ENERGY STAR® and Other

                Climate Protection  Partnerships
                2008 Annual Report
ENERGY STAR
                                     SEPA
                                       United States
                                       Environmental Protection
                                       Agency

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ENERGY STAR® AND OTHER CLIMATE PROTECTION PARTNERSHIPS
2008 ANNUAL REPORT
CONTENTS
Letter from the Administrator	1
Executive Summary	2
     Highlights of 2008	3
     Looking Forward to 2009 and Beyond	7
Introduction to EPA's Climate Protection Programs	9
ENERGY STAR Overview	13
ENERGY STAR Qualified Products	18
ENERGY STAR in the Residential Sector	24
ENERGY STAR in the Commercial Sector	29
ENERGY STAR in the Industrial Sector	34
Climate Leaders	38
Clean Energy Supply Programs	41
     Green Power Partnership	42
     Combined Heat and Power Partnership	44
State and Local Programs and Initiatives	47
     Clean Energy-Environment State Partnership	48
     Clean Energy-Environment Local Network	49
     Clean Energy and Utility Policy Programs	50
Methane Programs	53
     Natural Gas STAR Program	54
     AgSTAR Program	56
     Coalbed Methane Outreach Program	57
     Landfill Methane Outreach Program	58
Fluorinated Greenhouse Gas Programs	61
Demonstrating Progress	67
List of Figures	73
List of Tables	74
References	75
For additional information, please visit our Web sites at www.epa.gov/cppd, www.energystar.gov, www.epa.gov/cleanenergy/
stateandlocal/index.htm, www.epa.gov/methane, and www.epa.gov/highgwp.
NOTE: The data source for all figures and tables in this 2008 Annual Report is EPA's Climate Protection Partnership Programs unless otherwise noted. Historical totals have
been updated based on the most recent available data.

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                                                                                     LETTER FROM THE ADMINISTRATOR
                                                                                                   December 2009
Climate change is the greatest environmental challenge of our time, and effective public-private partnerships are instrumental
in this fight. By bringing together strong incentives, serious commitments, and transparent processes, EPA's voluntary programs
have produced credible and lasting results, and promoted the economic and environmental leadership we need to protect our
planet.

For the past 16 years, EPA has partnered with thousands of organizations across the United States to reduce greenhouse gas
emissions through energy-efficient products  and practices and expanded use of clean energy. Our partners, who range from
Fortune 500 companies to educational institutions, are laying the groundwork for innovative, economy-wide  practices. Together,
we are pioneering change that can improve bottom lines and strengthen the fight against climate  change.

The 2008 accomplishments of EPA's voluntary climate protection programs are significant and set the stage for progress in the
years ahead. Here are just a few highlights:

•  Americans, with the help of ENERGY STAR, saved $18 billion in 2008 on their utility bills and prevented the
   equivalent of greenhouse gas emissions from 29 million vehicles.

•  Since the Green Power Partnership's inception in 2002,  more than 1,000 partners have committed to buying
   more than 16 billion kilowatt-hours of green power each year.

•  Since the Combined Heat and Power Partnership program launched in 2002, more than 260 partners have
   installed more than 4,700 megawatts of new combined heat and power.

•  The partners of EPA's methane and fluorinated greenhouse gas partnership programs used EPA tools and
   resources in 2008 to avoid the equivalent of emissions from more than 23 million vehicles.

•  EPA's corporate commitment program. Climate Leaders, grew 60 percent in 2008 to 250 participants.

ENERGY STAR and EPA's other climate protection programs make clear that climate protection efforts are good for the
environment and good for the economy. EPA will build upon this experience and success of these programs as we continue to
address climate change in aggressive, comprehensive, and common-sense ways.
                                                                          Sincerely,
                                                                          Lisa P.Jackson
                                                                          Administrator
                                                                          U.S. Environmental Protection Agency

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EXECUTIVE SUMMARY
Global climate change is a pressing national and international environmental problem. Meeting this
challenge calls for immediate, proven, cost-effective solutions to establish limits on overall emissions of
greenhouse gases (GHGs) and remove the barriers that hinder investment in low-cost energy efficiency
and clean energy supply options. The U.S. Environmental Protection Agency's (EPA's) climate protection
partnership programs have implemented a comprehensive set of policies and  programs for 16 years—
successfully removing many of those barriers—with outstanding financial and environmental results
and overall program cost-effectiveness (see Table 1 and Figure 1, p. 4).

EPA's climate protection partnerships employ a combination of voluntary standards, outreach and
education, technical assistance, facilitated peer exchange, and recognition for organizations taking
important steps to protect the global environment. As a result of these efforts, many households,
businesses, and other organizations are changing the way they use energy and joining in the fight
against global climate change.

In 2008, EPA's climate protection partnerships once again realized impressive results. The more than
18,000 organizations across the United States that have partnered with EPA in these programs have
achieved significant environmental and economic benefits:

•  Preventing 86 million metric  tons (in MMTCE1) of GHGs—equivalent to the emissions from 57 million
   vehicles—and net savings to consumers and businesses of more than $18 billion in 2008 alone.
•  Preventing more than 1,200 MMTCE cumulatively and net savings to consumers and businesses of
   more than $220 billion over the lifetime of their investments.
•  Investing $65 billion in energy-efficient, climate-friendly technologies.
' 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 700-year time period.

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                                                                                                 EXECUTIVE SUMMARY
 Highlights of 2008
ENERGY STAR®
Through the ENERGY STAR program, EPA continued
to promote energy efficiency across the residential,
commercial, and industrial sectors to help reduce GHG
emissions, the primary cause of global climate change. In
2008, EPA's ENERGY STAR efforts helped Americans:

•  Save about 190 billion kilowatt-hours (kWh)—about
   5 percent of U.S. electricity demand.
•  Prevent the emissions of 45 MMTCEof GHGs.
•  Save $18 billion on their energy bills (see Figure 2, p. 4).
These benefits are more than double those in 2000 (see Table
2, p. 6). Additional ENERGY STAR program highlights, with
notable achievements for 2008 and cumulatively, include:

More Savings to More Consumers through ENERGY STAR
Products
More than 40,000 ENERGY STAR qualified product models
across 60 product categories are produced by more than
2,400 manufacturers and offer consumer savings of as much
as 75 percent relative to standard models.
                                    •  Americans purchased about 550 million ENERGY STAR
                                       qualified products in 2008, bringing the total to more than
                                       2.5 billion since 2000.2
                                    •  EPA increased the stringency of the ENERGY STAR criteria
                                       for seven product categories: set-top boxes, TVs, imaging
                                       products, computers, external power adapters, telephony,
                                       and furnaces.

                                    Raising the Bar for New Home Construction
                                    More than 100,000 new homes—nearly 17 percent of the
                                    U.S. new housing starts—were constructed to meet ENERGY
                                    STAR guidelines in 2008, despite the continued decline in the
                                    housing market. This brought the total number of ENERGY
                                    STAR qualified new homes to nearly 940,000 nationwide.

                                    Improving the Efficiency of Existing Homes
                                    More than 50,000 older homes have been retrofitted through
                                    the whole home retrofit program—Home Performance with
                                    ENERGY STAR—with more than 25 sponsors across the
                                    country now offering this service  program.
TABLE 1.  Annual and Cumulative Benefits from Partner Actions Through 2008 (in Billions of 2008 Dollars and MMTCE)
                             BENEFITS FOR 2008
 PROGRAM
NET SAVINGS
 (BILLIONS)
EMISSIONS
 AVOIDED
 (MMTCE)
                                               CUMULATIVE BENEFITS 1993 - 2018
PV OF BILL    PV OF TECHNOLOGY     PVOFNET
 SAVINGS       EXPENDITURES        SAVINGS
(BILLIONS)       (BILLIONS)         (BILLIONS)
EMISSIONS
 AVOIDED
 (MMTCE)
ENERGY STAR Total
Qualified Products
and Homes
Buildings
Industry
Clean Energy Supply
Programs
Methane Programs
Fluorinated Gas
Programs
TOTAL
$18.0
$10.0
$5.3
$2.7
—
$0.6
—
$18.6
45.0
19.9
18.5
6.6
6.1
20.3
14.8
86.2
$276.3
$138.3
$107.5
$30.5
—
$12.1
—
$288.4
$60.1
$19.2
$33.9
$7.0
N/A
$4.9
N/A
$65.0
$216.2
$119.1
$73.6
$23.5
—
$7.2
—
$223.4
589
265
222
102
82
289
267
1,228
PV:      Present Value
NOTES:   Technology Expenditures include O&M expenses for Methane Programs. Bill Savings and Net Savings include revenue from sales of methane and electricity. Totals may not equal
        sum of components due to independent rounding. For details on cumulative benefits,:
—:      Not applicable
N/A:     Not available
2 Does not include purchases of compact fluorescent bulbs.

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ENERGY STAR and Other Climate Protection Partnerships 2008 Annual Report
FIGURE 1. GHG Emissions Reductions Exceed 85 MMTCE—Equivalent To Emissions From 57 Million Vehicles
   100
o
3.
                                                                                                        Total Fluorinated
                                                                                                        Gas Savings
                                                                                                        Total CH4 Savings

                                                                                                        Total C02 Savings
       2000
                 2001
2002
2003
2004
2005
2006
2007
2008
Saving Energy in Commercial Buildings
Over 2,400 organizations—including more than 300 local
governments—have joined EPA's ENERGY STAR Challenge to
improve the efficiency of the nation's commercial buildings by
10 percent or more as measured by EPA's energy performance
rating system.

•  More than 80,000 buildings, representing over 11.5 billion
   square feet—or 16 percent—of U.S. building space, have
   been assessed for efficiency as an important step in
   targeting improvements.
•  More than twice as many buildings earned the ENERGY
   STAR in 2008 as in the previous year. Overall, more than
   6,200 buildings—representing over one billion square
   feet—have been recognized for top performance. These
   buildings use nearly 35 percent less energy than typical
   buildings.
                                                            Designing Commercial Buildings To Be Efficient
                                                            More than 75 projects achieved Designed to Earn the ENERGY
                                                            STAR, for a cumulative total of 130. Each of these future
                                                            buildings has been designed with the intent of earning the
                                                            ENERGY STAR.

                                                            Saving Energy in the Industrial Sector
                                                            •  EPA engaged the U.S. steel industry to participate in an
                                                               Industrial Focus—the Industrial Focuses now include  16
                                                               major industries—and expanded the industrial program
                                                               to include a total of more than 550 partners working to
                                                               improve their corporate energy management systems.
                                                            •  The number of ENERGY STAR labeled industrial plants
                                                               grew to 45, with the addition of another eight plants
                                                               earning the ENERGY STAR for the first time in 2008.
FIGURE 2. ENERGY STAR Benefits Continue To Grow
                                                   18
                              —rr-   15
                          «& ^ ii
              10

2000   2001   2002  2003  2004
Utility Bill Savings  (in billions)
                               2005   2006   2007  2008
                                                                                                                 29
                                                                                                          27
                                                                                                    24
                                                                                              22
                                                                                       49-
                                                                                 16
                                                                           14
                                                              10
                                                                    12
                                                                       I     I    I     I     I    I     I
                                                                 I    I     I    I     I     I    I     I
                                 2000   2001   2002   2003   2004   2005  2006   2007  2008
                                 Emissions Saved in Vehicle Equivalents (in millions)

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                                                                                               EXECUTIVE SUMMARY
FIGURES. 2008 International Climate Protection Awards

  The Climate Protection
  Awards were
  established in 1998 to
  recognize outstanding
  accomplishments in
  protecting the Earth's
  climate. So far, 169
  individuals, companies,
  and organizations from 19
  countries have earned the EPA Climate Protection
  Award. For 2008,17 individuals and organizations
  were recognized for  reducing GHG 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. This year's
  winners are from Argentina, India, the Federated
  States of Micronesia, Mauritius, Mexico, and the
  United States.
CORPORATE AND GOVERNMENTAL AWARD WINNERS
•  California Climate Action Team, United States
•  City of Berkeley, United States
•  Mauritius and the Federated States of Micronesia
•  Regional Greenhouse Gas Initiative, United States
•  Sun Microsystems, United States

TEAM AND ORGANIZATION AWARD WINNERS
•  Building Owners and Managers Association International, United States
•  Consortium for Energy Efficiency, United States
•  Pacific Forest Trust, United States
•  Agustm Sanchez and Laura Beron, Mexico and Argentina

INDIVIDUAL AWARD WINNERS
•  Mr. George David Banks, United States
•  Ms. Sandra Ely, United States
•  Mr. Edward Thomas Morehouse, Jr., United States
•  Dr. AjeetRohatgi, United States
•  Dr. Joseph Senecal, United States
•  Mr. Rajendra Shende, India
Climate Leaders
Climate Leaders, the largest corporate GHG goal-setting
program, grew to nearly 250 participants—an increase of 60
percent in one year. Further, about half of the partners have
publicly announced and are working to meet their aggressive
GHG reduction goals. Twenty-one partners have achieved
their initial emissions reduction goals and are pursuing new
ones. Together, the announced goals represent a potential
reduction in GHG emissions of more than 13 MMTCE over
business-as-usual outcomes.

Clean Energy Supply Programs
Increasing clean energy supply through efficient and
low-emitting supply options is another critical strategy
for reducing GHG emissions. EPA's Clean Energy Supply
programs, which provide technical assistance and recognize
significant purchasers of renewable energy, engaged  more
than 1,300 partners in the purchase of over 16 billion kWh of
green power and the installation of over 130 megawatts (MW)
of new, environmentally beneficial combined heat and power
(CHP) capacity—about 50 percent of nationwide capacity that
came on line in 2008.
          State and Local Government Clean Energy
          Programs
          EPA made important progress assisting state and local
          governments in exploring and implementing a broad range of
          energy efficiency, clean energy, and climate change policies
          and programs.

          •  EPA established a comprehensive nationwide program
             that helps states learn from the experiences of the 16
             states in the partnership and others. EPA also expanded
             its municipal network to include hundreds of  local
             governments.
          •  The EPA- and U.S. Department of Energy (DOE)-facilitated
             National Action Plan for Energy Efficiency released
             Vision for 2025: Framework for Change, which provides
             a comprehensive framework for state-specific policies
             and programs to overcome barriers and realize all cost-
             effective energy efficiency potential. Many states received
             assistance in advancing these policies.

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ENERGY STAR and Other Climate Protection Partnerships 2008 Annual Report
TABLE 2. ENERGY STAR Key Program Indicators, 2000 and 2008
STRATEGY KEY.ND.CATOR ^^•SB



Efficient Products
(for more information, see p. 18)



Home Improvement
(for more information, see p. 25)


New Homes
(for more information, see p. 26)



Existing Commercial Buildings
(for more information, see p. 29)


New Commercial Buildings
(for more information, see p. 33)

Industrial Improvements
(for more information, see p. 34)


Annual Results
(for more information, see p. 67)

Product Categories Eligible for ENERGY STAR
Individual Product Models Qualifying
Products Sold1-2
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
Markets 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 Labeled1
Number of Buildings Designed to Earn the
ENERGY STAR1
Industrial Partners
Industrial Sectors (and subsectors)
Facility Types Eligible for the ENERGY STAR Label
Number of Facilities Labeled1
Energy Saved (kWh)
Emissions Avoided (MMTCE)
Net Savings (USD)
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
ISULTS
2008
>60
>40,000
>2.5 billion3
>75%
2,400
>1,000
>550
50,000
27
200,000
940,000
17%
15
6,500
>80,000
>11.5 billion
16%
11
6,200
>1 billion
130
>550
16
5
45
188 billion
45
$18 billion
' Results are cumulative.
2 The cumulative total of product sales across the entire ENERGY STAR program from 1992-2008, including those from the efforts of the U.S. Department of Energy. The results for energy saved and
the resulting environmental and economic benefits represent EPA efforts alone.
 Compact fluorescent bulbs are not included in the number of ENERGY STAR qualified products purchased.
— .' Not applicable

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                                                                                              EXECUTIVE SUMMARY
Methane Partnership Programs
EPA's methane programs continued to reduce the emissions
of this potent GHG from landfills, agriculture, oil and natural
gas systems, and coal mines and to develop projects to use
the methane whenever feasible. In 2008, these programs
avoided more than 20.3 MMTCE of GHG emissions, exceeding
their emissions reductions goals and maintaining national
methane emissions 14 percent below 1990 levels.

Fluorinated GHG  Partnership Programs
EPA's fluorinated GHG (FGHG) partnerships kept national
emissions of these gases from industrial sources more than 30
percent below 1990 levels.3 Together, these programs avoided
more than  14.8 MMTCE of GHG emissions in 2008.
Recognizing Partner Accomplishments
EPA recognized the accomplishments of many outstanding
partners in its climate protection partnership programs with
the following awards:

•  International Climate Protection Awards (see Figure 3, p. 5)
•  ENERGY STAR Award Winners (see Figure 6, p. 17)
•  Green Power Leadership Awards (see Table 12, p. 43)
•  ENERGY STAR CHP Awards (see Table 14, p. 46)
•  Natural Gas STAR Awards (see Table 18, p. 55)
•  Landfill Methane Outreach Awards (see Table 19, p. 60)
TABLE 3. Long-term Greenhouse Gas Reduction Goals for EPA Climate Partnership Programs (MMTCE)
	 ACCOMPLISHMENTS 	 	
PROGRAM ^^^^^^^^^^^^^^^^9
ENERGY STAR*
Clean Energy Supply Programs
Methane Programs
Fluorinated GHG Programs
Total
45.0
6.1
20.3
14.8
86.2
52
8
18
19
97
GOALS
2015
64
12
20
22
118
*Does not include ENERGY STAR products managed by DOE.
Looking Forward to 2009 and Beyond
EPA's programs continue to advance GHG reduction goals
and deliver greater benefits each year. Expected to double
again within 10 years, these benefits can only grow as more
organizations, households, and others adopt the practices
promoted by the climate protection partnerships (see
Table 3). The following voluntary programs are an important
complement to state and federal regulatory actions on climate
change. EPA will pursue broad strategies to reach aggressive
interim goals and achieve growing environmental and
economic benefits.

ENERGY STAR
EPA will continue to build the ENERGY STAR program as
a credible source of information for investing in  energy
efficiency for consumers, businesses, and other organizations
to leverage as part of their own efficiency and GHG reduction
efforts in the following ways:
•  Expand to cover new product categories—adding about
   two each year—and increase the stringency of ENERGY
   STAR requirements for products where appropriate.
•  Increase the number of builders offering ENERGY STAR
   qualified new homes, expand market share, and work
   to increase the stringency of the requirements for these
   homes.
•  Launch Home Performance with ENERGY STAR in new
   regions of the country.
•  Expand the use  of the energy assessment tools available
   through ENERGY STAR as a way to target improvements
   in commercial building efficiency and use the ENERGY
   STAR label to recognize new and existing high performing
   commercial buildings.
•  Work with Industrial Focuses, finalize energy performance
   indicators, and expand the ENERGY STAR labeling program
   for efficient plants.
 Emissions do not include those used in mobile air conditioning or as replacements for ozone depleting substances.

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ENERGY STAR and Other Climate Protection Partnerships 2008 Annual Report
•  Review and evaluate the methodologies and assumptions
   used to calculate the benefits associated with ENERGY
   STAR qualified products.

Climate Leaders
EPA will continue to engage organizations of all kinds,
while providing support to existing partners to reach their
GHG reduction goals. EPA expects growing interest from
organizations interested in better understanding and reducing
their carbon footprints. EPA will also assist these organizations
in encouraging their suppliers to develop their own GHG
management strategies.

Clean Energy Supply Programs
EPA will continue to help partners improve the supply of the
nation's clean energy resources, supporting the purchase of
green power by aggressively promoting sector leadership
among colleges and universities, state and local governments,
and the Fortune 500. EPA will also assist in the development
of new CHP projects in sectors such as municipal and
cooperative utilities, wastewater treatment facilities, tribal
casinos, and data centers.
State and Local Government Clean Energy
Programs
EPA will continue to assist state and local governments in
advancing clean energy policies and programs. EPA will:

•  Establish an online State Network for officials in all 50
   states to learn from and exchange information about
   energy and climate change initiatives, as well as provide
   new guidance materials for implementing key policies.
•  Use the policy framework created through the National
   Action Plan for Energy Efficiency to support the
   development of a long-term energy efficiency program
   and policy infrastructure, including supporting energy
   efficiency advanced through the American Recovery and
   Reinvestment Act (ARRA) of 2009.

Methane and Fluorinated GHG Programs
With national  methane and F-gas emissions below 1990
baselines, EPA will strive for further achievements in these
programs by working aggressively with companies in the
aluminum, magnesium, semiconductor, utility, HCFC-22,
and mobile air conditioning sectors to reduce emissions
of F-gases. EPA will also work to enhance its partnerships
with  companies and communities to develop new methane
emissions reduction projects at coal mines, oil and gas
systems, landfills, and farms across the country. Through
the Methane to Markets Partnership, EPA will continue to
spread the successful practices of these domestic methane
partnership programs overseas.

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INTRODUCTION TO ERA'S CLIMATE  PROTECTION  PROGRAMS
Across the United States a number of cost-effective opportunities exist to greatly reduce GHG
emissions and protect the environment. However, consumers and organizations have not seized many
of these opportunities due to pervasive market barriers. For the past 16 years, EPA has worked to
dismantle the barriers that have prevented the adoption of and investment in energy efficiency, clean
energy, and other climate-friendly technologies and practices through its comprehensive suite of
climate protection partnership programs (see Table 4, p. 10). Through these partnership programs, EPA
offers a broad collection of tools, resources, best practices, and policies to thousands of partners and
consumers. The core elements of these programs are:

• Objective information
• Technical assistance
• Public recognition for environmental leadership

As a result of their participation, EPA's partners—along with American consumers—have significantly
reduced energy use; avoided GHG emissions across the residential, commercial, and industrial sectors;
and captured real financial and environmental benefits. As these partnership programs continue to
grow each year, so do their environmental and financial benefits; in 2008, EPA's climate partnerships
achieved remarkable benefits, which are expected to double by 2018.
The programs summarized in this report4 focus on the five broad strategies described below to achieve
their goals.
4 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 120 million metric
tons of carbon equivalent (MMTCEj in 2008.

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    ENERGY STAR and Other Climate Protection Partnerships 2008 Annual Report
    TABLE 4. Market Barriers Addressed by EPA's Climate Partnership Programs
     Energy
     Consumers
                                                                           CLIMATE PROTECTION PARTNERSHIP PROGRAM
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
                         Lack of objective measurement tools
Lack of information about energy efficency
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.
10

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                                                                                                       INTRODUCTION
FIGURE 4. U.S. Electricity Generation by Fuel Type
                       Petroleum
    Hydroelectric
    Conventional
       5.8%
                 Other
               Renewables*
                 2.5%
Other
0.6%
 Nuclear
 19.4%
                                               Coal
                                              48.5%
    Natural Gas
      21.6%
                             FIGURE 5. U.S. C02 Emissions by Sector and Non-C02 Gases
                             by Percent of Total GHGs
                                       Methane
                                       Emissions
                                        8.7%
                                Agriculture
                                  1.2% "
                                                             Commercial
                                                               14.8%
                                                                                                   Transportation
                                                                                                      26.8%
                                                                        Residential
                                                                          17%
                                                                   Industry
                                                                    25%
"Includes wind, photovoltaic energy, solar thermal, geothermal, landfill gas, agricultural
byproducts, wood, and other renewable sources.

Source: EIA 2009c
                                                           Source: EPA 2009s
 Program Strategies
Promoting Energy Efficiency
Energy efficiency—obtaining identical services or output
(such as heating, cooling, and lighting) with less energy
input—is one of the lowest cost solutions for combating
global climate change. Since 1992, EPA has been expanding
the ENERGY STAR program to help individuals and
organizations across the nation adopt proven, cost-effective,
energy-efficient technologies and practices by:

•  Clearly identifying  energy-efficient products with superior
   performance in the marketplace.
•  Improving voluntary energy efficiency specifications for
   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 reduce their energy use
   (see Figure 5).

Facilitating Corporate Commitments To Reduce
GHG Emissions
Partners in EPA's Climate Leaders program are Fortune
500 and other leading corporations that have committed
                             to aggressively reducing their GHG emissions. Companies
                             agree to complete a comprehensive inventory of their GHG
                             emissions, set an ambitious long-term reduction goal, and
                             annually report their progress to EPA when they join. Climate
                             Leaders are reducing their carbon footprint and earning
                             recognition for environmental stewardship through the
                             program by investing in energy efficiency, clean energy, and
                             other measures to reduce emissions of GHGs.

                             Expanding Clean Energy Supply
                             In 2001, EPA launched the Green Power Partnership and the
                             Combined Heat and Power (CHP) Partnership to accelerate
                             the adoption of clean energy supply technologies across the
                             United States (see Figure 4). These partnerships are spurring
                             resource growth by promoting greater purchase of electricity
                             derived from renewable sources and greater investment
                             in environmentally friendly CHP. EPA has partnered with
                             hundreds of organizations through these programs to provide
                             technical assistance, minimize transaction costs, and promote
                             technologies that significantly reduce GHG emissions from
                             energy generation.
                                                                                                                     11

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    ENERGY STAR and Other Climate Protection Partnerships 2008 Annual Report
      The 2008 Annual Report
      This annual report presents detailed information on EPA's
      2008 efforts within each of the five strategies mentioned in
      this section. Each individual program section includes:
      •  Program overview and accomplishments.
      •  Environmental and economic benefits achieved
         in 2008.
      •  Goals for the future.
      •  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 67). 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.
    Advancing State and Local Energy Policy
    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.
Reducing Non-C02 GHG Emissions
While carbon dioxide (C02) is the most recognizable GHG, a
number of GHGs can trap significantly more heat in the earth's
atmosphere, on a per molecule basis, than 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 GHG and a highly desirable clean
   fuel. EPA partners with the oil and 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 thefluorinated gases (F-gases)—including
   hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), and
   sulfur hexafluoride (SF6)—are extremely powerful and
   persistent GHGs. To avoid significant accumulation of
   these  gases in the atmosphere, EPA collaborates with the
   aluminum, magnesium, and semiconductor industries; the
   HCFC-22 industries; the electric utilities; and companies
   engaged in the mobile air-conditioning industry.
12

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ENERGYSTAR
          ENERGY  STAR OVERVIEW
   Energy efficiency is a proven, practical solution to the critical issues facing the United States and
   the global community. It is the lowest cost, fastest, and largest untapped answer for reducing GHG
   emissions in the nearfuture. Atthe same time, greater efficiency of the nation's housing, buildings, and
   industries will help Americans meet today's energy and environmental challenges, while creating new
   jobs and stimulating the U.S. economy.

   Since its inception by EPA in 1992, the ENERGY STAR program has helped drive investment in energy-
   efficient products, technologies, and practices that go well beyond existing appliance standards and
   building codes. EPA has used a variety of strategies to catalyze market transformation, including
   information dissemination; technical assistance; definition of specifications and verification of top
   performing products, buildings, and new homes; and recognition of organizations that have made
   substantial progress in reducing GHG emissions. In 1996, EPA partnered with DOE, which assumed
   responsibility for specific product categories.

   Many homeowners, businesses, and other consumers rely on the ENERGY STAR program as a trusted
   source of unbiased information to help them lower their energy bills while fighting global climate
   change. The program benefits have grown steadily since 1992 and will continue to grow as consumers
   and businesses leverage the ENERGY STAR program and take steps to:

   •  Select efficient products  in more than 60 product categories.
   •  Undertake home improvement retrofits.
   •  Buy efficient new homes.
   •  Improve the efficiency of public and private commercial buildings.
   •  Design efficient buildings.
   •  Improve the efficiency of industrial facilities.
                                                                                             13

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    ENERGY STAR and Other Climate Protection Partnerships 2008 Annual Report
     Achievements in 2008
    National Benefits
    The combined achievements across the ENERGY STAR
    program include the following:

    •   Financial Savings. Americans saved about$18 billion on
        their utility bills across the residential, commercial, and
        industrial sectors (see Table 1, p. 3).
Energy Savings. Americans avoided the need for about
190 billion kilowatt-hours (kWh) of electricity or almost
5 percent of the total 2008 U.S. electricity demand.
GHG Emissions Prevented. Americans avoided
45 million metric tons of GHG emissions (see Table 5),
equivalent to the GHG emissions from 29 million vehicles.
     TABLE 5. ENERGY STAR Program Achievements Exceed Goals in 2008




All Qualified Products1
Commercial Building
Improvements2
New Homes3
Industrial
Improvements4
PROGRAM TOTAL for
ENERGY STAR
2008 2008
ENERGY SAVED EMISSIONS AVOIDED
(BILLION KWH) (MMTCE)
GOAL ACHIEVED GOAL ACHIEVED
— 97.7 18.5 19.4
— 72.9 13.5 18.5
— 1.8 1.0 0.5
— 16.5 4.2 6.6
165 188.9 37.2 45.0
2009 2009
ENERGY SAVED EMISSIONS
(BILLION KWH) AVOIDED (MMTCE)
GOAL GOAL
— 20.5
— 14.5
— 1.3
— 4.5
— 40.8
ACHIEVEMENTS BY PRODUCT TYPE



Residential Products Total
Consumer Electronics5
Residential Appliances6
Residential Office Equipment
Lighting
Heating and Cooling
Commercial Products Total
Commercial Appliances
Office Equipment
Commercial Lighting
Other
CUMULATIVE TOTAL
2008
ENERGY SAVED
(BILLION KWH)
45.3
19.2
1.4
7.7
9.1
7.9
52.4
2.5
39.8
1.3
8.8
97.7
2008
EMISSIONS AVOIDED
(MMTCE)
9.6
3.6
0.3
1.5
1.7
2.5
9.8
0.5
7.6
0.2
1.5
19.4
    'Results for qualified products from Woman et al, 2009. 'Results from building improvements based on methodology presented in Horowitz, 2009.'-'Results for qualified homes from CPPD, 2009.
    "Electricity results from industrial improvements based on methodology presented in Horowitz, 2009.5A 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
14

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                                                                                             ENERGY STAR: OVERVIEW
Key Achievements by Program Focus
About 40 percent of the program benefits achieved in 2008
came from the purchase and use of ENERGY STAR qualifying
products and new homes.  Promoting improved energy
management strategies for organizations in the commercial
and industrial sectors accounted for the remaining 60
percent. Other key achievements in 2008 include:

•  ENERGY STAR Awareness. Public awareness of the
   ENERGY STAR label rose to more than 75 percent.
•  Products. U.S. consumers purchased more than 550
   million ENERGY STAR qualified products for a total of more
   than 2.5 billion since 2000.5
•  Residential Buildings. About 17 percent of all new homes
   built in 2008 were constructed to meet ENERGY STAR
   guidelines.6 There was  a grand total of nearly 940,000
   homes and multifamily units constructed by the end of
   2008. The number of whole home retrofits continued to
   grow; and new programs were rolled out to improve the
   installation of heating and cooling equipment.
•  Commercial Buildings. To date, more than 2,400
   organizations have joined EPA in the  challenge to reduce
   energy use in their buildings by 10 percent or more; 16
   percent of the nation's building space has been assessed
   for energy performance; more than 6,200 buildings
   have earned the ENERGY STAR for superior energy
   performance; and 130 new building design projects are
   Designed to Earn the ENERGY STAR.
•  Industrial Facilities. EPA's ENERGY STAR Industrial
   Focuses expanded to include 16 sectors with the launch
   of a new Steelmaking Focus; participation in the peer
   exchange network increased by 30 percent; and 28 plants
   earned the ENERGY STAR, including eight for the first time,
   across three  sectors—automobile manufacturing, cement
   manufacturing, and petroleum refining—bringing the total
   to 45.
Partnership-Driven Change
EPA now engages more than 15,000 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:

•  Manufacturers. Over 2,400 manufacturers using the
   ENERGY STAR label to differentiate more than 40,000
   individual product models across more than 60  product
   categories. These products can save consumers up to
   one-third on their annual total household energy bills (see
   Table 6, p.16).
•  Retailers. More than 1,000 retail partners bringing ENERGY
   STAR qualified products and educational information to
   their customers.
•  Builders. More than 6,500 builder partners  constructing
   new homes that qualify for the ENERGY STAR in every
   state and the District of Columbia—saving  homeowners
   money while maintaining high levels of comfort.
•  Building and Facility Owners. Nearly 2,500 private
   businesses, public sector organizations, and industrial
   facilities investing in energy efficiency and reducing
   energy use in their buildings and facilities.
•  Energy Efficiency Program Sponsors. More than 40 states,
   550 utilities, and many other energy efficiency program
   sponsors leveraging ENERGY STAR resources to improve
   the efficiency of commercial buildings, industrial facilities,
   and homes.
•  Other Partners. Hundreds of energy service providers,
   energy raters, financial institutions, architects,  and
   building engineers making energy efficiency more widely
   available through ENERGY STAR—providing additional
   value to their customers.
•  Environmental Leaders. EPA and DOE recognizing the
   outstanding commitments of 89 partners at the  2008
   Partner of the Year Awards (see Figure 6, p. 17).
 Compact fluorescent bulbs are not included in the number of ENERGY STAR qualified products purchased.
 Single family site-built new homes.
                                                                                                                   15

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    ENERGY STAR and Other Climate Protection Partnerships 2008 Annual Report
    TABLE 6. Average Consumer 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
CONSUMER ELECTRONICS
TVs
VCRs
TVs/DVDs/VCRs
DVD products
Audio equipment
Telephony
Digital-to-analog converter (DTA)
External power adapters
Battery charging systems
Set-top boxes
HVAC
Furnaces
Central air conditioners
Air source heat pumps
Geothermal heat pumps
Boilers
Programmable thermostats
Light commercial HVAC

35-65%
20-50%
40%
20%
20-55%
10%
10-35%

20%
55%
35%
35%
30%
55%
50%
5%
30%
30%

10%
10%
10%
30%
5%
N/A
5%
ENERGY STAR PRODUCT CATEGORY
                                                                  LIGHTING
                                                                  Compact flourescent light bulbs (CFLs)*
                                                                  Decorative light strings
                                                                  Residential light fixtures
                                                                  RESIDENTIAL APPLIANCES
                                                                  Room air conditioners*
                                                                  Dehumidifiers
                                                                  Room air cleaners
                                                                  Exhaust fans
                                                                  Ceiling fans
                                                                  Dishwashers*
                                                                  Refrigerators and freezers*
                                                                  Clothes washers*
                                                                  COMMERCIAL APPLIANCES
                                                                  Water coolers
 AVERAGE ENERGY
 SAVINGS** ABOVE
STANDARD PRODUCT
                                                                     75%
                                                                     70%
                                                                     75%
                                                                  Commercial solid door refrigerators
                                                                  and freezers
                                                                  Commercial hot food holding cabinets
                                                                  Commercial fryers
                                                                  Commercial steamers
                                                                  Vending machines
                                                                  HOME ENVELOPE
                                                                  Insulation/Sealing
                                                                  Roof
                                                                  Windows, doors, and skylights*
                                                                     10%
                                                                     15%
                                                                     40%
                                                                     70%
                                                                     50%
                                                                     15%
                                                                     15%
                                                                     30%

                                                                     45%
                                                                     35%
                                                                     65%
                                                                     20%
                                                                     50%
                                                                     40%

                                                                     N/A
                                                                     N/A
                                                                     N/A
    * DOE managed products.
    ** Actual savings will vary by climate region and home characteristics.
    N/A: Not available
16

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                                                                                                              ENERGY STAR: OVERVIEW
FIGURE 6.  ENERGY STAR Award Winners

To learn more about these award winners and their great accomplishments, see Profiles in Leadership: 2009 ENERGY STAR Award Winners.*
SUSTAINED EXCELLENCE

3M
St. Paul, MN

Advantage IQ, Inc.
Spokane, WA

Anderson/Vanguard
Homes, Inc.
Car/, NC

Austin Energy
Austin, TX

Building Owners & Managers
Association (BOMA)
International
Washington, DC

CalPortland Company
Glendora, CA

CenterPoint Energy
Houston, TX

Food Lion, LLC
Salisbury, NC

Ford Motor Company
Dearborn, Ml

GE Consumer & Industrial
Louisville, KY

Giant Eagle Incorporated
Pittsburgh, PA

Gorell Enterprises, Inc.
Indiana, PA

Gresham-Barlow School
District
Gresham, OR

Mines
Houston, TX


Oncor
Dallas, TX

OSRAM SYLVANIA
Danvers, MA

Pacific Gas and Electric
Company
San Francisco, CA

Pella Corporation
Pella, IA

PepsiCo, Inc.
Purchase, NY

ProVia Door
Sugarcreek, OH

Providence Health & Services
Rerttort, WA

Raytheon Company
Waltham, MA

Sea Gull Lighting
Products LLC
Riverside, NJ

Southern California Edison
Company
Rosemead, CA

Toyota Motor Engineering
& Manufacturing North
America, Inc.
Erlanger, KY

TRANSWESTERN
Houston, TX

USAA Real Estate Company
San Antonio, TX

Whirlpool Corporation
PARTNER OF THE YEAR

Akridge
Washington, DC

Arizona Public Service
Phoenix, AZ

ArcelorMittal USA
Chicago, IL

Bosch Home Appliances
Huntington Beach, CA

CB Richard Ellis, Inc.
Los Angeles, CA

CEMEX USA
Houston, TX

Colorado Governor's
Energy Office
Denver, CO

Council Rock School
District
Newtown, PA

Energy Education
Dallas, TX

Energy Inspectors
Corporation
Las Vegas, A/1/

EnergyLogic
Berthoud, CO

Energy Trust of Oregon,
Inc.
Portland, OR

Fox Energy Specialists
Fort Worth, TX

ITW Food Equipment
Group - North America


Nash-Rocky Mount Public
Schools
Nashville, NC

NJBPU, New Jersey's
Clean Energy Program
Newark, NJ

Northwest Energy
Efficiency Alliance
Portland, OR

Puget Sound Energy
Bellevue, WA

Rocky Mountain Power, a
Division of PacifiCorp
Salt Lake City, UT

Saint-Gobain
Valley Forge, PA

Satco Products, Inc.
featuring Nuvo Lighting
Brentwood, NY

Schering-Plough
Corporation
Kenilworth, NJ

SENERCON
El Paso, TX

Servidyne
Atlanta, GA

Southern Energy
Management
Morrisville, NC

Sunoco, Inc.
Philadelphia, PA

Technical Consumer
Products, Inc.
AWARDS FOR
EXCELLENCE

Actus Lend Lease
Nashville, TN

Best Buy Co., Inc.
Richfield, MN

Blue Hills Community
Services
Kansas City, MO

City of Topeka, Housing
& Neighborhood
Development
Topeka, KS

CoStar Group, Inc.
Bethesda, MD

Energy Kinetics, Inc.
Lebanon, NJ

Georgia Power
Atlanta, GA

Ithaca Housing Authority
Ithaca, NY

Ivey Residential, LLC
Augusta, GA

KB Home
Los Angeles, CA

Maryland Energy
Administration
Annapolis, MD

Menards
Eau Claire, Wl

Nashville Area Habitat
for Humanity
Nashville, TN

J. C. Penney Company, Inc.
Piano, TX

Marriott International, Inc.
Washington, DC

Merck & Co., Inc.
Whitehouse Station, NJ

National Grid
Waltham, MA

Nevada  ENERGY STAR
Partners
Las Vegas, A/1/

New York State Energy
Research and Development
Authority (NYSERDA)
Albany, NY

Northeast ENERGY STAR
Products Initiative
Lexington, MA
Benton Harbor, Ml

Winton/Flair Custom Homes
El Paso, TX

Wisconsin Focus on Energy
Madison, Wl
Troy, OH

The Joint Management
Committee representing
Massachusetts
New Homes with
ENERGY STAR
Massachusetts

Kennedy Associates Real
Estate  Investment
Advisors
Seattle, WA

Kimberly-Clark Corporation
Irving, TX

Lowe's Companies, Inc.
Mooresville, NC

MaxLite
Fairfield, NJ
Aurora, OH

TIAA-CREF
New York, NY

Whitefish Bay School
District
Whitefish Bay, Wl

Xcel Energy
Minneapolis, MN
Nationwide Marketing
Group
Winston-Salem, NC

Samsung Electronics
Co., Ltd.
Suwon, Korea

Seattle Lighting and
DestinationLighting.com
Seattle, WA

Vietnamese American
Initiative for
Development, Inc.
Dorchester, MA
*For more information, see http://www.energystar.gov/ia/partners/pt_awards/2009_profiles_in_leadership.pdf.
                                                                                                                                        17

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   ENERGY STAR QUALIFIED PRODUCTS
   Recognized by an ever-growing number of consumers, ENERGY STAR continues to be the trusted
   symbol of energy efficiency, as demonstrated by increasing sales of ENERGY STAR qualified products.
   Americans purchased about 550 million ENERGY STAR qualified products in 2008—across more than
   60 product categories—for a cumulative total of more than 2.5 billion products since 2000 (see Figure
   7, p. 20). These products offer consumers energy savings of as  much as 75 percent compared with
   standard models. Key activities in 2008 included:

   •  Updating specifications for 10 product categories (see Table 7).
   •  Educating consumers on the benefits and availability of ENERGY STAR qualified products.
   •  Supporting and developing key partnerships with energy efficiency program sponsors, lighting
     showrooms, and retailers.
   •  Monitoring and protecting the use of the ENERGY STAR label.
18

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                                                                                        ENERGY STAR: QUALIFIED PRODUCTS
Table 7. ENERGY STAR Product Specifications Added, Revised, and in Progress
                          YEAR
                      INTRODUCED    RESPONSIBLE
 PRODUCT CATEGORY   (AND REVISED)      AGENCY    STATUS OF ACTIVITY IN 2008
 2008 REVISIONS COMPLETED
 External Power
 Adapters
 Televisions

 Telephony

 Imaging Products
 Set-top Boxes

 Computers
                      2005 (2008)
                    1998(2002,2004,
                      2005, 2008)
                    2002 (2004, 2006,
                        2008)
                      2007 (2009)
                    2001 (2005, 2009)
                    1992(1995,1999,
                    2000, 2007, 2009)
                    1995(2006,2008)
 Furnaces
 2008 REVISIONS IN PROGRESS
 Commercial Solid
 Door Frig/Freezer
                     1992(1995,1998,
                     1999,2005,2006)
 Programmable
 Thermostats
Monitors/Displays
                      2001(2003)
                         1995
 Ventilation Fans
                      2001(2003)
                          2007
Game Consoles
NEW SPECIFICATIONS IN DEVELOPMENT
Commercial Griddles
Commercial Glass
Door Frig/Freezer
Commercial Ovens
Lab Grade
Frig/Freezer
Enterprise Servers
SPECIFICATIONS SUNSETTED
 Exit Signs
 VCRs
                         1996
                         1998
EPA

EPA

EPA

EPA
EPA

EPA

EPA


EPA

EPA

EPA

EPA

EPA


EPA

EPA

EPA

EPA

EPA


EPA
EPA
 Revision completed. Revised specification took effect November 1,2008.

 New specification took effect November 1,2008.

 Revision completed. Revised specification took effect November 1,2008.

 Revision completed. Revised specification to take effect July 1, 2009.
 Revision completed. Revised specification to take effect January 1, 2009.

 Revision completed. Revised specification to take effect July 1, 2009.

 Revision completed. Revised specification took effect October 1, 2008.


 Revision initiated in 2007.

 In progress, expected to be complete in 2009.

 In progress, current specification scheduled to be sunsetted December 31, 2009.

 Revision initiated in 2007, expected to be complete in 2009.

 In progress, expected to be complete in 2010.
 New specification to be completed in 2009.

 New specification to be completed in 2009.

 New specification to be completed in 2009.

 New specification to be completed in 2009.

 New specification to be completed in 2009.


| Due to successful transformation of market, specification was sunsetted in 2008.
 Due to changes in the market, specification was sunsetted November 1, 2008.
 Achievements in 2008
Raising the Bar for ENERGY STAR
EPA increased the stringency for seven ENERGY STAR
specifications: set-top boxes, TVs, imaging products,
computers, external power adapters, telephony, and furnaces.

•  Set-top Boxes. EPA revised specifications for set-top
   boxes. Cable, satellite, and telecom set-top boxes that can
   now earn the ENERGY STAR are at least 30 percent more
                                                               efficient than conventional models. In conjunction with
                                                               the new specification for set-top boxes, EPA launched a
                                                               partnership with cable, satellite, and telecommunications
                                                               companies that deliver content to consumers. As ENERGY
                                                               STAR partners, these companies agreed to improve the
                                                               energy efficiency of a significant number of set-top boxes
                                                               by offering qualified boxes to subscribers or by upgrading
                                                               boxes already in homes. If all set-top boxes sold  in the
                                                                                                                        19

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    ENERGY STAR and Other Climate Protection Partnerships 2008 Annual Report

       United States met the new ENERGY STAR requirements,
       the savings in energy costs would grow to about $2 billion
       each year and GHG emissions would be reduced by the
       equivalent of those from about 2.5 million vehicles.
    •   TVs. EPA finalized an important enhancementto the
       ENERGY STAR specification for TVs, ensuring that qualified
       models save energy not only while they are off, but also
       when they are on. The potential savings from this program
       update are substantial: if all TVs sold in the United States
       met these ENERGY STAR requirements, the savings in
       energy costs would grow to about $1 billion annually
       and the reductions in GHG emissions would grow to
       the equivalent of the emissions from about one  million
       vehicles.
    •   Imaging Products. Revisions to the ENERGY STAR
       specification for imaging products—including printers,
       copiers, scanners, fax machines, and all-in-one devices—
       delivered an average 14-percent improvement in energy
       efficiency compared to previously qualified models. If
       all imaging products sold  in the United States met the
       new specification, consumers would save nearly $500
       million a year in energy costs and prevent GHG  emissions
       equivalent to those from more than 500,000 vehicles.
    •   Computers. EPA capitalized on the rapidly evolving
       computer market, further  increasing the stringency of the
       ENERGY STAR specification for desktop and notebook (or
       laptop) computers, integrated computer systems, desktop-
       derived servers, and workstations, ensuring that the label
       continues to designate top performers. If all computers
       sold in the United States met the new requirements, the
       savings in energy costs would grow to more than $2 billion
       each year and prevent GHG emissions equivalent to the
       emissions from more than 3 million vehicles.
    •   External Power Adapters. EPA finalized revisions to
       specifications for external power adapters. Consumers
       can now purchase a growing number of products that
       are packaged with qualified power adapters, which are
       on average 30 percent more efficient than conventional
       models. If all external power adapters sold in the United
       States met the revised specifications, consumers would
       save more than $2 billion each year and prevent GHG
       emissions equivalent to those from more than 1.5 million
       vehicles.
FIGURE 7. More Than 2.5 Billion ENERGY STAR Qualified
Products Purchased Since 2000
=   2.0
       2000  2001   2002  2003  2004   2005  2006  2007   2008
         HVAC and Other
        [Appliances
 Lighting*
I Home Electronics
I Home Office Equipment
I Office Equipment
*Compactfluorescent bulbs are not included in the number of ENERGY STAR
qualified products purchased.

•  In addition, EPA made significant progress in updating
   specifications for displays, commercial solid door
   refrigerators/freezers, and ventilation fans.

Empowering Consumers
The success of the ENERGY STAR program depends on the
public's awareness of both the financial and environmental
benefits of ENERGY STAR qualified products, homes, and
buildings. Each year, EPA engages in public outreach
campaigns to help raise awareness of ENERGY STAR and
these benefits. In 2008:

•  EPA-managed ENERGY STAR national campaigns (see
   sidebar, p. 21) and public service announcements (PSAs)
   reached millions of people through TV, magazine, radio,
   and online media outlets, and articles mentioning ENERGY
   STAR had a reach of more than one billion readers.
•  More than 75 percent of American households recognized
   the ENERGY STAR label (see Figure 8).7
•  More than 35 percent of American households knowingly
   purchased an ENERGY STAR qualified product and more
   than 75 percent of these households reported being
   favorably influenced by the ENERGY  STAR label and/
   or likely to recommend ENERGY STAR products to their
   friends.7
•  The ENERGY STAR Web site experienced impressive
   growth; visitor sessions reached 11 million, up from 10
   million in 2007.
    1 for more information, see U.S. EPA, 2009b.
20

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                                                                                     ENERGY STAR: QUALIFIED PRODUCTS
Fostering Partnerships
Partnerships with many types of organizations are critical to
the success of the ENERGY STAR program. These partners
not only offer ENERGY STAR qualified products in the
marketplace, but also educate consumers on a broad range
of energy-saving steps and provide incentives for purchasing
energy-efficient products. Highlights of these partnerships
include:

•  Energy Efficiency Program Sponsors. Many utilities
   and other energy efficiency program sponsors (EEPS)
   are leveraging ENERGY STAR products and campaigns
   to help their customers control energy costs, all while
   meeting regional energy system needs. These include
   reducing peak demand, delaying or avoiding the need
   to build new power plants, and emitting fewer GHGs. To
   date more than 550 utilities and other program sponsors
   servicing 75 percent of U.S. households have partnered

   Change the World, Start with ENERGY STAR Campaign
   Building on the success of the ENERGY STAR Change a
   Light, Change the World campaign, EPA launched Change
  the World, Start with ENERGY STAR in 2008. This national
   campaign challenged Americans to pledge to make energy-
   efficient choices at home that help fight global climate
   change. People who took
                                CHANGE THE WORLD,
                                START WITH ENERGY STAR
the ENERGY STAR pledge
committed to:
•  Choosing ENERGY STAR
   qualified appliances and
   electronics.
•  Maintaining home
   heating and cooling
   systems to improve efficiency.
•  Ensuring homes are well
   sealed and insulated.
•  Enabling power management
   features on home computers and monitors.
Featuring a six-city tour of an energy-efficient home
exhibit, the campaign message reached 28 million people
and generated nearly 500,000 new pledges, equivalent to
individual actions that could  save up to 800 million pounds
of GHG emissions.
                                                             with ENERGY STAR to deliver an increasingly broad
                                                             portfolio of offerings to their customers. Education about
                                                             ENERGY STAR is now incorporated in energy efficiency
                                                             programs in all 50 states, the District of Columbia, and
                                                             U.S. territories. Significant progress was made with
                                                             partnerships in the areas of commercial food service
                                                             equipment, residential light fixtures, and the Change the
                                                             World, Start with ENERGY STAR campaign.
                                                          •  Lighting Showrooms. EPA worked closely with
                                                             lighting showroom partners to increase information
                                                             available to consumers in the important product area
                                                             of ENERGY STAR qualified light fixtures and fans, with
                                                             an emphasis on residential construction projects in the
                                                             Pacific  Northwest. These efforts included providing
                                                             key information to partner showroom sales staff and
                                                             representatives serving local builders, training the
                                                             Seattle-area builders, assisting local showrooms and

                                                         FIGURE 8. Awareness of ENERGY STAR Growing  in the
                                                         United States
                                                             0%    10%   20%    30%  40%   50%   60%   70%   80%
                                                           2004
                                                           2005
                                                           2006
                                                           2007
                                                           2008
                                                                     Unaided Awareness
                                                                                              Aided Awareness
                                                           * Unaided annual result is statistically different from the result of the prior year.
                                                           ** Aided and unaided annual results are statistically different from the results of the prior
                                                           year.
                                                                                                                    21

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    ENERGY STAR and Other Climate Protection Partnerships 2008 Annual Report
      their builder customers in developing lighting plans
      for model homes, and helping create a media event to
      highlight the installations.
    •  Retailers. The nation's retailers continue to be one of the
      largest sources of information on ENERGY STAR products
      for consumers. Sixty-five percent of households have been
      exposed to the ENERGY STAR on store displays8—making
      retail partnerships critical not just for consumer access to
      ENERGY STAR products, but also for consumer education.
      EPA works  with key retailers to help them gain ever
      greater traction for ENERGY STAR with shoppers. In 2008,
      retailers made significant progress in increasing ENERGY
      STAR electronic retailing—e-tailing—and grew their
      online sales, particularly with enthusiastic support from
      partners Lowe's, Best Buy, Menards, and Amazon.com.

    Protecting the Value of ENERGY STAR
    The  ENERGY STAR  identity is a valuable asset, and the mark
    must be properly used and protected to ensure the integrity
    and  value of ENERGY STAR. EPA takes a number of measures
    to maintain the integrity of the brand so that consumers will
    continue to trust ENERGY STAR as a source of unbiased
    information  about energy efficiency.9
     What To Expect in 2009 and Beyond
    New Qualified Products
    EPA will continue to expand the list of ENERGY STAR
    qualified products by introducing new product categories,
    initiating new product specification development activities,
    and looking for new product categories that meet the core
    ENERGY STAR principles. New specifications will cover
    enterprise servers, commercial griddles, commercial glass
    door refrigerators/freezers, lab grade refrigerators/freezers,
    and commercial ovens. EPA will also begin discussions
    with key stakeholders on the specifications for data center
    storage devices and home network equipment.

    Specification Revisions
    EPA will again raise the bar on many common products by
    revising ENERGY STAR specifications to make them even
    more efficient. EPA will finalize revisions for nine product
    categories—computers; displays; TVs; audio/video products;
Key accomplishments included:

•  Perfoming numerous onsite retail store-level assessments
   of product shelf inventory; reviewed more than 3,200
   unique product models for labeling violations; and
   identified eight violations during the retail store level
   assessments.
•  Negotiating agreements with the Home Ventilating Institute
   (HVI), Air Movement & Control Association (AMCA), and
   Association of Home Appliance Manufacturers (AHAM)
   to leverage existing testing of ENERGY STAR products
   through their third-party certification and verification
   programs.
•  Developing a new verification testing requirement for
   computer manufacturers, which will mandate impartial
   testing of ENERGY STAR qualified products in accredited
   laboratories on an annual basis.
•  Conducting verification testing for digital TV adapters
   (DTAs) and computers.
•  Completing two rounds of quality assurance testing for
   light fixtures.
game consoles; light commercial heating, ventilating, and air
conditioning equipment; geothermal heat pumps; ventilation
fans; and commercial food-grade refrigerators. The Agency
will also make important advances in the specification
process for enterprise servers, programmable thermostats,
residential furnaces, and water coolers.

Partnerships
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,
household appliances, commercial food service equipment,
office equipment, and heating and cooling products. The
Agency expects more than 300 million ENERGY STAR
qualified products to be sold each year for the foreseeable
future.10
     For more information, see http://www.cee1.org/eval/2008_ES_survey_rep.pdf.
    9 For more information, see Maintaining the Value of ENERGY STAR.
    10 Number of products above does not include individual compact fluorescent bulbs.
22

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                                                                                    ENERGY STAR: QUALIFIED PRODUCTS
Integrity
EPA will continue to ensure the integrity of ENERGY STAR by
implementing a range of monitoring measures:

•  Completing two sets of retail store-level assessments
   to evaluate the use of the ENERGY STAR label and the
   consumer experience at the point of purchase.
•  Coordinating testing with  a third-party certification
   program for exhaust fans and dehumidifiers.
                            •  Finalizing verification testing requirements for
                               computer manufacturers.
                            •  Verification testing of select electronics products.
                            •  Increasing quality assurance testing for light fixtures.
                            In addition, EPA will initiate a peer review to evaluate the
                            methodologies and assumptions used to calculate the
                            benefits associated with ENERGY STAR products, thus further
                            strengthening the value and integrity of the program.
  About ENERGY STAR Product Specification Revisions
  When the ENERGY STAR program was established in 1992,
  EPA offered the label for two products—computers and
  monitors. Since then, the program has grown to include
  more than 60 product categories. Through the ENERGY
  STAR program, EPA provides value to consumers by
  enabling them to easily identify energy-efficient products.
  To achieve this, EPA sets specifications that may only be
  met by the most efficient products. For a product to qualify
  for the ENERGY STAR label, it must meet a unique set of
  specifications to guarantee that the product:
  •  Is energy-efficient
  •  Is cost-effective
  •  Maintains product performance or features

  Revising ENERGY STAR Specifications
  While EPA continues to expand its suite of labeled products,
  it also revises numerous specifications to ensure that the
  ENERGY STAR label remains meaningful to consumers. Over
  the years, specifications for the majority of the product
  categories have been revised to achieve additional energy
                            savings (see Table 8). Each year, EPA reviews current
                            product specifications and carefully considers the following
                            questions to assess whether a specification revision is
                            appropriate:

                            •  Can significant additional energy savings be realized
                               nationally?
                            •  Can energy consumption and performance be measured
                               and verified with testing?
                            •  Can product or service performance be maintained or
                               enhanced with increased energy efficiency?
                            •  Will purchasers be able to recover an additional
                               investment in increased energy efficiency within a brief
                               period of time?
                            •  Can additional energy efficiency be achieved without
                               unjustly favoring one technology?
                            •  Will ENERGY STAR labeling effectively differentiate
                               products and services and be visible to purchasers?
                            EPA carefully weighs these questions to decide which
                            products warrant specification revisions.
  TABLE 8. EPA Maintains Efficiency Standards with 125 Product Specifications and Revisions
   PRODUCT TYPE
  —: Not applicable
NUMBER OF
 PRODUCT
CATEGORIES
TOTAL NUMBER OF
 SPECIFICATIONS
 SPECIFICATIONS <     SPECIFICATIONS IN
3 YEARS OLD AS OF   PROCESS OF REVISION
 DECEMBER 2008            IN 2008
Consumer Electronics
Office Equipment
HVAC
Commercial Food Service

Equipment
Lighting
Building Envelope
Appliances
Other
11
9
9

g

5
2
2
3
30
33
21

6

18
5
5
7
9
9
5

2

5
1
3
3
1
1
1

1

—

-
i
                                                                                                                   23

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   ENERGY STAR IN  THE RESIDENTIAL SECTOR
   The energy used in homes currently accounts for nearly 17 percent of U.S. GHG emissions. To help
   meet the nation's goal of improving energy efficiency and reducing emissions, it is critical for the
   building and contracting industry, homeowners, and renters to make every effort to reduce the energy
   used in homes. Through ENERGY STAR, EPA offers many tools and resources to help households and
   the housing industry learn how to increase energy efficiency. Key 2008 program highlights included:

   •  More than 100,000 ENERGY STAR qualified homes were built in 2008—over 17 percent of all new
      homes built in 2008—bringing the total number of qualified homes nationwide to nearly 940,000.
   •  More than 12,000 homes were retrofitted through Home Performance with ENERGY STAR in 2008, for
      a total of over 50,000 homes across more than 25 states or regions of the country.
   •  More than 6,500 builders were active ENERGY STAR partners in 2008.
   •  Several national production builders committed to building 100 percent of their homes to meet
      ENERGY STAR guidelines.
24

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                                                                                   ENERGY STAR: RESIDENTIAL SECTOR
FIGURE 9. Home Performance with ENERGY STAR Spreads Across the Country
                                            NORTH DAKOTA
                                                      MINNESOTA
                                                         /T\
                                            SOUTH DAKOTA       ^K)  WISCONSIN
                                                                                  NORTH CAROLINA
                                                                                SOUTH CAROLINA
                I States with Home Performance
                 with ENERGY STAR Programs
1 Metro Areas with Home Performance
 with ENERGY STAR Programs
 Achievements in 2008
ENERGY STAR Home Improvement
Low-cost efficiency improvements in an existing home that
go beyond simply choosing energy-efficient products can
save households between 20 and 30 percent on their energy
bills—or $450 to $650 per year—while improving the comfort,
indoor air quality, value, and safety of their homes. Since
2001, EPA has designed programs that help households
capture the benefits of reducing home energy consumption.
EPA offers a range of tools and resources for consumers
to learn about their home improvement options. EPA also
works with utilities and other program sponsors who provide
incentives and training so that more  and more households
can take advantage of improving home energy efficiency.

Expanding Home Performance with ENERGY STAR. Home
Performance with ENERGY STAR (HPwES) is a defined
service for comprehensive, whole-house energy efficiency
improvements through a network of  contractors trained
      in whole-house assessments. Regional HPwES sponsors
      are responsible for the third-party quality review of the
      contractors' work. Over the past 8 years, EPA has worked
      with sponsoring partners such as state energy offices,
      utilities, and not-for-profits to implement HPwES in more than
      25 markets (see Figure 9). By the end of 2008, over 50,000
      homes had been retrofitted through HPwES programs.

      In 2008, EPA recognized more than 20 HPwES contractors
      with the ENERGY STAR Century Club awards for each
      completing 100 or more home performance jobs.  In  addition,
      EPA and DOE hosted the National HPwES Symposium, which
      brought the program's diverse sponsors together for the fifth
      consecutive year to share valuable lessons and discuss ways
      to expand the delivery of HPwES. Representatives from more
      than 32 states and Canada participated, demonstrating the
      growing interest in HPwES as a solution for improving the
      efficiency of existing homes.
                                                                                                                 25

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    ENERGY STAR and Other Climate Protection Partnerships 2008 Annual Report
    Launching ENERGY STAR HVAC Quality Installation Guidelines.
    EPA estimates that more than one-half of all air conditioners
    in U.S. homes underperform by as much as 30 percent due to
    improper installation. Launched by EPA in 2008, ENERGY STAR
    HVAC Quality Installation uses guidelines approved by the
    American National Standards Institute (ANSI)—developed
    through the Air Conditioning Contractors of America (ACCA)—
    to help ensure that consumers receive a properly sized
    heating,  ventilating, and air conditioning (HVAC) system with
    sealed ducts, proper refrigerant charge, and optimized air
    flow. EPA partnered with utilities to implement this program in
    four markets.

    Offering Home Energy Online Assessment Tools. EPA updated
    its key home  improvement assessment tools by making it
    easier than ever for homeowners to use the ENERGY STAR
    Home Energy Yardstick to assess the current efficiency of
    their home (on a scale of 1 to 10). The Home Energy Yardstick
    now links users directly to the ENERGY STAR Home Advisor,
    which offers  customized recommendations on boosting a
    home's energy efficiency based on its location.  Through  2008,
    the Home Energy Yardstick had about 200,000 visitor sessions
    and the Home Advisor was completed by nearly 70,000 users.

    EPA also launched a new online quiz to educate homeowners
    about best practices for maintaining their home's  HVAC
    system. Users are first asked how they currently maintain
    their system. Based on the answers, the interactive quiz
    encourages them to implement additional best practices to
    help keep the HVAC system operating efficiently. By acting on
    these recommendations, homeowners can save as much as
    20 percent on their annual energy bills.

    These online tools complement EPA's ENERGY STAR @
    home interactive tool and two popular print resources: the
    Guide to Energy Efficient Heating and Cooling and the Do-lt-
    Yourself Guide to Sealing and Insulating (downloadable from
    energystar.gov/publications)—giving consumers a variety of
    helpful, easy-to-use resources whenever they need them.

    ENERGY STAR for New Homes
    Building  efficiency into homes when they are being
    constructed is one of the lowest cost options for improving
    residential  building efficiency across the country.  ENERGY
    STAR qualified homes offer buyers comfortable homes that
    are 20 to 30 percent more efficient than those built to code.
    The annual savings from lower energy bills can more than
z
 FIGURE 10. More than 940,000 Homes Nationwide Bear the
 ENERGY STAR Label

  1,000,000
   900,000
                                            ^/
   800,000
 |  700,000
 o
^  600,000
|  500,000
z  400,000
   300,000
   200,000
   100,000
        0
         2000   2001   2002  2003  2004  2005  2006  2007*  2008*
         » Cumulative Homes Built       • Annual Homes Built

   ^Reflects transition to more stringent specification and slow down in U.S. housing starts.

offset the slightly higher mortgage some buyers may have in
order to pay for the built-in efficiency improvements.
Success continued for ENERGY STAR for New Homes in 2008,
despite the downturn in the new housing market, as described
below and shown in Figures  10 and 11.

Growing Outreach Partnerships. Through the Outreach
Partnership, ENERGY STAR partners pool their advertising
resources to increase consumer demand for ENERGY STAR
qualified homes in their market and enable participating
builders to distinguish themselves as environmental and
energy efficiency leaders. EPA, in turn, offers a host of
materials and support to help these partners implement a
robust advertising campaign. In 2008, Outreach Partnership
activities were organized in nearly 40 markets, with more than
1,000 participating partners—a record number. Across all
markets, partners contributed more than $2 million to support
outreach efforts.

Partnering with Affordable Housing Stakeholders. As part of
its ongoing efforts to improve access to energy-efficient
new homes for lower income families, EPA has formed
partnerships with affordable housing stakeholders at the
federal, state, and local levels:
26

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                                                                                   ENERGY STAR: RESIDENTIAL SECTOR
FIGURE 11. ENERGY STAR Qualified New Homes Gaining Market Share
                                             Increasing Market Percentage
                                                                                                 NEW HAMPSHIRE
                                                                                                 MASSACHUSETTS

                                                                                                 ' RHODE ISLAND
                                                                                                CONNECTICUT
                                                                       12-20%
                                                                                   >20%
•  Housing Finance Agencies. In 2008, EPA's ENERGY STAR
   program provided 28 state housing finance agencies
   (HFAs) with recommendations and cost/benefit analyses
   to help them include energy efficiency measures in their
   criteria for competitively allocating low-income housing
   tax credits (LIHTC) to affordable housing developers. By
   the end of 2008, at least seven state HFAs—Connecticut,
   Delaware, Nevada, New Jersey, Pennsylvania, Utah, and
   Washington—required that all new homes funded via
   LIHTC programs meet or exceed ENERGY STAR qualified
   home guidelines. This represents the annual construction
   of more than 7,500 new affordable housing units.

•  Federal Agencies. EPA partnered with DOE and the U.S.
   Department of Housing and Urban Development (HUD)
   to implement an Energy Action Plan that will reduce
   energy consumption in HUD-funded and HUD-insured
   housing. HUD promotes the construction of ENERGY STAR
   qualified homes in its various  grant programs, including its
   Community Development Block Grant (CDBG) and HOME
   programs. In 2008, more than 6,000 ENERGY STAR qualified
   homes were built using CDBG or HOME funds. Of all the
   homes constructed using HOME funds, 35 percent earned
   the ENERGY STAR.
•  Habitat for Humanity International. Habitat for Humanity
   (HFH) International has made the ENERGY STAR
   guidelines for new homes part of its recommended
   construction specifications for all HFH affiliates. Together,
   more than 300 HFH affiliates constructed over 1,100
   ENERGY STAR qualified homes in 2008.

Piloting an ENERGY STAR Mortgage Program. In 2008, EPA
launched the ENERGY STAR Mortgage Program in Maine and
Colorado, a pilot study to offer financing for the purchase of
a new home or for making energy efficiency improvements
in existing homes. EPA's ENERGY STAR Mortgage Program—
developed in collaboration with DOE, the Energy Programs
Consortium, state energy  and housing  agencies, and the
Ford and Surdna Foundations—allows qualified borrowers
to incorporate the cost of energy efficiency improvements
as part of their mortgage, while providing them with reduced
borrowing  costs such as a lower interest rate or reduced
                                                                                                                 27

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    ENERGY STAR and Other Climate Protection Partnerships 2008 Annual Report


    closing costs. To qualify, borrowers must be in the process
    of purchasing an ENERGY STAR qualified home or making
    energy efficiency improvements to their home via an HPwES
    program or a Weatherization Assistance Program. Lenders
    are required to undergo a third-party review, approval, and
    oversight process to participate.
    What To Expect in 2009 and Beyond
    Home Improvement
    •  ARRA provides over$18 billion in energy efficiency funding.
      HPwES can help recipients of ARRA funding create jobs,
      save energy, and build energy efficiency infrastructure for
      the long term through the expansion of job opportunities
      for contractors. This capital, coupled with new federal
      tax credits for homeowner energy efficiency investments,
      creates an environment that can help HPwES expand its
      reach in 2009 and beyond.
    •  EPA forecasts that more than 20,000 additional homes will
      be improved through HPwES in 2009, bringing the total
      number of retrofitted homes nationwide to nearly 70,000.
    •  EPA expects to launch seven new HPwES programs
      in California, Delaware, Iowa, New Hampshire, North
      Carolina, Texas, and Virginia.

    •  EPA will pilot a new approach to implementing HPwES by
      partnering directly with home performance contractors.
      The proposed pilot market will be the northern Virginia
      suburbs of Washington, DC. If successful, the pilot program
      will allow HPwES to tap the private sector and expand to
      meet market demand instead of relying heavily on public
      funding.
New Homes
•  EPA forecasts that market share for ENERGY STAR qualified
   homes will approach 20 percent in 2009 and that the one
   millionth ENERGY STAR home will be constructed in 2009.
•  To ensure that ENERGY STAR continues to represent a
   meaningful improvement in efficiency over homes that
   are built to code and standard practices, EPA will finalize
   new, more rigorous guidelines for ENERGY STAR qualified
   new homes in 2009. These third-generation guidelines will
   become fully effective  in January 2011.
•  EPA will continue to explore more stringent versions of
   an ENERGY STAR qualified home as a roadmap to future
   specifications.
28

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ENERGY STAR IN  FI-IS COMMERCIAL SECTOR
Commercial buildings now have a lead role in the nation's urgent effort to reduce energy consumption,
create new jobs, and fight global climate change because commercial buildings use nearly 20 percent
of the total energy consumed in the United States and add almost the same proportion of GHG
emissions to the atmosphere. Through the ENERGY STAR program, EPA is establishing a new paradigm
for building owners to reduce building energy use, save money, and protect the environment. EPA also
offers recognition opportunities to showcase their energy efficiency achievements.

In 2008, with the help of ENERGY STAR, partners in the commercial building sector made great strides in
improving energy efficiency. These gains contributed directly to reducing the nation's GHG emissions.
Key program highlights included:

• More than 500 new commercial and public organizations joined ENERGY STAR, for a total of almost
  2,500 partners.
• Nearly 3,300 buildings met EPA's high-efficiency criteria and earned the ENERGY STAR, for a total of
  more than 6,200.
• More than 25 partners earned ENERGY STAR recognition for achieving important energy-saving
  milestones of 10, 20, or 30 percent across their entire portfolio of buildings, bringing the total to 65.
• More than 75 new building projects achieved Designed to Earn the ENERGY STAR, for a total of 130.
                                                                                      29

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    ENERGY STAR and Other Climate Protection Partnerships 2008 Annual Report
     Achievements in 2008
    Growing National Commitment to Energy
    Efficiency
    More commercial and industrial organizations than ever
    before chose to partner with EPA in 2008 as an important
    step toward improving energy efficiency and lowering energy
    costs.

    •   Over 500 commercial and public organizations joined
       ENERGY STAR—about triple the new partners in any
       previous year—committing more than 2 billion square feet
       of floor space to be assessed and improved.
    •   More than 25 utilities or other energy efficiency program
       sponsors (EEPS) joined ENERGY STAR, bringing the total to
       about 120. These EEPS, along with more than 1,900 Service
       and Product Providers (SPPs), offered their customers
       valuable energy efficiency services that incorporate
       ENERGY STAR tools and resources. SPPs assisted more
       than 1,200 client buildings in earning the ENERGY STAR and
   supported almost 1,100 client buildings in making at least a
   10-point energy performance improvement during the year.
•  Nearly 1,800 new participants joined either the ENERGY
   STAR Congregations or Small Business Networks, bringing
   total participation to more than 5,000 members in both
   networks.

Energy Performance Ratings: Driving
Improvement
Benchmarking energy use is an important first step in
assessing a building's energy performance for a given year
and measuring the results of ongoing efforts to improve
energy efficiency. EPA's online energy management tool.
Portfolio Manager, enables building owners and managers
to measure and benchmark the energy use of individual
commercial buildings, rate all eligible buildings' energy
efficiency on a scale of 1 to  100 against a database of
similar buildings nationwide, track energy performance over
time as improvements are made, and target investments in
    FIGURE 12.  Amount of Rated Floor Space by State
                                                   NORTH DAKOTA
                                                   SOUTH DAKOTA
                                                        rmml
                                                        ANSAS
                                           NEW HAMPSHIRE
                                           MASSACHUSETTS

                                             RHODE ISLAND
                                           CONNECTICUT
                                                  Increasing Amount of Floor Space Rated
                                                      <25
                                                                 25-75         76-150
                                                                 (In Millions of Square Feet)
                                                                                          >150
30

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FIGURE 13. 16 Percent of Commercial Square Footage is
Rated in 2008
    12,000
    10,000 -
              2005
           • Offices
             K-12 Schools
           • Retail
             Hospitals
2006
2007
2008
            Hotels
            Supermarkets/
            Grocery Stores
            Other*
'Includes Bank/Financial Institutions, Warehouses/Storage, Courthouses, Medical Offices,
and Residence Halls.
energy efficiency. Increasingly, state and local government
agencies, professional associations, and vendors are using
Portfolio Manager and ENERGY STAR resources to help their
constituents, members, and clients reduce energy use in
buildings. Cumulative efforts of all partners have resulted in:

•  More Floor Space Rated. More than 80,000 buildings have
   been rated, which represents more than 11.5 billion square
   feet and 16 percent of total U.S. floor space (see Figures
   12 and 14, p. 32). This cumulative total includes nearly 65
   percent of acute care hospitals, more than 40 percent of
   offices (including banks), almost 25 percent of schools, 25
   percent of supermarkets, over 15 percent of retailers, and
   almost 20 percent of hotels/motels and residence halls.11
•  Two Sectors Leading the Way. Offices and schools led the
   way in 2008 by nearly doubling the square footage rated
   the previous year (see Figure  13).
•  Water Utilities Getting on Board. Managers of almost
   200 wastewater facilities have benchmarked their energy
   use. Many building owners have taken the extra step of
                                                                                      ENERGY STAR: COMMERCIAL SECTOR
   tracking building water use along with energy use. As
   a result, data from more than 19,000 water meters were
   being tracked in Portfolio Manager by the end of 2008.

Spreading the Word
Since 2005, more than 2,400 organizations and  individuals
have joined EPA's ENERGY STAR Challenge to improve the
efficiency of the nation's buildings by 10 percenter more
as measured by EPA's energy performance rating system.
In 2008, over 1,600 organizations and individuals took EPA's
ENERGY STAR Challenge. Many organizations worked with
their members and constituents to help benchmark building
energy use, set savings goals, and track  energy performance
reductions overtime. State and local governments, which
represent the largest group of Challenge participants, staged
a variety of campaigns and started programs to incentivize
the use of ENERGY STAR tools in 2008. Examples include:

•  The City of Louisville's Kilowatt Crackdown
•  The City of Chicago's Green Office Challenge
•  The Wisconsin Lieutenant Governor's ENERGY STAR
   School Challenge
•  The District of Columbia's Clean and Affordable Energy Act
   of 2008, which mandates ENERGY STAR benchmarking and
   public disclosure of the results

Recognizing Top  Performing  Buildings
Almost 3,300 top performing buildings earned the ENERGY
STAR in 2008—for a cumulative total of more than 6,200
qualified buildings nationwide (see Figure 15, p. 32).  For
the first time, more than one billion square feet of building
space carried the ENERGY STAR. These 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. Typically, they use 35
percent less energy than average buildings. In 2008:

•  Top U.S. Cities for Qualified Buildings. EPA unveiled its
   first list of U.S. metropolitan areas with the  highest number
   of buildings that have earned the ENERGY STAR. The  list
   was topped by Los Angeles, San  Francisco, Houston,
   Washington, DC, Dallas-Fort Worth, Chicago, Denver,
   Minneapolis-St. Paul, Atlanta, and Seattle.
' Calculated using CBECS 2003, see El A 2006.
                                                                                                                     31

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    ENERGY STAR and Other Climate Protection Partnerships 2008 Annual Report

    •  Top Performing Sectors. Offices and schools accounted
       for more than 70 percent of the buildings that earned the
       ENERGY STAR in 2008. Schools more than tripled, while
       offices more than doubled. Retail companies also made
       gains in qualifying for the ENERGY STAR with Kohl's, JC
       Penney, and Verizon Wireless stores leading the way.
    •  Showcasing ENERGY STAR Qualified Buildings. Orbitz
       began highlighting  ENERGY STAR qualified hotels in its
       listing services, with Travelocity and AAA planning to do
       the same in 2009. CoStar continued to identify ENERGY
       STAR labeled buildings on its listing service.

    Honoring Partners' Milestones in Improving
    Energy Efficiency
    EPA recognizes partner organizations when they reach
    significant energy efficiency milestones by distinguishing
    them as ENERGY STAR Leaders or honoring them with an
    annual ENERGY STAR  award.

    •  ENERGY STAR Leaders. More than 25 partners were
       recognized as ENERGY STAR Leaders in 2008—with about
       60 percent of them meeting their milestones for the first
    FIGURE 15. More Than 6,200 Buildings Have Earned the ENERGY STAR
       time. ENERGY STAR Leaders have reduced the energy
       use across their building portfolios by 10,20, or 30 percent

    FIGURE 14. Steady Growth in Building Space Benchmarked
    and Labeled (Sq. R. in Billions)
        12
     -Z 10
           2001    2002   2003   2004   2005   2006   2007   2008

           • Sq. Ft. Benchmarked     •  Sq. Ft. Labeled
                                                                                             VERMONT    MAINE
                                                                                                     NEW HAMPSHIRE
                                                                                                     MASSACHUSETTS

                                                                                                      RHODE ISLAND
                                                                                                    CONNECTICUT
                                           Increasing Number of Qualified Buildings
32
                                               <20
20-50         51-100
  (Number of Buildings)
                                                                                     >100

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                                                                                   ENERGY STAR: COMMERCIAL SECTOR
   or have top performing portfolios, as verified through
   EPA's energy performance rating system. School districts
   account for two-thirds of the total 65 Leaders that manage
   nearly 325 million square feet across almost 4,900 facilities.
•  ENERGY STAR Awards.  EPA recognized 11 commercial
   organizations for Sustained Excellence, nine for ENERGY
   STAR Partner of the Year, and one for Excellence in
   Promotion.

Delivering Cost-Effective Services
EPA advanced its work with utilities in 2008, helping them
deliver energy efficiency programs and incentives more cost-
effectively to their customers. For example:

•  Transferring Utility Bill  Data Easily. For the first time,
   utilities were able to exchange and download their
   customers' utility bill data directly into EPA's Portfolio
   Manager. Led by PG&E, which added the Automated
   Benchmarking Services (ABS) page to its Web  site,
   California utilities benchmarked about 2,100 buildings
   through ABS.
•  Creating New Applications. ComEd developed a new.
   Web-based application—Whole Building Energy Data
   System—to overcome the persistent barrier of accessing
   tenant energy data to enable whole-building energy
   performance ratings.
•  Launching New Promotions. Xcel Energy in Minnesota
   offered an  ENERGY STAR Building Assessment to
   customers and launched the "Your ENERGY STAR, Our
   Expertise" outreach campaign.

Acknowledging Architects for Designing
to Save Energy
EPA continues to work in partnership with the American
Institute of Architects (AIA) to help its members reach the
2030 goal by designing buildings to use at least 50 percent
less fossil fuel than average buildings. In 2008, more than 75
projects achieved Designed to Earn the ENERGY STAR, for
a cumulative total of 130. Each of these future buildings was
designed with the intent of earning the ENERGY STAR after
occupation when sufficient energy-use verification data are
available.
 What To Expect in 2009 and Beyond
Energy Performance Rating
•  Expand the energy performance rating system to add
   a new Religious Worship model and continue efforts to
   develop a Data Center model. EPA will update the existing
   models for K-12, Hotel/Motel, and Warehouse, as well as
   add a tracking capability for Multi-Family Housing.
•  Enhance Portfolio Manager capabilities to incorporate
   onsite and offsite renewable energy into the emissions
   inventory and rating. EPA will also add a reporting feature
   that will enable users to access and customize reports on
   the information they are tracking in the tool.
•  Foster and support automated utility data transfer pilots in
   several areas outside California.

ENERGY STAR Challenge
•  Help replicate energy efficiency competitions, like the
   Kilowatt Crackdown, in several other cities.
•  Promote Wisconsin's  ENERGY STAR Challenge  model
   to encourage more K-12 school districts to partner with
   ENERGY STAR and benchmark their schools' energy
   use. EPA will continue to leverage the activities of key
   service providers in the K-12 sector to recruit more school
   districts and support their efficiency efforts.

 State and Local Legislative Support
 •  Provide  supportto state and local governments drafting
   legislation mandating building benchmarking and
   disclosure of results.
 •  Promote ENERGY STAR as a platform for governments
   receiving ARRA stimulus support. EPA will provide
   resources—including Webinars and a Benchmarking
   Starter Kit—to inform recipients about the benefits of
   ENERGY STAR and help them start using EPA tools.

 Partnerships
 •  Introduce and expand ENERGY STAR into the
   entertainment sector by working with Major League
   Baseball, convention center groups, and museums to
   identify best practice energy management strategies and
   benchmarks.
 •  Work with the National Restaurant Association to
   support  its launch of a tailored ENERGY STAR Challenge
   campaign.
                                                                                                                 33

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   ENERGY STAR IN    Ml   INDUS! RIAL SECTOR
   In recent years, a confluence of three events has led to the strong increase in corporate participation in
   EPA's ENERGY STAR program for industry. The growing national emphasis on GHG emissions reporting,
   highly volatile energy markets, and a difficult economy have all motivated manufacturers to improve
   industrial energy efficiency.

   Companies are partnering with EPA to learn how to build EPA- and industry-recommended strategies
   into their corporate energy management programs and ramp up their plant-level implementation of
   best practices. The industrial sector is responsible for about one-third of U.S. GHG emissions, and
   manufacturers  are more aware than ever that energy efficiency is the first and most cost-effective step
   for minimizing energy risks and reducing the emissions that contribute to global climate change.

   Through ENERGY STAR, EPA helps industrial companies develop robust energy programs that create
   the necessary infrastructure for cost-effective GHG management. Key accomplishments in 2008
   included:

   • Expanded ENERGY STAR Industrial Focuses to include a Steelmaking Focus, for a total of 16 Focuses.
   • Increased participation in the ENERGY STAR peer exchange network by 30 percent.
   • Awarded the ENERGY STAR to 28 plants—including eight for the first time—bringing the total to 45.
34

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 Achievements in 2008
                                                                                           ENERGY STAR: INDUSTRIAL SECTOR
Positioning Industries To Succeed
EPA's Industrial Focuses directly address barriers to energy
efficiency by providing industry-specific energy management
tools and resources. In 2008, EPA worked closely with
specific sectors to (1) identify energy-saving practices
and technologies, (2) develop the first-ever national plant
energy performance benchmarks for many sectors, and
(3) encourage energy management leaders within each
industry to participate in the network of companies that share
successful energy management strategies.

As of 2008,16 major industries were actively participating in
EPA's Industrial Focuses (see Table 9). Highlights include:

•  Steel Industry. EPA engaged 95 percent of integrated steel
   production companies in the U.S. steel industry. This first
   Industrial Focus for steel concentrated on the feasibility of
Table 9.  Summary of EPA ENERGY STAR Industrial Focuses
   developing a plant energy performance indicator (EPI) for
   integrated mills.
•  Pharmaceutical Industry. EPA, in cooperation with the
   pharmaceutical industry, produced a final pharmaceutical
   manufacturing plant EPI. As a result, the energy efficiency
   of individual pharmaceutical manufacturing plants can
   be measured, tracked, and rated on a national level.
   Companies can use the  EPI to set meaningful improvement
   goals and measure progress overtime.
•  Petrochemical Industry. Working with U.S. petrochemical
   producers, EPA finalized a new guide on energy efficiency
   opportunities in petrochemical plants. It presents
   energy efficiency practices and technologies that can
   be immediately implemented in petrochemical plants,
   without requiring long-term research. This guide will help
ENERGY
YEARS PEER EXCHANGE INDUSTRY PERFORMANCE
FOCUS ACTIVE SCOPE OPPORTUNITY ENERGY GUIDE INDICATOR
Cement Manufacturing
Corn Refining
Food Processing
• Cookies & Crackers
•Juice
• Potato Products
•Tomato Products
Glass Manufacturing
• Fiberglass
• Flat Glass Products
• Container Glass Products
Motor Vehicle Manufacturing
5
6
3

3
7
Petrochemical Manufacturing 2
Petroleum Industry
Pharmaceuticals
Pulp & Paper
Steel
Water/Wastewaster
4
4
2
New
3
75% of U.S.-based clinker1*
production capacity
95% of U.S.-based refining
capacity
80% of U.S. processed fruit,
vegetable, and grain sales

50% of U.S. flat, container,
and fiberglass sales
95% 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
95% of integrated production
40% of the total U.S.
population represented
•
•
•

•
•
•
•
•
•
•
•
Published
Published
Published

Published
Published
Published
Published
Published
In process
Released
Released
Draft

Draft
2nd version released
Draft
Private system
recognized by EPA
Released
Draft
In process Exploring options
In process
Portfolio Manager
' Clinker is the output from a cement kiln.
*Source:U.S. Census Bureau, December 2005 and November 2006.
                                                                                                                     35

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ENERGY STAR and Other Climate Protection Partnerships 2008 Annual Report
       overcome what has been an adoption barrier—lack of
       information.
    •   Other Industrial EPIs. EPA moved forward with seven
       industries—flat glass, container glass, juice, frozen potato
       products, tomato products, fiberglass, and integrated
       paper mills—to revise draft versions of plant EPIs based
       on industry reviews. EPA collaborates closely with all
       focus industries on EPI development and testing prior to
       finalization.
    •   Food Industry. Responding to requests from the food
       industry, EPA released an initial EPI for baked cookies and
       crackers plants for industry testing and review.
    •   Laboratory Rating. At the request of the pharmaceutical
       industry, EPA launched a new initiative under the
       Laboratories for the 21st Century program to develop an EPI
       for laboratories.

    Incorporating Advanced Strategies into Energy
    Management
    U.S. industry looks to EPA's ENERGY STAR program for
    guidance on implementing corporate  energy management
    programs. As manufacturers expand and improve their own
    capabilities to govern energy use internally,  EPA works
    with them to develop the long-term strategies needed to
    comprehensively change the efficiency of their entire energy
    value chain (the external factors). These strategies will
    influence the continuous improvement of energy performance
    upstream of, within, and downstream of their business.
    Advances in 2008 included:

    •   Supply Chain Working Group. EPA initiated a workgroup of
       partners interested in influencing the energy efficiency of
       their suppliers. The Supply Chain Working Group (SCWG)
       identifies new energy management strategies, promotes
   best practices, and enables partners to share supply-side
   experiences. The potential reach of SCWG is considerable;
   for some partners, suppliers can number into the tens of
   thousands.
•  Cement Industry Suppliers. EPA expanded the existing
   Cement Focus to address upstream energy use in the
   industry because cement manufacturing equipment
   uses vast amounts of energy. Through its ENERGY STAR
   Focus, the cement industry formulated a set of equipment
   efficiency metrics, which companies may request their
   suppliers  to aim for in the future.
•  Suppliers and Customers. EPA informed ENERGY STAR
   industrial  partners about ways of engaging their suppliers
   to start influencing and reducing the embedded energy of
   products  coming into their businesses, and encouraged
   the partners to inform their customers of methods and
   techniques for managing  energy in their businesses. As a
   result, major manufacturers have added new dimensions
   to their corporate energy programs to  address the impacts
   of their energy value chain.
•  The Climate Disclosure Project. EPA collaborated with the
   Climate Disclosure Project to hold two workshops for
   companies and investors, focusing on best practices in
   carbon disclosure and analysis.

Expanding and Leveraging a Powerful Network
of Manufacturing Partners
All ENERGY STAR partners make a commitment to
continuously improve energy efficiency, use ENERGY STAR
tools and resources, and communicate the value of energy
efficiency. A  key set of industrial partners has demonstrated
advanced strategies in their corporate energy management
systems and  form the base of support for the industrial
    TABLE 10. 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 2008
15
9
4
0
28
39,800,000 mmBtu
TOTAL PLANTS
EARNING LABELS
19
15
8
3
45
117,400,000 mmBtu*
    "Represents cumulative savings for labels earned since 2006.
36

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                                                                                       ENERGY STAR: INDUSTRIAL SECTOR
program. EPA leverages these leading partners to reach out
to more manufacturers and to support newer participants
with the aid of mature ones. Key accomplishments in 2008
included:

•  Partnerships. The number of ENERGY STAR industrial
   partners grew to more than 550.
•  Peer Exchange Network. EPA's peer exchange network
   increased by 30 percent; the 800 participants represented
   nearly 300 organizations. Topics discussed within
   the network included engaging employees in energy
   management, project financing strategies, and saving
   energy through water efficiency.
•  Annual  Meeting. An annual meeting  of ENERGY STAR
   industrial partners and focus industries was held in
   October 2008. Eight focus industries held in-person
   meetings, and more than 80 companies were represented.
•  Mentoring. EPA coordinated 18 mentoring relationships
   between industrial partners through which more
   experienced partners shared best energy management
   techniques to improve efficiency across sectors and
   strengthen the partnership.

Recognizing Leaders in Industrial Energy
Management
Continuous improvement of energy efficiency is achieved
through high-level organizational commitment and the
dedication of energy managers, resulting in the enhanced
quality of corporate energy management. Recognition of
successful programs and plants is a major motivating force
for positive change. A number of organizations received
 What To Expect in 2009 and Beyond
Partnerships
•  Continue to reach small- and medium-sized manufacturers
   by working with NAM to engage its membership in energy
   efficiency and ENERGY STAR.
•  Continue to support peer exchange forums for the
   Industrial Focus sectors and convene meetings as new
   Focuses are created.
•  Recognize excellence in industrial energy management
   through the annual Partner of the Year Awards.
Tools and Resources
•  Continue the Industrial Focuses with the 16 participating
ENERGY STAR recognition for their 2008 accomplishments:

•  ENERGY STAR Awards. EPA honored seven industrial
   partners for Sustained Excellence in Energy Management
   and six as ENERGY STAR Partner of the Year (see Figure 6,
   p. 17).
•  Plant-level Recognition for Excellence. Twenty-eight
   industrial plants earned the ENERGY STAR in 2008,
   including eight plants forthe first time. A total of 45 plants
   have earned the label since 2006 (see Table 10).

Increasing Outreach through Strategic Alliances
EPA's relationships with key not-for-profit organizations
allowed EPA access to more channels for disseminating
information  about ENERGY STAR tools and resources to a
wider group of manufacturers in 2008.

•  National Association of Manufacturers. EPA signed a
   memorandum of understanding (MOD) with the National
   Association of Manufacturers (NAM) to promote energy
   management among NAM members. NAM membership
   includes nearly 14,000 industrial companies and
   associations.
•  Association of Energy Engineers. EPA partnered with
   the Association of Energy Engineers (AEE) to organize
   sessions specifically tailored to the  needs of industry at
   the AEE annual World Energy Engineering Congress.
•  Consortium for Energy Efficiency. EPA and the Consortium
   for Energy Efficiency (CEE) Industrial Energy Management
   Committee worked together with member utilities to
   promote  energy management best practices among
   manufacturers.
   sectors and subsectors and finalize four EPIs in 2009—two
   in food processing and two in glass production.
•  Finalize an energy guide for the pulp and paper industry.
•  Continue collaboration with EPA's Laboratories forthe 21st
   Century program to develop a laboratory benchmark.
•  Expand the program for labeling energy-efficient U.S.
   plants with the ENERGY STAR. EPA expects that certain
   plants in the food processing and glass industries will be
   eligible to earn the ENERGY STAR by the end of 2009.
•  Customize online and print energy efficiency guidance for
   small- and medium-sized manufacturers.
                                                                                                                 37

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CLIMATE  LEADERS
CLIMATED
LEADERS.
U.S. Environmental Protection Agency
                      EPA's Climate Leaders program is an industry-government partnership
                      that reduces GHG emissions by developing standardized GHG emissions
                      management practices among industry and providing incentives and technical
 assistance to companies so they take corporate-level action on climate change. For example, EPA
 recognizes partners when they set and achieve their climate protection goals. Climate Leaders partners
 represent a broad range of industrial and commercial sectors—including manufacturing, cement, forest
 products, Pharmaceuticals, utilities, information technology, and retail (see Figure 16). They operate in
 all 50 states, and many are global companies. In partnering with Climate Leaders, companies commit to
 reducing their impact on the global environment by:
 •  Completing a corporate-wide inventory of their GHG emissions
 •  Setting aggressive emissions reduction goals
 •  Annually reporting their progress to EPA

 Climate Leaders partners use  EPA's wide range of tools, expertise, and resources to make informed
 decisions about cost-effective strategies, investments, and clean energy options to reduce GHG
 emissions. In addition to tracking partners' progress toward their GHG emissions goals, EPA ensures
 the credibility of reported data by performing detailed reviews and making site visits. By participating
 in the program, companies create a lasting record of their accomplishments and identify themselves as
 corporate environmental leaders.

 Since its launch in 2002, Climate Leaders has reached a number of significant milestones while working
 to reduce GHG emissions and is poised to expand on this success in years to come (see Table 11, p. 40).
 In aggregate, Climate Leaders partners are projected to reduce emissions by 13.6 MMTCE per year.

-------
                                                                                                       CLIMATE LEADERS
 Achievements in 2008

•  The addition of 96 new corporate partners brought the
   number of Climate Leaders partners to 251, an increase
   of over 60 percent in just one year. The GHG emissions of
   the partners represent more than 8 percent of total U.S.
   emissions.
•  Six additional partners successfully achieved their
   initial Climate Leaders GHG reduction goals: 3M, Exelon
   Corporation, FPL Group, Mack Trucks, Public Service
   Enterprise Group (PSEG), and Raytheon. Of the 21
   companies that have met their initial goals in the program,
   16 thus far have committed to a second round of reduction
   goals.
•  Twenty-seven partners announced corporate GHG
   reduction goals in 2008, bringing the total number of
   partners that have announced corporate GHG goals
   through 2008 to 113. Almost half of the companies in the
   partnership have publicly announced GHG goals.
•  EPA estimates Climate Leaders partners will prevent
   approximately 13.6 MMTCE per year relative to business-
   as-usual scenarios. These reductions are equivalent to
   preventing the annual GHG emissions from more than 9
   million vehicles.
•  EPA received initial GHG inventories from 42 partners in
   2008,  bringing the cumulative total to 153. These inventories
   are a  necessary step for all partners before establishing an
   emissions reduction goal. EPA technical experts performed
   24 site visits in 2008 to review partner GHG inventories
   and Inventory Management Plans and to recommend
   improvements.
 EPA finalized offsets protocols, updated cross sector
 guidance, and released a calculator and guide for small
 businesses to reduce their carbon footprint. These tools
 join the suite of existing Climate Leaders resources that
 help companies manage and reduce their GHG emissions.
 All of these resources can be downloaded from the Climate
 Leaders Web site at www.epa.gov/climateleaders.
FIGURE 16. The 251 Climate Leaders by Sector

                           Other
                     Utilities   ,
                       11
             Healthcare   \
                14
        Financial
           21
  Materials
 Manufacturing
     34
  Consumer
   Goods
     69
            Information
             Services
                45
  Industrial
Manufacturing
     54
                                                                                                                    39

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ENERGY STAR and Other Climate Protection Partnerships 2008 Annual Report
    TABLE 11. Climate Leaders Key Program Indicators for 2004-2008 (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
86
15
2008
251
153
105
113
21
     What To Expect in 2009 and Beyond

    •  Continue to support corporate partners that are working
       toward achieving their GHG reduction goals and recruit
       additional companies from diverse sectors that are
       performing leading work on climate change.
    •  Expect 25 current partners to announce new corporate
       GHG emissions reduction goals.
    •  Begin  approving Climate Leaders GHG emissions offsets
       using EPA-specific protocols for partners.
    •  Release emissions guidance for production of aluminum,
       cement, and pulp and paper as well as updated versions
       of EPA sector-specific guidance on iron and steel
production, hydrofluorocarbon (HFC) and perfluorocarbon
(PFC) emissions from manufacturing refrigeration and
air conditioning equipment, and municipal solid waste
landfills. Guidance for optional sources, such as emissions
associated with corporate meetings and conferences, will
also  be released.
Participate in the development of an international protocol
for measuring supply chain and product-related GHG
emissions.
Incorporate the tenets of Climate Leaders program
protocols and lessons from partners' experiences into the
development of future climate policy.
40

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CLEAN ENERGY SUPPLY PROGRAMS
In 2001, EPA launched the Clean Energy Supply Programs, which include the Green Power Partnership
and the Combined Heat and Power (CHP) Partnership, to increase the adoption of clean energy
supply technologies across the United States. In the past 7 years, both of these partnership programs
facilitated the enormous growth of green electricity generation and environmentally beneficial CHP
nationwide. These programs work to transform the clean energy marketplace by breaking down
remaining market barriers, while providing partners with cost-effective solutions through:

• Technical resources
• Credible benchmarks
• Access to expertise
• Recognition for environmental leadership

By encouraging partners to invest in clean energy, the Green Power and CHP Partnerships help
reduce GHG emissions and criteria pollutants as well as help build demand for clean energy supply
technologies. The accomplishments of both programs are impressive. In 2008 alone, EPA's Clean Energy
Supply programs reduced GHG emissions by 6.1 MMTCE (see Figure 17, p. 42).
                                                                                    41

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ENERGY STAR and Other Climate Protection Partnerships 2008 Annual Report
    FIGURE 17. GHG Emissions Avoided by EPA's Clean Energy Supply Programs

         7
                 2002
2003
2004
2005
2006
2007
2008
    GREEN  POWER  PARTNERSHIP
    EPA's Green Power           KV.    ®EPA
    Partnership is a voluntary     ^^^
    program that encourages      ^•'^^ POWER
    organizations to buy green     ™r   * PARTNERSHIP
    power as an easy, sensible
    management choice to:

    •  Reduce the environmental impacts associated with
      purchased electricity use.
                             •   Hedge against volatile energy prices.
                             •   Demonstrate environmental leadership.
                             Partners include a wide variety of leading organizations,
                             such as Fortune 500 companies; small- and medium-sized
                             businesses; local, state, and federal government agencies;
                             and colleges and universities. The commitments of new
                             and existing program partners made 2008 an exceptionally
                             successful year for EPA's Green Power Partnership.
    Achievements in 2008
    •  Added 294 new partners, bringing the total to more than
      1,000. These organizations have committed to buying
      more than 16 billion kWh annually of green power, which
      is enough energy to run more than 1.6 million average
      American homes for one year (see Figure 18).
    •  Launched EPA's  Fortune 500 Green Power 2008-2009
      Challenge, a 2-year initiative focused on doubling the
      collective green power purchases of eligible Fortune
      500 corporations to exceed 10 billion kWh annually
      (see sidebar, p. 44). By the end of 2008,59 Fortune 500
                                companies had taken the Challenge and stepped up their
                                commitment to environmental stewardship by collectively
                                purchasing nearly 7.5 billion kWh.
                                Acknowledged 40 participating partners in EPA's College
                                & University 2007-2008 Green Power Challenge, which
                                concluded in April 2008. EPA ranked the green power
                                purchases of individual schools against others within their
                                athletic conference and calculated cumulative purchase
                                amounts among competing athletic conferences.
42

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                                                                                        CLEAN ENERGY SUPPLY PROGRAMS
   Presented 16 Green Power Leadership Awards to top
   purchasers of green power and onsite renewable power
   systems (see Table 12).
   Expanded the Green Power Communities initiative, which
   recognizes the collective action of local government.
                                  business, and citizens in buying green power through
                                  community-organized campaigns. In 2008,11 additional
                                  communities across the nation met EPA Green Power
                                  Community purchase requirements, bringing the total number
                                  of outstanding communities to 21.
Table 12. EPA Recognizes 16 Leading Green Power Partners in 2008
  ONSITE GENERATION
  •  Kohl's Department Stores
  •  Lundberg Family Farms
  GREEN POWER PURCHASING
  •  City of Houston, TX
  •  The Estee Lauder Companies, Inc. /
     Operations
  •  ING
  •  Merritt 7 Venture, LLC
  •  Oregon State University
  •  PepsiCo, Inc.
  •  The Philadelphia Phillies
  •  Powdr Resorts
  •  U.S. Air Force
            Menomonee Falls, Wl
            Richvale, CA

            Houston, TX
            New York, NY
            West Chester, PA
            Norwalk, CT
            Corvallis, OR
            Purchase, NY
            Philadelphia, PA
            Park City, UT
            Washington, DC
                      PARTNER OF THE YEAR
                      •   Bellingham, Washington
                         Community
                      •   Cisco Systems, Inc.
                      •   Intel Corporation
                      •   University of Pennsylvania
                      •   WhiteWave Foods Company
                                            Bellingham, WA

                                            San Jose, CA
                                            Santa Clara, CA
                                            Philadelphia, PA
                                            Boulder, CO
FIGURE 18. Green Power Purchases and Avoided GHG Emissions
        18 -

     ^ 16 -

     o 14 -
        12 -
     «  10
     <
     Q_
     <
         6  -
         4  -
         2  -
        MMTCEAvoided
        kWh Purchased
             2001
2002
2003
2004
2005
2006
2007
2008
                                                                                                                 43

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ENERGY STAR and Other Climate Protection Partnerships 2008 Annual Report
    What To Expect in 2009 and Beyond

   •  Continue to dismantle the market barriers that can stifle
      investment in clean electricity generation.
   •  Continue to support and recognize partners' green power
      purchases 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 third College & University
   Green Power Challenge.
      Fortune 500 Companies Meet the Green Power Challenge
      In January 2008, EPA challenged Fortune 500 companies
      to increase their green power purchases to more than 10
      billion kWh annually through the Fortune 500 Challenge,
      launched by EPA's Green Power Partnership. By the end
      of 2008,59 Fortune 500 companies had stepped up their
      commitment to environmental stewardship by collectively
      purchasing nearly 7.5 billion kWh. These purchases made
      2008 a banneryear and helped avoid the GHG emissions
      equivalent to those from nearly one million vehicles.
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 Green Power partners, and it
alone represents enough electricity to power nearly 130,000
average American homes each year. PepsiCo was second
on EPA's list of Fortune 500 companies, followed by Dell Inc.,
Whole Foods Market, The Pepsi Bottling Group, Johnson
& Johnson, Cisco Systems, Inc., Kohl's Department Stores,
Kimberly-Clark Corporation, and Starbucks.
    COMBINED HEAT AND POWER  PARTNERSHIP
EPA's Combined Heat and ^ f^L 11^ TABLE 13. CHP Capacity
Power (CHP) Partnership N! ^ i^Flr^
Strives to reduce the &EPA ^^PARTNERSHIP
environmental impact of power
generation by promoting the use of CHP 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 To gain the energy, environmental.
and economic benefits of CHP, EPA fosters cooperative
relationships with the CHP industry, state and local
governments, and other stakeholders to develop new CHP
projects.

Since 2002, the CHP Partnership has made an important
impact on U.S. CHP capacity (see Table 13), assisting
between 39 and 78 percent of the new CHP capacity
additions in each of the past 5 years.

2002
2003

2004

2005

2006

2007

2008
TOTAL
NEW CHP
CAPACITY
(MW)

5,214
3,576

3,340

1,600

353

478

259
Market Share
NEW CHP CAPACITY
CREDITABLE TO THE
CHP PARTNERSHIP
(MW)

620
512

2,008

821

138

373

132


MARKET
SHARE


12%
14%

60%

51%

39%

78%

51%
    12
     For more information, see www.epa.gov/chp/basic/efficiency.html.


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                                                                                           CLEAN ENERGY SUPPLY PROGRAMS
 Achievements in 2008

•  Welcomed 44 new partners, bringing the total to 268.
•  Assisted in the deployment of more than 130 MW of new
   CHP nationwide (total nationwide capacity of 258 MW),
   bringing the cumulative impact of the program to over 4,700
   MW of new CHP (see Figure 19).
•  Provided technical assistance to 20 candidate sites
   across the country, including those in the municipal, utility,
   biofuels, industrial, and commercial sectors.
•  Recognized 10 highly efficient CHP projects and provided
   public recognition to those projects through the ENERGY
   STAR CHP Awards. These systems range from a 0.14 MW
   system at a YMCA facility to a 500 MW facility that supports
   a large plastics manufacturing plant (see Table 14, p. 46).
•  Continued to raise awareness of the benefits of biomass
   CHP by expanding work to the ethanol industry and
   reviewing potential benefits from CHP systems at four
   facilities' project development stage.
•  Embarked on a formal collaboration with EPA's Office of
   Water to raise awareness of the benefits of biogas CHP
   applications particularly at wastewater treatment plants
   using anaerobic digestion.
•  Updated a market study analysis on CHP applications at
   hotels and casinos, which was originally prepared in 2005,

FIGURE 19. Combined Heat and Power Capacity by State as of 2008
   to reflect additional CHP installations. The Partnership
   provided technical support and a third-party review for a
   proposed biomass CHP system at a casino in Las Vegas.
•  Created and provided educational and outreach tools
   for the first time to utilities, a sector that has historically
   faced significant barriers. The tools examine in detail the
   market and policy challenges for CHP in this sector. EPA
   conducted a CHP training workshop for a wholesale utility
   partner and ethanol industry partners to demonstrate
   the potential of their collaborative success. In addition,
   technical analyses were provided to other utilities to meet
   their objectives in considering CHP systems.
•  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.
•  Began the rule development process to fulfill the Agency's
   requirements under the Energy Independence and Security
   Act of 2007 (EISA). Title IV, Subtitle D, Section 451, Part E on
   Industrial Energy Efficiency delineates all the requirements.
   One requirement is for EPA to publish a rule within 270 days
   of EISA enactment that establishes the criteria by which
   sources or sites will be listed in a Registry of Recoverable
   Waste Energy Sources (Registry).
                  WASHINGTON
                                              Increasing Installed CHP Capacity
                                                            5-50         51-500        >500

                                                                 (in MW)


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ENERGY STAR and Other Climate Protection Partnerships 2008 Annual Report
     What To Expect in 2009 and Beyond

    •  Identify and implement outreach activities to address
       changes in the CHP market as reflected in the federal
       Energy Improvement and Extension Act of 2008 (EIEA),
       ARRA, and other federal and state legislation.
    •  Support activities related to the CHP initiatives identified
       in the 2008 EISA Act and the 2009 ARRA, such as the
       review of CHP-related grants and regional outreach to
       educate the public  about CHP and promote its benefits.
       Expand work in strategic sectors, which include municipal
       and cooperative utilities and wastewater treatment
       facilities. The engagement plan will build and support
       regional collaborations that provide CHP outreach and
       technical support in these market sectors. In addition,
       key conferences within these market sectors will be
       identified as another means to reach CHP end-users and
       demonstrate the benefits of CHP to them.
       Initiate outreach activities to other sectors such as tribal
       casinos and data centers to identify CHP opportunities,
       building upon initial assessments for CHP in these sectors.
       Foster partnerships among government entities working
       on biomass and CHP.
       Publish the proposed and final rule for public comment,
       as required under Title IV, Subtitle D, Part E of EISA, in the
       Federal Register to establish the criteria by which sources
       or sites will be listed in the  Registry.
    Table 14. 2008 ENERGY STAR Combined Heat and Power Awards
       CHP PROJECT                                       PARTNER

       •   Missouri Joint Municipal Electric Utility Commission
          (MJMEUC) Cogeneration System

       •   One Market Plaza Cogeneration System

       •   East Kansas Agri-Energy CHP System

       •   POET Biorefining Ashton CHP System

       •   Clinton Hill Apartments CHP System

       •   Red Hook Fairway Market CHP System

       •   Columbia  Energy Center

       •   Verizon Garden City Fuel Cell Project

       •   Formosa  Plastics Corporation-Louisiana CHP
          System

       •   Westfield YMCA CHP System
POET Biorefining - Laddonia

One Market Plaza

ICM, Inc.

POET Biorefining

Clinton Hill Apartment Owners
Corporation

Red Hook Green Power, LLC

Calpine Corporation

Verizon Communications

Formosa Plastics Corporation

American DG NY, LLC
LOCATION

Laddonia, MO

San Francisco, CA

Garnett, KS

Ashton, IA

Brooklyn, NY

Brooklyn, NY

Gaston, SC

Garden City, NY

Baton Rouge, LA

Westfield, NJ
46

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STATE AND LOCAL PROGRAMS AND INITIATIVES
Clean energy offers states and localities a cost-effective way to address the ongoing challenges of rising
energy demand, rising energy prices, air quality concerns, and global climate change. EPA supports state
and local governments in their development and deployment of emerging technologies, and helps them
achieve energy cost savings through greater end-use efficiency in residential and commercial buildings and
municipal facilities.
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 would
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 GHG emissions equivalent to those from 80 million
vehicles.
EPA's Clean Energy-Environment state and local programs assist state and local governments in their
clean energy efforts  by providing best practice strategies, technical assistance, analytical tools, and peer
exchange opportunities. 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 20, p. 48).
•  Offering a suite of national voluntary programs that provide partners with resources, technical
   assistance, and recognition fortheir 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 in their states.
                                                                                            47

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ENERGY STAR and Other Climate Protection Partnerships 2008 Annual Report
    FIGURE 20. New and Updated Tools and Resources for States and Local Governments
      In 2008, EPA started a Local Climate and Energy Webcast
      Series and held three Webcasts with expert and local
      government presenters. Topics were: Navigating the Grant
      Process for Local Governments, Energy-Efficient Product
      Procurement, and Green Power Procurement. The series
      will continue in 2009.
      The Local Climate and
      Energy Program completed
      five new Local Government
      Climate and  Energy Strategy
      Guides, which provide
      a comprehensive, user-
      friendly overview of local
      government GHG emissions
      reduction strategies, along with project benefits, policy
      mechanisms, up-front investments, key stakeholders, and
      other implementation considerations. The Guides are:
      • Energy Efficient Product Procurement
      • Green Power  Procurement
      • Onsite Renewable Energy
      • Combined Heat and Power
      • Landfill Gas to Energy
      Additional Guides are under development.
                                                         eGRID
                    eGRID, a comprehensive source
                    of data on the environmental
characteristics of U.S. power generation, was updated
in 2008 to include 2005 data. Methane and nitrous oxide
emissions and emission rates were also added to the data
set.
EPA's Greenhouse Gas Equivalency Calculator, which
allows users to quickly and easily translate GHG reductions
from units typically calculated into terms that are easier to
conceptualize (e.g., passenger vehicles not driven for one
year), was updated.
EPA held nine Webcasts as part of its State Technical Forum
series, which explores analytical questions and key issues
surrounding state climate and energy efforts by facilitating
monthly peer exchanges and expert presentations among
state energy, environmental, and utility officials.
EPA released the technical assistance document,
Reducing Urban Heat Islands: Compendium of Strategies.
The compendium describes the causes and impacts of
summertime urban heat islands and promotes key mitigation
strategies for lowering temperatures within a community's
microclimate. For each mitigation strategy—green roofs,
reflective roofs, cool pavements, and trees and vegetation—
the compendium covers basic background, benefits and
investments, factors to consider, and additional examples.
    CLEAN ENERGY-ENVIRONMENT STATE PARTNERSHIP
                                  State Climate and Energy Program
 Achievements in 2008

•  Welcomed Virginia to the
   State Partnership program—
   bringing the total to 16
   partners—and continued
   to expand as a nationwide
   program to help all states learn from the experiences of
   partner states.
•  Held a conference for partners to exchange best practices
   and identify issues of emerging importance.
•  Supported states as they analyzed clean energy options,
   prioritized policies to meet air quality and climate goals,
   developed and implemented outreach and education
    programs, and identified additional guidance and technical
    assistance from EPA that would be helpful in the coming
    years (see Table 15).
    Conducted nine peer exchange sessions through the EPA
    Clean Energy-Environment Technical Forum—involving
    a total of more than 700 state environmental, energy, and
    utility regulatory officials from 45 states—to examine best
    practices on topics such as renewable energy credits,
    state energy planning, advanced metering technologies,
    and clean distributed generation.
    Assisted in the development of the EPA video Climate
    and Air Quality: Applications for Air Quality Professionals
48

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   - October 22, 2008, a 3-hour training program for state,
   local, and tribal air quality personnel about the interactions
   between climate change and air quality programs.
   Enhanced the Greenhouse Gas Equivalency Calculator—
   a communications tool that translates GHG emissions
                                                                             STATE AND LOCAL PROGRAMS AND INITIATIVES

                                                         reductions into more commonplace equivalencies, such
                                                         as number of passenger vehicles, acres of forest, and
                                                         household electricity use by homes.
TABLE 15. Clean Energy-Environment State Partnership Grows to 16 Partners in 2008
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 Renwable Energy
Output-based Environmental Regulation to Support
Clean Energy
Clean Distributed Generation
Net Metering
PARTNERS WITH NEW
PROGRAMS IN 2008
3
1
1
5
5
0
2
2
0
3
0
0
0
0
TOTAL PARTNERS
WITH PROGRAMS
15
12
10
16
13
10
13
13
5
13
9
7
13
16
CLEAN ENERGY-ENVIRONMENT LOCAL NETWORK
                                Local Climate and Energy Program
 Achievements in 2008

•  Facilitated access to the
   world of federal programs and
   resources that target local
   governments through a "one-
   stop shop" Web site that offers
   links to and explanations of available resources.
•  Expanded an online, searchable database of resources to
   help local governments assess clean energy policies and
   programs.
•  Provided support for urban heat island efforts through
   Webcast training sessions on topics such as program
   implementation, climate and air quality impacts, and
   scientific modeling tools.
•  Released a comprehensive heat island mitigation strategies
   guidance document and a user-friendly heat island Web
   site.
•  Held three Webcasts for local government officials—
   viewed 400 times each—on federal funding opportunities,
   clean energy best practices (such as energy-efficient
   product procurement), and green power.
•  Issued five chapters of a best practices guide for local
   governments on clean energy topics including energy-
   efficient product procurement, green power procurement,
   onsite renewable energy generation, combined heat and
   power, and landfill methane utilization.


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ENERGY STAR and Other Climate Protection Partnerships 2008 Annual Report
     What To Expect in 2009 and Beyond
      Transition from the Clean Energy-Environment State
      Partnership of 16 states to an online Climate and Energy
      State Partner Network. This will expand access so
      that all states can learn from each other about energy
      and climate change initiatives and directly exchange
      questions, information, and ideas about those initiatives.
                                                          •  Launch a $10 million Climate Showcase Communities
                                                             grant program for local and tribal government climate
                                                             change initiatives.
                                                          •  Introduce a comprehensive, new Web site for states and
                                                             communities that will enable efficient access to updated
                                                             climate and energy information, tools, reporting, and peer
                                                             exchange.
    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, state policy makers, 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.
                                           .nal Action Plan
                                       for Energy Efficiency
 Achievements in 2008

•  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.
   The Leadership Group has released a set of policy
   recommendations that serve as a foundation for the Action
   Plan's Vision to achieve all cost-effective energy efficiency
   by 2025. The Action Plan offers resources and tools to help
   states lower the growth in energy demand by more than 50
   percent, help reduce annual GHG emissions equivalent to
   those from 90 million vehicles, and help provide customers
   more than $500 billion in net savings over the next 20 years.
   More than 120 organizations have endorsed the Action
   Plan  recommendations and made public commitments to
   advance energy efficiency.
Released Vision for 2025: Framework for Change, which
outlines a complete framework for state-specific policies
and programs to overcome barriers and enable the
acquisition of all cost-effective energy efficiency potential.
In its 2008 release, the Vision reports the significant
progress states have made toward creating the long-
term policy framework for energy efficiency. The Vision
also identifies areas for additional progress. Table 16 (p.
52) shows the status of states that have made progress
between 2007 and 2008.
Released new resources to help committed organizations
implement the Vision for 2025 recommendations. Three of
the  new resources are papers that share best practices for
removing key barriers to energy efficiency: Understanding
Cost-Effectiveness of Energy Efficiency Programs, Utility
Best Practices Guidance for Providing Business Customers
with Energy Use and Cost Information, and Sector
Collaborative on Energy Efficiency.
Continued to provide technical  assistance to state utility
commissions on energy efficiency, including New Mexico,
Florida, and Maryland.
Expanded policy assistance to Maryland and California to
help them accelerate the deployment of customer-sited
clean distributed generation.
50

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                                                                                STATE AND LOCAL PROGRAMS AND INITIATIVES
 What To Expect in 2009 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 fourth year, the Action Plan will continue to
support the creation of a long-term energy efficiency program
and policy infrastructure, including energy efficiency efforts
funded through economic stimulus efforts. Key to supporting
stimulus efforts will be the creation of a Rapid  Deployment
Energy Efficiency (RDEE) Toolkit. The RDEE Toolkit will provide
detailed program design and implementation guides to help
states and local governments make effective use of ARRA
stimulus funding. EPA will provide comprehensive technical
assistance to parties advancing RDEE programs.
In addition, the Action Plan will continue its efforts to measure
progress toward the Vision for 2025, develop key informational
materials, and spread the word on the need for aggressive
action to improve energy efficiency. New resources will
address:

•  The role of energy efficiency as a low-cost strategy for
   reducing carbon emissions.
•  An assessment framework for understanding the options
   for becoming the most energy-efficient economy in the
   world.
•  Ways to provide customers with incentives to save energy
   through rate design.
•  Coordination of demand response and energy efficiency
   policies and programs.
•  Future approaches to evaluation, measurement, and
   verification.
                                                                                                                    51

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ENERGY STAR and Other Climate Protection Partnerships 2008 Annual Report
     Table 16. State Progress Toward Meeting the Action Plan Vision for 2025*
GOAL AND POLICY IMPLEMENTATION STEP I ELECTRICITY I NATURAL GAS
ESTABLISHING COST-EFFECTIVE ENERGY EFFICIENCY AS A HIGH-PRK
Process in place, such as a state and/or regional collaborative, to
pursue energy efficiency as a high-priority resource.
Policy established to recognize energy efficiency as high-priority
resource.
Potential identified for cost-effective, achievable energy
efficiency over the long term.
Energy efficiency savings goals or expected energy savings
targets established consistent with cost-effective potential.
Energy efficiency savings goals and targets integrated into state
energy resource plan, with provisions for regular updates.
DEVELOPING PROCESSES TO ALIGN UTILITY AND OTHER PROGRAM P
SUCH THAT EFFICIENCY AND SUPPLY RESOURCES ARE ON A LEVEL PI
Utility and other program administrator disincentives are removed.
Utility and other program administrator incentives for energy
efficiency savings reviewed and established as necessary.
ESTABLISHING COST-EFFECTIVENESS TESTS
Cost-effectiveness tests adopted that reflect the long-term
resource value of energy efficiency.
ESTABLISHING EVALUATION, MEASUREMENT, AND VERIFICATION ME
Robust, transparent EM&V procedures established.
ESTABLISHING EFFECTIVE ENERGY EFFICIENCY DELIVERY MECHANIS
Administrator(s) for energy efficiency programs
clearly established.
Stable (multi-year) and sufficient funding in place consistent with
energy efficiency goals.
Programs established to deliver energy efficiency to key customer
classes and meet energy efficiency goals
and targets.
Strong public education programs on energy efficiency in place.
Energy efficiency program administrator engaged in developing
and sharing program best practices at the regional and/or national
level.
DEVELOPING STATE POLICIES TO ENSURE ROBUST ENERGY EFFICIEN
State appliance standards in place.
ALIGNING CUSTOMER PRICING AND INCENTIVES TO ENCOURAGE INI
Rates examined and modified considering impact on customer
incentives to pursue energy efficiency.
Mechanisms in place to reduce consumer disincentives for
energy efficiency (e.g., including financing mechanisms).
IMPLEMENTING ADVANCED TECHNOLOGIES
Policies in place to remove barriers to combined heat and power.
IRITY RESOURCE
17 additional states completed
9 additional states completed
9 additional states completed
9 additional states completed
No state progress
ADMINISTRATOR INCENTIVES
JWING FIELD
6 additional states completed
13 additional states completed
9 additional states completed
.CHANISMS
4 additional states completed
MS
9 additional states completed
3 additional states completed
8 additional states completed
13 additional states completed
2 additional states completed
iY PRACTICES
28 additional states completed
/ESTMENT IN EFFICIENCY
2 additional states completed
2 additional states completed
6 additional states completed
No state progress
8 additional states completed
4 additional states completed
4 additional states completed
8 additional states partially
completed
6 additional states completed
8 additional states completed
12 additional states completed
2 additional states completed
6 additional states completed
4 additional states completed
11 additional states completed
11 additional states completed
5 additional states completed
27 additional states completed
3 additional states completed
No state progress
N/A
     N/A: Not applicable




     * For more information on the Vision Measuring Progress methodology, see http://www.epa.gov/eeactionplan.
52

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METHANE  PROGRAMS

Methane (CH4) is a potent GHG that is 25 times more effective than C02 at trapping heat in the earth's
atmosphere, thus contributing to climate change. Methane also has a relatively short lifetime in
the atmosphere, ranging from 9 to 15 years, that when coupled with its potency makes methane an
excellent candidate to mitigate climate change in the near term. Methane offers a unique opportunity
for cost-effective GHG emissions reductions because when recovered and used properly, it is a
valuable energy resource.

Methane is emitted from a variety of  natural and human-influenced sources. The latter include landfills,
natural gas and petroleum systems, coal mining, livestock farms, wastewater treatment, and certain
industrial processes.  Methane emissions from these sources currently represent about 8 percent of
total U.S. GHG emissions. For the most significant emissions sources, EPA has established partnership
programs with industry—working together to reduce methane  losses and capture methane, whenever
feasible, for use as an energy source. EPA's suite of programs, described in more detail in the following
pages, strives to remove market barriers and increase investment in methane recovery and use.

•  In 2008, the combined efforts of EPA's methane programs resulted in GHG emissions reductions of
   20.3 MMTCE, which is 115 percent more than the total for 2000 (see Table 17, p. 54).
•  Combined with a regulatory program to limit air emissions from the nation's largest landfills, the
   methane partnerships have reduced national methane emissions from targeted sources to 14 percent
   below 1990 levels. They are projected to remain  below 1990 levels through at least 2012
   (see Figure 21, p. 54).
•  Promoted recovery and use of methane worldwide with a growing number of governments and
   organizations through the Methane to Markets Partnership.
                                                                                          53

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ENERGY STAR and Other Climate Protection Partnerships 2008 Annual Report
    TABLE 17. EPA's Methane Programs Meet and Surpass Goals
PROGRAM 2008 GOAL 2008 ACHIEVEMENT 2009 GOAL
NATURAL GAS STAR
Industry Participation (% in program)
Annual Gas Savings (MMTCE)
60%
7.0
62%
12.6
62%
7.2
COALBED METHANE OUTREACH PROGRAM
Annual Methane Reductions (MMTCE)
2.2
2.2
2.5
LANDFILL METHANE OUTREACH PROGRAM
Number of Projects
Annual Methane Reductions (MMTCE)
TOTAL REDUCTIONS (MMTCE)
349
5.5
14.7
360
5.5
20.3
369
5.8
15.5
    EPA's domestic methane programs—Natural Gas STAR,
    AgSTAR, the Coalbed Methane Outreach Program, and the
    Landfill Methane Outreach Program—have all succeeded
    by following a sound strategy. They provide reliable and
    comprehensive technical, economic, and policy information
    to facilitate the adoption of cost-effective emissions reduction
    technologies and practices.

    Each program supports methane reductions, recovery,
    and use by offering tools and technical assistance to
    public and private sector partners so they can expand the
    implementation of methane projects. Experience has shown
    that in addition to reducing or capturing emissions for sale,
    active partners often gain a competitive advantage  because
    the methane projects are a catalyst for improving their overall
    operating efficiency.

    For the past 4 years, EPA has leveraged its experience,
    expertise, and success in the United States to achieve
           economic and environmental results on a global scale. The
           Methane to Markets Partnership works to accelerate the
           recovery and use of methane as a clean energy source with
           31 partner governments and more than 900 public and private
           sector organizations around the world (see Figure 25, p. 60).
           FIGURE 21. Partner Actions Are Projected To Maintain Methane
           Emissions Below 1990 Levels Through 2012
            185
               199G
                        1995
                                 2000
                                           2005
                                                     2010
                                                              2012
    NATURAL GAS STAR PROGRAM
&
H
    Natural Gas STAR is a collaborative
    partnership between EPA and the U.S.
    natural gas industry that is designed to  ~
    further the adoption of cost-effective
    technologies and practices that reduce methane emissions.
    By working with companies from the oil production sector
    and all sectors of the natural gas supply chain. Natural Gas
    STAR helps reduce gas losses, improve system efficiency, and
ensure that more gas gets to market. A variety of useful tools
and resources—including technology transfer workshops,
one-on-one technical assistance, and peer networking—
assists partners in implementing a wide range of cost-
effective methane  reduction best management practices and
technologies.


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                                                                                           METHANE PROGRAMS
 Achievements in 2008
   Reduced methane emissions by 12.6 MMTCE, achieving
   cumulative reductions of more than 90 MMTCE since 1990
   (see Figure 22).
   Maintained 60 percent industry participation across all
   major sectors—production, processing, transmission, and
   distribution.
   Expanded the program by 10 new partner companies,
   bringing the total to more than 130.
   Welcomed one new Natural Gas STAR International
   partner and worked with all existing partners to further
   identify and implement methane mitigation opportunities.
   Continued to expand onsite technical assistance by
   conducting five onsite and two online technology transfer
   workshops, covering all  four major gas sectors.
   Recognized 15 partner companies at the 15th Annual
   Implementation Workshop in San Antonio, TX, for their
   significant corporate achievements in reducing methane
   emissions from oil and gas systems (see Table 18)
FIGURE 22. Natural Gas STAR Cumulative GHG Emissions
Reductions and Gas Savings
                                                90
      2000
           2001  2002   2003  2004   2005  2006   2007  2008
TABLE 18. 2008 Natural Gas STAR Awards

  PRODUCTION PARTNER OF THE YEAR
  •  Occidental Oil and Gas Corporation - Los Angeles, CA
  GATHERING AND PROCESSING
  PARTNER OF THE YEAR
  •  ONEOK Partners - Tulsa, OK
  TRANSMISSION PARTNER OF THE YEAR
  •  El Paso Pipeline Group - Houston, TX
  DISTRIBUTION PARTNER OF THE YEAR
  •  Consolidated Edison Company of New York - New York, NY
  CONTINUING EXCELLENCE-5 YEARS
  •  Devon Energy Corporation - Oklahoma City, OK
  •  Newfield Exploration Company - Houston, TX
  •  Puget Sound Energy - Bellevue, WA
  •  Shell Exploration and Production - Houston, TX
CONTINUING EXCELLENCE-7 YEARS
•  Atmos Energy Corporation - Franklin, TN
CONTINUING EXCELLENCE-12 YEARS
•  Anadarko Petroleum Corporation - Houston, TX
   Iroquois Gas Transmission - Shelton, CT
•  PECO Energy Company - Philadelphia, PA
CONTINUING EXCELLENCE-15 YEARS
•  Consolidated Edison Company of New York - New York, NY
•  Williams Gas Pipeline - Houston, TX
IMPLEMENTATION MANAGER OF THE YEAR
•  Aaron Hutchison (Marathon Oil Company) - Houston, TX
ROOKIE OF THE YEAR
•  Laclede Gas Company - St. Louis, MO
                                                                                                          55

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ENERGY STAR and Other Climate Protection Partnerships 2008 Annual Report
    What To Expect in 2009 and Beyond
    •   Update existing materials and develop new tools and
       resources that highlight the environmental and economic
       benefits of methane reductions to facilitate and accelerate
       company implementation of emissions reduction projects.
    •   Provide partners with one-on-one assistance in identifying
       and prioritizing new, cost-effective opportunities to further
       reduce methane emissions.
    •   Conduct two targeted study tours, two onsite technology
       transfer workshops, and two Web-based technology
       transfer workshops.

    AGSTAR  PROGRAM
•  Expand the Annual Implementation Workshop to include a
   broader international focus.
•  Perform measurement studies and technology transfer
   workshops at oil and gas operations globally to assess
   key emissions sources and identify potential mitigation
   measures, in addition to providing vital technical training in
   leak detection and quantification methods.
    Through the AgSTAR Program,
    EPA—along with its partners the U.S.
    Department of Agriculture (USDA) and
    DOE—collaborates with the nation's
    agriculture industry to reduce methane
    emissions by promoting the use of
    anaerobic (without oxygen) digesters and biogas recovery
    systems to manage animal wastes. EPA offers an array of
    tools and information designed to assist livestock producers
in evaluating and implementing methane recovery systems.
The technologies and practices encouraged through AgSTAR
help avoid GHG emissions, as well as reduce local water and
air pollution. These methane recovery systems also become
a source of renewable energy and generate other value-
added products that improve farm revenues. Currently, there
are more than 220 manure digester systems operating, under
construction, or planned in the United States.
     Achievements in 2008
    •  Provided technical supportto USDA in selecting 10
       anaerobic digester projects for grant and loan funding
       through the Farm Bill, bringing the total disbursement of
       funds to digester projects through the Farm Bill to more
       than $35 million since 2003.
    •  Supported digester-to-energy projects that produced more
       than 275 million kWh of renewable energy from farms
       capturing methane.
    •  Assisted in the formation and development of Dairy Power,
       a nationwide initiative aimed at reducing the GHG footprint
       of the milk industry.
   Launched the AgSTAR state partner program to more
   effectively leverage expertise and resources within state
   energy and environmental organizations to accelerate the
   adoption of digester systems.
   Updated and expanded the AgSTAR national digester
   database to include 135 operating digesters and 140
   digester projects that are planned, under construction, or
   shutdown.
     What To Expect in 2009 and Beyond
    •  Provide technical expertise to enable the distribution
       of state and federal grant and loan funds to anaerobic
       digester projects through the USDA Rural Energy for
       America Program and other sources.
    Revise and expand the AgSTAR program Web site to
    provide enhanced tools and resources targeted to
    livestock producers, project developers, and policy
    makers.
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                                                                                                  METHANE PROGRAMS
•  Inform nationwide initiatives aimed at overcoming the         •
   remaining technical, economic, and policy hurdles that
   prevent broad adoption of anaerobic digestion systems.
•  Plan the fifth annual AgSTAR national conference, as well
   as regional events, to provide environmental, program,
   market, state-of-the-art technical, and funding information
   on anaerobic digestion systems.

 COALBED METHANE OUTREACH  PROGRAM
                                                            Continue to expand the AgSTAR national digester
                                                            database to house the latest information on the
                                                            deployment of anaerobic digestion systems in the United
                                                            States.
                                       U.S. EPA
                                      Coalbed Methane
                                      \ A /OUTREACH PROGRAM
                                       V-®
The Coalbed Methane Outreach Program
(CMOP) strives to reduce methane
emissions from coal mining activities.
CMOP works in cooperative partnerships
with coal companies and related
industries to reduce methane emissions
through the development of environmentally beneficial, cost-
effective  coal mine methane (CMM) recovery and utilization
projects. With partners, CMOP helps address the barriers
associated with recovering and using CMM.

The program primarily focuses on mitigating emissions from
degasification systems at underground coal mines and
underground mine ventilation systems, although EPA is also
exploring other areas for methane recovery and utilization.
CMOP provides high-quality, project-specific information and
technical assistance to the coal mining industry and project
developers, including:

•  Analyses of technologies and potential projects.
•  Technology demonstrations.
•  Mine-specific project feasibility assessments.
•  State-specific analyses of project potential.
•  Market evaluations.
•  Guides to state, local, and federal assistance programs.
 Achievements in 2008
   Increased the percentage of drained CMM that is
   recovered and used to more than 80 percent—up from 25
   percent in the early 1990s.
   Reduced emissions of methane by an estimated 2.2
   MMTCE. These results include reductions from 14 active
   underground coal mines and reductions from about 20
   projects that captured and used methane from some 30
   closed U.S. coal mines.
   Supported the successful operation and conclusion of a
   technology demonstration project (the first of its kind in the
   country) to mitigate methane emissions from diluted  mine
   ventilation air—in cooperation with CONSOL Energy and
   DOE.
   Created a database of candidate mines and prepared case
   studies of successful projects to promote CMM recovery
   and utilization at closed underground mines and active
   surface mines.
                                                            Organized the 2008 U.S. Coal Mine Methane Annual
                                                            Conference to address the opportunities and challenges
                                                            of CMM project development in the United States,
                                                            including site visits to the EPA-funded ventilation air
                                                            methane technology demonstration project and a coalbed
                                                            methane gas upgrade site.
                                                            Hosted a roundtable event to engage officials from leading
                                                            coal mining and end-use application companies to  discuss
                                                            barriers to project development, particularly financing.
                                                            Launched tools to assist potential CMM project
                                                            developers, including an online model for project finance
                                                            and economics.
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ENERGY STAR and Other Climate Protection Partnerships 2008 Annual Report
     What To Expect in 2009 and Beyond
    •   Disseminate results from the conclusion of the
       demonstration project on mine ventilation air methane
       mitigation in the United States.
    •   Update technical reports to provide the latest information
       on how to recover coal mine methane and use it
       effectively.
                    •  Directly engage project developers, investors, technology
                       vendors, and the mining community through tailored
                       outreach events, including a conference in the western
                       United States.
                    •  Evaluate opportunities for new coal mine methane
                       recovery and utilization projects, particularly in the
                       western United States.
    LANDFILL METHANE OUTREACH PROGRAM
    Landfills accounted for about one-
    quarter of the total U.S. methane
    emissions in 2008. As one of the largest
    anthropogenic (human-influenced)
    sources of methane, many landfills are
    required by EPA regulations to collect
LANDFILL METHANE
OUTREACH PROGRAM
and combust their landfill gas. EPA established the Landfill
Methane Outreach Program (LMOP) to provide technical
assistance to the smaller landfills not covered by EPA
regulations, as well as the larger, regulated operations that
are combusting their gas but notyet using it as a clean energy
source.
       Through LMOP, EPA provides landfill owners
       and operators a suite of tools and technical
       resources to help them overcome the
       obstacles to landfill gas energy (LFGE) project
       development. This support includes feasibility
       analyses, decision-making software for
       evaluating project economics,  a database of
       more than 520 candidate landfills, an online
       project development handbook, and energy
       end-user analyses. The benefit of LFGE projects
       is that they not only prevent direct methane
       emissions from landfills, but also reduce indirect
       C02 emissions by displacing the electricity
       generated from the burning of fossil fuels (see
       Figure 23).

       Over the past 14 years, LMOP has assisted
       approximately 410 projects (see Figure 24) that
       collectively reduced methane emissions from
       landfills and avoided C02 emissions totaling
       about 42 MMTCE. These efforts are partially
       responsible for the approximately 11-percent
       decrease in methane emissions from landfills
       since 1990.
            FIGURE 23. Direct Use and Electric Capacity of
            LMOP-assisted Projects
               250 T
                                           r 1,200
                                                                 1,000
                                                               .- 600
                                                               .- 400
                                                               .- 200
                   2000  2001   2002   2003   2004   2005   2006   2007   2008
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                                                                                                   METHANE PROGRAMS
FIGURE 24. Landfill Gas Energy Projects Across the Country
                                            Increasing Operational LFGE Projects
                                                        5-15
 Achievements in 2008

•  Reduced methane emissions by 5.5 MMTCE, as a result of
   helping to develop 48 new LFGE projects and expand
   13 projects.
•  Welcomed 97 new partners, increasing participation by
   14 percent and bringing the total to almost 800 LMOP
   partners.
•  Provided stakeholders technical assistance that included
   performing more than 100 cost analyses, conducting
   80 locator searches to match end-users with landfills, and
   running models for 50 LFGE projects.
•  Drew record attendance—over 500 attendees—at the
   12th Annual LMOP Conference and Project Expo, where eight
   landfills were showcased to attract investors and project
   developers.
 What To Expect in 2009 and Beyond
•  Assist in the development of more than 40 new LFGE
   projects.
•  Expand efforts to promote the benefits of LFGE to state
   and local economic development offices, emphasizing job
   creation and tax revenue opportunities.
                                                                    16-20
Garnered public attention for LMOP partners and LFGE
projects, which were featured by numerous media outlets,
including West Virginia Public Radio, The Wall Street
Journal, and The New York Times. In addition, LFGE end-
user SC Johnson and LMOP partner Waste Management
produced their own television commercials highlighting
their LFGE projects.
Launched a new Web version of the Project Development
Handbook to provide the latest financing and project
information to partners, and contributed a chapter on
landfills to EPA's Clean Energy Guide.
Recognized the outstanding accomplishments of four
landfill methane partners and three exemplary projects
at the  12th Annual LMOP Conference and Project Expo,
including the first LMOP award to a vehicle fuel project
(see Table 19, p. 60).
 Host the 13th Annual LMOP Conference, Project Expo, and
 Awards Ceremony to showcase the top LMOP Partners
 and projects and discuss the latest industry trends.
 Continue to provide current information on incentives for
 LFGE through fact sheets and listserve announcements.
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ENERGY STAR and Other Climate Protection Partnerships 2008 Annual Report
    TABLE 19. 2008 Landfill Methane Outreach Program Awards

      PROJECT OF THE YEAR
      •  Granger, Conestoga Landfill Gas Utilization Project -
         Morgantown, PA
      •  Green Energy Center, High Btu Landfill Gas Energy
         Project - Grove City, OH
      •  Greenville Gas Producers, LLC and County of Greenville
         - Greenville, SC
                                                        INDUSTRY PARTNER OF THE YEAR
                                                        •  Casella Waste Systems, Inc. - Montpelier, VT

                                                        COMMUNITY PARTNER OF THE YEAR
                                                        •  Seward County Landfill - Seward County, KS

                                                        ENERGY PARTNERS OF THE YEAR
                                                        •  Lansing Board of Water and Light- Lansing, Ml
                                                        •  Mars Snackfood US - Waco, TX
                             Launched in 2004,
    _                       Methane to Markets
   f  I  ^                   (M2M) is an international
Methane to Markets  initiative that has made
                             tremendous progress
in accelerating the development of methane emissions
reduction projects around the world. The M2M Partnership
has also demonstrated that countries and the private
sector can work together cooperatively to reduce GHG
emissions, stimulate economic growth, develop new
sources of energy, and improve local environmental
quality.  Building off its domestic methane programs, EPA
is working with M2M partners—30 national governments,
including the European Union, and more than 900 private
and public sector organizations (the Project Network)—
to advance methane energy projects from four major
sources: agricultural and food processing 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. Ongoing U.S.-
supported projects are expected to result in estimated
annual reductions of approximately 16.4 MMTCE (see
Figure 25). U.S. contributions have also leveraged
more than $278 million in investment from other partner
countries, development banks, the private sector, and
members of the Project Network.

As the Partnership looks toward the future, the science
of climate change is revealing the critical importance of
reducing methane emissions in order to mitigate climate
impacts, especially in the near term. EPA and its partners
are preparing to tackle this  challenge in the years to come,
and in 2009 will focus on:

•  Developing New Projects and Achieving Greater
   Reductions. Subcommittees will be working to develop
                                                              FIGURE 25. GHG Reduction Potential of U.S.-supported Projects
                                                                           2005
                                                                                     2006
                                                                                                2007
                                                                                                          2008
                                                                 country-specific methane reduction action plans,
                                                                 engage new Project Network members, and identify
                                                                 projects for the 2010 India Partnership Expo.
                                                                 Renewing the Partnership's Charter. M2M partners will
                                                                 be negotiating a new Terms of Reference, potentially
                                                                 expanding the scope to include other methane sources
                                                                 beyond the four major ones mentioned above.
                                                                 Organizing the 2010 India Partnership Expo. M2M
                                                                 partners and Project Network members will be building
                                                                 on the success of the first Partnership Expo as they
                                                                 develop plans for the next one in New Delhi, India. The
                                                                 first Expo proved to be an effective means of matching
                                                                 project development opportunities with relevant skills and
                                                                 resources, identifying more than 90 project opportunities
                                                                 with an  annual emissions reduction potential of
                                                                 3.1 MMTCE.
60

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FLUORINATED GREENHOUSE  GAS  PROGRAMS
EPA's fluorinated greenhouse gas (FGHG) partnerships work closely with key industries to manage
the fluorinated gas (F-gas) emissions that occur as byproducts of U.S industrial operations. Many
F-gases—such as perfluorocarbons (PFCs), hydrofluorocarbons (MFCs), nitrogen trifluoride (NF3), and
sulfur hexafluoride (SF6)—are potent GHGs, possessing very high global warming potentials (GWPs).
These F-gases trap substantially more heat in the atmosphere than does C02 on a per mass basis, and
some can have much longer atmospheric lifetimes than C02 (see Table 20, p. 62).

EPA's suite of partnership programs has helped partners maintain their emissions substantially below
1990 levels through cost-effective operational improvements and other emissions reduction strategies
(see Figure 26, p. 62). Despite the potential for sizable growth in F-gas emissions, emissions are
expected to stay atthese levels through the year 2012. The combined efforts of the FGHG partnerships
resulted in GHG emissions reductions of 14.8 MMTCE in 2008 (see Table 21, p. 62).
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ENERGY STAR and Other Climate Protection Partnerships 2008 Annual Report
   TABLE 20. Global Warming Potentials (GWPs) and
   Atmospheric Lifetimes of GHGs
GLOBAL WARMING
GREENHOUSE GAS POTENTIAL FOR 100
YEARS
Carbon Dioxide
Methane
Nitrous Oxide
Hydrofluorocarbons
HFC-134a
Perfluorocarbons
Sulfur Hexafluoride
1
21
310
140-11,700
1,300
6,500-9,200
23,900
ATMOSPHERIC
LIFETIME (YEARS)
50-200
12±3
120
1.5-264
14
3,200-50,000
3,200
                      FIGURE 26. Partner Actions Are Projected To Maintain
                      Emissions of Fluorinated Gases Below 1990 Levels Through 2012
                        30-
                                                                1990
                                                                          1995
                                                                                    2000
                                                                                               2005
                                                                                                        2010
                                                                                                                2012
    Source: IPCC 1996
    TABLE 21. Goals and Achievements of EPA's FGHG Programs
PROGRAM 2008 GOAL 2008 ACHIEVEMENT 2009 GOAL
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)
99%
2.7

100%
4.7

50-100%
5.8
13.2
99%
2.5

100%
7.3

50-100%
5.0
14.8
99%
2.8

100%
4.5

50-100%
7.3
14.6
    * Participation varies from 45% of net generating capacity for electric power systems to 100% for primary magnesium producers.
   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
J INDUSTRIAL I'AIU NFKMIIP
from 1990 levels by 2010. VAIP aims to reduce emissions of
perfluoromethane (CF4) and perfluoroethane (C2F6)—which
are inadvertent byproducts of the smelting process—and
emissions of C02 caused by the consumption of the carbon
anode. This ambitious goal signifies an additional direct
carbon intensity reduction of 25 percent beyond 2000 levels.
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                                                                              FLUORINATED GREENHOUSE GAS PROGRAMS
 Achievements in 2008
   Reduced 2.5 MMTCE in direct GHG emissions, which
   represents reduced RFC emissions of more than 50 percent
   and reduced direct carbon emissions of more than
   53 percent on a per-ton basis compared with the industry's
   1990 baseline.
   Measured and analyzed RFC emissions during a pot-line
   start-up operation.
   Participated in IMS and Aluminum Association programs
   on  RFC reductions.
   Shared information on U.S. progress toward reducing RFC
   emissions through training workshops at two companies
   in China. The workshops, presented under the Asia Pacific
   Partnership, included industry experts from the United
   States and Australia.
   Completed training for technical experts on using the EPA/
   IAIPFC Measurement Protocol and supported completion
   of PFC measurements  at six smelters in China.
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 emissions
intensity has dropped dramatically.13
 Achievements in 2008

•  Reduced emissions by 7.3 MMTCE below whatthey
   would have been had production continued at 1990
   emissions intensity levels.
THE PFC REDUCTION/CLIMATE PARTNERSHIP FOR THE SEMICONDUCTOR INDUSTRY
Since its inception in 1996, EPA's FGHG Reduction/Climate
Partnership for the Semiconductor Industry has been working
with semiconductor manufacturers to identify and implement
FGHG-reducing process changes and
manufacturing tool improvements for
the production of integrated circuits.
Due to their persistant efforts, EPA's
partners are on track to meet the
2010 global GHG emissions reduction
target set by the World Semiconductor
Council (WSC). In April 1999, WSC—whose members include
the national semiconductor industry associations of Europe,
Japan, Korea, Taiwan, and the United States—announced
a challenging goal: to reduce FGHG emissions by at least 10
percent below the 1995 baseline level by the end of 2010.

The aggressive goal set by WSC is the world's first
industry-wide, global GHG emissions reduction target and
demonstrates the semiconductor industry's comprehensive
commitment to  climate protection. The present challenge for
WSC and EPA is to maintain flexibility and dynamic leadership
to include emerging production centers in China, Malaysia,
and Singapore, as well as expanding cooperation with related
high-tech electronics manufactoring sectors.
13
  HFC-23 emission intensity is the amount of HFC-23 emitted per kilogram of HCFC-22 manufactured.
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ENERGY STAR and Other Climate Protection Partnerships 2008 Annual Report
    Achievements in 2008
    •  Reduced absolute FGHG emissions by 2.9 MMTCE, or more
      than 16 percent below business-as-usual (BAD) levels,
      while U.S. manufacturing continued to expand.
    •  Completed the first draft of a standard method for
      characterizing destruction  or removal efficiency (ORE) of
      FGHG-abatement technologies and initiated a peer review
      by holding a number of stakeholder meetings with the
      Japan Electronics and Information Technology Industries
      Association, U.S.  experts, and the Taiwan Industrial
      Technology Research Institute.
    •  Worked with partner company IBM to evaluate installed
      F-gas abatement devices in full-scale production settings.
      EPA is working with electronics manufacturing partners to
      evaluate and validate its proposed standard measurement
   protocol and to help partners learn how their installed
   emissions control technologies operate between periodic
   maintenance. For the first time, EPA's collaborative study
   also evaluated using a non-dispersive infrared (NDIR)
   spectrometer as  a potential low-cost continuous emissions
   monitoring technology for specific types of F-gases.
   Introduced a new cooperative global electronics industry
   framework for comprehensively addressing climate
   change. This expanded model of cooperation will facilitate
   information sharing among all major related electronics
   manufacturing sectors—such as semiconductors, liquid
   crystal displays (LCDs), microelectrical mechanical
   systems (MEMs), and photovoltaics—that are pursuing
   comparable climate protection goals.
    SULFUR HEXAFLUORIDE (SF6) EMISSIONS REDUCTION PARTNERSHIP
    FOR ELECTRIC POWER SYSTEMS
    SF6 is the most potent and persistent
    GHG. 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
through the SF6 Emissions Reduction Partnership for Electric
Power Systems, 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
42 percent of the total U.S. transmission system.
     Achievements in 2008
       Reduced emissions by 1.8 MMTCE, bringing average SF6
       emissions rates down to 4.7 percent of the total equipment
       nameplate capacity.
       Welcomed two new partner companies: New York State
       Electric and Gas in Ithaca, New York, and VT Transco in
       Rutland, Vermont.
       Conducted a workshop on reducing SF6 emissions with
       over 130 participants and 18 vendors. In addition, experts
       from fluorocarbon producers, equipment manufacturers,
       and the electric power, leak detection camera, and
   recycling industries participated. The 2-day event included
   a site visit to a substation where SF6 reduction techniques
   were demonstrated.
   Continued to work with partners to update SF6 reduction
   goals through the year 2012.
   Recognized two partners—Consolidated Edison Company
   of New York and Arizona Public Service—for their
   significant emissions reductions and their exemplary
   participation in the partnership.
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                                                                                 FLUORINATED GREENHOUSE GAS PROGRAMS
SF, EMISSION REDUCTION PARTNERSHIP  FOR THE MAGNESIUM INDUSTRY
The U.S. magnesium industry and the
International Magnesium Association
(IMA) are working with EPA through
the SF6 Emission Reduction Partnership
for the Magnesium Industry to identify
and adopt best management practices for reducing and

Achievements in 2008
SR Emission Reduction  ':"::':'::'
Partnership for the Magnesium Industry
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. In 2003,
partner companies and the IMA committed to completely
eliminating their firms' SF6 emissions by the end of 2010.
   Reduced SF6 emissions equivalent to .39 MMTCE. 2008 was
   the ninth year in which EPA collected annual SF6 emissions
   reports from magnesium industry partners.
   Organized and led the 4th Annual Global Magnesium
   Industry Climate Protection Workshop in conjunction with
   the 2008 Annual World Magnesium Conference in Warsaw,
   Poland. International industry and government officials
   participated in exchanging technical information on
   phasing out SF6-based melt protection.14
   Completed the fifth study of alternative melt protection
   technologies and associated air emissions. Partner
   company AMACOR 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.
                        Partner company Meridian Magnesium Die Casting
                        announced it has fully transitioned to alternative cover
                        gases in its North American manufacturing facilities.
MOBILE AIR CONDITIONING CLIMATE PROTECTION  PARTNERSHIP
Motor vehicle air conditioners contribute significantly to
global GHG 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, equal to about 17 MMTCE.15 Additionally, refrigerant
leakage adds 30,000 to 40,000 kilograms of HFC-134 each year,
equal to about 12 to 16 MMTCE.16

In 1998, the Society of Automotive Engineers (SAE)
International, the Mobile Air Conditioning Society
Worldwide, and EPA formed the Mobile Air Conditioning
(MAC) Climate Protection Partnership—a global voluntary
partnership to reduce the climate impacts of MAC systems.
Membership has grown to include 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 (see Figure 27, p. 66).
                      •  Communicate technical progress to policymakers and
                         the public.
 Full conference proceedings are available at: http://www.epa.gov/highgwp/magnesium-sf6/conf/conf_4thglobal.html.

 For more information, see Andersen, S., et a/., 2004. Carbon dioxide equivalent calculated with EPA Greenhouse Gas Equivalencies Calculator:
http://www.epa.gov/cleanenergy/energy-resources/refs.html.

  These figures are based on sales and official U.S. EPA estimates. According to industry sources, approximately 30,000 kilograms of HFC- 134a were sold into the U.S.
mobile air conditioning aftermarket in 2008. The U.S. GHG Inventory estimates that in 2007 approximately 40,000 kilograms of HFC- 134a were released from mobile air
conditioning. The GWPof HFC-134a is 1,430.
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ENERGY STAR and Other Climate Protection Partnerships 2008 Annual Report
       Document current and near-term opportunities to improve
       the environmental performance of MAC system design,
       operation, and maintenance.
     Achievements in 2008
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.
    •   Announced plans to introduce new air conditioning
       technology using refrigerants with low global warming
       potentials by 2011.
    •   Worked with international, national, state, and local
       partners to remove barriers to new refrigerants.
   Calculated the global lifecycle climate impact of the
   three major alternative refrigerants to determine which
   refrigerants have the best climate performance.
     What To Expect in 2009 and  Beyond for the FGHG Programs
    The FGHG 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:

    •   Benchmark current emissions reduction options and costs
       across high F-gas industries to support partnership and
       policy-making activities.
    •   Complete a lifecycle analysis of SF6 versus solid-state
       material in medium-voltage electric power equipment.
    •   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.
   Maintain  active partnerships with HCFC-22 chemical
   manufacturers to continue to reduce emissions of HFC-23.
    FIGURE 27. Over the Lifetime of a Vehicle, an IMAC* System Will
    Save More Than $700 and Prevent Nearly 5,000 Ibs of Greenhouse Gas Emissions
                                                                                                            6,000
                                GHG EmissionsAvoided (Ibs- CO,- EQ)
                                                                     10          12          14    15    16
                                                   Lifetime of Vehicle in Years
     ^Improved Mobile Air Conditioning (IMAC) 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.
66

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DEMONSTRATING PROGRESS
Demonstrating Progress: Measuring Results of the EPA Climate Protection Partnership Programs
EPA's climate protection programs are an important component of the U.S. government's strategy to
address climate change.  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. 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
  business-as-usual (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 that
  yield conservative benefit estimates.
• Cumulative estimated benefits reflect the stream of energy savings that will persist through 2018 due
  to investments made through 2008. For this analysis, EPA assumes no new investments will be made
  through its programs in 2009 or beyond.
• Financial benefits are placed in presentvalue terms.

Environmental and financial benefits for 2000 to 2008 are summarized in Table 1 on p. 3. The historical
environmental benefits and cost effectiveness  of these programs are summarized on pages 68 and
69 (see Table 22 and Figure 28). 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.
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ENERGY STAR and Other Climate Protection Partnerships 2008 Annual Report


    FIGURE 28. EPA Programs Are Highly Cost-Effective Mechanisms for Reducing GHG 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 study, "Reducing
       Greenhouse Gas Emissions: How Much at What Cost," that there are still great untapped opportunities for these programs
       to capture—meaning they will continue to be cost-effective far into the future. Every federal dollar spent on these
       partnership programs through 2008 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
    Through the ENERGY STAR program, EPA helps U.S.
    businesses and consumers save money and reduce GHG
    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."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.
   -  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.
    17
     For more details on many aspects of this method, see Homan et al., 2009 and Weber et al., 2000.
68

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                                                                                                                  DEMONSTRATING PROGRESS
TABLE 22.  Overview of EPA's Climate Partnership Programs Reviewed in this Annual Report with GHG Reductions Since 2000
GH
PROGRAM Bnnn
ADDR


GS
rtftfrn KEYSECTOR(S)
ESSED

Residential,
ENERGY STAR C02 Commercial,


Industrial
Commercial.
Climate Leaders All

Clean Energy-

Industrial

State
Environment State CO,
1 Government
Partnership
CLEAN ENERGY SUPPLY1

Green Power
c
Partnership


Combined Heat &


State & Local
Government,
0
2 Commercial,
Industrial

Commercial.
CO
Power Partnership
METHANE PROGRAMS

Industrial


Natural Gas STAR CH. Natural Gas

Coalbed Methane
4

Outreach Program CH4 Coal Mining
(CMOP)
Landfill Methane



Waste
Outreach Program CH.
(LMOP) Management
FGHG PROGRAMS
Voluntary
Aluminum


Aluminum
SCOPE OF
PARTNERS AS

OF 2008

15,000


250



16




1,000




250


62% of

industry

N/A



750


99% of
PFCs
Industrial
Partnership
HFC-23
Smelting

Chemical
HFCs
Partnership


Industry
Magnesium
Production,
Stewardship Semiconductor
o \ R \ rLvS
Programs


Mobile Air
Manufacturing,
Electric Power
Systems

Conditioning C02 HFCs MAC Industry
(MAC) Partnership

industry

100% of

industry


50%-100%
of industry



N/A

| GHG REDUCTIONS* (MMTCE)
^^^^^^^^^^^^^^^^^H
2000 2001 2002 2003 2004 2005 2006 2007 2008


15.2 17.7 21.3 25.0 28.5 32.2 36.3 41.4 45.0

Climate Leaders' reductions are reflected in the data shown for

other programs.


N/A N/A N/A N/A







N/A N/A 0.6 1.0 2.0 3.2 3.7 4.8 6.1





4.1 4.8 5.7 6.0 7.9 10.1 9.4 10.2 12.6


2.1 2.3 1.7 1.7 2.0 2.0 2.5 2.2 2.2



3.2 3.7 3.9 4.1 4.4 4.5 4.8 5.2 5.5



2.0 2.1 1.8 2.2 2.2 2.3 2.4 2.5 2.5



4.7 5.1 4.5 6.1 6.4 6.2 7.0 7.0 7.3



0.8 0.8 1.3 1.8 3.1 3.0 3.9 4.3 5.0




Working toward technology improvement goals

' GHG Reductions are for both the Green Power Partnership and Combined Heat & Power Partnership.
*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
                                                                                                                                            69

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ENERGY STAR and Other Climate Protection Partnerships 2008 Annual Report
    •   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.18 All
       energy bill calculations use national sector-specific fuel
       prices.
    •   Avoided emissions of GHGs for 2008 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.19 For future years, EPA uses factors
       derived from energy efficiency scenario runs of the
       integrated utility dispatch model. Integrated Planning
       Model (IPM®).20

    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 GHGs are
       determined using approaches similar to those described
       for products.
     Calculated using a 7% discount rate and2008 perspective.
     ' For more details on eGRID, see U.S. EPA, 2008.
     ' For more details on IPM, see U.S. EPA, 2006.
      For more details on many aspects of this method, see Horowitz, M.J., 2007,2008, and 2009.
     For more details on many aspects of this method, see Horowitz, M.J., 2009.
      For more details on many aspects of the previous methods, see Horowitz, M.J., 2004 and 2001.
Commercial Buildings
•  Annual electricity and natural gas savings are determined
   based on a peer-reviewed methodology developed for the
   commercial building sector.21 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 2008 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.22
•  The peak power savings are estimated using system-
   specific factors that reflect the contribution of the energy
   savings from lighting and other building improvements to
   peak load savings.
•  As with products, net energy bill savings reflect the
   incremental investment necessary to upgrade the building
   to ENERGY STAR specifications determined by using simple
   payback period decision criteria. EPA assumes most
   building and industrial facility improvements last at least 10
   years and uses national commercial sector fuel prices.
•  Avoided emissions of GHGs 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.23 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).
GHG emissions are calculated using marginal C02 emissions
as with products.
70

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                                                                                           ENERGY STAR: OVERVIEW
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 GHGs 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.

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 GHGs 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.
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 Program
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.
                                                                                                                 71

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ENERGY STAR and Other Climate Protection Partnerships 2008 Annual Report

    Landfill Methane Outreach Program
    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, the Landfill Methane Outreach
    Program's (LMOP's) 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 Program
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 GREENHOUSE GAS  PROGRAMS
    Due to the small pool of potential partners for the FGHG
    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 FGHG 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 GHG emissions and reductions that are
    a result of the program.

    The aluminum industry began making significant efforts to
    reduce FGHG emissions as a direct result of EPA's climate
    partnership program. Therefore, all reductions achieved by
    partners are assumed to be the result of the program.

    HFC-23 Emission Reduction Program
    Program partners report HCFC-22 production and HFC-23
    emissions to a third party that aggregates the estimates and
    submits the total  estimates for the previous year to  EPA.

    Reductions are calculated by comparing current emissions to
    a BAU baseline that uses the industry's 1990 emissions rate.
    Changes in the emissions rate are used to estimate the annual
GHG emissions and reductions that are a consequence of 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 GHG 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.
72

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 Figures
FIGURE 1.  GHG Emissions Reductions Exceed 85 MMTCE—Equivalent To Emissions
          From 57 Million Vehicles	4

FIGURE 2.  ENERGY STAR Benefits Continue To Grow	4

FIGURE 3.  2008 International Climate Protection Awards	5

FIGURE 4.  U.S. Electricity Generation by Fuel Type	11

FIGURE 5.  U.S. C02 Emissions by Sector and Non-C02 Gases by Percent of Total GHGs	11

FIGURE 6.  ENERGY STAR Award Winners	17

FIGURE 7.  More Than 2.5 Billion ENERGY STAR Qualified Products Purchased Since 2000	20

FIGURE 8.  Awareness of ENERGY STAR Growing in the United States	21

FIGURE 9.  Home Performance with ENERGY STAR Spreads Across the Country	25

FIGURE 10. More than 940,000 Homes Nationwide Bear the ENERGY STAR Label	26

FIGURE 11. ENERGY STAR Qualified New Homes Gaining Market Share	27

FIGURE 12. Amount of Rated Floor Space by State	30

FIGURE 13.16 Percent of Commercial Square Footage is Rated in 2008	31

FIGURE 14. Steady Growth in Building Space Benchmarked and Labeled (Sq. Ft. in Billions)	32

FIGURE 15. More Than 6,200 Buildings Have Earned the ENERGY STAR	32

FIGURE 16. The 251  Climate Leaders by Sector	39

FIGURE 17. GHG Emissions Avoided by EPA's Clean Energy Supply Programs	42

FIGURE 18. Green Power Purchases and Avoided GHG Emissions	43

FIGURE 19. Combined Heat and Power Capacity by State as of 2008	45

FIGURE 20. New and Updated Tools and Resources for States and Local Governments	48

FIGURE 21. Partner Actions Are Projected To Maintain Methane Emissions
          Below 1990 Levels Through 2012	54

FIGURE 22. Natural Gas STAR Cumulative GHG Emissions Reductions and Gas Savings	55

FIGURE 23. Direct Use and Electric Capacity of LMOP-assisted Projects	58

FIGURE 24. Landfill Gas Energy Projects Across the Country	59

FIGURE 25. GHG Reduction Potential of U.S.-supported Projects	60

FIGURE 26. Partner Actions Are Projected To Maintain Emissions of Fluorinated Gases
          Below 1990 Levels Through 2012	62

FIGURE 27. Over the Lifetime  of a Vehicle, an IMAC System Will Save More Than $700
          and Prevent Nearly 5,000 Ibs of Greenhouse Gas Emissions	66

FIGURE 28. EPA Programs Are Highly Cost-Effective Mechanisms for Reducing GHG Emissions	68
                                                                                                              73

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ENERGY STAR and Other Climate Protection Partnerships 2008 Annual Report
    TABLE 1.  Annual and Cumulative Benefits from Partner Actions Through 2008
             (in Billions of 2008 Dollars and MMTCE)	3

    TABLE 2.  ENERGY STAR Key Program Indicators, 2000 and 2008	6

    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	10

    TABLE 5.  ENERGY STAR Program Achievements Exceed  Goals in 2008	14

    TABLE 6.  Average Consumer Energy Savings of ENERGY STAR Qualified Products	16

    TABLE 7.  ENERGY STAR Product Specifications Added, Revised, and in Progress	19

    TABLE 8.  EPA Maintains Efficiency Standards with 125 Product Specifications and Revisions	23

    TABLE 9.  Summary of EPA ENERGY STAR Industrial Focuses	35

    TABLE 10. EPA Expands  ENERGY STAR for Superior Energy Management of Industrial Plants	36

    TABLE 11. Climate Leaders Key Program Indicators for 2004-2008 (Cumulative)	40

    TABLE 12. EPA Recognizes 16 Leading Green Power Partners in 2008	43

    TABLE 13. CHP Capacity Market Share	44

    TABLE 14. 2008 ENERGY STAR Combined Heat and Power Awards	46

    TABLE 15. Clean Energy-Environment State Partnership Grows to 16 Partners in 2008	49

    TABLE 16. State Progress Toward Meeting the Action  Plan Vision for 2025	52

    TABLE 17. EPA's Methane Programs Meet and Surpass Goals	54

    TABLE 18. 2008 Natural Gas STAR Awards	55

    TABLE 19. 2008 Landfill Methane Outreach Program Awards	60

    TABLE 20. Global Warming Potentials (GWPs) and Atmospheric Lifetimes of GHGs	62

    TABLE 21. Goals and Achievements of EPA's FGHG Programs	62

    TABLE 22. Overview of EPA's Climate Partnership Programs Reviewed
             in this Annual Report with Greenhouse Gas Reductions Since 2000	69
74

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

Climate  Protection Partnerships Division, U.S. Environmental
Protection Agency. 2009.  Partner and emissions data for 2008
provided by individual programs within the Climate Protection
Partnerships, Office of Atmospheric Programs.

Energy Information Administration (EIA). 2009a. Annual Energy
Outlook2009 with Projections to 2030. Office of Integrated Analysis
and Forecasting. March. Available online atwww.eia.doe.gov/oiaf/
archive/aeo09/index.html(DOE/EIA-0383(2009)).

EIA. 2009b. Annual Energy Review2008. Office of Energy Markets
and End Use. June. Available online atwww.eia.doe.gov/emeu/aer/
contents.html (DOE/EIA-0384(2008)).

EIA. 2009c. Electric Power Annual with data for 2007. January.
Available 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
www.eia.doe.gov/emeu/cbecs/cbecs2003/detailed_tables_2003/
detailed_tables_2003.html

Homan,  G.K., M. Sanchez, R.E. Brown, and J. Lai. 2009. Calendar
Year 2008 Program Benefits for ENERGY STAR Labeled Products.
Lawrence Berkeley National Laboratory.

Horowitz, M.J. 2009. "Energy Savings from ENERGY STAR for the
Commercial  Buildings and Industrial Sectors in 2008." Memorandum
to EPA August 7.

Horowitz, M.J. 2008. "Revised Final Estimates of 2007 ENERGY STAR
Commercial  Buildings and Industrial Sector Accomplishments."
Memorandum to EPA August 28.

Horowitz, M.J. 2007. "Changes  in Electricity Demand in the United
States from the  1970s to 2003."  The Energy Journal, Vo\ 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 (2):115-137.

Horowitz, M.J. 2001. "Economic Indicators of Market Transformation:
Energy Efficient Lighting and EPA's Green Lights." The Energy
Journa/,Vol22,Fall(4):95-122.
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
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Meyer (eds)], Cambridge University Press, Cambridge, UK, and New
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IPCC. 1996. Climate Change 7555: The Science of Climate Change.
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Kattenberg, and K. Maskell (eds)], Cambridge University Press,
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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
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National Action Plan for Energy Efficiency. 2008. National Action
Plan for Energy Efficiency Vision for 2025: A Framework for Change.
Available online atwww.epa.gov/eeactionplan.

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

U.S. Census Bureau. 2005. "Statistics for Industry Groups and
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U.S. Environmental Protection Agency (U.S. EPA). 2009a. Inventory
of Greenhouse Gas Emissions and Sinks: 1990-2007. Office of
Atmospheric Programs. April. (EPA430-R-09-004).

U.S. EPA. 2009b. National Awareness of ENERGY STAR for 2008:
Analysisof 2008 CEE Household Survey. Office of Air and Radiation,
Climate Protection Partnerships Division. Available online at www.
cee1.org/eval/2007_ES_survey_rep.pdf.

U.S. EPA. 2008. Emissions & General Resource Integrated Database
2007 Version 1.1  (Egrid2007 Version 1.1). April. Available online at
www.epa.gov/cleanenergy/energy-resources/egrid/index.html.

U.S. EPA. 2007. Maintaining the Value of ENERGY STAR. Available
online at www.energystar.gov/ia/partners/downloads/lntegrity_
Report_2007.pdf

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

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.
                                                                                                                                75

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United States
Environmental Protection Agency
Air and Radiation 6202J
EPA XXX-X-XX-XXX
www.epa.gov
December 2009

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