ENERGY STAR® and Other
Climate Protection Partnerships
ENERGY STAR I 2007 Annual ReP°rt
United States
Environmental Protection
Agency
-------
ENERGY STAR® AND OTHER CLIMATE PROTECTION PARTNERSHIPS
2007 ANNUAL REPORT
CONTENTS
Letter from the Administrator 1
Executive Summary 2
Highlights of 2007 2
Looking Forward to 2008 and Beyond 4
Introduction to EPA's Climate Protection Programs 8
Climate Leaders 12
ENERGY STAR Overview 14
ENERGY STAR in the Residential Sector 18
ENERGY STAR in the Commercial Sector 24
ENERGY STAR in the Industrial Sector 30
Climate Choice 34
Clean Energy Supply Programs 36
Green Power Partnership 36
Combined Heat and Power Partnership 36
State and Local Programs and Initiatives 40
Clean Energy-Environment State Partnership 40
Clean Energy-Environment Municipal Network 40
Clean Energy and Utility Policy Programs 42
Methane Programs 44
Natural Gas STAR Program 44
AgSTAR Program 46
Coalbed Methane Outreach Program 46
Landfill Methane Outreach Program 48
Fluorinated Gas Programs 50
Demonstrating Progress: Measuring Results of the EPA Climate Protection Partnership Programs 56
List of Figures 62
List of Tables 63
References 64
For additional information, please visit our Web sites at www.epa.gov/cppd, www.energystar.gov,
www.epa.gov/cppd/climatechoice, 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 2007 Annual Report is EPA's Climate Protection Partnership Programs unless otherwise noted.
Historical totals have been updated based on the most recent available data.
-------
LETTER FROM THE ADMINISTRATOR
October 2008
I am pleased to present this report on the accomplishments of the U.S. Environmental Protection
Agency's climate protection programs. Through these partnerships, EPA has provided tools, resources,
and guidance to thousands of organizations nationwide during the past 15 years to reduce greenhouse
gas emissions by investing in energy efficiency and clean energy. Together, we made 2007 our most
successful year to date and made significant progress toward reaching the President's goal to improve
greenhouse gas intensity by 18 percent by 2012.
Increasing the use of energy-efficient products and practices is a critical strategy in the fight against
global warming. This year EPA offered more energy efficiency solutions to a wider audience than ever
through the ENERGY STAR program—with impressive results. In 2007 alone, Americans, with the help of
ENERGY STAR, saved more than $16 billion on their utility bills while preventing greenhouse gas
emissions equivalent to those from 27 million vehicles.
EPA is also actively involved in increasing the supply of clean energy resources. The Fortune 500 partners
of the Green Power Partnership responded successfully to EPA's challenge to double their purchases of
green electricity in 2007 by purchasing more than 6.5 billion kWh and contributing more than half of the
11.5 billion kWh purchased by all partners last year. The more than 200 partners of the Combined Heat
and Power Partnership have installed over 4,450 MW of new combined heat and power capacity.
In 2007, EPA's partners used EPA tools and resources to avoid emissions of methane and fluorinated
gases equivalent to those from more than 20 million vehicles. As a result, emissions of these gases
remain significantly below 1990 levels.
Corporations, utilities, and state and local governments are capitalizing on the multiple benefits of energy
efficiency, clean energy, and other strategies to reduce greenhouse gas emissions. EPA's corporate
commitment program, Climate Leaders, grew nearly 50 percent to 155 partners in 2007. EPA also provided
support to utilities and state and local governments as they develop and implement the energy efficiency
and clean energy policies that can reduce greenhouse gas emissions.
The success of ENERGY STAR and EPA's other partnership programs proves that proactive climate
protection efforts can be part of successful business strategies. Together with our partners, EPA looks
forward to even greater results in 2008!
Stephen L Johnson
Administrator
U.S. Environmental Protection Agency
ENERGY STAR® and Other Climate Protection Partnerships 2007 Annual Report
-------
EXECUTIVE SUMMARY
Global climate change has emerged as one of the most
serious environmental problems facing the United States
today. Combined with rising energy prices, increased
volatility in energy markets, and growing concerns about
national energy security, the need to capitalize on proven,
cost-effective opportunities to reduce greenhouse gas
emissions in the energy sector has never been greater. In
2007, 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 by breaking down
the identifiable market barriers that limit investments in
energy efficiency, clean energy supply, and other climate-
friendly technologies and practices.
Through EPA's suite of well-designed partnerships, more
than 14,000 organizations nationwide have invested in
protecting the environment and made significant progress
toward the President's greenhouse gas intensity reduction
goal for 20121 (see Table 1 and Figure 1).
The measures adopted by EPA's partners through 2007
have resulted in the following major environmental and
economic benefits:
• Prevention of 78 million metric tons (in MMTCE2) of
greenhouse gases, equivalent to the emissions from
52 million vehicles, and net savings to consumers and
businesses of $17 billion in 2007 alone.
• Prevention of more than 1,000 MMTCE and net savings
to consumers and businesses of about $200 billion over
the lifetime of their investments.
• Investment of more than $55 billion in energy-efficient,
climate-friendly technologies.
Highlights of 2007
• Climate Leaders, the Administration's corporate
leadership program, grew nearly 50 percent in 2007
for a total of 155 partners. Seven partner companies
announced that they had achieved greenhouse gas
reduction goals set through Climate Leaders. More
than half of the partners have announced aggressive
targets for the future. Together, these goals represent
a potential reduction in greenhouse gas emissions
of more than 13 MMTCE (see p. 12) over business-as-
usual outcomes.
1 Through the ENERGY STAR program in 2007, EPA helped
Americans save 180 billion kilowatt-hours (kWh)—about
5 percent of U.S. electricity demand—prevent the
emissions of 40 MMTCE of greenhouse gases, and save
$16 billion on their energy bills (see Figure 2). Other
ENERGY STAR program highlights include:
Offering More Qualified Products to More Consumers
More than 2,000 manufacturers are using the
ENERGY STAR label on over 40,000 individual product
models across 50 product categories.
Americans purchased about 500 million ENERGY
STAR qualified products in 2007, bringing the total to
more than 2.5 billion since 1992.
EPA expanded the suite of ENERGY STAR qualified
products to include digital-to-analog converter
boxes (DTAs), decorative light strings, and
commercial dishwashers and ice machines, and
completed important revisions to the specifications
for residential light fixtures and roofing products.
Raising the Bar for New Home Construction
Despite the downturn in the new housing market,
more than 120,000 new homes were constructed
to meet ENERGY STAR guidelines in 2007, which
represents about 12 percent of the U.S. new housing
starts in 2007 and brings the total to almost
840,000 qualified homes nationwide.
Improving the Comfort and Efficiency of Existing Homes
• More than 38,000 homeowners are enjoying greater
savings and comfort in their homes thanks to state
and locally sponsored Home Performance with
ENERGY STAR programs. Seven sponsors launched
new programs in 2007, bringing the total to more than
20 programs in 21 states.
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 about 70 percent of the emissions reductions needed to achieve the President's goal of an 18 percent
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 annual 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.
-------
EXECUTIVE SUMMARY
TABLE 1. Annual and cumulative benefits from partner actions through 2007
(in billions of 2007 dollars and MMTCE)
Program
ENERGY STAR Total
Qualified Products and Homes
Buildings
Industry
Clean Energy Supply Programs
Methane Programs
Fluorinated Gas Programs
TOTAL
BENEFITS
Net Savings
(Billion $)
$8.8
$5.4
$2.1
—
$0.5
—
$16.7
Emissions
Avoided
(MMTCE)
42.4
18.1
18.0
6.3
4.8
17.4
13.8
78.4
PV of Bill
Savings
(Billion $)
$244.5
$118.9
$99.6
$26.0
—
$10.1
—
$254.7
CUMULATIVE BENEFITS 1993 - 2017
PV of Technology
Expenditures
(Billion $)
$15.1
$32.7
$5.3
na
$4.0
na
$57.1
PV of Net
Savings
(Billion $)
$191.4
$103.8
$66.9
$20.7
—
$6.1
—
$197.5
Emissions
Avoided
(MMTCE)
233
214
90
63
229
243
1,070
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 page 56.
.- Not applicable
na: Not available
FIGURE 1. Greenhouse gas emissions reductions exceed 75 MMTCE—Equivalent to emissions from 52 million vehicles
tn
en
2000
2001
2002
2003
2004
2005
2006
2007
I TOTAL FLUORINATED
GAS SAVINGS
| TOTAL CH4 SAVINGS
| TOTAL C02 SAVINGS
FIGURE 2. ENERGY STAR benefits continue to grow
16
14
15
12
10 PT_T*
I I
I I
i i
i i
i i
2000 2001 2002 2003 2004 2005 2006 2007
UTILITY BILL SAVINGS (in billions)
10
12
-24-
22
16
27
I I I
I III
I III
2000 2001 2002 2003 2004 2005 2006 2007
EMISSIONS SAVED INVEHICLE EQUIVALENTS (in millions)
ENERGY STAR® and Other Climate Protection Partnerships 2007 Annual Report
-------
Saving Energy in the Commercial and Industrial Sectors
• Almost 800 organizations and individuals nationwide
have joined the ENERGY STAR Challenge to improve
the energy efficiency of their commercial buildings by
10 percenter more.
• Use of EPA's energy performance rating system
experienced tremendous growth; building owners
and operators used the system to rate the
performance of more than 62,000 buildings—
doubling the number of buildings rated in just one
year and representing more than 7.5 billion square
feet of building space.
• More buildings than ever have qualified for the
ENERGY STAR, over 4,000, representing more than
740 million square feet. These buildings use nearly 40
percent less energy than typical buildings.
• Almost 40 auto assembly, corn refining, cement—and
for the first time, petroleum refining—facilities in the
United States have earned the ENERGY STAR for
superior energy performance.
• More than 1,000 partners in EPA's Clean Energy Supply
programs, which include the Green Power Partnership
and Combined Heat and Power (CHP) Partnership,
purchased more than 11 billion kWh of green power
in 2007. Collectively, they have installed more than
4,450 megawatts (MW) of new, environmentally
beneficial CHP capacity.
• EPA enhanced its efforts to assist state and local
governments in their pursuit of clean energy policies
by expanding its state partnership and municipal
network to include 15 states and hundreds of local
governments.
• The EPA- and U.S. Department of Energy (DOE)-
facilitated National Action Plan for Energy Efficiency
(Action Plan) released Vision for 2025: Developing a
Framework for Change, which offers a framework of
state-specific policies and programs to enable the
acquisition of all cost-effective energy efficiency
measures by 2025. Across 49 states, 120 organizations
have made commitments to advance energy efficiency
through the Action Plan.
• The methane (CH4) programs continued to reduce
emissions of this potent greenhouse gas from landfills,
agriculture, natural gas systems, and coal mines. In
2007, these programs avoided more than 17 MMTCE of
greenhouse gas emissions, exceeding their emissions
reductions goals and maintaining national methane
emissions 11 percent below 1990 levels.
• The partnerships that focus on fluorinated gases
(F-gases) kept national emissions of these gases from
industrial sources over 55 percent below 1990 levels.
Further, EPA has made important progress in the effort
to reduce emissions related to vehicle air conditioners.
Collectively, these programs avoided more than
13 MMTCE of greenhouse gas emissions in 2007.
• In 2007, EPA recognized the accomplishments of
outstanding partners in the voluntary partnership
programs described above. In addition, EPA's International
Climate Protection Awards honored forward-thinking
individuals, companies, and organizations for their
leadership and achievements (see Figure 4, p. 7).
Looking Forward to 2008 and Beyond
EPA continually refines and expands its climate protection
programs to increase the environmental benefits. As a
result, the benefits from these partnership programs have
more than doubled since 2000 and are on trackto double
again within 10 years, while meeting aggressive interim
goals (see Table 3 and Figure 3, p. 7). Key steps EPA will
take in 2008 and beyond to reach those goals are
outlined below.
Climate Leaders. In 2008, 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 expects to
welcome 35 new partners into Climate Leaders and have
25 existing partners announce reduction targets. In
addition, EPA will incorporate the tenets of Climate Leaders
program protocols and lessons from partner reporting
experiences into the development of future climate policy.
ENERGY STAR. A growing body of evidence
demonstrates that efforts such as ENERGY STAR are
critical to addressing climate change. The greenhouse
gas and energy bill savings from the ENERGY STAR program
in 2007 were 15 percent greater than those of the prior
year and more than double the savings in 2000 (see
Table 2). In 2008 and beyond, EPA will continue to build
the ENERGY STAR program as a credible guide for
investing in energy efficiency for consumers, businesses,
and other organizations to leverage as part of their own
efficiency and greenhouse gas reduction efforts. EPA will
also maintain the integrity and build the value of the
ENERGY STAR program.
-------
EXECUTIVE SUMMARY
TABLE 2. ENERGY STAR key program indicators, 2000 and 2007
ENERGY STAR
PROGRAM STRATEGY
Efficient Products
(for more information, see p. 14)
Home Improvement
(for more information, see p. 20)
New Homes
(for more information, see p. 22)
Existing Commercial Buildings
(for more information, see p. 24)
New Commercial Buildings
(for more information, see p. 28)
Industrial Improvements
(for more information, see p. 30)
Annual Results
(for more information, see p. 14)
KEY INDICATOR
Product Categories Eligible forthe ENERGY STAR
Individual Product Models Qualified
Products Sold
Public Awareness
Manufacturing Partners
Retail Partners
EE Program Administrator Partners
Homes Improved through
Home Performance with ENERGY STAR1
EE Program Administrator Partners
Homes Benchmarked using Yardstick
Number of New Homes Built1
Percent of National New Home Starts
States and Metro Areas with over 20% Market Share
Builder Partners
Number of Buildings Rated1
Building Square Footage Rated1
Percent of Commercial Square Footage Rated
Building Types Eligible for the ENERGY STAR Label
Number of Buildings Labeled1
Building Square Footage Labeled
Number of Labeled Buildings Using 50% Less Energy
Number of Buildings Achieving Designed to Earn
the ENERGY STAR
Industrial Partners
Industrial Sectors (and subsectors)
Facility Types Eligible for the ENERGY STAR Label
Number of Facilities Labeled
Energy Saved (kWh)
Emissions Avoided (MMTCE)
Net Savings (USD)
YEAR
33
11,000
600 million
40%
1,600
550
100
--
--
25,000
<1%
0
1,600
4,200
800 million
1%
2
545
128 million
--
--
0
--
-
62 billion
15.8
$5 billion
OF RESULTS
2007
>50
>40,000
>2.5 billion
>70%
>2,000
>1,000
>550
~ 40,000
>20
>95,000
~ 840,000
~ 12%
39
>5,000
>62,000
>7.5 billion
~ 10%
11
>4,000
>740 million
-500
35
-480
12
4
37
180 billion
>40
$16 billion
'Results are cumulative. '•The cumulative total of product sales across the entire ENERGY STAR program, including those from the efforts of the U.S. Department of Energy. The results for
energy sa ved and the resulting environmental and economic benefits represent EPA efforts alone.
ENERGY STAR® and Other Climate Protection Partnerships 2007 Annual Report
-------
Key 2008 milestones for the ENERGY STAR program include:
• Expanding the ENERGY STAR label to new product
categories when the core program principles of
cost-effectiveness and maintenance of product
performance can be met. EPA will revise the
requirements for products already in the program as
conditions warrant. In 2008, EPA expects to finalize
revised specifications for TVs, set-top boxes, external
power adapters, computers, imaging equipment,
commercial food-grade refrigerators, and furnaces.
EPA will also continue to work with its vast network of
partners to encourage consumers and businesses to
choose ENERGY STAR qualified products. Overall, EPA
expects more than 300 million ENERGY STAR qualified
products to be sold each year for the foreseeable future.
• Partnering with more home builders and other
organizations in the industry to construct more than
100,000 new ENERGY STAR qualified homes and bring
them to more markets throughout the country.
Additionally, EPA will evaluate pilots for a Multi-Family
High Rise Program and explore the next generation of
ENERGY STAR specifications for new homes through
EPA's Climate Choice program.
• Expanding Home Performance with ENERGY STAR by
launching the program in four new markets and having
more than 15,000 homes retrofitted in 2008, bringing the
national total to over 50,000 homes made more efficient.
• Intensifying building efficiency efforts across the
commercial buildings sector through the ENERGY
STAR Challenge and other activities. EPA will continue
to partner with states, trade associations, and others
to engage, train, and facilitate building improvements.
Strategies include advancing effective energy
management as a core business strategy, as well as
promoting standardized measurement systems for
assessing the efficiency of these facilities, targeting
improvements, and tracking progress over time.
• Building on the progress made to date in the industrial
sector, which includes finalizing two industrial energy
performance indicators (EPIs) and expanding the
system for labeling to certain food processing and
glass manufacturing plants in 2008. EPA expects to
expand its work to more industrial partners and add
two additional Industrial Focus sectors each year.
• Providing recognition to partners who have demonstrated
outstanding leadership across the residential,
commercial, and industrial sectors through the ENERGY
STAR Partner of the Year Awards and other efforts.
Clean Energy Supply Programs. In 2008, EPA
will continue to help partners improve the supply of the
nation's clean energy resources. The Green Power
Partnership will support the purchase of more than
16 billion kWh of green power by extending the highly
successful Fortune 500 Challenge into a second year.
The CHP Partnership will assist in identifying and
developing new CHP projects with special emphasis
on the dry mill ethanol sector, wastewater treatment
facilities, and casinos and hotels.
State and Local Government Clean Energy
Programs. EPA will continue to assist state and local
officials in their quest to develop and implement clean
energy strategies through its state partnership, municipal
network, and utility policy programs. In 2008, EPA plans to
add one new partner to the state partnership, share best
policy practices, expand the municipal network, and
provide support to communities addressing urban heat
island effects. In its role as co-facilitator of the Action
Plan, EPA will focus on increasing outreach and
education, and developing additional resources to help
utilities and other stakeholders fully capture the benefits of
energy efficiency.
Methane and Fluorinated Gas Programs.
National methane emissions and F-gas emissions are
currently below 1990 baselines3 and are expected to stay
that way into the future because of EPA's partnership
programs, such as the Landfill Methane Outreach
Program, the Natural Gas STAR Program, and a suite of
programs addressing the F-gases. In 2008, EPA will strive
for further achievements in 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 F-gases.
• Continuing to spread the success of EPA's domestic
methane partnership programs overseas through the
Methane to Markets Partnership.
Emissions do not include those used in mobile air conditioning or as replacements for ozone depleting substances.
-------
EXECUTIVE SUMMARY
TABLE 3. Long-term greenhouse gas reduction goals for EPA Climate Partnership Programs (MMTCE)
PROGRAM
ENERGY STAR*
Clean Energy Supply Programs
Methane Programs
Fluorinated Gas Programs
TOTAL
ACCOMPLISHMENTS
42.4
4.8
17.4
13.8
78.4
2012
52
8
18
19
97
64
12
20
22
118
"Does not include ENERGY STAR products managed by DOE.
FIGURE 3. Potential for additional greenhouse gas reductions from EPA Climate Partnership Programs
1996 1998
YEARS 1995-2017
2000
2002
2004
2006
2008
2010
2012
2014
2016 2017
NOTE: Historical totals updated based on most recent data available.
FIGURE 4. International Climate Protection Awards
EPA established the
Climate Protection
Awards in 1998 to
recognize outstanding
accomplishments in
protecting the Earth's
climate. So far,
154 individuals,
companies, and organizations from 18 countries
have earned the EPA Climate Protection Award.
This year's 15 winners are from Argentina,
Costa Rica, India, and the United States. They
are reducing greenhouse gas emissions by
improving energy efficiency, introducing new
technologies, purchasing green power, and
inspiring local and global action to protect the
climate. Each winner serves as an example and
inspiration for others to take action to protect
the climate.
CORPORATE AND GOVERNMENT
AWARD WINNERS
Advanced Micro Devices
Sunnydale, CA
Austin Energy
Austin, TX
City of Albuquerque
Albuquerque, NM
Xerox Corporation
Norwalk, CT
MEGTEC Systems
De Pere, Wl
TEAM AWARD WINNERS
Climate Protection Team of Mr.
Durwood Zaelke & Mr. Scott Stone
Washington, DC
Life Cycle Analysis Team of Dr. Stella
Papasavva& Mr. William R. Hill
Warren, Ml
INDIVIDUAL AWARD WINNERS
Ms. Gay Browne
Montecito, CA
Mr. John Morrill
Arlington, VA
Mr. Kenneth Davis
Warren Air Force Base, WY
Ms. Laura Miller
Dallas, TX
Ms. Laurie David
Pacific Palisades, CA
Mr. Marco Gonzalez
Costa Rica
Ms. Romina Picolotti
Buenos Aires, Argentina
LIFETIME ACHIEVEMENT AWARD
Dr. Rajendra K. Pachauri
New Delhi, India
ENERGY STAR® and Other Climate Protection Partnerships 2007 Annual Report
-------
INTRODUCTION TO ERA'S CLIMATE PROTECTION PROGRAMS
In the United States, there is enormous potential to cost-
effectively reduce greenhouse gas emissions; however,
pervasive market barriers have long discouraged some
consumers and organizations from taking advantage of
these "win-win" opportunities. For the past 15 years, the
U.S. Environmental Protection Agency's (EPA's) voluntary
climate protection programs have helped break down the
barriers that can stifle cost-effective investment in energy
efficiency, clean energy, and other climate-friendly
technologies and practices (see Table 4, p. 11). EPA's
public-private partnerships provide a suite of tools,
resources, practices, and policies for thousands of
partners, who count on and benefit from—
• Objective information
• Technical assistance
• Recognition for environmental leadership
Through these partnerships, U.S. consumers, businesses,
and organizations are stepping up to the nation's
challenge and taking action to reduce their energy use,
avoid greenhouse gas emissions, and hedge against
volatile fuel markets. Their actions result in real financial
and environmental benefits across the residential,
commercial, and industrial sectors, which increase every
year as the number of partners and variety of tools and
strategies offered through EPA's programs continue to
grow. The impressive level of benefits achieved in 2007 is
expected to double by 2017, making EPA's suite of climate
protection programs an important component of the
President's plan to reduce greenhouse gas intensity
18 percent by 2012.
The programs summarized in this report4 focus on the
broad strategies described below to achieve their
environmental goals:
Corporate Commitments To Reduce
Greenhouse Gas Emissions
CLIMATE
U.S. Environmental Protection Agency
Partners in EPA's Climate
Leaders program are
Fortune 500 and other
leading corporations that
ENERGYSTAR
have committed to aggressively reducing their
greenhouse gas (GHG) 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
annually report their progress to EPA. Climate Leaders are
reducing their carbon footprint and earning recognition for
environmental stewardship through the program by
investing in energy efficiency, clean energy, and
measures to reduce emissions of other greenhouse gases.
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 (see Figure 5). Since 1992, EPA has helped
individuals and organizations nationwide adopt cost-
effective, energy-efficient technologies and practices and
save up to 30 percent on their energy bills by:
• Clearly identifying energy-efficient products with
superior performance in the market place.
• Improving the energy efficiency standards of new
home construction and existing home renovations.
• Promoting strategic energy management practices
across the commercial and industrial sectors so that
businesses and organizations can proactively manage
their energy use (see Figure 6, p. 11).
• Developing new efforts to accelerate the adoption of
emerging greenhouse gas-reducing technologies.
Expansion of Clean Energy Supply
*-EPA In 2001, EPA launched two
partnership programs in
fulfillment of the National Energy
Policy—the Green Power
Partnership and the Combined
Heat and Power (CHP)
Partnership—to increase the nation's supply of clean
GREEN
POWER
PARTNERSHIP
CHP
&EPA COMBINED HEAT AND
POWER PARTNERSHIP
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 110 million metric tons of carbon equivalent (MMTCE) in 2007.
-------
INTRODUCTION
FIGURE 5. Two new reports highlight the critical role of energy efficiency and clean energy as low-cost
opportunities for greenhouse gas emissions reductions
As the effects of climate change continue to manifest themselves in the
United States and abroad, the demand is growing for near-term, low-
cost solutions across all sectors of the economy. In 2007, two new
important reports were published that highlight the substantial
opportunities for low-cost greenhouse gas emissions reductions
through energy efficiency and clean energy. These reports join a
growing body of research that conclude that ENERGY STAR and
EPAs other climate protection programs are delivering low-cost, near-
term solutions to address climate change.
The Intergovernmental Panel on Climate Change (IPCC) Fourth
Assessment Report: Working Group III, approved in May 2007, presents
a comprehensive update on global greenhouse gas mitigation
opportunities and reaches the following conclusions:
* Globally, the residential and commercial sectors have the potential
to reduce approximately 29 percent of the projected baseline
emissions by 2020 at negative cost—the highest potential
improvement among all sectors studied in the report.
* Sound policy combined with strong enforcement is necessary to
overcome the substantial barriers that exist, especially in the
residential and commercial sectors, to achieve these improvements.
* Substantial reductions in carbon dioxide (CO^) emissions from
energy use in buildings can be achieved over the coming years using
mature technologies for energy efficiency that already exist widely
and that have been successfully used.
In December 2007, the management consulting firm McKinsey &
Company released its report Reducing U.S. Greenhouse Gas Emissions:
How Much at What Cost?, which concludes.
* By 2030, the United States has the potential to reduce greenhouse
gas emissions by 3.0 to 4.5 gigatons of CO2 equivalent using low-
cost abatement options—available at marginal costs of less than
$50 per ton if the nation can capture sizable gains from energy
efficiency and clean energy.
* Prompt action and a strong, coordinated, economy-wide
implementation strategy is necessary in the near future to reduce
greenhouse gas emissions at the lowest cost to the economy.
* Energy efficiency in buildings and appliances has the potential to
reduce greenhouse gas emissions by 710 — 870 megatons through
options including lighting retrofits, office electronics, appliances,
and improved heating, ventilation, and air conditioning systems
(see figure below).
* Almost 40 percent of targeted reductions, primarily improvements
in energy efficiency in buildings, could be achieved at negative costs,
which could substantially offset the cost of other higher cost abatement
options, although it requires some funding to capture these opportunities.
* These savings could only be realized by overcoming persistent
barriers to market efficiency, including mismatches between who
pays the cost of an option and who gains the benefit, lack of
information about the impact of individual decisions, and consumer
desire for rapid payback (typically 2 to 3 years) when incremental up-
front investment is required.
U.S. potential for greenhouse gas emissions reductions through
energy efficiency and clean energy
Commercial Buildings
HVAC Equipment
Efficiency
Offshore
Wind
Natural
Gas and
Petroleum
Systems
Onshore Management
Wind
Low
Penetration
Residential
Buildings \Commercial
NewShell Buildings
Improvements New Shell
REDUCTION POTENTIAL IN
MMTCE PER YEAR
Energy Efficiency
Clean Energy/Other
L'aM"g Commercial Buildings
Fluorescent Lighting
1
For more information, see Intergovernmental Panel on Climate Change (IPCCI, 2007.
• For more information, see McKinsey & Company, 2007.
ENERGY STAR® and Other Climate Protection Partnerships 2007 Annual Report
-------
Clean EnergyEnvironment
STATE PARTNERSHIP
Clean EnergyEnvlronment
MUNICIPAL NETWORK
National
Action
Plan for
Energy
Efficiency
energy (see Figure 7). These partnerships are spurring
resource growth by promoting greater purchase of
electricity derived from renewable sources and greater
investment in environmentally friendly combined heat and
power. EPA has partnered with hundreds of organizations
through these two programs to provide technical
assistance, minimize transaction costs, and promote
technologies that significantly reduce greenhouse gas
emissions from energy generation.
State and Local Energy Policy Evolution
Significant
informational and
institutional barriers
can prevent state
and local entities
from implementing
policies and making
investments that spur
development in
energy efficiency and clean energy. 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
(Action Plan) along with 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.
Non-C02 Greenhouse Gas Emissions
Reductions
A number of greenhouse gases can trap more heat in the
earth's atmosphere, on a per molecule basis, than carbon
dioxide (C02). 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 in a cost-
effective manner and use it or sell it as a clean energy
source.
• Many of the fluorinated gases (F-gases)—including
hydrofluorocarbons (MFCs), perfluorocarbons (PFCs),
and sulfur hexafluoride (SF6)—are extremely powerful
and persistent greenhouse gases. To avoid significant
accumulation of these gases in the atmosphere, EPA is
collaborating with the aluminum, magnesium, and
semiconductor industries; the HCFC-22 industries; the
electric utilities; and those companies engaged in the
mobile air-conditioning industry.
Sft Emission Reduction
Partnership forthe Magnesium Indusftv
*'
"%
IMM MKIAl. I'AKTNr.KSHII'
The 2007 Annual Report
This annual report for 2007 provides detailed information
on EPA's efforts within each of the five strategies
mentioned above. The individual program sections that
follow this introduction include an overview and
accomplishments, environmental and economic benefits
achieved in 2007, goals for the future, and summaries of
the major tools and resources offered by the program.
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 (these methods are
reviewed in the final section of the report, page 56). 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
-------
INTRODUCTION
TABLE 4. Market barriers addressed by EPA's Climate Partnership Programs
AUDIENCE
OR TARGET
MARKET
CLIMATE PROTECTION PARTNERSHIP PROGRAM
MARKET BARRIERS
ADDRESSED
T3
CD
03
CJ
EC
CO
>-
CD
cc
o
c
01
I—
CD
» -I I5
5 U 03
-a o < ,*"
as Q- — '
•£ 68 g o g
E a £ = "
O 03 CD J2 t
CJ I Z Q- LLJ
w
ca
S
«
>.
o
03 03 " t 03 £ —
•S c E J5 c E jo
3 LU C n_ LLJ C B-
.E _ o f- o o
i_ c c Q) c i_ .i±
O CO -^ +J CD -r C
= J2 c *2 — c =
LL. U LLJ CO CJ LLJ ^
Energy
Consumers
Lack of information about energy efficiency
and renewable energy options
Competing claims in the marketplace
Lack of objective measurement tools
High transaction costs
Lack of reliable technical assistance
Split incentives
Perceptions of organizational risks
Lack of objective basis for recognition of
environmental stewardship
Utilities
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
Industries with
Byproduct GHG
Emissions*
Lack of reliable technical assistance
Lack of objective basis for recognition of
environmental stewardship
State and
Local Policy
and
Decisionmakers
Lack of information about
clean energy policies
Lack of reliable technical assistance
Lack of objective basis for recognition of
environmental stewardship
"Includes utilities
FIGURE 6. U.S. C02 emissions by sector and
non-C02 gases by percent of total GHGs
FIGURE 7. U.S. electricity generation by fuel type
Methane
Emissions
8.4%
Agriculture
1.6%
Commercial
14.5%
Other non-CCh Gases
7.4%
^"^ \ Industry
Residential! 24 8%
166%
I Other Gases
Other Renewables
2.4%
Petroleum
1.6%
Hydroelectric
Conventional
7.0%
' Includes wind, photovoltaic
energy, solar thermal,
geothermal, landfill gas,
agricultural byproducts, wood,
and other renewable sources.
Natural Gas
20.0%
Other
0.7%
Source; EPA 2007
Source: EIA 2007
ENERGY STAR® and Other Climate Protection Partnerships 2007 Annual Report
11
-------
CLIMATE LEADERS
CLIMATE*
EPA launched the Climate
Leaders program in 2002 to
U.S. Environmental Protection Agency 3SSiSt 163 dinQ COmpanieS
across the country in developing comprehensive climate
change strategies. Marking its fifth anniversary in
February 2007, Climate Leaders achieved a number of
significant milestones through the end of the year (see
Tables).
The number of Climate Leaders partners continued to
grow in 2007. They represent a broad range of industry
sectors, including cement, forest products, Pharmaceuticals,
utilities, information technology, and retail (see Figure 8).
Partners operate in all 50 states and provide nearly
7 million jobs worldwide. When joining the Climate
Leaders partnership, companies make a commitment to
reduce their impact on the global environment by
completing a corporate-wide inventory of their
greenhouse gas emissions based on a quality
management system, setting aggressive reduction goals,
and annually reporting their progress to EPA.
EPA provides valuable guidance and recognition to
partner companies as they develop and work toward their
emissions reduction goals. Using EPA's wide range of
tools, expertise, and resources, partners can make informed
decisions about cost-effective strategies, investments,
and projects in the areas of energy efficiency, clean
energy, and non-carbon dioxide (C02) emissions
reductions. EPA continuously tracks partner progress
through a variety of means and ensures the credibility of
reported data by performing detailed reviews and making
site visits.
Achievements in 2007
• The number of Climate Leaders partners grew to
155, an increase of nearly 50 percent in just one year,
with the addition of 50 new corporate partners. These
companies represent more than 8 percent of total
U.S. greenhouse gas (GHG) emissions.
• Seven additional partners successfully acheived their
initial Climate Leaders GHG reduction goals: Advanced
Micro Devices, Caterpillar, Hasbro, Pfizer, Roche Group
U.S. Affiliates, Sun Microsystems, and Xerox
Corporation (see Table 6). Of the 15 companies that have
met their initial goals in the program, 12 have committed
to a second round of reduction goals.
• The total number of partners that have announced
corporate GHG goals through 2007 grew to 80;
22 partners announced goals in 2007 alone. More than
half of the companies in the partnership have publicly
announced GHG goals.
• EPA estimates that GHG reductions by the Climate
Leaders partners will prevent 13 million metric tons of
carbon equivalent (MMTCE) per year relative to
business-as-usual scenarios. These reductions are
equivalent to eliminating the annual GHG emissions
from more than 8 million vehicles.
• EPA has received initial GHG inventories from 111 partners.
This is a necessary step for all partners before establishing
an emissions reduction goal. EPA technical experts
performed 81 site visits to review partner GHG inventories
and Inventory Management Plans and to recommend
improvements.
• EPA road-tested draft offsets protocols, released
guidance on setting carbon neutral goals and using
offsets toward meeting reduction goals, and published a
peer-reviewed paper on negotiating aggressive goals to
provide rigorous, yet flexible, accounting principles for
companies to manage their GHG emissions. These tools
join the suite of existing Climate Leaders resources for
companies to manage and reduce their GHG emissions
(see Table 7).
• EPA recognized those partners that have set emissions
reduction goals in a public service announcement (PSA)
and supplements that ran in nine publications with a
combined circulation of more than 10 million.
What to Expect in 2008 and Beyond
EPA will continue to recruit new, diverse partners to be
part of the Climate Leaders program, as well as support
existing partners that are working toward achieving
their GHG reduction goals. In 2008, EPA expects to
welcome an additional 35 partners into the Climate
Leaders program and anticipates 25 current partners will
announce new corporate GHG reduction goals. In addition,
the Climate Leaders program will release a guide for small
businesses to reduce their carbon footprint. EPA will
continue to incorporate the tenets of Climate Leaders
program protocols and lessons from partner reporting
experiences into the development of future climate policy.
12
-------
CLIMATE LEADERS
TABLE 5. Climate Leaders key program indicators for 2004 - 2007 (cumulative)
CLIMATE LEADERS INDICATOR
Partners
Initial Inventories Submitted
Site Visits
Goals Announced
Goals Achieved
2004
64
45
9
25
0
2005
78
60
30
38
5
2006
107
75
42
59
8
2007
155
111
81
80
15
FIGURE 8. The 155 Climate Leaders
by sector
Healthcare
9
Utilities
10
Financial
14
Information
Services
23
Materials
Manufacturing
28
Industrial
Manufacturing
27
TABLE 6. Seven Climate Leaders achieve their climate protection
goals in 2007
PARTNER
Advanced Micro Devices Inc.
Caterpillar, Inc.
Hasbro, Inc.
Pfizer Inc.
Roche Group U.S. Affiliates
Sun Microsystems, Inc.
Xerox Corporation
GOAL ACHIEVED
AMD achieved its initial goal by reducing global
GHG emissions by 53% per manufacturing index
from 2002 to 2006.
Caterpillar achieved its initial goal by reducing
global GHG emissions by 28% per dollar revenue
from 2002 to 2006.
Hasbro achieved its initial goal by reducing total
U.S. GHG emissions by 43% from 2000 to 2007.
Pfizer achieved its initial goal by reducing global
GHG emissions by 43% per million dollars of revenue
from 2000 to 2007.
Roche achieved its initial goal by reducing total
U.S. GHG emissions by 11% from 2001 to 2006.
Sun achieved its initial goal by reducing total
U.S. GHG emissions by 23% from 2002 to 2007.
Xerox achieved its initial goal by reducing total global
GHG emissions by 18% from 2002 to 2006.
TABLE 7. Key resources of the Climate Leaders Program
RESOURCES FOR CALCULATING GREENHOUSE GAS
(GHG) EMISSIONS
RESOURCES FOR CALCULATING GREENHOUSE GAS (GHG)
REDUCTIONS FROM OFFSET INVESTMENTS AND
RENEWABLE ENERGY PURCHASES
• Design Principles: overall guidance on developing a
corporate-wide GHG inventory
• Cross-Sector Guidance Documents
• Stationary Combustion
• Electricity and Steam
• Mobile Combustion Sources
• Refrigeration and Air Conditioning (use)
• Sector-Specific Guidance Documents
• Municipal Solid Waste Landfilling
• Refrigeration and Air Conditioning (manufacturing)
• Iron and Steel Production
• Aluminum Production
• Cement Production
• Pulp and Paper Production
• Offset Project Methodologies
• Commercial Boiler
• Industrial Boiler
• Landfill Methane
• Manure Management: Anaerobic Digester
• Reforestation/Afforestation
• Transit Bus Efficiency
• Green Power Purchases
ENERGY STAR® and Other Climate Protection Partnerships 2007 Annual Report
13
-------
ENERGY STAR OVERVIEW
ENERGYSTAR
Climate change has emerged as
one of the world's most significant
environmental challenges, and
energy efficiency offers one of the
lowest cost options for reducing
the greenhouse gas emissions that
contribute to climate change—all
while saving money and growing the economy. Since its
inception in 1992, the ENERGY STAR program has worked
to dismantle identifiable and pervasive market barriers
stifling the adoption of cost-effective, energy-efficient
technologies and practices in the residential, commercial,
and industrial sectors. And since 1996, the U.S. Department
of Energy (DOE) has joined with EPA and assumed specific
ENERGY STAR program responsibilities.
The number of products, practices, and policies that EPA
offers through ENERGY STAR grows every year, allowing
an ever-increasing number of American organizations and
consumers to save money on their energy bills while
protecting the environment. Nevertheless, numerous
opportunities still exist for cost-effective energy efficiency
investments. 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 plays a vital role as a credible,
objective source of information for Americans wanting to
make well-informed decisions to improve the energy
efficiency of their homes and businesses. By clearly
identifying the financially attractive options that save
energy, the ENERGY STAR program has helped millions of
consumers and thousands of businesses and organizations
save money and protect the environment—and the
program is poised to continue to do so well into the future.
Achievements in 2007
The broad achievements across the ENERGY STAR
program include the following:
• Americans saved about $16 billion on their utility bills
across the residential, commercial, and industrial
sectors (see Table 1, p. 3), largely by avoiding the need
for more than 180 billion kilowatt-hours (kWh) of
electricity or almost 5 percent of the total 2007 U.S.
electricity demand. This included 38 gigawatts (GW) of
peak power, or the equivalent of the generation capacity
of almost 65 new power plants.
• Americans also avoided more than 40 million metric tons
of greenhouse gas emissions (see Table 8), equivalent to
the greenhouse gas emissions from 27 million vehicles.
• Facilitating the purchase of energy-efficient products
and improving the level of energy efficiency in new home
construction and existing home renovations accounted
for about 40 percent of the program benefits achieved,
while promoting improved energy management
strategies for organizations in the commercial and
industrial sectors accounted for the remaining 60 percent.
• U.S. consumers purchased about 500 million
ENERGY STAR qualified products in 2007, and about
12 percent of all new homes built in 2007 earned
the ENERGY STAR.5
• Nationwide awareness of ENERGY STAR continued to
grow, and it is now recognized by more than 70 percent
of the American public.
• EPA completed an assessment of the ENERGY STAR
brand, working with a leading brand strategy and
management company. The assessment found the
ENERGY STAR brand to be strong and provided
recommendations for protecting the integrity of the
brand in the coming years (see Figure 9).6
14
5 Single-family site-built new homes
" For more information, see Interbrand, 2007.
-------
ENERGY STAR OVERVIEW
TABLE 8. ENERGY STAR program achievements exceed goals in 2007
Energy Saved
(Billion kWh)
Goal Achieved
All Qualified Products1 87.8
Commercial Buildinq Improvements 78.3
New Homes — 1.7
Industrial Improvements4 14.1
PROGRAM TOTAL for ENERGY STAR 150 181.85
Emissions Avoided
(MMTCE)
Goal Achieved
16.5 17.6
12.5 18.0
0.8 0.5
3.9 6.3
33.7 42.4
Energy Saved Emissions Avoided
(Billion kWh) (MMTCE)
Goal Goal
— 18.5
— 13.5
1.0
4.2
165 37.2
ACHIEVEMENTS BY PRODUCT TYPE
Energy Saved 2007
(Billion kWh)
Consumer Electronics 14.7
Residential Appliances7 1.
0
Residential Office Equipment 8.5
Lighting 7.
1
Heating and Cooling 7.2
Commercial Appliances 1.
4
Office Equipment 39.5
Commercial Liqhtinq 1.
4
Other 7.0
Commercial Products 49.3
Emissions Avoided 2007
(MMTCE)
2.8
0.2
1.6
1.3
2.4
0.3
7.5
0.3
1.2
12 3
Results for qualified products from Sanchez et si, 2008. Results from building improvements based on methodology presented in Horowitz, 2008. Results for qualified homes from CPPD,
2008. Electricity results from industrial improvements based on methodology presented in Horowitz, 2007. The kWh savings imply peak demand savings of more than 35gigawatts (GW),
based on conservation load factors developed by LBNL (Koomey et al., 1990). 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.
—.• Not applicable
FIGURE 9. Keeping ENERGY STAR strong for the future
ng a Powerfu
inducing Brand:
~ie Past, Present, and Future
the ENERGY STAR Brand
In 2007, an international brand consulting firm, Interbrand, released a report on the
ENERGY STAR brand, which focused on:
* The art and science of branding.
• The core principles of the ENERGY STAR brand.
• The evolution of the ENERGY STAR brand.
* Future opportunities and challenges for the brand.
* Ways to ensure future success of the brand.
According to this report, "ENERGY STAR has grown into a well-recognized consumer brand, the
result of well-crafted strategies, market-defined insights, and a perseverance to always improve on the
past." In addition, the report noted that, "...EPA has put the brand management tools and standards
in place to manage the brand for continued success."
The report is available at www.energystar.gov/publications.
ENERGY STAR® and Other Climate Protection Partnerships 2007 Annual Report
15
-------
EPA now engages more than 12,000 businesses and
organizations across the country to spur the adoption of
energy-efficient products, practices, homes, buildings,
and services that lower energy bills and benefit the
environment. These partners include:
• About 2,000 manufacturers using the ENERGY STAR to
distinguish the energy efficiency of over 40,000 individual
product models across more than 50 product categories.
These products can save consumers up to 30 percent in
total savings on their household energy bills (see Table 9).
• More than 1,000 retail partners bringing ENERGY STAR
qualified products and educational information to their
customers.
• More than 5,000 builder partners constructing new
homes that qualify for the ENERGY STAR in every state
and the District of Columbia.
• About 3,000 private businesses and public sector
organizations investing in energy efficiency and
reducing energy use in their buildings and facilities.
• More than 40 states, 550 utilities, and many other
energy efficiency program sponsors leveraging
ENERGY STAR to improve the efficiency of commercial
buildings, industrial facilities, 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.
EPA and DOE recognized the outstanding commitments
of 74 partners at the 2007 Partner of the Year Awards
(see Figure 10).
TABLE 9. Average energy savings of 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
25%
30%
90%
60%
60%
55%
Digital-to-analog converter (DTA) 50%
External power adapters
Battery charging systems
35%
35%
HVAC
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 AVERAGE ENERGY SAVINGS**
PRODUCT CATEGORY ABOVE STANDARD PRODUCT
Lighting
Compact fluorescent light bulbs (CFLs)*
Decorative light strings
Residential light fixtures
75%
70%
75%
Residential Appliances
Room air conditioners*
Dehumidifiers
Room air cleaners
Exhaust fans
Ceiling fans
Dishwashers*
Refrigerators*
Clothes washers*
10%
15%
45%
70%
45%
20%
15%
30%
Commercial Appliances
Water coolers
45%
Commercial solid door refrigerators and freezers 35%
Commercial hotfood holding cabinets
Commercial fryers
Commercial steamers
Vending machines
60%
15%
55%
40%
Home Envelope
Insulation/Sealing
Roof
Windows, doors, & skylights*
N/A
N/A
N/A
* DOE managed products
** Actual savings will vary by climate region and home characteristics.
16
-------
ENERGY STAR OVERVIEW
FIGURE 10. ENERGY STAR Awards
The success of the ENERGY STAR program depends on the initiative and day-to-day efforts of its thousands of partners. EPA and DOE
recognized 74 of more than 12,000 partners at the annual ENERGY STAR Partner of the Year Awards for their outstanding work in 2007
advancing energy efficiency in the United States. Their accomplishments
SUSTAINED EXCELLENCE
*3M
Olvl
Cf Pa,,! Ml\l
OL. raulf IVIIv
Advantage IQ, Inc.
^nntanp \A/A
OfJUnaltCf Wf-\
Austin Energy
Austin, TX
California Portland Cement
Company
Glendora, CA
CenterPoint Energy
Houston, TX
Food Lion, LLC
Salisbury, NC
Ford Motor Company
Dearborn, Ml
GE Consumer & Industrial
Louisville, KY
Giant Eagle, Inc.
Pittsburgh, PA
Gorell Enterprises, Inc.
Indiana, PA
Marriott International Inc.
Bethesda, MD
Merck & Co., Inc.
Whitehouse Station, NJ
Nevada ENERGY STAR Partners
Las Vegas, NV
New York State Energy Research
and Development Authority
Albany, NY
NewYork-Presbyterian Hospital
New York, NY
Northeast ENERGY STAR
Products Initiative
Lexington, MA
Oncor Electric Delivery
Dallas, TX
OSRAM SYLVAN IA
Danvers, MA
PepsiCo
Purchase, NY
ProVia Door
Sugarcreek, OH
Raytheon Company
Waltham, MA
Sea Gull Lighting Products, LLC
Riverside, NJ
Southern California Edison
Rosemead, CA
Toyota Motor Engineering &
Manufacturing North America,
Inc.
Erlanger, KY
Transwestern
Houston, TX
USAA Real Estate Company
San Antonio, TX
Whirlpool Corporation
Benton Harbor, Ml
Wisconsin Focus on Energy
Madison, Wl
PARTNER OF THE YEAR
A llprn?i n 1 HP
rAMCI LJClll, 1 1 IU.
Irvine, CA
ArcelorMittal USA
Chicago, IL
Arizona Public Service (APS)
Phoenix AZ
Building Owners and Managers
Association (BOMA)
International
Washington, DC
CB Richard Ellis, Inc.
Los Angeles, CA
Colorado Springs Utilities
Colorado Springs, CO
Council Rock School District
Newtown, PA
Energy Inspectors
Las Vegas, NV
Environmental Building Solutions
Matthews, NC
Gresham-Barlow School District
Gresham, OR
ITW Food Equipment Group,
North America
Troy, OH
J. C. Penney Company, Inc.
Piano, TX
are summarized in the report, Profile.
Lithonia Lighting, an Acuity
Brands Company
Conyers, GA
National Grid
Westborough, MA
Pacific Gas and Electric
Company
San Francisco, CA
Pella Corporation
Pella, IA
Providence Health & Services
Seattle, WA
Rocky Mountain Power
Salt Lake City, UT
Seattle Lighting
DestinationLighting.com
Seattle, WA
Simon Property Group
Indianapolis, IN
Southern Energy Management
Raleigh, NC
Southwest Energy
Conservation, LLC
El Paso, TX
The Dow Chemical Company
Midland, Ml
The Joint Management
Committee representing
Massachusetts
New Homes with ENERGY STAR
Massachusetts
TIAA-CREF
New York, NY
TRC Energy Services
Windsor, CT
AWARDS FOR EXCELLENCE
Best Buy Co., Inc.
Richfield, MN
Bosch Home Appliances
Huntington Beach, CA
Canon USA, Inc.
Lake Success, NY
Efficiency Vermont
Burlington, VT
Energy Trust of Oregon, Inc.
Portland, OR
Forest City Stapleton
Denver, CO
in Leadership*
Georgia Power
Atlanta, GA
Haven Properties
Alpharetta, GA
Ideal Homebuilders
Lexington, KY
Ivey Residential
Evans, GA
Long Island Power Authority
Uniondale, NY
Lowe's Companies, Inc.
Mooresville, NC
Nashville Area Habitat for
Humanity
Nashville, TN
Nationwide Marketing Group
Winston-Salem, NC
Nevada Power & Sierra Pacific
Power ENERGY STAR Lighting
and Appliance Program
Reno, NV
NJBPU, New Jersey's Clean
Energy Program
Newark, NJ
Pacific Gas and Electric
Company
San Francisco, CA
The Home Depot
Atlanta, GA
Utah Division of Housing and
Community Development
Salt Lake City, UT
Virgin Islands Water and Power
Authority
St. Thomas, U.S. Virgin Islands
Winton/Flair Custom Homes
El Paso, TX
SPECIAL RECOGNITION
3M's Optical Systems Division
St. Paul, MN
Lennar Homes — Bay Area,
California
San Ramon, CA
Menards
Eau Claire, Wl
* For more information, see www.energystar.gov/ia/partners/pt_awards/2008_profiles_in_leadership.pdf
ENERGY STAR® and Other Climate Protection Partnerships 2007 Annual Report
17
-------
ENERGY STAR IN THE RESIDENTIAL SECTOR
High utility bills and growing interest in green products
and practices are leading an ever-increasing number of
Americans to use ENERGY STAR as a trusted guide for
improving the efficiency of their homes, saving money,
and preventing greenhouse gas emissions. By using
the ENERGY STAR qualified products and practices
recommended by EPA, households can reduce their
energy use up to 30 percent and save $600 a year on
their utility bills—all while enjoying the comfort and
performance levels they expect. In 2007, many households
benefitted from:
• Buying products that earned the ENERGY STAR (see
Figure 11).
• Assessing the efficiency of their homes and
undertaking home improvement projects that go
beyond buying efficient products.
• Purchasing new homes that earned the ENERGY STAR.
ENERGY STAR Qualified Products
Activities in 2007 included adding new qualified products,
updating specifications for select products (see Table 10),
continuing national and international government
coordination, and promoting broad outreach efforts that
help consumers find ENERGY STAR qualified products.
Highlights of these activities are described below.
New ENERGY STAR Qualified Products. EPA
added two new product categories to the ENERGY STAR
program. In anticipation of the nationwide changeover to
digital television signals in February 2009, EPA established
a new specification for digital-to-analog converter boxes
(DTAs) that is expected to cut the energy use of these
devices by more than 70 percent, with the potential to
save Americans over $1 billion in energy costs. In
addition, EPA adopted the specification developed for
ENERGY STAR by Natural Resources Canada for
decorative light strings. By using solid state lighting
technology, an ENERGY STAR qualified decorative light
string consumes 70 percent less energy than an
incandescent light string.
Raising the Bar for ENERGY STAR. In 2007, EPA
finalized revisions for an additional two specifications.
One was a groundbreaking revision to the ENERGY STAR
specification for residential light fixtures. For the first time,
consumers will be able to purchase qualified GU-24 based
compact fluorescent light bulbs (CFLs) for use in ENERGY
STAR qualified fixtures.7 The bulbs allow consumers to
change the light output, shape, and color of the bulbs
without rewiring. Most other qualified fixtures use less
flexible, fixed-wattage bulbs.
Awareness of ENERGY STAR Continues to
Grow. The success of the ENERGY STAR program
depends on public awareness of the financial and
environmental benefits of ENERGY STAR qualified
products, homes, and buildings. The 2007 ENERGY STAR
national campaigns and PSAs reached millions of people
through TV, magazine, radio, and other media outlets.
Articles mentioning ENERGY STAR reached over one
billion readers. Public awareness of the ENERGY STAR
label grew to more than 70 percent in 2007—a 20
percentage point increase over the past 5 years (see
Figure 12). Other highlights of the survey findings8 include:
• Public awareness is even greater—80 percent—in
major markets where local utilities and other
organizations use ENERGY STAR as the platform to
promote energy efficiency to their customers.
• More than 35 percent of American households
knowingly purchased an ENERGY STAR qualified
product in 2007.
• More than 70 percent of these households reported
being favorably influenced by the ENERGY STAR label,
up from about 50 percent in 2003.
• More than 80 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.
Further, the ENERGY STAR Web site experienced
significant growth in 2007. Visitor sessions reached
10 million, up from 7 million in 2006.
18
Most qualified fixtures use the GU-24 base, which accepts pin-based CFLs rather than screw-based bulbs.
8 For more information, see U.S. EPA, 2008b.
-------
ENERGY STAR IN THE RESIDENTIAL SECTOR
TABLE 10. ENERGY STAR residential product specifications added, revised, and in progress
Product Category
Year Introduced
and (Year Revised)
Responsible
Agency
Status of Activity
in 2007
NEW SPECIFICATIONS
Digital-to-Analog Converter
Boxes (DTAs)
Decorative Light Strings
2007 REVISIONS COMPLETED
Residential Lighting Fixtures
Roof Products
2007
2007
1997(2001,2002,
2003, 2005)
1999(2001,2003,2007)
EPA
EPA
EPA
EPA
New specification took effect January 31, 2007.
New specification took effect in August 2007.
Revision completed. Revised specification
to take effect August 1,2008.
Revision completed. Revised specification
took effect December 31, 2007.
2007 REVISIONS IN PROGRESS
Computers
External Power Adapters
Furnaces
Imaging Equipment
Monitors/Displays
Programmable Thermostats
Set-Top Boxes
Telephony
Televisions
Ventilation Fans
1992(1995,1999,
2000, 2007)
2005
1995(2006)
2007
1992(1995,1998,
1999,2005,2006)
1995
2001
2002 (2004, 2006)
1998(2002,2004,2005)
2001 (2003)
EPA
EPA
EPA
EPA
EPA
EPA
EPA
EPA
EPA
EPA
Revision initiated in 2007, expected to be complete in 2008.
Revision initiated in 2007, expected to be complete in 2008.
Revision initiated in 2007, expected to be complete in 2008.
Revision initiated in 2007, expected to be complete in 2008.
In progress.
In progress.
Specification suspended in 2005. Revision initiated in 2007,
expected to be complete in 2008.
Revision initiated in 2007, expected to be complete in 2008.
Revision initiated in 2007, expected to be complete in 2008.
In progress.
FIGURE 11. More than 2.5 billion ENERGY STAR qualified
products purchased since 1992
3.0
° 1.0
0.5
2000 2001 2002 2003 2004 2005 2006 2007
• Other Lighting • Home Office Equipment
Appliances Home Electronics • Office Equipment
FIGURE 12. Awareness of ENERGY STAR growing
in the United States
80%.
70%.
60%.
50%.
40%,
30% I
20% I
10% I
ol
PI
n i
i i i
i i i
i • •
i • i
i • •
i i •
2000 2001 2002* 2003* 2004* 2005 2006* 2007*
I Aided Awareness I Unaided Awareness
"Annual result is statistically different from the result of the prior year.
ENERGY STAR® and Other Climate Protection Partnerships 2007 Annual Report
19
-------
ENERGY STAR Change a Light, Change the
World Campaign. The eighth annual ENERGY STAR
Change a Light, Change the World campaign was a major
part of the year's outreach efforts. The first-ever ENERGY
STAR Change a Light bus tour stopped at 16 events in
10 cities across the United States (see Figure 13),
engaged more than 1,100 organizations, and catalyzed over
1.3 million pledges to replace an incandescent light with
an ENERGY STAR qualified CFL
Continuing International Cooperation. In 2007,
EPA signed a Memorandum of Understanding (MOU) with
the China Standard Certification Center (CSC) to explore
harmonization of ENERGY STAR and the Chinese labeling
programs. In addition, EPA continued its collaboration
with the European Union in revising specifications for
ENERGY STAR qualified office equipment and its work as
co-chair of the Asia-Pacific Partnership's Buildings and
Appliances Task Force.
Home Improvement through ENERGY STAR
In addition to purchasing ENERGY STAR qualified products,
homeowners can take a number of steps to reduce the
overall energy consumption of their homes, raise the value
of their homes, and improve their comfort, safety, and
health. These steps range from using the online ENERGY
STAR Home Advisor to identify recommended improvements
to having a whole-house energy assessment and retrofit
performed by a trained, qualified technician. EPA's home
improvement programs offer consumers tools, resources,
and information to help guide them through the various
stages of home improvement. Highlights of 2007 follow.
Home Performance with ENERGY STAR. Home
Performance with ENERGY STAR is an effort supported by
EPA and DOE to promote whole-house, energy efficiency
retrofits through a qualified contractor network that is
backed by a quality assurance program. EPA estimates
that a typical home can save, on average, more than
20 percent of its total energy use and between $400 and
$500 a year if the recommended improvements are made.
Regional sponsors implement Home Performance with
ENERGY STAR by recruiting and training contractors,
marketing contractor services, and overseeing the quality
of their work. In 2007:
• More than 11,000 Home Performance with ENERGY
STAR retrofits were reported by program sponsors,
bringing the total number of homes improved under
this program to over 38,000 retrofits.
• Seven new program sponsors brought the total number of
regional and local sponsors to more than 20 (see
Figure 14).9
• EPA, in conjunction with DOE and the U.S. Department
of Housing and Urban Development (HUD), concluded a
3-year grant with the Building Performance Institute
(BPI) to develop a home performance contractor
infrastructure. BPI reported more than 1,500 certified
technicians in 34 states and 300 accredited contractors
in 9 states by the end of 2007.
• EPA recognized six partners in 2007—Austin Energy,
Efficiency Vermont, the New Jersey Board of Public
Utilities, 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.
The Home Energy Advisor. EPA released the
Home Energy Advisor, an interactive Web-based tool
that offers homeowners recommendations on how to
improve the efficiency of their homes. The tool complements
the Home Energy Yardstick, which gives homeowners a
ranking, on a scale from 1 to 10, of the efficiency of their
home. In 2007, more than 95,000 homeowners benchmarked
their homes with the Yardstick, and 23,000 identified
specific recommendations using the Home Energy Advisor.
Seal and Insulate with ENERGY STAR. Air
sealing and insulation are among the easiest, cost-
effective ways to reduce energy bills and increase home
comfort. In 2007, EPA developed new retail-oriented
materials and helped retail partners promote this
information. In addition, homeowners downloaded more
than 80,000 copies of EPA's Do-lt-Yourself Guide to
Sealing and Insulation.
Proper HVAC Installation. Installing and maintaining
an appropriately sized heating, ventilation, and air
conditioning (HVAC) system can offer homeowners significant
energy savings. EPA estimates that the improper sizing
and installation of an HVAC system can reduce system
performance by as much as 30 percent, and that more
than half of all systems nationwide are installed incorrectly.
In 2007, EPA launched an HVAC Quality Installation (Ql)
program in collaboration with two utilities, Oncor and
Southern California Edison, setting the stage for a national
program rollout in 2008. The HVAC Ql program provides
an industry-accepted set of installation guidelines to
ensure that the system performs at its rated capacity.
20
New program sponsors in 2007 for Home Performance with ENERGY STAR include: City of Anaheim, CA, First Energy, Foundation for Senior Living,
Gainesville Regional Utility, Maryland Energy Administration, Missouri Department of Natural Resources, and Southern California Edison.
-------
ENERGY STAR IN THE RESIDENTIAL SECTOR
FIGURE 13. National bus tour helps ENERGY STAR campaign reach millions
_ » . •«• * ffli "go"%^
• Ties Moinas OCT. 12-13 • T
OCT. ID ^Indianapolis
NewYo
OCT. 23
Atlanta
OCT. 15
On Wednesday, October 3, 2007—
ENERGY STAR Change a Light Day—EPA
kicked off the first-ever ENERGY STAR
Change a Light bus tour. As the newest
strategy in EPA's highly successful ENERGY
STAR Change a Light, Change the World
campaign, the bus completed a 20-day
national tour, stopping at 16 events in 10
cities on its way from Anaheim, CA, to
Boston, MA. Sponsored and hosted by
ENERGY STAR partners, the bus made its
way east showing Americans how just one
small action—changing an incandescent
bulb to a CFL—taken by many individuals
can collectively make a tremendous
contribution to addressing the problem of
global climate change.
The bus tour received extensive media coverage in the 10 markets visited. Highlights included television segments on NBC's Today Show and
Los Angeles' highly-rated news KABC, a live interview segment on Good Day Colorado! (KDVR), and a spotlight of the bus tour and Durham
Middle Schools as part of the Atlanta, GA, tour stop on WSB-TV. In addition to broadcast coverage, the bus tour was featured in photo spreads
in The Boston Globe and Boston Herald and in articles in online media outlets Reuters and CNNMoney.com. All told, local, regional, and national
coverage of the tour and campaign resulted in more than 27 million media impressions during the fall of 2007, as well as more than
85 million online impressions during the same time.
STAR"
FIGURE 14. Home Performance with ENERGY STAR spreads across the country
I States with Home Performance
with ENERGY STAR Programs
Metro Areas with Home Performance
with ENERGY STAR Programs
ENERGY STAR® and Other Climate Protection Partnerships 2007 Annual Report
21
-------
ENERGY STAR Qualified New Homes
ENERGY STAR qualified homes held steady at about 12
percent of the housing market nationwide even though
the number of qualified homes totaled more than 120,000
as the new construction market retracted during 2007.
ENERGY STAR remains a dominant presence in more than
50 markets where the penetration of qualified homes
equals or exceeds 20 percent of the housing stock (see
Figure 15). To date, the number of ENERGY STAR qualified
homes constructed totals almost 840,000, providing
homeowners savings of more than $200 million annually
(see Figure 16). EPA's 2007 efforts included:
New Homes Outreach Partnership. EPA worked
with 28 local markets in 17 states to mount long-running
consumer campaigns for ENERGY STAR qualified new
homes. This partnership leveraged federal efforts with
local private-sector funds to increase the promotion of
ENERGY STAR qualified homes during the peak buying
seasons for new homes.
Affordable Housing. More than 7,700 ENERGY STAR
qualified homes were built using public funding in FY 2007,
guaranteeing that the families most in need will save
money on their utility bills. EPA worked with 21 state
housing finance agencies (HFAs) to promote ENERGY
STAR qualified products and homes in their funding
criteria for housing projects. More that 30 HFAs now give
preference to projects that include ENERGY STAR
products and construction guidelines, while four states—
New Jersey, Nevada, Utah, and Washington—now
require all new homes funded with housing tax credits to
be ENERGY STAR qualified.
Marketing Tools That Work. EPA updated its
marketing kit for home builders so they have the means to
develop customized ads, brochures, and signage. Through
this Web-based toolkit, each builder can incorporate its
own brand message within the ENERGY STAR marketing
template.
Green Homes. EPA continued to work with green building
programs across the country to promote ENERGY STAR as
the first step to a green home. Leadership in Energy and
Environmental Design® (LEED) requires, at a minimum, that
a LEED Home be built to the ENERGY STAR specification.
Through the Office of Radiation and Indoor Air, EPA also
refined its indoor air quality program, coupling indoor air
specifications with ENERGY STAR Homes to provide a
significant step toward green construction.
Exploring Energy Efficiency in Multi-Family
High Rises. In 2007, the State of New York, through
NYSERDA, and the Energy Trust of Oregon kicked off their
ENERGY STAR Multi-Family High Rise Programs, labeling
several buildings whose energy efficiency is at least
20 percent better than those built to the commercial building
code. These projects will help develop a national ENERGY
STAR effort to label efficient multi-family high rise buildings.
What to Expect in 2008 and Beyond
• EPA will finalize specification revisions for a variety of
home electronics (TVs, set-top boxes, and external
power adapters), office equipment (imaging equipment
and computers), and furnaces. In addition, EPA will
initiate a new specification for game consoles and
start specification revisions for audio equipment and
DVD players. EPA will continue to expand the ENERGY
STAR label to new product categories when the core
program principles can be met and will revise the
requirements for product categories already in the
program as conditions warrant.
• EPA will continue to work with its vast partnership
network to help consumers and businesses of all sizes
choose ENERGY STAR qualified products—particularly
lighting products, small household appliances,
commercial food service equipment, 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 projects more than 50,000 homes will be improved
through Home Performance with ENERGY STAR by the
end of 2008. Five new sponsors are expected to join in
2008.
• EPA will launch the ENERGY STAR HVAC Ql program
in 2008 in Texas and focus on recruitment in 2008 to
broaden the adoption of this program.
• EPA will continue to promote ENERGY STAR qualified
new homes to meet the builders' need to differentiate
themselves in the tight housing market and the
growing consumer demand for energy-efficient and
green homes. EPA will also explore the next generation
of ENERGY STAR specifications for new homes through
vehicles such as EPA's new Climate Choice program
(see page 34).
• EPA will continue to develop the ENERGY STAR Multi-
Family High Rise Program for new construction and
intends to expand the pilot to New Jersey, Colorado,
and Nevada in 2008.
22
-------
ENERGY STAR IN THE RESIDENTIAL SECTOR
FIGURE 15. ENERGY STAR qualified new homes gaining market share
Increasing Percentage of
Single Family Home Starts
<3% 3-11% 12-20% >20%
FIGURE 16.840,000 homes nationwide bear the ENERGY STAR
900,000
800,000
700,000
600,000
500,000
400,000
300,000
.2
i 200,000
o
I 100,000
1 o
GO
Z
I I I I
2000 2001 2002 2003 2004 2005 2006 2007*
• CUMULATIVE HOMES BUILT ANNUAL HOMES BUILT
"Reflects transition to more stringent specification and slow down in U.S. housing starts.
ENERGY STAR qualified new 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
ENERGY STAR® and Other Climate Protection Partnerships 2007 Annual Report
23
-------
ENERGY STAR IN THE COMMERCIAL SECTOR
Commercial businesses and organizations are
increasingly turning to ENERGY STAR to learn how to
improve the energy efficiency of their buildings and
facilities and prevent greenhouse gas emissions.
Commercial buildings alone represent 14.5 percent of U.S.
(C02) emissions and account for more than $100 billion in
energy costs.10 Through ENERGY STAR, EPA promotes
corporate energy management approaches by offering
guidance, tools, and other resources to help businesses
and organizations reduce their energy use.
Working closely with leading businesses, trade
associations, and local governments to bring energy
and climate change solutions to their constituents,
EPA leveraged ENERGY STAR to deliver unprecedented
progress in the commercial marketplace in 2007. These
efforts resulted in exponential growth in the number of
buildings rated for their energy use, in buildings that
earned the ENERGY STAR for superior energy
performance (see Figure 17), and in the use of other
ENERGY STAR tools and resources.
Achievements in 2007
Growing Partnership. Partnering with ENERGY STAR
continued to be an important first step for many
businesses and organizations working to improve
efficiency and lower energy costs. For example:
• More than 1,800 commercial, public, and industrial
organizations have joined EPA's ENERGY STAR
program and committed to continuous improvement
and superior energy management in their buildings.
These ENERGY STAR partners own or operate more
than 11.5 billion square feet of building space across
the country, approximately 15 percent of the
commercial building market.
• Close to 20 utilities or other energy efficiency program
sponsors (EEPS) joined ENERGY STAR in 2007, bringing
the total to more than 90. These EEPS, along with the
more than 1,300 Service and Product Providers, offer
their clients and customers valuable energy efficiency
services that incorporate ENERGY STAR tools and
resources.
• Nearly 1,500 new participants joined either the
ENERGY STAR Congregations or Small Business
Networks, bringing the total to more than 3,000
members in both networks.
Spurring Building Owners Toward Superior
Energy Performance. In 2007, EPA extended the
reach of the ENERGY STAR Challenge, which calls on all
U.S. businesses and institutions to reduce energy use
by 10 percent or more. By year end, nearly 800 organizations
and individuals had joined the Challenge (see Figure 18).
Leading associations such as the U.S. Conference of
Mayors (USCM) and the Building Owners and Managers
Association (BOMA) International are reaching out to their
members nationwide and motivating them to work toward
achieving superior energy performance in their facilities.
Below are highlights from 2007:
• The U.S. Conference of Mayors passed a resolution
endorsing the ENERGY STAR Challenge as the key
strategy in meeting its goals for the Conference's
Climate Protection Agreement. The National
Association of Counties (NACo) and Public Technology
Institute (PTI) also actively promoted the Challenge.
Their efforts contributed to more than 150 local
governments joining the Challenge in 2007.
• BOMA launched its 7-Point Challenge to achieve a
30-percent improvement in members' building
portfolios and chose ENERGY STAR as the mechanism
to track and verify improvement. About 25 organizations
and more than 35 local BOMA chapters responded.
• More than half of the states and the District of Columbia
have taken the ENERGY STAR Challenge and lead the way
in rating the most floor space in the country—making up
nine of the top 10 states in cumulative rated floor space
through 2007.
• States also enacted legislation to set energy use
reduction goals and require the use of EPA's tools.
For example, California passed legislation requiring
disclosure of the EPA energy performance rating
starting in 2010 and utility data transfer to Portfolio
Manager. Ohio approved the adoption of Portfolio
Manager to fulfill benchmarking mandates, and
Minnesota enacted legislation setting goals for achieving
ENERGY STAR qualified buildings in the state.
24
'" For more information, see Energy Information Administration (EIA), 2006.
-------
ENERGY STAR IN THE COMMERCIAL SECTOR
FIGURE 17. More than 4,000 buildings have earned the ENERGY STAR
VERMONT MAINE
NEW HAMPSHIRE
MASSACHUSETTS
HODE ISLAND
NECTICUT
Increasing Number of Qualified Buildings
<21 Buildings 21-50 Buildings 51-100 Buildings >100 Buildings
FIGURE 18. ENERGY STAR Challenge participants
Businesses and
Organizations 4031
Businesses and Organizations
Local Government 159
Associations 36
Real Estate 36
State Government 32
K-12 Education 27
Industrial 21
Services 21
Other ....18
Hospitality & Entertainment 10
Retail 10
Healthcare 9
Higher Education 8
Non-Profit 8
Federal Government 6
Bank/Financial 2
ENERGY STAR® and Other Climate Protection Partnerships 2007 Annual Report
25
-------
Honoring Excellence in Leadership. EPA
recognized the outstanding accomplishments of
commercial sector businesses and organizations for
instituting superior energy management across their
portfolio of buildings in two main ways:
• EPA honored 24 organizations for Sustained Excellence
or as an ENERGY STAR Partner of the Year for Energy
Management, Service and Product Provider, or Energy
Efficient Program Delivery.
• EPA recognized more than 50 partners as ENERGY STAR
Leaders for meeting important energy-saving milestones
across their entire building portfolio.
Making Performance Rating the First Step to
Improvement. Benchmarking energy use is critical to
identifying energy efficiency opportunities. Hundreds of
businesses and organizations are taking the important
step of using EPA's energy performance rating system to
asses the energy use of their buildings. Since 1999, EPA's
online tool, Portfolio Manager, has enabled building
owners and managers to rate their individual commercial
buildings on a scale of 1 to 100 against similar buildings
nationwide, track energy performance over time, and target
investments in energy efficiency (see Figure 21). In 2007:
• EPA's energy performance rating system experienced
exponential growth and was expanded to include retail
stores. Over 62,000 buildings have been rated—more
than double the number since the end of 2006. These
buildings represent more than 7.5 billion square feet,
which is an increase of more than 50 percent from
the previous year (see Figure 19). They include
55% of hospital space (acute care), more than
50% of supermarket space, 30% of office building
space, nearly 25% of school space, and nearly 25% of
hotel space across the country.11
• Rating of retail space—first made available in 2007—
accounted for more than 40 percent of the new activity
with over 14,000 stores rated, representing more than
1 million square feet (see Figure 20).
• For the first time, water utilities were able to track energy
use and associated carbon emissions, set targets for
investment priorities, and verify efficiency improvements
using Portfolio Manager. In addition, building owners
tracked water usage alongside their energy use. Partners
had entered data for more than 10,000 water meters in
Portfolio Manager by the end of 2007.
• A key program focus in 2007 was to help automate the
transfer of energy data directly into Portfolio Manager,
eliminating the need for manual entry. Automated
Benchmarking Services (ABS), which facilitates building
benchmarking across a portfolio of buildings through
third-party servers, grew more than 400 percent during
the year and serviced about 30,000 buildings. Service
and Product Providers helped rate over 32,000
buildings—most of them through ABS—and assisted
close to 500 client buildings in achieving at least a
10-point improvement in their energy performance
rating in 2007.
Recognizing More Buildings for Excellence.
More buildings than ever qualified for the ENERGY
STAR in 2007, bringing the total to more than 4,000
buildings, representing over 740 million square feet.
These top performing buildings earned the ENERGY
STAR by achieving a score of 75 or higher on EPA's
energy performance rating system and meeting relevant
requirements for indoor air quality. ENERGY STAR
qualified buildings use nearly 40 percent less energy,
on average, than typical buildings; almost 500 of them
use 50 percent less energy. Their owners save about
$800 million annually on their energy bills compared to
those of typical buildings. In 2007:
• The first retail stores—four JC Penney stores in the
state of Washington—and the first warehouses earned
the ENERGY STAR.
• CoSTAR,the leading information services provider to
U.S. commercial real estate, integrated ENERGY STAR
information into its Web site and building research. As a
result, its online database identifies ENERGY STAR
qualified buildings for users.
Challenging Small Businesses to Save Energy.
The number of small businesses and congregations
partnering with EPA through ENERGY STAR almost
doubled in 2007. By using ENERGY STAR tools, these more
than 3,300 organizations are improving their energy
efficiency, reducing energy costs, and leading their
communities in environmental stewardship. In addition,
several key associations representing small businesses
and faith-based organizations were active participants in
the ENERGY STAR Challenge in 2007. For example:
• The National Automobile Dealers Association (NADA)
outreach resulted in more than 500 auto dealerships
becoming ENERGY STAR Small Business Network
participants. NADA delivered training sessions on
ENERGY STAR tools and resources to more than 300
members during the year.
26
11 Calculated using CBECS 2003, see EIA 2006.
-------
FIGURE 19. Commercial building rating and
labeling activity gains momentum
ENERGY STAR IN THE COMMERCIAL SECTOR
FIGURE 20.10 percent of commercial square footage is rated
I
5 3
t
d
- 2
L
LLJ
CJ
CD
1
OQ 0
Ml
MM
MMI
2001 2002 2003 2004 2005 2006 2007
• RATED AND LABELED • RATED ONLY
3000
2500
2000
Offices K-12 Retail Hospitals Hotels Supermarkets/ Other*
Schools Grocery Stores
'Includes Bank-Financial Institutions, Warehouses, Courthouses, Medical Offices, Residence Halls.
FIGURE 21. Amount of rated floor space by state
Increasing Amount of Floor Space Rated
<25mm sq.ft. 25-75mm sq. ft. 75-150mm sq.ft. >150mmsq.ft
ENERGY STAR® and Other Climate Protection Partnerships 2007 Annual Report
27
-------
28
• The Independent Community Bankers Association
(ICBA) promoted and supported the benchmarking of
some 18,000 buildings belonging to its 5,000 members.
With EPA, ICBA is exploring the design of a "green
loan" program for members' small business customers.
• The National Association of Evangelicals hosted
regional "creation care" conferences in Minnesota
and Florida, bringing together religious leaders to
discuss global warming and ways in which using
technical support from ENERGY STAR could improve
the stewardship of energy and financial resources in
houses of worship.
• EPA honored 14 small businesses and congregations
with the ENERGY STAR Small Business Award for showing
exemplary environmental stewardship.
Adding Efficient Commercial Products. In 2007,
EPA expanded the suite of commercial kitchen products
eligible to earn the ENERGY STAR by finalizing new
specifications for commercial dishwashers and ice
machines (see Table 11). The specifications cover several
types of machines in both categories and require them to
deliver both energy and water efficiency savings. These
products will help improve the energy and greenhouse
gas intensity of food service operations, which consume
roughly 2.5 times more energy per square foot than other
commercial buildings. In addition, EPA completed
revisions to the commercial roofing specification. Given
the successful transformation of markets for traffic lights
and transformers, EPA sunsetted the specifications for
these products.
Looking at the Impact of Climate Change. EPA
added carbon emissions factors to the energy performance
rating system that are consistent with those used by
major greenhouse gas reporting protocols and allow
businesses to compare the C02 emissions of their
buildings to others in the same region and across the
country. These factors help organizations assess and
address the climate change impact of their buildings
according to standardized protocols, prioritize energy
efficiency improvements, and lessen their buildings'
impact on the environment. EPA continues to promote
energy efficiency as the first step to being green by
working with organizations to develop policies that
encourage energy efficiency and reflect the financial
savings buildings offer when well designed.
Designing High Performance New Buildings.
Thirty-five commercial new construction projects
achieved Designed to Earn the ENERGY STAR in 2007.
Kinard Junior High School in Poudre, CO, became the
first building to achieve Designed to Earn the ENERGY
STAR in 2005 that went on to earn the ENERGY STAR
label in 2007 based on demonstrated operating
performance.
What to Expect in 2008 and Beyond
EPA will continue to promote greater energy efficiency
across the commercial sector. Specifically, EPA will:
• Work with leading local government partners to help
them bring ENERGY STAR tools and resources to their
communities through the ENERGY STAR Challenge.
Louisville, KY, will serve as a model in 2008. In addition,
EPA will continue to engage trade associations and
motivated sectors in spreading awareness of ENERGY
STAR to additional commercial market sectors.
• Demonstrate to utilities and other energy efficiency
service providers the value of automatic energy bill
exchange to make it easier and faster for customers to
benchmark and effectively manage their portfolios.
EPA will also expand the use of ENERGY STAR by these
organizations to help them deliver greater savings to
their customers.
• Enhance partner tools by updating the energy
performance rating system for supermarkets,
developing a rating system for the data center industry,
and updating the Automated Benchmarking System to
improve its ability to manage data in bulk.
• Recognize commercial buildings that are top
performers in terms of both energy efficiency and
carbon emissions, relying on the well-established
measurement and verification protocols already in
place in EPA's Portfolio Manager.
• Enhance the measurement and verification capability
of Portfolio Manager and expand it to include carbon
emissions reductions from energy efficiency measures
in commercial buildings. The benchmarking system's
use of real, verifiable energy use data, combined
with user-friendly functionality, will allow building
owners and others to establish a clear record of
carbon reductions.
• Work with Service and Product Providers to increase
the use of ENERGY STAR as part of market
transactions such as performance contracting,
financing, and other mechanisms.
• Complete new specifications for commercial griddles
and data servers (see Figure 22) and complete the
specification revision for commercial solid door freezers.
-------
ENERGY STAR IN THE COMMERCIAL SECTOR
TABLE 11. ENERGY STAR commercial product specifications added, revised, and in progress
PRODUCT CATEGORY YEAR INTRODUCED
AND (YEAR REVISED)
RESPONSIBLE
AGENCY
STATUS OF ACTIVITY
IN 2007
NEW SPECIFICATIONS
Commercial Dishwashers 2007
Commercial Ice Machines 2007
EPA
EPA
New specification took effect October 11, 2007.
New specification to take effect January 1, 2008.
2007 REVISIONS COMPLETED
Roof Products 1999(2001,2003)
EPA
Revision completed. Revised specification
took effect December 21, 2007.
2007 REVISIONS IN PROGRESS
Commercial Refrigerators/Freezers 2001 (2003)
EPA
Revision initiated in 2007, expected
to be complete in 2008.
NEW SPECIFICATIONS IN DEVELOPMENT
Data Servers
Commercial Griddles
EPA
EPA
New specification initiated in 2007.
New specification initiated in 2007.
SPECIFICATIONS SUNSETTED
Traffic Signals 2000 (2003)
Transformers 1995
EPA
EPA
Due to successful transformation of market,
specification was sunsetted, effective May 2007.
Due to successful transformation of market,
specification was sunsetted, effective May 2007.
FIGURE 22. EPA reports that improving energy efficiency in U.S. data centers could save $4 billion annually
As the U.S. economy increasingly shifts from paper-based to digital
information management, data centers have become a vital part of
business, communication, academic, and governmental systems.
Over the past 5 years, increased use of these systems—and the power
and cooling infrastructure that supports them—has doubled energy
use, increased greenhouse gas emissions, and raised concerns about
power grid reliability.
At the request of Congress, EPA published the Report to Congress
on Server and Data Center Energy Efficiency in 2007, which
outlined current trends in data center energy use and made
recommendations to improve the efficiency of data centers in the
future. Data centers in the United States have the potential to save
up to $4 billion in annual electricity costs through more energy-
efficient equipment and operations, as well as the broad
implementation of best management practices. Other key findings
from the report include:
* Data centers consumed about 60 billion kWh in 2006, roughly
1.5 percent of total U.S. electricity consumption.
* The energy consumption of servers and data centers has doubled in the
past 5 years and is expected to continue increasing over the next 5 years
to more than 100 billion kWh, costing about $7.4 billion annually.
* Existing technologies and strategies could reduce typical server
energy use by an estimated 25 percent, with even greater energy
savings possible with advanced technologies.
EPA is developing a suite of resources to help managers of U.S. data
centers improve energy efficiency and reduce energy costs, including
developing new ENERGY STAR specifications for data center
equipment, as well as a new energy performance rating that reflects
whole building operations.
For more information, visit www.energystar.gov/datacenters.
ENERGY STAR® and Other Climate Protection Partnerships 2007 Annual Report
29
-------
ENERGY STAR IN THE INDUSTRIAL SECTOR
Increasing uncertainty and volatility in energy markets,
combined with greater awareness of the need to manage
greenhouse gas emissions, are stimulating U.S. companies
to establish corporate energy management programs.
In search of guidance, tools, and support networks,
industrial companies are turning to the expanded energy
management resources available through ENERGY STAR.
As these corporations embrace energy management, EPA
has observed that many of them recognize the need to
adjust their strategies to anticipate future energy and
environmental risks. Working closely with U.S. industrial
partners, EPA is encouraging more comprehensive energy
strategies and programs that will achieve greater energy
efficiency and savings.
Achievements in 2007
Enhancing Energy Efficiency through
Advanced Strategies. ENERGY STAR is recognized
by U.S. industry as a leading source of guidance on the
fundamentals of developing a corporate energy
management program. In 2007:
• EPA worked with 20 leading senior executives to
produce Energy Strategy for the Road Ahead, which
enables corporations and their boards to evaluate
business risks concerning the future of energy and
plan accordingly. Distributed to more than 700 CEOs
of major U.S. industrial companies, this report
recommends long-term planning and provides a set
of robust strategies (see Figure 23, p. 33).
• EPA partnered with the Carbon Disclosure Project, over
30 major institutional investors, and 75 companies to
discuss best practices in reporting and analyzing
corporate energy and greenhouse gas management
approaches and the role of ENERGY STAR as a best
practice approach.
Empowering Industries for Greater Energy
Efficiency. EPA works directly with individual industrial
sectors to improve energy efficiency and overcome
barriers such as a lack of information and an inability to
assess energy performance. Through tailored Industrial
Focuses, EPA and its industry partners develop plant-
level energy performance indicators (EPIs), support peer
networking, and produce guidance on improving energy
efficiency in the industry. As of 2007,14 sectors and
subsectors were actively involved in Industrial Focuses
(see Table 12). EPA advanced existing industry focus
partnerships with automobile manufacturing, cement,
corn refining, food processing, glass, Pharmaceuticals,
petrochemicals, petroleum refining, pulp and paper, and
water/wastewater treatment industries. Highlights of
2007 include:
Plant-level Recognition for Excellence
• Almost 40 industrial facilities—including top
performing manufacturing plants in the auto assembly,
cement, and corn refining industries where EPIs
have been established—earned the ENERGY STAR,
including seven U.S. petroleum refineries earning the
ENERGY STAR for the first time (see Table 13).
New Tools and Resources
• Initiated studies of plant-level energy performance
measurement tools for two new subsector industries—
food processing/potato products and glass manufacturing/
fiberglass—bringing the total number to eight.
• Released revised draft EPIs for industry review and
testing for manufacturers of Pharmaceuticals, tomato
products, fresh juices, flat glass, and container glass.
• Issued the first update of the auto assembly EPI
to reflect the increasing efficiency of the sector.
The associated analysis indicates that over the past
4 years, auto manufacturers have reduced their
electricity use by 2 percent and their fossil fuel use
by 12 percent on a per vehicle basis.
• Expanded the suite of energy guides available to focus
industries by releasing final guides for the food
processing and glass industries—and drafting an
energy guide for petrochemical production, bringing
the total number of Industry Guides to eight.
• Published guidance for facility-level benchmarking to
encourage energy efficiency where EPIs have yet to
be developed.
• Shared best practices across the ENERGY STAR focus
industries at their annual meetings, in concert with the
Association of Energy Engineers'World Energy
Engineering Congress.
30
-------
ENERGY STAR IN THE INDUSTRIAL SECTOR
TABLE 12. Summary of EPA's ENERGY STAR Industrial Focuses
FOCUS YEARS
Cement
Manufacturing
Corn Refining
Food Processing
Potato Products
Tomato Products
Glass Manufacturing
Flat Glass Products
Container Glass Products
Motor Vehicle
Manufacturing
Petrochemical
Manufacturing
Petroleum Industry
Pharmaceuticals
Pulp & Paper
Water/Wastewater
4
5
2
New
New
2
New
New
6
1
3
3
1
2
SCOPE PEER INDUSTRY
EXCHANGE ENERGY
OPPORTUNITY GUIDE
75%ofU.S.-based
clinker1* production capacity
95%ofU.S.-based
refining capacity
80% of U.S. processed fruit,
vegetable, and grain sales
50% of U.S. flat, container,
and fiberglass sales
75% of the industry with
U.S. -based production
83% of U.S. ethylene
production capacity
64% of U.S.-based
refining capacity
Over 50% of the global and
U.S. manufacturing capacity
70% of U.S.-based
companies' global sales
40% of the tola I
U.S. population represented
• 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
In draft
Private system
recognized by EPA
In process
Exploring options
In process
1
Clinker is the output from a cement kiln.
"Source: U.S. Census Bureau, December 2006 and 2005.
TABLE 13. EPA expands ENERGY STAR for superior energy management of industrial plants
SECTOR FACILITY
Cement Plants
Auto Assembly Plants
Petroleum Refineries
Wet Corn Mills
Total Plants Labeled
Total Estimated Energy Savings
(compared with average plants)
LABELS EARNED IN 2007
12
7
7
1
27
59,700,000 mmBtu
TOTAL PLANTS EARNING LABELS SINCE 2006
12
15
7
3
37
77,600,000 mmBtu
ENERGY STAR® and Other Climate Protection Partnerships 2007 Annual Report
31
-------
Expanding Industrial Partnerships. EPA supports
partners from a wide variety of industrial sectors. These
partners have access to energy management resources,
including the core materials for effective energy
management available on the ENERGY STAR Web site,
communication materials, an active network of energy
managers, and opportunities for recognition for superior
energy management. In 2007:
• The number of ENERGY STAR industrial partners grew
to almost 480.
• EPA's peer exchange network grew by 42 percent.
The 620 participants, representing more than
220 organizations, discussed topics such as energy and
greenhouse gas management, retro commissioning,
facility assessments, and sub-metering for strategic
energy management.
• ENERGY STAR industrial partners continued to support
consumer awareness of the environmental benefits of
ENERGY STAR qualified lighting by encouraging
employees to take the ENERGY STAR Change a Light,
Change the l/l/or/cfpledge.
Recognizing Leadership in Industrial Energy
Efficiency. Recognition plays a large part in influencing
corporate culture change around energy management.
The ENERGY STAR Partner of the Year Awards identify the
industrial leaders and showcase their achievements,
serving as an example for other corporations. In 2007, the
ranks of industrial corporations achieving a high level of
superior energy management grew to include:
• Seven ENERGY STAR industrial partners honored for
Sustained Excellence in Energy Management: 3M,
California Portland Cement Company, Ford Motor
Company, Merck & Co, Inc., PepsiCo, Raytheon
Company, and Toyota Motor Manufacturing North
America. Sustained Excellence awardees continually
challenge their organizations to improve energy
efficiency and consistently achieve impressive
energy savings.
• Three industrial partners recognized as ENERGY STAR
Partner of the Year for the first time: Allergan, Inc.,
ArcelorMittal USA, and The Dow Chemical Company.
What to Expect in 2008 and Beyond
Breaking down the market barriers that limit the adoption
of energy efficiency will require outreach to new
industrial organizations and continued support for
partners. EPA will:
• Continue the Industrial Focuses with the 14
participating sectors and subsectors. EPA expects to
finalize two industrial EPIs in 2008—one in the food
processing industry and another in the glass
production industry.
• Offer new directions for industrial companies to
address the risks and costs associated with the
embedded energy of the supplies and services they
bring into their manufacturing processes in line with
the recommendations in Energy Strategy for the Road
Ahead.
• Continue to support peer exchange forums for the
industrial focus sectors and 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
certain plants engaged in food processing and glass
manufacturing will be eligible to earn the ENERGY
STAR by the end of 2008.
• Collaborate with EPA's Laboratories for the 21st
Century program to assess using EPA's energy
performance rating system to help benchmark
laboratories.
• Increase the impact of ENERGY STAR in the
manufacturing sector by completing an agreement
with the nation's largest industrial trade association,
the National Association of Manufacturers (NAM), to
provide ENERGY STAR resources to NAM's broad
membership.
• Continue to partner with the Carbon Disclosure Project
to identify and promote best practices in voluntary
reporting of climate risks, emissions reduction
opportunities, and energy management practices to
financial audiences.
• Recognize excellence in industrial energy management
through the annual Partner of the Year Awards.
32
-------
ENERGY STAR IN THE INDUSTRIAL SECTOR
FIGURE 23. Energy Strategy for the Road Ahead
Energy Strategy
for the Road Ahead
nm
UF Sa<«
Saralo TtwtoiE fat Buaiwsa Bnciitma
2007
GBN Global Business Network
A growing awareness of the impacts of
energy on business and its relationship
to global warming has prompted many
industries to turn to ENERGY STAR
for strategies to manage these risks.
Through ENERGY STAR, EPA set out
to identify the key strategies
corporations must implement now to
prepare for the future of energy. EPA
... ... . ,.
leading companies and the strategy consultancy Global Business
Network. A year of work resulted in the 2007 release of a
transformative report, Energy Strategy for the Road Ahead — Scenario
Thinking for Business Executives and Corporate Boards*
Key Strategies
1 . Master the fundamentals of energy efficiency by creating a
strong energy management program empowered across the
organization and supported by senior executives. ENERGY
STAR resources provide the guidance to do this.
Transformative thinking: Understand that energy efficiency is
the best hedge against future price or availability risks.
2. Take a longer and broader view of investments and strategic
decisions about energy.
Transformative thinking: Value energy
in terms of corporate productivity, placing energy on equal
footing with labor, material, capital, and other operational
expenses. View energy projects over the long-term because they
carry some of the more attractive returns and lowest risk.
3. Search out business transformation opportunities in the way
the company manages,
Drocures, and uses energy.
Transformative thinking: View energy as a lever for positive
growth and change within the business, not simply as a
Energy To-Do List
Of one thing we can be sure: energy will be more challenging and
more important in the future. Will you, and your business, be ready?
What Executives, Senior Managers, and
Board Members Can Do:
Manage energy actively from your position.
LJ Empower energy staff to fulfill the fundamentals.
Q Push for strong energy efficiency from all parts of the business.
Q Enable energy investments by valuing them differently from
other projects.
1 — 1 Educate customers on the value of energy performance in products.
LTI Involve yourself.
Make strategic energy management a Board-level issue.
CH Are you a member of the Board of another corporation?
Q Can you influence the corporation to examine its energy and
climate strategy?
Q Is the corporation practicing strategic energy management?
Influence your industry.
D.
Do you participate in industry associations?
LJ Can you initiate and lead discussions among your industry
counterparts on why strategic energy management is important?
Use scenario thinking in your ongoing strategic discussions.
1 — 1 Wind-tunnel your current energy and climate strategy in these
scenarios.
LJ Connect energy and climate strategy with broader company
programs, goals, and strategies.
feedstock, facilitator of a service, or cost to manage. Evaluate and
potentially redesign how products and services are offered.
4. Prepare contingency strategies tor emerging future scenarios.
Transformative thinking: Continue to consider how the
future may unfold and actively manage for exposure to these
potential risks.
5 . Take personal action. Corporate leaders — individually, in
companies, on boards, and across industries — set the tone for
a corporation and must actively manage energy from their
positions. Transformative thinking: Empower staff to fulfill
the fundamentals, push for efficiency, enable energy investments by
valuing them differently from other projects, and educate customers
PARTICIPATING COMPANIES
California Portland Cement Mercury Marine
Cascade Engineering Mittal Steel
CEMEX National Starch & Chemical
Dow Chemical Owens Corning
Eastman Chemical PepsiCo / Frito-Lay
Genentech PPG Industries
General Motors Proctor & Gamble
HSBC Shell NA
Jones Lang LaSalle Toyota NA
Merck & Co. UPS
on the value of energy performance in products and services.
* Energy Strategy for the Road Ahead may be downloaded at www.energystar.gov/energystrategy.
ENERGY STAR® and Other Climate Protection Partnerships 2007 Annual Report
33
-------
CLIMATE CHOICE
34
In managing the ENERGY STAR program over the past 15
years, EPA has gained significant experience in identifying
and dismantling market barriers that inhibit the adoption
of commercially proven, cost-effective energy-efficient
technologies. When considering emerging technologies,
EPA recognizes their tremendous potential to reduce
greenhouse gas emissions. To gain wider use, these
cutting edge technologies must also face and overcome
significant barriers, such as a lack of awareness and long
payback periods.
To help overcome the unique barriers facing emerging
technologies and accelerate their widespread adoption,
EPA launched a new climate technology initiative in 2007
called Climate Choice. It focuses on technologies that:
• Are commercially available but not yet widely adopted.
• Have demonstrated environmental performance.
• Have the potential to significantly reduce greenhouse
gas emissions across the marketplace at competitive
costs in the future.
Climate Choice is designed to target the early technology
adopters and consumers looking for green options (see
Figure 24). They are often eager and able to take additional
steps to protect the environment beyond those taken by
mainstream consumers who depend on the ENERGY STAR
label to guide their purchasing decisions of energy-efficient
products.
Building on EPA's experience in facilitating technology
adoption, Climate Choice can offer selected emerging
technologies the following assistance:
• Recognition. To promote consumer awareness and
provide objective information in the marketplace, EPA
will feature selected emerging technologies on the
Climate Choice Web site, and offer other recognition
opportunities.
• Tailored technology assistance. EPA will work with
program stakeholders to develop a coordinated
technology adoption plan that identifies barriers to
wider technology deployment and ways EPA can
address them. The plan will also identify opportunities
for information sharing through existing ENERGY STAR
networks and the Climate Leaders peer exchange.
• ENERGY STAR candidate development. The Climate
Choice coordinated technology adoption plan will
identify key milestones each technology must reach to
become a candidate for certification under the
ENERGY STAR program, if appropriate.
Achievements in 2007
In 2007, EPA and its stakeholders took the first steps to
identify how EPA could effectively address the unique
market barriers facing climate-friendly emerging
technologies, including:
• Publishing a proposal for the Climate Choice climate
technology initiative and soliciting and incorporating
public comments.
• Hosting the Climate Technology Initiative Conference
in October 2007, which brought together more than
70 experts from government, industry, and nongovernmental
organizations (NGOs) to make recommendations on
EPA's efforts for promoting emerging climate protection
technologies and defining criteria for the Climate Choice
pilot program (see Table 14).
• Adopting criteria for the Climate Choice pilot program.
As an outcome of the conference, EPA adopted the pilot
program criteria recommended by the conference
attendees and other stakeholders. To qualify for
participation in the Climate Choice pilot program,
emerging technologies must:
1. Be commercially available but not widely adopted
(< 5% market share).
2. Preferably be offered by more than one supplier.
3. Have verified environmental performance.
4. Be likely to significantly reduce greenhouse gas
emissions at the sector level at competitive costs.
5. Have capable business partners and be
adequately financed.
6. Be matched to EPA core competencies.
7. Have no unacceptable environmental trade-offs.
What to Expect in 2008 and Beyond
In 2008, EPA will continue to collaborate with its
stakeholders in the roll out of the Climate Choice program.
Major program milestones include launching the Climate
Choice Web site, selecting three pilot technologies,
developing and implementing coordinated technology
adoption plans for pilot technologies, continuing to refine
program criteria, and establishing a formal technology
nomination and selection process.
-------
CLIMATE CHOICE
FIGURE 24. Climate Choice targets early adopters and environmentally motivated consumers*
ET PROGRAMS
(Screening)
INNOVATORS
EE PROGRAMS
(Deployment & Dissemination)
CODES & STANDARDS
(Federal & State)
EARLY
ADOPTERS
EARLY
MAJORITY
LATE
MAJORITY
LAGGARDS
ENERGY-EFFICIENT TECHNOLOGIES COMMERCIALIZATION PROCESS
"Figure adapted from the California Energy Commission
TABLE 14. Findings of the Climate Technology Initiative Conference
The EPA Climate Technology Initiative Conference brought together more than 70 experts from government, industry, and NGOs to provide
guidance for EPA in facilitating the adoption of emerging climate protection technologies. Their findings, approved by consensus, include:
FINDING 1
FINDING 2
FINDINGS
FINDING 4
FINDINGS
FINDINGS
Concern for Climate Change Has Created a
Market for New Technology
EPA Can Speed Commercialization of
Environmentally Superior Technology
Understand the Market and the Technology
Vigorously Protect the ENERGY STAR Brand
Develop Unique Recognition Programs for
Emerging Climate Protection Technology
Emerging Climate Protection Technology Can Be
Promoted At Every Stage of Development
FINDING?
FINDINGS
FINDINGS
FINDING 10
FINDING 11
EPA Will Want To Concentrate on Technologies
Within Its Core Competencies
EPA Needs Partners to Complement &
Supplement Its Core Competencies
A Portfolio Approach Can Support Multiple
Products at Different Stages
Pilot Projects Must Be Strategically Selected
and Agilely Pursued
EPA Can Help Define New Product Carbon
Performance Standards
ENERGY STAR® and Other Climate Protection Partnerships 2007 Annual Report
35
-------
CLEAN ENERGY SUPPLY PROGRAMS
I POWER
I PARTNERSHIP
Since 2001, EPA's Clean Energy Supply Programs, which
include the Green Power Partnership (GPP) and the
Combined Heat and Power (CHP) Partnership, have made
tremendous progress in facilitating the explosive growth
of green electricity generation and environmentally
beneficial CHP across the country. Both programs work to
dismantle market barriers and provide cost-effective
solutions for their hundreds of partners by offering
technical resources, credible benchmarks, access to
expertise, and recognition for environmental leadership.
The investments in clean energy made by EPA's partners
result in environmental benefits for all, namely the
reduction of greenhouse gas emissions and criteria
pollutants. Achievements have been impressive; in 2007
alone, EPA's Clean Energy Supply programs reduced
greenhouse gas emissions by 4.8 MMTCE (see Table 15).
Green Power Partnership
Purchasing electricity generated
green power resources
EPA's Green Power
Partnership offers organizations an easy and attractive
way to reduce the environmental impact of their
operations, hedge against volatile energy prices, increase
employee and stakeholder morale, and demonstrate
environmental leadership. The commitments of new and
existing program partners—who range in size from
Fortune 500 corporations to neighborhood businesses,
large public universities to small private colleges, local
communities to city, state, and federal government
agencies—made 2007 a banner year for the Green Power
Partnership.
In 2007, the Green Power Partnership:
• Added 250 new partners, increasing the total number
of partners to more than 850. These organizations have
committed to buying more than 11.5 billion kWh
annually of green power—an increase of almost two-
thirds over 2006 and enough to run nearly 1.2 million
average American homes for one year (see Figure 25).
• Recognized the participants in EPA's Fortune 500 Green
Power Challenge, a year-long initiative focused on
doubling the collective green power purchases of
eligible Fortune 500 corporations to exceed 5 billion
kWh annually (see sidebar on p. 38). GPP partners
surpassed the goal, buying more than 6 billion kWh of
green power. Among the Challenge participants were
Intel Corporation, PepsiCo, Wells Fargo & Company,
Whole Foods Market, The Pepsi Bottling Group, Inc.,
Johnson & Johnson, Cisco Systems, Inc., Kohl's
Department Stores, Starbucks, and DuPont Company.
•Acknowledged participating partners in EPA's College
& University Green Power Challenge, which concluded
in April 2007. EPA ranked individual school's purchases
of green power against others within their athletic
conference and calculated cumulative purchase
amounts between competing athletic conferences.
• Presented 17 Green Power Leadership Awards to top
purchasers of green power and onsite renewable
power systems (see Table 16).
• Launched the Green Power Communities initiative,
recognizing the collective action of local government,
business, and citizens in buying green power through
community organized campaigns. By the end of 2007,
10 communities across the nation had met EPA Green
Power Community purchase requirements.
Combined Heat and Power Partnership
Partnership seeks to reduce
•gjjj CHP
COMBINED HEAT AND th e en vi ro nmenta I impact of power
POWER PARTNERSHIP
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
25 percent more efficient than traditional separate heat
and power generation.12 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.
In 2007, the CHP Partnership:
• Added 33 new partners for a total of 233 and
assisted in the deployment of more than 850 MW of
new CHP nationwide, bringing the cumulative impact
of the program to over 4,450 MW of new CHP (see
Figure 26, p. 39).
36
For more information, see www.epa.gov/chp/basic/efficiency.html
-------
CLEAN ENERGY SUPPLY PROGRAMS
FIGURE 25. Green Power purchases and avoided greenhouse gas (GHG) emissions almost doubled in 2007
2002
2003
2004
2005
2006
2007
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
4.8
TABLE 16. EPA recognizes 17 leading Green Power partners in 2007
ONSITE GENERATION
City of Chico
Chico, CA
Macy's, Inc. West
Division
San Francisco, CA
The Timberland Company
Stratham, NH
GREEN POWER PURCHASING
Kohl's Department Stores
Menomonee Falls, I/I//
New York University
New York, NY
Pepsi Bottling Ventures
Raleigh, NC
PepsiAmericas, Inc.
Schaumburg, IL
Sloan Valve Co. / IL
Manufacturing Facility
Franklin Park, IL
Starbucks
Seattle, WA
The Pepsi Bottling
Group, Inc.
Somers, NY
PARTNER OF THE YEAR
City of Bellingham
Bellingham, WA
Johnson & Johnson
New Brunswick, NJ
Mohawk Fine Papers Inc.
Coftoes, NY
PepsiCo
Purchase, NY
Staples
Framingham, MA
Wells Fargo & Company
San Francisco, CA
Whole Foods Market
Austin, TX
ENERGY STAR® and Other Climate Protection Partnerships 2007 Annual Report
37
-------
• 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, by presenting six ENERGY STAR
CHP Awards. These winning systems ranged from a
5 MW system at an ethanol facility to a 15 MW facility
that supports a large university campus (see Table 17).
• 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.
What to Expect in 2008 and Beyond
In 2008, EPA's clean energy programs will continue to
dismantle the market barriers that can stifle investment
in clean electricity generation and environmentally
beneficial CHP. In particular, EPA will:
• Expand the Green Power Partnership to achieve its
goal of reaching more than 16 billion kWh in annual
green power purchases by year's end and work with
green power suppliers to increase the supply of
attractive green power products in the market.
• Aggressively promote the Fortune 500 Green Power
Challenge to current and prospective Fortune 500
partners and recognize the winners of the second
College & University Green Power Challenge.
• Provide assistance in the development of CHP projects
and expand work with strategic sectors, including the
dry mill ethanol sector, wastewater treatment facilities,
and casinos and hotels. Through the CHP program,
EPA will also begin outreach to municipal and
cooperative utilities to identify CHP opportunities.
• Foster partnerships between rural electricity
producers and facilities needing thermal energy for
mutually beneficial economic and environmental
projects.
• Reach out to more states and municipalities and
provide technical information on other state or local
energy, environmental, and utility practices that
encourage environmentally beneficial CHP.
FORTUNE 500 COMPANIES MEET THE GREEN POWER CHALLENGE
In December 2006, EPA challenged Fortune 500 companies to increase their green power purchases
to more than 5 billion kWh annually through the Fortune 500 Challenge, launched by EPA's Green
Power Partnership. In response, 53 Fortune 500 companies stepped up their commitment to
environmental stewardship by collectively doubling their annual green power purchases
P~~* f\ I \ to more than 6 billion kWh. These purchases made 2007 a banner year and helped
*~J J J avoid the greenhouse gas emissions equivalent to more than 570 million gallons
of gasoline.
Leading the charge was Intel, which assumed the Number 1 spot with a purchase of more than 1.3 billion kWh of clean, carbon-free
green power. The company's purchase is the largest to date among all the Green Power partners, and it alone represents enough electricity
to power more than 130,000 average American homes each year. PepsiCo is second on EPA's list of Fortune 500 companies, followed by
Wells Fargo & Company, Whole Foods Market, The Pepsi Bottling Group, and Johnson & Johnson. Cisco Systems and Kohl's
Department Stores recently made sizable purchase increases to put them at seventh and eighth on the list, respectively. Rounding out
the top 10 green power purchasers are Starbucks and DuPont Company.
38
-------
CLEAN ENERGY SUPPLY PROGRAMS
FIGURE 26. Combined heat and power capacity by state as of 2007*
WASHINGTON
Increasing Installed CHP Capacity
<5MW
5-50 MW
51-500MW
>500 MW
*AII data are self-reported; states might have more capacity than reported or shown.
TABLE 17. 2007 ENERGY STAR Combined Heat and Power Awards
Adkins Energy CHP System
Adkins Energy, LLC
Lena, IL
Arizona State University CHP System
Arizona State University
Tempe, AZ
Kent State University Cogeneration Plant
Kent State University
Kent, OH
Macon Energy Center CHP Project
Macon Municipal Utilities and Northeast Missouri Grain, LLC
Macon, MO
Princeton University Energy Plant
Princeton University
Princeton, NJ
University of New Mexico CHP Project
University of New Mexico
Albuquerque, NM
ENERGY STAR® and Other Climate Protection Partnerships 2007 Annual Report
39
-------
STATE AND LOCAL PROGRAMS AND INITIATIVES
Clean Energy Environment
STATE PARTNERSHIP
Clean EnergyEnvlronment
MUNICIPAL NETWORK
EPA supports the states and
localities that are developing
initiatives aimed at providing an
increasingly clean, renewable, and
efficient supply of energy. EPA
assists their development and
deployment of emerging technologies
and helps address their need to
achieve energy cost savings through
greater end-use efficiency in residential and commercial
buildings, municipal facilities, and transportation. This
federal assistance is important 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 a projected 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's Clean Energy-Environment state and local programs
assist state and municipal governments in their clean
energy efforts by providing technical assistance,
analytical tools, and outreach support. Specific
assistance includes:
• Identifying and documenting cost-effective policies
and initiatives that promote renewable energy, energy
efficiency, and related clean energy technologies.
• Providing tools and guidance that help state and local
governments measure and evaluate the environmental,
economic, and public health benefits of clean energy
initiatives (see Figure 27).
• Offering a suite of national voluntary programs that
provide partners with assistance and recognition for
their clean energy actions.
• Fostering peer-exchange opportunities for state and
local officials to share information on best practices and
innovative policies.
EPA also provides technical assistance to public utility
commissions that are exploring options to reduce the
regulatory barriers to adopting comprehensive energy
efficiency, renewable energy, and combined heat and
power programs in their states.
Clean Energy-Environment State
Partnership
In 2007, EPA assisted state governments by:
• Expanding the focus of support from a targeted group
of state partners to a comprehensive nationwide
program to help all states learn from the experiences
gained through the partnership.
• Adding Hawaii to the State Partnership program,
bringing the total to 15 partners.
• Supporting states 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 (see Table 18).
• Conducting eight peer exchange sessions through the
EPA Clean Energy-Environment Technical Forum—
involving a total of more than 200 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.
Clean Energy-Environment Municipal
Network
In 2007, EPA assisted local governments by:
• Expanding the Clean Energy-Environment Municipal
Network—a complementary program to the Clean
Energy-Environment State Program—to provide one-
stop access to the wealth of EPA programs that offer
technical assistance or resources to local governments.
• Developing an online, searchable database of
resources to help local governments assess clean
energy policies and programs.
• Providing support to Dallas, TX, and Philadelphia, PA,
for their urban heat island efforts through activities
40
-------
STATE AND LOCAL PROGRAMS AND INITIATIVES
Figure 27. Tools and resources for states
eGRID
EPA's State Greenhouse Gas Inventory and Projection Tool:
Based upon IPCC and the U.S. National Greenhouse Gas
Inventory methods, this user-friendly tool helps states develop state-
level greenhouse gas inventories and project future emissions.
http://epa.gov/climatechange/emissions/state_guidance.html
E-Grid: A comprehensive source of data
on the environmental characteristics of
U.S. power generation at various levels
of aggregation. Links electricity generation, air emissions, and
resource mix. http://www.epa.gov/cleanenergy/egrid/index.htm
Clean Energy-Environment Guide to
Action: Policies, Best Practices, and Action
Steps for States: 16 best practices states
have found to cost-effectively advance clean
energy and other environmental goals.
http://epa.gov/cleanenergy/stateand
local/guidetoaction.htm
State Climate Change Mitigation Actions: Maps and tables
summarizing state programs, initiatives, and policies to promote
clean energy and reduce greenhouse gases.
http://epa.gov/climatechange/wycd /stateandlocalgov/state_
actionslist.html
EPA's Greenhouse Gas Equivalency Calculator: A Web-based
calculator that enables organizations and individuals to quickly and
easily translate greenhouse gas reductions from units typically
used to report reductions into terms that are easier to
conceptualize (e.g., passenger cars not driven for one year).
http://epa.gov/cleanenergy/ energy-resources/calculator.html
TABLE 18. Clean Energy-Environment State Partnership grows to 15 partners in 2007
STATE CLEAN ENERGY-ENVIRONMENT ACTIONS
Energy Efficiency Savings Goals in Public Facilities
Energy-Efficient Appliance and Equipment
Purchase Requirements for Public Facilities
Renewable Energy Goals for Public Facilities
State & Regional Energy Planning
Energy Efficiency Portfolio Standards
Public Benefit Funds for Energy Efficiency
Commercial Energy Efficiency Building Codes
Residential Energy Efficiency Building Codes
State Appliance Energy Efficiency Standards
Renewable Portfolio Standards
Public Benefit Funds for Renewable Energy
Output-Based Environmental Regulation To
Support Clean Energy
Clean Distributed Generation
Net Metering
PARTNERS WITH NEW
PROGRAMS IN 2007
10
4
5
1
3
1
2
2
0
1
1
0
0
0
TOTAL PARTNERS
WITH PROGRAMS
14
11
9
15
10
10
12
12
5
12
10
7
13
15
ENERGY STAR® and Other Climate Protection Partnerships 2007 Annual Report
41
-------
such as quarterly Webcast training sessions on how to
reduce urban heat islands.
• Forming a Transportation Research Board
Subcommittee on Pavements and the Urban Climate to
help advance research on and understanding of cool
pavement technologies and policies.
What to Expect in 2008 and Beyond
EPA will continue to support state and local governments
as they develop, implement, and refine their clean
energy and climate protection activities. Specifically,
EPA will:
• Add one additional state partner, bringing the total
number of partners in the State Partnership program to
16 in 2008, and provide resources to additional states
across the country.
• Expand the real time, online information about state
clean energy and climate policies as well as best practices.
Clean Energy and Utility Policy Programs
Despite the proven economic and
environmental benefits of energy
efficiency, a range of barriers have
hindered utilities and others from making
greater investments in these cost-effective
measures. EPA continues to provide state
public utility commissions and others with
tools and resources for exploring and
implementing policies that will reduce the
barriers to adopting comprehensive energy efficiency,
renewable energy, and combined heat and power
programs at the state and local level.
In 2007, EPA:
• Co-facilitated the National Action Plan for Energy
Efficiency (Action Plan) with DOE. This effort brings
together a Leadership Group of more than 60 top
utilities, utility regulators, state agencies, large energy
users, consumer advocates, energy service providers,
and environmental and energy efficiency
organizations. During its first 2 years, the Leadership
Group reviewed and identified the barriers limiting
greater investment in cost-effective energy efficiency,
developed five key policy recommendations for
increasing investment in energy efficiency, and
presented a suite of resources to help committed
organizations implement the recommendations.
Through 2007,120 organizations across 49 states had
National
Action
Plan for
Energy
Efficiency
made commitments to advance energy efficiency
through the Action Plan (see Table 19).
•Released Vision for 2025: Developing a Framework for
Change, which offers a framework for state-specific
policies and programs to overcome barriers and
enable the acquisition of all cost-effective energy
efficiency potential by 2025. The Vision for 2025
identifies 10 implementation goals for states to consider
in order to help them achieve energy efficiency
improvements by the year 2025 (see Table 20).
• Continued to provide technical assistance to states
through the EPA-State Energy Efficiency Renewable
Energy Pilots, including New Mexico, Florida, and
Maryland.
• Provided policy assistance about the electric sector to
states developing rules and policies that will accelerate
the deployment of customer-sited clean distributed
generation, including Hawaii, Florida, Maryland, and
South Dakota.
What to Expect in 2008 and Beyond
EPA will continue to assist interested state public utility
commissions in their efforts to advance clean energy by
sharing information on how other 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 third year, the Action Plan
will focus on outreach and education, measuring
progress toward the Vision for 2025, and developing
additional educational resources. These new resources
will address:
• The role of energy efficiency as a low-cost strategy for
reducing carbon emissions.
• Coordinating demand response and energy efficiency
policies and programs.
• Defining cost-effectiveness of energy efficiency
programs.
• Advancing building energy codes through energy
efficiency programs.
• Energy efficiency design and implementation best
practices.
• Customer incentives for energy efficiency.
• Availability of energy bill data to customers.
• Designing and implementing state and local lead-by-
example programs.
42
-------
STATE AND LOCAL PROGRAMS AND INITIATIVES
TABLE 19.120 organizations have made commitments under the National Action Plan for Energy Efficiency
TYPE OF COMMITMENT
Establishing and supporting state-level collaborative processes
to explore how best to increase investment in energy efficiency
Investing additional money in energy efficiency programs
Starting new and/or expanding existing energy efficiency programs
Exploring policies and practices to align utility incentives with
the delivery of cost-effective energy efficiency
Advancing efforts to include energy efficiency on a consistent and
comparable basis with supply-side resources in future resource
planning activities
Meeting aggressive energy savings goals
Proactively educating stakeholders on the benefits of and
opportunities for energy efficiency
NUMBER OF ORGANIZATIONS MAKING A
COMMITMENT UNDER THIS RECOMMENDATION*
15
4
17
5
24
26
68
* See the Action Plan Web site lwww.epa.gov/eeactionplanl for a full listing of energy efficiency commitments.
TABLE 20. Resources available in support of the Action Plan's Vision for 2025 goals
VISION FOR 2025 GOALS
GOAL ONE
Establishing Cost-Effective Energy
Efficiency as a High-Priority Resource
GOAL TWO
Developing Processes To Align
Utility Incentives Equally for
Efficiency and Supply Resources
GOAL THREE
Establishing Cost-Effectiveness Tests
GOAL FOUR
Establishing Evaluation, Measurement,
and Verification Mechanisms
GOAL FIVE
Establishing Effective Energy Efficiency
Delivery Mechanisms
GOAL SIX
Developing State Policies To Ensure
Robust Energy Efficiency Practices
GOAL SEVEN
Aligning Customer Pricing and
Incentives To Encourage Investment in
Energy Efficiency
GOAL EIGHT
Establishing State of the Art
Billing Systems
GOAL NINE
Implementing State of the Art Efficiency
Information Sharing and Delivery Systems
INTRODUCTION TO
ISSUES IN JULY 2006
ACTION PLAN REPORT
—
•
•
•
•
•
•
ACTION PLAN TOOLS AND RESOURCES
• Guide to Resource Planning with Energy Efficiency
• Guide for Conducting Energy Efficiency Potential Studies
• Communications Kit
•Aligning Utility Incentives with Investment in
Energy Efficiency Paper
• Guide to Resource Planning with Energy Efficiency
• Guide for Conducting Energy Efficiency Potential Studies
• Model Energy Efficiency Program Impact Evaluation Guide
• Regional Implementation Meetings
• Resources Database
• Building Codes for Energy Efficiency Fact Sheet
• Sector Collaborative on Energy Efficiency
• Paper on Coordination of Demand Response and Energy
Efficiency (under development)
GOAL TEN
Implementing Advanced Technologies
ENERGY STAR® and Other Climate Protection Partnerships 2007 Annual Report
43
-------
METHANE PROGRAMS
Methane (CH4) is both a potent greenhouse gas—over
20 times more effective than C02 at trapping heat in
the atmosphere—and a valuable energy resource (see
Table 21). Methane emissions from sources including
agriculture, landfills, coal mines, and oil and natural gas
systems currently represent about 7 percent of total
U.S. greenhouse gas emissions. The recovery and
utilization of methane as an energy source offers
substantial opportunities for cost-effective greenhouse
gas emissions reductions that deliver significant economic,
environmental, and energy benefits.
For more than a decade, EPA has managed a suite of
partnership and outreach programs designed to reduce
emissions of methane by removing the market barriers
that discourage investment in its recovery and use as an
energy resource. All of these programs, including the
Natural Gas STAR Program, AgSTAR, the Coalbed
Methane Outreach Program, and the Landfill Methane
Outreach Program, follow a successful strategy: they
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 2007, the methane programs saved a combined
17.4 MMTCE, an increase of more than 85 percent
since 2000 (see Table 22). 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. They are projected to remain below
1990 levels through at least 2012 (see Figure 28).
Building off this success in the United States, EPA is now
leveraging its experience and expertise to achieve
economic and environmental results on a global scale.
The Methane to Markets Partnership works to advance
the recovery and use of methane as a clean energy
source (see Figure 32, p. 51 ). Since its launch in 2004 with
14 partner countries, the Partnership has grown
substantially to include 27 partner governments and more
than 800 public and private sector organizations.
Natural Gas STAR Program
:ral Gas STAR is a partnership
between EPA and the U.S. natural
gas industry designed to overcome
arriers 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 partners implement a wide range of
cost-effective methane reduction best management
practices and technologies.
In 2007, Natural Gas STAR:
• Reduced methane emissions by 10.2 MMTCE and
achieved cumulative reductions of more than
75 MMTCE since 1990 (see Figure 29, p. 47).
• Maintained 62 percent industry participation across all
major sectors—production, processing, transmission,
and distribution.
• Partnered with nine new companies, bringing the total
number of partners to more than 120.
• Collaborated with eight Natural Gas STAR International
partners to develop Program Implementation Plans and
identify and prioritize methane mitigation opportunities.
• Conducted six onsite and three online technology
transfer workshops covering the four major gas
sectors, each of which provided an excellent forum for
company representatives and industry experts to
receive and share information on current cost-
effective technologies and practices for reducing
methane emissions.
• Recognized 10 partner companies for significant
corporate achievements in reducing methane
emissions from oil and gas systems at the
14th Annual Implementation Workshop in
Houston, TX (see Table 23, p. 47).
44
-------
METHANE PROGRAMS
TABLE 21. Global warming potentials (GWPs) and atmospheric lifetimes of greenhouse gases
GREENHOUSE GAS
Carbon Dioxide
Methane
Nitrous Oxide
Hydrofluorocarbons
HFC-134a
Perfluorocarbons
Sulfur Hexafluoride
GLOBAL WARMING
POTENTIAL FOR 100 YEARS
1
21
310
140-11,700
1,300
6,500-9,200
23,900
ATMOSPHERIC
FETIME (YEARS)
50-200
12±3
120
1.5-264
14
3,200-50,000
3,200
Source: IPCC 1996
TABLE 22. EPA's Methane Programs meet and surpass goals
PROGRAM
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)
2007 GOAL
59%
6.7
2.0
329
5.2
13.9
2007 ACHIEVEMENT
62%
10.2
2.0
360
5.2
17.4
60%
7.0
2.2
349
5.5
14.7
FIGURE 28. 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 2007 Annual Report
45
-------
46
What to Expect in 2008 and Beyond
EPA will continue to support Gas STAR partners in the
following ways as they implement programs to reduce
their methane emissions:
• Develop additional tools and resources that highlight
the environmental and economic benefits of methane
reductions and facilitate company implementation of
emissions reduction projects.
• Provide one-on-one assistance to partners in
identifying and prioritizing new, cost-effective
opportunities to further reduce methane emissions.
• Conduct six onsite and six Web-based technology
transfer workshops, and expand the Annual
Implementation Workshop to include a broader
international focus.
• Conduct measurement studies and technology transfer
workshops at oil and gas operations globally to assess
key emissions sources and identify potential mitigation
measures, as well as to provide critical technical
training in leak detection and quantification methods.
AgSTAR Program
Through the AgSTAR Program, EPA,
the U.S. Department of Agriculture
(USDA), and DOE 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. EPA provides technical
information and tools to help implement systems and assess
potential projects. In addition to avoiding greenhouse gas
emissions, the technologies and practices encouraged
through AgSTAR reduce local water and air pollution and
generate renewable energy that improves farm revenues.
Currently, there are nearly 200 operating or planned
systems in the United States.
In 2007, AgSTAR:
• Assisted livestock producers in project planning and
implementation 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 farms and local communities.
• 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. These activities took place
as part of the implementation of Section 9006 of the
Farm Bill.
• Developed and updated several important project
implementation tools and resources, including the
AgSTAR industry directory and the FarmWare project
development software.
What to Expect in 2008 and Beyond
In 2008, AgSTAR will:
• Formalize collaboration with state energy programs
across the country to facilitate the development of
anaerobic digestion systems as renewable energy
sources.
• Host the fourth annual national conference to provide
environmental, program, market, state-of-the-art
technical, and funding information on anaerobic
digestion systems.
• Deliver state and regional workshops to educate
livestock producers and promote anaerobic digestion
systems, in collaboration with USDA and state energy
programs.
• Continue to develop a national database to house
information on current and pending anaerobic digestion
systems.
Coalbed Methane Outreach Program
The Coalbed Methane Outreach Program
fc.EPAj«^% (CMOP) collaborates with coal
Coalbed Methane companies and related industries to
\^yoU™«cH«oo.»M 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 on
mitigating emissions from degasification systems at
underground coal mines and underground mine
ventilation systems. The program provides 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, technology demonstrations, 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
80 percent in 2007. To capture the remaining methane
emitted from degasification systems, EPA is working with
industry to use CMM for injection in natural gas pipelines
-------
METHANE PROGRAMS
FIGURE 29. Natural Gas STAR cumulative greenhouse gas emissions reductions and gas savings
DC
CO
CO
CD
<
la
LLJ CO
> z
=
is
u oc
800-
2000
2001
2002 2003 2004 2005
2006
2007
TABLE 23. 2007 Natural Gas STAR Awards
PRODUCTION PARTNER OFTHEYEAR
EnCana Oil & Gas Inc. (USA)
Calgary, Alberta
PROCESSING PARTNER OFTHEYEAR
Enbridge Energy Partners, Inc.
Houston, TX
TRANSMISSION PARTNER OFTHEYEAR
Columbia Gas Transmission Corporation
Houston, TX
DISTRIBUTION PARTNER OFTHEYEAR
Alliant Energy
Madison, I/I//
CONTINUING EXCELLENCE (12 YEARS)
Chevron Corporation
San Ramon, CA
Great Lakes Gas Transmission Company
Troy, Ml
CONTINUING EXCELLENCE (10 YEARS)
Consumers Energy
Jackson, Ml
Southwest Gas Corporation
Las Vegas, NV
CONTINUING EXCELLENCE (5 YEARS)
Northern Natural Gas Company
Omaha, NE
ROOKIE OFTHEYEAR
Southwestern Energy Company
Houston, TX
ENERGY STAR® and Other Climate Protection Partnerships 2007 Annual Report
47
-------
(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
80 billion cubic feet (Bcf) of U.S. methane emissions
annually, or more than 50 percent of U.S. CMM liberated
in a single year.
In 2007, the Coalbed Methane Outreach
Program:
• Reduced emissions of methane by an estimated
2.0 MMTCE. These results include those from about
20 projects that captured and used methane from
some 30 closed U.S. coal mines.
• Worked in cooperation with CONSOL Energy and
DOE to support the successful commissioning and
operation of a technology demonstration project to
mitigate methane emissions from diluted mine
ventilation air. This is the first demonstration of its kind
in the United States. This test-scale demonstration is
being conducted at a closed mine in West Virginia to
simulate active mine conditions.
• Promoted CMM recovery and utilization at closed
underground mines and active surface mines by
developing a database of candidate mines and
preparing case studies of successful projects.
• Organized a national conference to address the
opportunities and challenges of CMM project
development in the United States, including site visits
to coal mine methane recovery and use projects at
abandoned mines.
• Engaged with officials from leading coal mining and
end-use application companies.
• Performed an economic risk analysis for a coal mine
methane recovery and use project in the western United
States to assess various end-use options.
What to Expect in 2008 and Beyond
In 2008, the Coalbed Methane Outreach Program will:
• Launch tools to assist potential CMM project
developers, including an online model for project
finance and economics.
• Continue supporting the demonstration project on
ventilation air methane mitigation in the United States.
LANDFILL METHANE
OUTREACH PROGRAM
• Update technical reports to provide more accessible
information about technologies for recovering coal
mine methane and using it effectively.
• Directly engage project developers, investors,
technology vendors, and the mining community through
effective outreach events, including a conference and
roundtable.
Landfill Methane Outreach Program
Landfills are the second largest
anthropogenic source of CH4 emissions
in the United States, accounting for
approximately 23 percent of total CH4
emissions in 2006. To reduce emissions
from this sector, EPA launched the Landfill Methane
Outreach Program (LMOP) in 1994 to facilitate 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 (see Figure 30).
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, decision-making software
for evaluating project economics, a database of more
than 540 candidate landfills, a project development
handbook, and energy end-user analyses.
Over the past 13 years, LMOP has assisted approximately
360 projects (see Figure 31) that reduced methane
emissions from landfills and avoided C02 emissions
amounting collectively to about 36.0 MMTCE. These
efforts are partially responsible for the 16-percent
decrease in methane emissions from landfills since 1990.
In 2007, the Landfill Methane Outreach
Program:
• Reduced methane emissions by 5.2 MMTCE by
assisting in the development of 30 new LFGE projects
and 20 project expansions.
• Welcomed 108 new partners, increasing participation
by 18 percent and bringing the total to more than
700 LMOP partners.
48
-------
METHANE PROGRAMS
FIGURE 30. Direct use and electric capacity of LMOP-assisted projects
250 _
2001
2002
2003
2004
2005
2006
._ 1,0000
Direct Use • Electric Capacity
2007
FIGURE 31. Landfill gas energy projects across the country
NORTH DAKOTA
SOUTH DAKOTA
NORTH CAROLINA
Increasing Number of Projects Operational in 2007
<5
5-15
////////A
16-20 >20
ENERGY STAR® and Other Climate Protection Partnerships 2007 Annual Report
49
-------
• Provided technical assistance to more than 40 corporations,
helping them identify opportunities to advance LFGE
as a reliable, low-cost source of energy. Over the past
3 years, this technical assistance has included
performing over 80 cost analyses, conducting 70 locator
searches used to match end-users and landfills, and
running models for 40 landfill gas recovery projects.
• Highlighted a dozen landfills to attract investment
opportunities during the 11th Annual LMOP Conference
and Project Expo. Over 500 people attended the
conference at which EPA Administrator Stephen L.
Johnson gave the keynote address.
• Garnered public attention for LMOP partners and LFGE
projects, which were featured by numerous media
outlets, including CNN, The Wall Street Journal, The
New York Times, and The Boston Globe.
• Launched several new LMOP partner tools and
resources: an update to the funding guide, five project
profiles to highlight the 2007 award recipients, and an
updated boiler fact sheet.
• Recognized the outstanding accomplishments of four
landfill methane partners and three exemplary projects
at the 11th Annual LMOP Conference and Project Expo
(see Table 24).
What to Expect in 2008 and Beyond
In 2008, the Landfill Methane Outreach Program will:
• Assist in the development of more than 40 new
LFGE projects.
• Expand efforts to promote the benefits of LFGE to
economic development offices, emphasizing job
creation and tax revenue opportunities for states and
communities.
• Host the 12th Annual LMOP Conference, Project
Expo, and Awards Ceremony to showcase the top
LMOP Partners and projects and discuss the latest
industry trends.
• Update the LMOP Project Development Handbook
and Web site.
FLUORINATED GAS PROGRAMS
Many fluorinated gases (F-gases), such as
perfluorocarbons (PFCs), hydrofluorocarbons (HFCs),
nitrogen trifluoride (NF3), and sulfur hexafluoride (SF6),
trap substantially more heat in the atmosphere than does
C02 on a per mass basis (see Table 21, p. 45). In addition,
some of these gases can have very long atmospheric
lifetimes compared with C02. As a result, F-gases possess
very high global warming potentials (GWPs).
Emissions of many F-gases occur as byproducts of
U.S. industrial operations. To develop cost-effective
operational improvements that will reduce these
emissions, EPA has worked closely with key industries to
create and manage a suite of partnership programs.
Three of these industries are implementing agreements to
reduce emissions under the President's Climate VISION
(Voluntary Innovative Sector Initiatives: Opportunities
Now) plan (see Table 25, p. 53). Despite the potential for
sizable growth in F-gas emissions, EPA's partner industries
are expected to maintain their emissions substantially
below 1990 levels through the year 2012 thanks to the
emissions reduction strategies developed by EPA's
partnerships (see Figure 33, p. 53). Greenhouse gas
emissions reductions across these programs totaled
13.8 MMTCE in 2007 (see Table 26, p. 53).
The Voluntary Aluminum Industrial
Partnership (VAIP)
The Voluntary Aluminum
Industry Partnership (VAIP)
program was launched in
1995 as a joint effort between
EPA and the U.S. primary aluminum industry to reduce
perfluorocarbon (PFC) emissions from aluminum
production. In 2003, the aluminum industry committed to
reducing direct carbon intensity by 53 percent from 1990
levels by 2010 in support of the Climate VISION plan. The
plan 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 2007, the Voluntary Aluminum Industrial
Partnership:
• Reduced 2.5 MMTCE in direct greenhouse gas
emissions, which represents reduced PFC emissions of
50
-------
METHANE PROGRAMS
TABLE 24. 2007 Landfill Methane Outreach Program Awards
PROJECT OF THE YEAR
Greentree Landfill Gas Energy Project
Kersey, PA
PROJECT OF THE YEAR
Iris Glen Landfill Gas Energy Project
Johnson City, TN
PROJECT OF THE YEAR
Southeastern Chester County Refuse Authority (SECCRA)
Landfill Gas Energy Project
Chester County, PA
INDUSTRY PARTNER OF THE YEAR
Ameresco
Framingham, MA
COMMUNITY PARTNER OF THE YEAR
Greater Lebanon Refuse Authority (GLRA) and PPL Energy Landfill
Gas Energy Project
Lebanon, PA
ENDORSEROFTHEYEAR
CIFAL-Atlanta
Atlanta, GA
ENERGY PARTNERSOFTHEYEAR
Alameda Power & Telecom and City of Palo Alto
Watsonville, CA
FIGURE 32. Exporting the success of EPA's domestic Methane Programs: Methane to Markets (M2M)
Methane to Markets
GHG reduction potential
of U.S.-supported projects
2005 2006 2007
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 26 national governments, the European Union, and more than 800 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 M2M
Partnership are led by EPA and involve the collective efforts of six agencies and departments across the
federal government.
In its fourth year, M2M realized significant gains. Ongoing U.S.-supported projects overseas are expected
to result in estimated annual reductions of approximately 24 MMTCO2 (see graph). U.S. contributions
have also leveraged more than $270 million in investment from other partner countries, development
banks, the private sector, and members of the Project Network.
In October 2007, the Partnership held the first Methane to Markets Expo, a forum to share information
on methane project development, technology deployment, financing, and policy, in Beijing, China. This
landmark event, co-sponsored by EPA and China's National Development and Reform Commission,
attracted more than 700 participants from 34 countries. The high level of participation demonstrated
widespread international interest and commitment to a growing public-private partnership that cuts
potent greenhouse gas emissions, while promoting the use of clean energy. The Expo featured an
"International Methane Capture Marketplace," which showcased 91 potential methane capture and use
projects in the agriculture, coal, landfill, and oil and gas sectors that will deliver significant clean
development and climate change benefits throughout the world. If fully implemented, these projects are
estimated to yield annual methane emissions reductions of 11.5 MMTCO2 by 2015.
ENERGY STAR® and Other Climate Protection Partnerships 2007 Annual Report
51
-------
more than 75 percent and reduced direct carbon
emissions of more than 53 percent on a per-ton basis
compared to the industry's 1990 baseline.
• Completed a Web-based training module, Anode Effect
Management, for use by pot room operators and
smelter managers.
• Worked with the International Aluminium Institute (IAI)
to update the EPA/IAI PFC Measurement Protocol,
which enables the collection of consistent data from
smelter-specific PFC measurements being completed
around the world.
• Organized a PFC ManagementWorkshop in Beijing,
China, to support the greenhouse gas reduction efforts
by the Aluminum Task Force of the Asia Pacific
Partnership for Clean Development and Climate.
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, 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.13
In 2007, the HFC-23 Emission Reduction Program:
• Reduced emissions by 7.0 MMTCE below what they
would have been had production continued at 1990
emissions intensity levels.
• Completed, in collaboration with the HCFC-22 producers,
a comprehensive data audit that reviewed estimates of
HFC-23 emissions and HCFC-22 production on a plant-
specific basis from 1990 to 2006.
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 aggressive goal set by WSC demonstrates the
semiconductor industry's commitment to climate
protection in the international community. The present
challenge for WSC and EPA 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 2007, the PFC Reduction/Climate Partnership
for the Semiconductor Industry:
• Reduced absolute PFC emissions by 2.4 MMTCE, or
more than 75 percent below business-as-usual (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.
• Worked with partner companies NEC and Qimonda to
evaluate installed PFC abatement devices in full-scale
production settings. The goals of the studies were to
evaluate and validate EPA's proposed standard
measurement protocol and to help partners learn how
their installed emissions control technologies operate
between periodic maintenance.
• Led a collaborative effort to develop a new standard
method for characterizing destruction or removal
efficiency (ORE) of PFC abatement technologies.
• Supported the WSC's negotiation with China to set an
aggressive PFC emissions reduction target by
developing a model to project China's emissions
through 2020 under various goal scenarios.14
52
13 HFC-23 emission intensity is the amount of HFC-23 emitted per kilogram of HCFC-22 manufactured.
For more information, see Bartos SC, et al., 2008.
-------
FLUORINATED GAS PROGRAMS
TABLE 25. Climate VISION* goals for EPA's Fluorinated 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 GOAL
Has committed to achieving a direct carbon intensity reduction
53% from 1990 levels by 2010.
Has committed to eliminating SF6 emissions by the end of 2010.
of
Has committed to reducing absolute perfluorocarbon
emissions by 10% belowthe 1995 baseline level by the end of 2010.
' Voluntary Innovative Sector Initiatives: Opportunities Now
FIGURE 33. Partner actions are projected to maintain emissions of fluorinated gases below 1990 levels through 2012
WITHOUT PARTNER ACTIONS
WITH PARTNER ACTIONS
1990
1995
2000
2005
2010
2012
TABLE 26. Goals and achievements of EPA's Fluorinated 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)
2007 GOAL
99%
2.7
100%
4.9
50-100%
4.7
12.3
2007 ACHIEVEMENT
99%
2.5
100%
7.0
50-100%
4.3
13.8
2008 GOAL
99%
2.7
100%
4.7
50-100%
5.9
13.3
* 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 2007 Annual Report
53
-------
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.
Since 1999, EPA has partnered with several electric
utilities in 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.
Members of the partnership represent 46 percent of the
total U.S. transmission system.
In 2007, the SF6 Emissions Reduction
Partnership for Electric Power Systems:
• Reduced emissions by 1.7 MMTCE, bringing average
SF6 emissions rates down to 5.4 percent of the total
equipment nameplate capacity.
• Recruited four new companies into the Partnership:
City of Palo Alto Utilities, Oglethorpe Power, PNM
Resources, and \JCTransmission.
• Partnered with service providers to complete two
training Webcasts on gas inventory management and
monitoring leaks.
• Continued to work with partners to update SF6
reduction goals through the year 2012.
• Recognized two partners—MidAmerican Energy and
Southern Company—for their significant emissions
reductions and their exemplary participation in the
Partnership.
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
Sft Emission Reduction
Partnership for the Magnesium Industry
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 2007, the SF6 Emission Reduction Partnership
for the Magnesium Industry:
• Reduced SF6 emissions equivalent to 0.18 MMTCE.
2007 was the eighth year in which EPA collected
annual SF6 emissions reports from magnesium
industry partners.
• Organized and led the 3rd International Melt Protection
Users Group Round Table in conjunction with the 2007
Annual World Magnesium Conference in Vancouver,
British Columbia. More than 25 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 fourth study of alternative melt
protection technologies and associated air emissions.
Partner company MagReTech hosted the study. EPA's
evaluation of cover gas alternatives included
quantification of cover gas destruction values to better
determine actual emissions rates.
• Maintained U.S. industry participation in the
partnership, representing 100 percent of primary
magnesium production and 80 percent of domestic
casting and recycling capacity.
• Announced that two partner companies—Meridian
and MagReTech—have initiated SF6 phase-out
projects to transition to alternative cover gases.
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.15 Additionally, refrigerant emissions
contribute more than 8 MMTCE annually.16
54
For more information, see Andersen, S., et al., 2004.
IK
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.
-------
FLUORINATED GAS PROGRAMS
The global partnership formed in 1998 among the Society of
Automotive Engineers (SAE), the Mobile Air Conditioning Society
Worldwide, and EPA to reduce the climate impacts of mobile air
conditioning (MAC) systems now includes most of the world's
vehicle manufacturers and their suppliers, environmental and
industry 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 MAC 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 MAC system design, operation,
and maintenance.
The partnership is now working to meet ambitious, quantitative
goals announced in 2004 to reduce air conditioning fuel
consumption by at least 30 percent and cut refrigerant
emissions by 50 percent.
FIGURE 34. Over the lifetime of a vehicle, an IMAC*
system will save more than $900 and prevent almost
5,000 Ibs of greenhouse gas emissions
,-6000
-5000
_4000 2
CM
- 3000 ES
|- 2000 >
DOLLARS SAVED
GREENHOUSE GAS
EMISSIONS AVOIDED
U 1000
12 34 56 7 8 9 10 11 12 13 14 15 16
LIFETIME OF VEHICLE (YEARS)
* Improved Mobile Air Conditioning (IMACI systems leak 50% less and are 30% more
efficient than standard systems. Due to their leak-tight design, IMAC systems do not
require the refrigerant recharging that regular mobile AC systems do.
In 2007, the Mobile Air Conditioning Climate
Protection Partnership:
• Published the Global Refrigerants Energy & Environmental
Mobile Air Conditioning Lifecycle Climate Change
Performance—GREEN-MAC-LCCP®17 The tool allows
environmental and industry experts to compare alternative
MAC refrigerants for the best climate performance.
• Issued a government-industry consensus report on how
HFC-152a can be safely and efficiently used in MACs with
secondary-loop technology and published guidelines for
efficient secondary-loop HFC-152a MAC design.
• Formed an industry and government expert team to develop
safety recommendations for R744, the industry term for C02-
based vehicle air conditioners.
What to Expect in 2008 and Beyond for the
Fluorinated Gas Programs
The fluorinated 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.
• Continue recruiting companies to participate in the SF6
Emissions Reduction Partnership for Electric Power Systems
and training partners to ensure the collection and reporting
of high quality data by electric power partners.
• Evaluate the technical feasibility and cost of continuous
emissions monitoring (CEM) of F-gases from the electronics
industry.
• Support efforts of magnesium partners to eliminate emissions
of SF6 by demonstrating alternative melt protection technologies
for primary producers and secondary ingot casters.
• Announce plans in 2008 to introduce new AC technology
using refrigerants with low global warming potentials.
• Translate the Web-based training module, Anode Effect
Management, into other languages to facilitate global PFC
emissions reduction efforts.
• Launch a PFC Management Demonstration Project in China
to support efforts to reduce PFC emissions by the Asia
Pacific Partnership for Clean Development and Climate.
China is the largest global producer of primary aluminum.
• Maintain active partnerships with HCFC-22 chemical
manufacturers to continue to reduce emissions of HFC-23.
" To view the tool, please visit http://epa.gov/cppd/mac/compare.htm.
ENERGY STAR® and Other Climate Protection Partnerships 2007 Annual Report
55
-------
DEMONSTRATING PROGRESS: MEASURING RESULTS OF THE
\ CLIMATE PROTECTION PARTNERSHIP PROGRAMS
EPA's climate protection programs are an important
component of the U.S. government's strategy to address
climate change; they are expected to contribute about
70 percent of the emissions reductions necessary to
reach the President's greenhouse gas intensity
improvement goal in 2012. As such, EPA is committed to
documenting quantifiable program results and using
well-established methods to estimate the benefits of its
programs. For each program, EPA has a robust process
in place to regularly review and improve the program
evaluation approaches.
The approaches used for each specific program are
summarized in the sections below. They vary by program
strategy, sector, availability of data, and market
characteristics. In order to present the most realistic
estimates of program benefits, EPA employs a common
analytical framework across all of the individual program
approaches:
• The benefits discussed represent the results
attributable to EPA efforts above pre-existing trends
or BAU scenarios.
• Program methods address data quality, potential
double counting with other EPA programs, free
ridership, the efforts of third-party actors, and other
program-specific market effects.
• Where marginal uncertainty exists, EPA uses the best
available information and best practices thatyield
conservative benefit estimates.
• Cumulative estimated benefits reflect the stream of
energy savings that will persist through 2017 due to
investments made through 2007. For this analysis, EPA
assumes no new investments will be made through its
programs in 2008 or beyond.
• Financial benefits are placed in present value terms.
Environmental and financial benefits for 2000 to 2007
are summarized in Table 1 on p. 3. The historical
environmental benefits and cost effectiveness of these
programs are summarized on the next page (see Table 27
and Figure 35). The information presented in this 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.
ENERGY STAR
Through the ENERGY STAR program, EPA helps U.S.
businesses and consumers save money and reduce
greenhouse gas emissions by labeling energy-efficient
products, raising the bar of energy efficiency in new home
construction, and encouraging superior energy
management practices in the commercial and industrial
sectors. The methods for estimating the benefits of each
of these strategies are described below.
Products
• Sales of products due to the ENERGY STAR program
are determined as those above and beyond
established BAU purchases of these products.18
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 they
typically reflect increasing market shares for
efficient products and increasing product
efficiencies overtime.
• Applying a conservative estimate of the effect
of market transformation to account for EPA efforts
when product specifications are revised and
qualified product shipments fall as manufacturers
transition to the new specification.
• 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.
56
For more details on many aspects of this method, see Sanchez 2008 and Weber 2000.
-------
DEMONSTRATING PROGRESS
TABLE 27. Overview of EPA's 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
C02
C02
KEY
SECTOR(S)
Commercial,
Industrial
Residential,
Commercial, Industrial
State
Government
SCOPE OF
PARTNERS
AS OF 2007
155
12,000
15
GHG REDUCTIONS*
2000 2001 2002 2003 2004 2005 2006 2007
Climate Leaders' reductions are reflected
in the data shown for other programs.
15.2 17.7 21.3 25.0 28.5 32.2 36.1 42.4
N/A N/A N/A
CLEAN ENERGY SUPPLY
Green Power
Combined Heat
and Power
C02
C02
State & Local
Government,
Commercial, Industrial
Commercial,
Industrial
850
200
N/A N/A 0.6 1.0 2.0 3.2 3.7 4.8
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
700
4.1 4.8 5.7 6.0 7.9 10.1 9.4 10.2
2.1 2.3 1.7 1.7 1.9 2.4 2.5 2.0
3.2 3.7 3.9 4.1 4.4 4.5 4.8 5.2
FLUORINATED GAS PROGRAMS
Voluntary Aluminum
Industrial Partnership
HFC-23 Partnership
Stewardship
Programs
Mobile Air
Conditioning (MAC)
Partnership
PFCs
HFCs
SF6
PFCs
C02
HFCs
Aluminum
Smelting
Chemical Industry
Magnesium
Production,
Semiconductor
Manufacturing,
Electric Power
Systems
MAC Industry
99% 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 2.5
4.7 5.1 4.5 6.1 6.4 6.2 7.0 7.0
0.8 0.8 1.3 1.8 3.1 3.0 3.8 4.3
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
FIGURE 35. EPA programs are highly cost-effective mechanisms for reducing greenhouse gas emissions
EPA's climate protection programs are a very cost-effective approach for
reducing U.S. greenhouse gas emissions. Moreover, it is clear from
sources such as the IPCC's Fourth Assessment Report and McKinsey's
recent study that there are still great untapped opportunities for these
programs to capture—meaning they will continue to be cost-effective far
into the future (see Figure 5, p. 9). Every federal dollar spent on these
partnership programs through 2007 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.
ENERGY STAR® and Other Climate Protection Partnerships 2007 Annual Report
57
-------
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.
• 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.
• 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.19 All energy bill calculations use national
sector-specific fuel prices.
• Avoided emissions of greenhouse gases for 2007 are
determined using marginal emissions factors for C02
based on factors established as part of the U.S.
government's reporting process to the UN Framework
Convention on Climate Change, as well as historical
emissions data from EPA's eGRID database.20 For
future years, EPA uses factors derived from energy
efficiency scenario runs of the integrated utility
dispatch model, Integrated Planning Model (IPM®).21
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 specification 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 bill
savings is 30 years.
• Peak power savings and avoided emissions of
greenhouse gases are determined using approaches
similar to those described for products.
Commercial Buildings
• Annual electricity and natural gas savings are
determined based on a peer-reviewed methodology
developed for the commercial building sector.22 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, other federal programs—such as DOE's
Rebuild and Federal Energy Management Program
(FEMP)—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 demand-side management(DSM) and
market transformation programs. The methodology used
for 2007 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.23
• 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.
'" Calculated using a 7% discount rate and 2007 perspective.
20 For more details on eGRID, see U.S. EPA, 2007.
21 For more details on IPM, see U.S. EPA, 2006.
For more details on many aspects of this method, see Horowitz, M.J., 2007 and 2008.
58
For more details on many aspects of this method, see Horowitz, M.J., 2007.
-------
• 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
C02 as with products.
Industry
Annual industrial electricity and natural gas savings are
determined using a peer-reviewed methodology similar to
that used for the commercial sector.24 The methodology
distinguishes savings due to ENERGY STAR from those
due to utility-run DSM programs and other market
transformation programs such as DOE's Industrial
Technology Program (ITP). Greenhouse gas emissions are
calculated using marginal C02 emissions as with products.
The Clean Energy Supply Programs
Combined Heat and Power (CHP) Partnership
The CHP Partnership dismantles the market barriers
stifling investment in environmentally beneficial CHP
projects. 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 onsite
CHP. Avoided emissions of greenhouse gases from more
efficient energy generation are determined using marginal
emissions factors derived from energy efficiency scenario
runs of 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.
DEMONSTRATING PROGRESS
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 benefits between this and
other partnerships by having program staff meet annually
to identify and resolve any overlap issues.
Green Power Partnership
The Green Power Partnership boosts supply of clean
energy by helping U.S. businesses purchase electricity
from green generation sources. As a condition of
partnership, program partners submit data annually on
their purchases of qualifying green power products.
These data are screened and any issues resolved.
Avoided emissions of greenhouse gases are determined
using marginal emissions factors for C02 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.
For more details on many aspects of the previous methods, see Horowitz, M.J., 2004 and 2001.
ENERGY STAR® and Other Climate Protection Partnerships 2007 Annual Report
59
-------
The Methane Programs
EPA's methane programs facilitate recovering methane
from landfills, natural gas extraction systems, agriculture,
and coal mines as well as using methane as a clean
energy resource. The expenditures used in the program
analyses 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.
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.
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 each mine.
The Fluorinated Gas Programs
Due to the small pool of potential partners for the F-gas
programs, 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 BAU 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.
60
-------
DEMONSTRATING PROGRESS
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 BAU baseline that uses the industry's
1990 emissions 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
EPA's Environmental Stewardship Programs include the
PFC and SF6 Electric and Magnesium Reduction
Partnerships. 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 designated third party.
Reductions are calculated by comparing current
emissions to a BAU 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
is identified based on a detailed review of program
activities and industry-specific information.
ENERGY STAR® and Other Climate Protection Partnerships 2007 Annual Report 61
-------
FIGURES
FIGURE 1. Greenhouse gas emissions reductions exceed 75 MMTCE—Equivalent to emissions
from 52 million vehicles 3
FIGURE 2. ENERGY STAR benefits continue to grow 3
FIGURE 3. Potential for additional greenhouse gas reductions from EPA Climate Partnership Programs 7
FIGURE 4. International Climate Protection Awards 7
FIGURE 5. Two new reports highlight the critical role of energy efficiency and clean energy as low-cost
opportunities for greenhouse gas emissions reductions 9
FIGURE 6. U.S. C02 emissions by sector and non-C02 gases by percent of total GHGs 11
FIGURE 7. U.S. electricity generation by fuel type 11
FIGURE 8. The 155 Climate Leaders by sector 13
FIGURE 9. Keeping ENERGY STAR strong for the future 15
FIGURE 10. ENERGY STAR Awards 17
FIGURE 11. More than 2.5 billion ENERGY STAR qualified products purchased since 1992 19
FIGURE 12. Awareness of ENERGY STAR growing in the United States 19
FIGURE 13. National bus tour helps ENERGY STAR campaign reach millions 21
FIGURE 14. Home Performance with ENERGY STAR spreads across the country 21
FIGURE 15. ENERGY STAR qualified new homes gaining market share 23
FIGURE 16. 840,000 homes nationwide bear the ENERGY STAR 23
FIGURE 17. More than 4,000 buildings have earned the ENERGY STAR 25
FIGURE 18. ENERGY STAR Challenge participants 25
FIGURE 19. Commercial building rating and labeling activity gains momentum 27
FIGURE 20. 10 percent of commercial square footage is rated 27
FIGURE 21. Amount of rated floor space by state 27
FIGURE 22. EPA reports that improving energy efficiency in U.S. data centers could save $4 billion annually 29
FIGURE 23. Energy Strategy for the Road Ahead 33
FIGURE 24. Climate Choice targets early adopters and environmentally motivated consumers 35
FIGURE 25. Green Power purchases and avoided greenhouse gas (GHG) emissions almost doubled in 2007 37
FIGURE 26. Combined heat and power capacity by state as of 2007 39
FIGURE 27. Tools and resources for states 41
FIGURE 28. Partner actions are projected to maintain methane emissions below 1990 levels through 2012 45
FIGURE 29. Natural Gas STAR cumulative greenhouse gas emissions reductions and gas savings 47
FIGURE 30. Direct use and electric capacity of LMOP-assisted projects 49
FIGURE 31. Landfill gas energy projects across the country 49
FIGURE 32. Exporting the success of EPA's domestic Methane Programs: Methane to Markets (M2M) 51
FIGURE 33. Partner actions are projected to maintain emissions of fluorinated gases below 1990 levels through 2012 . .53
FIGURE 34. Over the lifetime of a vehicle, an IMAC system will save more than $900 and prevent
almost 5,000 Ibs of greenhouse gas emissions 55
FIGURE 35. EPA programs are highly cost-effective mechanisms for reducing greenhouse gas emissions 57
62
-------
TABLES
TABLE 1. Annual and cumulative benefits from partner actions through 2007
(in billions of 2007 dollars and MMTCE) 3
TABLE 2. ENERGY STAR key program indicators, 2000 and 2007 5
TABLE 3. Long-term greenhouse gas reduction goals for EPA Climate Partnership Programs (MMTCE) 7
TABLE 4. Market barriers addressed by EPA's Climate Partnership Programs 11
TABLE 5. Climate Leaders key program indicators for 2004 - 2007 (cumulative) 13
TABLE 6. Seven Climate Leaders achieve their climate protection goals in 2007 13
TABLE 7. Key resources of Climate Leaders Program 13
TABLE 8. ENERGY STAR program achievements exceed goals in 2007 15
TABLE 9. Average energy savings of ENERGY STAR qualified products 16
TABLE 10. ENERGY STAR residential product specifications added, revised, and in progress 19
TABLE 11. ENERGY STAR commercial product specifications added, revised, and in progress 29
TABLE 12. Summary of EPA's ENERGY STAR Industrial Focuses 31
TABLE 13. EPA expands ENERGY STAR for superior energy management of industrial plants 31
TABLE 14. Findings of the Climate Technology Initiative Conference 35
TABLE 15. Greenhouse gas emissions avoided by EPA's Clean Energy Supply Programs (MMTCE) 37
TABLE 16. EPA recognizes 17 leading Green Power partners in 2007 37
TABLE 17. 2007 ENERGY STAR Combined Heat and Power Awards 39
TABLE 18. Clean Energy-Environment State Partnership grows to 15 partners in 2007 41
TABLE 19. 120 organizations have made commitments under the National Action Plan for Energy Efficiency 43
TABLE 20. Resources available in support of the Action Plan's Vision for 2025 goals 43
TABLE 21. Global warming potentials (GWPs) and atmospheric lifetimes of greenhouse gases 45
TABLE 22. EPA's Methane Programs meet and surpass goals 45
TABLE 23. 2007 Natural Gas STAR Awards 47
TABLE 24. 2007 Landfill Methane Outreach Program Awards 51
TABLE 25. Climate VISION* goals for EPA's Fluorinated Gas Programs 53
TABLE 26. Goals and achievements of EPA's Fluorinated Gas Programs 53
TABLE 27. Overview of EPA's Climate Partnership Programs reviewed in this annual report with
greenhouse gas reductions since 2000 57
ENERGY STAR® and Other Climate Protection Partnerships 2007 Annual Report 63
-------
REFERENCES
Andersen, S., Hovland, V. and Rugh, J. 2004. "Significant Fuel Savings and Emission Reductions by Improving Vehicle Air Conditioning: A
Study by the U.S. Department of Energy's National Renewable Energy Laboratory." Presented at the 15th Annual Earth Technologies Forum
and Mobile Air Conditioning Summit, April 15,2004: Washington D.C.
Bartos SC, Nina Kshetry, C. Shepherd Burton. 2008. "Modeling China's Semiconductor Industry Fluorinated Compound Emissions and
Drafting a Roadmapfor Climate Protection." International Journal of Greenhouse Gas Confro/, Vol 2 (4), October: 665-676.
Climate Protection Partnerships Division, U.S. Environmental Protection Agency. 2008. Partner and emissions data for 2007 provided by
individual programs within the Climate Protection Partnerships, Office of Atmospheric Programs.
Energy Information Administration (EIA). 2008a. Annual Energy Outlook 2008 with Projections to 2030. Office of Integrated Analysis and
Forecasting. June. Available online atwww.eia.doe.gov/oiaf/aeo/index.html (DOE/EIA-0383(2008)).
EIA. 2008b. Annual Energy Review 2007. Office of Energy Markets and End Use. June. Available online at
www.eia.doe.gov/emeu/aer/contents.html (DOE/EIA-0384(2007)).
EIA. 2007. Electric Power Annual with data for 2006. October. Available only online at www.eia.doe. gov/cneaf/electricity/epa/epa_sum. html
EIA. 2006. 2003 CBECS Detailed Tables. "Table C4A. Expenditures for Sum of Major Fuels for All Buildings." December. Available online at
http://www.eia. doe. gov/emeu/cbecs/cbecs2003/detailed_tables_2003/detailed_tables_2003. html
Horowitz, M.J. 2008. "Energy Savings from ENERGY STAR for the Commercial Buildings and Industrial Sectors in 2007." Memorandum
to EPA.
Horowitz, M.J. 2007. "Changes in Electricity Demand in the United States from the 1970s to 2003." The Energy Journal, Vol 28, Summer
(3):93-119.
Horowitz, M.J. 2004. "Electricity Intensity in the Commercial Sector: Market and Public Program Effects." The Energy Journal, Vol 25,
Spring (21:115-137.
Horowitz, M.J. 2001. "Economic Indicators of Market Transformation: Energy Efficient Lighting and EPA's Green Lights." The Energy
Journal, Vol.22, Fall (4):95-122.
Interbrand. 2007. Building a Powerful and Enduring Brand: The Past, Present, and Future of the ENERGY STAR Brand. Available online at
http://www.energystar.gov/ia/partners/downloads/ENERGY_STARBndManf508.pdf
Intergovernmental Panel on Climate Change (IPCC). 2007. Climate Change 2007: Mitigation. Contribution of Working Group III to the Fourth
Assessment Report of the Intergovernmental Panel on Climate Change [B. Metz, O.R. Davidson, PR. Bosch, R. Dave, L.A. Meyer (eds)],
Cambridge University Press, Cambridge, UK, and New York, NY.
IPCC. 1996. Climate Change 1995: The Science of Climate Change.[J.T. Houghton, L.G. Meira Filho, B.A. Callander, N. Harris, A. Kattenberg,
and K. Maskell (eds)]. Cambridge University Press. Cambridge, UK.
Koomey, J., A. Rosenfeld.and A. Gadgil. 1990. Conservation Screening Curves to Compare Efficiency Investments at Power Plants.
Lawrence Berkeley National Laboratory. October. (LBNL-27286).
McKinsey & Company. 2007. Reducing Greenhouse Gas Emissions: How Much at What Cost? Contributors included: J. Creyts, A. Derkach,
S. Nyquist, K. Ostrowski, and J. Stephenson. Available online at www.mckinsey.com/clientservice/ccsi/greenhousegas.asp
Sanchez, M., G.K. Homan, and R.E. Brown. 2008. Calendar Year 2007 Program Benefits for ENERGY STAR Labeled Products. Lawrence
Berkeley National Laboratory.
U.S. Census Bureau. 2006. "Statistics for Industry Groups and Industries: 2005." Annual Survey of Manufacturers. November.
U.S. Census Bureau. 2005. "Statistics for Industry Groups and Industries: 2004." Annual Survey of Manufacturers. December.
U.S. Environmental Protection Agency (U.S. EPA). 2008a. Inventory of Greenhouse Gas Emissions and Sinks: 1990-2006. Office of
Atmospheric Programs. April. (EPA430-R-08-005).
U.S. EPA. 2008b. National Awareness of ENERGY STAR for 2007: Analysis of 2006 CEE Household Survey. Office of Air and Radiation,
Climate Protection Partnerships Division. Available online atwww.cee1.org/eval/2007_ES_survey_rep.pdf
U.S. EPA. 2007. Emissions & General Resource Integrated Database 2006 Version 2.1 (Egrid2006 Version 2.1). April. Available online at
www.epa.gov/cleanenergy/energy-resources/egrid/index.html.
U.S. EPA. 2006. "Documentation for EPA Base Case 2006 (V.3.0) Using the Integrated Planning Model." November. Available online at
www.epa.gov/airmarkets/progsregs/epa-ipm/index.html/docs
Webber, C.A., R.E. Brown, M. McWhinney, and J.G. Koomey. 2000. "Savings estimates for the ENERGY STAR voluntary labeling program."
Energy Policy 28 (2000) 1137-1149.
64
-------
&EBV
United States
Environmental Protection Agency
Air and Radiation 6202J
EPA430-R-08-015
www.epa.gov
October 2008
-------
-a a
CD =(;
s >
n m -a -n
| ~D O ^-
00 T> en en
^ ^ o
CQ Q
CD £D
5 8
CD =
CD
"D
QJ
------- |