air Conditioning Climate
Protection Partnership
Motor vehicle air conditioners consume more energy than
any other auxiliary vehicle equipment and account for a
significant portion of global greenhouse gas emissions.13
In the United States  alone, vehicle air conditioners
consume 7 billion gallons of gasoline every year,
equivalent to over 16 MMTCE.14 Refrigerant emissions
add another 8.7 MMTCE.15

In 1998, the Society of Automotive Engineers (SAE),
the Mobile Air Conditioning Society Worldwide, and
EPA formed a global voluntary partnership to reduce the
climate impacts of mobile air conditioning. Since then
membership has grown to include representatives from
Australia, Canada,  Europe, and Japan; environmental and
industry non-governmental organizations (NGOs); and
most of the world's vehicle manufacturers and their
suppliers. The partnership has four goals:
• Promote cost-effective designs and improved service
   procedures to minimize refrigerant emissions
• Promote next-generation mobile air conditioning
   systems that are  better for the  environment while
   satisfying customer safety, cost, and reliability concerns
• Communicate technical progress to policymakers and
   the public
• Document current and near-term opportunities to
   improve the environmental performance of mobile air
   conditioning system design, operation, and
   maintenance
The work under this  partnership focuses on improving
servicing practices and system energy efficiency and on
identifying alternatives for the refrigerant HFC-134a—
the refrigerant that became widely used in vehicle air
conditioning systems worldwide  beginning in 1994.
64
        13 Intergovernmental Panel on Climate Change Technology and Economic Assessment Panel (2005). Safeguarding the Ozone Layer and the Global Climate System: Issues Related to
          Hydrofluorocarbons and Perfluorocarbons. New York: Cambridge University Press, p. 300.
        14 Andersen, S., Hovland, V. and Rugh, J. (2004). Significant Fuel Savings and Emission Reductions by Improving Vehicle Air Conditioning: A Study by the U.S. Department of Energy's
          National Renewable Energy Laboratory. Presented at the 15th Annual Earth Technologies Forum and Mobile Air Conditioning Summit, April 15,2004: Washington D.C. The paper
          reported that 62 million metric tonnes of C02 were released into the atmosphere as a result of mobile air conditioning fuel use in the United States (not including defrost).
          Converting by a factor of 12/44 yields 16.9 million metric tons of carbon equivalent (MMTCE).
        15 Does not include CFC-12 emissions. Sources: U.S. EPA (2006). Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2004. Page 2-28. Washington, D.C.
          US EPA #430-R-06-002 and  Hoffpauir, Elvis (2005). Estimated refrigerant use. Society of Automotive Engineers Improved Mobile Air Conditioning Cooperative Research Project
          presentation. Pages 12-14.  Troy, Ml: June Meeting of the Improved Mobile Air Conditioning Cooperative Research Project stakeholders.

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                                                               HIGH  GLOBAL WARMING  POTENTIAL GAS PROGRAMS

2005 MOBILE AIR CONDITIONING CLIMATE PROTECTION PARTNERSHIP PSA RECOGNIZED PARTNER EFFORTS
           Thank  you
           for putting the environment in the driver^ seat!
           AC Delco
           ACC Climate Control
           AGRAMKOW
           Airsept
           Alliance of Automobile Manufacturers
           Arkema
           Association of International
            Automobile Manufacturers
           Audi
           Australian Department of Environment
            and Heritage
           Australian Federated Chamber of
            Automotive Industries
           Australian Federation of Automotive
            Parts Manufacturers
           Australian Fluorocarbon Council
           Australian Greenhouse Office
           Automotive Aftermarket Industry
            Association
           Behr
           Bergstrom
           BMW
           California Air Resources Board
           CalsonicKansei
           Centre Ricerche Fiat
           Clore Automotive
           DaimlerChrysler
           Delphi Corporation
           DENSO
           DuPont Fluoroproducts
           Eaton
           Ecole des Mines de Paris
           Edith Cowan University (Australia)
           Environment Canada
           European Commission
           Fiat Auto
           Four Seasons
           Friends of the Earth
           General Motors
           Goodyear
           Honda
           Honeywell
           Hutchinson FTS
Hyundai
Indian Institute of Technology Delhi
Indian Ministry of Environment and
 Forests
INEOS Fluor
Institute of Governance and
 Sustainable Development
International Organization of
 Standardization
Isuzu
Japan Automobile Manufacturers
 Association
Japan Fluorocarbon Manufacturers
 Association
Japan Industrial  Conference for
 Ozone Layer and Climate Protection
Japan Ministry of Economy Trade
 and Industry
Japan Ministry of Environment
Johnson Controls
Kia
Konvekta
Korea Advanced Institute of Science
 and Technology
Maflow
Mitsubishi Motors
Mobile Air Conditioning Partners
 Europe
Mobile Air Conditioning Society
 Worldwide
Modine
Natural Resources Defense Council
Neutronics
Nissan
Obrist
Parker-Hannifin
PPG Industries
PSA Peugeot/Citroen
Red Dot
Refrigerant Reclaim Australia
RTI Technologies
Sanden
Shecco
Sinochem USA
Skye International Holdings
Snap-On Diagnostics
Society of Automotive Engineers
Society of Indian Automobile
 Manufacturers
Solvay Fluorochemicals
SPX Robinair
Subaru
Subros
Sun Test
Suzuki
TATA Motors
TEXA, S.p.a.
Texas Instruments
The Energy and Resources Institute
 (India)
Tl Automotive
Toyota
Tracer Products
Transpro
TYC Genera
Underwriters Laboratories
United Nations Environment
 Programme DTIE
U.S. Army RDE Command
U.S. Department of Energy's National
 Renewable Energy Laboratory
U.S. Environmental Protection Agency
University of Braunschweig (Germany)
University of Illinois
University of Maryland
UView Ultraviolet Systems
Valeo
Vehicle Airconditioning Specialists of
 Australia
Visteon Corporation
Volkswagen
Volvo Car Corporation
World Resources Institute
ZEXEL-Valeo
           Congratulations to the Mobile Air Conditioning Climate Protection Partners for helping
           us all save money and drive a little cleaner. This global team of corporate, government,
           and environmental leaders is working together to rapidly improve the efficiency of your
           vehicle air conditioning systems by at least 30% and reduce refrigerant leakage by at least
           50%. Vehicle manufacturers and suppliers are improving existing air conditioning systems
           and technicians are offering environmentally superior service as the global search for better
           refrigerants continues. These voluntary actions will ultimately avoid millions of tons of
           greenhouse gas emissions each year.
           Visit our website at www.epa.gov/cppd/mac and help put the environment in the driver's seat.
                                                              ENERGY STAR® and Other Climate Protection Partnerships 2005 Annual Report 65

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HFC-134a has no ozone depleting potential and only
one-sixth the global warming potential of the former
mobile air conditioning refrigerant, CFC-12.
Nevertheless, HFC-134a is still a potent greenhouse gas:
one pound of HFC-134a released to the atmosphere has
the same potential global warming effect as 1,300
pounds of CO2.
This partnership is making great progress. On Earth
Day 2004, it announced the Improved Mobile Air
Conditioning (IMAC) 30/50  project with ambitious
goals to reduce air conditioning fuel consumption by at
least 30 percent and cut refrigerant emissions by 50
percent. In 2005, substantial progress was made toward
these goals.

In 2005, the Mobile Air Conditioning Climate
Protection Partnership:
• Helped finalize a standard (J-2727, SAE) to certify
   low-leakage mobile air conditioning systems.
• Identified technologies to reduce the vehicle air
   conditioning coefficient of performance by up to
   50 percent—20 percent more than the initial
   IMAC goal.
• Developed  a new technician certification program
   that will improve technicians' skills and refrigerant
   recovery rates.
• Helped update refrigerant recovery and recycling
   equipment standards (J-2788, SAE) to recover more
   refrigerant when vehicles are repaired or retired.
• Placed a public service announcement recognizing
   partners, which garnered 1.2 million impressions
   (see PSA p. 65).

What to Expect in 2006  and Beyond
for  the  High GWP Gas  Programs
The  High Global Warming Potential Gas partnership
programs for the industrial sector will continue to work
with their partners and implement strategies to keep
emissions below 1990 levels. EPA plans to:
• Continue to implement agreements with industry to
   reduce greenhouse gas intensity for the aluminum,
   magnesium, and semiconductor sectors through the
   Climate VISION effort.
I Hold the 2nd Magnesium Melt Protection Users
 Group Round Table at the 63rd Annual World
 Magnesium Conference in Beijing, China. This EPA-
 sponsored workshop seeks to provide an open forum
 for the global magnesium industry to share
 experiences in testing and implementing emerging
 alternative melt protection technologies to eliminate
 SF6 emissions by 2010.
I Conduct a follow-up study and publish a new
 technical brochure of alternative magnesium melt
 protection technologies. The results of the study are
 expected to help the partnership accelerate its phase-
 out of SF6 by 2010.
I Host the 4th International Conference on SF6 and
 the  Environment, which will bring together the
 electric power and magnesium industries to share
 information on SF6 emissions reduction and
 elimination strategies and technologies.
I Present findings from a new equipment leak study at
 the Annual General Meeting of the Institute of
 Electrical and Electronics Engineer's  (IEEE) Power
 Engineering Society.
I 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.
I Evaluate the performance of a new electrically heated
 thermal  PFC abatement device at a semiconductor
 partner's manufacturing facility.
I Maintain active partnerships with HCFC-22
 chemical manufacturers to continue  to reduce
 emissions of HFC-23-
I Pursue additional greenhouse gas savings by reducing
 refrigerant leakage and improving vehicle air
 conditioner efficiency. Two partners are already
 developing new, low-GWP refrigerants. Both
 companies—DuPont and Honeywell—are currently
 testing chemicals claimed to have global warming
 potentials of less than 150.

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                                                               CALCULATING VOLUNTARY PROGRAM  BENEFITS
CALCULATING VOLUNTARY PROGRAM BENEFITS
 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 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 2015 due to technology
 investments and product purchases made through the
 year 2005 by ENERGY STAR partners and due to the
 effects of markets already transformed. The persistence is
 calculated by maintaining the energy savings achieved in
 2005 through the year 2015-16 The underlying
 assumption is that the lifetime of most building and
 industrial facility improvements is at least 10 years. For
 residential and commercial products, expected lifetimes
 range between 4 and 20 years, and the expected lifetime
 for homes is over 30 years. Once consumers buy
 ENERGY STAR qualified products, they are likely to
 replace them with ENERGY STAR qualified products.
 Taking a conservative approach, only a portion of future
 replacement purchases and investments are counted
 towards the cumulative program benefits. The benefits
 that can  be attributed to pre-existing trends are subtracted
 out of the estimated ENERGY STAR benefits presented in
 this 2005 annual report.
 In addition, EPA estimates the PV of expenditures on
 energy-efficient technologies based on the partners' or
 customers' cost of the energy-efficient equipment.17 For
 ENERGY STAR qualified products, expenditures were
 taken as  the incremental costs compared to standard
 products, if any. For ENERGY STAR building and
 industrial improvements, expenditures include the capital
 costs of upgrading a building to ENERGY STAR
 specifications. Finally, the NPV of bill savings is the
 difference between the PV of energy bill savings and the
 PV of the investment. It represents the net value to
 partners  and ENERGY STAR product consumers
 participating in the program.
 The estimated cumulative benefits for the ENERGY
 STAR program from 1993 to 2015 are  as follows:
Qualified Products and Homes.
• Preventing 157 MMTCE in greenhouse gas emissions.
• Prompting investment of $8.7 billion in climate
  friendly technologies.
• Providing energy bill savings net of investment of
  $64.9 billion.

Building and  Industrial Improvements.
• Preventing 241 MMTCE in greenhouse gas emissions.
• Prompting investment of $26.8 billion in climate
  friendly technologies.
• Providing energy bill savings net of investment of
  $60.2 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 present value terms. These programs
are estimated to have the following benefits from 1993
through 2015:
• Preventing 209 MMTCE in greenhouse gas emissions.
• Prompting $2.8 billion in investment in climate
  friendly technologies.
• Providing energy bill savings net of investment of
  $4.9 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 2015- 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 2015:
• Preventing 192 MMTCE in greenhouse gas emissions.
16 The energy savings for the year 2005 are estimated from information provided by the Division for ENERGY STAR Homes, Buildings, and Industrial Improvements and from
  information provided by the Lawrence Berkeley National Laboratory for ENERGY STAR Qualified Products.
17 Calculated using a discount rate of 7% and 2005 perspective
                                                       ENERGY STAR® and Other Climate Protection Partnerships 2005 Annual Report 67

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COMPANIES AND  ORGANIZATIONS  MENTIONED IN THIS REPORT
3M  	5, 19, 39, 40
4C Foods  	47
10 West 66th Street Corporation	47
30 North LaSalle; Equity Office Properties  	47
AC Delco	65
ACC Climate Control 	65
ACE Hardware	21
ACME Markets, Inc	19
AGRAMKOW	65
Advanced Food Products  	57
Advanced Micro Devices,  Inc	5
Air Conditioning Contractors of America	24
Airsept  	65
Alliance of Automobile Manufacturers  	65
Alliance to Save Energy 	31,51
Alliant Energy Generation 	46
Alliant Energy/MidAmerican Energy Company  	19
Allied Waste	57
American Council for an Energy-Efficient Economy ... .51
American Electric Power  	5,51
American Institute of Architects	34, 36
American Lighting Association	21
Anderson Homes, Inc	19, 28
Arizona Public Service Company	63
Arkema	65
Arrow Linen Supply Company  	47
Aspen Homes of Colorado	19, 28
Aspen Skiing Company	45
Association of International
    Automobile Manufacturers	65
Association of Regulatory  Utility Commissioners  	51
Association of School Business Officials International . . .31
ASTORIA HOMES  	19, 28, 29
Atlantic Golf, a Division of the Brick Companies	45
Audi	65
Austin Energy	19, 51
Australian Department of Environment and Heritage . . .65
Australian Federated Chamber of Automotive Industries .65
Australian Federation of Automotive Parts Manufacturers 65
Australian Fluorocarbon Council	65
Australian Greenhouse Office	65
Automotive Aftermarket Industry Association	65
Avista Advantage	19
Ball Corporation	5
Baltimore Aircoil Company	5
Baltimore Gas and Electric	51
Bank of America Corporation  	5,13
Baxter International, Inc	5, 13, 63
Beaumont Refinery  Project;
    ExxonMobil Corporation	47
Behr  	65
Bergstrom	65
Biodiesel Industries, Inc	57
BMW	65
Bonneville Power Administration	51
Bosgraaf Homes	19, 28
Buehler Food Markets 	33
Building Owners and Managers Association . . . .30, 31, 36
Building Performance Institute	24
Bureau Veritas	19
Business Council of Fairfield County, Connecticut . .31, 36
California Air Resources Board  	65
California Portland Cement Company	19, 41
California Public Utilities Commission  	51
California State Department of General Services	36
Calpine	5, 13
CalsonicKansei	65
Cambridge Savings Bank	33
Caterpillar Inc	5, 13, 58
Cathedral Square Corporation	19
CenterPoint Energy	13
Centre Ricerche Fiat  	65
Chester County Solid Waste Authority  	57
Chevron Energy Solutions	46
Cinergy Corp	5
City of Denton, Texas 	57
City of Fresno General Services Department	45
City of LaGrange, Georgia	58
City of Palo Alto Utilities	46
City of Vallejo,  California	45
Clore Automotive	65
Colorado Springs School District 11	33
Columbia Gas Transmission Company	55
Columbia Gulf Transmission Company	55
Columbus Hospitality	33
Connecticut Consumer Counsel  	51
Connecticut Department of
    Environmental Protection	51
Connecticut Department of Public Utility Control	51
Connecticut Light and Power	36
CONSOL Energy  	54
Consortium for Energy Efficiency	21, 24, 36
Cornell University  	46
Council of Educational Facility
    Planners International	31
Council of the Great City Schools	31
County of Alameda 	45
Curtis Lumber Company, Inc	19
D.R. Horton, Inc	19, 28
Dagoba Organic Chocolate  	45
DaimlerChrysler	65
Dart Container Corporation 	57
David Powers Homes	19, 28, 29
Delphi Corporation	65
Delta-Montrose Electric Association  	19
DENSO Corporation 	63, 65
Devon Energy Corporation  	55
District of Columbia Public Service Commission	51
Douglas, Emmett & Company	33
DTE Energy-MichCon 	55
Duke Energy  	50, 51, 55
DuPont..                                       . .66

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                                             COMPANIES  AND ORGANIZATIONS MENTIONED IN THIS  REPORT
DuPont Fluoroproducts	65
Eastman Kodak Company	5
Eaton  	65
Ecole des Mines de Paris	65
Edith Cowan University	65
El Paso Pipeline Group	55
EMC Corporation	5
Enbridge Energy Partners L.P. 	55
Ence Homes 	19, 28, 29
Energy Sense	19
EnergyTrust of Oregon, Inc	19
Entergy Corporation  	22, 51
Environmental Defense  	51
Environment Canada	65
European Commission	65
European Union	6
Exelon Corporation	5, 13, 51
Fairfax County, Virginia	58
Federal Research Center—White Oak Central Utility
    Plant; General Services Administration	47
FedEx Express-Oakland Hub Facility	45
First Environment, Inc	5
Fiat Auto	65
Food Lion, LLC	19, 32, 33, 51
Food Marketing Institute	31
Ford Motor Company	19
Fort Collins Utilities	19
Four Seasons	65
FPL Group, Inc	5
Friends of the Earth	65
Frito-Lay  	5, 13, 19
Gap, Inc	5, 13
General Electric Company	5,13
General Electric Consumer and Industrial	19
General Motors Corporation	5, 13, 65
General Services Administration	36
Giant Eagle, Inc	19, 33
Good Earth Lighting	19, 21
Goodyear 	65
Gorell Enterprises, Inc	19
Governors' Ethanol Coalition	46
Granger Energy, LLC 	57
Granite Properties	33
Great River Energy	51, 62
Green Mountain Coffee Roasters	45
Green Mountain Energy Company	5,13
Greenpark Care Center;
    American DG New York, LLC	47
Green Power Communities 	44
Gresham-Barlow School District	19, 33, 37
Guaranteed Watt Saver Systems, Inc	19
Harvard University	45
Hasbro, Inc	5
Haven Properties, Inc	19, 28
Haworth, Inc	5
H. E. Butt Grocery Company	33
Hermany Farms Dairy;
    American DG New York, LLC	47
Hexion Specialty Chemicals,  Inc	47
Holcim (US) Inc	5
Holliswood Care; American DG New York, LLC	47
Honda  	65
Honeywell  	65, 66
HSBC North America	45
Hutchinson FTS	65
Hyatt Regency Dallas & Hyatt Regency DFW	45
Hyundai	65
IBM Corporation	5, 13, 63
Independent School District 197	33
Indian Institute of Technology Delhi	65
Indian Ministry of Environment and Forests	65
INEOS Fluor	65
Innovative Design, Inc	19, 34
Interface Flooring Systems	58
Interface, Inc	5
International Organization of Standardization	65
International Paper	5
Institute for Governance and
    Sustainable Development	65
Institute of Electrical and Electronics
    Engineers Power Engineering Society	66
Iowa Utilities Board	51
ISO New England Inc	51
Isuzu	65
Japan Automobile Manufacturers Association 	65
Japan Fluorocarbon Manufacturers Association	65
Japan Industrial Conference for Ozone Layer and
    Climate Protection  	65
Japan Ministry of Economy, Trade and Industry	65
Japan Ministry of Environment	65
Johnson & Johnson	5, 45, 46, 63
Johnson Controls	51, 65
Kentucky Office of Energy Policy  	19
Kerr-McGee Oil & Gas Corporation	55
Kia 	65
Konvekta  	65
Korea Advanced Institute of Science and Technology . . .65
La Jolla Medical Center;
    Department of Veterans Affairs	47
Lanchester Landfill	57
Leak Survey, Inc	55
Lee County Landfill	57
LG&E Energy 	62
Lithonia Lighting	19, 21
Lockheed Martin Corporation	5
Lowe's	19, 21, 24
Mack Trucks, Inc	5
Maflow	65
Manchester Tank; NiSource Energy Technologies	47
Marriott International, Inc  	5, 13, 19, 32, 37
Maryland Energy Administration	19
Maytag Corporation   	19
McCreary County Community Housing
    Development Corporation  	19
Melaver, Inc	5, 13
Merck & Co., Inc	19
MidAmerican Energy Company	51
Middlebury College	47
                                                         ENERGY STAR® and Other Climate Protection Partnerships 2005 Annual Report 69

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        Miller Brewing Company	5
        Minnesota Public Utilities Commission	51
        Mitsubishi Motors  	65
        Mobile Air Conditioning Partners Europe	65
        Mobile Air Conditioning Society
            Worldwide  	63, 64, 65
        Modine	65
        Mohawk Fine Papers, Inc	45
        Mohegan Sun	47
        National Association of Counties	31
        National Association of Regulatory
            Utility Commissioners  	50, 51
        National Automobile Dealers Association  	34
        National Grid	19, 36
        National Parent Teacher Association	31
        National Renewable Energy Laboratory	5, 13, 63
        Natural Resources Defense Council	51, 65
        Neutronics 	65
        Nevada ENERGY STAR Partners	19, 28, 29
        Nevada Power Company — Sierra Pacific
            Power Company  	19
        New Jersey Board of Public Utilities	51
        New Jerseys Clean Energy Program	19
        New Jersey Green Homes Office—NJ Department of
            Community Affairs	19
        New Jersey Natural Gas  	51
        New York Power Authority	51
        New York-Presbyterian Hospital  	19, 33, 37, 46
        New York State Energy Research
            and Development Authority	19, 24
        New York State Public Service Commission	51
        next>edge	19
        Nissan	65
        North Carolina Air Office  	51
        North Carolina Energy Office  	51
        Northeast ENERGY STAR Lighting
            and Appliance  Initiative	19
        North East Sustainable Energy Association  	31
        Northern Natural Gas 	55
        NSTAR	36
        Obrist	65
        Occidental Oil and Gas Corporation	55
        Office of the Ohio Consumers' Counsel  	51
        Oracle Corporation  	5
        OSRAM SYLVANIA	19
        Otter Tail Power	62
        Pacific Gas and Electric Company  	19, 51
        Pardee Homes	19, 28
        Parker-Hannifin	65
        PECO Energy Delivery  	62
        Pennsylvania Department of
            Environmental Protection	58
        Pennsylvania Energy Development Authority 	58
        Pfizer, Inc	5
        Piedmont Housing Alliance	19
        Pinellas Community Development Department 	19
        PJM Interconnection 	51
        PNM Resources  .                                 . .51
Portland Cement Association	38, 41
Power Integrations, Inc	19
PPG Industries	65
Precision Entry, Inc	19
PSA Peugeot/Citroen	65
PSEG  	5
Public Technology Institute 	31
Puget Sound Energy	19
Red Dot	65
Refrigerant Reclaim Australia	63, 65
Rego Park Nursing Home;
    AES-NJ Cogen Co. Inc	47
Residential Energy Services Network (RESNET)  	26
Roche Group U.S. Affiliates  	5
Rochester City School District	33
Rolls-Royce	57
RTI Technologies	65
Sacramento Municipal Utility District	51
Safeway Inc	45
Sanden  	65
San Diego City Schools	32, 33
Santee Cooper 	51, 57
Save More Resources, Inc	19, 37
SC Johnson  	5, 13
Sea Rise I; Bay Park I Associates	47
Sea Rise II; Bay Park II Associates  	47
Sears, Roebuck and Co	19
Seattle City Light	51
Segal & Morel 	19, 28
Semiconductor Industry Association 	62
Servidyne Systems, LLC 	19, 51
Shecco  	65
Sinochem USA	65
Skye International Holdings	65
Snap-On Diagnostics	65
Society of Automotive Engineers	64, 65
Society of Indian Automobile Manufacturers	65
Solvay Fluorochemicals	65
South Colonie Central School District	33
Southern California Edison 	19, 51
Southern California Gas Company 	19
Southern Company 	51
South Houston Green Power, Cinergy Solutions, Inc.,
    and BP Global Power  	2, 47
South Washington County School District 833	33
Southwest Gas Corporation	55
Southwest Home Energy Raters	19
South Windsor High School 	47
SPX-Robinair	65
Staples, Inc	5, 13
Starbucks Coffee	45
State of Maine 	51
St. Francis Hospital and Medical Center	47
St. Francis Winery & Vineyards	45
St. Lawrence Cement	5
STMicrosystems, Inc	5
Subaru  	65
Subros	65
70

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                                             COMPANIES AND ORGANIZATIONS  MENTIONED  IN THIS REPORT
Sun Microsystems, Inc	5,13
Sun Test  	65
Sustainable Buildings Industry Council	31
Suzuki	65
TATA Motors	65
Tennessee Valley Authority	51
TEXA, S.p.a	65
Texas Instruments	65
Texas State Energy Conservation Office	51
TexEnergy Solutions, Inc	19
The American Hotel & Lodging Association	31
The American Society for Healthcare Engineering
    of the American Hospital Association	31
The American Solar Energy Society—Legacy
    Schools Program	31
The Association of Energy Engineers	31
The California Energy Commission	34, 51, 63
The Collins Companies	5
The Conference Board	40
The Dow Chemical Company   	51
The Energy and Resources Institute	65
The Home Depot	19, 22, 24
The National Association of
    Elementary School Principals  	31
The National Association of
    Energy Service Companies	31, 36
The National Association of
    Secondary School Principals	31
The National Association of State Energy Officials	31
The National Energy Education
    Development Project  	31
The National Energy Foundation  	31
The National School Boards Association	31
The Real Estate Roundtable	31
The Saunders Hotel Group  	33
The Vanguard Group 	33
The World Bank Group	45
TI Automotive	65
Toyota	65
Toyota Motor Manufacturing
    North America, Inc	19, 39, 40
Tracer Products	65
Transpro	65
Transwestern Commercial Services	19
Tristate Generation and Transmission
    Association, Inc	51
TXU Electric Delivery ENERGY STAR
    Homes Program	19
TYC Genera	65
U.S. Air Force  	45, 63
U.S. Army RDE Command	65
U.S. Department of Agriculture	46, 52
U.S. Department of Energy	2, 4, 6, 14, 16, 21
     	22, 23, 24, 34, 36, 43, 50, 64
U.S. Department of Energy's National
    Renewable Energy Laboratory  	65
U.S. Department of Housing and
    Urban Development 	4, 24
U.S. Green Building Council	28, 34
U.S. Mine Safety & Health Administration	59
U.S. Office of Management and Budget 	10
U.S. Small Business Administration	34, 36
Underwriters Laboratories 	65
United Nations Environment Program DTIE	65
United States Telecom Association	31
United Technologies Corporation  	5
University of Braunschweig 	65
University of Cincinnati	47
University of Illinois	65
University of Maryland  	47, 65
University of Michigan	63
University of Minnesota, Morris 	45
University of Texas at Austin 	47
USAA Real Estate Company	19, 33, 51
Utilimaster; NiSource Energy Technologies	47
UView Ultraviolet Systems	65
Valeo	65
Vectren Corporation	51
Vehicle Airconditioning Specialists  of Australia	65
Vestil Manufacturing; NiSource
    Energy Technologies	47
Veridian Homes	19, 28
Vermont Energy Investment Corporation 	51
Victory Refrigeration  	19
Visteon Corporation	65
Volkswagen	65
Volvo Car Corporation	65
Volvo Trucks North America	5
Wabash Valley Power Association	58
Waldbaums Supermarket; A&P Tea Company  	47
Wal-Mart Stores, Inc	51
Washington Utilities and
    Transportation Commission	51
Waste Management 	58
Waverly Light and Power	51
Western Gas Resources	55
Western Washington University	45
Weyerhaeuser Albany Containerboard Mill	47
Weyerhaeuser Hawesville Complex  	47
Whirlpool Corporation	19
WhiteWave Foods Company	45
Whole Foods Market	45
Winton/Flair Custom  Homes  	19, 28
Wisconsin Focus on Energy	19
World Resources Institute	65
World Semiconductor Council  	62
Xcel Energy  	51
Xerox Corporation	5,13
Yokota Tohoku Company	63
York County School Division	33
ZEXEL-Valeo .                                   . .65
                                                         ENERGY STAR® and Other Climate Protection Partnerships 2005 Annual Report 71

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        FIGURES
        Figure 1.        More greenhouse gas emissions avoided each through partner actions	3
        Figure 2.        Since 2000, ENERGY STAR benefits have more than doubled	3
        Figure 3.        EPA climate partnership programs can nearly double emissions avoided by 2015	7
        Figure 4.        U.S. greenhouse gas emissions by sector and gas	9
        Figure 5.        Overview of the products contributing to 2 billion purchases of ENERGY STAR products since 1992	15
        Figure 6.        Reaching more consumers with the ENERGY STAR message through print media and the Web	15
        Figure 7.        States promote ENERGY STAR Change a Light, Change the World in 2005	23
        Figure 8.        Home Performance with ENERGY STAR spreads across the country	25
        Figure 9.        Quality installation delivers more cooling	25
        Figure 10.       A decade of growth for ENERGY STAR qualified new homes	27
        Figure 11.       ENERGY STAR qualified new homes gaining market share	27
        Figure 12.       States committed to the ENERGY STAR Challenge through 2005	31
        Figure 13.       Building benchmarking and ENERGY STAR labeling gain momentum 	33
        Figure 14.       Building benchmarking activity by state	35
        Figure 15.       Partner Green Power purchases and resulting GHG emissions avoided since 2001	45
        Figure 16.       Capacity of Combined Heat and Power projects by state as of 2005	47
        Figure 17.       Charter partners in the Clean Energy-Environment State Partnership	49
        Figure 18.       Partner actions are projected to maintain methane emissions below 1990 levels through 2012	53
        Figure 19.       Partner actions are projected to maintain emissions of high GWP gases below 1990 levels through 2012	61

        TABLES
        Table 1.         Benefits from partner actions in 2005 and cumulative benefits through 2015 from partner actions
                       through 2005 (in billions of 2005 dollars and MMTCE)	3
        Table 2.         Greenhouse gas reduction goals for EPA climate partnership  programs over next 10 years (MMTCE)	7
        Table 3.         Climate Vision goals for EPA's high GWP gas programs 	7
        Table 4.         Market barriers addressed by EPA's climate partnership programs	9
        Table 5.         Overview of EPA climate partnership programs reviewed in this Annual Report with greenhouse gas
                       reductions since 2000	11
        Table 6.         Climate Leaders key program indicators for 2004 and 2005	13
        Table 7.         Five Climate Leaders achieve their climate protection goals in 2005	13
        Table 8.         Thirteen more Climate Leaders set aggressive climate protection goals for a total of 38	13
        Table 9.         ENERGY STAR Program achievements exceed goals in 2005	15
        Table 10.        ENERGY STAR Program growth since 2000	17
        Table 11.        ENERGY STAR key program indicators, 2000 and 2005	17
        Table 12.        ENERGY STAR qualified products save energy	18
        Table 13.        ENERGY STAR residential product specifications added, revised, and in progress	21
        Table 14.        Key associations committed to the ENERGY STAR Challenge through 2005	31
        Table 15.        2005 ENERGY STAR Leaders	33
        Table 16.        ENERGY STAR commercial product specifications added, revised, and in progress	35
        Table 17.        Summary of EPA ENERGY STAR industrial focuses	39
        Table 18.        Greenhouse gas emissions avoided  by EPA's Clean Energy Supply Programs (MMTCE)	44
        Table 19.        EPA recognized 22 leading Green Power partners in 2005	45
        Table 20.        EPA recognized 28 leading Combined Heat and Power partners  in 2005	47
        Table 21.        Summary of clean energy policies described in EPA's Clean Energy-Environment Guide to Action	49
        Table 22.        National Action  Plan for Energy Efficiency Leadership Group	51
        Table 23.        Global warming potentials (GWPs) and atmospheric lifetimes  of greenhouse gases	53
        Table 24.        Methane Programs: EPA goals and achievements	53
        Table 25.        Global warming potentials (GWPs) and atmospheric lifetimes  of greenhouse gases	61
        Table 26.        High GWP Gas Programs: EPA goals and achievements	61
72

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REFERENCES
Climate Protection Partnerships Division, U.S. Environmental Protection Agency. 2006. Partner and emissions
data for 2005 provided by individual programs within the Climate Protection Partnerships, Office of
Atmospheric Programs.

Consortium for Energy Efficiency (GEE). 2006. National Awareness of ENERGY STAR for 2005: Analysis of
CEE Household Survey. Available online at www.ceel.org/eval/2005_ES_survey_rep.pdf.

Energy Information Administration (EIA). 2006. Annual Energy Review 2005- Office of Markets and End Use.
July. Available online at www.eia.doe.gov/aer/contents.html (DOE/EIA-0384(2005).

EIA. 2006. Annual Energy Outlook 2006 with Projections to 2030.  Office of Integrated Analysis and Forecasting.
February. Available online atwww.eia.doe.gov/oiaf/aeo/index.html (DOE/EIA-0383(2006)).

Horowitz, M.J. 2001. "Economic Indicators of Market Transformation: Energy Efficient Lighting  and EPA's
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 International, Inc. 2006. An  Estimate of Emissions Reductions Accomplished by ENERGY STAR  Industrial
Partners. Prepared for EPA's 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.

Kats, G., and J. Perlman. 2006. Summary of the Financial Benefits  of ENERGY STAR® Labeled Office Buildings.
February. (EPA 430-F-06-003).

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). 2006. Inventory of Greenhouse Gas Emissions and Sinks: 1990-
2004. Office of Atmospheric Programs. April. (EPA 430-R-06-002). Available online at
http://yosemite.epa.gov/oar/ globalwarming.nsf/content/
ResourceCenterPublicationsGHGEmissionsUSEmissionsInventory2006.html.

Webber, C.A.,  R.E. Brown, M. McWhinney, and J.G. Koomey. 2006. Status Report: Savings Estimates for the
ENERGY STAR Voluntary Labeling Program (DRAFT). Lawrence Berkeley National Laboratory. (LBNL-51319).
                                                                                             United States
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