vyEPA
            United States
            Environmental Protection
            Agency
                  Air and Radiation
                  6202J
EPA 430-R-00-006
July 2000
Climate Protection Division


The Power To Make a Difference

ENERGY STAR® and Other Partnership Programs

            II
                                         1999 Annual Report

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Letter from the Administrator	    1
Profitable Opportunities To Prevent Pollution	    2
Our Changing Climate	    5
Program Achievements Through 1999	    6
1999 ENERGY STAR® Award Winners	   10
Partnership Programs	   11
     ENERGY STAR® Products	   11
     ENERGY STAR® Homes	   13
     ENERGY STAR BuildingsSM	   14
     Combined Heat and Power  	   18
     Methane Partnerships	  20
     Environmental Stewardship Partnerships	  27
2000 and Beyond 	  31
References	  32
End Notes	Inside Back Cover
For additional information, please call the toll-free
ENERGY STAR Hotline at 1-888-STAR-YES (1-888-782-7937)
or visit our web site at www.epa.gov/cpd.

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                                                                  'HE  A D M i N 1 SI R
                                                                          July 2000
Congratulations to the partners in EPA's voluntary programs to reduce greenhouse gas
emissions. These successful partnerships with EPA are delivering tremendous
environmental and economic results. They represent the very best that comes from
public-private partnerships.
What we are learning and what our partners are demonstrating is that an investment in
energy-efficient technology is an investment in our future. It is an investment in our
nation, our children, and our environment. Over the next decade alone, because of
the investments made through these partnership programs, Americans will save over
$29 billion and help reduce millions of tons of harmful pollutants, including emissions
of greenhouse gases that are threatening to alter the climate of our planet.
The average household pays about $1,300 in energy bills each year. When households
are ready to replace equipment, they can cut that bill by 30 percent if they choose
ENERGY STAR products. Those savings can make a real difference for American families.
Our environment and our economy do go hand-in-hand.
The products, buildings, homes, and schools that have earned the ENERGY STAR label
represent efficiency, cost-effectiveness,  environmental protection, and the ideal of shared
responsibility. In the new millennium, when companies seek greater cost-effectiveness and
less pollution, they can look to voluntary programs like ENERGY STAR.
On behalf of the Environmental Protection Agency, let me say how proud we are of your
accomplishments and how proud we are to be your partners.
Carol M. Browner
Administrator
U.S. Environmental Protection Agency

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Day to day, we depend on a significant source of pollution—energy. Fortunately,
technologies are now available or are becoming available that allow us to use our energy
resources more efficiently and to reduce pollution. The Climate Protection Division's
partnerships promote the use of these technologies across the US economy,  to save energy,
cut energy bills, enhance economic growth, and reduce emissions of greenhouse gases and
conventional air pollutants. Through its partnerships—ENERGY STAR®, Methane, and
Environmental Stewardship—the Climate Protection Division delivers the
technical information and tools that organizations and consumers need to
choose energy-efficient solutions and best management practices.
More than 85 percent of the energy consumed in the United States is
produced from the combustion of fossil fuels. As they burn, fossil fuels
emit pollutants such as nitrogen oxides, sulfur dioxide, and paniculate
matter. They also emit carbon dioxide (CO2)—the most abundant
greenhouse gas (see page 5). The energy used in commercial and
residential buildings accounts for approximately one-third of US
CO2 emissions. Emissions from industry and transportation each
account for another one-third (see Figure 1).
                                1, US

                         by
                         Commercial
                           Buildings
                             16%
                   Residential
                   Buildings
                      2O%
                                                                                        transportation
                                                                                             31%
As a nation, we continue to demand more energy. American families and
businesses spend nearly $600 billion each year on energy bills—more than one
and a half times what is spent on K-12 education. In our homes and buildings,
energy use has grown by 50 percent since 1970 (see Figure 2). This demand is
expected to continue growing as new buildings and homes are constructed and as
energy-consuming equipment is replaced.
Thousands of energy-consuming products are purchased every day. Unfortunately, buyers
frequently choose the least expensive and least  energy-efficient product, thereby
committing themselves to higher energy
bills for the next 10 to 20 years,  depending
on the life of the product. This happens
largely because buyers have not yet
recognized that energy savings offered by
more efficient products are an
investment opportunity worth more
than double the return on investment of
other common options, such as money
market funds or US Treasury bonds.
And the overall savings could be sizable,
up to 30 percent on our current  energy
bills for buildings and homes.
   2,,         in US
                    1970-1999
35
30
25
20  I  I I  I  I  I  I I  I  I  I  I I  I  I  I  I I  I  I  I  I  I I  I  I  I  I I  I
  •70       '75        '80       '85       '90       '95     '99
                                                                               Source: Energy Information Adminstration, 2000

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                PROFITABLE  OPPORTUNITIES  TO  PREVENT POLLUTION
Over the next decade, there is great potential for reducing energy use and greenhouse
gas emissions. More than 50 percent of projected US CO2 emissions in 2010 will result
from the energy needed to power equipment purchased between now and then. If buyers
purchase new equipment that is energy efficient, it will have a dramatic impact on the
reduction of US greenhouse gas emissions and air pollutants, while contributing to strong
economic growth.

Overcoming  Market  Barriers
Despite the financial benefits of energy-efficient technologies and practices, their
potential is not being realized because various barriers—informational, institutional, and
organizational—work against the diffusion of existing technologies and the development
of new ones. For example, because most people lack information
about which products can deliver real savings, they do not know
they can save up to 30 percent on their energy bills.
The Climate Protection Division's partnerships overcome these
barriers through a straightforward approach to market
transformation:
ERA'S partnerships
work to overcome
informational,
institutional, and
organizational
barriers.

  • Define which products and practices are efficient and cost
     effective, and set performance specifications that products
     must meet to qualify for the ENERGY STAR label
  • Motivate producers, inform consumers, and promote energy-efficient products and
     best management practices
  • Provide partners and consumers with technical assistance, tools, and reliable
     information about financing options, financial return on investment, and new
     products so they can make informed decisions
Overcoming these barriers creates incentives for manufacturers to invest in R&D for the
next generation of technologies. These new technologies will expand the potential for
future energy savings. Also,  as sales and production experience with efficient technologies
increase, the costs of production are likely to fall, reducing the cost of the technology to
the  end-user.

                                                     in potential savings
                                                     during the next decade

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   '.:!      '    'in1   i	r
By increasing the demand for, and supply of, energy-efficient technologies and practices,
the Climate Protection Division's partnerships are reducing energy waste across key
sectors of the US economy while improving the quality of life in our homes, workplaces,
and communities. The Division also identifies and addresses opportunities to prevent
emissions of other greenhouse gases that, ton-for-ton, trap more heat in the atmosphere
than does CO2 and persist for hundreds if not thousands  of years (see Table 1). For
example, the natural gas, coal mining, semiconductor manufacturing, and aluminum
smelting industries are collaborating with EPA to reduce emissions of methane,
hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), and sulfur hexafluoride (SF6).
1.
Greenhouse
Gas
Carbon Dioxide
Methane
Nitrous Oxide
Hydrofluorocarbons
Perfluorocarbons
Sulfur Hexafluoride


Global Warming Potential
for 100 Years
1
21
310
140-11,700
6,500-9,200
23,900

of
Atmospheric Lifetime
(years)
50-200
12±3
120
1.5-264
3,200-50,000
3,200
Source; IPCC 1996
1 Global warming potentials for a 100-year time period are a measure of the heat trapping capacity of a gas
as compared to carbon dioxide, as determined by the Intergovernmental Panel on Climate Change (IPCC).

By adopting existing energy-efficient technologies and practices over the next decade or
so, businesses  and individuals can achieve the following:
  • If everyone in the country bought only ENERGY STAR products during the next
     decade, the nation would slash its cumulative energy bill by more than $100 billion
     and reduce greenhouse gas (GHG)  emissions by more than 300 MMTCE.1
  • If all commercial and industrial building owners implemented the ENERGY STAR
     Buildings strategy over the next decade, they would shrink their cumulative energy
     bill by $130 billion and reduce GHG emissions by more than 350  MMTCE.
  • If companies and organizations took advantage of all the best management practices
     promoted by EPA's programs for  the more potent  greenhouse gases, they would
     reduce cumulative GHG emissions by more than 450 MMTCE over the next decade.
This report presents the environmental and economic benefits from the Climate Protection
Division's partnership programs through the end of 1999. Program achievements are
summarized in the next section, followed by program-by-program descriptions. The final
section outlines the Division's goals for 2000 and beyond.

1 Reductions in annual greenhouse gas emissions for all CPD programs, including non-CO2 gases, are expressed
in "carbon equivalents," which are determined by weighting the reductions in emissions of a gas by its global
warming potential for a 100-year time period. MMTCE stands for million metric tons of carbon equivalent.

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             1999  ENDS A CENTURY OF EVIDENCE ON
             OUR CHANGING CLIMATE
58
57.5
57
56.5
56
  I	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1
 '80  '87  '94  '01  '08  '15 '22 '29 '36 '43 'SO  '57  '64  '71  '78  '85  '92  '99
                              Source: NASA's Goddard Institute for Space Studies
                                                                         'he

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During 1999, the Climate Protection Division's partnerships broadened and strengthened
their reach as well as their environmental and economic impact as they continued to
transform the way energy-consuming products are manufactured, purchased, and used. As
a result, the Division exceeded its 1999 greenhouse gas reduction target of 21  MMTCE
and achieved total reductions of 23 MMTCE (see Figure 3).
By making cost-effective investments in energy efficiency and other environmentally
friendly practices, program partners have also locked in meaningful environmental and
economic benefits for the next 10 to  20 years. Even greater benefits are expected as EPA's
partnerships continue to grow and promote win-win solutions. The results across the
Division's partnership programs, based on actions partners have taken through the end of
1999, are summarized below.
   11 r 1 i'
            11.
.1
           1 I(
    1 Annual greenhouse gas emission reductions equivalent to eliminating the emissions
     from about 18 million cars
    I Annual reductions in emissions of nitrogen oxides (NOX) totaling over 100,000
     tons—equivalent to the annual emissions from 70 power plants (see Figure 4)
   • Continued emission reductions, from actions already
     taken by program partners, of more than 20 MMTCE
     per year through 2010
                                            3, The
                                     its
    .  .If • 
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                                                      PROGRAM ACHIEVEMENTS
                                                Figure 4. Annual reductions in SO2 and
                                                NOX emissions as a result of the Division's
                                                partnership programs
 '95     '96      '97     '98
YEARS 1995-1999           f
More than 1,200 manufacturers were
producing 7,000 ENERGY STAR labeled
product models in 31 consumer product
categories by the end of 1999.
ENERGY STAR Buildings partners-
representing  15 percent of the commercial,
public, and industrial building market—saved
more than 20 billion kWh of energy in 1999.
Over 1,000 buildings were rated using a
new  national energy performance rating
system, and 90 buildings qualified for the new
ENERGY STAR label in 1999.
Nearly 1,000 partnerships achieved
reductions of non-carbon dioxide (CO2)
gases—methane, perfluorocarbons (PFCs),
hydrofluorocarbons (HFCs), and sulfur
hexafluoride  (SF6)—totaling more than
12 MMTCE in 1999.
More than 50 outstanding organizations and
businesses across 21 states received recognition
awards from  EPA (see pp. 10, 17,  18, 21,  and 24).
Effectiveness of Partnership Programs
Each federal dollar spent on the Division's partnership programs through 1999 means:
  • Reductions in greenhouse gas emissions of more than 1.0 metric ton of carbon
     equivalent (3.7 tons of CO2)
  • Savings for partners and consumers of over $75 on their energy bills
  • The creation of more than $15 in cost-effective private sector investment
  • Net savings of over $60
In addition, the cost of these partnership programs to the government continues to be a
small portion of the total investment stimulated by the programs—around 5 percent.
                                                                              S02  »NOX
                                                                   SQUF&K fiRfl ClimstB PFBtscOon Division
                                                                 net savings
                                                            for every federal
                                                                 liar spent

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ENERGY SAVINGS  AND ENVIRONMENTAL BENEFITS
EPA's partnership programs promote money-saving investments and best management
practices that pay back year after year in lower energy bills and greater environmental
benefits. The estimated cumulative benefits through 2010 from actions taken by EPA's
partners through 1999 are presented in Table 2 for each of the key program areas.
Table 2. Summary of the cumulative benefits through 2010 from the actions taken by
partners through 1999
(in billions of 1998 dollars)
Bill Savings1
ENERGY STAR Buildings $19.8
ENERGY STAR Products $26.3
Methane Partnerships $2.9
Environmental
Stewardship Partnerships —
TOTAL $49.0

Technology2 Net Savings3
Expenditures
$7.0 $1 2.8
$0.7 $25.6
$0.9 $1.9
N/A —
$8.6 $40.4

MMTCE4
Prevented
45
60
120
80
305
 —: Not applicable
N/A: Not available
Note: Totals may not equal sum of components due to independent rounding.
1-4: See end notes for Table 2 on the inside back cover.
A few key methodological concepts and assumptions are summarized below. The
end notes to this 1999 Annual Report (see the inside back cover) provide further
documentation of the evaluation methodology and the assumptions used in measuring
the performance of these partnership programs.

          •  ,•'••

Most of the Division's programs focus on energy efficiency. For these programs, the
Division estimated the expected reduction in electricity consumption in kilowatt-hours
(kWh). Emissions prevented are calculated as the product of kWh of electricity saved
and an annual emission factor (e.g., MMTCE prevented per kWh). Other programs
focus on directly lowering greenhouse gas emissions (e.g., Natural Gas STAR, Landfill
Methane, and Coalbed Methane). These greenhouse gas emission reductions were
estimated on a project-by-project or partner-by-partner basis, using partner reports and
other market data.

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                                                     PROGRAM  ACHIEVEMENTS
This analysis includes the future benefits from efficiency improvements that current
partners have completed (or, in the case of ENERGY STAR labeled products, products that
have already been purchased) plus benefits that are due to the persistence of actions that
partners have taken, such as transforming the computer equipment market so that more
than 90% of computers are ENERGY STAR qualified. This analysis models the effect  of this
persistence by maintaining the annual energy savings and other greenhouse gas reductions
achieved in 1999 through 2010. The Landfill Methane Program is modeled using existing
projects or projects that partners have under construction.

Energy Bill Savings

Energy bill savings are calculated as the product of the kWh of energy saved and the cost
of electricity for the affected market segment (residential, commercial, or industrial) for
each year in the analysis (1991-2010).

Expenditures on Energy-Efficient Technologies

For most of its programs, the Division's estimate of expenditures on energy-efficient
technologies is based on the partners' capital cost of purchasing energy-efficient
equipment, including the cost of financing over the life of the equipment. For ENERGY
STAR labeled products, investment is the increase in cost, if any, of purchasing ENERGY
STAR products. In all cases, equipment purchases are assumed to be financed at a
7-percent real rate of interest by the private sector and a 4-percent  real rate of interest
by the public sector.

Net Savings

As described here, net savings are the difference between cumulative energy bill savings
and incremental expenditures on energy-efficiency technologies. In other words, it is the
increase in the undiscounted amount of cash that partners and buyers of ENERGY STAR
labeled products have available to invest in the economy as a result of participating in the
Division's programs.


                                                             MMTCE
                                             voided through 2010

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 !<   ';                •••  •"




Partners of the Year:

Labeling
Ricoh Corporation
Pine Brook, NJ
Appliance
Whirlpool Corporation
Benton Harbor, Ml
Home Electronics
Panasonic
Secaucus, NJ
Office Equipment
Ricoh Corporation
Pinebrook, NJ
Roof Products
National Coatings
Corporation
Camarillo, CA
National Window
Alside
Cuyahoga Falls, OH
Eastern Regional Window
Thermal Industries, Inc.
Pittsburgh, PA
Western Regional Window
Viking Industries, Inc.
Portland, OR
Retail
Sears, Roebuck and
Company
Hoffman Estates, IL

Outstanding Corporate
Commitment Award

Sun Microsystems, Inc.
Palo Alto, CA

Excellence in
Consumer Education

Northeast Energy
Efficiency Partnerships
New York State Energy
Research & Development
Authority
Ricoh Corporation
State of Wisconsin
Partners of the Year:

Corporate
Johnson & Johnson
New Brunswick, NJ
Retail
ShopKo Stores, Inc.
Green Bay, Wl
Hospitality
La Quinta Inns, Inc.
Irving, TX
Healthcare
North Memorial Health
Care
Robbinsdale, MN
Government
State of Wisconsin
Madison, Wl
Education
Sachem Central School
District
Holbrook, NY
Green Lights Corporate
Pitney Bowes,  Inc.
Stamford, CT
Commercial Real Estate
Arden Realty, Inc.
Los Angeles, CA
Commercial Real Estate
Harwood International
Dallas, TX
Honorable Mention
Hilton Hotels
Corporation
Beverly Hills, CA
Honorable Mention
Mercy Hospital of
Pittsburgh
Pittsburgh, PA

Allies of the Year:

Large
Advance Transformer Co.
Somerset, NJ
Small
Public Service  Company
of Colorado
Denver, CO
Green Lights
General Electric Lighting
Cleveland, OH
Partners of the Year:

Small Builder of the Year
Colorado Dream Homes
Pagosa Springs, CO
Medium Builder of the Year
Ence Homes
St. George, UT
Large Builder of the Year
Continental Homes
Scottsdale, AZ
Systems Builder of the Year
Bruce Davis
Homes          .'";',•
LaPlata, MD       '   '••'"' :
Allies
of the
Year:
D.R. Wastchak,
L.L.C.
Tempe, AZ
FirstEnergy Corporation
Akron, OH
Florida Power
Corporation
Winter Park, FL
Public Service Electric &
Gas Company
Newark, NJ

Special Recognition
Award Winners:
Bosshardt Realty, R&D
Division
Gainesville, FL
Habitat for Humanity
Houston, TX
Town & Home, Inc.
Simi Valley, CA

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ENERGY STAR PRODUCTS
In 2010, more than 50 percent of US carbon dioxide emissions will result from
equipment purchase decisions not yet made. Choosing to buy energy-efficient products
for use in homes and offices can have a significant effect on
protecting the environment. The ENERGY STAR label makes it easy
for consumers to identify high-quality, energy-efficient products for
their homes and offices—such as clothes washers, DVD players,
computers, and printers—that will save them money on their energy
bills and help protect the environment. The ENERGY STAR label is
managed by EPA and DOE.2
EPA and DOE have been working with partners to make the
ENERGY STAR label a household name that consumers trust to bring
them energy bill savings and environmental benefits, without
sacrificing quality or comfort. By the end of 1999:
    '. Almost 7,000 individual product models in 31 consumer
     product categories were ENERGY STAR qualified.3
"Panasonic is a big
 supporter of ENERGY STAR.
 It's created a difference
 in the marketplace.
 Consumers are starting
 to understand the
 importance of energy
 efficiency to their
 pocketbook and to the
 environment."
Dr. Paul Liao
Chief Technology Officer,
Matsushita Electric Corporation
of America
    ! Use of the ENERGY STAR products labeled by EPA prevented
     emissions of 5.7 MMTCE (see Table 3) and saved over
     $2.1 billion on energy bills in 1999 alone.
    ! Twenty-five retail partners with more than 4,600 storefronts in the United States and
     Puerto Rico agreed to promote and sell ENERGY STAR products.
   ''•':. CD players, cassette  decks, DVD players, and rack systems were added to the list of
     ENERGY STAR home electronics products. Also added were ENERGY STAR roof
     products, compact fluorescent light bulbs (CFLs), and lighting fixtures.4
   ''•':. The number of utilities  and state administrators actively promoting ENERGY STAR
     grew from 29 in 1998 to 62 in 1999, servicing more than 60 million households
     across the nation.
   • ENERGY STAR, the  national symbol for energy efficiency,  is now recognized by
     30 percent of the American public, with  the cumulative  number of impressions of
     public service announcements (PSAs) and other promotions growing to 2.5 billion.
     Efforts by Panasonic, Ricoh Corporation, and other ENERGY STAR partners
     contributed to this impressive total.
2 The ENERGY STAR label has been jointly managed by EPA and DOE since 1996.
3 Of the 31 product categories, EPA has labeled 25 and DOE has labeled 6.
4 DOE labeled CFLs in 1999.

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In 2000, EPA, in conjunction with DOE, will continue to build ENERGY STAR as a
trustworthy symbol that consumers can rely on for energy bill savings and reduced air
pollution. In 2000, EPA will:
  • Introduce 6 new ENERGY STAR qualified products into the marketplace—including
     set-top boxes, ventilation fans, traffic signals, and water coolers—bringing the total
     to 37 product areas
  • Raise ENERGY STAR label awareness levels to 35 percent of the US adult population
     through consumer education
  • Reach agreement with Canada and the European Union to extend the ENERGY STAR
     program to them
  • Develop a range of new program tools and resources that clearly present the
     economic and environmental benefits of particular energy-efficient products, such as
     energy-efficient lighting, heating, and cooling systems
3. ENERGY
Product Energy Saved (billions kWh) Emissions Prevented (MMTCE)
Computers
Monitors
Printers
Copiers
Other Office Products
Exit Signs
Residential Fixtures
Home Electronics
Other Products
1999 TOTAL
1999 GOAL
2000 GOAL
2.7
12.5
4.2
0.9
3.6
2.2
2.0
0.9
0.2
29.1
23.3
34.9
0.5
2.5
0.9
0.2
0.6
0.4
0.4
0.2
<0.1
5.7
4.8
7.3
Note: Totals may not equal sum of components due to independent rounding.
            ENERGY STAR products purchased to date

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ENERGY STAR HOMES
New homes that bear the ENERGY STAR label incorporate features such as improved
insulation, tightly sealed construction, sealed ducts, high-performance windows, and
high-efficiency heating and cooling equipment. These homes are
generally 30 percent more energy efficient than the Model
Energy Code. This results in lower ownership costs compared to
standard code homes because savings from improved energy
measures exceed the increase in monthly mortgage costs of
buying an ENERGY STAR home. Better performance is an added
dividend because greater efficiency delivers improved comfort,
quieter operation, reduced maintenance, and improved indoor
air quality.
As a result, everyone wins. Builders increase profitability
through increased revenues, greater customer satisfaction, and
reduced liability. Home buyers enjoy a better home for less cost
over the long term. And the environment  is polluted less
because of lower energy consumption.
    ! Over 8,000 new homes qualified as ENERGY STAR, an
     increase of more than 50 percent over 1998.

    ! The 15,000 ENERGY STAR labeled homes average over
     35 percent energy-use reductions, saving owners an
     estimated $5 million annually.
"Newmark Homes joined
 the ENERGY STAR Homes
 Program because, like
 our consumers, we feel
 that energy efficiency is
 important. We wanted
 our energy-efficiency
 program to be...several
 notches above our
 competitors, and being
 an ENERGY STAR Builder
 guarantees that goal."

Mike Beckett
Senior Vice President,
Newmark Homes
    i The threshold of 1,000 builder partners was crossed.

   •-  More than 800 industry allies, including approximately 40 utilities, have signed
     agreements to promote ENERGY STAR Homes.

   • , The manufactured housing sector, representing about 30 percent of all new housing,
     began participating in the program.

     The ENERGY STAR Homes web site now makes it easier for consumers to identify
     builders offering ENERGY STAR Homes and for industry partners to access marketing
     support for energy-efficient housing.

     A new CD Toolkit (replacing the hard-copy package)  provides marketing solutions
     for builder and industry partners.

     Automated qualification has eased submittal requirements and substantially reduced
     processing costs.
The strategy for 2000 will focus on establishing buyer recognition for the ENERGY STAR
label in at least three major markets so that builders see more consumers recognizing and
asking for the benefits of ENERGY STAR qualified homes. The program is expected to grow
by more than 50 percent in 2000, leading to approximately 12,000 new qualified homes.

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        ENERGY STAR BUILDINGS
       Many commercial buildings could effectively operate with 30 percent less energy if
       owners made investments in energy-efficient products, technologies, and best
                               management practices. These high-return, low-risk investments
                               can substantially reduce greenhouse gas emissions throughout
                               the buildings sector.
                               ENERGY STAR collaborates with a wide range of building
                               owners and users—retailers, healthcare organizations, real
                               estate investors, state and local governments, schools and
                               universities, and small businesses. Each partner commits to
                               improving the energy performance of its organization and uses
                               the performance metrics and tools provided by ENERGY STAR
                               to achieve significant savings in both dollars and air pollution.
"Prentiss Properties is
 100% behind the ENERGY
 STAR label for office
 buildings. Earning the
 ENERGY STAR for our
 buildings helps improve
 the environment and
 saves dollars for our
 owners, shareholders,
 and building tenants all
 in the same stroke. It's a
 win-win for everyone."

Joseph S. Summers, III,
 Vice President, National
 Operations, Prentiss Property
 Services AMO
                                                                            5,
                                                                                        by
                                                                         Small
                                                                       Business
                        1999 was a pivotal year for ENERGY STAR. EPA introduced a
                        new performance rating system for commercial buildings that
                        allows the most efficient buildings across the country to be
                        awarded the ENERGY STAR label. This innovation in the
                        commercial marketplace has motivated new sectors to capture
                        the environmental and financial value of improved energy
                        performance. It answers many
                        questions partners have asked over
                        the years, such as "How does my
building compare to others like mine?" and "Have my building
upgrades proven effective?" As these questions can now be
answered for the first time, this system promises to be both an
important new motivator for efficiency improvements in the
nation's buildings and an effective means of monitoring progress
in such improvements.
By the end of 1999:
  • More than 5,500 organizations have partnered with EPA to
     improve their energy performance, committing over 10
     billion square feet or 15 percent of the total commercial,
     public, and industrial building market (see Figure 5).
  • Partners saved 22 billion kWh of energy, reduced energy bills by
     $1.6  billion, and prevented emissions of 4.5 MMTCE in 1999 alone
     (see Figure 6 and Table 4).
  *"~. Cumulative investments in energy-efficient technologies totaled more than
     $3.6  billion.
  H Energy investments made by partners added $2.5 billion to the net worth of
     US businesses.
                                                                                            Corporate
                                                                                               19% : ,fl.
                                                                                                   Providers
                                                                                       Public
                                                                                        14%

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                                                                             ENERGY STAR  BUILDINGS
"f
                  • More than 1,000 buildings were
                     benchmarked using the new performance
                     rating system, and 90 were awarded the
                     ENERGY STAR label.
                  • Approximately 1.6 billion square feet of
                     investor-owned office properties joined
                     ENERGY STAR, representing over
                     70 percent of the office properties market.
                  • Strong partnerships with the Real Estate
                     Roundtable, whose members are senior
                     principals from the commercial real estate
                     industry, and the National Association of
                     Real Estate Investment Trusts are bringing
                     the value of improved energy performance
                     to over 2,000 members.

                What's Ahead
                                               Figure 6. Cost savings for ENERGY STAR Buildings
                                               partners climbed 85% in 1999
                                                                           Some: EPA Climate PmtectionDMsia,
In 2000, EPA will continue to expand the national building performance rating system
and to promote the link between energy performance and financial and environmental
performance to partners across all sectors.
   • Energy performance rating systems will become available for new building space
     types during 2000, expanding the national rating scale to include K-12 schools and
     retail establishments.
   • The benchmarking tool will be enhanced to allow organizations to set goals and
     targets, as well as to track the energy use and performance of a portfolio of buildings
     or facilities.
   • New financial benchmarks will allow organizations to determine their energy
     performance relative to similar organizations and to isolate the effects of energy
     investments on overall financial performance.
Table 4. ENERGY

1999 TOTAL
1999 GOAL
2000 GOAL
STAR Buildings: annual goals and
Energy Saved (billion kWh)
22.0
18.5
25.4
achievements
Emissions Prevented
4.5
3.9
5.5

(MMTCE)





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CLIMATE  PROTECTION DIVISION  1999  ANNUAL REPORT
        In June 1999, at the National Press Club in Washington, DC, EPA Administrator Carol
        Browner and DOE Secretary Bill Richardson announced the first 20 buildings to receive
        the ENERGY STAR label:

          One State Street, Hartford, CT - owned by Mines

          20 Commerce Drive, Cranford, NJ - owned by Mack-Cali Realty
          Corporation

         'Two Twenty Two Berkeley, Boston, MA - owned by Mines

          1811 Bering Office Building, Houston, TX - owned by Tarantino
          Properties, Inc.

          2000 Bering Office Building, Houston, TX - owned by Tarantino
          Properties, Inc.

          2800 28th Street, Santa Monica, CA - owned by Arden
          Realty, Inc.

        "6310 San Vicente, Los Angeles, CA - owned by Douglas, Emmett & Company as Agents

        * Centrex Building, Dallas, TX - owned by Harwood Pacific Corporation

          Denver Place, Denver, CO - owned by Amerimar Realty Management Co.

        * Emigrant Savings Bank, New York, NY - owned by Emigrant Savings Bank

          Foley Square Office Building, New York, NY - owned by the General Services Administration

          Frank J. Lausche State Office Building, Cleveland, Ohio - owned by the State of Ohio

        * International Finance Corporation Building, Washington, DC - owned by the World Bank

          Landmark II, Los Angeles, CA - owned by Douglas, Emmett & Company as Agents

          Lockheed Martin Headquarters, Orlando, FL - owned by Lockheed Martin Corporation

          Manville Plaza,  Denver, CO - owned by The Prudential Insurance Company of America

        * Occidental Chemical Center, Niagara Falls, NY - owned by Occidental Incorporated

          Perimeter Center South, Atlanta, GA - owned by Equity Office Properties

          Plaza Tower, Denver, CO - owned by Amerimar Realty Management Co.

          Ridgehaven Green Building, San Diego, CA - owned by the City of San Diego
                   ENERGY STAR office buildings labeled
                   in the first year


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ENERGY, ENVIRONMENTAL, AND  FINANCIAL LEADERS
        S. Johnson (J&J)         an              in ENERGY           1991.
The                       long-term           to                          is
evident through the direct link it makes between the corporate credo and the
principles of ENERGY STAR, Organizations as diverse     decentralized as J&J face
                                  office         to           a
                capital        or       control     affiliates,        J&J's
sustained success is corporate support and special recognition for its regional
teams. By including    ENERGY STAR philosophy in company-wide     practices,
    has          its        goals,                 $10
7O       of Its
In 199O, Governor Tommy Thompson                                   to
                              of state-owned         Shortly afterwards,
state signed up over 53 million square feet of building space for EPA's Green
Lights*1', In 1998, after successfully completing lighting upgrades in all of its
facilities,                                              to
                       .As a result,                   $7.5 million a year
prevents substantial greenhouse     emissions. Wisconsin    played a leadership
                    role in improving the energy performance of organizations
                                               across
                    energy-efficiency                          for
                    the state has      commended by    for Its consumer
                    education campaign.
                1
                    In 1999,
                    third-largest school system in      York, became the first
                                 in            only to
                           its       STAR
1,3 million square feet in 18 months, reducing energy costs by $500,000 per year,
Sachem improved the fighting systems and motors, and installed new boilers     a
                            Tlie school                   Ms
     students and staff, raising awareness of energy's     to
protection. In a ceremony attracting local      media, an elementary school
participated in a  1999 Earth Day event that featured the benefits of Sachem's
ENERGY STAR

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CLIMATE  PROTECTION  DIVISION  1999  ANNUAL  REPORT
        COMBINED HEAT AND POWER (CHP)
        In 1999, EPA and DOE worked together toward the Administration's goal of doubling US
        combined heart and power (CHP) capacity by 2010 (an increase of 50 gigawatts). Because
        CHP uses significantly less fuel than traditional power generation, associated emissions of
        greenhouse gases and air pollutants are lower. By substituting the targeted 50 gigawatts of
        CHP capacity for conventional capacity, annual  greenhouse gas emissions would be
        reduced by 30 MMTCE and annual NOX emissions by hundreds of thousands of tons.
        Recent analyses indicate that this goal can be achieved by removing obstacles in air
        regulations, electric utility restructuring, and tax policy.

        1999 Accomplishments

        EPAs activities in 1999  focused on identifying specific actions to overcome air regulation
        obstacles. For example,  EPA began supporting the development of output-based
        approaches for setting air emissions standards and allocations under pollutant
        trading programs.

        What's Ahead
        EPA is providing support to clarify existing policies and develop guidance affecting the
        treatment of CHP projects under EPAs New Source Review program. EPA will continue to
        explore other barriers that slow individual industry investments in CHP projects and will
        identify viable approaches to overcoming these barriers.
        1999  CHP AWARD WINNERS
        EPA and DOE have developed an award program for
        CHP projects that meet certain performance criteria.

        The first ENERGY STAR award
        winners were:
        Dow Chemical Company
        Texas Operations
        Freeport, TX
        Louisiana State University and
        Sempra Energy Services
        Houston, TX
        Trigen Energy Corporation
        White Plains, NY
        for projects in Oklahoma City, Tulsa, Chicago,
        Trenton, and Philadelphia
The first certificate winners were:

All Systems Cogeneration
Bayshore, NY
Milden Mills
Lawrence, MA
Rutgers University
Piscataway, NJ
University of North Carolina
Chapel Hill, NC
18

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IMPROVING AIR  QUALITY THROUGH
ENERGY-EFFICIENCY MEASURES
 ii 1099,                                       fo             ill
          of    air              of         energy-efficiency
energy actions. Tfte guidance provides information on how          states that
participate in    WOX State Implementation Plan (SIP) budget trading program
                                 a          of          for
  •  -  •    >'.   ''.   .     i-mes of guidance are expected to be published in 2OOO.
                                               of
                       •nef"eased flexibility for meeting the Clean Air Act
                                       Jir
                       also                   of
                            reradiate it as infrared radiation that heats    ait:
Consequently, urban areas can be several                       surrounding
                                           for              to
£-         ,  -ie                                                 of
c  '  •    v  ' -  iy can                         during summer months,     lias
             .*E,          five
     .. .  >•     ,                                 C/ly—fo      fn e>
        - ' -  -'. ng
     •' • •• •                      Tlie     Is
      "  .     a of more         roofs and
      ;-•*>   '       of                fo
     ei/apofr'anspfraifon
Among other efforts,     Is contributing to             of           of
island mitigation          on    urban fabric, on the resulting temperature and
meteorological changes., and on       energy     emission reductions. This work
        lay               for         by         local

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?,                                   ;,,vv.:
    to            i?»* '•»«"» "i *>           ' ,"(>
        »•! II  '
Methane is the most common non-CO2 greenhouse gas, 21 times more potent than
carbon dioxide. If captured, methane is also a source of energy. EPA's Methane
Partnerships help US industries and state and local governments reduce methane
emissions from their operations. Methane
partnerships include the Landfill Methane Outreach
Program, Natural Gas STAR, and the Coalbed
Methane Outreach Program. All follow a common
approach, which is to provide sound technical,
economic, and regulatory information on emission-
reduction technologies and practices, as well as tools
to facilitate implementation of methane-reduction
opportunities. Partners profit from their
involvement in these programs by making their
operations more efficient and their businesses more
competitive. In addition, EPA provides information
and tools to the agricultural community to encourage
methane reductions.
These programs, in  concert with a recent regulatory
program to limit air emissions from the nation's largest landfills, are expected to reduce
national methane emissions substantially  below  1990 levels by 2000  and to maintain
methane emissions at or below 1990 levels through 2010 (see Figure 7).


LANDFILL METHANE OUTREACH  PROGRAM
    ,'','  —*  " -.  The Landfill Methane Outreach Program (LMOP) promotes the
   •	'-  "!   . - r_^_    recovery and use of landfill gas as an energy resource. Landfill gas
•"••-        •    "  '   can be converted and used in many ways:  to generate electricity, to
1   •- ™™    	                                         /    /     O               / *
   ;Z.1_    .          fuel boilers or vehicles, or to power fuel cells. It can be upgraded
                      and injected into natural gas pipelines, or  used in a niche
mi  \\ in  I mi  "ijiii"' ""  ?. ' "        ;               .
* *'.«;/,  ,i•  ;• „•' • i"!"- •."   application such as providing power for a greenhouse. By forming
                      partnerships with  communities, landfill owners, utilities and
power marketers,  states, and the landfill gas industry, LMOP helps partners assess project
feasibility, find financing, and market the benefits of landfill gas to the community.
Landfill  gas utilization projects go hand-in-hand with community commitments to cleaner
air, improved public welfare and safety, and reduced greenhouse gas emissions.
In an effort to realize greater methane reductions, LMOP restructured its program in
1998 to focus on assisting project development at individual landfill sites. The new
strategy included  expanded outreach to municipally owned and smaller landfill sites. In
1999, LMOP developed and offered a portfolio of technical assistance tools to help
projects at these landfills overcome recurring development barriers.

-------
     Partners achieved methane emission reductions of 2.0 MMTCE (see Table 5, p. 26).
     LMOP assisted in the development of 40 landfill gas utilization projects. Over 60
     projects  under construction are expected to be online soon, and more than 100
     projects  are being planned.
     LMOP provided more than 140 landfills with technical and marketing support,
     including feasibility studies, end-user identification, green power marketing training
     sessions, permitting assistance, and regulatory analyses.
    I More than 20 new allies joined, bringing the total number of LMOP allies
     to over 200.
     Ninety percent of the entities reporting methane emission reductions from landfills
     to the DOE 1605b program referenced their association with EPA's LMOP.
The Landfill Methane Outreach Program plans to work with existing landfill gas
utilization projects to maximize emission reductions while improving gas collection,
utilization, and profits. LMOP will also implement a program to streamline ally and
partner reporting and verification of emission reductions. And, as green power and
renewable energy opportunities grow across the country, LMOP will work with its allies
and partners to make sure that landfill gas is part of the green power mix.
 1999 LMOP AWARD WINNERS
 Partner of the Year:
 Blue Ridge Resource Conservation & Development Council, Inc.
 Boone, NC
 Energy Ally of the Year:
 American Municipal Power - Ohio, Inc.
 Columbus, OH
                                                      1999  Project
                                                      of the 'Year
State Ally of the Year:
Delaware Solid Waste Authority
Dover, DE
Industry Allies of the Year:
Waste Management, Inc.
Austin, TX
Enerdyne Power Systems, Inc.
Charlotte, NC
Projects of the Year:
County of Sacramento CA
for its Keifer Landfill Gas to Energy Project with the Sacramento Municipal Utility District (SMUD)
Toro Energy, Inc.
Austin, TX
for the Eagle Valley-Oakland Landfill Gas Project with General Motors in Orion, Ml

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CLIMATE PROTECTION DIVISION 1999  ANNUAL REPORT
       CAPTURING METHANE To POWER OFFICES, HOMES,
       AND FACTORIES

       Green Power from Landfill Gas
       The Sacramento Municipal Utility District (SMUD) offers its customers a green
       power option called Greenergy, which uses 100-percent landfill gas-generated
       electricity as its source of environmentally friendly power. While SMUD understood
       the environmental benefits of generating power with landfill
       gas, it was not sure how its customers would react. To find
       out, SMUD formed a partnership with EPA's Landfill
       Methane Outreach Program to investigate public reaction
       to landfill gas-generated green power. Together, LMOP and
       SMUD convened a series of focus groups, which concluded
       that customers liked the idea of using energy from landfill
       gas once they understood the benefits. Fittingly, an EPA
       research facility in the region contracted with SMUD for
       100-percent renewable energy—the first federal facility to
       use landfill gas as a green power source.
      Reducing Emissions From More Than Just Cars
      Two landfills supply the General Motors Corporation Lake
      Orion Assembly plant with renewable landfill gas for use in
      its boilers. Because the boilers had been coal fired before
      they were converted to use landfill gas, the project reduces
      emissions from the factory as well as the two landfills.
      Using the landfill gas has prevented the emission of about 60,000 metric tons of
      carbon equivalent—the equivalent of planting 61,500 acres of trees.
The Power of
PARTNERSHIPS
Strategies for Successful
LFGTE Project Development
                LMOP-assistedprojects in 1999
22

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NATURAL GAS STAR PROGRAM
                   Natural Gas STAR works with natural gas companies to reduce
            " v   '   ,  methane emissions from all segments of the US natural gas
              i      system. The program's more than 70 corporate partners voluntarily
          ••  •'   . *•'   agree to assess the applicability within their systems of a suite of
                    best management practices (BMPs)  for
reducing methane emissions. EPA provides partners with
technical and economic information on the program's BMPs
and on more than 50 additional gas-saving practices that
partners have reported.
                                                             "The Natural Gas STAR
                                                             Program is an excellent
   «£ Partner companies increased from 64 to 72. They represent
     68 percent of transmission mileage, 45 percent of service
     connections, and 38 percent of production (see Table 5, p. 26).
     Natural Gas STAR successfully launched its expansion
     into the gas processing sector, receiving a key endorsement
     from the Gas Processors Association and establishing
     partnerships with two gas processing companies. EPA
     estimates that 20 billion to 25 billion cubic feet (Bcf) of
     methane emissions from the gas gathering and processing
     sector can be avoided cost effectively.
                                                             and successful model of
                                                             agency and industry
                                                             cooperation.  It provides
                                                             an effective venue for
                                                             sharing information...
                                                             in efforts to reduce
                                                             greenhouse gas
                                                             emissions in the natural
                                                             gas industry. "
                                                             Peter Zwart, San Juan Basin
                                                             Asset Manager, BP Amoco
'!"• Partner companies are expected to report methane
  emissions reductions of 31 Bcf for 1999, or 3.4 MMTCE.5
  That would bring Natural Gas STAR's cumulative methane emissions reductions to
  approximately 110 Bcf or 12 MMTCE, worth more than $200 million.

   's
Natural Gas STAR will continue to work with the natural gas industry, promoting best
management practices and developing and sharing industry success stories. As its outreach
to the gas processing sector increases, Natural Gas STAR in conjunction with partner
companies will develop best management practices, outreach materials, case studies, and
technical support tools for the processing sector. Natural Gas STAR also plans to work
more closely with partner companies to ensure they are reporting all the emissions
reductions they have achieved.
5 1999 reports from Gas STAR Partners come into EPA in mid-2000.

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    1IVI
     P R O T E C T I O N  D I VI S1 O i
1 9 9 9
I UAL
          NATURAL  GAS  STAR  PARTNERS OF  THE YEAR
                    U.S.A.                                                  the
                                      of                    for
                                                            in
                                             to      STAR                                   an
                       in                     STAR
                                                    a
                             in
                    nearly 2      in              in
                                                      To showcase the methane reduction efforts of
                                                      Natural Gas  STAR partners and promote Natural
                                                      Gas STAR, this PSA appeared pro bono in the
                                                      December 1999 issue of Pipeline &  Gas Industry
                                                      and in the March 2000  issue of American Gas.
                                emission
         to 9,O      for
                            
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COALBED  METHANE OUTREACH PROGRAM
      ,,".''  " • •'    The Coalbed Methane Outreach Program (CMOP) reduces methane
,  r        •}, ' .. •'   emissions from underground coal mines by collaborating with large
5 ",'•   "    ',,''•• \   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 projects. Outreach efforts focus on providing high-quality, project-specific
information. For example, in 1999 CMOP identified a promising gassy coal mine site
that could sell its  methane to a nearby coal-fired power plant. After CMOP performed
an initial analysis  and presented the results to the two parties, they began negotiations
to develop a project that would completely offset the power plant's total greenhouse
gas emissions.
     CMOP provided project development support at more than 20 project sites,
     including facilitating 3 new projects (see Table 5).
   II Partners increased the quantity of methane recovered to nearly 18 Bcf or
     2.0 MMTCE, which is equivalent to eliminating the emissions from about
     1.5 million cars per year.
   If Nearly $50 million in direct gas sales were generated  in 1999.
CMOP has exceeded its goals by aggressively working with mine operators to find
markets for the methane drained in conjunction with mining. Since 1990 the proportion
of gas recovered has tripled, while the quantity drained has remained constant. The
drained gas that is not being used (about 10 Bcf) is typically of lower quality and
unlikely to be economical to gather and sell. Meanwhile, approximately 100 Bcf of gas
vents to the atmosphere through ventilation shafts. This gas is typically less than one
percent methane.
CMOP will work to demonstrate and commercialize technologies that enable coal mine
operators to flare the lower quality drained gas and to combust and put to use the heat
output of ventilation air. Applying this strategy, it is technically possible for the majority of
methane emissions from coal mines to be mitigated over the next decade.

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AGRICULTURE-BASED PROGRAMS
As joint EPA-U.S. Department of Agriculture efforts, the Agriculture-Based Programs
work with US swine and cattle producers to improve livestock efficiency and encourage
development of waste management systems that produce farm revenues and reduce water
and air pollution. EPA provides technical information and tools to aid in the assessment
and implementation of the projects.
    ' Provided technical information and tools to more than 500 farms to encourage the
     capture of methane from animal waste to provide energy for the farm and local
     community. One of these farms, in North Carolina, received the 1999 National
     Pork Producers Council Environmental Stewardship Award for installing a covered
     lagoon digester. This digester reduces emissions of air and water pollutants,
     including pathogens, by up to 90 percent.
   • Encouraged the establishment of 48 demonstration farms throughout the southeast,
     showcasing management practices that improve livestock production efficiency while
     reducing greenhouse gas emissions. The farms served as a focal point for more
     than 60  workshops, field days, pasture walks, and  training sessions attended by
     approximately 4,800 people. One of these farms received the 1999 Conservation
     Stewardship Award from the Georgia Cattlemen's Association.
    i EPA will continue to refine its technical information and tools to encourage
     reduction of methane emissions from agriculture.
    I With increased focus on the overall environmental impacts of confined animal
     feeding operations, including air and water emissions, EPAs agriculture-based
     programs will work to ensure that farmers have the best information and choices for
     achieving environmental objectives.
1999 Goal 1999 Achievement
LMOP
Number of Projects
Annual Methane Reduction (MMTCE)
Natural Gas STAR1
Transmission Pipeline Miles (% in program)
Distribution Pipeline Miles (% in program)
Natural Gas Production (% in program)
Annual Gas Savings (MMTCE)2
CMOP
Number of Projects
Annual Methane Reduction (MMTCE)
TOTAL Methane Reduction (MMTCE)

45
1.2

85%
85%
70%
3.9

21
1.7
6.8

111
2.0

68%
45%
38%
3.4

21
2.0
7.4
2000 Goal

193
3.5

85%
50%
55%
4.2

25
2.0
9.7
1 1999 achievements are estimates. Final figures are not yet available.
2 Includes both CCAP program and base reductions
Note: Totals may not equal sum of components due to independent rounding.

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EPA's environmental stewardship partnerships work with various industries to reduce,
through cost-effective improvements in processes, emissions of greenhouse gases that have
high global warming potential (GWP). Perfluorocarbons (PFCs), hydrofiuorocarbons
(HFCs), and sulfur hexafluoride (SF6) are
particularly potent and long lived. When
compared ton-for-ton with CO2, they trap
much more heat in the atmosphere. In
1999, industrial partners prevented
emissions of 5.3 MMTCE (see Table  6,
p. 30).  Despite the potential for high
growth in greenhouse gas emissions, these
partnerships are expected to reduce
emissions below 1990 levels by the year
2005 and beyond (see Figure 8).
40
30
10
THE VOLUNTARY ALUMINUM
INDUSTRIAL PARTNERSHIP
(VAIP)
                                              '90        '95
                                                                            '05
                                                                                     '10
                         Source; EM Climate Pmtection Dmsim
                             VAIP is a joint effort between EPA and the domestic
    ,,',<; ••    .                  aluminum industry to reduce PFC emissions while
    '•"<•••   '                 "    increasing the efficiency of primary aluminum
                              production. Partners tailor the program to their mix
                              of technology, management structure, and
                              operational practices. Partner actions to reduce anode
effects and emissions include improved employee training, changes in alumina feed
techniques, and use of computer monitoring to optimize pot performance.
   .  By the end of 1999, partners included 11 of the nation's 12 primary aluminum
     producers, representing 22 smelters and 94 percent of US production capacity.
     In 1999 partners reduced emissions by 2.4 MMTCE.
During the year, VAIP focused on improving the understanding of the relationship
between smelter operating parameters and PFC emissions, completing its second round of
PFC measurements at six smelters. VAIP partners have committed to  reducing PFC
emissions by 45 percent from 1990 levels by 2000.

HFC-23  EMISSION REDUCTION PROGRAM
The HFC-23 Emission Reduction Program aims to reduce emissions  of HFC-23, which
is a by-product of HCFC-22 production. EPA works with all four of the US HCFC-22
producers. In 1999, manufacturing partners used process optimization and emissions
abatement to reduce emissions of this highly potent greenhouse gas by 2.7 MMTCE.
Also in 1999, the Intergovernmental Panel on Climate Change updated its global
estimation methods using measurement analysis developed through this US partnership.

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THE PFC  EMISSION REDUCTION PARTNERSHIP  FOR THE
SEMICONDUCTOR  INDUSTRY
  ..••"''     •     The PFC Emission Reduction Partnership for the Semiconductor
                 Industry in collaboration with the World Semiconductor Council is
   .- '.     ..-.' - ,    breaking new ground on environmental protection by working with
               -  governments to develop and implement a voluntary global emission
                 reduction strategy. The US Partnership was a catalyst for companies
                 in Europe, Japan, Korea, Taiwan, and the United States to join
            together in 1999 to set the first and only global emission reduction target;
participating countries will reduce PFC emissions at least 10 percent below 1995 levels by
2010. Due to the highly global nature of this industry, an industry-wide strategy that
includes chemical and equipment manufacturers will result in greater environmental
protection at lower overall cost.

SF6 EMISSION  REDUCTION  PARTNERSHIP FOR  ELECTRIC
POWER  SYSTEMS
$)}•".'ty&
•C ,'\r. ;•/" ..--••
                       SF6 is a gaseous dielectric used by the electric power industry
                       in circuit breakers, gas-insulated substations, and switchgear.
                       The SF6 Emission Reduction Partnership for Electric Power
                       Systems is a new partnership program between EPA and
                       electric power suppliers. Created in 1998, by the end of 1999
                       the partnership had 57 partners who represented about 25
                       percent of the domestic power supply industry.
The partnership identifies and encourages adoption of best management practices for
reducing emissions of SF6 from electric transmission and distribution systems. This will
benefit the environment and the partners' bottom line. SF6 is a relatively expensive gas;
therefore, reducing emissions saves money. During 1999, partners focused on establishing
baseline emission estimates.


SF6 EMISSION REDUCTION  PARTNERSHIP FOR THE
MAGNESIUM INDUSTRY
 J, '<      i ., "'^            The SF6 Emission Reduction Partnership for the
 '- '   '„./'"•  ,    '•;• f.   Magnesium Industry is a new collaboration between EPA
      " - ,   ;  ,L    . ."   and the magnesium industry. The partnership will identify
                  • .   and promote adoption of best management practices for
   ,      ,               reducing SF6 emissions from magnesium smelting and
 Partnership fertile Magnesium indusny   casting processes. This program began in  1998, and partners
already represent 60 percent of US emissions from this industry. During 1999, partners
focused on establishing baseline emission estimates.

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SOCIETY OF AUTOMOTIVE ENGINEERS  MOBILE AIR
CONDITIONING CLIMATE PROTECTION PARTNERSHIP
The Society of Automotive Engineers (SAE), the Mobile Air Conditioning Society
Worldwide (MACS), and EPA have organized a global voluntary partnership to promote
improved air conditioning systems and service.
As part of the Montreal Protocol for the Protection of the Ozone Layer, new vehicles
worldwide have been redesigned to use HFC-134a refrigerants rather than CFC-12 in air
conditioning systems. 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 became
the global choice because the non-flammable, low-toxicity gas has no ozone-depleting
potential, has six times less global warming potential than CFC-12, and has cooling
capacity and energy efficiency that can be made comparable to CFC-12. HFC-134a has
far less impact on the climate than the CFC-12 it replaced. However, its global warming
potential is still high, and it is among the greenhouse gases whose emissions are listed
under the Kyoto Protocol.
The choice of measures to improve the environmental performance of vehicle air conditioning
systems is complicated because both refrigerant and fuel consumption must be considered
over the life of the vehicle.  In addition, customers demand reliable and affordable
equipment, and new systems may require special safety features and technician training.
The partnership has three goals:
   ',. Promote cost-effective designs and improved service procedures to minimize
     emissions from HFC-134a systems
   "-.' Cooperate on development and testing of next-generation mobile air conditioning
     systems that satisfy customer requirements and environmental, safety, cost, and
     reliability concerns
   "-.' Communicate technical progress to policy makers and the public
     The Voluntary Industrial Aluminum Partnership will promote information
     sharing through expanded analysis of data from the 1999 series of PFC
     measurements at US smelters. Together, EPA and the partners will identify
     opportunities for emission reductions beyond the 2000 goal. They also will
     organize an International Aluminum PFC Emissions Reduction Workshop.

     The Semiconductor Partnership will expand testing of emission reduction
     technologies across different products and processes, complete a set of international
     emission measurement methods, and collaborate with other governments.

     The SF6 Emission Reduction Partnership for Electric Power Systems will establish
     emission reduction goals reflecting technologically and economically feasible
     opportunities for individual companies; establish a strategy to replace older, leakier
     pieces of equipment; establish and apply proper handling methods; and submit
     annual emissions data to EPA.

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  IS The HFC-23 Emission Reduction Program will evaluate the technical and economic

     feasibility of further emission reductions through destruction and other innovative

     technologies.

  IS The Magnesium Partnership will evaluate the technical and economic feasibility of

     various emission control technologies and identify and implement good handling

     procedures. EPA will co-sponsor, along with the Australian Greenhouse Office, an

     international technical conference on SF6 emission reduction strategies for the

     magnesium and electric power industries.
       6,


                                   1999 Goal   1999 Achievement     2000 Goal
 TOTAL Greenhouse Gas Reductions (MMTCE)  5.7
                                                      5.3
                                                                     8.2
INTERNATIONAL  CLIMATE PROTECTION AWARDS

In                      the

to

                           in

climate,                      to

organizations,

                 to




fn                                to
                      France,
The Polyisocyanurate Insulation
Manufacturers Association (PIMA)
Dr. Rosina M. Bierbaum
Dr. Mack McFarland
Eugene L. Smithart
Annapolis Detachment of the
Carderock Division, Naval Surface
Warfare Center
Annapolis, MD

Applied Materials
Santa Clara, CA

Motorola, Inc.
Schaumberg, IL

Nissan North America, Inc.
Gardena, CA

STMicroelectronics
St. Genis, France
Geneva, Switzerland

Texas Industries, Inc. (TXI)
Dallas, TX

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                                                                 2000  AND BEYOND
2000  and  Beyond
Partnership programs continue to be a powerful means for reducing emissions of
important air pollutants across the country, while saving businesses, organizations, and
consumers money on their energy bills. Over the next several years, EPA expects these
partnerships to continue reducing local and global air pollution, while delivering savings
for all. EPA plans to:
  • Add additional products to the ENERGY STAR family
  • Build public awareness of ENERGY STAR to 50 percent by the end of 2001
  • Educate consumers and homeowners that ENERGY STAR products can reduce their
     annual home energy bills by about 30 percent, or $400
  • Expand the national energy performance rating system and ENERGY STAR label to
     more building types, including schools,  retail, health care, and lodging
  • Build more partnerships with more businesses and organizations, including small
     businesses, state and local governments, and school systems
  • Nearly double the cost-effective reductions of non-carbon dioxide greenhouse
     gases by 2005
These efforts will add to the reductions in greenhouse gas emissions these partnerships
have already achieved (see Figure 9). While the partnerships will already deliver more
than 300 MMTCE cumulatively by 2010 (see Table 2, p. 8), there remains tremendous
opportunity to identify and reduce emissions through additional efforts across all sectors
of the US economy. If fully funded as requested for the President's  Climate Change
Technology Initiative, the partnerships could be reducing emissions by over 60 MMTCE
per year by 2005 (Figure 9), or by nearly  three  times current annual reductions.
Figure 9. Annual reductions in greenhouse gas emissions can be nearly tripled
by 2005 if funding is made available
     70
       '95    '96     '97
       YEARS 1995-2004
                                                                    04
                                                   Source: BM Climate Protection DMsloi
                                                                          '05
                                                                                        3

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C L S M A T E P R O T E C TI O N  D II V      N  1 9 9 9 A N N UAL  R E P O R T
        Climate Protection Division of the US Environmental Protection Agency. 1999. Partner
        and emissions data provided by individual programs and partnerships in the Division.
        Energy Information Administration. 1999. Annual Energy Outlook 2000 with
        Projections to 2020. Office of Integrated Analysis and Forecasting. December.
        (DOE/EIA-0383(2000)).
        Energy Information Administration. 2000. Annual Energy Review 1999. Office of
        Markets and End Use. July. (DOE/EIA-0384(99)).
        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, U.K.
        NASA Goddard Institute for Space Studies. Graphical and tabular data on global
        temperatures, available at www.giss.nasa.gov/data/update/gistemp/.
        US Department of State. 1997. Climate Action Report. 1997 Submission of the United
        States of America Under the United Nations Framework Convention on Climate
        Change. July.
        US Environmental Protection Agency.  1999. Inventory of U.S.  Greenhouse Gas Emissions
        and Sinks: 1990-1997. Office of Policy, Planning and Evaluation. May.
        (USEPA 236-R-99-003).

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1. Bill Savings. These are the total savings in energy bills, in 1998 dollars, realized by
   partners or purchasers of ENERGY STAR labeled products through 2010. Many of these
   investments, such as the improvements associated with ENERGY STAR Buildings, have
   lifetimes as long as 15 years. A cut-off of 2010 was chosen as a reasonable end-point to
   assess benefits, even though the benefits of the Division's programs and partners'
   investments will often continue to be realized after that year.
2. Technology Expenditures. Technology Expenditures represent the cost to partners, in
   1998 dollars, of investments in energy efficiency, including the cost of financing the
   investment over its life at a 7.0 percent real rate  of interest (4.0 percent for public-
   sector investments). This includes any price premium, and the cost of financing that
   premium,  for the purchase of ENERGY STAR labeled products. The benefits of these
   investments have accrued since they were made and will continue to accrue until the
   end of their useful lives. Investments also include future investments and purchases
   made as a  result of market transformation that has already occurred, to the extent that
   they keep kWh savings constant between 1999 and 2010.
   Seven percent is the standard interest rate recommended by the Office of Management
   and Budget in Circular No. A-94,  Guidelines and Discount Rates for Benefit-Cost
   Analysis of Federal Programs for Ease-Case Analysis. As stated in the circular, "[the 7.0
   percent] rate approximates the marginal pretax rate of return on an average investment
   in the private sector in recent years."
3. Net Savings. Net Savings is the difference between Bill Savings and Technology
   Expenditures. It represents the undiscounted amount of cash available to partners and
   purchasers of ENERGY STAR labeled products to put into the economy through 2010.
4. MMTCE. This column presents the amount of carbon emission equivalents  avoided
   by investments  in energy-efficient products through 2010. It also includes the
   emissions avoided by the methane programs and by the programs reducing emissions
   of the high global warming potential gases. For energy-efficiency investments and
   purchases, the carbon emission equivalents are based on an analysis of marginal carbon
   emissions.  The marginal carbon emission rate decreases over time: in 2000 it is
   assumed to be 1.64 Ibs. CO2/kWh; in 2005 it is assumed to be 1.20 Ibs.  CO2/kWh;
   and in 2010 it drops to 1.09 Ibs. CO2/kWh.
For further information on the cost and benefits calculations, call EPA's Climate Protection Division
at 202-564-9190.

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