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                            Responsible Appliance
                              Disposal Program

2010
Annual Report

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Recover Recycle Reclaim
                                                                         Responsible Appliance
                                                                         L Disposal Program
                                                                   '.RAD
The U.S. Environmental Protection Agency's (EPA) Responsible Appliance Disposal (RAD) Program
is a partnership launched in October 2006 to protect the ozone layer, reduce emissions of
greenhouse gases, and benefit communities. The RAD Program recognizes partners that ensure
the disposal of refrigerant-containing appliances by using the best environmental practices available.
The RAD Program invites utilities, retailers, manufacturers, local governments, universities, and
other qualifying organizations to become partners. The RAD Program also invites states to become
RAD affiliates to promote the program to potential partners and increase environmental benefits for
their states and communities.

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Overview

Through the RAD Program, partners reduce emissions of ozone-depleting
substances (ODS) and greenhouse gases (GHGs) by recovering appliance
foam and refrigerant. The program also leads  to other environmental benefits
by promoting the safe handling of hazardous  materials and encouraging the
recycling of durable materials—which protects human health, saves landfill
space, and reduces energy consumption.

RAD partners achieve these benefits by collecting old refrigerant-containing appliances
from consumers and responsibly disposing of them with the help of an appliance recycler.
The appliance recycler  uses best environmental practices to ensure that:

  •  Refrigerant is recovered and reclaimed or destroyed;
  •  Insulation foam is  recovered and destroyed, or the foam-blowing agent is recovered
    and reclaimed;
  •  Metals, plastic, and glass are recycled; and
  •  Polychlorinated biphenyls (PCBs), mercury, and used oil are recovered and disposed of
    using best environmental practices.

In addition, some RAD partners also reduce energy consumption by encouraging appliance
owners to permanently retire old, inefficient units. For example, many utility partners offer a
monetary reward for the pick-up of old, working refrigerators.

The benefits of the RAD Program are experienced on both global and local levels.
Specifically, the avoided emissions of ODS and GHGs result in global  environmental benefits,
while the prevention of appliance dumping and the release of hazardous/toxic materials
provides local environmental benefits to communities.

This annual report presents the RAD Program environmental benefits for 2010.
                                                                                              Appliance Disposal
                                                                                           Under the RAD Program
     Consumers
             I
               Retailers
               Utilities
Local Governments

Manufacturers
              Other
Appliance Recycle
Foam
Refrigerant
              Reclamation
              Destruction
              Reclamation
Metals, Plastics,
Glass 	*• Recycling

PCBs, Used 0 ,
Mercury 	*• Proper
              Disposal
                                                                                                          2010 Annual Report

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The Need for the  RAD  Program

EPA estimates that 9.4 million refrigerators and freezers, 4.5 million window
air-conditioning units, and 950 thousand dehumidifiers were disposed of in the
United States in 2010.

Because these appliances contain ODS, GHGs, hazardous substances, and recyclable
materials, disposing of them using best environmental practices results in significant
benefits for the environment and human health.  Federal law requires that prior to disposal
or recycling of appliances (1) all refrigerant be recovered, and (2) universal waste (e.g.,
mercury), used oil, and PCBs be properly managed and stored. However, the laws do not
require the recovery of appliance foam, which represents a significant source of ODS and
GHG emissions.
       Characteristics of Gases Used as Refrigerants and
       Foam-Blowing Agents in Appliances Reaching End-of-Life
           Compound
                         Global Warming   Ozone Depletion   Predominant Use
                         Potential (GWP)*    Potential (OOP)
                             in Appliances
              CO,
             CFC-11
             CFC-12
            HCFC-22
           HCFC-141b
            HFC-134a
4,750
10,900
 1,810
 725
1,430
0.055
 0.11
                Foam
              Refrigerant
Refrigerant
  Foam
              Refrigerant
       * GWP calculations are based on the 100-year direct GWPs provided in the Intergovernmental Panel on Climate Change
        Fourth Assessment Report (2007). GWP values are relative to carbon dioxide (C02), which has a GWP of 1.

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RAD  Partners and Affiliates
Thirty-four partners and affiliates reported their accomplishments for the
RAD Program from January 1, 2010, through December 31, 2010:
    American Electric Power (OH)
    Arizona Public Service (AZ)
    Appliance Smart (GA, MN, OH, TX)
    Austin Energy (TX)
    Baltimore Gas and Electric Company (MD)
    Best Buy (Nationwide)
    City of Burbank Water & Power (CA)
    City of Palo Alto Utilities (CA)
    City of Fort Collins Utilities (CO)
    City of Richland Energy Services (WA)
    Commonwealth Edison (IL)
    Consumers Energy (Ml)
    Dayton Power & Light Company (OH)
    Energy Trust of  Oregon (OR)
    Georgia Power (GA)
    Great River Energy  (MN)
    Hoosier Energy (IN)
    Idaho Power (ID)
Nebraska Public Power District (NE)
NV Energy (NV)
Pacific Gas & Electric Company (CA)
PacifiCorp (CA, ID, UT, WA, WY)
PNM (NM)
Puget Sound Energy (WA)
Sacramento Municipal Utility District (CA)
Salt River Project (AZ)
San Diego Gas & Electric (CA)
Sears Home Services (Nationwide)
Silicon Valley Power (CA)
Snohomish County Public Utility District
No.  1 (WA)
Southern California Edison (CA)
Vectren Energy Delivery (IN, OH)
West Virginia  Department of
Environmental Protection (WV)
WPPI Energy (Wl)
Program Growth

The RAD Program has grown
significantly over the last 4 years.
In the last year alone, the program
has expanded from having 23 to
a total of 34 partners and affiliates.
   35
   30
 0)
 -Q
 E
       2007
             2008
                    2009
                          2010
          2010 Reporting Partners and Affiliates
          2009 Reporting Partners
         • 2008 Reporting Partners
         • 2007 Reporting Partners
    's RAD Program enables WPPI Energy to provide a valuable recycling service to its communities that encourages
energy efficiency and demonstrates responsible environmental stewardship. Not only can homeowners achieve
energy cost savings through the program, they can do so with confidence that sustainable practices are being
followed for the removal of their old appliances.^

                                                                —Jake Oelke,WPPI Energy Assistant Vice President of Energy Services
                                                                                                      2010 Annual Report

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Recover  Recycle   Reclaim
              -Ik
          dep
  west Virginia department of environmental protection
   West Virginia is proud to
   be the first state to join the
   RAD Program as a state
   affiliate, and to promote
   the reduction of ozone-
   depleting substances and
   greenhouse gases from old
   appliances through the West
   Virginia Energy Efficiency
   Appliance Rebate Program
   (WVEEARP). The publicity we
   have received from the RAD
   Program has  helped spread
   awareness about appliance
   recycling efforts within
   our state.
               — Gregory E. Adolfson,
                 Sustainability Officer,
            West Virginia Department of
      Environmental Protection (WVDEP)
RAD State Affiliates
In 2010, the RAD Program welcomed West Virginia as its first RAD state
affiliate. State affiliates were invited to help promote the RAD Program to
potential partners within their state through information dissemination and
strategic outreach.
The role of a state affiliate is to support existing, new, and potential partners within their states
and communities by:
  •  Serving as a technical clearinghouse/resource on responsible appliance disposal
    program development and implementation within the state;
  •  Providing partner recognition for achievement through press releases, articles,
    and awards; and
  •  Exchanging information on program development/implementation and best practices
    with program partners.
By participating in the program, West Virginia aimed to reduce emissions of ODS and
GHGs, as well as the number of retired appliances entering landfills and the quantity of
toxic chemicals released within their communities.
The RAD Program welcomes other states to participate.
                                                       New River Gorge Bridge, West Virginia
    2010 Annual Report

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RAD Program  in  Indian  Country
In 2010, the RAD Program conducted a small-scale refrigerator and freezer
recycling program designed to benefit the tribal community of Yakama Nation.
Through this short-term program, 192 refrigerators and freezers were collected and recycled
using best practices. The pilot program achieved ozone benefits of 95 ODP-weighted
kilograms (kg), climate benefits of 717 metric tons of carbon dioxide equivalent (MTC02e),
and the recycling of 30,336 Ibs. of durable materials. In addition, the  program provided
a number of social and economic benefits to the Yakama Nation community, including
short-term employment, financial incentives in return for refrigerator disposal, and
education about proper waste disposal.
Number of Units Processed
Refrigerators
Stand-Alone Freezers
Ozone Benefits (ODP-weighted kg)
Climate Benefits (MTC02e)
Durable Materials Recycled (Ibs.)
192
169
23
95
717
30,336
Hazardous Substances Properly Treated
Used Oil (gal.)
Other Hazardous Components
15
11
                                       Yakama Nation Staff with Collection Truck
The RAD pilot program
resulted in significant
pollution prevention
and avoidance of illegal
refrigerator dumping,
as well as economic
benefits for the Yakama
Nation community.
It also increased
public awareness in
theYakama Nation
about proper waste
management.
  — Loretta Zammarchi,Yakama
Nation Solid Waste Department
                                                                                                  2010 Annual Report   6

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Recover  Recycle  Reclaim
                                           Results
                                           In 2010, the RAD Program's 33 partners collected and processed a total of
                                           735,442 refrigerant-containing appliances, including:
                                               •  669,523 refrigerators
                                               •  63,387 stand-alone freezers
                                               •  2,376 window air-conditioning units
                                               •  156 dehumidifiers

                                           By disposing of these units using the best available practices, RAD partners have helped
                                           protect the ozone layer, reduce GHG emissions, reduce energy use, and increase recycling.
                                           The benefits of these practices are described in the following pages.
      >f Buy has helped consumers recycle old appliances
   and electronics for many years. Our decision to partner
   with the EPA RAD Program is yet another way we can help
   consumers make responsible choices to dispose of their
   appliances using the best technologies available.
          — Leo Raudys, Senior Director, Best Buy Environmental Sustainability
                                                                        Total Number of Refrigerant-Containing Appliances
                                                                        Processed by RAD Partners, 2007-2010
                                                                           800,000
                                                                           700,000
                                                                           600,000
o 400,000
L,
Q_
« 300,000
c
D
  200,000
  100,000
       0
           2007
2008
2009
2010
    2010 Annual Report

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Stratospheric Ozone  Benefits

RAD partners not only reduce emissions of ODS by recovering and reclaiming
or destroying refrigerant, but they recover and reclaim or destroy foam-blowing
agents, which also deplete the ozone  layer.

Partners recover foam from appliances manually or by using an automated system, and then
reclaim or destroy the foam-blowing agent. Foam destruction is typically performed using
municipal solid waste incinerators (e.g., waste-to-energy facilities) or rotary kiln incinerators.
On average, partners recovered 0.47 Ib. of refrigerant and 0.90  Ib. of foam-blowing agent
from each refrigerator/freezer. Across all equipment types, RAD partners recovered a total of
145,060 Ibs. of CFC and HCFC refrigerant, and 273,504 Ibs. of  CFC and HCFC foam-
blowing agent. By avoiding the release of these refrigerants and foam-blowing agents into
the environment, an estimated 417,798 Ibs. of ODS (151 ODP-weighted metric tons) were
avoided during 2010.

     Refrigerants and Foam-Blowing Agents Reclaimed or Destroyed
     by RAD Partners in 2010
        240,000
        200,000
      o
      o>  160,000
      Q
      T3
      E  120,000
      _
      o
      CD
      DC
      CO
      T3
80,000 —
      £  40,000
                                                   The Importance of Stratospheric
                                                   Ozone Protection

                                                   Since the appearance of an ozone hole
                                                   over the Antarctic in the early 1980s,
                                                   Americans have become more aware of
                                                   the health threats posed by the release
                                                   of ODS.

                                                   These substances decrease the
                                                   atmosphere's natural protection from
                                                   the sun's harmful ultraviolet (UV)  rays,
                                                   which have been linked to major human
                                                   health problems, including skin cancer,
                                                   eye damage, other skin problems
                                                   (e.g., sunburn, premature aging), and
                                                   immune suppression.

                                                   To reverse stratospheric ozone depletion
                                                   and its associated health effects, the
                                                   Montreal Protocol on Substances that
                                                   Deplete the Ozone Layer was signed in
                                                   1987 to phase out ODS production and
                                                   consumption. The Protocol has been
                                                   ratified by 196 countries and will result
                                                   in significant ozone recovery in the 21st
                                                   century, assuming that countries comply
                                                   with its provisions.
                   CFC-12
                   HCFC-22
                  Refrigerant
HFC-134a
CFC-11    HCFC-141b
Foam-Blowing Agent
                                                                                                          2010 Annual Report

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Recover   Recycle   Reclaim
                                                Climate Benefits
Carbon Credits

In February 2010, the Climate Action
Reserve (the Reserve) approved a
project protocol for the destruction of
ozone-depleting substances for carbon
credits. The protocol allows both ODS
refrigerant and foam-blowing agent to
be destroyed at certified U.S. facilities
in exchange for carbon credits. The
revenue that can be generated from
carbon credits  varies based on a
number of factors,  including carbon
price. In 2010,  the price of carbon
offset credits on the Reserve generally
ranged from $5 to $10 per MTC02e.
Based on this price, the destruction
of refrigerant from a single refrigerator
containing CFC-12 may yield an
approximate carbon offset credit
value of $15* under the Reserve—not
accounting for  project costs such as
those associated with  registration,
administration, and verification.
"This assumes a 15% C02e discounting, based loosely on the
 project accounting requirements of the Reserve.
CFCs, HCFCs, and  MFCs contained in appliances are all potent GHGs.

These refrigerants and blowing agents have direct global warming potentials (GWPs) up
to 10,900—meaning that they are up to 10,900 times more effective at damaging the
climate system than C02 on an equal mass basis. Therefore, recovering these compounds,
even in small quantities, can result in significant climate benefits. The recycling of durable
materials from appliances prevents indirect GHG  emissions associated  with the generation
of electricity, which would have otherwise been needed to produce virgin materials.

During 2010, RAD partners achieved the reduction of 1.41 million metric tons of carbon
dioxide equivalent (MMTC02e), which is equivalent to approximately 276,845 passenger
car emissions for one year. Of this, 58% can be attributed to reclaiming  or destroying
refrigerant, 30% to reclaiming or destroying foam-blowing agents, and 12% to recycling
durable materials. Additional climate benefits are realized through energy savings detailed
on the next page.
In 2010, RAD partners achieved
climate benefits equivalent to:
GHG Emissions Avoided by
Responsible Appliance Disposal
                                                Ferrous Metal -|
                                                 Recycling
                                                   6%
                     Other Durable
                   Materials Recycling
                         6%
                                           Foam
                                         Recovery
                                           30%
                                                Source: EPA's Greenhouse Gas Equivalency Calculator. Available
                                                at www.epa.gov/cleanenergy/energy-resources/calculator.html.
                                                *This does not include GHG emissions reductions associated
                                                 with early appliance retirement.
                             Refrigerant
                           — Recovery
                               58%
     2010 Annual Report

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Energy Savings
For utilities, appliance recycling programs can be an important component of a
successful demand side management program.

Replacing old, inefficient refrigerant-containing appliances reduces the amount of electricity
needed to power them and, therefore, the amount of indirect GHG emissions released. In 2010,
appliance recycling programs operated by the 30 RAD utility partners covered a territory of
31.5 million  households across 20 states, representing approximately 27% of U.S. households.
In total, RAD utility partners reduced energy use by more than 3.0 billion kilowatt-hours
(kWh) by removing old refrigerators, stand-alone freezers, window air-conditioning units, and
dehumidifiers from the grid. These energy savings translate to climate benefits of approximately
2.17 MMTC02e and are estimated to have saved consumers $372 million.

RAD Utility Partners Across the United States
Getting rid of a 20-year-old refrigerator
could reduce your electricity bill by over
$115 per year.*
* Actual energy and costs savings will vary by
 equipment model and region.These estimates are
 conservative and are based on national averages
 (ENERGY STAR 2011 Databook).
                                                                                               States with Participating Utilities
                                                                                               States without Participating Utilities
                                                                                                               2010 Annual Report   10

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Recover   Recycle  Reclaim
            J
Metal, Plastic, and Glass
Casing/Refrigerator Shell
    140 Ibs. Metal
    20 Ibs. Plastic
     3 Ibs. Glass

                                  CFC-11
                               Foam Insulation
                                  1.0 Ib.
                   Used Oil
             (May be contaminated)
                   0.07 gal.
PCBs
(May be contained
in capacitor)
Small Quantities

CFC-12
Refrigerant
0.5 Ib.


Mercury-containing
Components
O.OOSIb.

                                                               Other  Environmental Benefits
                                                               In 2010, RAD partners further protected the environment by
                                                               keeping recyclable materials out of landfills and ensuring the
                                                               proper handling of hazardous waste, as shown below.
                                                Materials prevented from going to a landfill:
                                                 • 85.4 million Ibs. of ferrous metals
                                                 • 15.6 million Ibs. of non-ferrous metals
                                                 • 15.1  million Ibs. of plastic
                                                 • 2.3 million Ibs. of glass

                                                Toxic or hazardous materials properly handled:
                                                 • 0.04 million gal. of used oil
                                                 • 45,024 PCB-containing capacitors
                                                 • 41,444 mercury-containing components
                                                                If released into the environment, used oil can leak into groundwater
                                                                and major waterways and pollute drinking water sources. In addition
                                                                to used oil, appliances may contain toxic chemicals and heavy
                                                                metals—namely PCBs from capacitors and mercury from thermostatic
                                                                switches. PCBs are regulated by EPA as toxic substances; they may
                                                                cause cancer and liver damage and can have negative impacts on
                                                                the neurological development of children, the human reproductive
                                                                system, the immune system, and the endocrine system. Mercury is
                                                                toxic and  causes a variety of adverse health effects, including tremors,
                                                                headaches, respiratory failure, reproductive and developmental
                                                                abnormalities, and potentially, cancers.
11    2010 Annual Report

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Increasing Program  Benefits
OverTime

In 2007, nine RAD partners recovered 63,436 Ibs. of refrigerant and
147,740 Ibs. of foam-blowing agent. As of 2010, the program has expanded
to 33 partners and one state affiliate, which have recovered 351,727 Ibs. of
refrigerant and 273,504 Ibs. of foam-blowing agent.
As the program matures, the relative number of units collected with CFC-based refrigerant
and foam-blowing agent is decreasing, while the number with HFC refrigerant and HCFC-
based foam-blowing agent is increasing; this trend will continue into the future, until the full
fleet of older CFC units reaches retirement.
                                                                                            Green Jobs

                                                                                    During the first 4 years, RAD
                                                                                    program activities have employed
                                                                                    over 1,200 people. For every
                                                                                    100,000 refrigerators recycled
                                                                                    using best practices, 64 new
                                                                                    green jobs are created.*
                                                                                    *RAD program estimates based on industry statistics.
Refrigerant and Foam-Blowing Agent Reclaimed or Destroyed by
RAD Partners, 2007-2010
o
CL
               18,235
400,000
350,000
300,000
250,000
200,000
150,000
100,000
         5 515
 50,000 -1—^^=168	|
           2007
            HFC-134a
            HCFC-22
            CFC-12
                            181,346
                   62,848
                 2008      2009
                    Refrigerant
2010
2007
                                            HCFC-141b
                                            CFC-11
2008      2009
Foam-Blowing Agent
2010
                                                                                  GHG Emissions Avoided through
                                                                                  Proper Appliance Disposal by
                                                                                  RAD Partners
                                                                                    —  1,400,000
                                                                                               2007
                                                                                                      2008
                                                                                                            2009
                                                                                                                   2010
                                                           Foam Recovery
                                                           Refrigerant Recovery
                                                                                                       2010 Annual Report    12

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Recover  Recycle   Reclaim
 Partner Recognition

 In return for their efforts,
 RAD partners receive public
 recognition and technical support
 from U.S. EPA.

 For example, U.S. EPA has issued
 several press releases publicly
 recognizing new partners.
 All partners are listed on the
 RAD website.  Partners are also
 given the opportunity to  provide
 case studies of their programs to
 showcase on the RAD website.
 In addition, partners may use the
 RAD logo on their websites and
 other outreach materials.
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                                 Nebraska Public Power District
                                     Always there when you need us
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    SACRAMENTO MUNICIPAL UTILITY DISTRICT
    The Power To Do More.™         Delivering more than power.™
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An EDISON INTERNATIONALS' Company
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13    2010 Annual Report

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Protecting  the  Environment,

One Appliance at a Time

Of all refrigerant and foam types, CFCs present the greatest threat to the
stratospheric ozone layer and climate systems when emitted.

Recently there has been an international transition away from the use of CFCs in the
production of new appliances. But because of the long lifetime of appliances, many of
the appliances being retired today still contain CFCs. Thus, it is critical that efforts to
properly dispose of appliances and minimize emissions be undertaken now—before
the opportunity is  lost.

Although CFCs are no  longer used in the production of new appliances, most new
units sold in the United States today still contain high-GWP refrigerants and foam-
blowing agents that will lead to increased concentrations of GHGs if not properly
handled at end-of-life. Therefore, the importance of the RAD Program in promoting
proper appliance disposal will continue well after the stock of CFC-containing
appliances reaches end-of-life.  By going above and beyond regulatory requirements
to dispose of appliances using best practices and technologies, RAD partners are
doing their part in  protecting the environment.


To learn more, visit:

U.S. Environmental Protection Agency
Stratospheric Protection Division
www.epa.gov/0zone/partnerships/rad
Recover

 Recycle
Reclaim
                                                                                          2010 Annual Report   14

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