ENERGY STAR® and Other
              Climate Protection Partnerships
ENERGY STAR    2006 Annual Report
                                        United States
                                        Environmental Protection
                                        Agency

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ENERGY STAR® AND OTHER CLIMATE  PROTECTION PARTNERSHIPS
2006 ANNUAL REPORT

CONTENTS
Letter from the Administrator	1
Executive Summary	2
     Highlights of 2006	2
     Looking Closer and Looking Forward 	4
Introduction	8
Climate Leaders	12
ENERGY STAR Overview	14
     ENERGY STAR in the Residential Sector	18
     ENERGY STAR in the Commercial Sector	28
     ENERGY STAR in the Industrial Sector	36
Clean Energy Supply Programs	42
     Green Power Partnership	42
     Combined Heat and Power Partnership	42
State and Local Programs and Initiatives	46
     Clean Energy-Environment State Partnership	46
     Clean Energy-Environment Municipal Network	48
     Clean Energy and Utility Policy Programs	48
Methane Programs	50
     Natural Gas STAR Program	50
     AgSTAR Program	52
     Coalbed Methane Outreach Program	54
     Landfill Methane  Outreach Program	56
High Global Warming Potential Gas Programs	58
Companies and Organizations Mentioned in This Report	64
List of Figures	69
List of Tables 	70
References	71

For additional information, please visit our Web sites  at www.epa.gov/cppd, www.energystar.gov,
www.epa.gov/cleanenergy/stateandlocal/index.htm, www.epa.gov/methane, and www.epa.gov/highgwp.

NOTE: The data source for all figures and tables in this 2006 Annual Report is EPA's Climate Protection Partnership Programs unless otherwise noted.
Historical totals have been updated based on the most recent available data.

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                                                                                           LETTER FROM THE ADMINISTRATOR
                                                                                                    September 2007
                  I am pleased to present this report on the accomplishments of EPA's climate protection programs.
                  For 15 years, EPA has joined forces with thousands of organizations across the country to reduce
                  greenhouse gas emissions through greater use of energy efficiency and clean energy. Together, we are
                  making significant progress—EPA's programs are expected to contribute about 70 percent of the
                  emissions reductions needed to meet the President's aggressive greenhouse gas intensity goal.

                  Energy efficiency is one of the nation's great energy resources, and ENERGY STAR is helping bring  energy
                  efficiency to homes, schools, businesses, and communities across the country—with impressive results.
                  In 2006 alone, Americans, with the help of ENERGY STAR, saved about $14 billion on their utility bills while
                  preventing greenhouse gas emissions equivalent to those from 25 million vehicles.

                  EPA is also working to spur investment in clean energy supplies. On the fifth anniversary of our Green
                  Power Partnership and the Combined Heat and Power Partnership, we have worked with  more than
                  650 organizations buying almost 7 billion kilowatt-hours of green power and another 200 that have
                  installed more than 3,500 MW of new combined heat and power capacity.

                  EPA's partners are also continuing their remarkable efforts to  curb emissions of methane and other
                  potent greenhouse gases. In 2006, EPA's partners avoided the emissions equivalent to those from more
                  than 15 million vehicles. Their commitment continues to keep  emissions of these gases at more than
                  10 percent below 1990 levels and proves that proactive climate protection efforts can be part of
                  successful business strategies.

                  Corporations are also realizing the multiple benefits of energy efficiency,  clean energy, and other
                  strategies to reduce greenhouse gas emissions, as evidenced by the continued growth of the Climate
                  Leaders program. The partnership has grown to 107 partners, representing more than 8  percent of total
                  U.S. greenhouse gas emissions, and 8 partners have already reached the aggressive targets they set
                  earlier through the program.

                  The success of ENERGY STAR and EPA's other voluntary programs demonstrates that individuals
                  and businesses can do well by doing good. EPA appreciates its partners' inspiring efforts to address
                  climate change through its voluntary programs and looks forward to continuing these collaborations
                  far into the future.

                                                                  Sincerely,
                                                                  Stephen L. Johnson
                                                                  Administrator
                                                                  U.S. Environmental Protection Agency
ENERGY STAR® and Other Climate Protection Partnerships 2006 Annual Report

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EXECUTIVE  SUMMARY
In 2006, the U.S. Environmental Protection Agency's (EPA's)
climate protection partnership programs significantly reduced
the emissions of greenhouse gases that contribute to global
climate change. This suite of well-designed programs lowers
energy costs, helps hedge against the volatility of energy
markets, and improves national energy security by addressing
identified market barriers and accelerating the adoption of
proven, cost-effective technologies and practices.

Through these partnerships, more than 11,000 organizations
nationwide invested in  energy efficiency, clean energy supply,
and other climate-friendly technologies and made significant
progress toward the President's aggressive greenhouse gas
intensity reduction goal for 20121 (see Table 1 and Figure 1).

The measures adopted by EPA's partners through 2006 have
resulted in the following major environmental and economic
benefits:

• The prevention  of 70 million metric tons (in MMTCE2)
  of greenhouse gases, equivalent to the emissions from
  45 million vehicles, and net savings to  consumers and
  businesses of more than $14 billion in 2006 alone.
• Prevention of more than 980 MMTCE and net savings to
  consumers and businesses of about $160 billion over the
  lifetime of their investments.
• Investment of more than $50 billion in energy-efficient and
  climate-friendly technologies.

Highlights of  2006
• Climate Leaders, the  Administration's corporate leadership
  program, engages Fortune 500 and other leading companies
  and organizations in aggressively reducing their greenhouse
  gas emissions. In 2006, the program exceeded  its milestone
  of 100 partner companies. More than half of these companies
  announced aggressive greenhouse gases reduction targets
  for the future—which represent a reduction in greenhouse
  gas emissions of more than 10 million metric tons over
  business-as-usual outcomes—and eight have  announced
  achievement of previously set goals.
• Energy efficiency offers one of the lowest cost solutions for
  improving our energy security, reducing our energy bills,
  and addressing the important issue of global climate
  change—all while helping to grow the economy. Since its
  inception in 1992, the ENERGY STAR program has helped
  individuals and organizations nationwide find cost-
  effective, energy-efficient solutions. As of 2006, ENERGY
  STAR has helped prevent the greenhouse gas emissions
  equivalent to those from 25 million vehicles while saving
  Americans about $14 billion on their energy bills across the
  nation's homes, schools, office buildings, industries, and
  other facilities (see Figure 2).
• The Clean Energy Supply programs celebrated their 5th
  anniversary of working to improve the supply of the nation's
  clean energy resources. Their substantial progress includes
  partners purchasing almost? billion kilowatt-hours (kWh)
  of green power annually and installing more  than 3,500
  megawatts (MW) of new combined heat and power capacity.
• EPA expanded its efforts to assist state and local
  governments in their pursuit of clean energy policies by
  growing its state partnership to include 14 states and
  launching a Clean Energy-Environment Municipal Network.
• The EPA- and U.S. Department of Energy (DOE)-facilitated
  National Action  Plan on Energy Efficiency (Action Plan)
  released five key recommendations for aligning policies
  at the state level to encourage investment in all cost-
  effective energy efficiency measures. Eighty-nine
  organizations across 46 states publicly supported the
  recommendations and/or announced actions they would take
  to implement them.
• The methane (CH4) programs continued to reduce
  emissions of this potent greenhouse gas. They exceeded
  their emissions reductions goals in 2006 and  kept national
  methane emissions to well below 1990 levels.
• The partnerships focusing on high global warming potential
  (GWP)  gases kept national emissions of these gases from
  industrial sources to well below 1990 levels.  Further, EPA
  has made important progress in the effort to reduce emissions
  from the use and maintenance of auto air conditioners.
 Greenhouse gas intensity is the ratio of greenhouse gas emissions to economic output (measured by the gross domestic product). EPA's climate programs
 are expected to contribute 77 million metric tons of carbon equivalent (MMTCE), or about 70%, of the emissions reductions needed to achieve the
 President's goal of an 18% reduction in greenhouse gas intensity by 2012. For more information on the Administration's goal, see
 http://www.whitehouse.gov/news/releases/2002/02/climatechange.html.
• Million metric tons of carbon equivalent (MMTCE). Reductions in greenhouse gas emissions for EPA's climate programs 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.

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    TABLE 1. ANNUAL AND CUMULATIVE BENEFITS FROM PARTNER ACTIONS THROUGH 2006 (IN BILLIONS OF
            2006 DOLLARS AND MMTCE)
BENEFITS FOR 2006
Net Savings
Program (Billion $)
ENERGY STAR Total
Qualified Products and Homes
Buildings
Industry
Clean Energy Supply Programs
Methane Programs
High GWP Gas Programs
TOTAL
$13.7
$6.8
$4.9
$2.0
—
$0.4
—
$14.2
Emissions
Avoided
(MMTCE)
37.6
16.0
15.2
6.5
3.7
16.1
13.3
70.7
CUMULATIVE BENEFITS 1993 - 2016
PV of Bill
Savings
(Billion $)
$202.4
$95.8
$83.7
$22.9
—
$8.1
—
$210.5
PV of Technology PV of Net Emissions
Expenditures Savings Avoided
(Billion $) (Billion $) (MMTCE)
$48.1
$14.6
$28.7
$4.9
na
$3.6
na
$51.8
$154.3
$81.2
$55.0
$18.0
—
$4.5
—
$159
491
204
197
90
47
224
223
986
PV: Present Value
NOTES: Technology Expenditures include O&M expenses for Methane Programs. Bill Sa vings and Net Sa vings include revenue from sales of methane and electricity.
           Totals may not equal sum of components due to independent rounding. For details on cumulative benefits, see pages 40, 41,44, and 55.
           Not applicable
           Not available
    FIGURE 1. GREENHOUSE GAS EMISSIONS REDUCTIONS EXCEED 70 MMTCE—EQUIVALENT TO 45 MILLION VEHICLES
       a
       L1J
       a
       o
              2000
  2001
2002
2003
2004
2005
2006
                                                                                             TOTAL HIGH GWP SAVINGS

                                                                                            | TOTAL CH4 SAVINGS

                                                                                            | TOTAL C02 SAVINGS
    FIGURE 2. ENERGY STAR BENEFITS CONTINUE TO GROW
                                                   14
                                      10	^
                                         I     I
                                         I     I
                                         I     I
                                         I     I
          2000    2001
2002    2003   2004   2005    2006
          UTILITY BILL SAVINGS
          (in billions)
                                                                                                      25
                                                                                         21
                                                                                                23
                                                                                  18
                                                                            16
                                       11
                                                                     13
                                          I     I     I     I
                                          I     I     I     I

                                    I     I     I     I     I
                         2000   2001    2002
                        EMISSIONS SAVED IN
                        VEHICLE EQUIVALENTS (in millions)
                                  2003    2004    2005   2006
ENERGY STAR® and Other Climate Protection Partnerships 2006 Annual Report

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Looking Closer and Looking Forward
More detail on the 2006 accomplishments of EPA's climate
protection partnerships is provided in this section. EPA
continually refines and expands the climate protection
programs to increase the environmental benefits. These
programs are  on track to achieve aggressive longer term
goals with current estimates showing that their benefits will
nearly double  in 10 years from 2006 levels (see Table 2 and
Figure 4, p. 7).  Some of the steps EPA will take to reach those
goals are also outlined below.

Climate Leaders. In less than 5 years, Climate Leaders
has grown to 107 partners, with a more than 25  percent
increase in the past year. Further, partners are on track to
announce aggressive greenhouse gas reduction goals and
subsequently achieve those goals. EPA will engage  more
organizations in understanding their carbon risks and
reducing their carbon footprint by helping them accurately
inventory their greenhouse gas emissions, set aggressive
reduction goals, and report on progress. EPA has developed
and tested protocols to ensure high-quality corporate
inventories. EPA has also released draft accounting guidance
on green  power purchases and emissions offset projects.

ENERGY STAR. A growing body of literature  demonstrates
that efforts like ENERGY STAR are critical to addressing
climate change (see Figure 3). The greenhouse  gas and
energy bill savings from the ENERGY STAR program in 2006
are 10 percent greater than those of the prior year and more
than double the savings  in 2000. These savings  are largely
the result of reduced demand for electricity that totaled an
impressive 170 billion kWh—almost 5% of total  U.S.
electricity demand—and 35 gigawatts (GW) of peak power,
equivalent to the capacity of 70 power plants in 2006. EPA will
continue to build the ENERGY STAR program as a credible
guide for investment in energy efficiency for consumers,
businesses, and other organizations to leverage as part of
their efficiency efforts. EPA is maintaining the integrity of
and continuing to build the value of the ENERGY STAR
program.  Key ENERGY STAR highlights include:

• More than 1,700 manufacturers are using the  ENERGY
  STAR label on a total of over 40,000 individual  product
  models across more than 50 product categories. American
  consumers are purchasing about 300 million ENERGY STAR
  products annually, a total of more than 2 billion ENERGY
  STAR qualified products since 1992.
• EPA expanded the ENERGY STAR program in 2006 to
  include efficient battery chargers to improve the efficiency
  of the growing number of small household and commercial
  products and also updated the ENERGY STAR requirements
  for several widely used products, such as computers and
  imaging equipment.
• EPA will continue to expand the ENERGY STAR label to
  new product categories where the core program
  principles of cost-effectiveness and maintenance of
  product performance can be met, and will revise the
  requirements for products already in the program as
  conditions warrant. EPA will also continue to work with
  its vast partnership network to help consumers and
  businesses, both large and small, choose ENERGY STAR
  qualified products with an emphasis on  lighting products,
  small household appliances, commercial food service,
  office equipment, and heating and cooling products. Overall,
  EPA expects more than 300 million ENERGY STAR qualified
  products to be sold each year for the foreseeable future.
• A significant number of new homes—about 12 percent
  nationwide—were built to ENERGY STAR guidelines. The
  number totaled almost 725,000 homes through 2006,
  constructed by about 3,500 builders in every state across
  the country. EPA will continue to partner with home
  builders and other organizations in the industry to construct
  more than 100,000 new ENERGY STAR homes each year
  and bring  ENERGY STAR qualified homes to more markets
  throughout the country.
• Home Performance with ENERGY STAR, a whole-house
  retrofit  program that provides guidance for going beyond
  the straightforward purchase of efficient products, made
  great progress. Across the country, 28,000 homes have
  been improved through the 18 locally sponsored programs,
  three of which launched in 2006. EPA will be working to
  bring this program and its significant financial savings to
  about five new communities each year. Additionally,
  EPA will develop and launch a new service for quality
  installation of heating and cooling equipment, taking it to
  three to five new communities each year.
• EPA continues to expand its efforts across the commercial
  buildings sector through its ENERGY STAR Challenge and
  other efforts. Thousands of public and private organizations
  are using ENERGY STAR tools and resources to improve the
  efficiency of their buildings; more than 30,000 buildings
  have been rated for energy performance. In addition, more
  than 3,200 buildings across the nation have earned the

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                                                                                                                 EXECUTIVE SUMMARY
     FIGURE 3. IMPROVING ENERGY EFFICIENCY IN THE BUILDING SECTOR IS CRITICAL TO ADDRESSING
                CLIMATE CHANGE
    As the effects of climate change begin to manifest themselves in the
    United States and abroad, the demand for near-term solutions across
    all sectors of the economy is skyrocketing. The European consulting
    firm Vattenfall recently published the Climate Map 2030,  the first
    attempt to outline global possibilities for greenhouse gas reductions
    over the next 20 years. The report demonstrates how programs such as
    ENERGY STAR are critical to successfully addressing climate change.
    Buildings are currently responsible for more than 8% of global
    greenhouse gas emissions, of which the United States, European
    Union, and Canada account for more than 60%. Of all the sectors
    reviewed in the report,  the building sector is the only one in which all
    of the reduction potential is achievable through current technologies at
    negative or no-cost (see figure below). The report cites "market failures"
    such as misaligned incentives, end-user behavior, and program costs as
    the reasons why these technologies are not currently being adopted.
    These are exactly the market barriers to cost-effective energy efficiency
   investments that the ENERGY STAR program has been dismantling
   since 1992. The potential is enormous; about 3% of the total global
   reduction potential is in investments in currently available cost-
   effective, energy-efficient products and practices in North America's
   buildings alone—the buildings within reach of the ENERGY STAR
   program.
   The report also calls attention to other areas in which EPA climate
   protection programs are delivering cost-effective, near-term climate
   change solutions. Reduced energy demand in the power sector, energy
   efficiency in the industrial sector, clean energy supply, and agricultural
   and landfill methane capture are all singled out as having large
   reduction potentials in the United States and abroad.
   The Vattenfall Climate  Map 2030 is just one piece of a growing body
   of literature that concludes that ENERGY STAR and EPAs other
   climate protection programs are delivering vital solutions to climate
   change—today.
                       REDUCTION POTENTIAL IN MMTCE PER YEAR
                       0         100         200         300
400
500
                                                                                                             Standby Power
                                                                                                             Residential Heater
                                                                                                            Fridge/Freezer
                                                                                                           Residential AC
                                                                                                         Commercial Lights
                                                                                                    Residential Heaters
                                                                                                 Wash/Dry
                                                                                     Residual Commercial AC
                                                                                     Windows, Residential
                                                                                Residential     Windows
                                                                                Appliances
                                                                                       Primary
                                                                                       Electricity
               -$250-
                       Residential
                       New Building
                       Insulation
     EPA PROGRAMS ARE HIGHLY COST-EFFECTIVE MECHANISMS FOR REDUCING GREENHOUSE GAS EMISSIONS
     EPA's climate programs are a very cost-effective approach for reducing U.S. greenhouse gas emissions. Moreover, it is clear
     from sources such as the Vattenfall Climate Map that there are still great untapped opportunities for these programs to
     capture—meaning they will continue to be cost-effective far into the future. Every federal dollar spent on these partnership
     programs through 2006 means:
      Reductions in greenhouse gas emissions of 1.0 metric ton of carbon equivalent.
     • Savings for partners and consumers of more than $75 on their energy bills.
     • Private sector investment of more than $15.
      A net savings of more than  $60.
     All data from Vattenfall, AB, 2007. For a copy of the full report, seethe company Web site in References, p. 71.
ENERGY STAR® and Other Climate Protection Partnerships 2006 Annual Report

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  ENERGY STAR label for superior energy performance and
  use 35 percent less energy than average buildings. EPA will
  continue to partner with states, trade associations, and
  others to engage, train, and otherwise facilitate these
  building improvements. Strategies include advancing
  effective energy management as a core business strategy
  and promoting standardized measurement systems for
  assessing the efficiency of these facilities, targeting
  improvements, and tracking progress.
• EPA expanded its industrial focus program to include
  10 industrial sectors and developed plant-level
  benchmarking and other tools. For the first time, EPA
  awarded the  ENERGY STAR label to industrial facilities.
  Twenty plants across the country now display the ENERGY
  STAR. EPA expects to expand its industrial work to more
  industrial partners and two additional industrial focus
  sectors each year.
• EPA updated  its ENERGY STAR agreement with the
  European Union and developed an agreement with China
  on harmonization of endorsement labeling.

Clean Energy Supply. EPA's clean energy supply
programs prevented 3.7 MMTCE in their fifth year. The Green
Power  Partnership grew to more than 650 partners who
purchased close to 7 billion kilowatt-hours (kWh) of green
power.  The Combined Heat and Power (CHP) Partnership
supported 200 partners nationwide and helped facilitate CHP
projects totaling more than 3,500 MW of new CHP capacity.
These projects are up to 35 percent more efficient than
traditional, separate heat and  power generation. EPA will
assist CHP partners in identifying and developing new projects
and will encourage new and  existing Green Power partners
to purchase green power.

State  and Local Government Clean Energy
Programs. EPA continued to assist state and local officials
in their quest to develop and  implement clean  energy
strategies by:

• Expanding its Clean Energy-Environment State Partnership
  —a clean energy technical  assistance program—to
  include 14 states and launching the Clean Energy-
  Environment  Municipal Network to provide new tools and
  resources for local governments. In support of these
  efforts, EPA published a new clean energy policy guidance
  document, the Guide to Action, that assists in the
  assessment and implementation of more than 16 state-level
  clean energy policies. In 2007, EPA plans to add one new
  partner to the State Partnership, share best policy
  practices, and expand the Municipal Network.

• Ensuring the Action Plan reached important milestones in
  its first year as it strives to curb more than 50 percent of
  the expected growth in U.S. energy demand and capture
  $20 billion in potential energy savings. In 2007, EPA will
  continue to facilitate the Action Plan in conjunction with
  DOE, focusing on the development of resources vital to
  implementing the recommendations and launching a new
  Sector Collaborative on Energy Efficiency.

Methane and High Global Warming Potential
(GWP) Gas Programs. National methane emissions and
high GWP gas emissions are currently below 1990 baselines4
and expected to stay that way into the future due to EPA's
partnership programs such as the  Landfill Methane Outreach
Program, the Natural Gas STAR Program, and a suite of
programs addressing the high  GWP gases. The reduction of
non-carbon dioxide (C02) gases totaled nearly 30 MMTCE
in 2006 or the emissions equivalent to those from more than
15 million vehicles. In  addition, the Methane to Markets
Partnership spread the success of EPA's domestic methane
partnership programs overseas. EPA will continue its
progress with these programs by:

• Working aggressively with existing and  new partner
  companies to develop more methane emissions reduction
  projects and maintain overall methane emissions  below
  1990 levels.

• Partnering with companies in the aluminum, magnesium,
  semiconductor, utility, HCFC-22, and mobile air
  conditioning sectors to reduce emissions of high
  GWP gases.

International Climate  Protection Awards. EPA,
working with an international team of reviewers, recognized
17 visionary organizations and individuals from six different
countries around the world for their leadership in addressing
global climate change issues (see p.  7).
* Emissions do not include those used in mobile air conditioning or as replacements for ozone depleting substances.

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                                                                                               EXECUTIVE SUMMARY

    TABLE 2. LONG-TERM GREENHOUSE GAS REDUCTION GOALS FOR EPA CLIMATE PARTNERSHIP PROGRAMS (MMTCE)
PROGRAM

ENERGY STAR*
Clean Energy Supply Programs
Methane Programs
High GWPGas Programs
TOTAL
ACCOMPLISHMENTS
2006
37.6
3.7
16.1
13.3
70
GOALS
2012
52
8
18
19
97
2015
64
12
20
22
118
    'Does not include ENERGY STAR products managed by DOE.
    FIGURE 4. POTENTIAL FOR ADDITIONAL GREENHOUSE GAS REDUCTIONS FROM EPA CLIMATE PARTNERSHIP
             PROGRAMS
         120 -
              1996      1998

             YEARS 1995-2016
2000
2002
2004
2006
2008
2010
2012
2014
2016
    NOTE: Historical totals updated based on most recent data available.
    INTERNATIONAL CLIMATE PROTECTION AWARD WINNERS
                   EPA established the
                   Climate Protection
                   Awards in 1998 to
                   recognize outstanding
                   accomplishments in
                   protecting the Earth's
                   climate. So far, 139
                   individuals, companies,
                   and organizations from
                   16 countries have
    received the award. This year's 17 winners
    are reducing greenhouse gas emissions by
    improving energy efficiency, introducing
    new technologies, purchasing green power,
    and inspiring global action to protect the
    climate. The winners are from Australia,
    China, France, Japan, the United Kingdom,
    and the United States. Each winner serves
    as an example and inspiration for others to
    take action to protect the climate.
CORPORATE AWARD
WINNERS
Entergy Corporation
New Orleans, LA

HSBC Holdings, pic
East London, UK

Mitsubishi Motors
Corporation &
Mitsubishi Heavy
Industries
Tokyo, Japan

Red Dot Corporation
Seattle, WA

Staples, Inc.
Framingham, MA
The Yalumba Wine
Company
Angaston, Australia

TEAM & NGO
AWARD WINNERS
Arkema Climate
Protection Team
France and USA

Climate Protection
Campaign
Sonoma County, CA

Improved Mobile Air
Conditioning
Servicing Emissions
Reduction Team
USA

Joint Strike Fighter
Emissions Test
Development Team
USA

Natural Resources
Council of Maine
Portland, ME
INDIVIDUAL
AWARD WINNERS
Reverend Sally
Bingham
San Francisco, CA

Robert Parkhurst
San Francisco, CA

Robert Redford
Beverly Hills, CA

Auden Schendler
Aspen, CO

Ron Sims
King County, WA

Dadi Zhou
Beijing, China




ENERGY STAR® and Other Climate Protection Partnerships 2006 Annual Report

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INTRODUCTION  TO  ERA'S  CLIMATE  PROTECTION  PROGRAMS
For almost 15 years, EPA's voluntary climate protection
programs have helped break down market barriers that
discourage cost-effective investments in energy efficiency,
clean energy, and other climate-friendly technologies (see
Table 3). These public-private partnerships provide objective
information and technical assistance used by thousands of
partners and their customers to reduce energy use, avoid
greenhouse gas emissions, and hedge against volatile fuel
markets. The programs also publicly recognize organizations
that demonstrate exemplary environmental leadership.

As a  result, these programs are capturing real financial and
environmental benefits across the residential, commercial,
and industrial sectors. The benefits  increase every year as a
growing number of partners take advantage of a wider array
of tools and strategies offered by EPA's voluntary programs.
The level of benefits achieved in 2006 is expected to double
by 2016. In addition, EPA's suite of climate protection
programs is an important component of the President's
plan to  reduce greenhouse gas intensity.

The programs summarized in this report5 focus on the
following strategies to achieve their environmental goals:


Corporate  Commitments to Reducing
Greenhouse Gas Emissions
CLIMATE*
U.S. Environmental Protection Agency
                         Partners in EPA's Climate
                         Leaders program are Fortune
                         500 and other leading
                         corporations that have
committed to aggressively reducing their greenhouse gas
emissions. When they join the partnership, these companies
agree to complete a comprehensive inventory of their
greenhouse gas emissions, set an ambitious long-term
reduction goal, and systematically report their progress to
EPA. By investing in energy efficiency, clean energy, and
measures to reduce emissions of other greenhouse gases,
Climate Leaders are reducing their carbon footprint and
earning recognition for environmental stewardship.
                                                           ENERGYSTAR
Energy Efficiency
                   Energy efficiency—obtaining identical
                   services or output (such as heating,
                   cooling, and lighting) with less energy
                   input—offers one of the lowest cost
                   means of reducing  energy bills and
                   addressing climate change. Since
                   1992, EPA has helped individuals and
organizations nationwide adopt cost-effective, energy-
efficient technologies and practices at work and at home
through its ENERGY STAR program. These investments have:

• Avoided the emissions of the primary greenhouse gas,
  carbon  dioxide (C02) (see  Figure 5).
• Saved consumers and businesses up to 30 percent on
  their energy bills.
• Increased electricity reliability, lowered the volatility of
  energy prices, and improved energy security.
                                                          Clean Energy Supply

                                                                 PARTNERSHIP
                                                               CHP
AEPA COMBINED HEAT AND
      POWER PARTNERSHIP
                      In 2001, EPA launched two
                      partnership programs in fulfillment
                      of the National Energy Policy — the
                      Green Power Partnership and the
                      Combined Heat and Power
                      Partnership. Their mission is to
                      increase the nation's supply of
clean energy, which currently accounts for about 2 percent
of U.S. electricity generated (see Figure 6), by promoting
greater purchase of electricity derived from renewable
sources and greater investment in environmentally friendly
combined heat and power. Through these programs, EPA has
since partnered with hundreds of organizations to provide
technical assistance, minimize transaction costs, and
promote technologies that significantly reduce greenhouse
gas emissions from energy generation.
1 This report provides results for the Climate Protection Partnership Programs operated by the Office of Atmospheric Programs at EPA. It does not include
 emissions reductions attributable to WasteWise, transportation programs, the Significant New Alternatives Program, or the landfill rule, which are the
 remaining actions in EPA's comprehensive climate program. EPA estimates that the reduction in greenhouse gas emissions across the entire set of climate
 programs to be about 100 MMTCE in 2006.

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    TABLE 3. MARKET BARRIERS ADDRESSED BY ERA'S CLIMATE PARTNERSHIP PROGRAMS
AUDIENCE OR
TARGET MARKET
Energy Consumers
Utilities
Industries with
Byproduct GHG
Emissions*
State and Local
Policy and
Decisionmakers
MARKET BARRIERS
ADDRESSED
Lack of information about energy
efficiency and renewable energy options
Competing claims in the marketplace
Assessing objective measurement tools
Minimizing transaction costs
Reliable technical assistance
Peer exchange opportunities
Overcoming split incentives
Understanding organizational risks
Incentives for action through recognition
Assessing objective measurement tools
Lack of information about energy efficiency
program costs and benefits
Disincentives for energy efficiency in existing
regulations and energy planning processes
Reliable technical assistance
Peer exchange opportunities
Incentives for action through recognition
Lack of information about clean energy policies
Reliable technical assistance
Incentives for action through recognition
CLIMATE PROTECTION PARTNERSHIP PROGRAM
CLIMATE ENERGY GREEN COMBINED HEAT
LEADERS STAR POWER AND POWER
• • •
• •
• • •
• • • •
• • • •
• • • •
•
• • •
• • • •
• • • •
• •
National Action Plan for Energy Efficiency
National Action Plan for Energy Efficiency
Climate Leaders
Methane Partnerships
High GWP Partnerships
Clean Energy-Environment State Partnership
National Action Plan for Energy Efficiency
Clean Energy-Environment Municipal Network
    * Includes utilities.
    FIGURE 5. U.S. C02 EMISSIONS BY SECTOR AND
              NON-C02 GASES BY PERCENT OF TOTAL GHGS

                      Other
                  non-C02 Gases
           Methane
          Emissions
            7.9%
     Agriculture
        1.5%
                                                    C02
                                                    Other Gases
FIGURE 6. U.S. ELECTRICITY GENERATION BY
          FUEL TYPE

                 Other Renewables*
                       2.3%      Other
            Hydroelectric N   \   /°-5%
               6.5%
* Includes wind,
 photovoltaic energy,
 solar thermal, geo-
 thermal, landfill gas,
 agricultural byproducts,
 wood, and other renewable
 sources.
                                                                   Source: EIA 2006
                                                                                     Natural Gas
                                                                                        18.7%
                           Petroleum
                             3.0%
ENERGY STAR® and Other Climate Protection Partnerships 2006 Annual Report

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           State and Local Energy Policies
           Significant informational and institutional barriers can
           prevent state and local entities from implementing policies
           and making investments that spur energy efficiency and
           clean energy development. Through the Clean Energy-
           Environment State Partnership and  the Clean Energy-
           Environment Municipal Network, EPA provides state and
           local energy policymakers with tools and resources that
           allow them to explore, evaluate, and implement a variety of
           clean energy policies. EPA is also facilitating the  National
           Action Plan for Energy Efficiency along with the U.S. Department
           of Energy (DOE). In addition to other EPA utility policy efforts,
           the Action Plan builds awareness of and provides guidance
           on how to overcome state policies that limit greater
           investment in energy efficiency by utilities and other third-
           party administrators of energy efficiency programs.
           Clean EnergyEnvironment    National
           STATE PARTNERSHIP
                               Plan for
                               Energy
                               Efficiency
           Clean EnergyEnvlronment
           MUNICIPAL NETWORK
           Non-C02 Greenhouse Gases
           A number of greenhouse gases have a much greater ability
           to trap heat in the earth's atmosphere than carbon dioxide
           on a per molecule basis. Many of these gases are released
           as byproducts of industrial operations. EPA's climate
           partnerships are significantly reducing emissions of these
           gases, as described below:

           • Methane is both a potent greenhouse gas and a highly
             desirable clean fuel. EPA partners with the natural gas,
             coal mining, agriculture, and landfill gas development
             industries to help them capture methane and use it as
             an energy source in a cost-effective manner.
• Hydrofluorocarbons (MFCs), perfluorocarbons (PFCs), and
  sulfur hexafluoride (SF6) are all extremely powerful and
  persistent greenhouse gases. EPA is collaborating with
  many industries—including the aluminum, magnesium,
  semiconductor, and HCFC-22 industries, the electric
  utilities, and those engaged in mobile air-conditioning—
  to avoid significant accumulation of these gases in the
  atmosphere.
       IMJl'STRIAt. PAR1!'M-.KKtllt'
                          Sft Emission Reduction
                          Partnership fat the Magnesium Indusoy
Demonstrating Progress in 2006
This report provides detailed information on EPA's efforts
within each of the five program areas mentioned above (see
Table 4). The sections that follow include program overviews,
environmental and economic benefits achieved in 2006, and
goals for the future. EPA is committed to documenting
quantifiable program results and using well-established
methods to estimate the benefits of its climate partnership
programs. Specific approaches vary by program strategy,
sector, availability of data, and market characteristics (see
pages 40,41,44,55, and 63). For each program, EPA
addresses common issues that arise when estimating
program benefits such as  data quality, double counting, free-
ridership, external promotion by third  parties, and  market
effects, among others. The information presented  in this
annual report is similar to  much of the information used in the
U.S. Office of Management and Budget (OMB) Program
Assessment Rating Tool (PART), which found these EPA
programs to be achieving their goals.
10

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                                                                                                      INTRODUCTION
    TABLE 4. OVERVIEW OF EPA CLIMATE PARTNERSHIP PROGRAMS REVIEWED IN THIS ANNUAL REPORT
            WITH GREENHOUSE GAS REDUCTIONS SINCE 2000
PROGRAM
Climate Leaders
ENERGY STAR
Clean Energy-
Environment State
Partnership
GHGS
ADDRESSED
All
CO2
CO2
KEY
SECTOR(S)
Commercial,
Industrial
Residential,
Commercial,
Industrial
State
Government
SCOPE OF
PARTNERS
AS OF 2006
107
9,000
14
GHG REDUCTIONS*
2000 2001 2002 2003 2004 2005 2006
Climate Leaders' reductions are reflected
in the data shown for other programs.
15.4 19.1 23.3 27.5 31.8 33.8 37.6
N/A N/A
CLEAN ENERGY SUPPLY
Green Power
Combined Heat
and Power
CO2
CO2
State & Local
Government,
Commercial,
Industrial
Commercial,
Industrial
650
200
N/A N/A 0.6 1.0 2.0 3.2 3.7
METHANE PROGRAMS
Natural Gas STAR
Coalbed Methane
Outreach Program
(CMOP)
Landfill Methane
Outreach Program
(LMOP)
CH4
CH4
CH4
Natural Gas
Coal Mining
Waste
Management
62% of industry
N/A
600
4.1 4.8 5.7 6.0 7.9 10.1 9.4
2.1 2.3 1.7 1.7 2.0 2.1 1.9
3.2 3.7 3.9 4.1 4.4 4.5 4.8
HIGH GWP GAS PROGRAMS
Voluntary Aluminum
Industrial Partnership
HFC-23 Partnership
Stewardship
Programs
Mobile Air
Conditioning (MAC)
Partnership
PFCs
HFCs
SF6
PFCs
CO2
HFCs
Aluminum
Smelting
Chemical
Industry
Magnesium
Production,
Semiconductor
Manufacturing,
Electric Power
Systems
MAC Industry
98% of industry
100% of industry
50%-100%
of industry
N/A
2.0 2.1 1.8 2.2 2.2 2.3 2.4
4.7 5.1 4.5 6.1 6.4 6.2 7.0
0.8 0.8 1.3 1.8 3.1 3.0 3.8
Working toward technology
improvement goals
    "These reductions reflect the most up-to-date data collected from EPA partners and may differ from reductions reported in previous annual reports.
    N/A: Not applicable
ENERGY STAR® and Other Climate Protection Partnerships 2006 Annual Report
11

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           CLIMATE  LEADERS
           CLIMATE
                           Since 2002, the Climate
                           Leaders program has
                           partnered with leading
U.S. Environmental Protection Agency
                           companies across the country
to help them develop and implement long-term comprehensive
climate change strategies.  Climate Leaders partners represent
a broad range of industry sectors including cement, forest
products, Pharmaceuticals, utilities, information technology,
and retail (see Figure 7). They operate in all 50 states and
provide 5.8 million jobs throughout the world. By joining the
partnership, these organizations agree to complete a
comprehensive inventory of their greenhouse gas emissions,
set aggressive long-term reduction goals, and report their
progress to EPA using clear measurement protocols.

EPA provides valuable guidance and opportunities for
recognition to partners as they develop and work toward
their climate reduction goals. Using EPA's wide range of tools,
expertise, and resources, partners can make informed decisions
about cost-effective strategies and practical portfolio
investments in energy efficiency, clean energy, and
non-C02 emissions reductions. EPA continuously tracks
partner progress through a variety of means, and  EPA
ensures the credibility of reported data through detailed
data reviews and site visits.

Climate Leaders has made substantial progress since its
inception (see Table 5) and is well positioned to continue to
assist its partners over the coming years.


Achievements in 2006
• The number of Climate Leaders partners grew to 107, an
  increase of more than 25 percent in just one year, with the
  addition of 30 new corporate partners. These companies
  represent more than 8 percent of total U.S. greenhouse gas
  (GHG) emissions.
• Three partners met their initial Climate Leaders  GHG
  reduction goals in 2006: American Electric Power, St.
  Lawrence Cement, and United Technologies Corporation.
  These three companies join Baxter, General Motors, IBM,
  the National Renewable  Energy Laboratory, and SC
  Johnson as the first eight to meet their initial goals since
  the program was launched in 2002 (see Table 6). Under the
  Climate Leaders program, once companies reach their
  initial targets, they continue to work with EPA to establish
  new goals.
• The total number of corporate GHG goals announced
  through 2006 grew to 59, including those announced by
  21 partners in 2006 (see Table 7). More than half of the
  companies in the partnership have publicly announced
  GHG goals.
• EPA estimates that GHG reductions by Climate Leaders
  partners will prevent more than 10 million metric tons of
  carbon equivalent (MMTCE) per year relative to typical
  improvement activities. These reductions are equivalent to
  eliminating the annual GHG emissions from 7 million vehicles.
• Seventy-five partners submitted initial GHG inventories to
  EPA, a necessary step for all partners prior to establishing
  an emissions reduction goal. EPA technical experts
  performed 42 site visits to review partner GHG inventories
  and Inventory Management Plans and to recommend
  improvements.
• EPA released a user-friendly Annual Inventory Summary
  Form, draft Green Power Purchase accounting guidance,
  and additional draft offset protocols to provide rigorous, yet
  flexible, accounting principles and help companies manage
  their GHG emissions.
• EPA recognized those partners that have set emissions
  reduction goals through a public service announcement
  (PSA) and supplements that ran in 14 publications with a
  combined circulation of more than 6 million.


What to Expect in 2007 and Beyond
The Climate Leaders  program will continue to recruit new
partners and support existing partners as they develop and
work toward their individual GHG reduction goals. EPA
expects to welcome  an additional 20 partners each year into
the Climate Leaders program and for existing partners to
announce 20 new corporate GHG reduction goals each year.
Based on 2006 reports, four current partners  are poised to
attain their corporate climate change goals in 2007. EPA will
develop recognition opportunities for partners that achieve
major milestones.
12

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    TABLE 5. CLIMATE LEADERS KEY PROGRAM INDICATORS FOR 2004-2006
CLIMATE LEADERS INDICATOR
Partners
Initial Inventories Submitted
Site Visits
Goals Announced
Goals Achieved
2004 CUMULATIVE
64
45
9
25
0
2005 CUMULATIVE
78
60
30
38
5
2006 CUMULATIVE
107
75
42
59
8
    TABLE 6. THREE CLIMATE LEADERS ACHIEVE THEIR CLIMATE PROTECTION GOALS IN 2006
PARTNER
American Electric Power
Columbus, OH
St. Lawrence Cement
Mont-Royal, Quebec
United Technologies Corp.
Hartford, CT

Met its goal by reducing total U.S. GHG emissions by 4 percent from 2001 to 2006.
Met its goal by reducing global GHG emissions by 16 percent per ton of
cement-type product from 2000 to 2006.
Met its goal of reducing global GHG emissions by 46 percent per dollar of
revenue from 2001 to 2006.
    TABLE 7. 21 CLIMATE LEADERS THAT SET AGGRESSIVE
            CLIMATE PROTECTION GOALS IN 2006
                              FIGURE 7. THE 107 CLIMATE LEADERS BY SECTOR
     Baltimore Aircoil Company
     Jessup, MD

     California Portland Cement
       Company
     Glendora, CA

     Conservation Services Group
     Westborough, MA

     Cummins Inc.
     Columbus, IN

     DuPont Company
     Wilmington, DE

     Ecoprint
     Silver Spring, MD

     EMC Corporation
     Hopkinton, MA

     Entergy Corporation
     New Orleans, LA

     Haworth, Inc.
     Holland, Ml

     HSBC North America
     Prospect Heights, IL

     Intel Corporation
     Santa Clara, CA
Lockheed Martin
  Corporation
Bethesda, MD

Mack Trucks, Inc.
Allentown, PA

North  Bay Construction
Petaluma, CA

Oracle Corporation
Redwood Shores, CA

Raytheon Company
Waltham, MA

Shaklee Corporation
Pleasanton, CA

Sonoma Wine Company
Graton, CA

Sterling Planet, Inc.
Atlanta, GA

STMicroelectronics
Carrollton, TX

Volvo  Trucks
  North America, Inc.
Greensboro, NC
        Utilities
          10
  Industrial
Manufacturing
     19
Consumer
  Goods
   25
  Financial
     11
         Healthcare
             7
    Materials
   Manufacturing
       24
          'Information!
            Services '
              11
ENERGY STAR® and Other Climate Protection Partnerships 2006 Annual Report
                                                                              13

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           ENERGY STAR  OVERVIEW
            ENERGY STAR
                     Energy efficiency offers one of the
                     lowest cost solutions for improving
                     our energy security, reducing our
                     energy bills, and addressing global
                     climate change—all while helping to
                     grow the economy. Since its inception
                     in 1992, the ENERGY STAR program
has helped individuals and organizations nationwide adopt
cost-effective, energy-efficient technologies and practices
and better manage their energy costs. And since 1996, the
U.S. Department of Energy (DOE) has joined with EPA and
assumed specific ENERGY STAR program responsibilities.

In 2006, the ENERGY STAR program offered  more solutions
to its widest audience ever in its efforts to overcome the
informational, institutional, and practical obstacles that
impede investment in energy-efficient technologies and
practices. Nevertheless, numerous opportunities still exist for
cost-effective energy efficiency investments in the residential,
commercial, and industrial sectors. Given the rising concerns
about the environmental, economic, and security implications
of energy use, the nation's need to invest in energy efficiency
is greater than ever.

The ENERGY STAR program serves as a credible, objective
source of information for decisionmakers interested in
improving the energy efficiency of their products, practices,
services, homes, and buildings. By clearly identifying the
financially attractive options that save energy, the ENERGY
STAR  program has helped consumers and organizations save
money and protect the environment, and the program is
poised to continue to do so into the future.


Achievements in 2006
The broad achievements across the ENERGY STAR program
include the following:

• About $14 billion were saved by Americans on their utility bills
  across the residential, commercial, and industrial sectors
  (see Table 1, p. 3), largely by avoiding the need for more than
  170  billion kilowatt hours (kWh) of electricity or almost
 5 percent of the total 2006 U.S. electricity demand, and
  35 gigawatts (GW) of peak power, equivalent to the generation
  capacity of more than 70 new power plants.
• More than 37 million metric tons of greenhouse gas
  emissions were avoided, equivalent to the greenhouse gas
  emissions from 25 million vehicles (see Table 8).
• These benefits were achieved by identifying and
  promoting the purchase of efficient products and new
  homes (40  percent) and by promoting improved energy
  management strategies for organizations in the commercial
  and industrial  sectors based on standardized approaches
  for assessing current levels  of efficiency, targeting
  improvements, and tracking  success (60 percent).
• About 300 million ENERGY STAR qualified products are
  being  purchased each year, and about 12 percent of all
  new homes built in 2006 earned the ENERGY STAR.6
  A summary of other key indicators from all  the program
  areas  is  provided in Table 9.7
• Nationwide awareness of ENERGY STAR continued to
  grow,  and it is now recognized by more than 65 percent of
  the American  public.  Further, there were more than
  4 million  visits to the ENERGY STAR Web site  in 2006,
  and media articles mentioning ENERGY STAR qualified
  products, homes, and buildings reached more than
  one billion  consumers in 2006.

The ENERGY STAR program now engages more than
9,000 businesses and organizations across the country to
advance energy-efficient buildings, products, practices,
homes, and services that lower energy bills and benefit the
environment. These partners include:

• About 1,700 manufacturers using the ENERGY STAR to
  distinguish the energy efficiency of over 40,000 individual
  product models across more than 50 product categories,
  many carrying the brand names that today's consumers
  prefer. These products offer consumers savings of up
  to 90 percent relative to standard models and up to
  30 percent savings in total on their household energy bills
  (see Table  10,  p. 16).
• More than 900 retail partners bringing ENERGY STAR qualified
  products and educational information to their customers.
14
            Single-family site-built new homes
           7 This cumulative total includes product sales across the entire ENERGY STAR program, including those from the efforts of the Department of Energy. The results
            for energy saved and the resulting environmental and economic benefits represent EPA efforts alone.

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     TABLE 8. ENERGY STAR PROGRAM ACHIEVEMENTS EXCEED GOALS IN 2006

Energy Saved
(Billion kWh)
G(
All Qualified Products1 0
Commercial Building Improvements 0
New Homes 0
Industrial Improvements' 0
PROGRAM TOTAL for ENERGY STAR 13

>al Achieved
0 75.2
0 76.5
0 1.4
0 22.3
D.O 175.4 5

Emissions Avoided
(MMTCE)
Goal
14.5
11.5
0.5
3.7
30.2
Achieved
15.5
15.2
0.4
6.5


Energy Saved Emissions Avoided
(Billion kWh) (MMTCE)
Goal Goal
16.0
12.5
— 0.9
— 3.9

Achievements By Product Type
Energy Saved 2006
Consumer Electronics6
Residential Appliances7
Residential Office Equipment
Lighting
Heating and Cooling
Residential Products
Commercial Appliances
Office Equipment
Commercial Lighting
Other
Commercial Products
12.3
0.6
6.3
11.3
7.6

1.3
28.5
1.7
5.5
37.1











Emissions Avoided 2006
2.4
0.1
1.2
2.2
2.4

0.3
5.6
0.3
1.0

      Results for qualified products from Sanchez et si, 2007.  Results from building improvements based on methodology presented in Horowitz, 2007.  Results for qualified homes from
      CPPD, 2X17.  Electricity results from industrial improvements based on methodology presented in Horowitz, 2007; results from other fuels from ICF International, 2006.  The kWh savings
      imply peak demand savings of more than 35 gigawatts IGW), based on conservation load factors developed by LBNL IKoomey et al., 19901.  A small portion of consumer electronics may
      be used in commercial buildings such as hotels. For reporting purposes, all consumer electronics results are included under Residential Products. EPA results only, does not include
      products under the responsibility of DOE. Totals may not equal sum of components due to independent rounding.
      —.• Wof applicable
     TABLE 9. ENERGY STAR KEY PROGRAM INDICATORS, 2000 AND 2006

QUALIFIED PRODUCTS
NEW HOMES
COMMERCIAL BUILDINGS
INDUSTRIAL IMPROVEMENTS
ANNUAL RESULTS

Products Sold**
Product Categories
Product Models
Public Awareness
Retailers (partners)
New Homes Built**
Home Builders (partners)
Buildings Rated**
Buildings Labeled**
Building Types Eligible for Label
Industry Focuses
Energy Saved (kWh)
Avoided Emissions (MMTCE)
Net Savings (USD)

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

>2 billion
>50
40,000
68%
900
725,000
3,500
30,000
3,200
11
10
170 billion
37.6
$14 billion
     ** Results are cumulative.
ENERGY STAR® and Other Climate Protection Partnerships 2006 Annual Report
15

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           • Close to 3,500 builder partners constructing new homes
             that qualify for the ENERGY STAR in every state  and the
             District of Columbia.
           • About 2,500 private businesses and public sector
             organizations investing in energy efficiency and reducing
             energy  use in their buildings and facilities.
           • More than 40 states, 500 utilities,  and many other energy
             efficiency program sponsors leveraging ENERGY STAR to
             improve the efficiency of commercial buildings and homes.
           • Hundreds of energy service providers, energy raters,
             architects, building engineers, and financial lenders making
             energy  efficiency more widely available through ENERGY
             STAR and providing additional value to their customers.
           The success of ENERGY STAR depends on the efforts of its
           partners,  and EPA and DOE recognized 92 of them in 2006 at
the ENERGY STAR annual awards for their outstanding efforts
to advance energy efficiency in the United States (see p. 17).

EPA continued to work with international partners. It
maintained its international collaboration under the Asia
Pacific Partnership as well as renewed its ENERGY STAR
agreement with the European Union on specifications for
ENERGY STAR  office equipment. EPA also agreed to
cooperate with the China Standard Certification Center (CSC)
in standardizing information on their respective energy
efficiency labels for consumer electronics and office equipment.

Additional program achievements within the residential,
commercial, and industrial sectors are presented in the
sections that follow.
           TABLE 10. ENERGY STAR QUALIFIED PRODUCTS
ENERGY STAR
PRODUCT CATEGORY
AVERAGE ENERGY
SAVINGS** ABOVE
STANDARD PRODUCT
OFFICE
Monitors
Computers
Fax machines
Copiers
Multifunction devices
Scanners
Printers
20-60%
5-55%
20%
20%
20%
50%
10%
CONSUMER ELECTRONICS
TVs
VCRs
TVs/DVDs/VCRs
DVD products
Audio equipment
Telephony
External power supplies
Battery charging systems
25%
30%
90%
60%
60%
55%
35%
35%
HEATING AND COOLING
Furnaces
Central air conditioners
Air source heat pumps
Geothermal heat pumps
Boilers
Programmable thermostats
Light commercial HVAC
15%
15%
10%
30%
5%
15%
5%
ENERGY STAR
PRODUCT CATEGORY
AVERAGE ENERGY
SAVINGS** ABOVE
STANDARD PRODUCT
LIGHTING
Compact fluorescent light bulbs (CFLs)*
Residential light fixtures
75%
75%
RESIDENTIAL APPLIANCES
Room air conditioners*
Dehumidifiers
Room air cleaners
Exhaust fans
Ceiling fans
Dishwashers*
Refrigerators*
Clothes washers*
10%
15%
45%
70%
45%
40%
15%
25%
COMMERCIAL APPLIANCES
Water coolers
Commercial solid door refrigerators and
Commercial hot food holding cabinets
Commercial fryers
Commercial steamers
Vending machines
45%
freezers 35%
60%
15%
50%
25%
HOME ENVELOPE
Insulation/Sealing
Roofing
Windows, doors, & skylights*
N/A
N/A
N/A


16
           * DOE managed products
           ** Actual savings will vary by climate region and home characteristics.

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    ENERGY STAR AWARD WINNERS
                                                                                                         ENERGY STAR OVERVIEW
      SUSTAINED EXCELLENCE
      3M
      St. Paul, MN
      Advantage IQ
      Spokane,  WA
      ASTORIA HOMES
      Las Vegas, NV
      Austin Energy
      Austin, TX
      California Portland Cement
       Company
      Glendora, CA
      CenterPoint Energy
      Houston, TX
      David Powers Homes
      Houston, TX
      Ence Homes
      St. George,  UT
      Food Lion, LLC
      Salisbury, NC
      GE Consumer & Industrial
      Louisville, KY
      Giant Eagle, Inc.
      Pittsburgh, PA
      Gorell  Enterprises, Inc.
      Indiana, PA
      Marriott International, Inc.
      Washington, DC
      Nevada ENERGY STAR
       Partners
      Las Vegas, NV
      New York-Presbyterian Hospital
      New York, NY
      New York State Energy
       Research and Development
       Authority
      Albany, NY
      OSRAM SYLVANIA
      Danvers, MA
      Save More Resources
      Dallas, TX
      Sea Gull Lighting Products, LLC
      Riverside, NJ
      Toyota Motor Engineering &
       Manufacturing North America,
       Inc.
      Erlanger, KY
      Transwestern
      Houston, TX
      TXU Electric Delivery
      Dallas, TX
      USAA Real Estate Company
      San Antonio, TX
      Veridian Homes
      Madison,  Wl
      Whirlpool Corporation
      Benton Harbor, Ml
      Wisconsin Focus on Energy
      Madison,  Wl
PARTNER OF THE YEAR-
RETAILER
The Home Depot, Inc.
Atlanta, GA

PARTNER OF THE YEAR-
PRODUCT MANUFACTURER
AGA Foodservice Equipment
Cherry Hill, NJ
Lennox Industries Inc.
Richardson, TX
Pella Corporation
Pella, IA
Precision Entry, Inc.
Sugarcreek, OH
Progress Lighting
Greenville, SC

EXCELLENCE IN ENERGY STAR
PROMOTION
Bosch Home Appliances
Huntington, CA
Georgia Power
Atlanta, GA
Long Island Power Authority
Uniondale, NY
Lowe's Companies, Inc.
Mooresville, NC
Nationwide Marketing Group
Winston-Salem, NC
Northeast ENERGY STAR
  Lighting and Appliance
  Initiative
Lexington, MA
Rocky Mountain  Power
Salt Lake City, UT
The National Energy  Education
  Development Project
Manassas, VA

EXCELLENCE IN APPLIANCE
RETAILING
Sears Holdings
Hoffman Estates, IL

PARTNER OF THE YEAR-ENERGY
EFFICIENCY PROGRAM DELIVERY
Arizona Public Service (APS)
Phoenix, AZ
Building Owners and Managers
  Association (BOMA)
  International
Washington, DC
Northwest Energy Efficiency
  Alliance
Portland, OR
Pacific  Gas and Electric
  Company
San Francisco, CA
Southern California Edison
Rosemead, CA
Southern California Gas
  Company
Los Angeles, CA
PARTNER OF THE YEAR-
ENERGY MANAGEMENT
Davenport Community School
 District
Davenport, IA
Ford Motor Company
Dearborn,  Ml
J.C. Penney Company, Inc.
Piano, TX
Jones Lang LaSalle
Chicago, IL
McDonald's USA
Oak Brook, IL
Merck & Co., Inc.
Whitehouse Station, NJ
PepsiCo
Purchase, NY
Raytheon Company
Waltham, MA
San Diego Unified School
 District
San Diego, CA
Seaford School District
Seaford, DE
Shriners Hospitals for Children
 -Houston
Houston, TX

PARTNER OF THE YEAR-
SERVICE AND PRODUCT
PROVIDER
Schools for Energy Efficiency
 from Hallberg Engineering,
 Inc.
White Bear Lake, MN

EXCELLENCE IN ENERGY-
EFFICIENT AFFORDABLE
HOUSING
Community Housing  Partners
 Corporation
Christiansburg, VA
Enterprise
Columbia,  MD
Houston Habitat for Humanity
Houston TX
Louisville Metro  Housing
 Authority
Louisville,  KY
New Jersey Green Homes
 Office -NJ Department of
 Community Affairs
Trenton, NJ
Pennsylvania Housing Finance
 Agency
Harrisburg, PA
Philadelphia Housing Authority
Philadelphia, PA

EXCELLENCE IN HOME
IMPROVEMENT
Efficiency Vermont
Burlington, VT
National Grid
Westborough, MA
PARTNER OF THE YEAR-
NEW HOMES
Advanced Energy
Raleigh, NC
Anderson Homes, Inc.
Gary, NC
Bob Ward Companies
Edgewood, MD
Bosgraaf Homes
Holland, Ml
CMH Manufacturing, Inc.
Maryville, TN
DPIS Engineering, LLC
Tomball, TX
Energy Inspectors
Las Vegas, NV
Energy Services Group
Wilmington, DE
Fox Energy Specialists,
 The Nelrod Company
Fort Worth, TX
Haven Properties
Alpharetta, GA
Holton Homes Inc.
Nampa, ID
K. Hovnanian  Homes -
 Minnesota Division
Eden Prairie, MN
Palm Harbor Homes
Addison, TX
Southern Energy Management
Raleigh, NC
Southwest Energy Conservation,
 LLC
El Paso, TX
The Commodore Corporation
Goshen, IN
Winton/Flair Custom Homes
El Paso, TX

SPECIAL RECOGNITION-
EXCELLENCE IN EFFICIENCY
Denton Affordable Housing
 Corporation
Denton, TX
Energy Trust of Oregon, Inc.
Portland, OR
Innovative Design, Inc.
Raleigh, NC
Nashville Area Habitat for
 Humanity
Nashville, TN
Seattle Lighting
Seattle, WA
Worcester East Side
 Community Development
 Corporation
Worcester, MA
U.S. Department of  Housing
 and Urban Development
 Region I, Bob Paquin
 Region IV, Jim Chaplin
 Region VI, Laurence Doxsey
 Region IX, Wayne  Waite
ENERGY STAR® and Other Climate Protection Partnerships 2006 Annual Report
                                                                                         17

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          ENERGY  STAR  IN  THE  RESIDENTIAL SECTOR
          Driven by high utility bills at home and growing interest in
          "green" products and practices, American consumers are
          turning to ENERGY STAR to help  guide their purchasing
          decisions so they can make their homes more efficient, save
          money, and prevent greenhouse  gas emissions (see Figure 8).
          By using ENERGY STAR qualified products and services,
          households can reduce their energy use up to 30 percent and
          save $600 a year on their utility bills without sacrificing
          comfort or performance. Through ENERGY STAR, EPA helps
          consumers purchase energy-efficient products and make
          cost-effective home  improvements while helping to
          protect the environment.


          ENERGY STAR  Products for the Home
          Each year, EPA expands the ENERGY STAR program so that it
          retains its role as the leading authority on cost-effective
          energy efficiency. Activities in 2006 included adding new
          qualified products, updating specifications for select
          products (see Table 11), continuing national and international
          government coordination, and promoting broad outreach
          efforts that help consumers find  ENERGY STAR products,
          homes, and services. Highlights of these activities are
          described below.

          New ENERGY STAR Products. Small household
          appliances represent a rapidly expanding share of household
          energy use. Battery charging systems, which recharge a
          wide variety of cordless products including power tools,
          personal care products, garden tools, and other small
          appliances, represent a significant portion of that household
                                   energy use. In 2006, EPA further extended its coverage of
                                   small household appliances by establishing a new ENERGY
                                   STAR specification for battery charging systems (see below).
                                   On average, ENERGY STAR qualified battery charging
                                   systems use 35 percent less energy than conventional
                                   models.

                                   Raising the Bar for  ENERGY STAR. In 2006, EPA
                                   significantly improved the efficiency of a broad range of
                                   office equipment products, without making any tradeoffs in
                                   features or functionality. New ENERGY STAR specifications
                                   for copiers, printers, faxes, scanners, multifunction devices,
                                   and computers were finalized—all addressing active power
                                   for the first time. The updated specifications marked the
                                   completion of a comprehensive global process to develop
                                   new, broadly accepted,  standardized test procedures for
                                   measuring active power in these products.

                                   Growing Awareness. EPA published a report, "National
                                   Awareness of ENERGY STAR for 2006," which summarizes
                                   the findings of a Consortium for Energy Efficiency (GEE)
                                   survey  and highlights ENERGY STAR'S role in helping
                                   American consumers make energy-efficient choices that are
                                   also good for the environment. The results of the GEE survey
                                   are summarized below.

                                   • Public awareness of the ENERGY STAR label  exceeds
                                    65  percent (see Figure 9). Public awareness is even
                                    greater—75 percent—in major markets where local
                                    utilities and other organizations use ENERGY  STAR to
                                    promote energy efficiency to their customers.
            ENERGYSTAR
           Powered by an
           ENERGY STAR®
           qualified adapter
           for a better
           environment
EPA Targets Growing Source of Household

Energy Use by Introducing Battery Charger

Specification  in 2006

Further expanding its coverage of small household appliances, EPA
established a new ENERGY STAR specification for battery chargers in
2006. Battery charging systems recharge a wide variety of cordless products,
including power tools, small household appliances, personal care products,
and garden tools. On average, ENERGY STAR qualified battery chargers
use 35% less energy than conventional models. They have the potential to
save Americans more than $100 million in energy costs annually, while
preventing more the one million tons of greenhouse gas emissions.
PRODUCTS USING
BATTERY CHARGERS

• power tools
• small household appliances
• personal care products
• garden tools
18

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   TABLE 11. ENERGY STAR RESIDENTIAL PRODUCT SPECIFICATIONS ADDED, REVISED, AND IN PROGRESS
PRODUCT CATEGORY YEAR INTRODUCED
AND (YEAR REVISED)
RESPONSIBLE
AGENCY
STATUS OF ACTIVITY IN 2006
2006 New Specifications
Battery Charging Systems
2006
EPA
New specification took effect in 2006.
2006 Revisions Completed
Computers
Imaging Equipment
Oil Furnaces
1992 (2006)
1993 (1994, 1995,
1997,2006)
1995 (2006)
EPA
EPA
EPA
Revision completed. Revised specification to
take effect in 2007.
Revision completed. Revised specification
to take effect in 2007.
Revision completed. Revised specification to
take effect in 2007.
2006 Revisions in Progress
Furnaces
Programmable Thermostats
Residential Lighting Fixtures
Roof Products
Televisions
1995
1995
1997 (2001, 2002,
2003, 2005)
1999 (2003)
1998 (2002)
EPA
EPA
EPA
EPA
EPA
In progress.
In progress.
Revision initiated in 2006.
In progress.
In progress.
New Specifications in Development
Digital TV Adapters

EPA
New specification to be completed in 2007.
    FIGURE 8. OVER 2 BILLION ENERGY STAR QUALIFIED     FIGURE 9. AWARENESS OF ENERGY STAR GROWING

            PRODUCTS SOLD SINCE 1992                        IN THE UNITED STATES
        2.5
        2.0
           2000  2001  2002  2003  2004  2005  2006
             I Other

             Appliances

             Lighting
I Home Electronics

I Home Office Equipment

(Office Equipment
70%




60%




50%




40%




30%




20%




10%




  0
                                 I AID ED AWARENESS  • UNAIDED AWARENESS
      PI
ri    i
i    i    i
i    i    i
i    i
i    i
i    i
                                                         2000   2001   2002* 2003* 2004*  2005  2006*
                                                    * Annual result is statistically different from the result of the prior year.
ENERGY STAR® and Other Climate Protection Partnerships 2006 Annual Report
                                                                         19

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           • More than 60 percent of households reported being
             favorably influenced by the ENERGY STAR label.
           • More than 30 percent of households knowingly purchased
             an ENERGY STAR qualified product or appliance in the
             past year.
           • More than 70 percent of these households reported they
             are likely to recommend ENERGY STAR products to their
             friends, with 29 percent of households reporting they are
             "extremely likely" to do so.

           Public Outreach.  One core activity of the ENERGY STAR
           program is to educate the public about the environmental
           and financial benefits of  ENERGY STAR products. The 2006
           ENERGY STAR national campaigns and public service
           announcements (PSAs) reached millions of people through
           TV, magazine, radio, and  other media outlets. As a result,
           EPA is on track to exceed the 2010 ENERGY STAR national
           awareness goal of 70 percent.

           • Leadership in "Green." With campaigns that broaden
             exposure and public understanding, ENERGY STAR is  a
             trusted source of objective energy efficiency guidance for
             consumers. In 2006, EPA used new tactics, reached new
             audiences, and adopted a social marketing model for  some
             campaigns. As the demand for "green" products  rises in
             the future, EPA will  continue to position ENERGY STAR as
             an easy, cost-effective way to make environmentally
             responsible purchasing decisions.
                                                           • ENERGY STAR Change a Light, Change the
                                                             World Campaign. This year, the ENERGY STAR Change
                                                             a Light, Change the World Campaign added  a community-
                                                             based social marketing element to its traditional marketing
                                                             and media approach to personally involve more Americans.
                                                             In addition, organizations and businesses were invited to
                                                             set a pledge goal and encourage their employees, members,
                                                             or networks to take the ENERGY STAR Change a Light pledge.
                                                             More than 600 organizations in all 50 states sponsored
                                                             pledge drives or hosted events to support the campaign
                                                             (see Figure 10). Overall, the campaign has generated more
                                                             than 500,000 pledges to replace a traditional light bulb with
                                                             an ENERGY STAR qualified compact fluorescent light bulb.
                                                           • ENERGY STAR @ Home. As part of the  2006 Cool
                                                             Your l/l/or/cfwith ENERGY STAR campaign, EPA launched
                                                             ENERGY STAR @ home, an interactive Web tool that helps
                                                             consumers better understand how energy is used in their
                                                             homes (see p. 21). The tool is updated seasonally to give
                                                             consumers weather appropriate practical tips to lower
                                                             home energy costs  and prevent greenhouse gas emissions.
                                                             ENERGY STAR @ home garnered media attention in
                                                             national and local news  broadcasts and long-lead print
                                                             publications. The site was featured by syndicated writers,
                                                             retailers, and high-profile online outlets, such as MTV.com,
                                                             MSN.com, and BHG.com. By the end of 2006, the ENERGY
                                                             STAR @ home tool had been used more than 200,000 times.
           PARTNER OF THE YEAR—RETAILER

           THE HOME DEPOT Atlanta,  Georgia

                          The Home Depot's second Retail Partner of the Year Award was well deserved. In 2006, The Home Depot raised the bar by
                          carrying more ENERGY STAR products than ever and increasing qualified product sales to 82 million. This leading home
                          improvement retailer helped its customers save more than $300 million and prevented greenhouse gas emissions equivalent to
                          those from more than 400,000 vehicles. Home Depot also increased the presence of ENERGY STAR through a variety of
                          media channels, including a partnership with AOL to promote ENERGY STAR products and projects, and a Change a Light,
                          Change the World campaign sweepstakes with a Ford Escape Hybrid prize.
           PARTNER OF THE YEAR—PRODUCT MANUFACTURER
           LENNOX
LENNOX INDUSTRIES INC. Richardson, Texas

                       Lennox Industries has been a leading manufacturer of commercial and residential indoor comfort systems—also
                       known as heating, ventilating, and air conditioning—for more than a century. In 2006, Lennox aggressively
                       marketed new ENERGY STAR qualified products; as a result, its U.S. residential equipment sales increased 32%
over 2005, and commercial split heating and cooling systems rose 54%. Lennox's 2006 campaign, "Bad Air," showcased ENERGY STAR qualified
products and generated nearly 2 billion consumer impressions across various media. Lennox has distinguished itself as a leader by embracing the
goals of the ENERGY STAR program while providing additional value to its customers.
           Highlights of more 2006 Award winners may be found at energystar.gov/awards.
20

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                                                                                        ENERGY STAR  IN THE RESIDENTIAL SECTOR
     EPA LAUNCHES INTERACTIVE ENERGY STAR @ HOME WEB TOOL AS PART OF THE ENERGY STAR COOL YOUR
     WORLD CAMPAIGN
    In May 2006, EPA launched ENERGY STAR
    @ home, a new online educational tool for
    residential energy efficiency, as part of the
    annual ENERGY STAR Cool Your World
    campaign.
    With ENERGY STAR @ home, consumers
    learn how to reduce energy use, save money
    on their utility bills, and increase home
    comfort through an engaging and interactive
    format. Users can explore an online house
    room-by-room, discovering information on energy-efficient products,
    ideas for home improvement, and tips on energy-saving practices. The
    tool  is available year-round with a changing seasonal and promotional
    focus. In 2006, the ENERGY STAR @ home tool was used more than
    200,000 times.
    ENERGY STAR @ home has provided many of EPAs retail partners
    an easy way to promote energy efficiency and energy-saving advice
    both in-store and online. National retailers, such as Lowe's, Menards,
    Sears, and The Home Depot, have linked to ENERGY STAR @ home
    from their Web sites, with several also using the tool in their
    advertisements and in-store materials.  Lowe's featured ENERGY STAR
    @ home in a national prime time television commercial.
    The  increased national media interest in energy-related stories during
    the summer of 2006 led to other substantial media placements of the
                     ENERGY STAR @ home tool. Articles
                     mentioning the tool and the Cool Your
                     World messaging appeared in Reader's Digest
                     and Home magazines. A syndicated story
                     about ENERGY STAR @ home ran in major
                     online and print news outlets such as
                     ABCNews.com, Yahoo.com,
                     HoustonChronicle.com, WashingtonPost.com,
                     and BostonGlobe.com. EPA also forged new
                     partnerships with online content providers,
such as BHG.com (Better Homes and Gardens), MSN.com,
Lime.com, and MTV.com, that posted links to ENERGY STAR @
home and the Cool Your World messaging. The combined media
coverage resulted in more than 27 million earned media  impressions.
Building on the tremendous success of the 2006 campaign, EPA will
continue to promote ENERGY STAR @ home as a way  to educate
Americans  on protecting the environment by reducing energy use at
home. Through a new feature for the 2007 campaign, "Tell Us How
You Save,"  homeowners will be able to share their energy-saving home
improvement stories, demonstrating simple ways that individuals can
do their part to protect the environment while saving money on their
utility bills.
To explore  the tool, visit www.energystar.gov/home.
     FIGURE 10. MORE THAN 600 ORGANIZATIONS PROMOTE ENERGY STAR CHANGE A LIGHT, CHANGE THE WORLD
                 IN 2006
                                                 Increasing Activity
                                                                       '///////A
                                                 <5 Organizations   5-10 Organizations  11-20 Organizations   >20 Organizations
ENERGY STAR® and Other Climate Protection Partnerships 2006 Annual Report
                                                          21

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           Home Improvement through ENERGY STAR
           EPA continues to promote energy-efficient improvements and
           remodeling that range from do-it-yourself air sealing and
           insulation projects to large whole-house remodeling by qualified
           contractors. The home improvement market continues to grow
           rapidly, topping $280 billion in sales in 2005.8 More and more
           homeowners are taking the opportunity to make efficiency
           improvements at the time of renovations—lowering their utility
           bills while improving the value and comfort of the home.

           Home Performance with ENERGY STAR. Home
           Performance with ENERGY STAR is part of EPA's effort with
           DOE to promote whole-house, energy efficiency retrofits
           through a qualified contractor network that is backed up by a
           quality assurance program.  EPA estimates that a typical
           home could save, on average, more than 20 percent of its
           total energy and between $400 and $500 a year if these
           retrofits were made. Current participants in the program are
           experiencing savings of up to 50 percent for homes needing
           the most repairs. Under Home Performance with ENERGY
           STAR, regional sponsors implement the program by recruiting
           and training contractors, marketing contractor services, and
           overseeing the  quality of their work.

           • In 2006, more than 12,000 Home Performance with ENERGY
             STAR retrofits were reported to program sponsors, bringing
             the total number of jobs performed under this program
             close to 28,000 retrofits.
           • New program sponsors joined existing sponsors to spur
             continued program growth (see Figure 11). Long Island
             Power Authority (LIPA) and the states of New Jersey and
             Maine established programs in 2006.
           • EPA, in conjunction with DOE and the U.S. Department of
             Housing and Urban Development (HUD), continued to
             support the Building Performance Institute (BPI) through its
                                                              3-year grant to develop a contractor infrastructure to
                                                              deliver home performance contracting. BPI reported more
                                                              than 1,200 certified contractors in 31 states in 2006.
                                                            • EPA recognized five partners—Austin Energy, Efficiency
                                                              Vermont, National Grid, New York State Energy Research and
                                                              Development Authority (NYSERDA), and Wisconsin Focus on
                                                              Energy—for their successful implementation of Home
                                                              Performance with ENERGY STAR (see pp. 22 and 23).
                                                            Proper HVAC Installation. EPA estimates that
                                                            improperly sized and installed HVAC systems can reduce
                                                            system performance by as much as 30 percent and that  more
                                                            than half of all systems are installed incorrectly.  In 2006, EPA
                                                            piloted a proper heating, ventilation, and air conditioning
                                                            (HVAC) installation program with Pacific Gas and Electric
                                                            (PG&E). The results of this pilot and others to be completed in
                                                            2007 will serve as the basis for a national roll-out of an
                                                            ENERGY STAR HVAC Quality Installation (Ql) program in  2008.

                                                            ENERGY STAR Home Sealing. Air sealing and
                                                            insulation are among the easiest and most cost-effective
                                                            ways to  reduce energy bills and increase comfort in a home.
                                                            However, more than 40 percent of American households
                                                            experience drafts during the winter,9 an indication of poor
                                                            sealing.  ENERGY STAR Home Sealing is working to address
                                                            the problem. In 2006, EPA—in conjunction with major retailers,
                                                            utilities, and regional energy efficiency advocates—distributed
                                                            more than 30,000 copies of the  Do-lt-Yourself(DIY) Guide to
                                                            ENERGY STAR Home Sealing m both English and Spanish.

                                                            Partnering with DOE and HUD. In 2006, the three
                                                            agencies reported their first year's results for the Partnership
                                                            for Home Energy Efficiency (PHEE). Announced in 2005, this
                                                            partnership is committed to using established energy
                                                            efficiency programs to reach its goal of a 10-percent
                                                            reduction in average home energy consumption by 2015. The
                                                            program leverages the efforts of EPA, DOE, and HUD.
           EXCELLENCE IN HOME IMPROVEMENT
           EFFICIENCY VERMONT Burlington, Vermont
              Efficiency Vermont
                              In 2006, Efficiency Vermont made a committed effort to inform Vermont homeowners and contractors
                              about the value of Home Performance with ENERGY STAR. Efficiency Vermont's primary strategy has
                              been to build and promote a market infrastructure that has the building-science expertise necessary to
                              address consumer needs while raising awareness about the benefits of Home Performance with
ENERGY STAR. Building on 3 years of promoting energy efficiency best practices, Efficiency Vermont also sponsored four 8-day contractor
training sessions, which resulted in 18 contractors being certified to deliver whole-house services across the state.
22
           8 Joint Center for Housing Growth, Harvard University, 2007.
            Energy Information Administration (EIA), 2001.

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                                                                                        ENERGY STAR IN THE RESIDENTIAL SECTOR

    FIGURE 11. HOME PEFORMANCE WITH ENERGY STAR SPREADS ACROSS THE COUNTRY
                                                                                                             RHODE ISLAND
                       States with Established
                       Home Performance with
                       ENERGY STAR Programs
                                          i METRO Areas with Established
                                          Home Performance with
                                          ENERGY STAR Programs
States and Metro Areas
Launching Home Performance
with ENERGY STAR Programs
    SUSTAINED EXCELLENCE AWARD

    WISCONSIN FOCUS ON ENERGY Madison, Wisconsin
fOCUS on energy
The power it uiilhiit you.
                              Wisconsin Focus on Energy is an innovative partnership of organizations that works to promote ENERGY STAR
                              qualified new homes, Home Performance with ENERGY STAR, and ENERGY STAR qualified products across the
          The power it uiilhiit you.
                              state. Nearly 230 builders are following the Wisconsin ENERGY STAR Homes guidelines, with more than 7,600

    ENERGY STAR new homes built through the program since 1999. Under Wisconsin's Home Performance with ENERGY STAR, nearly 6,000

    existing homes have been improved, including 1,600 in 2006. Wisconsin Focus on Energy educates businesses and consumers on the value of

    ENERGY STAR through training events for builders and contractors, multi-media advertising, and participation in trade shows and other events. All

    together, its outreach efforts reached over one million people in 2006. Wisconsin Focus on Energy also promotes ENERGY STAR qualified lighting

    and appliances, saving 50 million kWh and preventing the release of more than 60,000 tons of carbon dioxide in 2006.
    AUSTIN ENERGY Austin,  Texas

                           For the third year in a row, Austin Energy was recognized for its success under Home Performance with ENERGY STAR.

                           In 2006, nearly 2,000 households participated—collectively saving more than 4.4 megawatts of energy and preventing the

                           release of more than 2 tons of carbon into the atmosphere. The company continued to develop contractors' expertise by

                           offering certification and accreditation under two nationally recognized programs, reaching out to realtor groups and new

                           home buyers, and promoting ENERGY STAR to the Spanish-speaking community. Austin Energy garnered national

    recognition when the PBS Program, This Whole House, spotlighted an Austin home renovation project. Austin Energy's strong efforts serve as a model

    for many developing programs throughout the country.
    Highlights of more 2006 Award winners may be found at energystar.gov/awards.
ENERGY STAR® and Other Climate Protection Partnerships 2006 Annual Report
                                                                                                                      23

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           ENERGY STAR Qualified New Homes
           2006 was the most successful year to date for ENERGY STAR
           in the new homes market. Despite a downturn in the new
           home construction market atyear end, the market
           penetration of ENERGY STAR qualified new homes went up to
           12 percent in 2006, an increase over 2005—proving builders
           know that consumers value the  comfort, quality, and energy
           savings found in ENERGY STAR  qualified homes.

           Twelve Percent of New Homes  Nationwide Bear
           the ENERGY STAR Label. Close to 200,000 ENERGY
           STAR  qualified new homes were built nationwide in 2006,
           bringing the total to almost 725,000 (see Figure 12). ENERGY
           STAR  homes are available in every state across the country
           and the District of Columbia; and in 10 states and more than
           20 metropolitan areas, more  than 20 percent of new homes
           earned the label (see Figure  13). As a result, homeowners are
           saving more than $170 million a  year on their utility bills while
           experiencing greater comfort and  superior indoor air quality.

           Growing Number of Companies Partner with
           ENERGY STAR New Homes. Nearly 3,500 builders
           partnered with EPA to construct ENERGY STAR qualified
           new homes in 2006, a 30 percent increase since 2005. More
           than 40 different utilities and state programs across the
           country delivered ENERGY STAR for  Homes programs.
           The manufactured housing program also experienced
           tremendous growth in 2006, selling 5,000 units nationwide,
           a 40 percent increase over 2005.

           Updated Specification for ENERGY STAR
           Qualified Homes. EPA continued to work with its home
           builder partners and energy  raters to transition to the new
           specification for ENERGY STAR  qualified homes announced
           in 2005. By the middle of 2007, all new ENERGY STAR qualified
           homes will be constructed to the new specification. The new
specification requires ENERGY STAR qualified appliances and
lighting, proper installation of insulation, a tighter envelope,
and more efficient delivery of conditioned air throughout the
house.  EPA estimates that the new specification will create
homes that are 20 to 30 percent more energy efficient than
homes  built to the IRC 2004 energy code and homes that are
at least 15 percent more stringent than a state's building code.

New Homes Outreach Partnership. Through the
ENERGY STAR for New Homes Outreach Partnership,
partners pool resources to increase consumer demand for
ENERGY STAR qualified homes in their local markets. The
Outreach Partnership provides a sustained local presence
for ENERGY  STAR and helps  build consumer awareness of
qualified homes and the builders who offer them. In 2006, the
number of markets  participating in the Outreach Partnership
increased from 20 to 26.

Green Building  Programs. ENERGY STAR  continues to
be the first step to "green," serving as a requirement for the
Leadership in Energy and Environmental Design (LEED) for
Homes certification. LEED for Homes also incorporated EPA's
Indoor Air Package specifications and the ENERGY STAR
Advanced Lighting  Package  into the point system used to
qualify  homes as LEED certified.

Affordable Housing.  In 2006, EPA began working with
Housing Finance Agencies (HFAs) to  incorporate energy
efficiency criteria in their Low Income Housing Tax Credit
Program requirements. As a  result, for the 2007  funding cycle,
29 states began awarding points to applications that
incorporate  ENERGY STAR qualified products, such as
lighting, appliances, windows, and HVAC equipment, and/or
ENERGY STAR construction guidelines for new homes. Ten
states specifically cite construction guidelines for ENERGY
STAR qualified homes.
          What Makes an  ENERGY STAR Home?

          In all 50 states and the District of Columbia, almost 725,000 ENERGY STAR
          qualified homes are saving homeowners more than $ 170 million annually, while
          improving comfort, durability, and indoor air quality and protecting the environment.
          To earn the ENERGY STAR, a home must be independently verified to meet EPAs
          strict guidelines for energy efficiency. These homes are at least 15% more energy efficient
          than homes built to the 2004 International Residential Code (IRC), and include
          additional energy-saving features that typically make them 20—30% more efficient than
          standard homes. Any home three stories or less can earn the ENERGY STAR label,
          including single-family, attached, low-rise multi-family, and manufactured homes.
          ENERGY STAR QUALIFIED HOMES CAN
          INCLUDE A VARIETY OF TRIED-AND-
          TRUE' ENERGY-EFFICIENT FEATURES:

          • tight construction and ducts
          • effective insulation systems
          • efficient heating and  cooling equipment
          • high-performance windows
          • efficient lighting and  appliances
24

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                                                                       ENERGY STAR IN THE RESIDENTIAL SECTOR


    FIGURE 12. TOTAL ENERGY STAR QUALIFIED NEW HOMES DOUBLED IN PAST 2 YEARS
       oo
       LLJ
           800,000



           700,000



           600,000


           500,000



           400,000



           300,000
       g  200,000
       Ll_
       O

       LU  100,000
       CO
                  2000         2001         2002        2003        2004


                 • CUMULATIVE HOMES BUILT     •ANNUAL HOMES BUILT
2005
2006
    FIGURE 13. ENERGY STAR QUALIFIED NEW HOMES GAINING MARKET SHARE
                                                         <3%    3-11%   12-20%   >20%
ENERGY STAR® and Other Climate Protection Partnerships 2006 Annual Report
                          25

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           Recognition for Outstanding Builder Partners. In
           2006, EPA recognized five builders for sustained excellence:
           Astoria Homes, David Powers Homes, Ence Homes, Veridian
           Homes, and the Nevada ENERGY STAR Partners, all of whom
           have delivered high performing homes to their customers
           year after year. In addition, EPA recognized seven other
           builders as ENERGY STAR Partners of the Year: Anderson
           Homes, Inc., Bob Ward Companies, Bosgraff Homes, Haven
           Properties, Holton Homes, K.Hovnanian Homes-Minnesota
           Division,  and Winton/Flair Custom Homes (see p. 27). EPA
           also honored three manufactured housing companies as
           ENERGY  STAR Partners of the Year: CMH Manufacturing, Inc.,
           The Commodore  Corporation, and Palm Harbor Homes.


           What to Expect in  2007 and Beyond
           • EPA will finalize a new specification for digital-to-analog
            adapters (DTAs). In addition, EPA will complete
            specification revisions for TVs, roofing products,
            programmable thermostats, residential light fixtures, and
            furnaces. EPA  also will initiate revisions for external
            power  supplies and computer  monitors. EPA will continue
            to expand the ENERGY STAR label to new product
            categories where the core program principles for cost-
            effectiveness and maintenance of product performance
            can be met and will revise the  requirements for product
            categories already in the program as conditions warrant.
           • EPA will also continue to work with its vast partnership
            network to help consumers and businesses, both large and
            small, choose ENERGY STAR qualified products with an
            emphasis on lighting products,  small household appliances,
            commercial food service, office equipment, and heating
            and cooling products. Overall, EPA expects more than
            300 million ENERGY STAR qualified products to be sold
            each year for the foreseeable future.
           • EPA expects five new local Home Performance with
            ENERGY STAR  programs to debut in 2007 and for that start-
            up rate to continue  into the future. EPA also expects the
            program will complete  an additional 20,000 retrofits  by the
            end of  2007. This will grow to 100,000 over the  next 5 years.
• In preparation for the ENERGY STAR HVAC Quality
  Installation program's nationwide launch in 2008, EPA will
  partner with ONCOR and Southern California Edison to
  conduct pilot programs in 2007 and will work with HVAC
  industry stakeholders to develop proper installation
  verification protocols for rigorous quality.
• EPA projects that builders will construct close to
  130,000 ENERGY STAR qualified homes in 2007. This
  estimate accounts for not only the slowdown in  the new
  homes construction market, but also the application of the
  more stringent ENERGY STAR specification by builders.
• EPA will roll out a pilot program to qualify and label multi-
  family high-rise buildings as ENERGY STAR. The pilots are
  designed to help EPA develop a comprehensive  program
  that addresses the needs of the multi-family sector and
  improves the energy efficiency of all residential  buildings
  with four or more floors and five or more units.
• EPA will continue to promote the ENERGY STAR  message to
  builders, home energy raters, new home buyers, and utility
  partners. EPA intends to expand its builder outreach
  partnership to new markets, revamp its builder outreach
  toolkit, and hold utility and builder partner meetings to
  share best practices and promote solutions through
  ENERGY STAR.
• EPA will also be working to maintain the integrity of the
  ENERGY STAR label as required under the Energy Policy
  Act of 2005. EPA will routinely check for misuse  of the
  ENERGY STAR label through a variety of mechanisms and
  address any misuse that is found. EPA will also
  communicate the procedures that it has in place to
  interested parties.
26

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                                                                                           ENERGY STAR IN THE RESIDENTIAL SECTOR
     SUSTAINED EXCELLENCE AWARD
      VERIDIAN
          HOMES
VERIDIAN HOMES Madison, Wisconsin
                  Veridian Homes, winner of the ENERGY STAR Award for the fourth time, was recognized for its continued outstanding
                  commitment to delivering and promoting ENERGY STAR qualified homes in Wisconsin. The company promotes ENERGY
                  STAR throughout the state by sponsoring conferences on energy savings and conservation, such as the Better Buildings: Better
                  Business conference coordinated by the Energy Center of Wisconsin. Being energy efficient is part of Veridian's vision and
mission statement. In a recent customer survey, 77% of people said energy efficiency was an important factor in selecting Veridian as their
homebuilder. The company is committed  to building 100% of its homes to ENERGY STAR standards. In 2006, it built 450 ENERGY STAR
homes, bringing the company total to 2,480. Veridian uses the ENERGY STAR logo in all print ads, brochures, billboards, direct mail, radio ads, on
its Web site, and in its model homes. This year it kicked off a new ENERGY STAR campaign, "Are You Seeing Stars?" to promote awareness and
consumer recognition. The campaign was  supported by print ads, a new brochure, a billboard, a flash module on the Web site, window decals for
every Veridian home, pins for the sales team, and energy-related gifts at each furnished model.
     PARTNER OF THE YEAR—NEW HOMES

     BOSGRAAF HOMES Holland Michigan
               /~>s.        Bosgraaf Homes, a family-owned business in western Michigan, has been a 100% ENERGY STAR partner since 1999. In
           *—^^~^-f    2006, Bosgraaf built its 1,000th ENERGY STAR home, which it promoted by sending "virtual groundbreaking" kits to
                           news media as well as community and industry leaders in western Michigan. When the home was completed, Bosgraaf
                           hosted an open house during the 12th Annual Fall Parade of Homes that included a scavenger hunt, media coverage, and
                           free compact fluorescent light bulbs (CFLs) for the first 1,000 visitors. Bosgraaf has incorporated the ENERGY STAR mark
     and messaging into many aspects of its marketing and sales, including radio and newspaper ads, its Web site, and special public relations campaigns.
     The company also participated in Home Expo 2006, which promoted energy efficiency. In late 2006, Bosgraaf ran an inventory reduction sale, with
     reductions representing between 1,000 days and 1,000 weeks of free energy. Bosgraaf offers the ENERGY STAR Advanced Lighting Package as an
     option to  buyers as well as ENERGY STAR qualified lighting fixtures and bulbs, HVAC equipment, windows, and appliances.
         ENE
ADVANCED ENERGY Raleigh, North Carolina
                   Advanced Energy is a 501 (c)(3) nonprofit energy services provider and ENERGY STAR partner in North Carolina that
                   promotes energy efficiency and alternative energy resources. In 2006, it helped 50 nonprofit homebuilders in 40 counties
                   construct more than 300 ENERGY STAR qualified homes that serve families earning 80% or less than the area median
                   income. Advanced Energy has partnered with the North Carolina Housing Finance Authority to bring ENERGY STAR to
all new supportive housing and Low Income Housing Tax Credit housing, providing a good example of how local energy groups can provide real
solutions and a practical means for housing authorities to implement their energy priorities. The company has also worked with dozens of Habitat
for Humanity chapters and community development  corporations to change their production processes to incorporate ENERGY STAR guidelines.
It is currently working on developing a pilot program to offer Home Performance with ENERGY STAR to the existing affordable housing stock.
     Highlights of more 2006 Award winners may be found at energystar.gov/awards.
ENERGY STAR® and Other Climate Protection Partnerships 2006 Annual Report
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           ENERGY STAR  IN  THE  COMMERCIAL  SECTOR
           In 2006, increasing energy costs and greater awareness of
           the environmental impact of energy use in commercial
           buildings—which are more than 14 percent of U.S. C02
           emissions—brought renewed attention to energy
           management from businesses and organizations across the
           country. Through the ENERGY STAR program, EPA continued
           to promote superior corporate energy management
           approaches and provide its commercial partners of all sizes
           objective guidance on assessing current energy use and
           developing action plans that will lead to significant energy
           reductions. Through strategic alliances with states,
           associations, and others, energy solutions were disseminated
           to more building owners than ever before. The result was
           record growth in the number of buildings rated, a larger
           number of organizations showing savings across their
           portfolios, and more businesses expanding their customer
           base for energy billing and management services to include
           ENERGY STAR and benchmarking.


           Achievements in 2006
           Commitment to Superior Energy  Management. In
           2006, many diverse organizations joined with ENERGY STAR
           to improve their efficiency. For example:

           • More than 1,600 commercial, public, and industrial
            organizations have committed to adopting superior
            energy management approaches—with school districts
            again representing the largest number of new partners for
            the year. These ENERGY STAR partners own or operate
            about 11 billion square feet of building space across the
            country and approximately 16 percent of the commercial
            building market.
           • More than 1,000 Service and Product Providers (SPPs)
            and nearly 75 utilities or other energy efficiency program
            administrators offer their clients and customers valuable
            energy efficiency services that incorporate ENERGY STAR
            tools and resources.
           • More than 1,800 small  businesses and congregations now
            participate in the ENERGY STAR  network.
Challenging Building Owners to Reduce Energy
Use. In its second year, the ENERGY STAR Challenge gained
momentum as state governments and leading associations
continued to reach out to their constituents and members to
promote energy efficiency in buildings. About 30 states and
more than 25 associations representing commercial real
estate, health care, K-12 schools, and energy service sectors
have joined in. The Challenge encourages commercial
building owners, managers, and others to reduce energy use
by 10 percenter more, which can save a bout $10 billion in
energy costs across the nation's buildings. Highlights include:

• BOMA (the Building Owners and Managers Association
  International)—whose members represent approximately
  75 percent of office space across the country—increased
  the presence of ENERGY STAR in the real estate market
  through a new energy efficiency training program that
  reached nearly 5,000  real estate professionals. The "Building
  Upgrade Value Calculator," developed in conjunction with
  EPA, helped property professionals assess the financial
  value of investments in a property's energy performance.

• ASHE (American Society for Healthcare Engineering of
  the American  Hospital Association), the 12,000 member
  professional association of hospital and facility managers
  and engineers launched  its Energy Efficiency Commitment
  (E2C) initiative to promote greater efficiency in health care
  facilities through ENERGY STAR.
• The efforts of the 10 leading associations representing
  state school boards,  superintendents, principals, facility
  planners, parents, and teachers were reflected in
  substantial increases in  the number of schools that have
  been rated for energy performance and recognized for
  leadership. Of the new ENERGY STAR Leaders in 2006,
  75 percent were K-12 school districts. To date, more school
  buildings have been rated than any other type of building.
28

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    FIGURE 14. BUILDING RATING AND ENERGY STAR BUILDING LABELING GAIN MOMENTUM
       CO
       z
       o

       a
       03.

       LLJ
       CJ


       00
       CD
       z



       3
               2001               2002             2003


              • LABELED SQ. FT.     • RATED SQ. FT.
2004
2005
2006
    FIGURE 15. BUILDING RATING ACTIVITY BY STATE
                                               Increasing Activity



                                               <25mm sq.ft.  25-75mm sq. ft. 75-150mm sq.ft.  >150mmsq. ft
ENERGY STAR® and Other Climate Protection Partnerships 2006 Annual Report
                                            29

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           • A growing number of states are requiring ENERGY STAR
             benchmarking as part of legislative requirements and
             executive orders designed to reduce the energy bills of
             public buildings. For example, the California Department of
             General Services is using ENERGY STAR benchmarking for
             the state's 250 largest buildings in response to the Governor's
             Green Building Initiative Executive Order. This is the first
             stage in benchmarking more than 1,600 state buildings and
             campuses. Texas has implemented an innovative business
             arrangement to provide energy management services
             and energy performance ratings to more than 7,000
             government buildings.

           Recognizing Outstanding Leadership. Recognizing
           excellence in energy management is a critical component of
           ENERGY STAR in the commercial sector. EPA recognizes
           leadership in two ways:

           • EPA honored 12 organizations as ENERGY STAR Partner of
             the Year for Energy Management and Service and Product
             Provider. An additional 11 organizations were recognized
             for sustained excellence, reflecting their outstanding
             commitment to strategic energy management (see p. 33).
           • EPA recognized 40 organizations nationwide as ENERGY
             STAR Leaders. They achieved continuous improvement of
             10,20, or 30 percent across their portfolios or an average
             portfolio-wide rating of 75 or better. These organizations
             represent more than 3,800 buildings and manage over
             200 million square feet of building space across the country.

           Rising  Use of Energy Performance Ratings. More
           buildings than ever have now been rated for energy
           efficiency, an important step in targeting energy efficiency
           improvements (see Figure 14, p. 29). Since its release in 1999,
           EPA's energy performance rating system has scored the
           energy use of individual commercial buildings on a scale of
           1 to 100 compared to the national stock of similar buildings.
           The system allows building owners to track energy
           performance overtime and target investments in energy
           efficiency. 2006 highlights include:

           • More than 30,000 buildings—representing over 5 billion
             square feet—have been rated to date  nationwide
             (see Figure 15, p. 29), including 42%  of hospital space,
             30% of supermarket space, 25% of office building
             space, 18% of school space, and 17% of hotel space
             (see Figure 16).
• ENERGY STAR Exchange Service (ESES) grew 80 percent in
  2006. ESES is an automated tool that facilitates rating through
  third-party servers, which makes energy rating easier for
  owners of large building portfolios. Ten energy service
  companies are now providing automated services to
  customers such as Accor Hotels, Food Lion, Giant Eagle,
  Marriott, and Providence Health Care.
• The California Benchmarking Work Group joined EPA, the
  state, investor-owned utilities, and  municipal utilities to
  enhance EPA's automated energy data transfer capabilities
  and allow utilities to directly upload energy data into
  Portfolio Manager accounts. This will  speed the
  benchmarking of thousands of buildings in California
  and across the country.
• EPA added the ability to track water use—another
  important measure of efficient management and
  environmental performance—to Portfolio Manager.

Recognizing Top Performing Buildings. Businesses
and public institutions that achieve a score of 75 or above in
EPA's energy performance rating system and meet industry
standards for indoor air quality can earn the ENERGY STAR
for superior energy performance. Labeled buildings consume
a bout 35 percent less energy than typical buildings, while
providing comparable comfort and services. About 400  of the
ENERGY STAR buildings use 50 percent  less energy than
average buildings. By the end of 2006:

• More than 3,200 highly efficient buildings had earned
  the ENERGY STAR for reducing their energy use and
  greenhouse gas emissions (see Figure 17). Representing
  almost 575 million square feet, the  buildings save an
  estimated $600 million annually on  their energy bills,
  relative to average buildings.
• ENERGY STAR labeled buildings included more than
  1,140 office buildings, 1,130 supermarkets, and 650 schools.
  More than 300 banks, courthouses, financial centers,
  hospitals, hotels, medical offices, and—for the first time—
  residence halls also earned the ENERGY STAR.
30

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                                                                           ENERGY STAR IN THE COMMERCIAL SECTOR
    FIGURE 16. CUMULATIVE BUILDINGS RATED BY TYPE
           2500
           2000
           1500
           1000
         QC
         C)
         C/}

                   Offices
Schools
Hospitals
Hotels      Supermarkets       Other
    FIGURE 17. MORE THAN 3,200 BUILDINGS HAVE EARNED THE ENERGY STAR LABEL
                                                                                  VERMONT  MAINE
                                                <20 Buildings   21-50 Buildings    51-100 Buildings    >100 Buildings
ENERGY STAR® and Other Climate Protection Partnerships 2006 Annual Report
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           Assistance with Performance Rating. In 2006,
           EPA continued to partner with organizations such as
           energy service providers, utilities, state energy groups, and
           administrators of public benefits funds to provide guidance to
           energy end-users about opportunities for improving energy
           performance and training to service providers on offering the
           performance rating service. In 2006:

           • California's largest investor-owned utilities, Pacific Gas
             & Electric, San Diego Gas & Electric, and Southern
             California Edison, integrated the EPA energy performance
             rating system into their new retro-commissioning programs
             to engage customers, measure baseline energy use, and
             track results.
           • Other utilities and program implementers, such as the
             Energy Trust of Oregon, Mid-American Energy, New York
             State Energy Research and Development Authority
             (NYSERDA), Wisconsin Focus on Energy, and Xcel Energy,
             also integrated the EPA performance rating into their
             building performance initiatives.
           • EPA and the National Association of Energy Service
             Companies (NAESCO) hosted networking seminars for
             nearly 300 energy service professionals to promote and
             educate ESCOs on ENERGY STAR. Additional regional
             networking meetings were held to bring SPPs together
             with end-users in order to build demand for energy
             efficiency related services and products. Training was
             provided on performance rating and other energy
             efficiency topics. Results include SPPs assisting their
             clients in achieving EPA  recognition and helping to rate the
             performance of more than 7,000 buildings in 2006.

           Enabling Small Businesses to Save Energy.
           More small businesses and faith-based organizations are
           taking the opportunity to reduce energy use cost-effectively
           through ENERGY STAR guidance (see p. 35). In addition to
           1,800 small organizations joining the ENERGY STAR network,
           many are finding assistance online, as their visits to the small
           business portion of the ENERGY STAR Web site numbered
           over 11,000 per month, the most activity for any sector.

           Efficient Commercial  Products. In addition to offering
           proven strategies for superior energy management, EPA
           promotes a number of efficient commercial products used
           throughout the public and  private sectors. In 2006, EPA
revised the specifications for ENERGY STAR qualified
computer and imaging equipment—which for the first time
address active power (see p. 34)—and vending machines.
EPA also initiated development of new specifications for
commercial food service equipment such as dishwashers
and icemakers, to help round out a full suite of commercial
kitchen products (see Table 12, p. 35).

Energy Efficiency is the First Step to Green.
EPA promotes energy efficiency as both a stand-alone goal
and a critical element of green buildings. In 2006, EPA worked
collaboratively with leading designers, states, federal
agencies, the American  Institute of Architects (AIA), and
green building rating organizations to develop green building
policies that effectively promote energy efficiency and reflect
the financial savings buildings can offer when well-designed.
Highlights  include:

• EPA challenged architects to achieve the American
  Institute  of Architects  50 percent fossil fuel reduction goal
  using EPA's energy performance targets.
• About 90 architecture and engineering (A&E) firms partnered
  with EPA and became eligible to use the "Designed to Earn
  the ENERGY STAR"  graphic on project drawings when the
  project meets EPA energy performance criteria.
• About 1,900 professionals in the A&E community were
  trained on the importance of setting energy targets during
  the design phase and  checking their design's estimated
  energy use against these targets  as projects mature.
• Seven states and the District of Columbia now include
  ENERGY STAR in their legislative or other efforts focused
  on energy efficiency or green buildings.
• The White House Summit on Federal Sustainable Buildings
  agreement outlines  guiding principles of design, energy
  performance, water conservation, indoor air quality, and
  sustainable materials that should be used  in federal
  facilities. It includes establishing energy performance
  targets and verification of those targets using EPA's energy
  performance rating  system.
32

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                                                                                           ENERGY STAR IN THE COMMERCIAL SECTOR
             USAA
SUSTAINED EXCELLENCE AWARD

USAA REAL ESTATE COMPANY  San Antonio,  Texas
                             USAA Real Estate Company, which owns and manages more than 22 million square feet of real estate, was
                             recognized as an ENERGY STAR Award winner for the fifth consecutive year. Through its long-term commitment
                             to continuous improvement in energy performance, USAA is reaping benefits year after year. In 2006, USAA
                             focused on operational and management practices, low-cost improvements, and better communications. These
                             efforts reduced energy consumption by more than 6% across the portfolio in 2006, for a total savings of nearly
                             23% over  the past 6 years. The company has attained the prestigious ENERGY STAR Leaders recognition for the
                             third straight year for an average portfolio rating above 75. USAA estimates that it has increased the asset value of
its portfolio by more than $30 million and prevented 89 million pounds of carbon dioxide from entering the atmosphere. USAAs senior
management continues to demonstrate its commitment to promoting industry change by sharing real estate best practices, designing and
implementing industry association-based market transformation programs, and communicating the value of energy  efficiency to  internal and external
stakeholders.
      USAA Real Estate Company
        Investor • Developer • Manager
     PARTNER OF THE YEAR—ENERGY MANAGEMENT

     DAVENPORT COMMUNITY SCHOOL  DISTRICT Davenport, Iowa
            jyvrn * r»T*   With 35 separate sites serving nearly 16,000 K—12 students in four communities, the Davenport Community School
      COMMUNITY    District is the third largest school district in Iowa. An ENERGY STAR partner since 1998, the district has assessed the
      *5 (__, J-J (J (J ]_ "5    energy performance of 100% of its schools, undertaken improvements, elevated the average rating across the portfolio by
                            10%, and achieved a portfolio-wide average rating of 75 or better. The benefits of the district's energy program include
     reducing costs per student to $88.46 per school year (compared to the national average of $181.53 per student in 2004—2005) and realizing energy
     savings of more than $1 million over 3 years. The success starts with leadership at the top—the superintendent and school board. It also includes
     school principals, custodians, administrators, teachers, and students. The district's energy program concentrates on typical investments in building
     systems, but it also believes that a very strong component of responsible  energy use is changing behavior. By participating in activities such as the
     ENERGY STAR Change a Light, Change the World campaign and awarding high-performing schools ENERGY STAR qualified computers, the
     district believes  that modeling responsible energy efficiency to students will help bring a better environment for future generations.
     J.C. PENNEY COMPANY, INC. Piano, Texas
                      J.C. Penney, has made a long-term commitment to its Energy Conservation Culture, demonstrated by its investments in
                      efficiency upgrades and expansion of the company's Energy Team. In 2006, J.C. Penney reduced energy use by 1.4 to 3% across
                      its operations, while expanding store hours and opening 28 new stores. The company participated in the 2006 ENERGY STAR
                      Change a Light, Change the World campaign and is helping its 150,000 associates participate in the 2007 campaign. As a leading
                      participant in the ENERGY STAR Retail Networking Group, J.C. Penney has exchanged best energy management practices with
                      other retailers and helped develop and test the upcoming ENERGY STAR rating for retail benchmarking.
 Every Day Matters
      lcp.com
     SHRINERS HOSPITALS FOR CHILDREN  Houston, Texas
       ^Shriners
                    The Houston Shriners Hospital is a 40-bed pediatric hospital providing comprehensive orthopedic care to children at no cost.
                    Shriners' CEO in Houston recognizes that every dollar saved enables the hospital to treat a greater number of children,
     [ HOSDltOIS    purchase new medical technology, and fund more research. Shriners-Houston joined ENERGY STAR in 2003 after learning its
                    energy performance was less than the industry average. The director of engineering and maintenance created an internal energy
                    team with one goal: to achieve the ENERGY STAR for the facility utilizing in-house labor and without increasing the
operations budget. The hospital succeeded dramatically, earning the ENERGY STAR label 4 years in a row and raising its energy performance rating
by 49 points. In 2006, the hospital continued lighting retrofits, installed occupancy sensors and high efficiency motors, replaced inefficient
computers, improved operations, and saved another $21,500  in energy costs. Its performance rating climbed to 91. Shriners-Houston shares best
practices through association conferences, newsletters, local magazines, and industry trade publications.
     Highlights of more 2006 Award winners may be found at energystar.gov/awards.
ENERGY STAR® and Other Climate Protection Partnerships 2006 Annual Report
                                                                                                                                 33

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           What to Expect in 2007 and Beyond
           EPA will continue to work with its commercial sector partners
           to promote energy management and improvements in
           building energy use. Specifically, EPA will:

           • Expand the reach  of the ENERGY STAR Challenge by
             working with a number of key public and private
             organizations, such as the U.S. Conference of Mayors,
             National Association of Auto Dealers,  and American Bar
             Association, and continue to work with existing Challenge
             participants in outreach around the Challenge.
           • Refine EPA's energy performance  rating system by
             releasing a new retail and a revised office model, as well
             as expanding  ENERGY STAR Leaders to include non-ratable
             spaces, starting with those owned by local governments.
             EPA will also expand automated benchmarking services
             and enable large-scale benchmarking  of hundreds of
             publicly-owned facilities in Ohio, Minnesota, and other
             states.
           • Collaborate with the CoStar Group—the nation's largest
             multiple listing service for the sale and lease of commercial
             properties with over 2 million properties in its database—
             as it launches an initiative to help  clients identify properties
             that have earned the ENERGY STAR.
• Continue to integrate EPA's energy performance rating
  system and other ENERGY STAR tools and resources into
  the energy efficiency programs of utilities and other
  regional program initiatives.
• Enhance the tools supporting the ENERGY STAR Challenge
  by developing a "Next Steps" technical guidance;
  completing an update to EPA's Building Upgrade Manual',
  and finalizing a retro-commissioning guide.
• Expand collaboration with the 2030 Challenge and AIA and
  ensure the ENERGY STAR tools complement their efforts.
• Finalize new or revised product specifications for ENERGY
  STAR qualified  commercial dishwashers, commercial
  icemakers, and roofing products. EPA will also initiate
  specification revisions for servers, computer monitors, and
  commercial solid door refrigerators and freezers.
•Work with EPA's Office of Water to develop and implement
  water tracking, benchmarking, and improvement.
• Recognize organizations that practice superior energy
  management through Partner of the Year and ENERGY
  STAR Leaders.
           Making Offices More Efficient: ENERGY STAR Computers and Imaging Equipment
                                           In 2006, EPA finalized revised specifications for ENERGY STAR qualified computers and imaging
                                           equipment. Computers, which were the first product category eligible to earn the ENERGY STAR label,
                                           use nearly 58 billion kWh annually, or about 2% of total U.S. electricity consumption. Computers
                                           earning the label will be 20-50% more efficient than standard models and will include desktop and
                                           notebook computers, game consoles, integrated computer systems, desktop-derived servers, and
                                           workstations. Over the next 5 years, these products will save consumers and businesses about $1.8 billion
                                           and avoid greenhouse gas emissions equivalent to those from 2.7 million vehicles. The updated imaging
                                           specification is expected to bring even greater savings to Americans: $3 billion and GHG emissions
                                           equivalent to more than 4 million vehicles. Products bearing the label under the updated specification—
                                           including printers, fax machines, multi-function devices, scanners, and mail machines—will use
                                           approximately 25% less energy. Currently, the 260 million pieces of imaging equipment in use
                                           nationwide consume approximately 3% of U.S. electricity demand and $7.5 billion in energy costs.
34

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                                                                              ENERGY STAR IN THE COMMERCIAL SECTOR
    EPA RECOGNIZES SMALL BUSINESSES

    By the end of 2006, more than 1,800 small businesses and congregations were partnering with EPA through the ENERGY STAR
    program. By using ENERGY STAR tools to improve their energy efficiency, these organizations are leading their communities
    in environmental stewardship while reducing energy costs. In 2006, EPA honored 11 small businesses and congregations
    from across the country as part of the ENERGY STAR Small Business and Congregation awards.
     THE 2006 ENERGY STAR SMALL BUSINESS WINNERS
     Basil Bandwagon Natural Market
       and Basil Brook Organic Farm
     Flemington, NJ

     Gehman & Company
     Mechanicsburg, PA

     Myobz LLC
     Carlsbad, CA

     RBR-Recumbent Bike Riders, Inc.
     State College, PA
          Susquehanna Fire Equipment Co.
          Dewart, PA

          The Music Mart, Inc.
          State College, PA

          T.J.'s Market
          Hughesville, PA

          Tripps Grill and Six Pack
          North Bend, PA
2006 ENERGY STAR CONGREGATION WINNERS
Keystone Community Church
Ada, Ml

San Francisco Zen Center
San Francisco, CA
2006 SPECIAL AWARD
Michigan Interfaith Power and Light
East Lansing, Ml
    TABLE 12. ENERGY STAR COMMERCIAL PRODUCT SPECIFICATIONS ADDED, REVISED, AND IN PROGRESS
PRODUCT CATEGORY
Commercial Dishwashers
Commercial Icemakers
Computers
Imaging Equipment
Roofing
Vending Machines
YEAR INTRODUCED
AND (YEAR REVISED)


1992 (2006)
1993 (1994, 1995, 1997, 2006)
1999
2004 (2006)
AGENCY
RESPONSIBLE
EPA
EPA
EPA
EPA
EPA
EPA
STATUS OF ACTIVITY IN 2006
New specification initiated in 2006.
New specification initiated in 2006.
Revision completed. Revised
specification to take effect in 2007.
Revision completed. Revised
specification to take effect in 2007.
In progress.
Revision completed. Revised
specification to take effect in 2007.
    PARTNER OF THE YEAR—PRODUCT MANUFACTURER

    AGA FOODSERVICE EQUIPMENT Cherry Hill, New Jersey
     FOODSERVICE EQUIPMENT
AGA Foodservice Equipment's component companies and parent organization are committed to building products

that are category leaders in efficiency. AGA companies produce commercial kitchen equipment with advanced design

and technology that reduce energy, water, and oil consumption. The flagship company, Victory Refrigeration, is the

leader in ENERGY STAR commercial refrigerators and freezers, with more than 420 qualified models. AGA's

companies promote ENERGY STAR to customers, restaurant designers, and others through conferences, training,

trade shows, and educational presentations.
    Highlights of more 2006 Award winners may be found at energystar.gov/awards.
ENERGY STAR® and Other Climate Protection Partnerships 2006 Annual Report
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           ENERGY  STAR  IN  THE INDUSTRIAL SECTOR
           Higher energy prices and concerns about global warming
           have bolstered EPA's industrial program efforts and helped
           EPA engage more sectors and new participants. These
           industries look to ENERGY STAR as they search for ways to
           strategically manage energy, improve overall energy
           efficiency, and earn distinction as environmental stewards.
           EPA's guidelines for energy management, energy
           performance measurement tools, and peer exchange
           networks enable manufacturers to measure, monitor,
           manage, and continuously improve their energy use while
           working to minimize their energy risks.

           Achievements in 2006
           Industrial  Focuses Boost Energy Savings. While
           many of the energy and environmental issues facing
           manufacturers are similar, every individual industrial sector
           has its own barriers to energy efficiency. To address those
           unique challenges, EPA collaborates with its partners to
           develop tailored Industrial Focuses. For each focus industry,
           EPA, along with  its industry partners, develops plant-level
           energy performance indicators (EPIs), provides peer exchange
           opportunities, and publishes guidance on overcoming sector-
           specific barriers to energy efficiency. As of 2006,10 industries
           were actively engaged with EPA in these Industrial Focuses
           (see Table 13). Highlights  of 2006 include:

           • Adding two new focus industries—petrochemicals and
            pulp and paper—creating peer exchange networks,  and
            initiating studies of energy performance measurement tools
            and industry-specific best practices.
           •Advancing current industry  focus partnerships with
            automobile manufacturing, cement, corn refining, food
            processing, glass, Pharmaceuticals, petroleum refining, and
            water/wastewater treatment industries.

           • Releasing new EPIs for U.S. cement and  corn refining
            plants and issuing three additional EPIs for glass and food
            processing plants for industry testing.

           • Awarding the  ENERGY STAR for the first time to 20 top
            performing manufacturing plants in the auto assembly,
            cement, and corn refining industries, where EPIs have been
            established (see Table 14, p. 39). The ENERGY STAR can be
            used on a plant banner or flag to recognize facilities  whose
            energy performance is  in the top 25 percent for that
  industry nationwide. Already it has been found to help
  stimulate improved energy performance across a
  company's entire set of plants.
• Expanding the suite of energy guides available to industrial
  partners by releasing final guides for the petroleum and
  pharmaceutical industries and draft energy guides for food
  processing and glass manufacturing.
• Sharing best practices across the ENERGY STAR focus
  industries at the annual meetings of relevant industries in
  concert with the Association of Energy Engineer's World
  Energy Engineering Congress.
• Developing draft guidance for facility-level benchmarking
  to facilitate this practice where EPIs have yet to  be
  developed.
Broad Industrial Partnerships. EPA supports partners
from a wide variety of industrial sectors beyond the focus
industries. Energy management resources available for these
partners include the core materials for effective energy
management on the ENERGY STAR Web site, communication
materials, an active network of energy managers, and
recognition for superior energy management. In 2006:

• More than 450 partners, spanning a broad range of
  industrial sectors, used ENERGY STAR tools to improve
  their energy management.
• EPA released a  new broadly applicable tool—the Facility
  Energy Program Assessment Matrix—to help companies
  large and small  assess energy management practices at
  the plant and  facility levels and bring better energy
  management practices to all those who have direct impact
  on energy use.
• EPA's peer exchange network grew by 8 percent. These
  430 participants, representing nearly 175 organizations,
  discussed topics such as energy and greenhouse gas
  management, the value of sub-metering in controlling
  energy use, and common technologies for reducing energy
  use in facilities.
• ENERGY STAR partners worked with EPA to increase
  consumer awareness of the environmental benefits of
  energy-efficient lighting  by encouraging employees to take
  the ENERGY STAR Change a Light, Change the World
  pledge. Several industrial partners were among the most
  active pledge drivers in the country.
36

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    TABLE 13. SUMMARY OF EPA ENERGY STAR INDUSTRIAL FOCUSES
FOCUS
Cement
Manufacturing
Corn Refining
Food Processing
Glass
Manufacturing
Motor Vehicle
Manufacturing
Petrochemical
Manufacturing
Petroleum Industry
Pharmaceuticals
Pulp & Paper
Water and
Wastewater
YEARS
ACTIVE
3
4
1
1
5
New
2
2
New
1
PEER
EXCHANGE
OPPORTUNITY
50 percent of U.S. -based clinker [1]*
production capacity
95 percent of U.S. -based refining
capacity
80 percent of U.S. processed fruit, 0
vegetable, and grain sales
50 percent of U.S. flat, container, and ,
fiberglass sales
75 percent of the industry with U.S.-
based production
83 percent of U.S. ethylene production 0
capacity
64 percent of U.S. -based refining 0
capacity
Over 50 percent of the global and
U.S. manufacturing capacity
70 percent of U.S. -based companies' 0
global sales
40 percent of the total U.S. population
represented
INDUSTRY
ENERGY
GUIDE
Complete
Complete
In process
In process
Complete
In process
Complete
Complete
In process
In process
ENERGY
PERFORMANCE
INDICATOR
Final
Final
In process
In process
Final, updating
Exploring options
Private system
recognized by EPA
In process
Exploring options
In process
    [11 Clinker is the output from a cement kiln.
    "U.S. Census Bureau, December 2006 and2005.
     PARTNERS OF THE YEAR—INDUSTRIAL SECTOR

     PEPSICO Purchase, New York
                              PepsiCo has a corporate sustainability vision to continuously improve the world—with ENERGY STAR and energy
                              management as key components. In 2006, PepsiCo expanded its awarding-winning energy program across all food and
                              beverage manufacturing companies, reducing energy intensity by 6% and avoiding an estimated $14 million in utility
                              costs. At the same time, PepsiCo encouraged its suppliers to establish energy goals and join the ENERGY STAR
     partnership. The company has been an active supporter and contributor to ENERGY STAR initiatives and the ENERGY STAR Change a Light,
     Change the World campaign. PepsiCo's energy savings represent the equivalent sales of 33 million bottles of Gatorade, 14 million boxes of cereal, or 25
     million bags of Lay's potato chips.
             >Today
     MERCK & CO., INC. White house Station, New Jersey
             MERCK
                           At the start of 2006, Merck's three most senior executives issued a call to action for all employees to do their part in
                           making the company the "most competitive energy steward in the pharmaceutical industry" by reducing energy use
                           by 25% by 2008. Merck played a leading role in the ENERGY STAR Pharmaceutical Industrial Focus and through
                           its Global Energy Team initiatives, it has set a strong example with a 9.4% decrease in energy intensity
in 2006 alone. Merck also promotes ENERGY STAR to employees through energy efficiency education materials and shares best practices with
other manufacturers.
    Highlights of more 2006 Award winners may be found at energystar.gov/awards.
ENERGY STAR® and Other Climate Protection Partnerships 2006 Annual Report
                                                                                                                            37

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           Recognizing Leadership in Industrial Energy
           Efficiency. EPA recognized three ENERGY STAR industrial
           partners with the honor of Sustained Excellence in Energy
           Management for 2006:3M, Toyota Motor Manufacturing
           North America, and California Portland Cement Company
           (see p. 39). Sustained Excellence awardees continually
           challenge their organizations to improve  energy efficiency
           and consistently achieve impressive results. Each
           organization has an advanced energy strategy that reaches
           beyond the company to impact energy upstream and
           downstream, and each firm annually achieves substantial
           energy savings. Four additional industrial partners were
           recognized as ENERGY STAR Partners of the Year in  2006
           (see two examples, p. 37).

           Financial Signals for Sound Energy Management.
           EPA worked with the financial sector to educate investors
           and analysts on the value of strong corporate energy
           management programs, the role of energy efficiency in
           corporate GHG management, and available resources for
           evaluating energy management practices and strategies.
           Highlights include:

           • Collaborating with the Carbon Disclosure Project, Merrill
             Lynch, and major institutional investors to discuss  best
             practices in  evaluating voluntary efforts to reduce
             greenhouse gas  emissions.
           • A series of papers and articles on the role that EPA's
             climate protection programs play in helping leading
             companies reduce energy costs and greenhouse gas
             emissions.
           EPA also collaborated  with senior energy directors and
           managers from a variety of U.S. corporations to develop four
           scenarios of the world energy scene through  the year 2020.
           These scenarios pose  specific challenges to senior corporate
           executives as  they seek to manage their companies
           successfully in the face of an uncertain future.


           What to Expect in  2007 and Beyond
           In the coming years, EPA will continue to partner with
           hundreds of new and existing industrial organizations to
           break down the market barriers that stifle energy efficiency.
EPA will:
• Continue the Industrial Focuses with the 10 participating
  sectors. EPA expects to finalize two industrial EPIs in
  2007—for the freezing and canning of fruits and vegetables
  and the glass production industries—and issue an updated
  EPI for auto assembly.

• Progress in the development of EPIs for other sectors.
  EPA will also expand the scope of some of the Industrial
  Focuses, based on the sector's interests, to include
  additional energy efficiency opportunities. These
  expansions include looking beyond vehicle assembly
  operations with the vehicle manufacturers, developing
  a second  EPI for the food industry for cereal production
  plants, and investigating the possibility of developing a
  third EPI for glass producers that will  address glass
  fiber plants.
• Continue to support peer exchange forums for these
  industrial  sectors as well as convene  initial meetings as
  new Focuses are formed.
• Expand the system for labeling energy-efficient U.S.-
  based plants with the ENERGY STAR.  EPA expects that
  plants engaged in freezing and/or canning fruits and
  vegetables and those that manufacture glass will be
  eligible to earn the ENERGY STAR by the end of 2007.
• Finalize and publish draft guidance for non-EPI industry
  facility benchmarking.
• Expand the capability of companies to  benchmark or rate
  the energy performance of all types of facilities by
  producing a guide on how to more generally benchmark
  energy use, as a cornerstone to effective energy
  management.
• Continue to work with leading U.S. business executives
  to identify the advanced energy management strategies
  that can be used to manage energy effectively and
  competitively over the next decade.
• Continue to recognize excellence  in industrial energy
  management through annual awards.
38

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                                                                                     ENERGY STAR IN THE INDUSTRIAL SECTOR
    TABLE 14. EPA INTRODUCES THE ENERGY STAR LABEL FOR SUPERIOR ENERGY MANAGEMENT OF
               INDUSTRIAL PLANTS
      AUTO ASSEMBLY
      The Ford Motor Company assembly plant in Chicago, IL
      The Ford Motor Company assembly plant in St. Paul, MN
      The Ford Motor Company assembly plant in Claycomo, MO
      The Ford Motor Company assembly plant in Norfolk, VA
      The Nissan North America, Inc. assembly plant in Canton, Ml
      The Nissan North America, Inc. assembly plant in Smyrna, TN
      The Toyota Motor Engineering & Manufacturing North America, Inc. car assembly plant (NUMMI passenger) in Fremont, CA
      The Toyota Motor Engineering & Manufacturing North America, Inc. assembly plant (NUMMI truck) in Fremont, CA
      The Toyota Motor Engineering & Manufacturing North America, Inc. assembly plant (TMMI East) in Princeton, IN
      The Toyota Motor Engineering & Manufacturing North America, Inc. assembly plant (TMMI West) in Princeton, IN
      The Toyota Motor Engineering & Manufacturing North America, Inc. assembly plant (TMMK Plant 1) in Georgetown, KY
      The Toyota Motor Engineering & Manufacturing North America, Inc. assembly plant (TMMK Plant 2) in Georgetown, KY
      CEMENT
      The Ash Grove Cement Company plant in Chanute, KS
      The Ash Grove Cement Company plant in Seattle, WA
      The California Portland Cement Company plant in Colton, CA
      The California Portland Cement Company plant in Mojave, CA
      The Lafarge North America plant in Calera, AL
      The Lafarge North America plant in Sugar Creek, MO
      WET CORN MILLING
      The Penford Products Company plant in Cedar Rapids, IA
      The Tate and Lyle Ingredients Americas Inc. Sagamore plant in Lafayette, IN
                           Meets U.S. EPA
                           Guidelines for
                           Superior
                           Energy Efficiency
                           2006
SUSTAINED EXCELLENCE AWARD

CALIFORNIA PORTLAND CEMENT COMPANY
Glendora, CA
California Portland Cement Company (CPC) manufactures cement, concrete,
concrete products, and aggregates and continues to be a strong proponent of
energy efficiency in the cement and concrete manufacturing industries. The
company instituted a corporate-wide energy program in 2003, which now
includes investment in new energy-efficient plant technologies, wholesale
employee energy education, and plant benchmarking of energy using the
ENERGY STAR cement plant energy performance indicator.  In 2006, two
of its plants were among the first in the industry to earn the ENERGY STAR.
And, California Portland Cement saved 224 billion Btus — equal to the energy
used to power about 3,000 American homes.
Highlights of more 2006 Award
energystar.gov/awards.
                                                                                        inners may be found at
                                                             CPC's Mojave Plant was one of six U.S. cement plants to earn the ENERGY STAR label in 2006.
ENERGY STAR® and Other Climate Protection Partnerships 2006 Annual Report
                                                              39

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           PROGRAM EVALUATION: MEASURING RESULTS IN THE ENERGY STAR PROGRAM
           In 2006 alone, the ENERGY STAR program helped Americans save about $14 billion on their energy bills while avoiding more
           than 37 million metric tons of greenhouse gas emissions. However, these are only a small portion of the cumulative $150 billion and
           almost 500 million metric tons EPA estimates are currently attributable to ENERGY STAR programs between 1993 and 2016.10
           The methodologies used to derive these annual and cumulative benefits in this report are described below.
           The cumulative estimated benefits reflect the stream of energy savings that will persist through 2016 due  to technology investments
           and product purchases made by ENERGY STAR partners through 2006. The results for all programs address the potential for
           double-counting benefits between programs and  do not include benefits potentially attributable to pre-existing trends or third-party
           promotion efforts.
           PRODUCTS
           • Sales of products due to the ENERGY STAR program are
             determined as those above and beyond established business-
             as-usual (BAU) purchases of these products.  These sales are
             estimated by:
               • Collecting annual sales  data on ENERGY STAR
                 qualifying products from participating product
                 manufacturers as a condition of partnership and
                 supplementing these  data by industry reports on total
                 annual product sales  as  necessary. These data are
                 screened and issues resolved.
               • Using established BAU baselines for annual product
                 sales for each product category. These baselines use
                 historic data and expert judgment and typically reflect
                 increasing market shares for efficient products and
                 increasing product efficiencies over time.
           • Annual energy savings are calculated using established values
             for the difference in annual  energy use between a single
             ENERGY STAR product and a typically purchased product.
             For these values, EPA:
               • Assumes that ENERGY STAR products just meet the
                 ENERGY STAR thresholds, even though there are some
                 products that exceed  this  level.
               • Assumes the typically purchased product meets
                 minimum efficiency standards where standards exist or
                 uses the average energy use for the product category
                 where there are no standards.
    • Supports primary data collection, such as product
     metering to collect power use information, where
     additional information is necessary to estimate
     energy savings.
    • Uses product specific lifetimes that vary from 4 to 20
     years. While those who purchase an ENERGY STAR
     qualified product are likely to replace it with one, EPA
     includes only a fraction of replacement purchases and
     investments in the program benefits.
1 Peak power savings are estimated using product-specific
 factors that reflect the contribution of the annual energy
 savings from a product to peak load savings.
1 Net energy bill savings is the present value (PV) of energy
 bill savings minus the PV of any incremental cost  of
 purchasing an ENERGY STAR product above a standard
 model over the product lifetimes discussed above.12 All
 energy bill calculations use national sector-specific fuel
 prices.
1 Avoided emissions  of greenhouse gases for 2006 are
 determined using marginal  emissions factors for CO2 based
 on historical emissions data from EPA's eGRID database.13
 For future years, EPA uses factors derived from energy
 efficiency scenario  runs of the integrated utility dispatch
 model, Integrated Planning Model (IPM®).14
40
           10 A full summary of the ENERGY STAR program's annual and cumulative financial and environmental benefits can be found in Table 1 on page 3 of this report.
           11 For more details on many aspects of this method, see Sanchez 2006 and Weber 2000.
             Calculated using a 7% discount rate and 2006 perspective.
           13 For more details on eGRID, see U.S. EPA, 2007a.
           14 For more details on IPM, see U.S. EPA, 2006.
           15 For more details on many aspects of the previous methods, see Horowitz, M.J., 2004 and 2001.
           16 For more details on many aspects of this method, see Horowitz, M.J., 2007a and 2007b.
             For more details on many aspects of this method, see Horowitz, M.J., 2007.

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    NEW HOMES
    • EPA receives data quarterly from third-party verifiers (home
      energy raters) on the number of homes they verified to be
      ENERGY STAR, as a condition of program partnership.
      These raters abide by a set of quality assurance practices to
      ensure data quality. In addition, EPA reviews the submitted
      data and resolves any data irregularities.
    • EPA recognizes that some new homes that qualify for
      ENERGY STAR are not a direct result of the program and
      that many homes built to ENERGY STAR levels due to the
      program are not labeled or reported to the program.
      Currently, EPA estimates the former number of homes to be
      lower than the latter.
    • Annual energy savings are calculated using established values
      for the energy savings from a home that meets the ENERGY
      STAR level relative to a home built to code. Energy bill
      savings are calculated using a similar approach  as for products
      and average national energy prices for the residential sector.
      The average lifetime of a home for both energy and billing
      savings is 30 years.
    • Peak power savings and avoided emissions of greenhouse
      gases are determined using approaches similar to those
      described for products.

    INDUSTRY
    • Annual industrial electricity savings are determined using a
      peer-reviewed methodology similar to that used for the
      commercial sector.  The methodology distinguishes electricity
      savings due to ENERGY STAR from those due to utility run
      demand-side management (DSM) programs and other market
      transformation programs such as DOE's Industrial
      Technology Program (ITP). Greenhouse gas emissions are
      calculated using marginal CO2 emissions as with products.
    • For annual savings from natural gas and other fuels, industrial
      partners continue to either submit greenhouse  gas emissions
      reductions reports through the federal Voluntary Reporting of
      Greenhouse Gases Program (1605(b)), or, in a small number
      of cases, work with EPA on an individual basis to estimate
      their emissions reductions. EPA reviews these submissions and
      adjusts the reported results to account for  BAU improvements,
      structural changes in the sector that do not reflect efficiency
      improvements such as plant sales or closures, and program
      benefits attributable to the commercial building efforts or
      other federal programs.  Process-related actions  are included in
      the  results, whereas activities such  as recycling, lighting
      improvements, and transportation improvements are not.
COMMERCIAL BUILDINGS
• Annual electricity savings are determined based on a peer-
 reviewed methodology developed for the commercial building
 sector.  The methodology involves a counterfactual
 econometric analysis that forecasts state level electricity use in
 the absence of commercial building energy efficiency
 programs. Key determinants of electricity demand that are
 controlled for in the analysis include  state energy prices,
 weather conditions, economic  conditions, and the long-term
 U.S. trend in commercial sector electronic technologies. Once
 the net national change in electricity  use due to publicly-
 funded energy efficiency programs is  calculated,  ENERGY
 STAR accomplishments are differentiated from other national
 and regional DSM and market transformation programs,
 including DOE's Rebuild and  FEMP programs, so that
 ENERGY STAR savings do not overlap with those efforts.
 The methodology used for 2006 is an update of two former
 peer-reviewed methodologies used by EPA; nevertheless, the
 results of all three methodologies yield consistent estimates of
 ENERGY STAR accomplishments.17
• The peak power savings are estimated using system-specific
 factors that reflect the contribution of the energy savings
 from lighting and other building improvements to peak
 load savings.
• As with products, net energy bill savings reflect the
 incremental investment necessary to upgrade the building to
 ENERGY STAR specifications determined by using  simple
 payback period decision criteria.  EPA assumes most building
 and industrial facility improvements last at least 10 years and
 uses national commercial sector fuel prices.
• Avoided emissions of greenhouse gases are determined using
 marginal emissions factors for  CO2 as with products.
ENERGY STAR® and Other Climate Protection Partnerships 2006 Annual Report
                                                         41

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           CLEAN  ENERGY SUPPLY  PROGRAMS
           EPA announced two new partnership programs designed to
           increase the supply of clean energy technologies in the
           United States in 2001  in response to the President's National
           Energy Policy. Both the Green Power Partnership and the
           Combined Heat and Power Partnership have made
           tremendous progress over the past 5 years in providing cost-
           effective solutions for their partners and facilitating the
           explosive growth of green electricity generation and
           environmentally beneficial combined heat and power (CHP)
           across the country.

           EPA's two Clean Energy Supply programs are dismantling
           market barriers by offering their hundreds of partners
           technical resources, credible benchmarks, access to
           expertise, and recognition for environmental leadership.
           Clean energy also brings environmental benefits such as
           the reduction of greenhouse gas emissions and criteria
           pollutants. The results have been impressive; in 2006 alone,
           EPA's Clean Energy Supply programs reduced greenhouse
           gas emissions by 3.7 MMTCE (see Table 15).


           Green Power Partnership
                             Organizations ranging from Fortune 500
                 POWER  corP°rat'ons to neighborhood
                      ERSHIP  businesses, large public universities to
           small private colleges, local communities to city, state, and
           federal government agencies all significantly increased their
           participation in EPA's Green Power Partnership in 2006.
           Partners continue to use electricity purchases from green
           power resources as an easy and compelling way to reduce
           the environmental impact of their operations, hedge against
           volatile energy prices, increase employee and stakeholder
           morale, and demonstrate environmental leadership.
           In 2006, the Green Power Partnership:
           • Increased the total number of partners to more than 650, with
            150 new partners joining in 2006. These partners have
            committed to buying almost? billion kWh annually of green
            power, a 76-percent increase over 2005, and enough to run
            more than 575,000 average American homes (see Figure 18).
           • Launched the Fortune 500 Green Power  Challenge, a
            year-long initiative to double the collective green power
            purchases of eligible Fortune 500 corporations from
  2.5 billion kWh annually to 5 billion kWh. Participating
  companies at the time of the launch included Wells Fargo
  & Company, Whole Foods Market, Johnson & Johnson,
  Starbucks, and the DuPont Company.
• Sponsored the College & University Green Power Challenge,
  which runs through April 2007 and ranks partner schools'
  purchases of green power against others in their athletic
  conference.
• Presented 18 Green Power Leadership Awards to top
  purchasers of green power and on-site renewable power
  systems (see p. 43).
• Introduced quarterly updated Top Partner lists for retail,
  college & university, local government, and federal
  government partners.
• Updated the program requirements to reflect the evolving
  green power marketplace.

What to Expect in 2007 and Beyond
EPA will aggressively promote the Fortune 500 Green Power
Challenge to current and prospective Fortune 500 partners,
and will recognize the winners of the first College & University
Green Power Challenge in April  2007. EPA will continue to
work with green power suppliers to increase the supply of
attractive green power products in the market. The program
anticipates strong growth again in 2007 and has a goal of
reaching almost 11  billion kWh in annual green power by
year's end.


Combined Heat and Power Partnership
    CHP
                The CHP Partnership seeks to reduce the
                environmental impact of power generation
                by promoting the use of combined heat
and power as an efficient, clean, and reliable approach to
generating power and thermal energy from a single fuel
source. CHP projects are up to 35 percent more efficient
than traditional separate heat and power generation. The
Partnership works closely with energy users, the CHP
industry, state and local governments, and  other stakeholders
to support the development of new projects and promote
their energy, environmental, and economic benefits. The
program is playing a vital role in efforts  to achieve the
national goal of doubling the  capacity of CHP in the United
States to 92 gigawatts (GW) by 2010.
42

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    FIGURE 18. GREEN POWER PURCHASES AND AVOIDED GHG EMISSIONS ALMOST DOUBLED IN 2006
         CQ


8.0

7.0_

6.0-

5.0 _

4.0_
    3.0 -\
\jj

I  2.0 _|

<  1.0 _
•2.
<  0
                   2001
                            IkWh
                            iMMTCE



                                                                                    _0.6
                                                                                             _0.4

                                                                                             L0.2

                       2002
                                 2003
2004
2005
2006
                                                                                                  CD
    EPA RECOGNIZES 18 LEADING GREEN POWER PARTNERS IN 2006
     GREEN POWER PARTNER OF THE YEAR
     Aspen Skiing Company
     HSBC - North America
     Johnson & Johnson
     Starbucks Coffee Company
     Whole Foods Market
                        Aspen, CO
                        Buffalo, NY
                        New Brunswick, NJ
                        Seattle, WA
                        Austin, TX
     GREEN POWER ON-SITE GENERATION AWARD
     Chena Hot Springs Resort       Fairbanks, AK
     County of Butte, CA
     Government Center            Oroville, CA
     San Diego Unified School District San Diego, CA
                                                GREEN POWER PURCHASING AWARD
                                            Coldwater Creek
                                            Commonwealth of Pennsylvania
                                            IBM
                                            PrAna
                                            Staples
                                            Stonyfield Farm
                                            The Holland, Inc.
                                            Tower Companies
                                            Vail Resorts
                                            WhiteWave Foods, Inc.
                         Sandpoint, ID
                         Harrisburg, PA
                         Armonk, NY
                         Vista, CA
                         Framingham, MA
                         Londonderry, NH
                         Vancouver, WA
                         N. Bethesda, MD
                         Vail, CO
                         Boulder, CO
    TABLE 15. GREENHOUSE GAS EMISSIONS AVOIDED BY EPA'S CLEAN ENERGY SUPPLY PROGRAMS (MMTCE)

Clean Energy
Supply Programs

0.6

1.0

2.0

3.2

3.7
ENERGY STAR® and Other Climate Protection Partnerships 2006 Annual Report
                                                                                               43

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           In 2006, the CHP Partnership:
What to Expect in 2007 and Beyond
            Grew to 200 Partners with 22 new partners and assisted
            the deployment of over 100 MW of new CHP nationwide,
            bringing the cumulative impact of the program to over
            3,500 MW of new CHP (see Figure  19).

            Provided technical assistance to 30 candidate sites across
            the country, including those in the municipal, utility,
            biofuels, industrial, and financial sectors.

            Provided public support and recognition for highly efficient
            CHP projects, including a 2006 Partnership Certificate of
            Recognition for the University of New Mexico and a 2006
            ENERGY STAR CHP Award for Exxon Mobil's Baytown
            Refinery—one of the largest customer-sited CHP systems
            in the country (see p. 45).

            Collaborated with states, regional organizations, and other
            federal agencies to promote CHP as an efficient application
            for  biomass fuels.

            Offered training and ongoing support to the air regulatory
            community on the benefits of CHP and highlighted
            opportunities to encourage CHP through permitting and
            other regulatory frameworks.
EPA will continue to provide assistance in the development of
CHP projects and expand its work with strategic sectors,
including the rapidly growing ethanol industry. EPA will foster
partnerships between rural electricity producers and
facilities needing thermal energy for mutually beneficial
economic and environmental projects. The CHP program will
also begin outreach to municipalities on opportunities for
CHP at water/wastewater treatment facilities.

In addition to its project-level CHP efforts, EPA will continue
to reach out to states and municipalities and provide
technical information on state energy, environmental, and
utility practices that encourage environmentally beneficial
CHP. A new Biomass Catalog of'Technologies will be released
to assist CHP industry partners, policymakers, and potential
project managers in their efforts to use biomass and biogas
to produce heat and power.
           PROGRAM EVALUATION: MEASURING RESULTS IN THE CLEAN ENERGY SUPPLY PROGRAMS
             COMBINED HEAT AND POWER PARTNERSHIP

             Program partners such as project owners voluntarily
             provide project-specific information on newly
             operational CHP projects to EPA. These data are
             screened and any issues  resolved.
             Energy savings are determined on a project-by-project
             basis, based on fuel type, system capacity, and
             operational profile. Estimates of the use of fossil and
             renewable fuels are developed, as well as the efficiency
             of thermal and electrical use or generation, as
             appropriate.
             Emissions reductions are calculated on a project-by-
             project basis to reflect the greater efficiency of on-site
             CHP. Avoided emissions of greenhouse gases from more
             efficient energy generation are determined using
             marginal emissions factors derived from energy
             efficiency scenario runs of an integrated  utility dispatch
             model—Integrated Planning  Model (IPM®)—and
             displaced emissions from boiler produced thermal
             energy are developed through engineering estimates. In
             addition, emissions reductions may include avoided
             transmission and distribution losses, as appropriate.
             Only  the emissions reductions from projects that meet
             the assistance criteria for the program are included in
             the program benefit estimates. EPA also  addresses the
             potential for double counting of the benefits between
             this and other partnerships by having program staff
             meet annually to identify and resolve any overlap issues.
GREEN POWER PARTNERSHIP

As a condition of partnership, program partners submit
data on their purchases of qualifying green power
products annually. These data are screened and any
issues  resolved.
Avoided emissions of greenhouse gases are determined
using marginal emissions factors for CO2 derived from
scenario runs of IPM®.
The potential for double counting, such as counting
green power purchases that may be required as part of
a renewable portfolio standard or may rely on resources
that are already part of the system mix is addressed
through a partnership  requirement that green power
purchases be  incremental to what may already be
required.
EPA estimates that the vast majority of the green power
purchases made by program partners are due to the
partnership, as partners comply with aggressive green
power  procurement requirements (usually at
incremental cost) to remain in the program. Further,
EPA estimates that its efforts to foster a growing
voluntary green power market have likely led to
additional voluntary green power purchases that have
not been reported through the program.
44

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                                                                                            CLEAN ENERGY SUPPLY PROGRAMS
    FIGURE 19. COMBINED HEAT AND POWER CAPACITY BY STATE AS OF 2006*
                       WASHINGTON
                                                                Increasing Capacity

                                                                <5MW    5-50 MW     51-500MW    501 -4000 MW
    "All data are self-reported; states might have more capacity than reported or shown.
    2006 ENERGY STAR COMBINED HEAT AND POWER AWARD

    EXXON MOBIL BAYTOWN CHP PROJECT; EXXONMOBIL Baytown,  Texas
    The combustion turbine-based CHP system produces up to 171 MW of electricity and 560,000 pounds of steam per hour to support one of the
    largest refinery complexes in the United States. With an estimated operating efficiency of 73%, the CHP system requires approximately
    33% less fuel than typical on-site thermal generation and purchased electricity. Based on this comparison, the CHP system reduces greenhouse gas
    emissions by an estimated 619,000 tons of carbon equivalent per year.
    2006 COMBINED HEAT AND POWER CERTIFICATES OF RECOGNITION

    MUELLER ENERGY CENTER; AUSTIN ENERGY Austin, Texas
    The Mueller Energy Center provides up to 4.3 MW of electricity, building heat, domestic hot water, and cooling to the Dell Children's Medical
    Center of Central Texas and the local utility grid/district cooling system. The CHP system is expected to operate at greater than 56% efficiency and
    use approximately 20% less fuel than equivalent separate heat and power—effectively reducing greenhouse emissions by an estimated 10,900 tons of
    carbon equivalent per year.


    UNIVERSITY OF NEW MEXICO CHP PROJECT; UNIVERSITY OF NEW MEXICO Albuquerque, New Mexico
    The University of New Mexico's Ford Utilities Center uses a 6 MW CHP system to supply the campus with roughly half of its total electricity
    demand during the winter months, along with space heating, cooling, and domestic hot water for the campus' more than 25,000 students, staff, and
    faculty. With an estimated operating efficiency of 76%, the CHP system requires approximately 16% less fuel than typical on-site thermal generation
    and purchased electricity—effectively reducing greenhouse gas emissions by an estimated 9,700 tons of carbon equivalent per year.
ENERGY STAR® and Other Climate Protection Partnerships 2006 Annual Report
45

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           STATE  AND  LOCAL PROGRAMS  AND  INITIATIVES
           Since 1992, EPA has provided state and local governments
           with assistance in their efforts to develop policies and
           programs to reduce energy costs, lower greenhouse gas
           emissions, improve air quality and public health, and promote
           economic development. This assistance is of critical
           importance to state and local governments as they address
           the continuing challenges of rising energy demand, rising
           energy prices, air quality issues, and global climate change.

           The potential impact of state and local policies is enormous.
           EPA estimates that if all 50 states implemented cost-effective
           clean energy and environment policies, the projected growth
           in demand for electricity could be cut in half by 2025. The
           additional remaining increase in demand could be met with
           cleaner energy supplies. This translates into an annual savings
           of $70 billion in energy costs by 2025, avoiding the need for
           more than 300 power plants and preventing the greenhouse
           gas emissions equivalent to those from 80  million vehicles.

           EPA is pursuing a number of strategies to help state and local
           governments explore and  implement clean energy policies.
           The strategies include a state partnership  program to
           advance clean energy policies,  an informational network to
           assist local governments,  and efforts to help utilities and their
           regulators explore policy options for increasing investment in
           energy efficiency, combined heat and power, and renewable
           energy. Through these programs, EPA provides
           comprehensive guidance  on successful, cost-effective
           policies and initiatives; develops and distributes tools to
           measure and evaluate the multiple benefits of these policies;
           fosters peer exchange opportunities for state and local
           officials to share best practices and policy innovations; and
           recognizes outstanding achievements (see Table 16).
           National
           Action
           Plan for
           Energy
           Efficiency
Clean EnergyEnvirgnment
STATE PARTNERSHIP
                                             Clean Energy-Environment
                                             State Partnership

                                             In 2006, EPA:
                                             • Expanded from the initial 11 charter members to a total of
                                               14 state partners (see Figure 20).
                                             • Published and distributed the Clean Energy and
                                               Environment Guide to Action (GTA), which identifies and
                                               describes 16 clean energy policies and strategies that
                                               states have used to meet their clean energy objectives.
                                               These policies were selected for inclusion in the GTA
                                               because of their proven effectiveness in a number of
                                               states. States are  using the GTAlo learn from each other
                                               as they design and implement their own clean energy
                                               programs and policies.
                                             • Supported state partners as they analyzed clean energy
                                               options and  prioritized  policies of interest, developed and
                                               implemented programs, and identified additional guidance
                                               and technical assistance from EPA that would be helpful in
                                               the coming years.
                                             • Conducted more than nine peer exchange sessions through
                                               the EPA Clean Energy-Environment Technical Forum—
                                               involving a total of more than  150 state environmental,
                                               energy, and  utility regulatory officials from over 35 states—
                                               to examine best practices on topics such as renewable
                                               energy credits, state energy planning, high performance
                                               buildings, and clean  distributed generation.
                                             • Hosted the 2nd Annual Clean Energy-Environment State
                                               Workshop, an opportunity for training and peer exchange
                                               on biofuels, the  Lead by Example initiative, and  quantifying
                                               co-benefits of their clean energy programs.
                                             • Released the Co-Benefits Risk Assessment Model (COBRA),
                                               a peer-reviewed tool that enables officials to compare air
                                               pollution scenarios associated with different policies and
                                               incorporate  human health effects into their decisions.
Clean EnergyEnvlronment
MU N ICIPAL NETWORK
46

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    FIGURE 20. CLEAN-ENERGY ENVIRONMENT STATE PARTNERSHIP GROWS TO 14 PARTNERS IN 2006
                                                                                    CHARTER PARTNERS

                                                                                    NEW PARTNERS IN 2006
    TABLE 16. EPA PROVIDES RESOURCES TO POLICYMAKERS DURING EACH STEP OF THE POLICY
             DEVELOPMENT PROCESS
      STEP IN POLICY DEVELOPMENT

      1. CREATE COLLABORATES


      2. ESTABLISH POLICY GOALS



      3. DESIGN POLICY


      4. IMPLEMENT POLICY

      5. MONITOR PROGRESS
EPA RESOURCES AVAILABLE TO STATE AND LOCAL POLICYMAKERS

 Guide to Action (GTA), Peer Exchanges

 GTA, Clean Energy and Climate Policy Matrices, Emissions Inventorying
 and Modeling, Energy Efficiency and  Renewable Energy Potential
 Studies, other EPA Climate Protection Partnership Programs

 GTA, Co-benefits Analysis, Peer Exchanges, Clean Energy and Climate
 Policy Matrices, Heat Island Initiative, other EPA Climate Protection
 Partnership Programs

 Policy Review, Peer Review, Case Studies, Lessons Learned

 Monitoring and Verification (M&V) Guidance, Policy Tracking,
 ENERGY STAR'S Portfolio Manager
ENERGY STAR® and Other Climate Protection Partnerships 2006 Annual Report
                                                            47

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           Clean Energy-Environment
           Municipal Network

           In 2006, EPA assisted local governments by:
           • Launching the Clean Energy-Environment Municipal
            Network, a complementary program to the Clean Energy-
            Environment State Partnership, to provide one-stop access
            to the wealth of EPA programs that offer technical
            assistance or membership to local governments.
           • Helping cities reduce urban  heat islands via  workshops in
            Miami and  Philadelphia and  the establishment of a Center
            of Excellence on SMART Innovations for Urban Climate
            and Energy.

           What to  Expect in 2007 and Beyond
           EPA will continue to support state and local governments as
           they develop, implement, and refine their clean energy
           activities. Specifically, EPA will:

           • Add one additional state, bringing the total number of
            partners in the State Partnership program to 15 in 2007, and
            more  in ensuing years.
           • Maintain up-to-date, online information about the state clean
            energy policies in the GTA and additional policy developments.
           • Develop additional tools and materials for implementing
            policies in the GTA, including a guidebook detailing ways to
            implement Lead by Example  initiatives, a primer on
            assessing the multiple benefits of clean energy, and
            guidance on designing clean energy funds.
           • Expand  collaboration with program partners and provide
            targeted support for their efforts to develop and implement
            effective clean energy policies, including sponsoring peer
            exchange opportunities to assist states  in learning about
            leading  policies.

           Clean Energy and Utility Policy Programs
           Despite the economic and environmental  benefits of energy
           efficiency, a range of barriers  have hindered utilities and
           others from greater investment in these cost-effective
           opportunities. EPA continues to provide state public utility
           commissions and others with tools and resources for
           exploring  and implementing policies that reduce barriers to
           adopting (or pursuing) comprehensive energy efficiency,
           renewable energy, and combined heat and power programs
           at the state and local level.
In 2006, EPA:
• Co-facilitated the National Action Plan for Energy
  Efficiency (Action Plan) with DOE. This effort has brought
  together a Leadership Group of more than 50 top utilities,
  utility regulators, state agencies, large energy users,
  consumer advocates, energy service providers, and
  environmental and energy efficiency organizations (see
  Table 18). During its firstyear, the Leadership Group and
  supporting organizations reviewed and identified barriers
  limiting greater investment in cost-effective energy
  efficiency; issued a comprehensive report to explore
  policies, practices, and efforts to overcome  these barriers;
  and developed five key recommendations for increasing
  investment in cost-effective energy efficiency, as well as
  a number of options to consider in implementing the
  recommendations. The Leadership Group released its
  recommendations in summer 2006; in 66 public
  statements, 89 organizations across 46 states made
  commitments to support the Action Plan  (see Table 17).
• Continued to provide technical assistance to the seven
  partners of the EPA-State Energy Efficiency Renewable
  Energy Pilots, including Arkansas, Connecticut, Hawaii,
  Minnesota, New Mexico, New Jersey, and  the District
  of Columbia.
• Continued to provide electric sector policy  assistance to
  state policymakers focused on state rules and policies
  that significantly affect the deployment of customer-sited
  clean distributed generation (DG), including advising the
  Oregon Public Utility Commission as it developed new
  interconnection rules, providing assistance to the Hawaii
  Public Utility Commission in evaluating rate structures for
  DG, and developing white papers on energy portfolio
  standards and the promotion of combined heat and power.

What to Expect in 2007 and Beyond
EPA will continue to assist interested state public utility
commissions in their efforts to advance clean  energy  by
continuing to share information on how states have removed
barriers and pursued best practice policies  and programs.
EPA will also continue to facilitate the Action Plan in
conjunction with DOE. In its second year, the Action Plan will
focus on implementation, outreach, and development  of
additional guidance materials. Activities will include producing
a series of guidebooks, holding regional implementation
meetings, and establishing a new Sector Collaborative on
Energy Efficiency that will engage businesses from five key
sectors of the economy and utilities in addressing the
barriers to and  capturing the benefits of energy efficiency.
48

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                                                                                          STATE AND LOCAL PROGRAMS
    TABLE 17. IN 2006,89 ORGANIZATIONS COMMITTED TO ADVANCING ENERGY EFFICIENCY THROUGH THE
              NATIONAL ACTION PLAN FOR ENERGY EFFICIENCY
ACTION PLAN RECOMMENDATION
Recognize energy efficiency as a high priority
energy resource
Make a strong, long-term commitment to implement
cost-effective energy efficiency as a resource
Broadly communicate the benefits of and
opportunities for energy efficiency
Promote sufficient and stable program funding
to deliver energy efficiency where cost-effective
Review and adopt policies to align utility incentives
with the delivery of cost-effective energy efficiency
and modify ratemaking practices to promote
energy efficiency investments
NUMBER OF ORGANIZATIONS MAKING A COMMITMENT
UNDER THIS RECOMMENDATION*
47
68
49
11
26





    "Numbers do not sum to 89 as some organizations made commitments to multiple recommendations.
    TABLE 18. NATIONAL ACTION PLAN FOR ENERGY EFFICIENCY LEADERSHIP GROUP AND OBSERVERS
      CO-CHAIRS
      Diane Munns
       President, National
       Association of Regulatory
       Utility Commissioners
      Jim Rogers
       President and CEO, Duke
       Energy

      LEADERSHIP GROUP
      Alliance to Save Energy
      American Council for an
       Energy-Efficient Economy
      American Electric Power
      Austin Energy
      Baltimore Gas and Electric
      Bonneville Power
       Administration
      California Energy
       Commission
      California Public Utilities
       Commission
      Connecticut Consumer
       Counsel
      Connecticut Department of
       Environmental Protection
      Connecticut Department of
       Public Utility Control
District of Columbia Public
  Service Commission
Entergy Corporation
Environmental Defense
Exelon
Food Lion
Great River Energy
ISO New England, Inc.
Johnson Controls
MidAmerican Energy
  Company
Minnesota Public Utilities
  Commission
Natural Resources Defense
  Counsel
New Jersey Board of Public
  Utilities
New Jersey Resources
  Corporation
New York Power Authority
New York State Public
  Services Commission
North Carolina Air Office
North Carolina Energy Office
Office of the Ohio
  Consumers' Counsel
Pacific Gas and Electric
PJM Interconnection
PNM Resources
Sacramento Municipal
  Utility District
Santee Cooper
State of Maine
Seattle City Light
Servidyne Systems, LLC
Southern California Edison
Southern Company
Tennessee Valley Authority
Texas State Energy
  Conservation Office
The Dow Chemical Company
Tristate Generation and
  Transmission Association,
  Inc.
USAA Realty Company
Vectren Corporation
Vermont Energy Investment
  Corporation
Wal-Mart Stores, Inc.
Washington Utilities and
  Transportation
  Commission
Waverly Light and  Power
Xcel Energy
OBSERVERS
American Gas Association
American Public Power
  Association
Council of Energy Resource
  Tribes
Demand Response
  Coordinating Committee
Edison Electric Institute
Electric Power Research
  Institute
Energy Programs
  Consortium
Gas Appliance
  Manufacturers Association
National Association of
  Energy Service
  Companies
National Association of
  Regulatory Utility
  Commissioners
National Association of State
  Energy Officials
National Council on
  Electricity Policy
National Rural Electric
  Cooperative Association
North American Insulation
  Manufacturers Association
Steel Manufacturers
  Association
ENERGY STAR® and Other Climate Protection Partnerships 2006 Annual Report
                                                                                49

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           METHANE  PROGRAMS
           EPA continues to manage a suite of partnership and outreach
           programs designed to reduce emissions of methane from
           the major sources in the United States. Over twenty times
           more effective than C02 at trapping heat in the atmosphere,
           methane (CH4) is both a potent greenhouse gas and a
           valuable energy resource (see Table 19). Methane recovery
           and utilization provides substantial opportunities for cost-
           effective GHG emissions reductions that deliver significant
           economic, environmental, and energy benefits.

           EPA's methane programs include the Natural Gas STAR
           Program, AgSTAR, the Coalbed Methane Outreach Program,
           and the Landfill Methane Outreach Program. All follow a
           successful strategy—to provide reliable and comprehensive
           technical, economic, and policy information to facilitate the
           adoption of cost-effective emissions reduction technologies
           and practices. These programs also offer tools and targeted
           technical assistance to help both public and private sector
           partners implement methane reduction project opportunities.
           Partners can gain a competitive advantage by improving their
           operating efficiency and receive recognition from EPA for
           their leadership in reducing methane emissions.

           In 2006, the methane programs saved a combined 16.1 MMTCE,
           an increase of more than 70 percent since 2000 (see Table 20).
           These climate partnerships, in conjunction with a regulatory
           program to limit air emissions from the nation's largest landfills,
           have reduced national methane emissions to 11 percent below
           1990 levels, and they are projected to remain below 1990
           levels through at least 2012 (see Figure 21).

           Building off this success in the United States, EPA is now
           leveraging its experience and expertise to achieve both
           economic and environmental results on a global scale.
           Through the Methane to Markets Partnership, EPA is working
           with 20 national governments and more than 500 public and
           private sector organizations to advance the recovery and use
           of methane as a clean energy source (see Figure 22, p. 55).
Natural Gas STAR Program
                Natural Gas STAR is a partnership between
                     EPA and the U.S. natural gas industry
                   designed to overcome barriers to the
                   adoption of cost-effective technologies
                   and practices that reduce methane
emissions. Initiated in 1993, Natural Gas STAR partners with
companies from all sectors of the natural gas supply chain—
production, processing, transmission, and distribution—to
reduce gas losses, improve system efficiency, and ensure
that more gas gets to market. EPA has developed a range of
tools and resources to help corporate partners implement a
wide range of cost-effective methane reduction best
management practices and technologies. The program
achieved significant reductions through 2006 and is expected
to reduce methane emissions from natural  gas systems by
more than 9.4 MMTCE in 2006 alone, with reductions of over
63 MMTCE since 1990.


In 2006, Natural Gas STAR:
• Achieved 62 percent industry participation across all
  major sectors (production, processing, transmission,
  and distribution).
• Partnered with seven new companies, bringing the total
  number of partners to more than  115.
• Launched the Natural Gas STAR International Program,
  with seven charter partners.
• Conducted six onsite and two online technology transfer
  workshops covering the four major gas sectors.
• Recognized seven outstanding partners with awards for
  significant corporate achievements in reducing methane
  emissions from oil and gas systems (see  p. 53).
50

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   TABLE 19. GLOBAL WARMING POTENTIALS (GWPS) AND ATMOSPHERIC LIFETIMES OF GREENHOUSE GASES
GREENHOUSE GAS
Carbon Dioxide
Methane
Nitrous Oxide
Hydrofluorocarbons
Perfluorocarbons
Sulfur Hexafluoride
GLOBAL WARMING
POTENTIAL FOR 100 YEARS
1
21
310
140-11,700
6,500-9,200
23,900
ATMOSPHERIC
LIFETIME (YEARS)
50-200
12±3
120
1.5-264
3,200-50,000
3,200
   Source; IPCC 1996
   TABLE 20. EPA METHANE PROGRAMS MEET AND SURPASS GOALS
PROGRAM 2006 GOAL
NATURAL GAS STAR
Industry Participation (% in program)
Annual Gas Savings (MMTCE)
COALBED METHANE OUTREACH PROGRAM
Annual Methane Reductions (MMTCE)
LANDFILL METHANE OUTREACH PROGRAM
Number of Projects
Annual Methane Reductions (MMTCE)
TOTAL REDUCTIONS (MMTCE)

59%
6.5

1.9

309
4.8
13.2
2006 ACHIEVEMENT

62%
9.4

1.9

336
4.8
16.1
2007 GOAL

59%
6.7

2.0

329
5.2
13.9
   FIGURE 21. PARTNER ACTIONS ARE PROJECTED TO MAINTAIN METHANE EMISSIONS BELOW 1990
            LEVELS THROUGH 2012
        1990
1995
2000
2005
2010
2012
ENERGY STAR® and Other Climate Protection Partnerships 2006 Annual Report
                                                                       51

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           What to Expect in 2007 and Beyond
           EPA will continue to support partners in the following ways
           as they implement programs to reduce their methane
           emissions:

           • Provide one-on-one assistance and support to existing
            partner companies to promote new projects that expand
            their current methane emissions reduction activities.
           • Conduct eight technology transfer workshops, including
            three Web-based workshops, to provide company
            representatives and other stakeholders with the
            opportunity to learn about technologies and practices for
            reducing methane emissions and partner experiences
            implementing the program.
           • Continue to develop tools and resources that highlight
            environmental  and economic benefits of methane
            reductions and facilitate company implementation of the
            program.
           • Work with the partners in the newly launched Natural Gas
            STAR International to develop project plans for their
            international operations.

           AgSTAR  Program
                             Through the AgSTAR Program, EPA and
                             the U.S. Department of Agriculture
                             (USDA) collaborate with the nation's
                             agriculture  industry to reduce methane
                             emissions by promoting the use of
           anaerobic digesters and biogas recovery systems to manage
           animal wastes. In addition to avoiding greenhouse gas
           emissions, the technologies and practices encouraged
           through AgSTAR generate farm revenues and reduce
           local water and air pollution. Currently, there are almost
           200 operating or  planned systems in the United States.
           EPA provides technical  information and tools to help in the
           implementation and assessment of these projects.
In 2006, EPA and USDA:
• Assisted livestock producers in project planning and
  implementation phases that, when completed, will produce
  nearly 275 million kWh/year of renewable energy from
  farms capturing methane. This energy will then be used by
  the farm and local community.
• Continued to expand methane reducing technologies in the
  livestock sector to help ensure clean water and air and
  held events with local  extension services to market these
  opportunities. Such  activities took place  as part of the
  implementation of Section 9006 of the 2002 Farm Bill.
• Developed a new protocol for use by livestock producers,
  state agencies, project developers, and others involved in
  developing farm scale anaerobic digestion systems to
  standardize the performance evaluation  of these systems
  and advance technology deployment.

What to Expect in 2007 and Beyond
• Collaboration with state energy programs across the
  country to facilitate  the development of anaerobic digestion
  systems as renewable energy resources.
• Hosting a national conference to provide environmental,
  program, market,  state-of-the-art technical, and funding
  information on anaerobic digestion systems.
• In collaboration with USDA and state energy programs,
  delivery  of state and regional workshops to educate
  livestock producers and promote anaerobic digestion
  systems.
• Development of a national database to house information
  on current and pending anaerobic digestion systems.
52

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                                                                                                                   METHANE  PROGRAMS
     NATURAL GAS STAR 2006 AWARD WINNERS
                         Innovation
                  2006
    Natural Gas STAR Award Winners
                          ONEOK fWinf r* OB LLC-
                       tftniMirly NaKhftn* Plain* Natural
                                  Gael
                                       Km
                                                          LHikc Hnergy Field Service*
                                                               tUftfi fhrtttrt rJ'XJi

                                                               Kinder Morgan
                                                                   /tart rwr of riw Year
                                                                   qf £ttn
                                                                  STSmam
                              bil Oil ami tia* Curpimliun
                                             Y*fT»-
    S. Kt'A L-aiixriri alul*«
Jittd pmuiil ni|4 vol.uiil.arv, iTutl
                                                                                      itrfrj" li-*4*f* in tirtpbimril inff
                                                                                      imuMUfuu to n-J
                                                                                     By WDrkiny in
                                                               lln> Nulunil fkm SfAU l^fram, I!IKM> mil uiu» limn L HI ctl
                                                                     rnmpnnuvi HIT pmtrrply vhfrf»«in(r>r1im.i<
                                                                                              •lull nilminliifc i|i
                                                                                                 Ma*uml (•«
     PRODUCTION PARTNER OF THE YEAR
     MARATHON OIL COMPANY

     Since 1994, when Marathon joined the program, it has reported more
     than 25 individual methane mitigation activities, resulting in the
     largest cumulative emissions reductions of any Gas STAR partner. In
     2005, Marathon achieved the second highest normalized and fifth
     highest total emissions reductions of all production sector partners.
     These reductions were realized through the implementation of more
     than 10 technologies and practices. The company also conducted
     operational efficiency studies on several representative production and
     processing facilities. These studies formed the basis for the
     development of operational efficiency work plans, which are being
     implemented in 2006 in Marathon's upstream business units. Finally,
     Marathon contributed to the Program's international efforts in 2006,
     signing on as one of seven founding partners of Natural Gas STAR
     International.

     PROCESSING PARTNER OF THE YEAR
     UUIxC CIvCfiuY  rlCLU oCnVluCo
     Duke Energy Field Services (DBFS), now DCP Midstream, joined the
     Natural Gas STAR Program in 2001. In 2005, it submitted the highest
     overall emissions reductions and third highest normalized reductions of
     the processing partners. These reductions were achieved by implementing
     six different technologies and practices. Vital to this effort, DBFS has
     launched its companywide BTU Efficiency Program to reduce gas loss
     and operate more  efficiently.  The program consists of cross-functional
     teams whose goal is to increase the efficiency of each company asset
     group through improved measurement and best practices for reducing
     gas losses.
          TRANSMISSION PARTNER OF THE YEAR
          KINDER MORGAN, INC.
          Kinder Morgan originally joined the Natural Gas STAR program in
          1993, but the company recently highlighted its commitment to the
          Program by signing a new Memorandum of Understanding in 2005.
          Kinder Morgan had the fourth highest normalized and fifth highest
          overall reductions of the transmission sector in 2005, implementing
          eight technologies and practices.
          DISTRIBUTION PARTNER OF THE YEAR
          ATMOS ENERGY CORPORATION
          Atmos Energy joined the Natural Gas STAR program in 1999. Since
          then, it has reported 5 years in a row, submitting reports for activities
          from 2001 through 2005. During this time, the company has increased
          implementation and achieved significant emissions reductions. In
          2005, Atmos reported the highest overall reductions and third highest
          normalized reductions of distribution partners. Atmos also has the
          third highest cumulative reductions of all distribution partners. To
          achieve its 2005 reductions, Atmos implemented four technologies and
          practices—reporting activities from more than seven locations.
          ROOKIE OF THE YEAR
          ONEOK  PARTNERS GP, LLC
          ONEOK Partners (formerly Northern Plains Natural Gas) joined the
          Natural Gas STAR Program as a transmission sector partner in 2005.
          This was the company's first year reporting, and it submitted reports
          for three subsidiaries, achieving the highest normalized reductions for
          the transmission sector and implementing numerous technologies
          and practices.
ENERGY STAR® and Other Climate Protection Partnerships 2006 Annual Report

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           Coalbed Methane Outreach Program
                           The Coalbed Methane Outreach Program
                           (CMOP) collaborates with large coal
                           companies as well as related industries to
                           reduce methane emissions from coal
                           mines through the development of
                           environmentally beneficial, cost-effective
           coal mine methane (CMM) recovery and utilization projects.
           CMOP efforts focus  primarily on mitigating  emissions from
           degasification systems at underground coal mines by
           providing high-quality, project-specific information and
           technical assistance to the coal mining industry and project
           developers. These efforts include analyses of technologies
           and potential projects; mine-specific  project feasibility
           assessments; state-specific analyses of project potential;
           market evaluations;  and guides to state, local, and federal
           assistance programs.

           As a result of EPA's successful collaboration with coal
           companies and specialized businesses, the percentage of
           drained coal mine methane that is recovered and used has
           grown from 25 percent in the early 1990s to more than
           70 percent in 2006. To capture the remaining methane  emitted
           from degasification systems, EPA is working with  industry to
           use CMM for injection in natural gas  pipelines (with or
           without upgrading, as needed), in power generation, and for
           mine heating and coal drying. EPA is  also expanding its focus
           to include the methane emitted from coal mine ventilation
           systems and from abandoned underground mines. Mine
           ventilation systems account for about 77 billion cubic feet
           (Bcf) of U.S. methane emissions annually, or more than
           50 percent of U.S. CMM liberated in a single year.

           The program achieved significant results through 2006.
           Working with U.S. underground coal mine operators,
           CMOP achieved a reduction of 1.9 MMTCE in 2006.  These
           results include those from about 20 projects that captured
           and used methane from some 30 U.S. abandoned  mines.
In 2006, the Coalbed Methane Outreach Program:
• Launched a targeted outreach effort to the mining industry
  in the western United States and provided site-specific
  technical and economic analyses to increase mine
  methane capture and use at a mine in Utah.
• Promoted abandoned mine methane recovery by
  developing a  robust methodology for estimating methane
  emissions from abandoned coal mines.
• Conducted a  successful conference focusing on
  challenges and opportunities to CMM  project development
  in the western United States.

What to Expect in 2007 and Beyond
• Continue to engage with coal mines in the western United
  States to promote project development.
• In cooperation with CONSOL Energy and DOE, support
  efforts to design, install, and operate the first test-scale
  demonstration of technology to mitigate and recover
  energy from dilute ventilation air in the United States.
• Develop enhanced tools to assist potential project
  developers, including a project finance model.
• Support the development of methane recovery and
  utilization projects at abandoned mines by identifying and
  developing a  database of candidate mines and preparing
  case studies  of successful projects.
• Organize a national conference to address the
  opportunities and challenges of CMM  project development
  in the United  States.
54

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                                                                                                         METHANE PROGRAMS

    FIGURE 22. EXPORTING THE SUCCESS OF ERA'S DOMESTIC METHANE PROGRAMS: METHANE TO MARKETS (M2M)
                                      Launched in 2004, M2M is an international

                                      initiative that unites public and private interests

                                      to advance the capture and use of methane as a

                                      clean energy source. Building off its domestic

                                      methane programs, EPA is working with 20

                                      countries and more than 500 private and public

      sector organizations to advance methane energy projects in four major areas: agricultural

      waste, landfills, underground coal mines, and natural gas and oil systems. U.S. efforts

      under the partnership are led by EPA and involve the collective efforts of six agencies

      and departments across the federal government.

      In its third year, M2M is already realizing impressive results. Ongoing U.S.-supported

      projects overseas are expected to result in estimated annual reductions of approximately

      5 MMTCE. U.S. contributions have also leveraged over $200 million in investment

      from other partner countries, development banks, the private sector, and members of

      the Project Network (see bar chart).

      In 2007, the partnership will be highlighting its efforts at the first Methane to Markets

      Partnership Expo, to be  held in Beijing, China. This landmark event, co-sponsored by

      EPA and China's National Development and Reform Commission, will be a forum for

      participants to share information and join forces on project development, technology

      deployment, financing, and policy. The Expo promises to be the premier international

      forum for promoting methane recovery, project opportunities, and technologies.
                                 FUNDING AND LEVERAGED
                                 INVESTMENT (MILLIONS)
                                 $250
                                       $235 million
                                 $200
                                 $150
                                 $100

                                                  $5 million

                                       LEVERAGED  TOTAL U.S. GOVERNMENT
                                       FUNDING     FUNDING (2005)
    PROGRAM EVALUATION: MEASURING RESULTS IN THE METHANE PROGRAMS
    EPA relies on the application of sound, comprehensive analyses to estimate the annual methane reductions from its
    programs. EPA gathers and carefully reviews partner data on all methane reduction activities implemented through the
    partnerships. Table 1 on p. 3 and Table 20 on p. 51 summarize the benefits attributable to EPA's methane programs.
    For all programs, energy bill savings include the revenue from the sale of methane and/or the sale of electricity made from
    captured methane  from qualified partner activities only. The expenditures include the capital costs agreed to by partners to
    bring projects into compliance with program specifications and any additional operating costs engendered by program
    participation. All financial benefits have been placed in present value terms.
      NATURAL GAS STAR

      As a condition of partnership,
      program partners submit
      implementation plans to EPA
      describing the emissions reduction
      practices they plan to implement and
      evaluate. In addition, partners submit
      progress reports detailing specific
      emissions reduction activities and
      accomplishments each  year.
      EPA does not attribute all reported
      emissions reductions to Natural Gas
      STAR. Partners may only include
      actions that were undertaken
      voluntarily, not those reductions
      attributable to compliance with
      existing regulations.
      Emissions reductions are estimated
      by the partners either from  direct
      before-and-after measurements or
      by applying peer-reviewed emissions
      reduction factors. These estimates
      are reviewed  by EPA and any issues
      are resolved.
LANDFILL METHANE OUTREACH

EPA maintains a comprehensive
database of the operational data on
landfills and landfill gas energy
projects in the United States. The data
are updated frequently based on
information submitted by industry,
LMOP outreach efforts, and other
sources.
Reductions of methane that result
from compliance with EPA's air
regulations are not included in the
program estimates. In addition, only
the emissions reductions from
projects that meet the LMOP
assistance criteria are included in the
program benefit estimates.
EPA uses emissions factors that are
appropriate to the project. The factors
are based on  research, discussions
with experts in the landfill  gas
industry, and  published  references.
COALBED METHANE OUTREACH

Through cooperation with the U.S.
Mine Safety & Health Administration,
state oil and gas commissions, and
the mining companies themselves,
EPA collects mine-specific data
annually and estimates the total
methane emitted from the mines
and the quantity of gas recovered
and used.
There are no regulatory requirements
for recovering and using coal mine
methane; such efforts are entirely
voluntary. EPA estimates coal mine
methane recovery  attributable to its
program activities  on a mine-specific
basis, based on the program's
interaction with mines.
ENERGY STAR® and Other Climate Protection Partnerships 2006 Annual Report
                                                                           55

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           LANDFILL METHANE
           OUTHEACH PROGRAM
Landfill Methane Outreach Program
                Although methane emissions from landfills
                have decreased by 18 percent since 1990,
                landfills are currently the largest methane
                emissions source in the United  States,
                accounting for approximately 25 percent of
all anthropogenic methane emissions. Launched in 1994, the
Landfill Methane Outreach Program (LMOP) encourages the
development of landfill gas energy (LFGE) projects. The
program focuses its efforts on smaller landfills not required
by EPA regulations to collect and combust their landfill gas,
as well as larger, regulated operations that are combusting
their gas, but not using it as a  clean energy source. LFGE
projects not only prevent the direct methane emissions from
landfills, but also reduce indirect C02 emissions by displacing
electricity generated from the burning of fossil fuels.

Through LMOP, EPA provides landfill owners and  operators  a
suite of tools and technical resources to help them overcome
the hurdles to LFGE project development, including feasibility
analyses, decisionmaking software for evaluating project
economics, a database of more than 550 candidate landfills,
a project development handbook, and energy end-user
analyses.

Over the past 12 years, LMOP has assisted 336 projects that
reduced methane emissions from landfills and avoided C02
emissions, collectively amounting to about 33 MMTCE. In
2006 alone, LMOP emissions reductions  totaled 4.8 MMTCE.
In addition, the total number of operational LFGE projects
grew to nearly 425 nationwide, and EPA  assisted 35 new
LFGE projects and nine project expansions that became
operational during the year.


In 2006,the Landfill Methane Outreach Program:
• Assisted in the development of 35 new landfill gas energy
  projects and 9 project expansions, for  a cumulative total of
  336 projects since 1994.
• Welcomed 118 new partners, increasing participation by
  24  percent and bringing the total number of LMOP partners
  to more than 600.
• Provided technical assistance to more than 20 corporations,
  helping them identify opportunities to advance landfill gas
  energy as a reliable, low-cost source of energy. Over
  225 corporate and landfill searches and technical and
  economic analyses were conducted using EPA's innovative
  project evaluation software tools to identify LFG
  opportunities near corporate and industrial facilities.
• Highlighted more than a dozen landfills to attract investment
  opportunities during the 10th LMOP Conference and Project
  Expo. As a result, at least four of the landfills  are moving
  toward landfill gas energy projects, with a total potential of
  producing 1.8 million standard cubic feet of methane per
  day (mmscfd), the energy equivalent of heating 4,000 homes.
• Garnered public attention for LMOP Partners and landfill
  gas energy projects, which were featured by numerous
  media outlets, including  CNN, National Public Radio,
  and Fortune.
• Launched several new LMOP Partner tools and resources,
  including a new guide to federal, state, and foundation
  funding resources; LFGcostWeb, a Web version of the
  LMOP project cost evaluation tool; and more  than a dozen
  project profiles to highlight partner and project
  accomplishments.
• EPA recognized the outstanding accomplishments of
  four landfill methane partners and  three exemplary projects
  at the  10th Annual LMOP Conference and Project Expo
  (see p. 57).

What to Expect in 2007 and Beyond
• Assist in the development of more  than 30 new landfill gas
  energy projects.
• Expand efforts to promote the benefits of  landfill gas energy
  to economic development offices,  emphasizing job creation
  and tax revenue opportunities for states and communities.
• Host the 11th Annual LMOP Conference, Project Expo, and
  Awards Ceremony to showcase the top LMOP Partners and
  projects and discuss the latest  industry trends.
56

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                                                                                                               METHANE PROGRAMS
    2006 LANDFILL METHANE OUTREACH PROGRAM AWARDS

    PROJECT OF THE YEAR
    JACKSON COUNTY GREEN ENERGY PARK
    North Carolina
    Landfill Gas Fuels North Carolina Local Economy. The Jackson
    County North Carolina Board of Commissioners boosted the county's
    economy by creating the Jackson County Green Energy Park where
    rapeseed grown by local farmers and landfill gas help produce over
    one million gallons of biodiesel, some of which is sold to the nearby
    Smokey Mountain National Park. The landfill gas is also used to
    provide process heat for a craft center that includes pottery and glass-
    blowing studios, blacksmithing, and forges.

    PROJECT OF THE YEAR
    LANCASTER COUNTY AND TURKEY  HILL DAIRY
    Pennsylvania
    Lancaster County Solid Waste Management Authority, Pennsylvania.
    Lancaster County Solid Waste Management Authority's (Authority)
    3.2 megawatt landfill gas energy project involved a unique partnership
    among the Authority, PPL Corporation,  and Turkey Hill Dairy. The
    Authority sells landfill gas to PPL Energy Services, which operates an
    electricity plant that uses Caterpillar engines to generate enough green
    electricity to power 2,000 homes. Waste heat from the engine exhaust
    is recovered to produce steam used in the adjacent Turkey Hill Dairy.
    Due to this combined heat and power project, Turkey Hill has
    reduced the use of diesel fuel in their boilers by 80 percent, achieving
    fuel cost savings and environmental benefits.

    PROJECT OF THE YEAR
    JEFFERSON PARISH AND CYTEC INDUSTRIES INC.
    Louisiana
    Perseverance Provides Cytec with Affordable Energy. Renovar, the
    project developer, sells 1,820 cubic feet per minute of landfill gas
    collected from the Jefferson Parish  Landfill to Cytec Industries, which
    uses it as the  fuel for a process air pre-heater in a sulfuric acid
    regeneration plant. Cytec now has an affordable, reliable, and
    predictable energy source at a cost savings compared to the market
    price of natural gas on a per million Btu basis. This reduced cost
    enabled Cytec to offset the cost required to make retrofits to its duct
    work, gas burners, and control systems in order to utilize landfill gas.

    PROJECT OF THE YEAR
    JENKINS  BRICK COMPANY Alabama
    Jenkins Brick Locates Plant to Tap Landfill Gas. Jenkins Brick has
    been using clean-burning landfill gas to fuel its Montgomery,
    Alabama, brick plant since 1998. Jenkins decided to site its new plant
    at a location where it would once again be possible to take advantage
    of local landfill gas. The new project captures 600 cubic feet per
    minute of landfill gas from Veolia Environmental Services' Star Ridge
    Landfill and transports it via a 6.5-mile underground pipeline to Jenkins
    Brick's new $56 million state-of-the-art brick manufacturing plant in
    Moody, Alabama. There, the landfill gas is used as fuel  in brick kilns.
COMMUNITY PARTNER OF THE YEAR
DEKALB COUNTY Georgia
DeKalb County Finds that Persistence Pays Off. DeKalb County,
Georgia owns two Caterpillar engines that burn landfill gas from
Seminole Road Landfill to produce electricity that is sold to Georgia
Power. The project generates a minimum of 22,500 megawatt-hours
per year of electricity, enough to power 3,000 homes. Development of
this project required detailed planning and many meetings with
county officials and the community to educate  them about the
benefits of landfill gas energy projects and alleviate potential concerns.

ENERGY END USER PARTNER OF THE YEAR
BMW MANUFACTURING  South Carolina
BMW Manufacturing Expands Use of Landfill  Gas. With excess
landfill gas available and a continued desire to go "green," BMW
focused its attention on the largest consumer of energy in the South
Carolina assembly plant: the paint shop. Working with Diirr Systems,
the shop's original designer, BMW converted paint shop equipment to
burn landfill gas. In so doing, the facility became the world's first
automotive paint shop to integrate the use of landfill gas in such a
creative energy savings application.

ENERGY PROVIDER PARTNER OF THE YEAR
MURRAY CITY  POWER (MCP) Utah
Murray City Power Overcomes Economic and Political Setbacks.
Murray City Power (MCP) responded to a proposal from the Salt
Lake City/County Landfill Gas Recovery Project and aggressively
pursued the entire three megawatt capacity. To make the project
economically feasible, MCP established a pricing profile with seasonal
pricing for on-peak and off-peak hour components so that the
project's power supply costs parallel daily and seasonal market pricing,
even  though the power is delivered  on a flat 24-hour/7-day year-
round basis.

STATE PARTNER OF THE YEAR
DELAWARE SOLID WASTE AUTHORITY (DSWA)
Delaware
Delaware Solid Waste Authority Leads Sustainability. As early as 1995,
Delaware Solid Waste Authority (DSWA) demonstrated its
commitment to excellence in solid waste management when it began
collecting landfill gas and selling  it for electricity generation. With the
addition of two new landfill gas electricity projects, every municipal
solid waste landfill in Delaware managed by DSWA now has a landfill
gas energy project. Such leadership  earned DSWA LMOP's State
Partner of the Year in 1999 and again in 2006.
ENERGY STAR® and Other Climate Protection Partnerships 2006 Annual Report
                                                           57

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           HIGH  GLOBAL WARMING  POTENTIAL GAS  PROGRAMS
          Many gases with high global warming potentials (GWPs)
          are released as byproducts of U.S. industrial operations.
          EPA manages a suite of partnership programs that work
          closely with key industries to develop cost-effective
          operational improvements that will help reduce emissions of
          perfluorocarbons (PFCs), hydrofluorocarbons (MFCs), and
          sulfur hexafluoride (SF6). These three gases are all
          particularly potent greenhouse gases; they trap substantially
          more heat in the atmosphere than does C02 on a per ton
          basis (see Table 19, p. 51). PFCs and SF6 also have very long
          atmospheric lifetimes. Three industries are implementing
          agreements to reduce emissions  under the President's
          Climate VISION (Voluntary Innovative Sector Initiatives:
          Opportunities Now) plan (see Table 21). Despite the potential
          for sizable growth in high GWP greenhouse gas emissions,
          EPA's partner industries are expected to maintain their
          emissions substantially  below 1990 levels through the year
          2012 (see Figure 23). Greenhouse gas emissions reductions
          across these programs totaled 13.3 MMTCE in 2006
          (see Table 22).


          The Voluntary Aluminum Industrial
          Partnership (VAIP)
                                       In support of the Climate
                                       VISION  plan, the aluminum
                                       industry has committed to
                                       reducing direct carbon
                                       intensity by 53 percent from
          1990 levels by 2010. This involves reducing emissions of
          perfluoromethane (CF4)  and perfluoroethane (C2F6), which are
          inadvertent byproducts  of the smelting process, and reducing
          C02 emissions caused by the consumption of the carbon
          anode. This ambitious goal signifies an additional direct
          carbon intensity reduction of 25 percent beyond 2000 levels.


          In 2006, the Voluntary Aluminum Industrial
          Partnership:
          • Reduced 2.4 MMTCE in direct greenhouse gas emissions.
          • Reduced PFC emissions by more than 75 percent and direct
            carbon emissions by more than 55 percent on a per-ton
            basis compared to the industry's 1990 baseline.
I.NUUSTK1AL PAKTNtKSHIP
• Launched a PFC reduction project with Australia and China
  through the Asia Pacific Partnership for Clean Development
  and Climate.
• Updated several analytical tools, including those used for
  inventory reporting and smelter measurements, with new
  data collected through the partnership.
• Completed technology-type benchmarking analysis in
  support of partner efforts to further reduce PFC emissions.

HFC-23 Emission Reduction Program
HFC-23 is a byproduct in the production of HCFC-22, a
common commercial and residential air conditioning
refrigerant. Through its partnership with 100 percent of the
U.S. HCFC-22 industry, EPA encourages the development and
implementation of feasible and cost-effective processing
practices and technologies that reduce HFC-23 emissions.
Since the partnership began in 1993, U.S. HCFC-22
manufacturers have made significant progress in lowering
emissions of HFC-23 through process optimization and
thermal destruction. As a result, HFC-23 emission intensity
has dropped dramatically.18 In 2006, emissions were
7.0 MMTCE less than they would have been had
production continued at 1990 emissions intensity levels.


The PFC Reduction/Climate Partnership for
the Semiconductor Industry
Since its inception in 1996, this partnership has been a
catalyst for semiconductor companies in Europe, Asia, and
North America to set the first global industry target for
reducing greenhouse gas emissions. Semiconductor
manufacturers have worked alongside EPA to identify and
implement PFC-reducing process changes and
manufacturing tool improvements for the production of
integrated circuits. In April  1999, the World Semiconductor
Council (WSC), whose members include the national
semiconductor industry associations of Europe, Japan,
Korea, Taiwan, and the United States, announced a very
challenging goal: to reduce PFC emissions by at least 10
percent below the 1995 baseline level by year-end 2010. The
WSC's goal represents the world's first industry-wide, global
greenhouse gas emissions reduction target. The China
Semiconductor Industry Association (CSIA) agreed to join the
58
            HFC-23 emission intensity is the amount of HFC-23 emitted per kilogram of HCFC-22 manufactured.

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    TABLE 21. CLIMATE VISION* GOALS FOR ERA'S HIGH GWP GAS PROGRAMS
EPA PROGRAM
Voluntary Aluminum Industrial Partnership (VAIP)
The SF6 Emission Reduction
Partnership for the Magnesium Industry
The PFC Reduction/Climate Partnership for the
Semiconductor Industry
CLIMATE VISION GOAI
Has committed to achieving a direct carbon intensity reduction
53% from 1990 levels by 2010.

of
Has committed to eliminating SF6 emissions by the end of 2010.
Has committed to reducing absolute perfluorocarbon
emissions by 10% below the 1995 baseline level by the end of
2010.
    ' Voluntary Innovative Sector Initiatives: Opportunities Now
    FIGURE 23. PARTNER ACTIONS ARE PROJECTED TO MAINTAIN EMISSIONS OF HIGH GWP GASES
              BELOW 1990 LEVELS THROUGH 2012
        30
      CJ
          1990
1995
2000
2005
2010       2012
    TABLE 22. GOALS AND ACHIEVEMENTS OF EPA'S HIGH GWP GAS PROGRAMS
PROGRAM
VOLUNTARY ALUMINUM INDUSTRIAL
PARTNERSHIP (VAIP)
Industry Participation (% in program)
Reductions (MMTCE)
HFC-23
Industry Participation (% in program)
Reductions (MMTCE)
OTHER STEWARDSHIP PROGRAMS
Industry Participation (% in program)*
Reductions (MMTCE)
TOTAL REDUCTIONS (MMTCE)
2006 GOAL


98%
2.7

100%
4.9

50-100%
3.8
11.4
2006 ACHIEVEMENT


98%
2.4

100%
7.0

45-100%
3.8
13.3
2007 GOAL


99%
2.7

100%
4.9

50-100%
4.7
12.3
    * Participation varies from 45% of net generating capacity for electric power systems to 100% for primary magnesium producers.
ENERGY STAR® and Other Climate Protection Partnerships 2006 Annual Report
                                                                                 59

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industry's climate protection initiative in 2006. China is the
world's fastest growing production center for semiconductor
devices as well as the largest single market for integrated
circuit products.

The aggressive goal set by the WSC demonstrates the
semiconductor industry's  commitment to climate protection in
the international community. The WSC and EPA's present
challenge is to maintain flexibility and leadership when
aligning the initiative with the industry's plan to include
emerging production centers in Malaysia and Singapore.


In 2006, the  PFC Reduction/Climate Partnership for
the Semiconductor  Industry:
              • Reduced absolute PFC emissions by
               2.3 MMTCE, or more than 75 percent below
               BAU levels, while U.S. manufacturing
               continued to expand. EPA's semiconductor
               industry partners are on track to meet their
               2010 WSC/Climate VISION commitments.
• Published first report on PFC heat transfer fluid use and
  emissions from the semiconductor industry. The loss of
  these high GWP fluids may represent up  to 5  percent of
  a semiconductor manufacturer's total (direct and indirect)
  greenhouse gas emissions.
• Facilitated emissions reduction technology transfer
  between related electronic manufacturing sectors, such as
  semiconductor and flat panel displays, to identify and
  implement the most cost-effective PFC reduction strategies.
• Introduced a new PFC emissions reporting format that
  improves how data are  displayed and better describes the
  application of the International  Panel on  Climate  Change's
  (IPCC's) estimating methods at the corporate  level.
• Conducted EPA's first performance study of an installed
  PFC emissions abatement device with  partner company,
  Qimonda. EPA and Qimonda are planning to conduct a
  follow-up study of the device in 2007.
                                                                        MfXXXVU Sf* Emissions Reduction
                                                                      Partnership for Electric Power Systems
Sulfur Hexafluoride (SF6) Emissions Reduction
Partnership for Electric Power Systems
                    SF6 is the most potent and persistent
                    greenhouse gas. Used primarily by
                    electric utilities, SF6 is a gaseous
                    dielectric for high-voltage circuit
                    breakers and gas-insulated substations.
                    The global warming potential of SF6 is
23,900 over a 100-year time period, which means it is 23,900
times more effective at trapping infrared radiation than an
equivalent amount of C02.

In 1999, EPA partnered with several electric utilities to form a
voluntary program to reduce SF6 emissions. In addition to
providing a means to actively address climate change, this
program has helped  partner companies reap financial
savings through reduced SF6 gas purchases. In 2006, partner
companies reported SF6 emissions of 1.1 MMTCE, bringing
their average SF6 emission rates down to 7.3 percent of the
total equipment nameplate capacity. Members of the
partnership represent 44 percent of the total U.S.
transmission system.


In 2006, the SF6 Emissions Reduction  Partnership for
Electric Power Systems:
• Recruited six new companies into the partnership:
  Montana-Dakota Utilities (ND); NSTAR Electric & Gas (MA);
  Oglethorpe Power Company (GA); PNM Resources (NM);
  Pacificorp (OR); and Seattle City Light (WA).
• Presented findings from the SF6 circuit breaker leak
  study at the 4th International Conference  on SF6and the
  Environment, showing that SF6 emissions  can be two times
  higher that expected. Held in San Antonio, TX, the
  conference was attended by 145 individuals from the
  electric power and magnesium processing sectors.
• Worked with  partners to update SF6 reduction goals
  through the year 2012.
60

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                                                                        HIGH GLOBAL WARMING  POTENTIAL GAS PROGRAMS
  ParlneishiptortheMagnesiiin Industry
SF6 Emission Reduction Partnership for the
Magnesium Industry
                The U.S. magnesium industry and the
                International Magnesium Association (IMA)
                are working with EPA to identify and adopt
                best management practices for reducing and
eliminating emissions of SF6. Launched in 1999, this partnership
works to reduce SF6 emissions from magnesium production and
casting operations and currently includes more than 80 percent
of the U.S. magnesium industry. Partner companies are supporting
the President's Climate VISION initiative and striving to completely
eliminate their firms' SF6 emissions by the end of 2010.

In 2006, the SF6 Emission Reduction Partnership for the
Magnesium Industry:
• Held SF6 emissions steady at 2005 levels, equaling an
  absolute reduction of 23  percent since the program's inception
  in 1999. 2006 was the seventh year in which EPA collected
  annual SF6 emissions reports from magnesium partners.
• Organized and led the 2nd International Melt Protection
  Users  Group Round Table in conjunction with the 2006 Annual
  World Magnesium Conference in Beijing, China. More than
  50 industry and government participants from Asia, Europe,
  North America, and the  Middle East exchanged technical
  information on phasing out SF6-based melt protection.
• Completed the third study of alternative melt protection
  technologies and associated air emissions. Partner company,
  Lunt Manufacturing, hosted the study that included the
  partnership's first trials with dilute sulfur dioxide (S02)-based
  cover gas. The preliminary results were presented at EPA's
  4th International Conference on SF6 and the Environment in
  San Antonio, TX, in November 2006.
• Maintained U.S. industry participation in the partnership,
  representing 100  percent of primary magnesium production
  and 80 percent of domestic casting and recycling  capacity.
• Collaborated with the IMA, Japan Magnesium Association
  (JMA), and China Magnesium Association (CMA) to  create
  and publish a technical  brochure on alternative melt
  protection technologies. The brochure, published in  English,
  Japanese, and Chinese, was introduced at the 2006 Annual
  World Magnesium Conference in Beijing, China.
Mobile Air Conditioning Climate Protection
Partnership
Motor vehicle air conditioners contribute significantly to global
greenhouse gas emissions through vehicle gasoline
consumption and direct refrigerant emissions. In the  United
States alone, vehicle air conditioners use 7 billion gallons of
gasoline every year, equivalent to over 16 MMTCE.19 Refrigerant
emissions contribute more than 8.0 MMTCE annually.20

In 1998, the Society of Automotive Engineers (SAE), the  Mobile
Air Conditioning  Society Worldwide, and EPA formed a  global
partnership to reduce the climate impacts  of mobile air
conditioning (MAC) systems. The membership now includes
most of the world's vehicle manufacturers  and their suppliers,
environmental and industry non-governmental organizations
(NGOs), and representatives from industrialized and developing
country governments. The MAC Partnership has four goals:

• Promote cost-effective designs and improved service
  procedures to minimize refrigerant emissions.
• Promote next-generation mobile air conditioning systems that
  are better for the environment while satisfying customer
  safety, cost, and reliability concerns.
• Communicate  technical progress to policymakers and the
  public.
• Document current and near-term opportunities to improve the
  environmental performance of mobile air conditioning system
  design, operation, and maintenance.

The work under this partnership focuses on improving servicing
practices and system energy efficiency and on identifying
alternatives for the refrigerant HFC-134a. While HFC-134a has  no
ozone depleting  potential  and only one-sixth the global  warming
potential of the former MAC refrigerant, CFC-12, it is still a potent
greenhouse gas. One  pound of HFC-134a released  to the
atmosphere has the same potential global  warming effect as
1,300 pounds of C02.

The partnership  announced ambitious, quantitative goals in 2004
to reduce air conditioning fuel consumption by at least  30
percent and cut refrigerant emissions by 50 percent.
 19 Andersen, S., etal., 2004.
   HFC-134a emissions: the refrigerant most commonly used in mobile AC systems since 1994. This does not include emissions of CFC-12 from pre-1994 automobile
   models still in the U.S. fleet.

ENERGY STAR® and Other Climate Protection Partnerships 2006 Annual Report                                                         61

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           In 2006, the Mobile Air Conditioning Climate
           Protection Partnership:
           • Introduced new, improved refrigerant recovery and
             recycling machines that result in six times lower HFC-134a
             emissions.21 By 2015, these technical advances will reduce
             U.S. HFC-134a emissions by 2.4 million kilograms every year,
             equivalent to 425,000 MICE.
           • Demonstrated new leak-tight improved mobile air
             conditioning (IMAC) system that reduces AC energy
             consumption by up to 50 percent and reduces direct
             refrigerant emissions by more than 50 percent. Over its
             lifetime, an IMAC system will save more than $500 and
             avoid more than 4,500 Ibs of greenouse gas emissions (see
             Figure 24).
           • Announced a new cooperative  project with Delphi, General
             Motors, Ford, Volvo, Fiat, The Mobile Air Conditioning
             Society, and DOE's National Renewable Energy Laboratory
             to demonstrate an  environmentally superior vehicle air
             conditioning system that meets all EPA requirements and
             uses the refrigerant HFC-152a, which has 10 times less
             global warming impact than HFC-134a.22

           What to Expect in 2007 and  Beyond for the
           High GWP Gas  Programs
           The High GWP Gas partnership programs for the industrial
           sector will continue to work with  their partners and
           implement strategies to keep emissions below 1990 levels.
           EPA plans to:

           • Continue to implement agreements with industry to
             reduce greenhouse gas intensity for the aluminum,
             magnesium, and semiconductor sectors through the
             Climate VISION effort.
           • Host the 3rd Magnesium Melt Protection Users Group
             Round Table at the 64th Annual World Magnesium
             Conference in Vancouver, Canada. This EPA-sponsored
             workshop seeks to provide an open forum for the global
             magnesium industry to share experiences in testing and
             implementing emerging alternative melt protection
             technologies to eliminate SF6 emissions by 2010.
• Conduct a fourth study of alternative magnesium melt
  protection technologies with partner company, Garfield
  Alloys. This study will provide the partnership its first look
  at how effectively the alternative technologies can protect
  a magnesium ingot casting operation.
• Continue to assist electric power partners in updating SF6
  reduction goals through 2012.
• Evaluate field performance of new SF6 detection
  technologies for electric power systems.
• Launch Web-based technology sessions for electric power
  partners focusing on the technical aspects of various SF6
  emissions reduction options.
• Launch a Web-based emissions reduction training module
  for primary aluminum facility managers and pot-room
  operators. This module will increase awareness of
  greenhouse gas emissions from aluminum smelting and
  identify technical and operational opportunities to reduce
  them. Translation into other languages to facilitate global
  PFC emissions reduction efforts is also planned.
• Conduct a PFC Emissions Management Workshop in
  Beijing, China. China is the largest global producer of
  primary aluminum and has over 80 smelters.
• Perform a follow-up evaluation of a new electrically heated
  thermal PFC abatement device  at semiconductor partner,
  Qimonda's, manufacturing facility. The goal of the follow-up
  study is to learn how performance of such devices may
  decline overtime.
• Lead a collaborative effort to develop a new standard
  method for measuring PFC emissions abatement device
  performance.
• Maintain active partnerships with HCFC-22 chemical
  manufacturers to continue to reduce emissions  of HFC-23.
• Complete a comprehensive life-cycle climate  performance
  analysis  of alternative refrigerant systems in conjunction
  with Mobile Air Conditioning  Climate Protection  Partnership
  members to identify the system with the lowest climate
  impacts. Partnership members  will then select alternative
  technology for placement in future vehicles.
62
          21 Old refrigerant recovery and recycling machines recovered about 70% of the refrigerant in the vehicle AC system. Unrecovered refrigerant can escape to
            the atmosphere and add to the global greenhouse gas burden. New machines recover a minimum of 95% of the refrigerant.
          22 HFC-134a has a GWP of 1300. HFC-152a has a GWP of 120. HFC-152a also has the potential to reduce indirect greenhouse gas emissions (i.e., C02 emitted
            due to fuel combustion) because it is an inherently more energy-efficient refrigerant than HFC-134a.

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                                                                    HIGH GLOBAL WARMING POTENTIAL GAS PROGRAMS

    FIGURE 24. OVER THE LIFETIME OF A VEHICLE, AN IMAC SYSTEM WILL SAVE MORE THAN $500 AND PREVENT MORE
               THAN 4,500 LBS OF GREENHOUSE GAS EMISSIONS*
                                                                                   5000
                    I    I     I    I    I     I    I     I    I    I     I    I    I     I
                                                                                            • GREENHOUSE GAS
                                                                                              EMISSIONS AVOIDED
                                                                                            • DOLLARS SAVED
                                             CD
                                             3:
                                             CD
                1    234567
                LIFETIME OF VEHICLE (YEARS)
   8    9   10   11   12   13   14   15   16
    "Due to their leak-tight design, IMAC systems do not require the refrigerant recharging that regular mobile AC systems do.



    PROGRAM EVALUATION: MEASURING RESULTS IN THE HIGH GWP GAS PROGRAMS
    Annual high GWP gas reductions achieved by EPA's programs are estimated using well-established methods. Financial
    expenditures and savings are proprietary information of program partners and not included in the summary of economic benefits.
      VOLUNTARY ALUMINUM
      INDUSTRY PARTNERSHIP

      VAIP partners agree to report
      aluminum production and anode
      effect frequency and duration in
      order to estimate annual PFC
      emissions.
      Reductions are calculated by
      comparing current emissions to a
      business-as-usual baseline that uses
      the industry's 1990 emissions rate.
      Changes in the emissions rate (per
      ton production) are used to estimate
      the annual greenhouse gas
      emissions and reductions resulting
      from the program.
      The aluminum industry began
      making significant efforts to reduce
      PFC emissions as a direct result of
      EPA's climate partnership program.
      Therefore, all reductions achieved by
      partners are assumed to be the
      result of the program.
HFC-23 EMISSION REDUCTION
PROGRAM

Program partners report HCFC-22
production and HFC-23 emissions to
a third party that aggregates the
estimates and submits the total
estimates for the previous year
to EPA.
Reductions are calculated by
comparing current emissions to a
business-as-usual baseline that uses
the industry's 1990 emission rate.
Changes in the emissions rate are
used to estimate the annual
greenhouse gas emissions and
reductions resulting from the
program.
Subsequent to a series of meetings
with  EPA, industry began making
significant efforts to reduce HFC-23
emissions. All U.S. producers
participate in the program; therefore,
all reductions achieved by
manufacturers are assumed to be
the result of the program.
ENVIRONMENTAL STEWARDSHIP
PROGRAMS

Partners report emissions and
emissions reductions based on
jointly developed estimation
methods and reporting protocols.
Data collection methods are sector
specific, and data are submitted to
EPA either directly  or through a third
pa rty.
Reductions are calculated by
comparing current emissions to a
business-as-usual baseline, using
industry-wide  or company-specific
emissions rates in  a base year. The
reductions in emissions rates are
used to calculate the overall
greenhouse gas emissions
reductions from the program.
The share of the reductions
attributable to EPA's programs are
identified based on a detailed review
of program  activities and industry-
specific information.
ENERGY STAR® and Other Climate Protection Partnerships 2006 Annual Report
                                                                      63

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          COMPANIES  AND ORGANIZATIONS  MENTIONED  IN  THIS  REPORT
          3M  	17,38
          ABCNews.com 	21
          Accor Hotels  	30
          Advanced Energy 	17,27
          Advantage IQ  	17
          AGA Foodservice Equipment  	17,35
          Alliance to Save Energy 	49
          American Bar Association 	34
          American Council for an Energy-Efficient Economy 	49
          American Electric Power 	12,13,49
          American Gas  Association 	49
          American Institute of Architects 	32
          American Public Power Association  	49
          American Society for Healthcare Engineering of the
            American Hospital Association  	28
          Anderson Homes, Inc	17,26
          Arizona  Public Service  	17
          Arkema  Climate Protection Team  	7
          Ash Grove Cement Company  	39
          Aspen Skiing Company 	43
          ASTORIA HOMES   	17,26
          Atmos Energy  Corporation	53
          Austin Energy   	17,22,23,45,49
          Baltimore Aircoil Company 	13
          Baltimore Gas  and Electric 	49
          Basil Bandwagon Natural Market  	35
          Basil Brook Organic  Farm 	35
          Baxter  	12
          BHG.com 	20,21
          BMW Manufacturing 	65
          Bob Ward Companies  	17,26
          Bonneville Power Administration  	49
          Bosch Home Appliances  	17
Bosgraaf Homes  	17,27
BostonGlobe.com  	21
Building Owners and Managers Association
  International 	17,28
Building Performance Institute  	22
California Benchmarking Work Group 	30
California Department of General Services  	30
California Energy Commission  	49
California Portland Cement Company  	13,17,38,39
California Public Utilities Commission  	49
Carbon Disclosure Project  	38
Center of Excellence on SMART Innovations for Urban
  Climate and Energy 	48
CenterPoint Energy 	17
Chena Hot Springs Resort 	43
China Magnesium Association  	61
China Standard Certification Center  	16
China's National Development and Reform  Commission .. .63
Clean Energy-Environment Municipal Network 	2,6,48
Clean Energy-Environment State Partnership  	6,9,46,48
Climate Protection Campaign 	7
CMH Manufacturing, Inc	17,26
CNN 	56
Coldwater Creek  	43
Commonwealth of Pennsylvania  	43
Community Housing Partners Corporation  	17
Connecticut Consumer Counsel	49
Connecticut Department of Environmental Protection 	49
Connecticut Department of Public Utility Control  	49
Conservation Services Group 	13
CONSOL Energy 	54
Consortium for Energy Efficiency 	18
CoStar Group  	34
64

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  Council of Energy Resource Tribes  	49
  County of Butte, CA, Government Center  	43
  Cummins Inc	13
  Cytec Industries  	57
  Davenport Community School District  	17,31
  David Powers Homes 	17,26
  Delaware Solid Waste Authority  	57
  Dell Children's Medical Center of Central Texas  	45
  Delphi 	62
  Denton Affordable Housing Corporation  	17
  District of Columbia Public Service Commission  	49
  DPIS  Engineering, LLC 	17
  Duke  Energy 	49,53
  DuPont Company 	13,42
  Durr Systems 	57
  Ecoprint 	13
  Edison Electric Institute 	49
  Efficiency Vermont  	17,22
  Electric Power Research Institute  	49
  EMC   	13
  Ence  Homes  	17,26
  Energy Center of Wisconsin  	27
  Energy Inspectors 	17
  Energy Programs Consortium 	49
  Energy Services  Group  	17
  Energy Trust of Oregon, Inc	17,32
  Entergy Corporation  	7,13,55
  Enterprise  	17
  Environmental Defense  	49
  Exelon  	49
  Exxon Mobil's Baytown Refinery  	44,45
  Fiat  	72
  Food  Lion, LLC 	17,30,49
Ford Motor Company  	17,39,62
Fortune   	56
Fox Energy Specialists, The Nelrod Company  	17
Garfield Alloys 	62
Gas Appliance Manufacturers Association  	49
GE Consumer & Industrial  	17
Gehman & Company 	35
General Motors  	12,62
Georgia Power 	17, 57
Giant Eagle, Inc	17,30
Gorell Enterprises, Inc	17
Great River Energy  	49
Habitatfor Humanity 	29
Haven Properties  	17, 26
Hawaii Public Utility Commission  	48
Haworth, Inc	13
Holton Homes Inc	17,26
Houston Habitatfor Humanity  	17
HoustonChronicle.com 	21
HSBC North America  	7,13,43
IBM  	12,43
Improved Mobile Air Conditioning Servicing Emissions
  Reduction Team 	7
Innovative Design, Inc	17
Intel Corporation  	13
International Magnesium Association  	60
ISO New England, Inc	55
J.C. Penney Company, Inc	17,31
Jackson County Green Energy Park 	65
Jackson County North Carolina Board
  of Commissioners  	57
Japan Magnesium Association 	61
Jefferson Parish Landfill 	57
Jenkins Brick Company 	57
ENERGY STAR® and Other Climate Protection Partnerships 2006 Annual Report
                                                          65

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Johnson & Johnson  	42,43
Johnson Controls  	49
Jones Lang LaSalle 	17
K. Hovnanian Homes - Minnesota Division  	17,26
Keystone Community Church  	35
Kinder Morgan, Inc	53
Lafarge North America  	39
Lancaster County Solid Waste Management Authority ... ,57
Lennox Industries Inc	17,20
Lime.com 	21
Lockheed Martin  	13
Long Island Power Authority  	17,22
Louisville Metro Housing  	17
Lowe's Companies, Inc	17,21
Lunt Manufacturing  	61
Mack Trucks, Inc	13
Marathon Oil Company  	53
Marriott International, Inc	17,30
McDonald's USA  	17
Menards 	21
Merck & Co., Inc	17,37
Merrill Lynch  	38
Michigan Interfaith Power and Light  	35
Mid-American Energy  	32,49
Minnesota Public Utilities Commission  	49
Mitsubishi Motors Corporation & Mitsubishi
  Heavy Industries 	7
Mobile Air Conditioning Society Worldwide  	61
Montana-Dakota Utilities  	61
MSN.com  	20,21
MTV.com 	20,21
Mueller Energy Center 	45
Murray City Power  	57
Myobz LLC  	35
Nashville Area Habitatfor Humanity  	17
National Action Plan for Energy Efficiency
  Leadership Group  	48,49
National Association of Auto Dealers  	34
National Association of Energy Service Companies .,. ,32,49
National Association of Regulatory Utility
  Commissioners  	
.49
National Association of State Energy Officals  	49
National Council on Electricity Policy 	49
National Grid  	17
National Public Radio 	56
National Renewable Energy Laboratory  	12, 61,62
National Rural Electric Cooperative Association  	49
Nationwide Marketing Group  	17
Natural Resources Council of Maine  	7
Natural Resources Defense Counsel  	49
Nevada ENERGY STAR Partners  	17,26
New Jersey Board of Public Utilities  	49
New Jersey Green Homes Office - NJ Department of
  Community Affairs  	17
New Jersey Resources Corporation 	49
New York Power Authority  	49
New York State Energy Research and
  Development Authority  	17,32
New York State Public Services Commission  	49
New York-Presbyterian Hospital  	17
Nissan North America, Inc	39
North American Insulation Manufacturers  	49
North Bay Construction  	13
North Carolina Air Office  	49
North Carolina Energy Office  	49
North Carolina Housing Finance Authority  	27
Northeast ENERGY STAR Lighting and
  Appliance Initiative	
 17
Northwest Energy Efficiency Alliance  	17

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                                                             COMPANIES AND ORGANIZATIONS MENTIONED IN THIS REPORT
  NSTAR Electric & Gas  	60
  Office of the Ohio Consumers' Counsel  	49
  Oglethorpe Power Company 	60
  ONCOR  	26
  ONEOK Partners GP, L.L.C. (Northern Plains Natural Gas)  . .52
  Oracle Corporation  	13
  Oregon Public Utility Commission  	48
  OSRAM SYLVANIA  	17
  Pacific Gas and Electric Company  	17,22,32,49
  Pacificorp  	60
  Palm Harbor Homes  	17,26
  Pella Corporation 	17
  Penford Products Company  	39
  Pennsylvania Housing Finance Agency  	17
  PepsiCo 	17,37
  Philadelphia Housing Authority  	17
  PJM Interconnection 	49
  PNM Resources  	49,60
  PPL Corporation  	57
  PrAna 	43
  Precision Entry, Inc	17
  Progress Lighting  	17
  Providence Health Care 	30
  Raytheon Company  	13,17
  Recumbent Bike Riders, Inc	35
  Red Dot Corporation  	7
  Rocky Mountain  Power 	17
  Sacramento Municipal Utility District 	49
  San Diego Gas & Electric  	34
  San Diego Unified School District  	17,43
  San Francisco Zen Center 	36
  Santee Cooper 	49
  Save More Resources  .                             ..17
SC Johnson  	12
Schools for Energy Efficiency from Hallberg
  Engineering, Inc	12
Sea Gull Lighting Products, LLC 	17
Seaford School District  	17
Sears Holdings  	17,21
Seattle City Light  	49,60
Seattle Lighting  	17
Seminole Road Landfill  	57
Servidyne Systems  	49
Shaklee Corporation  	13
Shriners Hospitals for Children-Houston  	17,31
Smokey Mountain National Park 	57
Society of Automotive Engineers  	61
Sonoma Wine Company  	13
Southern  California Edison 	17,26,32,49
Southern  California Gas Company  	17
Southern  Company  	49
Southern  Energy Management 	17
Southwest Energy Conservation 	17
St. Lawrence Cement 	12,13
Staples, Inc	7,43
Starbucks Coffee Company  	42,43
State of Maine  	49
Steel Manufacturers  Association  	49
Sterling Planet  	13
STMicroelectronics  	13
Stonyfield Farm  	43
Susquehanna Fire Equipment Co	35
T.J.'s Market 	35
Tate and Lyle Ingredients Americas Inc	39
Tennessee Valley Authority 	49
Texas State Energy Conservation Office  	49
ENERGY STAR® and Other Climate Protection Partnerships 2006 Annual Report
                                                          67

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The Association of Energy Engineers 	36
The China Semiconductor Industry Association  	58
The Commodore Corporation 	17,26
The Dow Chemical Company 	49
The Holland, Inc	43
The Home Depot, Inc	17,20,21
The Mobile Air Conditioning Society  	61,62
The Music Mart, Inc	35
The National Energy Education Development Project  	17
The Yalumba Wine Company 	7
Tower Companies  	43
Toyota Motor Engineering & Manufacturing
  North America, Inc	17,39
Transwestern   	17
Tripps Grill and Six Pack  	35
Tristate Generation and Transmission Association, Inc.  ., .49
Turkey Hill Dairy 	57
TXU Electric Delivery  	17
U.S. Conference of Mayors  	34
U.S. Department of Agriculture  	52
U.S. Department of
  Energy 	2,6,10,14,16, 22,41,48, 54,61,62
U.S. Department of Housing and
  Urban Development  	17,22
U.S. Mine Safety and Health Administration  	55
U.S. Office of Management and Budget  	10
United Technologies Corporation  	12
University of New Mexico 	44,45
USAA Real Estate Company 	17,31
USAA Realty Company 	49
Vail Resorts	43
Vectren  Corporation  	49
Veolia Environmental Services 	57
Veridian Homes 	17,26,27
Vermont Energy Investment Corporation  	49
Victory Refrigeration 	35
Volvo Trucks North America, Inc	13, 62
Wal-Mart Stores, Inc	49
Washington Utilities and Transportation Commission  	49
WashingtonPost.com  	21
Waverly Light and Power  	49
Wells Fargo & Company  	42
Whirlpool Corporation  	17
WhiteWave Foods, Inc	43
Whole Foods Market 	42,43
Winton/Flair Custom Homes 	17,26
Wisconsin Focus on Energy 	17,22,23,32
Worcester East Side Community
  Development Corporation 	17
World Semiconductor Council  	58,60
Xcel Energy  	32,49
Yahoo.com   	21

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    FIGURES

    Figure 1.    Greenhouse gas emissions reductions exceed 70 MMTCE—equivalent to 45 million vehicles	3

    Figure 2.    ENERGY STAR benefits continue to grow	3

    Figure 3.    Improving energy efficiency in the building sector is critical to addressing climate change	5

    Figure 4.    Potential for additional greenhouse gas reductions from EPA climate partnership programs	7

    Figure 5.    U.S. C02 emissions by sector and non-C02 gases by percent of total GHGs	9

    Figure 6.    U.S. electricity generation by fuel type	9

    Figure 7.    The 107 Climate Leaders by sector	13

    Figure 8.    Over 2 billion ENERGY STAR qualified products sold since 1992	19

    Figure 9.    Awareness of ENERGY STAR growing in the United States	19

    Figure 10.   More than 600 organizations promote ENERGY STAR  Change a Light, Change the World in 2006	21

    Figure 11.   Home Performance with ENERGY STAR spreads across the country	23

    Figure 12.   Total ENERGY STAR qualified new homes doubled in  past 2 years	25

    Figure 13.   ENERGY STAR qualified new homes gaining market share	25

    Figure 14.   Building rating and ENERGY STAR building labeling gain momentum	29

    Figure 15.   Building rating activity by state	29

    Figure 16.   Cumulative buildings rated by type	31

    Figure 17.   More than 3,200 buildings have earned the ENERGY STAR label	31

    Figure 18.   Green power purchases and avoided GHG emissions almost doubled in 2006	43

    Figure 19.   Combined heat and power capacity by state as of 2006	45

    Figure 20.   Clean-Energy Environment State Partnership grows to  14 partners in 2006	47

    Figure 21.   Partner actions are projected to maintain methane emissions  below 1990 levels through 2012	51

    Figure 22.   Exporting the success of EPA's domestic methane programs: Methane to Markets (M2M)	55

    Figure 23.   Partner actions are projected to maintain emissions of high GWP gases below 1990 levels through 2012	59

    Figure 24.   Over the lifetime of a vehicle, an IMAC system will save more than $500 and prevent more than 4,500 Ibs of
               greenhouse gas emissions	63
ENERGY STAR® and Other Climate Protection Partnerships 2006 Annual Report                                                         69

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           TABLES
           Table 1.    Annual and cumulative benefits from partner actions through 2006
                     (in billions of 2006 dollars and MMTCE)	3

           Table 2.    Long-term greenhouse gas reduction goals for EPA climate partnership programs (MMTCE)	7

           Table 3.    Market barriers addressed by EPA's climate partnership programs	9

           Table 4.    Overview of EPA climate partnership programs reviewed in this annual report with
                     greenhouse gas reductions since 2000	11

           Table 5.    Climate Leaders key program indicators for 2004-2006	13

           Table 6.    Three Climate Leaders achieve their climate protection goals in 2006	13

           Table?.    21 Climate Leaders that set aggressive climate protection goals in 2006	13

           Table 8.    ENERGY STAR program achievements exceed goals in 2006	15

           Table 9.    ENERGY STAR key program indicators, 2000 and 2006	15

           Table 10.   ENERGY STAR qualified products	16

           Table 11.   ENERGY STAR residential product specifications added, revised, and in progress	19

           Table 12.   ENERGY STAR commercial product specifications added, revised, and in progress	35

           Table 13.   Summary of EPA ENERGY STAR industrial focuses	37

           Table 14.   EPA introduces the ENERGY STAR label for superior energy management of industrial plants	39

           Table 15.   Greenhouse gas emissions avoided  by EPA's Clean  Energy Supply Programs (MMTCE)	43

           Table 16.   EPA provides resources to policymakers  during each step of the policy development process 	47

           Table 17.   In 2006,89 organizations committed to advancing energy efficiency through the
                     National Action Plan for Energy Efficiency	49

           Table 18.   National Action Plan for Energy Efficiency Leadership Group and  Observers 	49

           Table 19.   Global warming potentials (GWPs) and atmospheric lifetimes of greenhouse gases	51

           Table 20.   EPA Methane Programs meet and surpass goals	51

           Table 21.   Climate VISION goals for EPA's High GWP Gas  Programs	59

           Table 22.   Goals and achievements of EPA's High GWP Gas Programs 	59
70

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     REFERENCES
    Andersen, S., V. Hovland, and J. Rugh. 2004. "Significant Fuel Savings and Emission Reductions by Improving Vehicle Air Conditioning: A
    Study by the U.S. Department of Energy's National Renewable Energy Laboratory." Presented at the 15th Annual Earth Technologies Forum
    and Mobile Air Conditioning Summit, April 15, 2004: Washington D.C.

    Climate Protection Partnerships Division, U.S. Environmental Protection Agency. 2007. Partner and emissions data for 2006 provided by
    individual programs within the Climate Protection Partnerships, Office of Atmospheric Programs.

    Energy Information Administration (EIA). 2007a. Annual Energy Outlook 2007 with Projections to 2030. Office of Integrated Analysis and
    Forecasting. February. Available online at www.eia.doe.gov/oiaf/aeo/index.html (DOE/EIA-0383(2007)).

    EIA. 2007b. Annual Energy Review 2006. Office of Energy Markets and End Use. June. Available online at
    www.eia.doe.gov/emeu/aer/contents.html (DOE/EIA-0384(2006)).

    EIA. 2006. Electric Power Annual with data for 2005. November. Available only online at
    www.eia. doe. gov/cneaf/electricity/epa/epa_sum. html.

    EIA. 2001. "Energy Information Administration 2001 Residential Energy Consumption Survey." Available online at
    www.eia.doe.gov/emeu/recs/.

    Horowitz, M.J. 2007a. "Changes in Electricity Demand in the United States from the 1970s to 2003." July. The Energy Journal, Vol 28, Summer
    (3):93-119.

    Horowitz, M.J. 2007b. "Revised Final Estimates of 2006 ENERGY STAR Commercial Buildings Accomplishments." Memorandum to EPA
    September 12.

    Horowitz, M.J. 2004. "Electricity Intensity in the Commercial Sector: Market and Public Program Effects." 77?e Energy Journal, Vol 25, Spring
    (21:115-137.

    Horowitz, M.J. 2001. "Economic Indicators of Market Transformation: Energy Efficient Lighting and EPA's Green  Lights." The Energy Journal,
    Vol.22, Fall (41:95-122.

    ICF International, Inc. 2007. An Estimate of Emissions Reductions Accomplished by ENERGY STAR Industrial Partners. Prepared for EPA's
    Climate Protection Partnerships.

    Intergovernmental Panel on Climate Change (IPCC). 1996. Climate Change 1995: The Science of Climate Change. J.T. Houghton, L.G. Meira
    Filho, B.A. Callander, N. Harris, A. Kattenberg, and K. Maskell, eds.  Cambridge  University Press. Cambridge, UK.

    Joint Center for Housing Growth, Harvard  University. 2007. "Foundations for Future Growth  in the Remodeling Industry." Available online at
    www.jchs.harvard.edu/publications/remodeling/remodeling2007/r07-1.pdf

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

    Koomey, J., A. Rosenfeld, and A. Gadgil. 1990. Conservation Screening Curves  to Compare Efficiency Investments at Power Plants. Lawrence
    Berkeley National Laboratory. October. (LBNL-27286).

    Sanchez, M., C.A. Webber, R.E. Brown, and G.K Homan. 2007. Status Report: Savings Estimates for the ENERGY STAR Voluntary Labeling
    Program. Lawrence Berkeley National Laboratory. (LBNL-56380 (2007)).

    U.S. Census Bureau. 2006. "Statistics for Industry Groups and Industries: 2005." Annual Survey of Manufactures. November.

    U.S. Census Bureau. 2005. "Statistics for Industry Groups and Industries: 2004." Annual Survey of Manufactures. December.

    U.S. Environmental Protection Agency (U.S. EPA). 2007a. Emissions & Generation Resource Integrated  Database 2006 Version 2.1 (eGRID2006
    Version 2.1). April.

    U.S. EPA. 2007b. Inventory of Greenhouse  Gas Emissions and Sinks: 1990-2005. Office of Atmospheric Programs. April.
    (EPA430-R-07-002).

    U.S. EPA. 2007c. National Awareness of ENERGY STAR® for 2006: Analysis of 2006 CEE Household Survey. Office of Air and Radiation, Climate
    Protection Partnerships Division. Available online at www.cee1.org/eval/2006_ES_survey_rep.pdf.

    U.S. EPA. 2006. "Documentation for EPA Base Case 2006 (V.3.0) Using the Integrated  Planning  Model." November. Available online at
    www.epa.gov/airmarkets/progsregs/epa-ipm/index.html/docs.

    Vattenfall AB. 2007. "Vattenfall's Climate Map 2030." Available online at
    www.vattenfall.com/www/vf_com/vf_com/Gemeinsame_lnhalte/DOCUMENT/360168vatt/386246envi/643012clim/P02.pdf.

    Webber,  C.A., R.E. Brown, M. McWhinney, and J.G. Koomey. 2000. "Savings estimates for the  ENERGY STAR voluntary labeling program."
    Energy Policy28 (2000) 1137-1149.



ENERGY STAR® and Other Climate Protection Partnerships 2006 Annual Report                                                              71

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United States
Environmental Protection Agency
Air and Radiation 6202J
EPA 430-R-07-010
www.epa.gov
September 2007

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