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

  2011 Annual Report   Recover Recycle Reclaim

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

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

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

Some RAD partners also reduce energy consumption by encouraging appliance owners to
permanently retire old, inefficient units. For example, many utility partners offer cash incentives
to customers for the pick-up of old, working refrigerators.

The RAD Program's benefits are both global and local. The avoided emissions of ODS  and
GHGs result  in global environmental benefits, while preventing appliance dumping and releases
of hazardous/toxic materials keeps communities clean.

This annual report presents the RAD Program environmental benefits for 2011.
        Appliance Disposal
      Under the RAD Program


    Consumers
Appliance Recyclers
             Reclamation
             Destruction
             Reclamation
             Destruction
                                                                                            PCBs, Used Oil,
                                                                                            Mercury 	>• Proper
                                                                                                         Disposal
                                                                                      Recover  Recycle  Reclaim    2011 Annual Report

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                  i
Metal, Plastic, and Glass
Casing/Refrigerator Shell
     139 Ibs. Metal
     21 Ibs. Plastic
     3 Ibs. Glass
                                            CFC-11
                                        Foam Insulation
                                            0,9 Ib.
                           Used Oil
                     (May be contaminated)
                           0.06 gal.
PCBs
(May be contained
in capacitor)
Small Quantities

CFC-12
Refrigerant
O.BIb.

Mercury-containing
Components
Small Quantities
                                                                                  The Need for the
                                                                                  RAD  Program
EPA estimates 9.4 million refrigerators and freezers,
6.3  million window air-conditioning units, and nearly
964 thousand dehumidifiers were disposed of in the
United States in 2011.

Because these appliances contain ODS, GHGs, hazardous
substances, and recyclable materials, disposing of them using
best environmental practices results in significant benefits for the
environment and human health. Federal law requires that prior to
disposal or recycling of appliances (1) all refrigerant be recovered,
and (2) universal waste (e.g., mercury), used oil, and PCBs be
properly managed and stored. However, the laws do not require
the recovery of appliance foam, which is also a source of ODS and
GHG emissions.

Further, studies estimate that up to 25% of disposed refrigerators/
freezers are resold onto the secondary market, resulting in
increased energy demand from the continued use of older, less
efficient models.* RAD helps reduce this energy demand by
promoting responsible disposal of older appliances.
                                                                                  *Based on information presented in the following reports:
                                                                                  NMR Group, Inc. and Cadmus Group, Inc. 2011. "The Massachusetts Appliance Turn-in Program-
                                                                                  Secondary Market and Appliance Disposal Report."
                                                                                  U.S. Department of Energy. 2009. "Refrigerator Market Profile."
                                                                                  Innovologie. 2010. "An Evaluation of Energy Trust of Oregon's Refrigerator Recycling Program."
                                                                                  Innovologie. 2010. "Final Report: Process and Market Evaluation of Southern California Edison's
                                                                                  Appliance Recycling Program 2006-2008."
2    2011 Annual Report    Recover Recycle  Reclaim

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RAD  Partners and Affiliates
Forty-four partners and affiliates reported their accomplishments for
the RAD Program from January 1, 2011,  through  December 31, 2011:
 • American Electric Power (OH)
 • Appliance Smart (Nationwide)
 • Arizona Public Service (AZ)
 • Austin Energy (TX)
 • Avista Utilities (WA)
 • Baltimore Gas & Electric Company
   (MD)
 • Best Buy (Nationwide)
 • Cape Light Compact (MA)
 • City of Burbank  Water & Power (CA)
 • City of Fort Collins Utilities (CO)
 • City of Lodi Electric Utility (CA)
 • City of Palo Alto Utilities (CA)
 • City of Richland Energy Services (WA)
 • City of Riverside Public Utilities (CA)
 • Commonwealth Edison (IL)
 • Consumers Energy (Ml)
 • Dayton Power & Light Company (OH)
 • Energy Trust of  Oregon (OR)
 • GE Appliances (Nationwide)
 • Georgia Power (GA)
 • Great River Energy (MN)
 • The Home Depot (Nationwide)
 • Hoosier Energy  (IN)
 • Idaho Power (ID)
Indiana Michigan Power (IN, Ml)
National Grid (MA, NH, NY, Rl)
Nebraska Public Power District (NE)
New York State Energy Research &
Development Authority (NY)
Northern Indiana Public Service
Company (IN)
NV Energy (NV)
Pacific Gas & Electric Company (CA)
PacifiCorp (CA, ID, OR, UT, WA, WY)
PNM (NM)
Puget Sound Energy (WA)
Sacramento Municipal Utility District
(CA)
Salt River Project (AZ)
San Diego Gas & Electric (CA)
Sears Home Services (Nationwide)
Silicon Valley Power (CA)
Snohomish Public Utility District No.1
(WA)
Southern California Edison (CA)
Vectren Energy Delivery (IN, OH)
West Virginia Department of
Environmental Protection (WV)
WPPI Energy (Wl)
Program Growth
RAD has grown significantly over the last 5 years.
In the last year, the program has expanded from
34 to 44 partners and affiliates.
    45
    35 -
    30 -
    25 -
    20
 Z  15
 0)
 J2
 E  10
          2007
2008
2009
2010
2011
           Manufacturer Partners
           State Affiliates
           Retail Partners
           Utility Partners
                                                                                       Recover  Recycle  Reclaim    2011 Annual Report   3

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                                                RAD  Partner  Activities

    "Sears welcomes opportunities like the
    RAD Lunch to exchange ideas and explore
    new options for collaboration with EPA and
    all RAD partners—retailers, manufacturers,
    and utilities alike.

    —Gary Fenske,  Home Services,
     Sears Holdings Corp.
    During our first year as a RAD Partner,
    National Grid worked with prominent local
    artists in Rhode Island to create an exhibit of
    painted refrigerators that were scheduled for
    disposal. The refrigerators were displayed in
    public areas to encourage our customers to
    recycle  their old appliances—and helped us
    collect over 6,500 refrigerators/freezers in
    Rhode Island for recycling and safe disposal.

    —Timothy F Horan, President,
     National Grid, Rhode Island
In 2011,  RAD partners worked to advance appliance recycling through information
exchange and innovative campaigns.

Idea Exchange and Collaboration Among RAD Partners
RAD continually explores new opportunities to enhance discussion among partners to share best
practices, obstacles, and lessons learned. On November 9, 2011, EPA held its first RAD Partner Lunch
at the ENERGY STAR® Products Partner Meeting in Charlotte, North Carolina. The lunch gave partners
the opportunity to share RAD successes, challenges, and lessons learned.

Twelve RAD partners, two appliance recycling
companies, and EPA representatives attended. The
dialogue focused on how to enhance partnerships
between RAD utilities, retailers and manufacturers.
Specifically, participants discussed:

 • Ways to improve communication and
   information-sharing;
 • Opportunities for utilities and retailers to
   better  understand each other's objectives
   and needs when removing appliances from
   the grid; and
 • Prospects for partnering on consumer recycling
   education campaigns.
Fridge designed by artist Andrew Solan entitled "I Recycle"
displayed in downtown Providence for National Grid's Fine Art
of Recycling campaign.
Innovative Campaigns
To promote safe appliance disposal through consumer awareness, some RAD partners launched
innovative campaigns—including use of creative advertising to customers, high-profile recycling contests
with the chance to win  new ENERGY STAR® qualified appliances, and school and community art exhibits.
One great example is the Fine Art of Recycling campaign launched by National Grid, a new RAD partner,
in July 2011. The Providence, Rhode Island launch event was attended by the city's mayor, Angel Taveras,
and helped raise customer awareness about appliance recycling through an exhibit of painted refrigerators.
4    2011 Annual Report     Recover  Recycle Reclaim

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RAD Manufacturer
In 2011,  RAD welcomed General Electric (GE) as its first manufacturer partner
and the country's first supplier for a fully automated UNTHA Recycling Technology
(URT) System.

GE Appliances became the first RAD Partner to send used appliances to the URT System at Appliance
Recycling Centers of America's (ARCA's) Advanced Processing (AAP) recycling facility in Pennsylvania.
The 40-foot tall URT Refrigerator Plant captures refrigerants and blowing agents and recovers and sorts
materials, such as the plastic liner, aluminum, copper, steel, and insulating foam. ODS gas in foam is
subsequently recovered during a grinding process under negative pressure, and then condensed to a liquid
and collected in storage tanks. The degassed foam is compressed into pellets which can be used as fuel
for other processes. Captured materials and substances are sold by ARCA for reuse, recycled or properly
destroyed. The AAP facility, located in Philadelphia, receives appliance volume from 12 Northeastern and
Mid-Atlantic states. According to GE, the high population density and appliance volume in the region,
coupled with the logistics opportunities with GE Appliances' customers such as new RAD retail partner,
The Home Depot, were critical factors in making this advanced recycling project viable.

The AAP recycling facility's de-manufacturing process and sealed refrigerator recycling system can process
one refrigerator or freezer per minute (AAP expects to process 150,000 refrigerators and freezers annually),
recovering the following materials:
 •  CFC, HCFC, HFC, and
    hydrocarbon refrigerants
    and foam blowing agents
 •  Ferrous and nonferrous
    metals
•  PCB-containing
   capacitors
•  Mercury-containing
   components
•  Used oil
•  Glass
•  Rubber
•  Plastics
•  Power cords
•  Universal waste
This fully automated refrigerator recycling technology can recover approximately 95% of the insulating foam
contained in refrigerators and freezers and is estimated to reduce typical refrigerator landfill waste by 85%
(by weight). By ensuring a high recovery rate for materials and increasing the volume of units that can be
processed, this system allows for significant reductions of GHG and ODS emissions. ARCA has provided
more than 50 green jobs in the process, showing that environmental and economic success can be achieved
simultaneously. RAD partner and recycler projects like this demonstrate the potential for future growth in
foam recycling technology throughout the country.
                                                                    Top: URT System recycles a refrigerator at September 2011
                                                                    media event. Bottom: Shawn Garvin, U.S. EPA Region 3
                                                                    Administrator recognizes GE, ARCA, and Home Depot for
                                                                    their roles in advancing appliance recycling.
General Electric is proud to join EPA's RAD
Program and be the nation's first manufacturer
to supply volume for North America's first
URT recycling system. Appliance recycling
using advanced environmental technologies
such as the URT system is an example of
a market-based system working to deliver
environmental benefits. EPA's RAD program
provides important encouragement for
advanced recycling efforts such as these,

—Mark Shirkness, GE Appliance Distribution
  Services, General Electric
                                                                                              Recover  Recycle  Reclaim    2011 Annual Report

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                                                                    Results
           Refrigerators awaiting processing at an ARCA appliance recycling
           facility that services RAD partner. Southern California Edison.
    PG&E was an early adopter of EPA's Responsible Appliance
    Disposal program. Through the program, we have helped
    customers recycle thousands of old, inefficient refrigerators
    and freezers using the best environmental practices. PG&E is
    proud to provide our customers the significant environmental
    benefits and energy savings that are possible through the
    Responsible Appliance Disposal program.
    —Larry Goldstein, Director Customer Energy Solutions,
     Pacific Gas and Electric Company
In 2011, RAD's 42 partners collected and processed a total of
890,473 refrigerant-containing appliances, including:

 •  802,712 refrigerators
 •  81,630 stand-alone freezers
 •  5,253 window air-conditioning units
 •  878 dehumidifiers

By disposing these units using the best available practices, RAD partners have
helped protect the ozone layer, reduce GHG emissions, reduce energy use, and
increase recycling. The environmental benefits are described in the following pages.

Total Number of Refrigerant-Containing Appliances Processed
by RAD Partners, 2007-2011
    900,000 -

    800,000

    700,000

    600,000
-a
%  500,000
03
05
£  400,000
Q_
•f  300,000

    200,000
                                                                                                                                    890,473
                                                                                                                        735,442
    100,000 -

          0
               2007
2008
                 Dehumidifiers
                 Air-Conditioning Units
 2009        2010
Stand-Alone Freezers
Refrigerators
2011
6    2011 Annual Report    Recover  Recycle Reclaim

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Stratospheric  Ozone  Benefits

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

Partners recover foam from appliances manually or by using an automated system, and then
destroy the foam-blowing agents. Foam destruction  is typically performed using municipal solid
waste incinerators (e.g., waste-to-energy facilities) or rotary kiln incinerators. On average, partners
recovered 0.45 Ib. of refrigerants and 0.86 Ib. of foam-blowing agents from each refrigerator/
freezer. Across all equipment types, RAD partners recovered a total of 179,300 Ibs. of CFC
and HCFC refrigerants, and 765,300 Ibs. of CFC and  HCFC foam-blowing agents. By avoiding
the release of these refrigerants and foam-blowing agents into the environment, an estimated
948,800 Ibs. of ODS emissions (330 OOP-weighted  metric tons)  were avoided during 2011.


Refrigerants and Foam-Blowing Agents Reclaimed or Destroyed by RAD Partners in 2011
    600,000-
CD

O

00
CD
Q

CD
E
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o
CD
DC
    500,000


    400,000-


    300,000-


    200,000
o   100,000-
Q.
               CFC-12
                         HCFC-22

                        Refrigerant

                        • Destroyed
                        • Reclaimed
HFC-134a
CFC-11    HCFC-141b   HFC-245fa

      Foam-Blowing Agent

           Destroyed
                                                                                                Characteristics of Gases Used as
                                                                                             Refrigerants and Foam-Blowing Agents
                                                                                               in Appliances Reaching End-of-Life
                                                                                                     Global
                                                                           Ozone
                                                                                         Compound
                                                                Warming   Depletion
                                                                Potential   Potential
                                                                 (GWP)'     (OOP)
                                                                    Predominant
                                                                       Use in
                                                                     Appliances
C02
CFC-11
CFC-12
HCFC-22
HCFC-141b
HFC-134a
HFC-245fa
1
4,750
10,900
1,810
725
1,430
1,030
0
1
1
0.055
0.11
0
0
--
Foam
Refrigerant
Refrigerant
Foam
Refrigerant
Foam
                                                                                        * GWP calculations are based on the 100-year direct GWPs provided
                                                                                         in the Intergovernmental Panel on Climate Change Fourth Assessment
                                                                                         Report (2007).
                                                                                        Recover Recycle Reclaim    2011 Annual Report    7

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                                                       Climate Benefits
          In 2011, RAD partners achieved
          climate benefits equivalent to:
           467,200 passenger cars
           NOT driven for one year
Source: EPA's Greenhouse Gas Equivalency Calculator. Available at
www.epa.gov/cleanenergy/energy-resources/calculator.html.
*This does not include GHG emissions reductions associated with early
 appliance retirement.
CFCs,  HCFCs, and MFCs contained in appliances all contribute to
climate change.

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

During 2011, RAD partners achieved the reduction of 2.38 million metric tons of carbon dioxide
equivalent (MMTC02eq), which is equivalent to approximately 467,200 passenger car emissions
for one year. Of this, 42% can be attributed to reclaiming or destroying refrigerants, 51%  to
reclaiming or destroying foam-blowing agents, and 7% to recycling durable materials. Additional
climate benefits are realized through energy savings detailed on the next page.

GHG Emissions Avoided through Proper Appliance Disposal by RAD Partners
                                                        -£  2,500,000
                                                        CD
                                                          CM
                                                        o
                                                        H  2,000,000
 "S  1,500,000
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             0
                                                                                                                      2,382,400
                                                        CD
                                                        I
                                                        o
                                                                          2007       2008        2009       2010        2011

                                                                      Durable Goods Recycling    • Foam Recovery    • Refrigerant Recovery
     2011 Annual Report    Recover Recycle  Reclaim

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

Replacing old, inefficient appliances with new ones reduces the amount of electricity needed to
power them and, therefore, the amount of indirect GHG emissions released. In 2011, appliance
recycling programs operated by the 37 RAD utility partners covered a territory of 30.7 million
households across 26 states, representing approximately 26% of U.S. households. In total, RAD
utility partners reduced energy use by more than 3.2 billion kilowatt-hours (kWh) by removing old
refrigerators, stand-alone freezers, window air-conditioning units, and dehumidifiers from the grid.
These energy savings translate to climate benefits of approximately 2.28 MMTC02eq and are
estimated to have saved consumers $424 million.

RAD Utility Partners Across the United States
•  On average, refrigerators collected by RAD
   utility partners in 2011  were over 20 years old.
•  Replacing an inefficient, approximately
   20-year-old refrigerator with one that is
   ENERGY STAR®qualified will save a household
   roughly 550 kWh/year—or about $65/year.*
•  If a secondary refrigerator (e.g., in a
   basement or garage) is removed and not
   replaced, individual households can save over
   1,000 kWh/year, or roughly $115/year.*
* Actual energy and costs savings will vary by equipment model
 and region.These estimates are conservative and are based
 on national averages (Energy Star 2012 Databook).
                                                                                                    States with Participating Utilities
                                                                                                    States without Participating Utilities
                                                                                            Recover Recycle  Reclaim     2011 Annual Report

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   Students learn about the benefits of recycling refrigerator components during a school field trip to a
   JACO Environmental appliance recycling facility that services RAD partner, NV Energy.
Environmental  Benefits

for  Communities

In 2011, RAD partners further protected the
environment by keeping recyclable materials out
of landfills and ensuring the proper handling of
hazardous waste, as shown below.

Materials prevented from going to a landfill:
 • 105.7 million Ibs. of ferrous metals
 • 17.5 million Ibs. of non-ferrous metals
 • 18.7 million Ibs. of plastic
 • 2.6 million Ibs. of glass

Toxic or hazardous materials properly handled:

 • 0.06 million gal. of used oil
 • 48,400 PCB-containing capacitors
 • 44,400 mercury-containing components

If released into the environment, used oil can leak into groundwater
and major waterways and pollute drinking water sources. In addition
to used oil, appliances may contain toxic chemicals and heavy metals—
namely PCBs from capacitors and mercury from thermostatic switches.
PCBs are regulated by EPA as toxic substances; they may cause cancer
and liver damage and can have negative impacts on the neurological
development of children, the human reproductive system, the immune
system, and the endocrine system. Mercury is toxic and causes a variety
of adverse health effects, including tremors, headaches, respiratory failure,
reproductive and developmental abnormalities, and potentially, cancers.
10    2011 Annual Report    Recover Recycle  Reclaim

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Increasing  Program Benefits  Over Time

In 2007, nine RAD partners recovered 63,400 Ibs. of refrigerants and
147,700 Ibs. of foam-blowing agents. As of 2011, the program has
expanded to 42 partners and two state affiliates, which have recovered
405,500 Ibs. of refrigerant and 771,300 Ibs. of foam-blowing agent.

As the program matures, the relative number of units collected with CFC-based refrigerant and
foam-blowing agent is decreasing, while the number with HFC refrigerant and HCFC-based
foam-blowing agent is increasing.
                                                                      In 2011, PacifiCorp ran a campaign to promote
                                                                      responsible appliance disposal, involving special
                                                                      mailers and other marketing materials sent to our
                                                                      customers. Our participation in the RAD Program
                                                                      has benefitted our outreach efforts by assuring
                                                                      our customers that their old appliances are being
                                                                      recycled according to the best environmental
                                                                      practices recognized by EPA.

                                                                      —Greg Stiles, Program Manager, PacifiCorp
Refrigerants and Foam-Blowing Agents Recovered by RAD Partners, 2007-2011
   800,000	
   700,000
 o  200,000

   100,000
                                                                                                             6,100
2007      2008       2009       2010
                   Refrigerant
           HFC-134a     I HCFC-22    • CFC-12
2011
2007      2008       2009        2010
                Foam-Blowing Agent
        • HFC-245fa     HCFC-141b   • CFC-11
                                                                                                              2011
                                                                                 Recover Recycle Reclaim   2011 Annual Report    11

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   RAD Partners and Affiliates

   Utilities, Retailers, and Manufacturers
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12    2011 Annual Report   Recover Recycle  Reclaim

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Working Toward  a Safer Tomorrow
CFC and HCFC refrigerants and foams contained in older appliances
can damage the ozone layer and climate system if  not properly recovered
at equipment disposal.

Global production of new appliances is moving away from the use of CFCs and HCFCs.
However, because appliances can last a long time, older appliances being retired today
still contain CFCs and HCFCs. Newer units contain HFC refrigerants and foam-blowing
agents that, while non-ozone-depleting, have high global warming potentials. If not
properly handled at end-of-life, emissions from these HFC units can be damaging to
the climate system. As RAD partners work to properly recycle appliances using best
environmental practices, the environmental benefits will continue for years to come.

Fortunately, new technologies and growing capacity for recovering refrigerants and
foams from appliances are increasing the  ability to capture harmful substances at
appliance disposal sites nationwide. The RAD Program, its partners, and innovative
recyclers have been critical in this progress. Together, we will continue to build
momentum and keep working towards a safer tomorrow.

To learn more, visit:
U.S. Environmental Protection Agency
Stratospheric Protection Division
www.epa.gov/0zone/partnerships/rad
                                                                                    Refrigerator door design by McNeil High School; winnerof
                                                                                    Austin Energy's high school art contest to increase awareness
                                                                                    of responsible appliance disposal.
                                                                                Recover Recycle Reclaim   2011 Annual Report    13

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