ENERGY STAR
CHANGE FOR THE BETTER
ENERGY STAR® and Other Voluntary Programs
2002 Annual Report
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CHANGE FOR THE BETTER
ENERGY STAR® AND OTHER VOLUNTARY PROGRAMS
CLIMATE PROTECTION PARTNERSHIPS DIVISION (CPPD)
2002 ANNUAL REPORT
CONTENTS
Letter from the Assistant Administrator
Executive Summary
Environmental Benefits
Economic Benefits
Program Effectiveness
Key Accomplishments for 2002
Expectations for 2003 and Beyond
Introduction
ENERGY STAR Program
Energy Efficiency is a Smart Investment . . .
ENERGY STAR in the Residential Sector . . .
ENERGY STAR in the Commercial Sector . .
ENERGY STAR in the Industrial Sector
ENERGY STAR Award Winners
Climate Leaders Program
Clean Energy Programs
Green Power Partnership
Combined Heat and Power Partnership ....
Methane Programs
Landfill Methane Outreach
Natural Gas STAR
Coalbed Methane Outreach
Agriculture-Based Programs
High GWP Environmental Stewardship Programs
International Climate Protection Award Winners .
Benefits of Voluntary Programs
References
List of Figures and Tables
Companies and Organizations Mentioned in This Report
For additional information, please visit our Web sites at www.epa.gov/cppd
and www.energystar.gov or call the toll-free ENERGY STAR Hotline at
1-888-STAR-YES (1-888-782-7937).
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LETTER
FROM THE
ASSISTANT
ADMINISTRATOR
September 2003
Congratulations to all the partners of EPA's climate protection programs.
EPA's programs are playing an essential role in helping our Agency meet the greenhouse
gas goal that President Bush established in 2002—a significant reduction in the
greenhouse gas intensity of our economy. In 2002 alone, Americans—with the help of
ENERGY STAR®—saved $7 billion dollars on their energy bills, saved enough energy
to power 15 million homes, and reduced greenhouse gas emissions equivalent to taking
15 million cars off the road. These are real results.
Through voluntary programs such as the Landfill Methane Outreach Program and the
Coalbed Methane Outreach Program, we have had success in reducing the emissions of
methane to 5 percent below 1990 levels. This impressive reduction is expected to
remain through 2020, even as our economy continues to grow.
Through Climate Leaders, companies commit to working with EPA in order to develop
a comprehensive inventory of their greenhouse gas emissions and set aggressive long
term reduction goals. By the end of 2002, its first year, Climate Leaders welcomed
34 companies as partners.
I want to commend all of the voluntary program partners for your leadership and the
example you have set for other companies and organizations to follow. By working
together, we are proving that these partnerships are an effective way to reduce
greenhouse gas emissions.
Jeffrey R. Holmstead
Assistant Administrator
U.S.
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EXECUTIVE
SUMMARY
FIGURE ES-1.
Division carbon reductions compared to
program goals
I I
n i
iii
V
YEAR
'96 '97
Source: EPA GHG Inventory 2003
EXECUTIVE SUMMARY
2002 was a banner year for the businesses and organizations that have voluntarily partnered with
the Environmental Protection Agency's (EPA) climate protection programs to save energy and
reduce greenhouse gas emissions. In 2002, EPAs ENERGY STAR®, Clean Energy, Methane, and
Environmental Stewardship programs delivered significant environmental and economic results,
while exceeding their goals for reductions in greenhouse gas emissions (see Figure ES-1).1 In
addition, Climate Leaders—a new effort launched in February 2002—enables businesses to take
their climate commitments one step further. Seven partners announced aggressive long-term
greenhouse gas emissions reduction goals as part of their commitment to the Climate Leaders
Program in 2002. These programs are helping the country achieve the Bush Administrations goal
of reducing the greenhouse gas intensity of the American economy by 18 percent by 2012.
Some of the major environmental and economic achievements across EPAs climate protection partnerships,2
based on actions that partners have taken through the end of 2002, are summarized below.
Environmental Benefits
• The partnerships prevented more than 43 million metric tons of greenhouse gas emissions
(in MMTCE3) in 2002 alone—equivalent to the emissions from more than 28 million
automobiles (see Figure ES-1).
• More than 150,000 tons of nitrogen oxides (NOX) were prevented in 2002.4
• Between now and 2012, more than 40 MMTCE per year in greenhouse gas
emissions will be avoided due to actions already taken by partners in these
voluntary programs.
Economic Benefits
• Consumers and businesses have locked in investments in energy-efficient
technologies exceeding $12 billion (see Table ES-1).
• Consumers and businesses are saving more than $80 billion cumulatively
through 2012 net of their investments in energy-efficient technologies, having
saved more than $7 billion in 2002 alone (see Table ES-1).
Program Effectiveness
Every federal dollar spent on these partnership programs through 2002 means:
• Reductions in greenhouse gas emissions of 1.0 metric ton of carbon equivalent
(3.7 tons of CO2).
• Savings for partners and consumers of more than $75 on their energy bills.
• The creation of more than $ 15 in private sector investment.
• The addition of more than $60 into the economy.
'00 '01 '02
I TARGET •ACTUAL
Each ofEPA's climate protection partnerships is designed to achieve long-term greenhouse gas emissions reduction goals, which were set through an interagency process in 2001 and
communicated to the Secretariat of the Framework Convention on Climate Change in the U.S. Climate Action Report 2002.
CLIMATE PROTECTION PARTNERSHIPS DIVISION 2002 ANNUAL REPORT
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"By working together, we are proving that these partnerships are an effective way
to reduce greenhouse gas emissions."
-Jeffrey R. Holmstead, Assistant Administrator
U.S. Environmental Protection Agency
The environmental and economic benefits for the key EPA partnership program areas—ENERGY STAR, Methane Programs,
Clean Energy Programs, and the Environmental Stewardship Programs for the high GWP gases—are summarized in Table ES-1.
TABLE ES-1.
Summary of the benefits for 2002 and cumulative benefits through 2012 from the actions taken by partners through 2002
(in billions of 2002 dollars)
BENEFITS FOR 2002 CUMULATIVE BENEFITS 1993-2012
Program Net Savings
ENERGY STAR
Qualified Products $4.4
Building and Industrial $2.9
Improvements
Methane Programs $0.2
Environmental
TOTAL $7.6
NPV: Net Present Value
NPV of
NPV of Technology NPV of Net
MMTCE Bill Savings Expenditures Savings
11.9 $50.4 $1.6 $48.8
13.3 $40.4 $8.0 $32.5
11.1 $5.6 $2.7 $2.9
n ") N/A
7 A N/A
43.9 $96.4 $12.2 $84.2
MMTCE
144
178
163
2
117
604
NOTES: Technology Expenditures include O&M expenses for methane programs.
Bill Savings and Net Savings include revenue from sales of methane and electricity.
ENERGY STAR qualified homes are included in the Qualified Products totals.
Totals may not equal sum of components due to independent rounding.
For details on cumulative benefits, see pages 42-43.
: Not applicable
N/A: Not available
KEY ACCOMPLISHMENTS FOR 2002
ENERGY STAR
• With the help of ENERGY STAR, Americans saved a
significant amount of energy in 2002—more than
100 billion kilowatt-hours (kWh) and 15,000 megawatts
(MW) of peak power, the amount of energy required to
power about 15 million homes (see Figure ES-2). They also
prevented the greenhouse gas emissions equivalent to those
from more than 15 million automobiles.
• The ENERGY STAR label has become the national symbol
for energy efficiency, recognized by more than 40 percent of
the American public.
• More than 1,250 manufacturers use the ENERGY STAR—
meeting strict energy efficiency guidelines set by the federal
government—across a total of 18,000 individual product
models in more than 35 product categories. To date,
Americans have bought more than one billion ENERGY
STAR qualified products.
Program). 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 70 MMTCE in 2002.
Reductions in annual greenhouse gas emissions for EPA's climate programs, including non-C02 gases, are based on "carbon equivalents," which are determined by weighting the reductions
in emissions of a gas by its global warming potential for a 100-year time period.
Based on data from The Emissions & Generation Resource Integrated Database (eGR102002) Version 2.0, released April 2003.
EXECUTIVE SUMMARY
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FIGURE ES-2.
Annual savings in energy use as a result
of CPPD's partnership programs
1C
8
1
55
I
4
4
'95 '96 '97 '98 '99 '00 '01 '02
YEAR
Source: EPA Climate Protection Partnerships Division
• By year end 2002, more than 3,000 builders had constructed more than 110,000 ENERGY STAR
qualified homes, locking in financial savings for homeowners of more than $26 million annually.
• EPA's national energy performance rating system has been used to evaluate more than 15,000
buildings; 16 percent of office buildings, 13 percent of schools, 20 percent of supermarkets,
21 percent of hospitals, and 5 percent of hotels have been benchmarked. More than 1,100
buildings have earned the ENERGY STAR.
• Building on New York's success, regional partners in the states of Rhode Island and
Massachusetts and in the cities of San Jose, Fresno, and Kansas City have recently launched
Home Performance with ENERGY STAR. This is a whole-house retrofit program in which
certified contractors recommend—through diagnostic testing—the most cost-effective, energy-
efficient home improvements for homeowners.
Climate Leaders
• Since Climate Leaders was launched in early 2002, 34 companies have
joined. Seven have already announced aggressive greenhouse gas emissions
reduction goals.
Clean Energy
• The Green Power Partnership ended the year with more than 90 partners,
totaling more than 500,000 megawatt hours (MWh) of green power purchase
commitments—including 250,000 MWh from new renewable generation.
• The Combined Heat and Power (CHP) Partnership assisted in the
development of 7 projects completed in 2002, totaling about 560 MW
of new CHP capacity, with 10 additional planned projects totaling 230 MW.
Methane and High Global Warming Potential (GWP)
Environmental Stewardship
• Partnership programs achieved reduction of non-carbon dioxide (CO2)
gases—methane, perfiuorocarbons (PFCs), hydrofluorocarbons (HFCs), and
sulfur hexafiuoride (SF6)—totaling more than 18 MMTCE in 2002 alone.
Through the continuation of these efforts, U.S. methane emissions are
expected to be kept below 1990 levels through 2012 and beyond. In addition,
industry commitments, such as the recently announced magnesium
partnership commitment to eliminate SF6 emissions by 2010, are significantly
reducing emissions of the most potent and persistent gases.
CLIMATE PROTECTION PARTNERSHIPS DIVISION 2002 ANNUAL REPORT
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"Partnering with EPA in Climate Leaders is an important next step for FPL Group to take
along our journey to assess and reduce emissions at our power plants in Florida and
throughout the country."
—Lewis Hay HI, Chairman and CEO, FPL Group, Inc.
EXPECTATIONS FOR 2003 AND BEYOND
Voluntary partnership programs will continue to be a
powerful means for reducing emissions of greenhouse gases
and air pollutants across the country, while saving businesses,
organizations, and consumers money on their energy bills.
In the following areas, EPA plans to:
ENERGY STAR
• Review and update performance specifications for products
in cases where technology has advanced and updates are
necessary to maintain the integrity of the ENERGY STAR
label—including computer monitors and imaging equipment—
as well as add new products and services to the ENERGY
STAR family.
• Continue to build public awareness of ENERGY STAR.
Educate consumers and homeowners to be aware that
ENERGY STAR can reduce their home energy bills by
about 30 percent or more than $400 annually through a
variety of means.
FIGURE ES-3.
Annual reductions in greenhouse gas emissions can be more
than doubled by 2012
• Offer building energy performance benchmarking and
labeling for more building types, such as fast food
restaurants, residence halls, post offices, warehouses,
courthouses, and banks.
• Build additional partnerships with more businesses and
organizations, focusing particularly on small businesses,
state and local governments, and school systems.
• Expand the ENERGY STAR Industrial Sector Focuses
to corn refining, petroleum refining, and cement
manufacturing, while continuing EPAs efforts with the
automobile and brewery sectors.
Climate Leaders
• Recruit 30 additional businesses to become Climate Leaders
and announce 20 corporate greenhouse gas emissions
reduction goals.
Clean Energy
• Double the number of partners in the Green Power
Partnership and facilitate the development of 450 MW of
new CHP capacity.
•96 '98
YEARS 1995-2012
Source: EPA Climate Protection Partnerships Division
Non-C02 Programs
• More than double the cost-effective reductions of the
non-carbon dioxide greenhouse gases by 2012. This
will maintain methane emissions below 1990 levels
and PFC, HFC, and SF6 emissions below 1990 levels
in those sectors with which EPA partners.
As EPA implements these plans, it expects to almost
triple greenhouse gas emissions reductions resulting
from these voluntary programs to about 120 MMTCE
(see Figure ES-3). These programs represent 64 percent
of the estimated 185 MMTCE to be avoided by all EPA
climate change programs in 2012.
EXECUTIVE SUMMARY
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FIGURE 4.
U.S. greenhouse gas emissions by gas
1.6 % MFCs, PFCs and SF6
6.1%N2O
8.7% CH4
83.5% CO2
Note: Totals may not add to 100% due to
independent rounding.
Source: EPA GHG Inventory 2003
INTRODUCTION
The quality of our environment is everyone's responsibility. Each of us has the opportunity and
the power to change for the better. Whether purchasing an ENERGY STAR product or switching
to renewable energy, businesses, organizations, and consumers can play an important role in
reducing greenhouse gas emissions and protecting our global environment now and for future
generations.
Greenhouse gases are accumulating in the Earth's atmosphere as a result of human
activities and trapping heat in the atmosphere that would otherwise escape. Carbon
dioxide (CO2) released during fossil fuel combustion—the major source of energy in
our homes, in commercial buildings, in industry, and for transportation—is the
largest component of greenhouse gas emissions in the United States. Other activities,
such as industrial processes, cause emissions of additional greenhouse gases—for
example, methane (CH4), nitrous oxide (N2O), and perfluorocarbons (PFCs)
(see Figure 4).
While emitted in smaller quantities, these gases are important to address due to their
greater impact per molecule in trapping heat in the Earth's atmosphere and, in the
case of PFCs and sulfur hexafluoride (SF6), their long atmospheric lifetimes (see
Table 2). When viewed in terms of economic sectors, emissions from industry
account for 30% of U.S. greenhouse gas emissions, followed by transportation (27%),
service industry (buildings) (18%), residential (16%), and agriculture (8%)
(see Figure 5).
For more than a decade, American businesses and organizations have partnered with
EPA's climate protection programs to increase investments in technologies and
practices that save energy and reduce greenhouse gas emissions. EPA's public-private
partnerships focus on the following opportunities to take action:
Corporate Commitments. Many companies are voluntarily evaluating their impact
on the environment and taking actions to change for the better. Businesses that participate in
Climate Leaders, a new effort formally launched in early 2002, are working with EPA to
inventory their greenhouse gas emissions, set an aggressive long-term reduction goal, and report
their annual progress toward this goal.
Energy Efficiency. Energy efficiency means obtaining the same services or output (such as
heating or cooling) for less energy input. Energy efficiency offers significant cost savings across
the residential, commercial, and industrial sectors through an array of technologies and practices
available right now that can reduce the energy bill for many homes and businesses by 20 to
30 percent. The ENERGY STAR program works in partnership with businesses, large and small,
and other organizations, such as schools and city governments, to capture these savings.
CLIMATE PROTECTION PARTNERSHIPS DIVISION 2002 ANNUAL REPORT
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"Our partnership in ENERGY STAR reflects a fundamental commitment by Kodak to continuous
improvement of all aspects of our energy performance.... We will continue working to strengthen
our commitment because it's good for our business, in addition to being the right thing to do for
the environment."
—Charles S. Brown, Senior Vice President and Director, Global Manufacturing' & Logistics
J o o
Eastman Kodak Company, ENERGY STAR Award Winner
Clean Energy. In addition to using energy more efficiently,
there are ways to make the energy we use cleaner—effectively
breaking the link between increased energy use and harmful
air emissions. Combined heat and power as well as renewable
sources of energy can play larger roles in the U.S. energy mix.
EPA is collaborating with its partners to expand the use of
these technologies.
Methane Programs. Although it is a potent greenhouse gas,
methane is also the major component of natural gas—a much
sought-after clean fuel. When methane emissions are reduced
in a cost-effective manner, the recovered methane represents
valuable fuel that can be used or sold. The natural gas, coal,
and landfill gas development industries are working with EPA
through partnership and outreach programs to capture and use
methane wherever cost effective.
High GWP Environmental Stewardship. Hydrofluorocarbons
(HFCs), perfluorocarbons (PFCs), and sulfur hexafluoride
(SF6) are potent greenhouse gases, and some persist in the
environment for thousands of years. Given these long
atmospheric lifetimes, various U.S. industries are working
aggressively with EPA to avoid significant accumulation of
these chemicals in the atmosphere. These voluntary programs
accelerate the development and implementation of low-
emitting technologies and help companies use alternative
chemicals where technically feasible and cost effective.
This annual report presents the environmental and economic
benefits from EPAs climate protection partnerships through
the end of 2002. The next section includes descriptions
of each program, covering the rationale for each, the
accomplishments of 2002, and goals for the future. The final
section summarizes the successes of the CPPD programs
during their first decade. It quantifies the greenhouse gas
emissions that the programs have avoided and the energy and
monetary savings that have accrued to partners and consumers.
TABLE 2.
Global warming potentials (GWPs) and atmospheric
lifetimes of greenhouse gases
Greenhouse
Gas
Carbon Dioxide
Methane
Nitrous Oxide
Hydrofluorocarbons
Perfluorocarbons
Sulfur Hexafluoride
Source: IPCC1996
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
FIGURE 5.
U.S. greenhouse gas emissions by sector
C02
MFCs, PFCs, SF6
SERVICE INDUSTRY
BUILDINGS
(ALL GASES)
18%
RESIDENTIAL
(ALL GASES)
16%
METHANE/NITROUS
OXIDE
AGRICULTURE
(ALL GASES)
8%
TRANSPORTATION
(ALL GASES)
27%
Note: Totals may not add to 100% due to independent rounding.
Source: EPA GHG Inventory 2003
INTRODUCTION TO VOLUNTARY PROGRAMS
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"To achieve this goal, our nation must move forward on many fronts, looking at every sector of
our economy. We will challenge American businesses to further reduce emissions.... We will
build on these successes with new agreements and greater reductions."
—President George W. Bush, February 14, 2002
In February 2002, President Bush announced an aggressive strategy to reduce greenhouse gas intensity
by 18 percent by 2012.5 By significantly slowing the growth in greenhouse gas emissions, this policy will
put America on a path toward stabilizing concentrations of greenhouse gases for the long term, while
sustaining the economic growth needed to finance investments in a new, cleaner energy structure.
The Bush Administration is strengthening and expanding EPA's voluntary programs as a key strategy for
achieving the intensity reduction goal. Many industries have already responded to the new challenge
to reduce their greenhouse gas emissions voluntarily wherever possible.
EPA's voluntary climate protection programs will contribute a reduction of 45 million metric tons of carbon
equivalent (MMTCE) annually to the President's 18 percent intensity reduction goal by 2012, in addition to
contributing 75 MMTCE to the Administration's baseline projection. In total, EPA's programs will contribute
120 MMTCE by 2012, as illustrated in Figure 6. These avoided emissions are in addition to the 65 MMTCE
avoided annually as of 2002 (not shown in Figure 6).
FIGURE 6.
Projected reductions in GHG emissions due to Administration Climate Policy
2,400
2300
S 2.200
CJ
o
\
2,000
-120 MMTCE
18.0%
Intensity
Improvement
Goal
1,900
1,800
'02 '03 '04 '05 '06 '07
YEAR
'09 '10 '11 '12
• Without EPA Programs, post 2002
• Administration's Baseline
Source: EPA Climate Protection Partnerships Division
i With EPA Programs
i 18% Intensity Improvement Goal
This annual report provides a
summary, update, and outlook
for many of the EPA programs
that are expected to deliver
these results. The other EPA
programs that contribute to
these results primarily address
transportation issues, such as
Smart Way, and can be found
at www.epa.gov/air/transport.
^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.
CLIMATE PROTECTION PARTNERSHIPS DIVISION 2002 ANNUAL REPORT
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ENERGY EFFICIENCY IS A SMART
INVESTMENT
Energy efficiency is well recognized for providing many
benefits. These include:
Cost Savings. American families and businesses spend
$700 billion each year on energy bills—about the same as is
spent on education. Energy efficiency offers great potential
for reducing these energy costs. Many homeowners and
businesses could use 20 to 30 percent less energy, without
sacrificing features or comfort, through attractive investments
in products and services.
Greenhouse gas reductions. More than 50 percent of the
projected national energy use and CO2 emissions 10 years
from now will come from the use of equipment purchased
between now and then (see Figure 7). Promoting more
efficient options could reduce greenhouse gas emissions
substantially as equipment is naturally retired or replaced.
Energy reliability. By reducing demand, energy efficiency
is a low-cost (2—3 cents/kWh) contributor to system
adequacy—the ability of the electric system to supply the
aggregate energy demand at all times—because it reduces the
base load as well as the peak power demand. This reduction in
peak power demand can also contribute to system security—
the ability of the system to withstand sudden disturbances—
by reducing the load and stress at various points in the power
distribution system, thereby decreasing the likelihood of
failures.
Energy security. Between 1973 and 2000, U.S. dependence
on foreign oil rose from about 35 percent to more than
52 percent of U.S. consumption. During the same period, the
import share of natural gas rose from less than 5 percent to
more than 15 percent and continues to rise. Energy efficiency
and the use of renewable energy are environmentally sound ways
to reduce foreign oil and gas imports and to moderate the
effects of energy price spikes.
FIGURE?.
More than 50% of projected energy use 10 years
from now will come from equipment purchased
between now and then
2,500
2,000
E 1,500
z 1,000
500
COMMERCIAL/
RESIDENTAL
TRANSPORTATION
INDUSTRY
I NEW STOCK PURCHASES
I EXISTING EQUIPMENT STOCK
Source: EPA Climate Protection Partnerships Division
The potential of energy efficiency is not being fully realized
nationwide for a variety of reasons. With relatively low energy
prices in the United States, many organizations have focused
much less on energy efficiency improvements and much more
on improvements in labor or capital productivity. While many
businesses and homeowners express interest in making energy
efficiency investments for their own buildings and homes,
they do not know which products or services to ask for, who
supplies them in their areas, and whether the real energy
savings will live up to the claims.
ENERGY STAR PROGRAM
-------
ENERGY STAR
PROGRAM
ENERGY STAR
The lack of answers to important questions about energy efficiency shows a large information gap.
The ENERGY STAR program seeks to fill this gap and enable businesses, organizations, and
consumers to realize the cost savings and environmental benefits of energy efficiency investments
through a straightforward, market-based approach:
• Use the ENERGY STAR label to clearly identify which products, practices, new homes, and
buildings are energy efficient—offering lower energy bills and environmental benefits.
• Empower decision makers by making them aware of the benefits of products, homes, and
buildings that qualify for ENERGY STAR and by providing energy performance assessment
tools and project guidelines for efficiency improvements.
• Work with retail and service companies in the delivery chain so they can easily offer energy-
efficient products and services.
• Partner with regional, state, and local organizations running energy efficiency programs so these
programs leverage the national energy efficiency specifications and public awareness of
ENERGY STAR and thus achieve more with their resources.
Introduced by EPA in 1992 for energy-efficient computers, the ENERGY STAR
label has been expanded to more than 35 product categories. Since the mid-1990s,
EPA has collaborated with the U.S. Department of Energy (DOE), which now has
responsibility for certain product categories. Efficient new homes became eligible
for the label in 1995. Efficient buildings became eligible for the label in 1999 when
EPA unveiled a new standardized approach for measuring the efficiency (or energy
performance) of an entire building.
The economic and environmental benefits of ENERGY STAR through the year
2002 are already substantial. More than one billion ENERGY STAR qualified
products have been purchased and billions of square feet of building space
improved. The results across the ENERGY STAR program in terms of energy saved
and greenhouse gas emissions avoided in 2002 are provided in Table 3. Additional
program achievements within the residential, commercial, and industrial sectors are
presented in the sections beginning on page 12.
The ENERGY STAR label is being adopted in countries around the world.
International agreements allowing the implementation of energy efficiency programs modeled
after ENERGY STAR are currently in place with Canada, the European Community, Japan,
Taiwan, Australia, and New Zealand.
More than one billion ENERGY STAR qualified products have been purchased to date.
1 0
CLIMATE PROTECTION PARTNERSHIPS DIVISION 2002 ANNUAL REPORT
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"By working with the ENERGY STAR program, we have been able to educate Kentuckians about
affordable and energy-efficient options that save money while protecting the environment."
—John Davies, Director
Kentucky Division of Energy, ENERGY STAR Award Winner
TABLE 3.
ENERGY STAR Program: annual goals and achievements
Energy
(Billion
Goal
PROGRAM TOTAL for ENERGY STAR 85.0
Commercial/Residential Buildings Total —
Qualified Products Subtotal
Computers
Other Products
Building Improvements Subtotal
4
Industrial Improvements Total
2002
Saved
kWh)
Achieved
104.6
104.6
57.32
5.5
20.7
7.8
1.5
7.2
4.8
4.6
5.2
47.3
Emissions
Prevented
(MMTCE)
Goal Achieved
20.3 25.2
17.0 21.5
9.5 11.9
1.1
4 ")
1 ft
n ^
1 R
i n
n 4
1.3
7.5 9.6
3.3 3.7
2003
Energy Emissions
Saved Prevented
(Billion kWh) (MMTCE)
Goal Goal
95.0 22.5
19.2
10.6
8.5
3.3
J Results for qualified products from Webber et al., 2003.
* The kWh savings imply peak demand savings of more than 16 gigawatts (GW), based on conservation load factors developed byLBNL (Koomey et al., 1990).
3 Results for building improvements from Horowitz, 2001.
4 Results for industrial improvements from Dutrow, 2003.
Totals may not equal sum of components due to independent rounding.
: Not applicable
EASTMAN KODAK COMPANY
Rochester, New York
Eastman Kodak Company, a leader in the creation and use of images in the photography, health, and
commercial markets, is also a leader in practicing and promoting energy efficiency. Its corporate commitment to
continually improve energy performance spans both operations and product lines. Eastman Kodak's world class
energy team has top-level company commitment as demonstrated through its robust energy policy and
aggressive energy and carbon dioxide reduction goals, which are tracked monthly. The energy team, working
together with the basic manufacturing operations, implements a strategic energy management plan that has already saved
more than $8.5 million in operating costs and enough energy to operate all of its plants worldwide for a full month, reducing
carbon dioxide emissions equivalent to planting more than 200,000 acres of trees. Eastman Kodak also produces and sells
more than 20 ENERGY STAR qualifying product lines including copiers, printers, and scanners. (For a complete list of
ENERGY STAR Award Winners for 2002, see page 21.)
ENERGY STAR PROGRAM
1 1
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ENERGY STAR IN THE RESIDENTIAL SECTOR
ENERGY STAR continues to grow as a powerful platform for delivering energy efficiency to
homeowners across the country. Major highlights of 2002 include:
Building and expanding partnerships with manufacturers to add new products that can
earn the ENERGY STAR label. EPA is committed to updating performance specifications for
products in cases where technology has advanced and updates are necessary to maintain the
integrity of ENERGY STAR. In 2002, EPA updated the specifications for televisions/VCRs,
residential air-conditioning/heat pumps, and residential light fixtures. By the end of 2002,
more than 1,250 manufacturers were ENERGY STAR partners, using the label on more than
18,000 product models.
Building consumer awareness of the ENERGY STAR label as the national, government-
backed Symbol for energy efficiency. Recent surveys, including a 2002 household survey
n sponsored by the Consortium for Energy Efficiency, show that more than
40 percent of consumers nationwide recognize the ENERGY STAR. In
addition, a majority of consumers report that the label influenced their
purchasing decisions, and more than 70 percent would recommend ENERGY
STAR to a friend. In early 2002, EPA launched a new national campaign to
help increase this awareness, which through the year proved very successful.
The campaign garnered over $10 million in equivalent ad value and more than
30,000 airings in its first 12 months. Ads for television, radio, and print consistently
outperformed the government benchmark. The campaign encourages Americans to
help protect the environment by changing today to energy-efficient products and
practices. The message is an easy one: Look to ENERGY STAR to make a
change. By using ENERGY STAR to increase energy efficiency at home and at
work, each of us can make a difference now and for the future.
Expanding the use of the ENERGY STAR label on efficient new homes.
Homes that earn the ENERGY STAR label provide comfort, value, and
savings to homeowners and increased profits for homebuilders, while
protecting the environment. In 1995, the ENERGY STAR label became
available for new homes that are 30 percent more energy efficient (for heating,
cooling, and hot water heating) than homes built to the national model energy
CANON U.S.A., INC.
Lake Success, New York
Canon holds the record for producing the most (cumulative) ENERGY STAR qualified imaging products—279.
On top of that. Canon created and placed a $2 million advertising campaign featuring the benefits of its ENERGY
STAR qualifying products in six major newspapers and journals for 15 weeks generating 11 million impressions.
Canon continues to heavily market its "Copier of the Future Series," which surpasses the energy efficiency
performance level for ENERGY STAR. Canon also produces extensive internal and external communications
materials and training programs. Canon's Mobile Marketing Vehicle, a 53-foot tractor trailer that travels the country
showcasing its ENERGY STAR qualifying line, as well as other Canon products, is just one example. (For a complete list of
ENERGY STAR Award Winners for 2002, see page 21.)
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CLIMATE PROTECTION PARTNERSHIPS DIVISION 2002 ANNUAL REPORT
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ENERGY STAR TOPS 100,000 NEW HOMES IN 2002
On May 6, 2003, former EPA Administrator Christine Todd Whitman announced to the National Association of Home Builders
at its annual executive meeting in Washington, DC, that more than 100,000 new homes had earned the ENERGY STAR label
for superior energy performance. When EPA began working with homebuilders 7 years ago, only 55 homes in the United
States were ENERGY STAR qualified. Now more than 3,000 builders in all 50 states build ENERGY STAR qualified homes. In
the past few years, the growth of ENERGY STAR homes has been exponential, with the number of qualifying homes doubling
every year since 2000. ENERGY STAR continues to prove that incorporating energy efficiency into home building is good for
business and the environment.
Each ENERGY STAR qualified home keeps 4,500 pounds of greenhouse gases out of our air every year and saves
homeowners about $200-$400 annually on their utility bills. By conserving more than 180 million kW of electricity, these
homes also save Americans more than $26 million in energy costs per year.
code. Since then, more than 3,000 builders have joined
ENERGY STAR—including one-third of the top builders in
the country. The number of ENERGY STAR qualified new
homes increased from 57,000 homes at the end of 2001
to more than 110,000 qualified homes by the end of 2002
(see sidebar above). The recent rapid growth in the number
of qualified new homes is due in part to the adoption of
ENERGY STAR by utilities in Texas and California—states
with a large number of housing starts. ENERGY STAR has
achieved market penetration of up to 20 percent in key areas
such as Phoenix and Las Vegas, and cities in Texas and California
are likely to follow suit. New Jersey, New England, and the
Midwest also have large concentrations of ENERGY STAR
qualified homes. In addition, the Army Corps of Engineers
now builds all new Army homes as ENERGY STAR.
Developing home improvement opportunities beyond
labeled products. In 2002, EPA continued its work in
residential efficiency improvements, promoting a program for
whole-house improvement called Home Performance with
ENERGY STAR. This approach was launched in 2001
through the New York State Energy and Research
Development Authority (NYSERDA) and the Wisconsin
Energy Conservation Corporation (WECC). It uses
performance-based building science techniques to maximize
quality, consistency, and effectiveness of energy efficiency
improvements in existing homes. In 2002, four utilities in the
Northeast and two non-governmental organizations also
adopted Home Performance with ENERGY STAR and began
implementing their programs. In addition, Home Performance
with ENERGY STAR will get a boost from the $500,000
made available to five additional metropolitan areas from DOE.
CLAYTON HOMES, INC.
Maryville, Tennessee
Clayton Homes is the nation's first manufactured housing builder to certify all 20 of its plants to be capable of
producing ENERGY STAR qualified homes. By so doing, Clayton Homes can now manufacture more than 20,000
ENERGY STAR ready homes per year, available across 33 states. Clayton Homes has also developed innovative
point-of-sale educational materials, signage, and technology displays to communicate the value of ENERGY STAR
to consumers. (For a complete list of ENERGY STAR Award Winners for 2002, seepage 21.)
ENERGY STAR PROGRAM
1 3
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In 2002, EPA also supported the growing number of professionals trained to understand how
parts of the home work together to maintain comfort while reducing energy use and energy bills.
Through ENERGY STAR Home Sealing, contractors and homeowners are learning about the
need to seal air openings to the outside while properly insulating walls and attics. When
combined with ENERGY STAR qualified windows, this sealed "home envelope" keeps
conditioned air within the living space. Key parts of the heating and cooling system must be
tuned to the manufacturer's specified operating conditions to ensure peak
equipment efficiency. EPAs seasonal ENERGY STAR Cool Change Campaign
promotes this "systems" approach for heating and cooling systems. Large retailers
such as Lowes and Sears are helping EPA get this ENERGY STAR message out to
homeowners. In 2002, Steve Thomas, long-time host of "This Old House,"
appeared as an ENERGY STAR spokesman at major consumer trade shows to
promote EPAs home improvement program. Also, EPA actively supports the North
American Technician Excellence (NATE) organization, which tests HVAC
contractors on proper installation, maintenance, and service of heating and cooling
equipment.
Highlighting and promoting ENERGY STAR labeled products in retail stores and
through key state-level energy efficiency programs. In 2002, EPA worked with
more than 160 utilities and state or regional energy efficiency programs, which
serve nearly 60 percent of the households in the United States, to promote energy
efficiency through ENERGY STAR. More than 50 of them encouraged the
construction of ENERGY STAR qualified homes as part of their residential
programs. EPA also partners with more than 400 retailers in promoting ENERGY
STAR qualified products in more than 20,000 storefronts across the country.
LENNOX INDUSTRIES INC.
Richardson, Texas
A leading manufacturer of commercial and residential heating and cooling systems, Lennox has made a corporate
commitment to deliver high-quality, energy-efficient heating and cooling to customers throughout the United
States. By consistently incorporating the ENERGY STAR logo into its advertising, as well as using ENERGY STAR
messages, Lennox has helped make consumers aware of the environmental and economic benefits of high-
efficiency heating and cooling systems. Lennox also contributed to the success of the 2002 ENERGY STAR Cool
Change campaign with its enthusiastic participation. Through its actions and leadership in promoting highly efficient heating
and cooling systems, Lennox has proven itself an industry champion. (For a complete list of ENERGY STAR Award Winners
for 2002, see page 21.)
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CLIMATE PROTECTION PARTNERSHIPS DIVISION 2002 ANNUAL REPORT
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"Lowe's customers are asking for products that give them value. ENERGY STAR qualified products
save consumers money, offer the same or better features as standard models, and are good for
the environment. To our customers, that is value."
—Dale Pond, Senior Executive Vice President of Merchandising/Marketing
Lowe's Companies Inc., ENERGY STAR Award Winner
In 2003, EPA will:
• Update performance specifications for computer monitors,
imaging equipment, ventilation fans, and ceiling fans.
EPA will also add new products and services to the
ENERGY STAR family.
• Continue to build consumer awareness of the ENERGY
STAR label, particularly through product-focused national
campaigns for lighting products, home electronics, and
heating and cooling equipment, with the goal of raising
awareness of the label to more than 60 percent over the next
several years.
• Work with home builders and champions to build, test, and
label 75,000 new homes as ENERGY STAR, by expanding
the outreach partnership to 12 metropolitan areas and
building upon EPAs manufactured housing alliance.
• Support Home Performance with ENERGY STAR in
Austin, TX; Kansas City, MO; San Jose and Fresno, CA;
and New England, as well as the DOE grantees located in
Atlanta, GA; Birmingham, AL; Atlantic City, NJ; St. Louis,
MO; and Boise, ID.
• Expand home improvement programs to promote in-home
services such as ENERGY STAR Home Sealing, duct
sealing, and proper installation and maintenance of heating
and cooling equipment. One key component will involve
increasing the number of trained contractors to perform
these services. ENERGY STAR will continue to work
closely with the Building Performance Institute and
NATE to expand the number of qualified technicians
who understand energy efficiency and the advantages of
ENERGY STAR.
• Work with retail partners, utilities, and states in broad
consumer promotions of ENERGY STAR qualified
products and new homes.
LOWE'S HOME IMPROVEMENT WAREHOUSE
Wilkesboro, North Carolina
This year, the 7 million customers a week that shop at Lowe's 800 home improvement stores in 43 states are more
likely than ever to save money and help protect the environment by taking home an ENERGY STAR qualifying
product. Lowe's continues to teach consumers about ENERGY STAR through in-store promotions, the Lowe's
ENERGY STAR Solutions Guide, informed sales staff, and specialized educational clinics about ENERGY STAR. In
2002, ENERGY STAR qualified products offered by Lowe's increased 30 percent over the prior year, resulting in a
39-percent increase in sales of qualifying products. Sales staff are better prepared to close the sale for energy efficiency—
100 percent of employees have been educated about ENERGY STAR. The company has integrated ENERGY STAR education
into every sales associate training venue, including collateral, intranet, broadcast (Business Television), and corporate wide
communiques (Lowe Down). Customer interest in ENERGY STAR is generated by a dedicated ENERGY STAR on-line shopping
center; incorporating messages on the economic and environmental benefits of ENERGY STAR qualifying products in all
consumer advertising (including weekly TV ads airing on HGTV, generating 143 million impressions for ENERGY STAR in
2002); and specialized public relations activities, such as the laundry room make over, featuring an ENERGY STAR qualifying
clothes washer on Ron Haze/ton's HouseCalls (ABC).
What does Lowe's plan to do to top all that? Lowe's has announced a corporate commitment to increase sales of ENERGY
STAR qualifying products by another 20 percent in 2003, is pursuing benchmarking and improving the efficiency of its own
facilities with ENERGY STAR tools, and has become the first home improvement retailer to join EPA's Green Power Partnership.
(For a complete list of ENERGY STAR Award Winners for 2002, see page 21.)
ENERGY STAR PROGRAM
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ENERGY STAR IN THE COMMERCIAL SECTOR
In 2002, EPA continued to promote a strategy for superior energy management to businesses and
other organizations that starts with the top leadership, engages the appropriate employees
throughout the organization, uses standardized measurement tools, and helps an organization
prioritize and get the most from its efficiency investments. Major highlights of 2002 include:
Encouraging Top-Level Commitment to Energy Efficiency. Top-level organizational
commitment has proved to be the catalyst for energy efficiency investments in many of the most
successful ENERGY STAR partner organizations. Without this commitment, resources are often
not allocated to energy projects, and efficiency programs are not sustained.
• Nearly 12,000 organizations have partnered with EPA in the pursuit of superior energy
management.
• ENERGY STAR partners represent more than 12 billion square feet and approximately
17 percent of the commercial building market.
Success with Superior Energy Management. EPA continued to offer its proven energy
management strategy to ENERGY STAR partners. Based on building science, this strategy helps
organizations achieve twice the savings for a given level of investment as traditional methods. It
includes a 5-stage approach to building upgrades, which encompasses recommendations for
building tune-up, product procurement, and capital-intensive projects.
• EPA estimates that to date more than 47.5 billion kWh have been saved through these efforts.
• More than 2,260 additional small businesses looked to ENERGY STAR to help them find
opportunities to save energy and reduce the cost of operating their businesses.
• Restaurant and hotel companies worked with EPA to develop procurement policies to expand
the purchase of ENERGY STAR qualified products.
POUDRE SCHOOL DISTRICT
Fort Collins, Colorado
Since the Poudre School District Board of Education adopted an Energy Conservation Policy in 1996, the school
district has developed short- and long-term strategies to increase energy awareness and efficiency in facility
management and curriculum development. The District tracks all of its utility expenditures and notes changes on
a monthly basis. In 2002, 10 additional schools surpassed ENERGY STAR performance levels, doubling the total
number of ENERGY STAR qualifying schools, which now comprise more than 40 percent of the District's school
portfolio. To demonstrate its commitment to continuous improvement, Poudre has documented an average increase across its
47 benchmarked schools from a score of 61 to 66 in the past year, equivalent to a 7-percent energy reduction district wide.
Facility representatives present the ENERGY STAR label directly to the custodial staff and Principal, and often the Principal
holds an assembly to announce the school's achievement. As an incentive to school staff to do their part to reduce energy by
10 percent, the District provides energy rebates that channel savings back to the school for education. (For a complete list of
ENERGY STAR Award Winners for 2002, see page 21.)
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"We are proud to make the environment and energy management an organizational priority, and
the ENERGY STAR program is good for our bottom line and good for the environment."
—John Lembo, Director of Energy
Starwood Hotels North America Division, ENERGY STAR Award Winner
• More than 55 organizations participated in the Million
Monitor Drive to enable the power management features
on more than one million computer monitors, saving
2 million kWh and $14 million annually.
Building the Financial Case. To help top-level managers see
the link between effective energy management and their core
objectives, EPA:
• Collaborated with Innovest, a financial analysis firm, whose
studies of companies in the retail, food, merchandising, and
real-estate sectors determined that firms with effective
corporate energy management plans in place outperformed
their competitors by 20 to 30 percent on Wall Street,
adding to a growing body of evidence that superior energy
management is good business.
• Released a Cash Flow Opportunity calculator that
estimates how much new energy-efficient equipment can
be purchased from the anticipated energy savings, and
compares the cost and benefits of financing the project
now versus waiting for a lower interest rate or until cash is
available in a future budget. This tool has been particularly
useful to governments and schools for evaluating alternative
financing.
• Updated a Financial Value calculator to estimate the impact
of energy savings, real or estimated, on a company's net
income and earnings per share.
Promoting Market Adoption of New Standardized
Measurement Tools. EPA's national energy performance
rating system for buildings, launched in 1999, measures how
well the systems of a building are integrated and how well the
building is operated and maintained. By comparing the
energy use of an individual building against the national stock
of similar buildings using an objective 1 to 100 point rating
system, it fills an important measurement gap. No consistent
or comparable metric existed prior to EPA's system. It has
also helped demonstrate that building energy use can vary
by 400 percent between the top performing and worst
performing buildings.
• Through 2002, more than 3,500 active accounts were set
up in Portfolio Manager, the online software tool that
allows building managers to generate their building's energy
performance score.
• More than 15,000 buildings, representing 2.5 billion
square feet (or 14 percent of the total eligible market)
have had their performance rated. This total includes
16 percent of office buildings, 13 percent of schools,
20 percent of supermarkets, 21 percent of hospitals,
and 5 percent of hotels.
• In 2002, the energy performance rating became available for
hotels. Adding that to office buildings, schools, hospitals,
and supermarkets, EPA now provides the commercial
market with the capability to rate buildings representing
more than 40 percent of the sector's carbon emissions.
• A study conducted by the New Buildings Institute in
2002 reported favorably on ENERGY STAR's energy
performance rating system, confirming that it accurately
accounts for changes in energy use related to the installation
of energy efficiency measures.
• Major partner organizations, such as Arden Realty, Inc.,
Food Lion, Hines, Starwood Hotels, and USAA Real Estate
Company, have adopted the national rating system as part
of their energy management efforts to help them direct their
project investments and monitor progress.
ENERGY STAR PROGRAM
1 7
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ENERGY STAR
PROGRAM
• Two of the nation's largest institutional investors, the pension fund TIAA-CREF and the real
estate asset manager Lend Lease, announced that they are requiring managers of the buildings
in their portfolios to rate the energy performance of these buildings and work to improve their
performance.
Providing Recognition for the Top Performing Buildings. Based on results from the national
energy performance rating system, EPA offers the prestigious ENERGY STAR label as a way to
distinguish buildings that are top energy performers—those that score in the top 25 percent while
meeting industry standards for indoor air quality. As a group, the ENERGY STAR qualifying
buildings use 40 percent less energy than the average building in the United States while
providing quality space.
• In 2002, four hotels earned the ENERGY STAR.
• Through 2002, more than 1,100 buildings earned the ENERGY STAR.
Expanding Partnerships with Interested Organizations. In 2002, EPA continued to collaborate
with a number of interested organizations to provide clear, accurate information to energy end-
users about opportunities for improved energy performance. These organizations include energy
service providers, utilities, state energy groups, and public benefits funds administrators. EPA
provides them with training and outreach materials to use in their own energy efficiency
programs.
• More than 500 companies that sell energy-efficient building products or provide services
are bringing energy efficiency to their customers through ENERGY STAR. In 2002, these
companies helped their customers rate more than 1,000 buildings, qualifying 175 of them as
ENERGY STAR.
USAA REAL ESTATE COMPANY
San Antonio, Texas
USAA Real Estate Company is the investor, owner, and manager of real estate for its parent organization, USAA,
a worldwide insurance and diversified financial services association. USAA Real Estate Company enhances the
value of its investment portfolio through hands-on, intensive, creative, and service-oriented property management.
USAA joined ENERGY STAR in 2001, benchmarked 100 percent of its eligible portfolio by early 2002, and qualified
almost half of those properties for the ENERGY STAR label. In practicing its organization-wide commitment to
improved energy performance, USAA worked with ENERGY STAR to create an in-house training program for building
managers, customized an energy strategy to guide their efforts, and introduced ENERGY STAR benchmarking requirements
to their national operating engineering service providers. The strategy included cost and use monitoring, energy efficiency
retrofits, physical audits of properties, and a national approach to energy procurement. USAA also introduced an aggressive
campaign to communicate the value and benefit for tenants due to the company's energy efficiency efforts. USAA improved
the energy performance of its portfolio by 5 percent in the past year and is successfully translating energy performance
improvements directly to the bottom line. One example is a property in California that sold for an additional $1.5 million.
USAA attributes the increased sale price to energy saving retrofits and procured power that translate into reduced operating
costs and higher net operating income. (For a complete list of ENERGY STAR Award Winners for 2002, see page 21.)
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CLIMATE PROTECTION PARTNERSHIPS DIVISION 2002 ANNUAL REPORT
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"The ENERGY STAR program challenges property managers to operate our buildings more
efficiently, while maintaining the highest standard of quality and service to our tenants."
—Jeffrey C. Hines, President
Nines, ENERGY STAR Award Winner
• Some 20 utilities, states, and regional energy efficiency
program managers integrated ENERGY STAR into their
activities to reduce energy use in the commercial sector.
For instance, Michigan, Minnesota, and Illinois provided
benchmarking assistance and promotions to schools
and businesses.
• Over 75 architects and engineers were trained to use
Target Finder, an EPA Web-based tool that estimates
how well a new design will perform compared to similar
buildings already in operation. Target Finder helps close
the gap between the design intent and the actual energy
performance of a building.
• The first working prototype for hosting EPA's energy
performance rating system was demonstrated on energy
information services' Web sites, with the goal of making it
easier for companies to benchmark their customers' facilities
using their own energy tracking software.
In 2003, EPA will:
• Add three commercial kitchen products and vending
machines to the list of products that are eligible for the
ENERGY STAR.
• Expand the energy performance rating system to include
additional commercial building types, such as retail building
spaces, residence halls, post offices, warehouses, courthouses,
and banks. At that point, the rating system will apply to
more than 50 percent of the building space across the country.
• Continue to work with building owners and managers to
improve the energy performance of their portfolios through
systematic, cost-effective upgrades. While EPA will partner
with any interested organization, special focus will be placed
on the sectors for which EPA has developed new standardized
measurement tools—commercial real estate, public buildings,
schools (K-12), higher education, healthcare, and
hospitality.
• Continue to offer the ENERGY STAR label for top
performing buildings and work with organizations to help
them highlight the design, operations, and maintenance
features that make the buildings qualify.
• Increase recognition opportunities for ENERGY STAR
partners by honoring organizations that baseline their
organization-wide energy use and achieve 10 percent,
20 percent, and 30 percent reductions.
• Expand the participation of energy efficiency program
sponsors and service and product providers to bring
EPA's energy management strategy and energy performance
rating system to more of the commercial market. It is these
organizations that have frequent and direct contact with
the end-users.
• Collaborate with leaders in the Green Buildings Industry to
ensure that similar approaches are used to recognize top
energy performing buildings in the ENERGY STAR
program as are used for green building certification.
ENERGY STAR PROGRAM
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ENERGY STAR
PROGRAM
ENERGY PERFORMANCE INDICATOR (EPI)
The Energy Performance Indicator (EPI) enables companies to compare the relative energy
performance of their manufacturing plant(s) against the performance of facilities in the same
sector using an objective 1 to 100 point rating system. Using the EPI, an energy manager can
compare plants that may have different processes, operating characteristics, or products and
assess how the energy performance of those plants relates to that of the industry. Through
statistical analysis of plant-level data, the EPI benchmarks energy use per unit of product (e.g.,
Btu per vehicle manufactured) and adjusts for the factors that influence energy use in plants.
For many companies, the EPI provides the first opportunity to externally benchmark and
compare energy performance in the industry.
ENERGY STAR IN THE INDUSTRIAL SECTOR
Through ENERGY STAR, EPA is helping manufacturers identify the best in energy performance for
their organizations, assisting them to develop a strategic approach to energy management built on the
principles of organizational commitment and continuous improvement. A strong corporate energy
management program with sustained improvement and decisionmaking leads to a better environment
and the financial health of its partners. Integral to this support, ENERGY STAR convenes Industry
Focuses. An Industry Focus is a targeted effort to improve energy efficiency within a specific
manufacturing sector. Industry Focuses create momentum for continuous improvement in energy
performance, provide the industry's energy managers the tools they need to achieve greater success in
their energy management programs, and create a supportive environment where energy efficiency ideas
and opportunities are shared. In 2002, EPA initiated several Industry Focuses, including the development
of Energy Performance Indicators (EPI) for these industries, enhanced networking opportunities for
partners from all sectors, and supported the industries in their efforts to strategically manage energy.
In 2002, EPA:
• Strengthened partnerships with U.S. manufacturers, including those from the automobile,
pharmaceutical, petroleum, and aerospace industries.
• Collaborated with the automobile industry to create an EPI—a tool that allows companies
to measure and assess the energy performance of vehicle assembly plants. It provides managers
a way to benchmark against their peers, track improvement over time, and prioritize efforts
and resources.
• Created opportunities for partners to share effective energy management strategies and to
improve energy efficiency by conducting two in-person networking meetings hosted by EPA
and partners and by virtual networking through Web conferences.
• Initiated Industry Focuses with the wet corn milling and cement manufacturing sectors and
began developing EPI tools in these industries.
• Convened energy management meetings with the automobile and brewing sectors. Participating
companies represented more than 90 percent of the production capacity in each of these sectors.
• Worked with technology, industry experts, and partners to develop energy management guides
specific to the automobile assembly and brewing sectors. The guides identify opportunities for
increased energy efficiency.
In 2003, EPA will:
• Initiate new Industry Focuses with the petroleum refining and pharmaceutical industries.
• Conduct the second annual ENERGY STAR Automobile Industry Focus meeting in Detroit, Michigan.
• Formalize Guidelines for Energy Management and work with partners to build world-class,
strategic, corporate energy programs, helping them achieve superior energy performance.
• Develop new EPI tools for the brewing, corn refining, and cement industries.
• Increase partner networking opportunities and participation by raising the frequency of Web
conferencing events and expanding discussion topics.
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CLIMATE PROTECTION PARTNERSHIPS DIVISION 2002 ANNUAL REPORT
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ENERGY STAR
ENERGY STAR AWARD WINNERS FOR 2002
CORPORATE COMMITMENT
Eastman Kodak Company
Rochester, NY
PARTNER OF THE YEAR
RETAILER
Lowe's Home Improvement
Warehouse
Wilkesbom, NC
PARTNER OF THE YEAR
PRODUCT MANUFACTURERS
Canon U.S.A., Inc.
Lake Success, NY
JELD-WEN inc.
Klamath Falls, OR
Lennox Industries Inc.
Richardson, TX
Maytag Corporation
Newton, IA
Panasonic
Secaucus, NJ
SYLVAN IA
Danvers, MA
ENERGY STAR NATIONAL
PRODUCTS PROMOTION
AWARD
Midwest Energy Efficiency
Alliance
Chicago, IL
Westinghouse Lighting
Corporation
Philadelphia, PA
Wisconsin Energy
Conservation Corporation
Madison, Wl
PARTNER OF THE YEAR
NEW HOMES
Astoria Homes
Las Vegas, NV
California ENERGY STAR New
Homes Program:
Pacific Gas and Electric Co.
San Fransico, CA
San Diego Gas and Electric
San Diego, CA
Southern California Edison
Rosemead, CA
Southern California Gas Co.
Los Angeles, CA
CenterPoint Energy
Houston, TX
Clayton Homes, Inc.
Maryville, TN
Energy Sense
Houston, TX
Guaranteed Watt Saver
Systems - West, Inc.
Oklahoma City, OK
Oncor Electric Delivery Company
Dallas, TX
Pardee Homes
Los Angeles, CA
AFFORDABLE HOUSING
AWARD
U.S. Department of Housing
and Urban Development
Washington, DC
EXCELLENCE IN HOME
IMPROVEMENT
New York State Energy Research
and Development Authority
Albany, NY
EXCELLENCE IN BUSINESS
AND INSTITUTIONAL
OUTREACH
American Society for Healthcare
Engineering of the American
Hospital Association
Chicago, IL
LEADERSHIP IN ENERGY
MANAGEMENT
Dutchess Community College
Poughkeepsie, NY
Food Lion, LLC
Salisbury, NC
Hines
Houston, TX
Poudre School District
Fort Collins, CO
Raytheon Company
Lexington, MA
Starwood Hotels & Resorts
Worldwide, Inc.
White Plains, NY
USAA Real Estate Company
San Antonio, TX
EXCELLENCE IN
ENERGY SERVICES
Servidyne Systems, LLC
Atlanta, GA
LEADERSHIP IN
ENERGY EFFICIENCY
Kentucky Division of Energy
Frankfort, KY
Sponsoring Organizations
of NEEP
Lexington, MA
Northwest Energy Efficiency
Alliance
Portland, OR
Southern Minnesota
Municipal Power Agency
Rochester, MN
State of California: Flex
Your Power and the
California lOUs:
Pacific Gas and Electric Co.
San Fransico, CA
San Diego Gas and Electric
San Diego, CA
Southern California Edison
Rosemead, CA
Southern California Gas Co.
Los Angeles, CA
Wisconsin ENERGY STAR
Homes/Focus on Energy
Madison, Wl
SPECIAL RECOGNITION:
EXCELLENCE IN
ENVIRONMENTAL EDUCATION
CNN
Atlanta, GA
Fox News Channel
New York, NY
Home & Garden Television
(HGTV)
Knoxville, TN
KLAS-TV
Las Vegas, NV
Today's THV
Little Rock, AR
WCFN UPN 49
Champaign, IL
WITN-TV
Washington, NC
SPECIAL RECOGNITION:
ENERGY STAR NEW HOMES
OUTREACH
Las Vegas Breakfast Club
Las Vegas, NV
SPECIAL RECOGNITION:
ENERGY STAR MILLION
MONITOR DRIVE
America Online, Inc.
Dulles, VA
Cisco Systems
San Jose, CA
Citigroup
New York, NY
Computer Associates
Islandia, NY
Computer Sciences
Corporation
El Segundo, CA
Harvard University FAS CERP
Cambridge, MA
John F. Kennedy School of
Government
Cambridge, MA
County of Loudoun
Leesburg, VA
Pitney Bowes Inc.
Stamford, CT
Watt Watchers of Texas
El Paso, TX
ENERGY STAR PROGRAM
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CLIMATE LEADERS
Leading companies across industrial sectors are working with EPA's Climate Leaders Program to
develop long-term climate change strategies. Climate Leaders partners set a corporate-wide
greenhouse gas reduction goal and conduct regular inventories of their emissions to measure
progress. This type of greenhouse gas management strategy positions Climate Leaders Partners as
corporate environmental leaders and helps them mitigate possible carbon risk as the climate
change debate unfolds.
In 2002, its first year, Climate Leaders welcomed 34 companies as partners. By year end, seven
companies announced corporate-wide greenhouse gas reduction goals. In 2003, Climate Leaders
plans to recruit 30 additional businesses and announce 20 corporate greenhouse gas emissions
reduction goals.
GREENHOUSE GAS REDUCTION GOALS
• General Motors pledged to reduce total greenhouse gas emissions by 10% for all of its
North American facilities from 2000 to 2005.
• Holcim (US) Inc. pledged to reduce greenhouse gas emissions by 12% per ton of cement
from 2000 to 2008.
• IBM pledged to achieve (a) average annual CO2 emissions reductions equivalent to
4 percent of the emissions associated with the company's worldwide energy use and
(b) an absolute 10-percent reduction in perfluorocompound emissions from IBM's
semiconductor manufacturing processes from 2000 to 2005.
• Miller Brewing Company pledged to reduce greenhouse gas emissions by 18% per barrel of
production from 2001 to 2006.
• The National Renewable Energy Laboratory pledged to reduce greenhouse gas emissions
by 10% per square foot from 2000 to 2005.
• Norm Thompson Outfitters pledged to reduce greenhouse gas emissions by 90% from
2000 to 2005.
• SC Johnson & Son, Inc., pledged to reduce greenhouse gas emissions by 23% per pound of
product from 2000 to 2005.
"We believe that climate change Is one of the most serious challenges facing the world today, one
that requires immediate action by all parts of society. Our efforts to address this issue have typically
led to improved efficiencies and other business benefits. We are honored to join the U.S. EPA
Climate Leaders Program to continue our search for solutions. Working together, I believe we can
show that climate change is not only a serious problem, but a real business opportunity."
—William R. Blackburn, Vice President and Chief Counsel of Corporate Environment
Health and Safety, Baxter International, Inc.
22
CLIMATE PROTECTION PARTNERSHIPS DIVISION 2002 ANNUAL REPORT
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CLEAN ENERGY
PROGRAMS
GREEN POWER PARTNERSHIP
A growing number of major companies, universities,
government agencies, and others are realizing that they have a
choice in the power they consume, and that they can choose
cleaner, environmentally beneficial renewable energy.
To take advantage of the pollution prevention opportunity
created by the steadily increasing availability of green power,
EPA developed the Green Power Partnership, which is
working to standardize green power procurement as part of
best practice environmental management. Partners commit to
procuring green power for a certain percentage of their
electricity needs. In return, EPA provides technical assistance
and public recognition for environmental leadership.
In 2002, the Green Power Partnership:
• Recruited an additional 70 partners for a total of
93 organizations that have made a combined commitment
to purchase more than 580 million kWh of green power
annually, including 250,000 MWh from new renewable
generation.
• Created a Partner Toolkit of technical resources, including
a comprehensive "Guide to Buying and Benefiting from
Green Power."
• Released E-GRID 2001, an update of the existing
E-GRID database of air emissions for the U.S. electricity
generation industry.
• Provided national recognition to leading green power
purchasers through local press events and the national
Green Power Leadership Awards.
In 2003, EPA will:
• Recruit 100 additional partners to make commitments to
purchase green power.
• Create new resources for partner recognition and technical
assistance, including a Web-based tool that allows electricity
users to understand the air emissions impacts associated
with conventional electricity generation.
• Provide public recognition to partners through regional
events as well as the national Green Power Leadership Awards.
In October 2002, the Green Power
Partnership, in collaboration with DOE
and the Center for Resource Solutions,
presented the Second Annual Green
Power Leadership Awards to:
Advanced Micro Devices
County of Alameda, CA
Johnson & Johnson
Pennsylvania State University
State of New Jersey
University of Pennsylvania
PARTNER OF THE YEAR
City of Chicago, IL
Kinko's, Inc.
"Renewable energy is a vital component in keeping a city healthy and competitive. The City of
Chicago's commitment to the Green Power Partnership is part of our goal to make Chicago the
greenest, most livable city in America."
—Richard M. Daley, Mayor, City of Chicago
23
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"RealEnergy and its customers are committed to doing the right thing
when it comes to energy and the environment. Shining a positive light
on our customers with public recognition through programs like EPA's
ENERGY STAR CHP Award provides an added incentive to do more of
the right thing!"
—Steven A. Greenberg, Chief Operating Officer, RealEnergy, Inc.
COMBINED HEAT AND POWER PARTNERSHIP
EPA's Combined Heat and Power (CHP) Partnership works with industry, state and local
governments, universities, and other institutional users to facilitate the development of clean,
efficient CHP projects. In 2002, EPA provided direct assistance to several new CHP projects in
the form of permitting assistance, networking, and public recognition. EPA also helped to
generate interest in CHP at the state level by co-hosting workshops and outreach events.
In 2002, the CHP Partnership:
• Grew to 74 partners and facilitated 17 new CHP projects that are currently operational or
under development, totaling almost 790 MW of new CHP capacity.
• Co-sponsored six CHP workshops in four states.
• Provided public recognition at four projects.
• Launched the CHP Partnership Web site as a one-stop shop for information about CHP
project development and the environmental benefits of CHP.
• Worked with regional CHP initiatives to promote CHP in many regions of the country.
In 2003, EPA will:
• Release a Best Practices Guide to output-based air emissions regulations and educate air
regulators on innovative ways to recognize the efficiency of CHP.
• Co-sponsor four events in four states.
• Initiate a targeted project development campaign in key industrial sectors, universities, and
cities that will result in up to six new CHP projects.
• Add 30 new partners to meet a milestone of 100 and assist CHP partners with up to 15 new
projects, facilitating the development of 450 MW of new CHP capacity.
• Present ENERGY STAR CHP awards to two or more projects.
2002 ENERGY STAR COMBINED HEAT AND POWER AWARD WINNER
The University of Michigan
The University of Michigan's Central Power Plant was originally constructed in 1914. In the early 1990s, the university added
two gas turbines to generate more electricity to better meet campus demand. The expanded CHP facility uses 18 percent less
fuel than comparable onsite thermal generation and purchased electricity. This project annually reduces carbon dioxide
emissions by 85,000 tons, saves enough natural gas to heat 17,000 homes, and reduces nitrogen oxide emissions by 120 tons.
24
CLIMATE PROTECTION PARTNERSHIPS DIVISION 2002 ANNUAL REPORT
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"The objective of the district and its board has been to provide
additional renewable energy to our customers in a way that is
increasingly efficient and economical. The landfill gas facility has
been very productive in a very short time in accomplishing that."
—Fred Petersen, President, Omaha Public Power District
METHANE
PROGRAMS
METHANE PROGRAMS
Methane's contribution to total U.S. greenhouse gas emissions
is second only to that of carbon dioxide. Each ton of methane
emitted is, however, 21 times more effective at trapping heat
in the atmosphere than one ton of CO2. At the same time,
methane is also a valuable source of energy, being the
major component of natural gas.
U.S. industries along with state and local governments
collaborate with EPA in several voluntary partnerships to
encourage the profitable collection and use of methane
that would otherwise be released to the atmosphere.
These methane partnerships include the Landfill
Methane Outreach Program, Natural Gas STAR
Program, and Coalbed Methane Outreach Program. All
follow a common approach, which is to provide sound
technical, economic, and regulatory information on
emissions reduction technologies and practices, as well as
tools to facilitate implementation of methane reduction
opportunities. Partners profit from their involvement in
these programs by making their operations more efficient
and their businesses more competitive. EPA also provides
information and tools to the agricultural community to
encourage methane reductions.
These voluntary partnerships, in conjunction with a regulatory
program to limit air emissions from the nations largest landfills,
reduced national methane emissions to well below 1990 levels
in 2002, and they are projected to maintain emissions below
1990 levels through 2012 (see Figure 8).
FIGURES.
Partner actions are projected to maintain methane emissions
below 1990 levels through 2012
80
EMISSIONS WITHOUT PARTNER ACTIONS
60
50
EMISSIONS WITH PARTNER ACTIONS
. 0
1C
'10 '12
YEARS 1990-2012
Source: EPA Climate Protection Partnerships D:
METHANE PROGRAMS
25
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\
LANDFILL METHANE
OUTREACH PROGRAM
LANDFILL METHANE OUTREACH PROGRAM
Landfills are the largest source of U.S. human-related (anthropogenic) methane emissions.
Capture and use of landfill gas not only reduces methane emissions directly, but also reduces CO2
emissions indirectly by displacing the use of fossil fuels. The Landfill Methane Outreach Program
(LMOP) encourages landfills across the nation to capture and use their landfill gas emissions as an
energy source. Working with landfill owners, state energy and environmental agencies, energy
suppliers, industry, communities, and other stakeholders, LMOP lowers the barriers to landfill
gas-to-energy project development.
Since the program's launch in December 1994, LMOP has reduced methane emissions from
landfills by approximately 14 MMTCE. In addition, the number of landfill gas-to-energy projects
has grown to nearly 340. In 2002 alone, the program reduced emissions by 3.9 MMTCE.
LMOP focuses its outreach efforts on the smaller landfills not regulated by EPA's New Source
Performance Standards and Emission Guidelines. The programs varied tools help landfill owners
and operators overcome barriers to project development. These tools include feasibility analyses,
software for evaluating project economics, profiles of hundreds of candidate landfills across the
country, a project development handbook, and energy end-user analyses.
In 2002, LMOP:
• Assisted in the development of 23 new landfill gas-to-energy projects, with more than 35
additional projects under construction and expected online soon.
• Welcomed 59 new partners, increasing participation by 16 percent and bringing the total
number of LMOP partners to 330.
• Awarded two competitive grants designed to spur innovative project development to
Raleigh County, West Virginia, and the Northeast Center for Social Issue Studies in
Brattleboro, Vermont.
In 2003, EPA will:
• Collaborate with DOE's Federal Energy Management Program, the World Resources Institute's
Green Power Market Development Group, and EPA's Climate Leaders Program to engage
federal and corporate energy end-users on landfill gas-to-energy project opportunities.
• Release two new landfill gas-to-energy project development tools, I^FGcost and the End-User
Search Tool, designed to provide project developers and other parties with comprehensive
financial and end-user data.
• Host the 7th Annual LMOP Conference and Project Expo and six state workshops to present
the benefits of landfill gas energy, discuss project development activity and opportunities, and
address issues affecting landfill gas projects.
• Assist in the development of 25 new landfill gas-to-energy projects.
26
CLIMATE PROTECTION PARTNERSHIPS DIVISION 2002 ANNUAL REPORT
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"The efforts ofEnergyXchange have done much for the landfill gas
energy field: proven that landfill gas energy projects at small landfills
can be beneficial, shown the power of partnerships, drawn
nationwide attention to landfill gas energy, spawned development in
neighboring areas, and become a model for other projects."
—Stan Steury, Project Coordinator, Blue Ridge RCdrD
PROJECT OF THE YEAR (TIE):
CITY OF ARLINGTON, TEXAS
LANDFILL GAS ENERGY PROJECT
Arlington, Texas
This project is a unique alliance among two cities, a
public utility, a non-profit environmental foundation, and
a private renewable energy company. The Arlington
landfill, owned and operated by the City of Arlington,
Texas, installed a gas collection system in 1997. Renovar
Energy Corp. (Renovar), which operates the landfill's gas
collection system, determined that the best landfill gas
(LFG) use option would be to construct a 4-mile pipeline
to transport the gas to a wastewater treatment plant
owned by the City of Fort Worth. The plant generates
significant amounts of methane gas on its own from
anaerobic sludge digestion, using it to create electricity
and heat the digesters. Renovar initiated discussions with
Fort Worth to increase electricity generation at the plant
by utilizing LFG as a supplemental fuel for two new
5 MW gas turbines. The only feasible pipeline route,
however, was through Arlington's River Legacy Park.
Renovar worked cooperatively with the local parks
departments and conservation organizations to develop
a solution for siting the pipeline to avoid a park
recreational trail and a number of older trees identified as
in need of special protection. This project shows that
dedication and cooperative decisionmaking can
overcome obstacles to landfill gas-to-energy development.
PROJECT OF THE YEAR (TIE):
ENERGYXCHANGE RENEWABLE ENERGY
PROJECT
Burnsville, North Carolina
The EnergyXchange project was initiated when the Blue
Ridge Resource Conservation and Development Council
performed a study to determine the feasibility of using
the LFG from the Yancey-Mitchell Landfill. Blue Ridge
formed a task force that identified two community needs:
(1) developing new cash crops for local farmers to
replace tobacco; and (2) forming a business incubator for
"limited resource" potters and glass blowers being
trained in nearby arts and crafts schools. The solution
was to form the EnergyXchange Renewable Energy
Center, a "campus" of high energy demand facilities
adjacent to the landfill that would use the LFG as an
energy source. Today, the Renewable Energy Center
supports a craft complex of four buildings, including a
glass studio, pottery studio, gallery and business/visitor
center; several greenhouses growing native plant
species; and a fish farming operation. The success of
EnergyXchange has been the catalyst for other LFG
project development activities in the area. A similar
project in Avery County, North Carolina, will use LFG to
fuel a large greenhouse, a Regional Forestry &
Horticultural Center, and a micro-turbine demonstration
project, as well as heating a hangar at a nearby airport.
ENERGY PARTNER OF THE YEAR:
OMAHA PUBLIC POWER DISTRICT
Omaha, Nebraska
Headquartered in Omaha, Nebraska, Omaha Public
Power District (OPPD) is one of the largest publicly
owned electric utilities in the nation and serves more
than 280,000 customers in 13 southeast Nebraska
counties. Before 2002, OPPD had been looking for a
renewable power source and had evaluated solar energy,
biomass, and municipal solid waste. The utility identified
LFG energy as its most cost-effective, renewable energy
option. OPPD built a LFG energy facility at Waste Management
Inc.'s Douglas County Recycling and Disposal Facility, which
consists of four generating units that provide electricity
generating capacity of 3.2 MW. Known as the Elk City
Station, the LFG facility has been generating power since
April 2002; it was the first LFG project in Nebraska. The
project was designed to reduce methane emissions by
approximately 6,750 tons annually and initially generate
enough electricity each year for 2,000 homes, according
to project developers. At maximum landfill gas
generation, the project will support a capacity of 30 MW,
enough power for 23,000 homes. Using landfill gas will
offset the use of approximately 19,000 tons of coal per
year that normally would have been used to generate
electricity at OPPD's North Omaha Station.
METHANE PROGRAMS
27
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"We are proud to have been recognized by EPA for our efforts in
reducing greenhouse gas emissions. EPA's partnership program is
economically and environmentally beneficial for everyone, and we
are honored to be a part of it."
—G. W. "Bill" Dietrich, CEO, Onyx North America
INDUSTRY PARTNER OF THE YEAR:
ONYX WASTE SERVICES
Milwaukee, Wisconsin
Onyx Waste Services has developed a large portfolio of
LFG energy projects, generating 30 MW of power from
5 landfill sites throughout the United States. The
company's projects meet the power needs of industrial
and residential customers alike. For example, the Onyx
Oak Ridge Landfill in Missouri supplies LFG gas as a
direct fuel for boilers at DaimlerChrysler's St. Louis
assembly plant. Already providing up to 70 percent of the
plant's boiler steam load, the project is expected to
supply gas for the next 25 years. For the Glacier Ridge
Landfill in Wisconsin, Onyx developed a 2 MW landfill
gas-to-energy project as part of Alliant Energy's "Second
Nature" Renewable Energy Program. This program
offers Alliant's customers a choice in supporting clean
renewable energy sources. The electricity produced from
this facility provides enough power for about 3,000
homes. These and other successful Onyx projects are
collectively offsetting the use of more than 2.5 million
barrels of oil each year. Onyx plans on doubling the
number of projects in the next several years.
STATE PARTNER OF THE YEAR:
THE SOUTH CAROLINA ENERGY OFFICE
Columbia, South Carolina
The South Carolina Energy Office (SCEO) has worked
diligently with local and state agencies and with industry
to launch the first LFG energy projects in the state and
build a strong coalition for LFG energy. SCEO has
encouraged many influential organizations, such as the
State Chamber of Commerce and State Association of
Counties, to join in promoting LFG energy as a positive
force for the state. SCEO's results-oriented approach
helped catalyze many projects, including the Horry
County Landfill/Santee Cooper project to generate green
power, and a direct-use project to supply energy to a
BMW assembly plant using LFG piped 10 miles from a
Waste Management, Inc., landfill. Additionally, due to
SCEO's efforts. South Carolina recently passed a
regulation classifying LFG as a renewable energy source.
The combined annual greenhouse gas benefits of the
Horry County/Santee Cooper green power program and
the BMW/Waste Management direct-use project are the
carbon equivalent of removing the emissions from
130,000 cars or planting 180,000 acres of forest.
"BMW wants to do whatever it can to make upstate South Carolina a better place to live. This
LFG energy project allows BMW to take a wasted source of energy and use it to generate
electricity, which benefits the environment and area residents through lower emissions."
—Dr. Helmut Leube, President, BMW Manufacturing Corporation
28
CLIMATE PROTECTION PARTNERSHIPS DIVISION 2002 ANNUAL REPORT
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"We're convinced that proactive environmental responsibility is good business. Efforts to reduce
our methane emissions often improve the operating efficiency of the pipelines, and that leads to
financial reward."
—Steve Wilner, Columbia Gas and Columbia Gulf Transmission
NaturalGasfi
EPA POLLUTION PREVENTER
NATURAL GAS STAR PROGRAM
Natural Gas STAR is a voluntary
partnership between EPA
and the U.S. natural gas
industry designed to
overcome barriers to the
idoption of cost-effective
technologies and practices that
reduce emissions of methane.
Natural Gas STAR was launched in 1993 with the
transmission and distribution sectors, and has since expanded
twice—to the production sector in 1995 and the processing
sector in 2000. The program has achieved significant
reductions through 2002, reducing methane emissions from
natural gas systems by 5.5 MMTCE in 2002 alone.
Natural Gas STAR has developed a range of tools and
resources designed to help corporate partners implement best
management practices to reduce gas loss. These include an
implementation guide, a series of "Lessons Learned" studies,
technology transfer workshops, partner-to-partner information
exchanges, and more. Extensive partner support for and
continued expansion of the program, combined with ongoing
positive feedback from partners, demonstrates the effectiveness
of these tools in promoting methane reduction activities.
In 2002, Natural Gas STAR:
• Achieved 58 percent industry participation across all
major sectors (production, processing, transmission, and
distribution).
• Partnered with four new companies, bringing the total
number of partners to 98.
• Expanded the popular technology transfer workshops to
include the gas processing sector.
• Initiated a 2-year study to identify additional cost-effective
methane emissions reduction opportunities from the gas
production and processing sectors.
In 2003, EPA will:
• Expand Natural Gas STAR in all sectors to attain
62 percent industry participation.
• Develop and launch technology transfer workshops for the
natural gas distribution and transmission sectors.
• Work with the American Petroleum Institute to implement
its voluntary commitment of 100 percent participation in
the Natural Gas STAR Program under the President's
"Climate VISION" (Voluntary Innovative Sector Initiatives:
Opportunities Now).
METHANE PROGRAMS
29
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PRODUCTION PARTNER OF THE YEAR
PHILLIPS PETROLEUM COMPANY
Phillips Petroleum Company joined
the Natural Gas STAR Program in May
1999 and one year later submitted an
exemplary implementation plan. The
company has followed up on its commitment by
implementing numerous Best Management Practices
(BMPs) and Partner Reported Opportunities (PROs),
which have produced impressive results. The company
reported approximately 235 million cubic feet (MMcf) in
methane emissions reductions for 2001, bringing
cumulative methane emissions reductions to
approximately 1.5 billion cubic feet (Bcf).
TRANSMISSION PARTNER OF THE YEAR
DUKE ENERGY GAS TRANSMISSION
DISTRIBUTION PARTNER OF THE YEAR
SOUTHWEST GAS CORPORATION
Duke Energy .
Gas Transmission
Duke Energy Gas
Transmission has
been a very active
partner since joining the Natural Gas STAR Program in
September 2000. The company's first annual report to
EPA was impressive, documenting emissions reductions
of 4.0 Bcf from 1993 through 2000 and new reductions of
535 MMcf for 2001. Duke Energy is an avid supporter of
Natural Gas STAR Program outreach activities. The
Manager of Environmental Compliance, David Felcman,
presented a paper on Duke Energy's Natural Gas STAR
activities at the Canadian Energy Pipeline Association's
Climate Change Workshop in Calgary, Alberta, Canada,
in September 2002.
SOUTHWEST COS tORPORRTIOn
Since joining the
Natural Gas STAR
Program in 1997,
Southwest Gas
Corporation has been an active Gas STAR partner,
achieving cumulative methane emissions reductions of
1.7 Bcf. The company's reported reductions for 2001—
nearly 445 MMcf—were significantly higher than those
reported by any other distribution partner. Southwest
Gas has proved its commitment to the Natural Gas STAR
Program by enthusiastically promoting the program's
benefits. The company recently provided a testimonial at
the American Gas Association's annual conference,
acknowledging the benefits of participating in Gas STAR,
and contributed an article on the Natural Gas STAR
Program to the American Gas Journal.
PROCESSING PARTNER OF THE YEAR
PIONEER NATURAL RESOURCES
PIONEER
Pioneer Natural Resources
joined the Natural Gas STAR
NATURAL RESOURCES Program as a charter
processing partner in September 2000. The company's
sound implementation of the Natural Gas STAR Program
has produced significant emissions reductions in the first
full year of participation. Reported reductions in methane
emissions for 2001 topped the list for processing
partners at 7.3 MMcf, and their reductions total nearly
1.5 Bcf. Pioneer staff shared successes with attendees at
the 2002 annual workshop by presenting an overview of
their implementation of the Natural Gas STAR Program.
30
CLIMATE PROTECTION PARTNERSHIPS DIVISION 2002 ANNUAL REPORT
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"The EPA Natural Gas STAR Program's wealth of information about emission reduction
tactics eliminated time spent exploring and testing new solutions."
—MikeMilliet, ChevronTexaco Corporation
CONTINUING EXCELLENCE
BP
BP is one of two recipients of the
2001 Continuing Excellence award for
its strong presence in the Natural Gas
STAR Program. Since joining as a
charter production partner (as
Amoco) in 1995, BP has continually
exhibited leadership by reducing methane emissions,
communicating the benefits of the program, and
facilitating technology transfer. BP's cumulative program
reductions have reached nearly 5.6 Bcf, and the 2001
methane emissions reductions were among the highest
reported for production partners—508.3 MMcf. BP
continues to find and implement new emissions
reduction opportunities and actively support Natural Gas
STAR Program outreach activities and technology transfer.
CONTINUING EXCELLENCE
COLUMBIA GAS TRANSMISSION AND
COLUMBIA GULF TRANSMISSION
Columbia Gas and
Columbia Gulf Transmission,
the Transmission Partners of
the Year in 2000 and 2001,
were also recipients of the
Gas STAR Continuing
Excellence Award in 2002. Columbia Gas and Columbia
Gulf have shown outstanding implementation of the
Natural Gas STAR Program during their first 3 years of
participation. Their nearly 5 Bcf of new reductions
reported in 2002 were the highest methane emissions
reductions achieved for transmission partners; their
cumulative program reductions total more than 18 Bcf.
The companies have implemented many PROs since
joining the program, and continue to find and implement
new emissions reduction opportunities. They are actively
working with other companies and business units within
NiSource to educate them on the benefits of Gas STAR
and the value of methane emissions reductions.
ROOKIE OF THE YEAR
MURPHY EXPLORATION AND PRODUCTION
Jrin simssLon
Columbia GuJl:"
MURPHY
Murphy Exploration and
Production joined Natural
Gas STAR in November
2000. The company
exhibited outstanding
EXPLORATION &
PRODUCTION
COMPANY
implementation of the Natural Gas STAR Program
during its first year of participation, mounting an
extensive effort to collect, quantify, and report emissions
reductions. The combined implementation plan and
annual report for 2001 contained detailed information on
the company's emissions reduction accomplishments to
date, totaling an impressive 1.1 Bcf.
ROOKIE OF THE YEAR
NORTH CAROLINA NATURAL GAS COMPANY
NCNG
A Progress Energy Company
Since joining as a distribution partner in June 2001,
North Carolina Natural Gas Company has exhibited
outstanding implementation of the Natural Gas STAR
Program. The company's sound implementation plan,
submitted in February 2002, included directed inspection
and maintenance (DI&M) at gate and compressor
stations and turbine installations. The full rollout of its
Gas STAR program began during the second quarter of
2002. Since then, approximately 60 gate stations and
all compressor stations have undergone detailed
leak inspections.
METHANE PROGRAMS
31
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COALBED METHANE OUTREACH PROGRAM
The Coalbed Methane Outreach Program (CMOP) reduces methane emissions from
underground coal mines by collaborating with large coal companies and small businesses—
primarily independent natural gas project developers and equipment supply companies—to
develop environmentally beneficial and economically successful coal mine methane (CMM)
projects. Outreach efforts focus on providing high-quality, project-specific information. CMOP
has achieved significant results through 2002.
EPA began working with the coal mining industry in 1990 when coal mines captured and used
only 25 percent of the methane produced from their degasification systems. As a result of this
collaboration, the percentage of methane recovery grew to more than 80 percent by 2002. To
eliminate the remaining methane emitted from degasification systems, CMOP is working with
industry to use CMM in power generation and upgrade low-quality gas to pipeline specifications.
In addition, the program supports efforts to demonstrate the use of flare technology, which has
yet to be employed at an active U.S. mine.
Following the program's success in reducing methane emissions from degasification systems,
CMOP has expanded its focus to the methane emitted from coal mine ventilation systems.
Ventilation air from coal mines typically contains methane at concentrations below one percent,
yet accounts for 92 percent of the remaining methane emissions from underground coal mines—
more than 86 Bcf of methane annually. CMOP is collaborating with industry and other federal
agencies to demonstrate and deploy newly developed technologies that can reduce these emissions
substantially over the next few years.
CMOP has developed a range of tools designed to overcome the barriers to recovery and
combustion of coal mine methane. These include numerous technical and economic analyses of
technologies and potential projects, mine-specific project feasibility assessments, state-specific
analyses of project potential, market evaluations, and guides to state, local, and federal assistance
programs. CMOP has collaborated with operators of virtually every major U.S. underground coal
mine that has gassy conditions or that emits gases to apply these tools and facilitate projects,
which in 2002 alone achieved a reduction of 1.7 MMTCE.
In 2002, CMOP:
• Reduced methane emissions at 12 of the gassiest mines in the country by providing high-
quality, project-specific information to mine operators, project developers, and other
stakeholders.
• Completed an analysis of domestic and international emerging markets for ventilation air
methane projects, identifying new technologies, and assessing project costs and benefits.
• Began implementing the first commercial-scale demonstration of ventilation air oxidation
technology in the United States.
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CLIMATE PROTECTION PARTNERSHIPS DIVISION 2002 ANNUAL REPORT
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In 2003, EPA will:
• Finalize the first U.S. methane emissions
inventory for abandoned coal mines and
incorporate it into the U.S. Inventory of
Greenhouse Gas Emissions and Sink.
• Work with an industry partner and DOE to
begin operating the first commercial-scale
demonstration of ventilation air oxidation
technology in the United States.
• Work with DOE and the National Mining
Association to implement their voluntary
commitments to reduce CMM emissions under
the Presidents "Climate VISION" (Voluntary
Innovative Sector Initiatives: Opportunities
Now).
TABLE 4.
Methane Programs: annual goals and achievements
2002 Goal
TOTAL REDUCTIONS (MMTCE) 10.2
LMOP
Number of Projects 235
Annual Methane
Reductions (MMTCE) 3.9
Natural Gas STAR
Industry Participation
(% in program) 59%
Annual Gas
Savings (MMTCE) 4.6
CMOP1
Annual Methane
Reductions (MMTCE) 1.7
2002
Achievement
11.1
225
3.9
58%
5.5
1.7
2003 Goal
10.6
249
4.1
62%
4.8
1.7
^ Revisions to the methodology for determining emissions from undergound coal mines, program
achievements, and reduction goals were implemented in 2002. Improved data on pre-drainage wells
led to a decrease in emissions estimates and a corresponding downward adjustment of program
reduction goals.
PROGRAM EVALUATION: MEASURING RESULTS IN THE METHANE PROGRAMS
Tracking and recording the methane reductions achieved by EPA's partnership programs is a straightforward process. EPA
gathers project-specific data on all the methane reduction activities implemented in coordination with the partnerships.
NATURAL GAS STAR
Industry partners report their reduction activities to EPA on a detailed online reporting form, and EPA works with partners to
verify these data.
LANDFILL METHANE OUTREACH
EPA works with all stakeholders to compile up-to-date annual project information. The program reports reductions from only
those projects that EPA directly assisted.
COALBED METHANE OUTREACH
EPA gathers state gas sales data for each mine to determine the total amount of coal mine methane used from degasification
systems. Although EPA works with every project, the program reports only 40 percent of the total reductions achieved,
attributing 60 percent to the impact of the Energy Policy Act of 1992. In the future, the program will also report emissions
reductions from ventilation air methane reduction projects.
METHANE PROGRAMS
33
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AGRICULTURE-BASED PROGRAMS
Through outreach to agriculture-based organizations and farmers, EPA and the U.S. Department
of Agriculture (USDA) work together to promote practices that reduce greenhouse gas emissions
at U.S. farms. The programs collaborate with U.S. swine and dairy producers to encourage
development of waste management systems that produce farm revenues while reducing water
and air pollution. EPA provides technical information and tools to aid in the assessment and
implementation of these projects.
In 2002, EPA and USDA:
• Coordinated development and implementation of anaerobic digestion funding mechanisms
under the 2002 Farm Bill.
• Revised National Standards for Anaerobic Digestion technologies.
• Assisted swine and cattle producers in implementing projects that produced nearly
14 million kWh/year of renewable energy from farms capturing methane—energy then
used by the farm and local community.
• Assisted states, including California and New York, in developing programs and policies for the
broader deployment of methane-capturing technologies.
In 2003, EPA and USDA will:
• Continue the expansion of methane-reducing technologies in the livestock sector to help ensure
clean water and air through implementation of the Farm Bill and extension activities.
• Collaborate with state energy programs in the west, northeast, southeast, and midwest to
facilitate the development of anaerobic digesters as renewable energy resources.
• Revise and update the AgSTAR Handbook and Farm Ware to provide farmers with the
necessary guidance and tools so that they can evaluate and successfully implement proven
anaerobic digestion technology.
34
CLIMATE PROTECTION PARTNERSHIPS DIVISION 2002 ANNUAL REPORT
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"Climate friendly processes and products, comprehensive recycling,
employee involvement... VAIP and Climate VISION help us put our goals
into action.'
—Ken Martchek, Alcoa, Inc.; Chair, Aluminum Association PFC Task Force
HIGH GWP
ENVIRONMENTAL
STEWARDSHIP
PROGRAMS
HIGH GLOBAL WARMING POTENTIAL
ENVIRONMENTAL STEWARDSHIP
PROGRAMS
Public-private industry partnerships are substantially reducing
U.S. emissions of the high global warming potential (GWP)
gases, which are released as byproducts of industrial
operations. These partnerships involve various industries that
are developing cost-effective improvements in their industrial
processes to reduce emissions of perfluorocarbons (PFCs),
hydrofluorocarbons (HFCs), and sulfur hexafiuoride (SF6)—
all particularly potent greenhouse gases. When compared
ton-for-ton with CO2, they trap much more heat in the
atmosphere. PFCs and SF6 also have very long atmospheric
lifetimes (see Table 1). Despite the potential for sizable growth
in high GWP greenhouse gas emissions, these partner
industries are expected to maintain emissions below 1990
levels through the year 2012 (see Figure 9).
THE VOLUNTARY ALUMINUM
INDUSTRIAL PARTNERSHIP (VAIP)
The primary aluminum producers are collaborating with EPA
to reduce emissions of PFCs, which are a byproduct of the
smelting process. The goal is to reduce perfluoromethane
(CF4) and perfluoroethane (C2F6) where technically feasible
and cost effective. Since the partnership began in 1995,
participating industries have had notable success in
characterizing the emissions from their smelter operations
and reducing overall emissions.
In 2002, the Voluntary Aluminum Industrial Partnership
supported the International Aluminum Institute's efforts to
develop a PFC smelter-specific measurement and training
module that will serve as the foundation for an industry-wide,
self-supporting measurement program. This module will help
smelter managers develop PFC emissions reduction strategies
and improve the consistency and comparability of global
emissions data.
ENVIRONMENTAL STEWARDSHIP PROGRAMS
35
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EPA VOLUNTARY PARTNERSHIPS PROVIDE CORNERSTONE FOR THE PRESIDENT'S
"CLIMATE VISION" (VOLUNTARY INNOVATIVE SECTOR INITIATIVES:
OPPORTUNITIES NOW)
Climate VISION is a voluntary, public-private
partnership managed by DOE to pursue cost-effective
industry sector initiatives that will reduce the
projected growth in America's greenhouse gas
emissions. Climate VISION responds to President
Bush's announcement on February 14, 2002, to
address the long-term challenge of global climate
change. As part of this strategy, he committed to
reducing America's greenhouse gas intensity—the
ratio of emissions to economic output—by 18 percent
during the next decade, and he challenged American
businesses and industries to undertake broader
efforts to help meet that goal. EPA's existing voluntary
partnerships in the aluminum, magnesium, and
semiconductor sectors will enrich these industries'
participation in Climate VISION.
Partner companies in EPA's SF6 Emission Reduction
Partnership for the Magnesium Industry have
committed to eliminating SF6 emissions from their
magnesium operations by 2010. SF6 is the most
potent greenhouse gas known today—more than
23,000 times as powerful or potent as the most
common greenhouse gas, carbon dioxide. The
partner companies committed to eliminating SF6
emissions represent 100 percent of U.S. primary
magnesium production and approximately 80 percent
of U.S. magnesium casting and recycling. The
industry's actions will reduce overall U.S. SF6 emissions
in 2010 by an estimated 20 percent and will have a
climate benefit equivalent to eliminating greenhouse
gas emissions from more than one million cars.
The Semiconductor Industry Association (SIA) in
partnership with EPA has committed to reducing a
suite of the most potent greenhouse gas emissions by
10 percent from 1995 levels by the end of 2010. SIA
has agreed to this goal on behalf of 22 semiconductor
manufacturers that account for more than 70 percent
of this sector's HFC, PFC, and SF6 "perfluorocompound"
emissions. Perfluorocompounds are among the most
potent and persistent of all global warming gases
and are used to clean semiconductor manufacturing
equipment and to etch silicon wafers to create
circuitry patterns. These perfluorocompounds have,
on average, 10,000 times the global warming
potential of carbon dioxide over 100 years, plus,
they can persist in the atmosphere from 2,000 to
50,000 years. Launched in 1996, this partnership has
catalyzed global industry efforts by the World
Semiconductor Council and other semiconductor
trade associations to reduce greenhouse gas
emissions worldwide. Semiconductors manage
electronic information in a wide variety of products
such as computers and cell phones.
The Aluminum Association, representing 98 percent
of primary aluminum production in the United States,
has agreed to a direct carbon intensity reduction
target of 53 percent by 2010 from 1990 levels. The
goal includes the reduction in emissions from PFCs
and CO2 from the consumption of the carbon anode.
As large industrial energy consumers, the primary
producers also agreed to continue their efforts to
reduce indirect CO2 emissions through continued
energy efficiency improvements. The industry has
been working to reduce greenhouse gas emissions for
over a decade, and this new commitment equates to
an additional direct carbon intensity reduction of
25 percent since 2000. This commitment builds on
the efforts of the Voluntary Aluminum Industry
Partnership (VAIP), a partnership program that EPA
has had with the industry since 1995. VAIP reduced
PFC emissions by more than 45 percent in 2000
compared to the industry's 1990 baseline. The
Aluminum Association will measure progress for
Climate VISION based on data collected from its
members and pledges to support climate protection
through efforts to increase aluminum recycling and
through the development of lightweight vehicles.
36
CLIMATE PROTECTION PARTNERSHIPS DIVISION 2002 ANNUAL REPORT
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"It might be hard for people not working in semiconductors to imagine how the energy and
enthusiasm of technical innovation can inspire environmental protection. Today only a few
companies share this ambitious goal, but soon companies will raise their sights to the ultimate goal:
'climate positive'and sustainable. Let's leave the world a little better than when we found it."
—Dr. Fabio R. Borri, Environment Strategies Corporate Director (retired 2002), STMicroelectronics
HFC-23 EMISSION REDUCTION
PROGRAM
Industry is working with EPA to reduce emissions of the
potent greenhouse gas, HFC-23, which is generated as a
byproduct in the manufacture of the refrigerant HCFC-22.
Through this program, EPA encourages all U.S. producers of
HCFC-22 to develop and implement technically feasible,
cost-effective processing practices or technologies to reduce
HFC-23 emissions.
Partners have reduced emissions of HFC-23 through process
optimization and thermal destruction. Their efforts have
helped significantly reduce the intensity of HFC-23 emissions
(the amount of HFC-23 emitted per kilogram of HCFC-22
manufactured). Despite a considerable increase in production
since 1990, total emissions are below 1990 levels—a reduction
of 5.1 MMTCE compared to business-as-usual. In 2002, EPA
partnered with 100 percent of the U.S. HCFC-22 producers
to use process optimization and abatement to reduce
production byproduct emissions of HFC-23—the most
potent and persistent of the hydrofluorocarbons.
THE PFC EMISSION REDUCTION
PARTNERSHIP FOR THE
SEMICONDUCTOR INDUSTRY
^emi/ttf. Since 1996, this partnership has been a catalyst
4^ -ox ^ f°r semiconductor companies in Europe,
^f' f' jy Japan, Korea, Taiwan, and the United States
to jointly set the first global target for
reducing greenhouse gas emissions.
Collaborating with EPA, these companies have
identified and implemented process changes and manufacturing
tool improvements in the production of integrated circuits to
reduce emissions of PFCs.
EPA launched the PFC Emission Reduction Partnership for
the Semiconductor Industry in 1996. While the partnership's
initial focus was reducing PFC emissions from U.S. semi-
conductor fabrication plants, EPA and its industry partners
quickly recognized the advantage of addressing this global
environmental challenge through international cooperation.
Seeking to maintain a "level playing field" for the multinational
FIGURES.
Partner actions can maintain voluntary program sector
emissions of high global warming potential gases at or
below 1990 levels through 2012
•90 '95
YEARS 1990-2012
Source: EPA Climate Protection Partnerships D',
partner companies, the partnership encouraged other nations'
governments to develop similar voluntary initiatives. Japan
was the second country to establish a voluntary partnership
following a meeting organized by Japan's Ministry of
International Trade and Industry and EPA in 1996. With the
United States and Japan gaining momentum in coordinating
PFC emissions reduction activities, the remaining major
semiconductor producers including Europe, Korea, and
Taiwan joined the effort soon thereafter.
In April 1999, the World Semiconductor Council (WSC),
whose members include the national semiconductor industry
associations of Europe, Japan, Korea, Taiwan, and the United
States, announced a technically challenging goal to reduce
PFC emissions by at least 10 percent below the 1995 baseline
level by year-end 2010. The WSC's goal represents the first
greenhouse gas emissions reduction target for an entire global
industry. This type of aggressive goal setting reassures
international governments, industry suppliers, and the public
of the industry's commitment to protect the climate.
ENVIRONMENTAL STEWARDSHIP PROGRAMS
37
-------
In 2002, the PFC Emission Reduction Partnership for the
Semiconductor Industry:
• Analyzed potential PFC emissions from flat panel display (FPD) manufacturing. FPD
manufacturing uses PFC-based plasma etch and chamber cleaning processes very similar to
those used by the semiconductor industry. EPA encouraged the transfer of cost-effective
emissions control technologies from the semiconductor sector to FPD manufacturing at the
6th International Greenhouse Gas Control Technologies Conference in Kyoto, Japan.
• Initiated peer review of its semiconductor emissions projection "vintage" model at the 2002
International Semiconductor Environmental, Safety and Health Conference in San Diego, CA.
This model provides EPA and industry with a tool to project PFC emissions based on rapidly
evolving semiconductor manufacturing technologies and allows users to understand the impact
of emissions reduction strategies as they are expected to be phased into global production. The
model also supports EPA's inventory development and economic analyses.
SF6 EMISSIONS REDUCTION PARTNERSHIP FOR ELECTRIC
POWER SYSTEMS
Initiated in 1999, this partnership provides a forum for the electric power industry to work with the
U.S. government to reduce sulfur hexafiuoride (SF6) emissions to technically and economically feasible
levels through identifying and encouraging adoption of best technologies and management practices.
SF6 is used in the transmission of high-voltage electricity. Fugitive emissions from aging high-
voltage equipment or improper service and maintenance practices contribute to greenhouse gas
emissions. SF6 Emissions Reduction partners are industry leaders, providing reliable power to
customers in an environmentally responsible manner.
In 2002, the SF6 Emissions Reduction Partnership for Electric Power Systems:
• Developed an electronic report form to facilitate the annual reporting effort.
• Organized the Second International Conference on SF6 and the Environment in San Diego, CA.
Co-sponsored by the Australian Greenhouse Office, Environment Canada, and The
Netherlands Reduction Program for Non-CO2 Greenhouse Gases (ROV), the conference
attracted more than 100 attendees from 10 countries.
SB Emission Rt
Partnetshiptorthe Magnesium Indusny
SFG EMISSION REDUCTION PARTNERSHIP FOR THE
MAGNESIUM INDUSTRY
The U.S. magnesium industry is working with EPA to identify and encourage the adoption of best
management practices for reducing emissions of sulfur hexafiuoride (SF6), a long-lived and potent
greenhouse gas. Launched in 1999, this partnership to reduce emissions from magnesium production and
casting operations represents approximately 80 percent of U.S. magnesium industry emissions.
38
CLIMATE PROTECTION PARTNERSHIPS DIVISION 2002 ANNUAL REPORT
-------
"Magnesium is the climate friendly material for the 21st century. EPA has proven itself a valuable
partner to the U.S. magnesium industry and the International Magnesium Association as we work
together to eliminate direct emissions ofSF6—an extremely potent greenhouse gas. Furthermore,
our industry's light weight magnesium automotive parts will enable the design and production of
the cleaner, more fuel-efficient vehicles required for a sustainable future."
—Helmut Brandt, President, Lunt Manufacturing; President, International Magnesium Association
J o o
In 2002, the SF6 Emission Reduction Partnership
for the Magnesium Industry:
• Signed its first Memorandum of Understanding (MOU)
with a magnesium recycling firm and now partners with
16 companies, representing 100 percent of primary
magnesium production and 80 percent of domestic casting
and recycling capacity.
• Completed its third annual emissions reports from
magnesium partners. Emissions estimates are reported using
software designed by EPA with input from the partners.
EPA's partners have reduced total SF6 emissions by
40 percent in 3 years.
• Concluded a 3-year cooperative study with the
International Magnesium Association to identify viable
alternative cover gases. This successful investigation
identified promising alternatives such as HFC-134a, Novec
612 (a 3M fluorinated ketone), and hydrofluoroethers.
• Conducted the first measurement campaign to characterize
emissions from hot-chambered magnesium die-casting
processes, presenting the results at the Metals, Minerals, and
Materials Society's (TMS) annual meeting. EPA wishes to
thank its partner, Product Technologies, for participating in
this groundbreaking study.
MOBILE AIR CONDITIONING CLIMATE
PROTECTION PARTNERSHIP
Under the Montreal Protocol for the Protection of the Ozone
Layer, new vehicles worldwide have been redesigned to use
HFC-134a refrigerants in air-conditioning systems rather than
CFC-12. The production of CFC-12 refrigerants for use in
developed countries was halted in 1996 and will be phased
out globally by 2006. HFC-134a was the global choice
because it has no ozone depleting potential, has six times less
global warming potential than CFC-12, is non-flammable,
has low toxicity, and has cooling capacity and energy
efficiency that can be made comparable to CFC-12 through
engineering. Although HFC-134a has far less impact on the
climate than the CFC-12 it replaced, it is part of "the basket"
of greenhouse gases whose emissions need to be reduced.
The Society of Automotive Engineers (SAE), the Mobile Air
Conditioning Society Worldwide, and EPA have organized a
global voluntary partnership to promote improved
air-conditioning systems and service. This partnership
includes environmental authorities from Australia, Canada,
Europe, and Japan; environmental and industry non-
government organizations (NGOs); and global vehicle
manufacturers and their suppliers. Measures to improve the
environmental performance of vehicle air conditioning
systems consider (1) both refrigerant and fuel consumption
over the life of the vehicle, (2) consumer demand for reliable
and affordable transportation, and (3) requirements for special
safety systems and technician training.
The partnership has four goals:
• To promote cost-effective designs and improved service
procedures to minimize emissions from HFC-134a systems.
• To cooperate on developing and testing the next
generation of mobile air-conditioning systems that satisfy
customer requirements and environmental, safety, cost,
and reliability concerns.
• To communicate technical progress to policymakers and
the public.
• To document the current and near-term opportunities
for improving the environmental performance of mobile
air-conditioning system design, operation, and maintenance.
In 2002, the partnership completed laboratory testing of air-
conditioning systems using carbon dioxide, HFC-152a, and
hydrocarbons, comparing environmental performance against
the benchmarked HFC-134a system. Partners held meetings
in Europe and North America, and organized the "2003 MAC
Summit" in Brussels, Belgium, to provide the latest technical
information to policymakers.
Participants at the MAC Summit concluded that the current
HFC-134a systems could be enhanced to reduce refrigerant
greenhouse gas emissions by up to 50 percent and reduce fuel
use for air-conditioning by up to 30 percent at an added cost
that would be quickly recovered in fuel savings, reduced maintenance,
and increased reliability. The partnership is now developing a new
strategy to promote these environmental and product improvements.
The partnership has also instituted the "Automotive
Alternate Refrigerant Symposium" as an annual event to
showcase technical presentations and road tests of prototype
motor vehicles using the new alternative refrigerants HC,
HFC-152a, andCO2.
ENVIRONMENTAL STEWARDSHIP PROGRAMS
39
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In 2003, the High GWP Environmental Stewardship Programs will:
• Conduct smelter measurements at three partner facilities to complete the U.S. smelter-type data
set and to validate past process-type measurements. Develop training materials to support
aluminum process engineer and cell operator efforts to reduce PFC emissions.
• Work with the U.S. semiconductor partners to achieve their 10 percent PFC emissions
reduction goal by 2010 from their 1995 baseline, support reporting of high quality emissions
data through the development of a data collection tool kit for partner companies, seek to
quantify greenhouse gas emissions from FPD manufacturing, and facilitate the transfer of
appropriate emissions reduction technologies from the semiconductor sector.
• Support the SF6 Emissions Reduction Partnership for Electric Power Systems (utilities) through
the analysis of new equipment leak rates.
• Maintain an effective partnership with HCFC-22 chemical manufacturers to reduce emissions
ofHFC-23.
• Expand the stewardship programs to reduce high GWP emissions from other key sources, such
as the ozone-depleting substance replacement industries.
• Continue to explore and document the performance of new vehicle air-conditioning designs.
• Collaborate with the Australian Greenhouse Office to implement information sharing projects
to reduce high GWP emissions.
TABLE 5.
Stewardship Programs: annual goals and achievements
TOTAL REDUCTIONS (MMTCE)
VOLUNTARY ALUMINUM INDUSTRIAL
PARTNERSHIP
Industry Participation (% in program)
Reductions (MMTCE)
HFC-23 PARTNERSHIP
Industry Participation (% in program)
Reductions (MMTCE)
OTHER STEWARDSHIP PROGRAMS
Industry Participation (% in program)
Reductions (MMTCE)
2002 Goal
7.2
95%
2.0
100%
4.4
60%-100%
0.8
2002
Achievement
7.4
98%
1.8
100%
4.5
45%-100%
1.1
2003 Goal
8.6
98%
2.1
100%
4.9
50%-100%
1.6
^ These goals have been adjusted downward to reflect lower than expected HCFC-22 production and the closure of one of the four U.S.
HCFC-22 plants. The industry average HFC-23 emission factor actually declined more than expected.
2 Participation varies from 45% of net generating capacity for electric power systems to 100% for primary magnesium producers.
40
CLIMATE PROTECTION PARTNERSHIPS DIVISION 2002 ANNUAL REPORT
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INTERNATIONAL CLIMATE PROTECTION AWARD WINNERS
Since 1998, 81 individuals, companies, and organizations from 14 countries have earned
EPA's Climate Protection Award honoring outstanding accomplishments in protecting the
Earth's climate. The award recipients have demonstrated their commitment to the environment
through innovation in engineering, policy, and marketing. Their leadership will reduce
greenhouse gas emissions and inspire others to do their part. This year's winners are from
China, India, South Korea, and the United States.
CORPORATE AND GOVERNMENT AWARDS
Center for Power Efficiency and Environmental Protection (CenPEEP)
India
Chicago Department of Environment
Illinois
China National Institute of Standardization (CNIS)
China
City of Chula Vista
California
Emerald Homes
Texas
Pacific Gas and Electric Company (PG&E)
California
City of Seattle
Washington
ORGANIZATION AND ASSOCIATION AWARDS
Green House Network
International Council for Local Environmental Initiatives (ICLEI)
The Society of Automotive Engineers (SAE) Interior Climate Control
Standards Committee
INDIVIDUAL AWARDS
Mayor Ross C. "Rocky" Anderson
Salt Lake City, Utah
Dr. Seunghun Joh
Korea Environment Institute, South Korea
David Konkle
Ann Arbor Energy Office, Michigan
2003 LIFETIME ATMOSPHERIC ACHIEVEMENT AWARD
SC Johnson & Son, Inc., USA
ENVIRONMENTAL STEWARDSHIP PROGRAMS
41
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BENEFITS OF VOLUNTARY PROGRAMS
ENERGY STAR and other voluntary programs have been very successful during their first
decade. They have dramatically increased the use of energy-efficient products and practices and
reduced emissions of carbon dioxide, as well as methane and other greenhouse gases with very
high global warming potentials.
For the year 2002, these partnerships prevented 43 million metric tons of greenhouse gas
emissions (in MMTCE)—equivalent to the annual emissions from more than 28 million
vehicles—while helping Americans save more than $7 billion.
And the benefits from these programs extend well beyond the emissions reductions and dollar
savings in the year 2002 alone. As the partnership programs spur investment in climate friendly
technologies and the purchase of energy-efficient products, they create a stream of benefits that
accrue over the lifetime of the investment or product. Overall, the benefits from the investments
and product purchases of program partners and consumers through the year 2002 can be
summarized as follows:
• More than 600 million metric tons of greenhouse gas emissions are being avoided through 2012.
• Consumers and businesses have locked in investments in energy-efficient technologies
exceeding $12 billion.
• Net of the investments in energy-efficient technologies, consumers and businesses are saving
more than $80 billion cumulatively through 2012.6
The benefits (see Table ES-1 on page 3) and how they are derived are described below for three
key climate partnership program areas: ENERGY STAR, Methane Programs, and Environmental
Stewardship Programs for the High GWP Gases.
ENERGY STAR. The estimated benefits from the ENERGY STAR program reflect the stream
of energy savings that will persist through 2012 due to technology investments and product
purchases made through the year 2002 by ENERGY STAR partners and due to the effects of
markets already transformed. The persistence is calculated by maintaining the energy savings
achieved in 2002 through the year 2012.7 The underlying assumption is that the lifetime of most
building improvements and product purchases is at least 10 years. For products with shorter
lifetimes, such as computers, fax machines, and audio equipment, it means that once consumers
buy ENERGY STAR qualified products, they are expected to replace them with ENERGY STAR
qualified products. The benefits that can be attributed to pre-existing trends are subtracted out of
the estimated ENERGY STAR benefits presented in this 2002 annual report. From these expected
energy savings, benefits are determined in the following manner:
• Emissions prevented are calculated as the product of the energy savings (e.g., kWh of
electricity) and an annual emission factor (e.g., MMTCE prevented per kWh).
6/Vef economic benefits are calculated by estimating the savings in energy expenditures by partners and customers of ENERGY STAR qualified products and subtracting any additional capital
expenditures necessary to purchase qualified products, upgrade to ENERGY STAR specifications, or change from general operating procedures.
' The energy savings for the year 2002 are estimated from information provided by the Division for the ENERGY STAR Building and Industrial Improvements program and by information provided
by the Lawrence Berkley National Laboratory for ENERGY STAR Qualified Products.
42
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THROUGH THE EFFORTS OF EPA AND ITS PARTNERS, WE WILL MAINTAIN METHANE EMISSIONS
BELOW 1990 LEVELS THROUGH 2012.
• The energy bill savings are determined as the product of the
energy saved and the cost of electricity for the affected
market segment, residential or commercial.8
• The net present value (NPV) of these savings are calculated
using a 4-percent discount rate and a 2002 perspective.9
In addition, EPA estimates the NPV of expenditures on
energy-efficient technologies based on the partners' or
customers' cost of the energy-efficient equipment, including
the cost of financing.10 For ENERGY STAR qualified
products, expenditures were taken as the incremental increase
in cost, if any, of purchasing these products. For ENERGY
STAR Building and Industrial Improvements, expenditures
include the capital costs of upgrading a building to ENERGY
STAR specifications. Finally, the NPV of the net savings is the
difference between the NPV of energy bill savings and the
NPV of expenditures. It represents the net value to partners
and ENERGY STAR product consumers of participating in
the program.
The estimated benefits for the ENERGY STAR Program from
1993 to 2012 are as follows:
Qualified Products
• Preventing 144 MMTCE in greenhouse gas emissions.
• Catalyzing $1.6 billion in investment in climate friendly
technologies.
• Providing energy bill savings net of investment of
$48.8 billion.
Building and Industrial Improvements
• Preventing 178 MMTCE in greenhouse gas emissions.
• Catalyzing $8 billion in investment in climate friendly
technologies.
• Providing energy bill savings net of investment of
$32.5 billion.
METHANE PROGRAMS. The benefits for programs with a
small number of partners, such as Natural Gas STAR and
Landfill Methane, are calculated on a project-by-project basis
from the list of projects that the programs are known to have
affected. Energy bill savings include the revenue from the sale
of methane and/or the sale of electricity made from the
captured methane. The expenditures include the capital costs
agreed to by partners to bring projects into compliance with
the Methane Programs specifications and any additional
operating costs engendered by program participation. Both
energy bill savings and technology expenditures have been
placed in net present value terms. These programs are
estimated to have the following benefits from 1993
through 2012:
• Preventing 163 MMTCE in greenhouse gas emissions.
• Catalyzing $2.7 billion in investment in climate
friendly technologies.
• Providing energy bill savings net of investment of
$2.9 billion.
ENVIRONMENTAL STEWARDSHIP PROGRAMS FOR
THE HIGH GWP GASES. 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 2012. Expenditures and financial savings in
the Environmental Stewardship 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 2012:
• Preventing 117 MMTCE in greenhouse gas emissions.
° The estimates for the retail cost of electricity are taken from the Energy Information Administration's (ElA's) Annual Energy Review for historic prices and from ElA's Annual Energy Outlook
2003 for prospective prices.
9 The 4-percent discount rate used was taken from the Office of Management and Budget Circular 94.
10 The NPV of these expenditures was calculated using a 4-percent real discount rate and a 2002 perspective.
BENEFITS OF VOLUNTARY PROGRAMS
43
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REFERENCES
Climate Protection Partnerships Division, U.S. Environmental Protection Agency. Partner and emissions
data for 2002 provided by individual programs and partnerships in the Division.
Dutrow, Elizabeth. 2003. An Estimate of Emissions Reductions Accomplished by ENERGY STAR Industrial
Partners. EPA Climate Protection Partnerships Division.
Energy Information Administration (ELA). 2002. Annual Energy Review 2001. Office of Markets and End
Use. Available online at www.eia.doe.gov/aer/contents.html.
ELA. 2003. Annual Energy Outlook 2003 with Projections to 2025. Office of Integrated Analysis and
Forecasting. January. (DOE/EIA-0383(2003)).
Horowitz, M.J. 2001. "Economic Indicators of Market Transformation: Energy Efficient Lighting and EPA's
Green Lights." The Energy Journal 2(4)-.95-]-22.
Innovest Strategic Value Advisors. 2002. Energy Management and Investor Returns: The Real Estate Sector.
October.
Intergovernmental Panel on Climate Change (IPCC). 1996. Climate Change 1995: The Science of Climate
Change. J.T. Houghton, L.G. Meira Filho, B.A. Callander, N. Harris, A. Kattenberg, and K. Maskell, eds.
Cambridge University Press. Cambridge, UK.
Koomey, J., A. Rosenfeld, and A. Gadgil. 1990. Conservation Screening Curves to Compare Efficiency
Investments at Power Plants. Lawrence Berkeley National Laboratory. October. (LBNL-27286). Available
online at http://enduse.lbl.gov/Info/Pubs.html.
New Buildings Institute. 2003. Annual Report 2002. Available online at www.newbuildings.org/about.htm.
U.S. Department of State. 2002. U.S. Climate Action Report 2002. Washington, D.C. May. Available online
at www.epa.gov/globalwarming/publications/car/index.html.
U.S. Environmental Protection Agency (EPA). 2002. Administrator Whitman to Commend the Real Estate
Investment Industry for its Commitment to the Environment. Headquarters Press Release. December 12.
Available online at www.epa.gov/newsroom.
EPA. 2003. Inventory of Greenhouse Gas Emissions and Sinks: 1990-2001. Office of Atmospheric Programs.
April. (EPA 430-R-03-004). Available online at
www.epa.gov/globalwarming/publications/emissions/us2003/index.htm.
Webber, C.A., R.E. Brown, M. McWhinney, and J.G. Koomey. 2003. 2002 Status Report: Savings Estimates
for the ENERGY STAR® Voluntary Labeling Program (DRAFT). Lawrence Berkeley National Laboratory.
March. (LBNL-51319).
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CLIMATE PROTECTION PARTNERSHIPS DIVISION 2002 ANNUAL REPORT
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FIGURES
AND
TABLES
FIGURES AND TABLES
Figure ES-1. Division carbon reductions compared to program goals 2
Figure ES-2. Annual savings in energy use as a result of CPPD's partnership programs 4
Figure ES-3. Annual reductions in greenhouse gas emissions can be more than doubled by 2012 ... 5
Figure 4. U.S. greenhouse gas emissions by gas 6
Figure 5. U.S. greenhouse gas emissions by sector 7
Figure 6. Projected reductions in GHG emissions due to Administration Climate Policy 8
Figure 7. More than 50% of projected energy use 10 years from now will come from
equipment purchased between now and then 9
Figure 8. Partner actions are projected to maintain methane emissions below
1990 levels through 2012 25
Figure 9. Partner actions can maintain voluntary program sector emissions of high
global warming potential gases at or below 1990 levels through 2012 37
Table ES-1. Summary of the benefits for 2002 and cumulative benefits through 2012 from the
actions taken by partners through 2002 3
Table 2. Global warming potentials (GWPs) and atmospheric lifetimes of greenhouse gases .... 7
Table 3. ENERGY STAR Program: annual goals and achievements 11
Table 4. Methane Programs: annual goals and achievements 33
Table 5. Stewardship Programs: annual goals and achievements 40
45
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COMPANIES AND ORGANIZATIONS MENTIONED IN THIS REPORT
Advanced Micro Devices 23
Alcoa, Inc. 35
Aluminum Association 35,36
Alliant Energy 28
America Online, Inc. 21
American Gas Association 30
American Petroleum
Institute 29, 31
American Society for Healthcare
Engineering of the American
Hospital Association 21
Ann Arbor Energy Office 41
Arden Realty, Inc. 17
Astoria Homes 21
Australian Greenhouse
Office 38, 40
Avery County, North Carolina 27
Baxter International, Inc. 22
Blue Ridge Resource Conservation
and Development Council 27
BMW Manufacturing Corp. 28
BP 31
Building Performance Institute 15
Canadian Energy Pipeline
Association 30
Canon U.S.A., Inc. 12,21
Center for Power Efficiency
and Environmental Protection
(CenPEEP) 41
CenterPoint Energy 21
Chicago Department of
Environment 41
China National Institute of
Standardization (CNIS) 41
Cisco Systems 21
Citigroup 21
City of Arlington, TX 27
City of Chicago, IL 23
City of Chula Vista, CA 41
City of Fort Worth, TX 27
City of Seattle, WA 41
Clayton Homes, Inc. 13, 21
CNN 21
Columbia Gas and Columbia
Gulf Transmission 29, 31
Computer Associates 21
Computer Sciences
Corporation 21
Consortium for Energy
Efficiency 12
County of Alameda, CA 23
County of Loudoun, VA 21
DaimlerChrysler 28
Duke Energy Gas Transmission 30
Dutchess Community College 21
Eastman Kodak
Company 7, 11, 21
Emerald Homes 41
Energy Sense 21
EnergyXChange 27
Environment Canada 38
Food Lion, LLC 17, 21
Fox News Channel 21
FPL Group, Inc. 5
General Motors 22
Green House Network 41
Guaranteed Watt Saver
Systems - West, Inc. 21
Harvard University FAS CERP 21
Hines 17, 19, 21
Holcim (US) Inc. 22
Home & Garden Television
(HGTV) 21
IBM 22
Innovest Strategic Value
Advisors 17, 44
International Aluminum
Institute 35
International Council for
Local Environmental Initiatives
(ICLEI) 41
International Magnesium
Association 39
Japans Ministry of International
Trade and Industry 37
JELD-WEN inc. 21
John F. Kennedy School of
Government 21
Johnson & Johnson 23
Kentucky Division of
Energy 11, 21
Kinko's, Inc. 23
KLAS-TV 21
Korea Environment Institute 41
Las Vegas Breakfast Club 21
Lend Lease 18
Lennox Industries Inc. 14, 21
Lowe's Home Improvement
Warehouse 14, 15, 21
Lunt Manufacturing 39
Maytag Corporation 21
Metals, Minerals, and Materials
Society 39
Midwest Energy Efficiency
Alliance 21
Miller Brewing Company 22
Mobile Air Conditioning Society
Worldwide 39
Murphy Exploration and
Production 31
National Association of
Home Builders 13
National Mining Association 33
The National Renewable
Energy Laboratory 22
The Netherlands Reduction
Program for Non-CO2
Greenhouse Gases (ROV) 38
New Buildings Institute 17, 44
New York State Energy and
Research Development
Authority (NYSERDA) 13, 21
Norm Thompson Outfitters 22
North American Technician
Excellence (NATE) 14, 15
North Carolina Natural Gas
Company 31
Northeast Center for Social
Issue Studies in Brattleboro,
Vermont 26
Northwest Energy
Efficiency Alliance 21
Omaha Public Power
District 25, 27
Oncor Electric Delivery
Company 21
Onyx Waste Services 28
Pacific Gas and
Electric Co. 21,41
Panasonic 21
Pardee Homes 21
Pennsylvania State University 23
Phillips Petroleum Company 30
Pioneer Natural Resources 30
Pitney Bowes Inc. 21
Poudre School District 16, 21
Product Technologies 39
Raleigh County, West Virginia 26
Raytheon Company 21
RealEnergy, Inc. 24
Renovar Energy Corp. 27
Salt Lake City, UT 41
San Diego Gas and Electric 21
SC Johnson & Son, Inc. 22,41
Sears 14
Semiconductor Industry
Association (SLA) 36
Servidyne Systems, LLC 21
The Society of Automotive
Engineers (SAE) Interior
Climate Control Standards
Committee 39, 41
South Carolina Energy Office 28
South Carolina State
Association of Counties 28
South Carolina State Chamber
of Commerce 28
Southern California Edison 21
Southern California Gas Co. 21
Southern Minnesota
Municipal Power Agency 21
Southwest Gas Corporation 30
Sponsoring Organizations
ofNEEP 21
Starwood Hotels & Resorts
Worldwide, Inc. 17, 21
State of California 21
State of New Jersey 23
STMicroelectronics 37
SYLVANIA 21
Today's THV 21
The University of Michigan 24
TIAA-CREF 18
University of Pennsylvania 23
U.S. Army Corps of Engineers 13
U.S. Department of
Agriculture 34
U.S. Department of
Energy 10, 13, 15, 26, 33, 36, 44
U.S. Department of
Housing and Urban
Development 21
USAA Real Estate
Company 17, 18, 21
Waste Management, Inc. 27, 28
Watt Watchers of Texas 21
WCFN UPN 49 21
Westinghouse Lighting
Corporation 21
Wisconsin Energy
Conservation
Corporation (WECC) 13, 21
Wisconsin ENERGY STAR
Homes/Focus on Energy 21
WITN-TV 21
World Resources Institute 26
World Semiconductor
Council 36, 37
46
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Environmental Protection Agency
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September 2003
www.epa.gov/cppd
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