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

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      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.)
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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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 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.)
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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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"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.)
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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
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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.)
1 8
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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                                                                                      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
                                                                                    21

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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.
32
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

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                              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

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 "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
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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).
44
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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     oEPA

        United States
        Environmental Protection Agency
        Air and Radiation 6202J
        EPA 430-R-03-009
        www.epa.gov
        September 2003
www.epa.gov/cppd

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United States
Environmental Protection Agency
Air and Radiation (6202J)
Washington, DC 20460-0001


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