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.
-------
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
-------
• 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.
-------
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.
-------
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
27
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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
31
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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
35
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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.
-------
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
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2006
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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
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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)).
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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
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Horowitz, M.J. 2001. "Economic Indicators of Market Transformation: Energy Efficient Lighting and EPA's Green Lights." The Energy Journal,
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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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