# Presentation: 282633

## Designing Voluntary Pollution Prevention Programs in the Real World:  Some Stories from the Front Lines

- Jonathan Koomey, Ph.D.
- Lawrence Berkeley National Laboratory
- JGKoomey@lbl.gov, 510/486-5974, http://enduse.lbl.gov/
- Talk is on the web at http://enduse.lbl.gov/shareddata/energystartalk.ppt
- Presented at the Donald Bren School of Environmental Science and Management Colloquium
- UCSB, Santa Barbara, CA
- May 17, 1999

## Types of voluntary programs

- Energy labeling/Eco-labeling (FTC appliance energy labels, Green Seal)
- Manufacturer-focused (Energy Star products, Energy Star Homes)
- End-User-focused (Green Lights, Energy Star Commercial Buildings, industrial agreements)
- Government procurement

## ENERGY STAR-labeled products

- Clothes Washers
- Dishwashers
- Refrigerators
- Room Air Conditioners
- TVs, VCRs, Audio Equipment
- Home Heating and Cooling Products
- New Homes
- Windows
- Residential Lighting Fixtures
- Roof Products
- Insulation

- Exit Signs
- Office Equipment
- Transformers
- Roof Products
- Insulation
- Commercial Buildings

- Residential

- Commercial

- See http://www.energystar.gov/ for more details

## Key considerations for designing successful voluntary programs

- Build brand recognition and help make profits for program partners
- Measurable savings (need test procedures)
- Significant savings based on off-the-shelf technologies (need data for negotiations)

## Standby power for TVs

- Source:  Karen Rosen, LBNL, May 1999, KBRosen@lbl.gov

**Share of units measured**

## Key considerations (continued)

- Mass production easiest, custom systems (homes and commercial buildings) harder
- Industry and market structure (concentration, foreign vs. domestic, owned vs. leased equipment [e.g., vending machines])
- Labeling products vs. labeling/certifying institutions (industry agreements)

## More key considerations

- Government purchasing/procurement can be important
- The international context (EU, Japan, Australia, New Zealand, Canada, Brazil, etc)
- Need data for implementation (see map)

## GIS Analysis

## Designing the Multifunction Device (MFD) Office Equipment Program

- Process
- create a draft
- respond to written comments, revise and go back to first step eight (!) times
- meet with key manufacturers
- have a big meeting to finalize
- revise
- find out that some manufacturers still don’t agree,though they said they did in the meeting

## Designing the Program (cont.)

- Process (continued)
- have a drink with your EPA program manager (after work hours, of course)
- revise
- finalize MOU and sign up partners
- launch program
- create amendments to address overlooked issues
- Manufacturer’s roles

## Designing the Program (cont.)

- Defining MFDs
- first tried copying and printing plus either faxing or scanning (or both), but settled on copying plus either printing or faxing
- integrated vs. single piece
- upgrades in the field
- large format
- Loopholes

## If energy efficiency is such a good idea, why don’t people do it anyway?

**Engineering-economic analysis**

**Engineering-economic analysis**
**plus transaction costs**

**Results with policy or program that reduces transaction costs**

- Source:  Adapted from Katrin Ostertag *Transaction costs of raising energy efficiency.*  Working paper, May 1999.  Presented at the IEA International Workshop on Technologies to Reduce Greenhouse Gas Emissions:  Engineering-Economic Analyses of Conserved Energy and Carbon.  Washington, DC.  5-7 May 1999.  This example assumes that the energy efficient technology delivers the exact same service as the standard technology.

## Industrial Sector Voluntary Agreements by Companies

## Conclusions

- Data on current efficiency and future potentials are critical to
- negotiations with industry
- implementation of programs
- Voluntary programs create champions within companies who promote energy efficiency inside the institution
- Voluntary programs reduce transaction costs and allow consumers to capture cost-effective savings (pollution prevention at a profit)