Future Programs for Environmental Best
Practices
Following the flagship Green Nylon Manufacturing program,

EPA is planning the introduction of similar programs, targeting
the following opportunities:

Livestock Waste Lagoon Methane Recovery
Livestock Dietary Strategies

As technologies evolve and market conditions change, EPA will modify and
expand this list.

7. STRATEGIES TO EXPAND INTERNATIONAL
MARKETS

Flagship Program: Natural Gas Pipelines in Russia

EPA’s experience in its voluntary programs often points
naturally to international opportunities, many of which are
mentioned in this document. For example, EPA’s natural gas
experience in the U.S. led to an initiative in Russia, the largest
natural gas producer in the world. Current estimates suggest
that about 5 percent of the gas produced in the former

i (Bs

U.S.S.R—approximately 25 Teragrams (Tg) of methane—is
released into the atmosphere. EPA and Russian gas specialists
are working together to reduce leakage of this greenhouse gas
to 2 percent by adopting existing and profitable Western tech-
nology and work practices.

EPA and GAZPROM (the Russian Gas Association) have
established a working group of experts from both countries
and are developing projects to increase the efficiency of the
natural gas system in Russia. Projects will be chosen from sev-
eral areas, including: enhanced field maintenance; upstream
refining of gas; leak detection and mapping; pipeline con-
struction and rehabilitation; compressor upgrades; power
generation; and improved measurement and control devices.
The Russian Natural Gas Pipeline project expects to transfer a
mobile methane monitor to Russia in late 1992, and identify
pilot projects early in 1993.

The Russian Natural Gas Pipeline project could reduce
methane emissions 15 Tg, the equivalent of 90 million metric
tons of carbon—while providing additional capital resources
for new economic development projects in Russia, and creating
further export and investment opportunities for U.S. industry.

Summer 1994: Fall 1994: Fall 1994: Winter 1995: Winter 1995:
Expert panel updates CAA. EPA helps Brazil produce Green Buildings Partners Phase I utilities can earn Mass market debut of
Amendment Conservation high-efficiency compressors commit 1 billion f? “reduced utilization” conser- “Golden CarrotTM”

Verification Protocol

vation credit washer /dryers


Through a mass purchase, however, it is possible to reduce
the risk to manufacturers to invest more heavily in VSD produc-
tion. A group buy will signal that VSDs are no longer a “niche
product”—that it is time to gear up to larger product lines in
order to meet a large and growing demand. This drives down
prices—in fact, it is reasonable to believe that large markets
enhanced by EPA’s Green Buildings program and other utility
rebate initiatives will make the first cost of the most efficient
products comparable to the first cost of the least efficient ones.

Future Mass Purchasing Programs

Following the flagship VSD mass purchase, EPA is planning
the introduction of similar programs, targeting the following
technical opportunities:

Green Buildings Technologies
Solar Thermal Water Heaters
Amorphous Core Transformers

As technologies evolve and market conditions change, EPA will modify and
expand this list.

4. STRATEGIES TO ENCOURAGE

COMMERCIALIZATION OF RESOURCE-
EFFICIENT TECHNOLOGIES

Flagship Program: “Golden CarrotTM” SuperE ficient
Refrigerator Program

Appliance manufacturers often report that it is technically
possible to produce more energy-efficient products. From a
business standpoint, however, investing in this production has
often appeared unwise, since the most efficient products cur-
renty on store shelves are not purchased in large quantities.
Why invest in the next generation?

The “Golden CarrotTM?” is why. By aggregating a large pool
of appliance rebate money, utilities are giving appliance manu-
facturers a financial incentive—the most powerful market sig-
nal they can send—to make the most energy-efficient appli-
ances possible.

The flagship “Golden CarrotTM” appliance is the refrigera-
tor. Refrigerators consume 20 percent of all residential electric-

eS

f/

Winter 1993: Winter 1993:

Launch Animal Waste
Outreach Program to
states/livestock producers/
rural electric coops

Spring 1993: Spring 1993: Spring 1993:

VSD for air handlers
group buy

Amorphous core transformer
group buy

Launch outreach program on

Launch commercial rooftop
“Nega-allowances”

air conditioning “Golden
CarrotTM” initiative


U.S. ACTIONS TO CURB CARBON DIOXIDE EMISSIONS
USS. Views on Global Climate Change, Department of State, April 1992 (continued)

Potential Year 2000 Electric Year 2000
Technical Market Energy Carbon
Action/Description Improvement Penetration Savings Reduction
(BkWh) (MMT C)
Residential Space Heating

- New 20% 8%

- Old 10% 10% 2.4 0.5
Residential Central Air Conditioning 29% 40% 9.6 2.0
Residential Room Air Conditioning 19% 40% 1.2 0.3
Residential Cooking 8% 40% 1.2 0.3
Commercial Cooking 20% 30% 18 0.4
Industrial Electrolytics 20% 13% 18 0.4
Amorphous Core Transformers 70% 25% 9.0 19
Miscellaneous Residential

and Commercial End Uses 13% 40% 15.0 3.1
Better Refrigerants 5% 80% 8.2 18
Tire Inflation, Auto Inspection

and Maintenance, etc. n/a n/a 3.0
1991 Transportation Act n/a n/a n/a 4.0
Subtotals: Gross Additional Carbon Actions 306-429 75-108

1 Homes with gas heaters
2 Homes wiih electric heaters

s om . SB

1996: 1996: 1996: 1996:
India markets super-efficient Green Buildings Partners Green Lights Partners 500,000 solar thermal water Utilities installing amorphous
non-CFC refrigerator reach 4 billion ft upgrading 10 billion heaters installed nationwide core transformers approach

10% of total


While scientific uncertainty over the nature of climate change
remains, the public is raising other important questions: “What can
we do about climate change?” and “How much will it cost?”

The success of programs implemented by EPA suggests not
only that significant reductions of greenhouse gases are achiev-
able at low cost—but that they can be profitable! EPA’s voluntary
greenhouse programs seek to strategically enhance the market.
These programs provide mechanisms for improving energy effi-
ciency, which leads to reduced fossil fuel use and lower carbon.
dioxide emissions, as well as capturing and using methane, a
powerful greenhouse gas.

This document describes EPA’s voluntary greenhouse pro-
grams for industry, state and local governments, and others with-
in the energy and environmental community. The early assis-
tance and involvement of these organizations is essential to the
development and continuing success of EPA’s greenhouse pro-
grams. Public/private partnerships that increase the efficiency
with which we use our resources can reduce greenhouse gas
emissions and other air pollution, save consumers money, and

increase the competitiveness of our businesses.

EPA’S VOLUNTARY GREENHOUSE PROGRAMS—
A NEW PERSPECTIVE

VOLUNTARY GREENHOUSE PROGRAMS

EPA envisions a rapid rollout of its voluntary greenhouse pro-
grams, as illustrated by the timeline beginning on the previous page.
Other events supporting the voluntary efforts are included in the
timeline as well.

: Green Lights Consortium for
bY Energy Efficiency

Corporate Purchasing New Technology
Energy Star a Reports
Advisory Committee Nes Mass Purchases

Regulatory/ Environmental
Legal Support Best Practices

“Golden CarrotTM” International

Cooperation

Dates prior to July 1992 are historical; those following the fall of 1992 are
subject to significant uncertainty and are included t6 provide a template
for EPA’s anticipated actions.

June 1992:

EPA Greenhouse Programs
Advisory Sub-Commitice
selection begins

&
June 1992:
EPA testifies in Georgia hear-

ing on utility regulatory
reform

July 1992:

Utilities commit ~$30 million
in “Golden CarrotTM”
Refrigerator incentives,

REP issued

‘ Ks,
July 1992: July 1992:

Brief Ohio Public Utility

U.S-Russian natural gas meet-
Commission

ing in Moscow


THE CLIMATE IS RIGHT FOR ACTION

As we move forward at EPA, it becomes increasingly obvious
that environmentalists and business leaders are often pursuing
the same goals. Only by incorporating environmental concerns
can economies truly prosper; only by taking advantage of eco-
nomic forces can environmental protection goals be realized.
Through the voluntary programs to reduce greenhouse gases,
EPA and its private-sector partners seek to do both—by embrac-
ing sound, cost-effective pollution reduction opportunities and
enhancing natural market forces to save energy, reduce pollu-
tion, and mitigate the risk of climate change. In fact, EPA’s
greenhouse programs, along with other U.S. actions, have the

potential to significantly reduce greenhouse gas emissions.

Winter 1995:

~1 million homes
insulated/heated with Energy
Star products

Winter 1995:

Green Gas Partners commit
30% of natural gas transmis-
sion and distribution

&
Winter 1995:

Alll states remove legal barri-
ers hindering methane recov-
ery at mines

“We came to Rio with an adion plan on imate change
..My administration published a detailed program of specific
measures that the U.S. was prepared to undertake to address
dimate change... Letus join in translating the words spoken

here into concrete action to protect the planet.”

President George Bush
June 12, 1992, Rio de Janeiro, Brazil

Spring 1995:

EPA Energy Star logo debut
on room air conditioners

Spring 1995:

Mass market debut of
“Golden CarrotTM"” heat

pumps

19


U.S. ACTIONS TO CURB CARBON DIOXIDE EMISSIONS
US. Views on Global Climate Change, Department of State, April 1992

Potential Year 2000 Electric Year 2000
Technical Market Energy Carbon
Action/Description Improvement Penetration Savings Reduction
(BkWh) (MMT C)
Demand-Side Management
(DSM) /Green Lights
- Commercial/Industrial 65% 25% -62% 81-203 17.0-50.1
- Residential 75% 27% 23.4 49
DSM/Green Computers 57% 65% 26.3 5.5
DSM/Green Industrial Motors 30% 16% 39.5 8.3
DSM/Green Buildings (HVAC) 53% 17% 41.9 8.8
“Golden CarrotTM” Refrigerators 57% 3% 3.0 0.6
Residential Clothes Washers 96% 3% 1.3 0.3
Residential Clothes Dryers 65% 3% 1.2 0.3
Low-flow Showerheads 58% 11% 10.2 3.4
Solar Thermal Water Heaters 70% 2% '- 3% 48 1.4
Advanced Heat Pumps 20% n/a 18 2.5
Appliance Standards n/a n/a 22.2 4.7

1 Homes with gas heaters
2 Homes with electric heaters

Gr, & fort i

Summer 1995: Summer 1995: Summer 1995: Fall 1995: Fall 1995:

Mass market debut of Energy Star-bearing low-flow Five additional Appalachian Launch Energy Star Green Commercial Cooking -
“Golden CarrotTM” central showerheads approach 5% mines recovering methane program for small consumer 15 national restaurant chains
air conditioners penetration (total 16) appliances commit


Flagship Program: Methane Recovery at Coal Mines

Methane, a significant greenhouse gas, can be recovered
from coal mines and used for energy instead of being wasted
and released into the atmosphere. A variety of proven technolo-
gies are available to recover and use this waste gas, but prospects
are hampered by legal and regulatory barriers. Some of the
principal barriers include legal questions about who owns the
gas released by coal mining, the unwillingness of utilities and
pipelines to buy the electricity or gas produced by these facili-
ties, and the existence of regulatory frameworks that discourage
the use of the recovered gas. These barriers can be addressed
through legislative actions at the state or Federal level, incentive
programs, and outreach to coal mines, operators, utilities,
pipeline companies, states, and municipalities.

EPA has been working with the U.S. coal industry to identify
the barriers to methane recovery and assist in their removal.
The key focus of current activities is the Appalachian region,
which has the largest potential for methane recovery and could
most benefit from actions to address ownership issues and.

Winter 1994:

Winter 1994:

Energy Star logo debut on.
residential cooking
appliances

Energy Star Room Air
Conditioner Program
launched

ig

Winter 1994:

Green Buildings - Water and
Space Heating launched

“These voluntary programs exemplify how we
can achieve environmental protection,
economic growth, and energy security. As such,
they represent a new environmentalism that
is broader, cleaner, and even profitable.”

William G. Rosenberg
EPA Assistant Administrator for Air and Radiation

remove other hurdles. EPA has efforts underway to ensure that
the full benefits of methane recovery at coal mines—in terms of
environmental protection, employment, and revenues—are rec-
ognized by coal mine operators, as well as by states and other
Federal agencies.

EPA’s activities to expand the recovery of methane from
coal mines also have a major international component. U.S.
companies lead the world in the development of technologies
to recover and use methane from coal seams. Thus, there are

L/

Winter 1994:

Spring 1994:

Solar thermal] water heater
group-buy

80% of potential for reducing
methane from landfills
achieved


Future Corporate Purchasing Programs

Following the flagship Green Lights Program, EPA is plan-

Lighting Product Information Program; and networking
through lighting manufacturers, lighting management compa-
nies, and utilities. EPA also provides opportunities for public

ning the introduction of similar programs, targeting the fol-

£ ° my recognition, including public-service advertisements, news arti-
lowing technical opportunities:

cles, marketing materials, broadcast specials, and videotapes.
Industrial Motors

Buildings Technologies 2. PRODUCT IDENTIFICATION STRATEGIES
Commercial Cooking

B r Refriger: 5 .

Industrial Elsetrolytics Flagship Program: Energy Star Computers

As technologies evolve and market conditions change, EPA will modify The EPA Energy Star Computer program is helping to cre-

and expand this list. ate a market for energy-efficient desktop computers, by provid-

ing a clear market incentive for manufacturers to improve the

EPA helps to get the Green Lights job done with technical

support from start to finish, including: state-of-the-art software “EPA should be congratulated for its

to assist in upgrade decision-making; information on financing creative and inspired solution. »

energy-efficient lighting through a large national data base; Lnenpg ho
“consumer reports” of lighting products through the National InfoWorld

December 1992: December 1992: December 1992:

EPA Residential Heating and
Cooling Report released

November 1992: November 1992:

Initiate Animal Waste
Demonstration Project

Mobile Methane Monitor Kick-off Federal Green Lights
transferred to Russia Program

Launch voluntary program
on methane emission reduc-
tions from natural gas systems


5) Promote sensible utility regulation and legal frameworks to
TM@ cncourage cost-effective investments in energy con-
servation and methane-recovery programs. Too
S often, regulatory barriers prevent potential efficiency
investments and increase capital requirements.
Ensuring that companies and consumers can indeed profit from
wise use of resources—by improving energy efficiency or captur-
ing and using methane for energy—leads to a more productive
and less polluting economy.

“Innovative green programs such as Green Laghis,
Energy Star Computers, and the ‘Golden CarrotTM’
Refrigerator Program are critical to achieving national
goals for reducing greenhouse gas emassions.
Economically sound programs like these are absolutely
necessary for achieving the environmental goals
of the 1990's.”

Rafe Pomerance, Senior Associate
World Resources Institute

6) Create Environmental Best Practices agreements to integrate
environmental considerations into the design and
planning of products and services. Placing environ-
mental concerns in a primary role can lead to well-

designed products, cost-effective manufacturing processes,

and a wiser use of scarce natural resources (for example, cap-
turing leaking methane from a variety of sources and using it
for energy).

7) Expand international markets for resource-efficient U.S.

technologies. EPA, the Department of Energy
>. (DOE) and the Department of Commerce are all
working to promote resource- and energy-efficient U.S. tech-
nologies worldwide to create additional business opportunities
for U.S. industry, while helping protect the global environment.

EPA’s voluntary greenhouse programs often create such oppor-

tunities, many of which are described herein.

iS

September 1992:

EPA manual for chiller refrig-
erant containment, conserva-
tion, and conversion for
developing countries

October 1992:

EPA/DOE Memorandum of
Understanding (MOU)
finalized

October 1992:

Green Buildings—Variable
Speed Drives (VSDs) (air han-
dlers) corporate pilot pro-
gram launched

aA c

October 1992:

Energy Star Printers MOU
released

October 1992:

EPA promulgates incentive
regulations for energy
efficiency

od


KEY ELEMENTS OF EPA’S VOLUNTARY GREEN PROGRAMS

1) Encourage corporate-wide purchasing frameworks so that energy
efficiency and full life cycle cost considerations

are incorporated up front. This helps to over-

come internal organizational barriers (for exam-
ple, departments responsible for purchasing equipment would
consider energy costs in their decisions—even when their S
department does not pay the electricity bills).

‘See

their less energy-efficient alternatives.

“It takes not much imagination to see that environmental
concern is not just a fad, but a serious trend. It will
Shape the future of our business, and to learn to
understand it and shape it is really in our interest.”

Stephan Schmidheiny
Business Council for Sustainable Development

August 1992: September 1992: September 1992:

Green Lights: over 600
participants

NBC program on Green
Lights airs

EPA develops initiative with

CEC refrigerators

India for super-efficient, non-

a

September 1992:

EPA/Chinese development
of non-CFC Lorenz Cycle
refrigerators

2) Identify energy-efficient products so that consumers can make
educated purchasing decisions. Unfortunately, the
nang lack of good information makes it difficult to
"choose the most cost-effective products.

3) Promote mass purchases of energy-efficient technologies in order

: to improve economies of scale and reduce prices.

‘. Once organizations begin to purchase efficient tech-
: nologies, prices for these products often fall below

4) Encourage industry to commercialize more resource-efficient
technologies by demonstrating that these products
will sell. Clear “market-pull” signals to manufacturers
can help get products off the drawing board and onto
store shelves.

September 1992:

New super compressor
technology prototype for
home refrigerators


many opportunities for U.S. companies to export technologies
and develop international joint venture projects. EPA is facilitat-
ing such projects through the preparation of resource assess-
ments and investment opportunity analysis, the creation of
international technology transfer centers, and the organization
of seminars, workshops, and conferences on coalbed methane
that showcase the achievements of U.S. companies. EPA plans to
continue these efforts in several countries—including the
People’s Republic of China, Russia, Ukraine, Poland, and the
Czech and Slovak Federal Republic. As a result, U.S. coal and
gas companies will have additional business opportunities in
coalbed methane and methane emissions from the world’s coal
mines will be reduced.

Future Programs for Regulatory and

Following the flagship Utility Regulatory Reform and Coalbed
Methane programs, EPA is planning the introduction of similar
programs, targeting the following opportunities:

Landfill Methane Recovery
Tire Inflation

‘As technologies evolve and market conditions change, EPA will modify and
expand this list.

6. ENVIRONMENTAL BEST PRACTICES

STRATEGIES
Flagship Program: Green Nylon Manufacturing

The United States produces about one-third of the world’s
nylon in a manufacturing process that releases the greenhouse gas
nitrous oxide (NO).

Nitrous oxide emissions can be reduced during the manu-
facturing process through the addition of a reductive furnace to
adipic acid plants, the factories used in the production of nylon.
This technology, which recycles nitrous oxide and saves energy
and raw materials, is being developed now and is expected to be
fully commercialized by mid-decade.

EPA is working with major U.S. nylon manufacturers to
expand the use of these reductive furnaces. By incorporating
environmental concerns into design and manufacturing process-
es, EPA and nylon manufacturers are leading the way toward a
more environmentally sound—and more competitive—economy.

(

Spring 1994: Spring 1994: Summer 1994:
Energy Star logo on most per- Green Commercial Cooking

sonal computers and printers launched Lights

sold

42 State Partners in Green

@ aa

Summer 1994: Summer 1994:

CEE/EC Summit on “Golden Launch Energy Star program
CarrotTM” opportunities for for large consumer
Europe appliances

17


ing managers nationwide a mandate to pursue the optimal GREEN Licuts Top. AY & ToMORROW

lighting designs. ; ; Estimates include the Green Lights Program as well as other promising
By signing a partnership agreement with EPA, Green Lights DOE and utility programs to promote energy-efficient lighting.
participants commit to survey and upgrade 90 percent of all Green Lights Today: 1992 Green Lights Tom 2000
domestic facilities with the most energy-efficient lighting systems 2.8 billion 24-60 billion
that are profitable, within 5 years of signing the agreement. square feet committed square feet committed
As of September 30, 1992, Green Lights participants num- Expected From These Expected From These
ber 651, including 296 corporate Partners, 24 state and local Commitments— Commitments—
government Partners, 42 utilities, 195 lighting manufacturers, 12.4 BkWh/yr Energy Savings 104 - 226 BkWh/yr Energy Savings
55 light t ies, and 40 End s. These
igh ing managemen companies an a ndorsers. 2.3 MMT Avoided 99-55 MMT Avoided
organizations have committed over 2.8 billion square feet of Carbon Emissions Carbon Emissions
facility space to the program, over 3 percent of the national
total—far exceeding the leasable office space in the metropoli- 67,500 Metric Tons 1.3 MMT
. Avoided SO, Emissions* Avoided SO, Emissions*
tan areas of New York City, Los Angeles, Chicago, San .
Francisco, Washington DG, Philadelphia, and Dallas. 28,700 Metric Tons 600,000 Metric Tons
Avoided NO, Emissions Avoided NOx Emissions
$870 Million Reduced $7 - 15.8 Billion Reduced
Electricity Bills** Electricity Bills**

Source: EPA and U.S. Views on Global Climate change calculated using the follow-
ing emissions factors: 1992 Carbon = .186 MMT/BkWh; 2000 Carbon = .243
MMT/BkWh; SO, = 5.8g/kWh; NOx = 2.5g/kWh.

* Asa result of the Clean Air Act, these reductions may lead to SO, allowance cred-
its, worth an estimated $300-1000/ton, rather than actual emissions reductions.

** At7.0 cents/kKWh.

Br \ Fn G

November 1992: November 1992: November 1992: November 1992: November 1992:

National Association Issue final rule reducing land- Green Lights Partners adver- Agreement for Energy Star Launch outreach program on
of Regulatory Utility fill methane emissions tising co-op places ads in Fax Boards methane energy recovery
Commissioners endorse- major business magazines from landfills to industry/
ment of EPA Energy Star states/municipalities/utilities

Computers program


ACTIONS TO CURB CARBON DIOXIDE EMISSIONS—SUBTOTALS

ACTIONS TO CURB METHANE AND

NITROUS OXIDE EMISSIONS

Electric Year 2000
Energy Carbon Reduction
Savings (BkWh) (MMT)! Year 2000
Carbon Equivalent
Gross Additional Carbon Actions 306-429 75-108 Reductions (MMT C)!
Less:

Meth:
National Energy ethane

@CH, GWP = 11

@CH, GWP = 22

Strategy Integrated Methane Capture/Landfills 19 39

Resource Planning -116 -24 Methane Capture/Livestock
Consumer Response to Lower Prices? _-38 8 Waste Lagoons 3 7
Additional Carbon Actions Methane Capture/Coal Mines 0-3 0-6
(Net of NES and Consumer Response) 152-275 43-76 Livestock Dietary Program 3 6

Total Methane Reduction 25-28 5258
Plus: Nitrous Oxide
Actions in President Bush's NES Proposals Green Nylon Program 8-12 812
— Efficiency Improvements and Integrated Resource Planning Total Other Gases 33-40 60-70
— Natural Gas Regulatory Reform TOON —
_ ded Use of Biofuel: ‘otal Greenhouse Gas Emissions
Paar’ Use of Biofuels Reductions (Carbon and Other) 125-170 152-200

— R&D for Renewables, Transportation, and Energy Efficiency
— Provide Framework for Additional

' Reductions are in millions of metric tons of carbon equivalent in the year 2000. These
projections are sensitive to assumptions regarding energy prices, economic growth, and

technology penetration over the next decade. Further projections will change as the

Actions (previous pages) 128 45
Total Carbon Reductions 281-402 87-121
Carbon Sinks 5-9

— “America the Beautiful” and Other Forestry Programs

Reductions are in millions of metic tons of carbon equivalent in the year 2000. These pro-
Jections are sensitive to assumptions regarding energy prices, economic growth, and technolo-
‘gy penetration over the next decade. Future projections will change as the actions list is updat-
ed, as events affecting the energy markets and the economy unfold, and as the effects of cur-
rentactions are seen.

2 This value (12% to 20% of the electricity savings) is included as an adjustment for increases
in demand for energy services that will result as the introduction of these efficient technolo-
gies lower consumer costs. The actual “rebound” effect may vary significantly from this value.

actions list is updated, as events affecting the energy markets and the economy unfold,
and as the effects of current actions are seen.

1997:

Energy-efficient heating, vent-
illation, air conditioning
(HVAC) technologies installa-
tions in 5% of nation’s space

1997:

50 million Americans cook
with improved efficiency
products

1998: 1998: 1998:

Green Motors penetrates 10%
U.S. market

Energy-efficient room air “Golden CarrotTM” heat
conditioners hit 20% pumps cut electric bills $70
of market million


Environmental Protection
Agency

rn |
The Climate i

Voluntary Prog
Greenhouse Gas

 400K92005 &

‘ction

@%& Recycied/Recyclable
t a Printed on paper that contains
at least 50% recycled fiber



Future Energy Star Product Identification
Programs

Following the flagship Energy Star Computers program, EPA is
planning the introduction of similar programs in conjunction
with the DOE appliance standards program, targeting the fol-
lowing technical opportunities:

Low-flow Showerheads

Residential Room Air Conditioning

Residential Cooking Equipment

Residential Space Conditioning and Shell Improvements
Miscellaneous Residential and Commercial End-Uses

As technologies evolve and market conditions change, EPA will modify and
expand this list.

A

Winter 1993:

Winter 1993:

Voluntary Green Programs
Advisory Sub-Committee
meets

Green Buildings - Ventilation

launched launched

B

Winter 1993:

Green Industrial Motors

3. MASS PURCHASING STRATEGIES

Flagship Program: Green Buildings—Vanable Speed Drives

EPA’s Green Buildings initiative will stimulate the market
for highly efficient heating, ventilation, air conditioning
(HVAC), and water heating technologies. The program’s first
technology target will be variable speed motor drives for ven-
tilation systems.

Every year, roughly 50,000 air handling motor drives are
purchased to move air through buildings and factories. Of
these, less than 20 percent have fans capable of operating at
variable speeds—that is, adjusting their power based on the
needs of the building occupants at any particular time or

Winter 1993:

Winter 1993:

Energy Star Low-flow
Showerhead Program
launched

Coalbed methane recovery
and use case studies


efficiency of their products and an effective mechanism for
consumers to make informed purchasing decisions.

Currently, computer systems consume 5 percent of all com-
mercial electricity—and this number could grow to 10 percent
by the year 2000. Research suggests that 30-40 percent of all
computers are left on at night and over weekends, and that
even during the day computers are active less than 20 percent
of the time. This provides a clear opportunity for dramatic
reductions in energy use, costs, and greenhouse gas emissions.

Manufacturers who sign the EPA Energy Star Computers
program agreement will introduce personal computers that
automatically “power-down” when they are not being used. This
feature was pioneered for use in portable applications, and
could cut the energy used by personal computers in half—at
no additional cost!

The EPA Energy Star logo will be used to identify machines

capable of “powering-down,” so that consumers and businesses
know that they can save money and cut air pollution when they
purchase this equipment.

The EPA Energy Star Computers program was developed
with industry leaders and launched June 17, 1992. Current partic-
ipants in Energy Star Computers make 40 percent of all personal
computers and workstations sold in the U.S., and EPA is expand-
ing the program to include other manufacturers. As of
September 1992, participating manufacturers include:

* Acer America ¢ Hyundai Electronics America
* Apple Computer ° IBM
* Compaq Computer *NCR

* Digital Equipment
* EMPaC International
* Hewlett-Packard

* Silicon Graphics
* Smith Corona

* Zenith Data Systems

at

December 1992:

December 1992: December 1992: December 1992: December 1992:

1992 EPA/Sweden discuss
incorporation of Energy Star
Computers guidelines into
Swedish strategy

“Golden CarrotTM”
Refrigerator finalists
announced

Green Lights Residential CEE Board of Trustees 1,000 Green Lights upgrades
Program announced instated underway


EPA VOLUNTARY GREEN PROGRAMS EXPLAINED

October 1992:

Green Lights has over 3 bil-
lion f? committed

1. CORPORATE PURCHASING STRATEGIES
Flagship Program: Green Lights

EPA’s Green Lights Program is changing the way that compa-
nies light their offices and factories across the United States.
Lighting accounts for over 20 percent of total U.S. electricity
consumption and was responsible for 120 million metric tons of
carbon emissions in 1990. Available technology can reduce the
electricity used for lighting 50-70 percent. These efficient tech-
nologies also provide excellent investment opportunities—in
fact, a typical lighting upgrade yields an internal rate of return of
20-30 percent—a payback of about 3-4 years.

Green Lights provides companies and governments with a
framework for seizing these efficiency opportunities. Through
Green Lights, organizations make a corporate-wide decision to
invest in energy-efficient lighting, thus giving individual build-

November 1992:

CEE executive director hired

released

November 1992:

Appalachian Coalbed
Methane Environmental and
Economic Benefits Study

GREEN LIGHTS UPGRADES SURPASS
ESTIMATES OF TECHNICAL POTENTIAL

When EPA launched Green Lights in early 1991, published
engineering calculations estimated the largest possible light-
ing electricity savings to be 25-54 percent. Many of the first
lighting upgrades completed under Green Lights exceed
these estimates of “maximum technical potential.”

2 9

Jantzén.

The Gillette Company

Santa Monica, CA Lavergne, TN Vancouver, WA
50,000 ft? 125,000 ft? 45,000 ft?

61% 54% 71%

Energy Savings Energy Savings Energy Savings
37% IRR* 72% IRR 36% IRR

*internal rate of return (IRR)
Source: Green Lights Upgrade Reports.

November 1992: November 1992:

EPA publishes Conservation
Verification Protocol
of natural gas generation
released

EPA report on the economic
and environmental benefits


IMPACT OF EPA GREEN PROGRAMS ON U.S. GREENHOUSE GAS EMISSIONS

1800
n
g
°
a7) 1700
a)
&
 —~ 1600
~ ov
EO
o
“a FX 1500
5 =
ah é 1400
g
S 1300
4
5

1200

1990 2000 2000 2000
Projected Projected Projected
Baseline with Green with Green
Programs (low) Programs (high)

Note: Green Programs benefits calculation includes additional complementary demand side management programs.
These estimates do not include the other parts of the U.S. Action Plan, ¢.g., the National Energy Strategy, Clean Air Act, Forests for the Future, and others.

DB @

Spring 1995: Spring 1995: Spring 1995: Spring 1995: Summer 1995:
Mass market debut of Green Buildings Partners Major swine producers Mass market debut of Chinese market
“Golden CarrotTM” commit 2 billion ft2 recover methane from “Golden CarrotTM” super-efficient

Refrigerators animal wastes heat pumps non-CEC refrigerator


UNITED NATIONS FRAMEWORK CONVENTION 0!

OBJECTIVE

The ultimate objective of this Convention and any related legal
instruments that the Conference of the Parties may adopt is to
achieve, in accordance with the relevant provisions of the
Convention, stabilization of greenhouse gas concentrations in
the atmosphere at a level that would prevent dangerous
anthropogenic interference with the climate system. Such a
level should be achieved within a time frame sufficient to

allow ecosystems to adapt naturally to climate change, to
ensure that food production is not threatened and to enable
economic development to proceed in a sustainable manner.

ARTICLE 4: COMMITMENTS

2.(a)Each of these Parties shall adopt national policies and
take corresponding measures on the mitigation of climate change,
by limiting its anthropogenic emissions of greenhouse gases and

protecting and enhancing its greenhouse gas sinks and reservoirs.
These policies and measures will demonstrate that developed coun-

February 1992:

Chlorofluorocarbon (CFC)-

free refrigerator with
improved energy efficiency
developed

March 1992:

EPA/Chinese non-CFC insu-
lated refrigerator prototypes
developed

April 1992:

U.S. Views on Global Climate
Change published by U.S.
State Department

CLIMATE CHANGE

June 1992:

Earth Summit in Rio: Unated
Nations Framework Convention
on Climate Change signed

tries are taking the lead in modifying longer-term trends in
anthropogenic emissions consistent with the objective of the
Convention, recognizing that the return by the end of the pre-
sent decade to earlier levels of anthropogenic emissions of car-
bon dioxide and other greenhouse gases not controlled by the
Montreal Protocol would contribute to such modification...

(b)In order to promote progress to this end, each of these
Parties shall communicate, within six months of the entry into
force of the Convention for it and periodically thereafter, and
in accordance with Article 12, detailed information on its poli-

cies and measures referred to in subparagraph (a) above, as
well as on its resulting projected anthropogenic emissions by
sources and removals by sinks of greenhouse gases not con-
trolled by the Montreal Protocol for the period referred to in
subparagraph (a), with the aim of returning individually or
jointly to their 1990 levels of these anthropogenic emissions
of carbon dioxide and other greenhouse gases...

June 1992:

Energy Star Computers kick-
off—35% of market share
participating on Ist day!


“This utility consortium deserves high praise for an initia-

live that is pro-energy efficiency, pro-environment, and pro-

economy...It will provide utilities with a low-cost conservation
option to help meet growth in electricity demand. It will
benefit industry by enhancing the market for innovative
technologies and increasing American competitiveness.”

William K. Reilly, EPA Administrator, in response to the public
announcement of the Super-Efficient Refrigerator Program

ity. On average, refrigerators consume ~1,200 kilowatt hours
per year (kWh/yr) of electricity. The best widely-available
model on the market now uses ~800 kWh/yr, and the 1993
DOE refrigerator performance standard is ~700 kWh/yr. The
“Golden CarrotTM” Super-Efficient Refrigerator Program is
focusing manufacturer research and development toward ener-
gy efficiency in a manner never before seen for refrigerators,

and will lead to the introduction of units 25-50 percent more
energy-efficient than the 1993 DOE performance standards.

Under the program, which EPA helped develop with utilities
and others, utilities have pooled almost $30 million in rebate
incentives to the refrigerator manufacturer that can produce the
superior product. The manufacturer that can build the largest
number of the most efficient, chlorofluorocarbon (CFC)-free
refrigerators the quickest and cheapest wins the contract. The
environmentally superior product will be available to consumers
at a utility-subsidized price beginning in 1994 or 1995. The
“Golden CarrotTM” Super-Efficient Refrigerator Program will ulti-
mately save consumers $240-480 million in annual electricity pay-
ments. This translates into annual electric bill savings of 10 per-
cent to 35 percent for an average household.

Utilities usually create individual, uncoordinated incentive
programs with unpredictable life spans. The “Golden CarrotTM”
coordinates and aggregates utility incentives in a long-term
strategy that allows manufacturers to plan ahead. The result
is a more rational investment strategy than before, that leads to

Spring 1993:

“Golden CarrouTM”
Refrigerator prototypes
available

Spring 1993:

Launch key state programs in
coal mine methane
recovery

Summer 1993:

Debut of Energy Star logo on
computer equipment

Summer 1993:

“Golden CarrotTM”
Refrigerator winning manu-
facturer announced

Summer 1993:

Energy Star logo available for
windows, insulation, and
other building products

13


energy saved as energy sold when savings are properly verified. This
philosophy was formally embraced in the 1990 Clean Air Act (CAA)
Amendments. The Act provides incentives for utilities to reduce
compliance costs through the use of renewable energy and energy
efficiency, where:

The state regulatory authority...has established rates and charges which

ensure that the net income of such electric utility after implementation of

Specific cost-effective energy conservation measures is at least as high as
such net income would have been if the energy conservation measures
had not been implemented.

“We need to reform the ratemaking process so that saving
energy is more profitable to utilities than selling it.”
Ron Eachus

Chairman, Oregon Public Utility Commission Chair, Energy Conservation
Committee, National Association of Regulatory Utility Commissioners

While EPA recognizes that each state will need to develop
its own very specific utility regulations, in general the Agency
encourages inclusion of three broad principles:
¢ Eliminating the incentive to sell electricity by separating (or

“decoupling”) profits from sales
* Creating an incentive to save electricity—accomplished

through programs in which utilities and their stockholders can

actually profit from successful investments in conservation
° Verifying energy efficiency measures to ensure that actual
energy savings are realized

As of July 1991, at least one dozen states have adopted com-
prehensive regulatory mechanisms to encourage conservation.
EPA will publish final rules on the CAA incentives and guidance
on verifying conservation in the fall of 1992. EPA, DOE, and
other Federal agencies are working across the U.S. to encourage

the implementation of regulations that will benefit ratepayers
and stockholders and prevent pollution. These regulatory
changes, by encouraging an increase in DSM investment in

energy efficiency, will strengthen EPA’s voluntary programs.

_
;

( a

‘ Nw

Fall 1993: Fall 1993: Fall 1993: Fall 1993:

Green Lights has over 1 bi
lion ft? of upgrades underway

Launch national certification
program for architects and
lighting consultants

“Golden CarrotTM” residential
central air conditioner
program launched

Five additional VA mines
recovering methane
(total = 11)

Winter 1994:

Mass market debut of
“Golden CarrotTM” rooftop air
conditioners


CLIMATE CHANGE IN RIO

At the United Nations Conference on Environment and
Development (UNCED) in Rio de Janeiro, Brazil, the U.S.
recently joined with 153 nations in signing the United Nations
Framework Convention on Climate Change, which calls upon each
signatory to mitigate climate change by limiting its emissions of
greenhouse gases.

The U.S. takes this commitment seriously—in fact, Senate
ratification of the climate treaty on October 7th makes the U.S.
the first industrialized nation to become a signatory. And the
EPA is already translating this commitment into concrete action
and measurable results. EPA’s greenhouse programs pair the
“green” of environmentalism with the “green” of profit to com-
bat air pollution and stimulate economic growth, through the
new environmentalism of voluntary corporate action.

EPA’s voluntary greenhouse programs consist of a series of
initiatives modeled on successful programs already underway,
such as Green Lights and the utility-sponsored “Golden
CarrotTM” Super-Efficient Refrigerator Program, which EPA
helped develop.

EPA envisions a rapid roll-out of these new programs.
In fact, in the days following Rio EPA launched its next

GREENHOUSE f ,

INITIATIVES ‘ on

TIMELINE Vi
January 1991: May 1991:

Historical Milestones Launched Green Lights

effort—Energy Star Computers—with leading manufacturers
who represent ~35 percent of the domestic market for
desktop computers.

EPA’s voluntary greenhouse programs are highlighted in U.
Views on Global Climate Change, published by the Department of

State prior to Rio. Also featured prominently in U.S. Views are: full
implementation of the National Energy Strategy, which defines a
new, more efficient energy path for the United States; the new
transportation law which will greatly improve the efficiency of
moving people and goods by autos, rapid transit, and other
means; and the world’s most stringent clean air legislation, which
will also contribute to greenhouse emissions reduction. The strate-
gy also emphasizes the role of cooperative action—technical and
financial—with developing countries and countries with
economies in transition. In Rio the U.S. challenged all countries
to develop national action plans and pledged to issue the next
publication of the U.S. national action strategy for climate change
in January 1993. This U.S. strategy will include EPA’s voluntary
programs and other efforts.

First Green Lights State
Government Partners
(California and Maryland)

f :

September 1991: January 1992:

Consortium for Energy
Efficiency (CEE) established
and incorporated

ments exceed 2 billion ft of
facility space

Green Lights Partner commit-


OFFICE OF AIR AND RADIATION

THE CLIMATE IS RIGHT FOR ACTION

‘VOLUNTARY PROGRAMS TO REDUCE GREENHOUSE GS EMISSIONS

As part of its ongoing effort to prevent air pollution, the United States Environmental

Protection Agency is expanding its voluntary programs. These programs bring significant

benefits in reduction of overall air pollution—and particularly in controlling greenhouse

gas emissions. This plan describes the voluntary air pollution prevention programs already

underway and provides a blueprint for future action.

In reviewing this blueprint for action, it is important to remember four key items:

1. Air Pollution Prevention: EPA’s programs described here reduce emissions of green-
house gases such as carbon dioxide (CO,) and methane (CH,), and they also signifi-
cantly reduce other types of air pollution, including sulfur dioxide (SO,)—a primary

component of acid rain, and nitrogen oxides (NO,)—a contributor to both acid rain

and smog. .

2. Sound Economics: EPA’s voluntary greenhouse programs make sense independent of
environmental concerns. The actions described here are good ideas on economic
grounds alone. Energy efficiency is indeed “no regrets.”

3. Multiple Efforts: The voluntary efforts described here are but one component of the
Federal government's activity in reducing the risk of climate change. The Department
of Energy, Department of Agriculture, and other U.S. agencies have programs under-
way in this important effort.

4, Public/Private Partnerships: Most importantly, the success of EPA’s voluntary programs
depends upon widespread participation by U.S. companies and citizens. Join EPA in
these programs to prevent pollution—The Climate Is Right!

“These programs are the cornerstone to limiting greenhouse gas emissions—pairing
environmental protection and economic growth.”

Wilham K. Reilly, EPA Administrator



any particular weather circumstance. Most fans either oper-

THE EXPLODING MARKET FOR ENERGY

ate continuously at one speed regardless of building needs

EFFICIENCY or use less efficient mechanical means to control air flow.
Furthermore, fans are usually oversized in order to meet
Energy efficiency is BIG business. Sales for efficient products demands under the most extreme conditions (i.e. the

targeted by these four flagship greenhouse programs alone are
expected to total $53 billion by the end of the decade—compa-
rable to the entire domestic paper producing industry.

Sales of Efficient Products ($ million)

hottest hour of the hottest day), with an additional margin
of safety.

Variable speed drives (VSDs) have been demonstrated in
the HVAC marketplace for over 10 years and are capable of

logs ee 19a S00 reducing electricity consumed for air handling by 40 percent
Lighting! * 340 2,000 10,000 or more. Why is VSD market share so small? According to
Personal Gomputers 3,400 25,000 37,000 manufacturers, the answer is simple: first cost. Even though
the payback is only 1-3 years, most consumers have been
Mowr Drees unwilling to make the initially higher investment for the more
for Ventilation * 50 115 400 efficient—and money saving—products.
Refrigerators? * * 4,200 5,200

* Negligible

1 Includes only compact fluorescents, T-8 lamps, and electronic ballasts.

2 Efficient refrigerators are defined to be < 700 kWh/yr, the level of the
1993 DOE standard.

Source: EPA estimates derived from Electric Power Research Institute,
International Data Corporation, manufacturers, and Bureau of the Census data.

Lo

Winter 1993: Winter 1993: Winter 1993: Winter 1993: Winter 1993:

Identify Russian natural gas Clean Air Act (CAA) “Golden CarrotTMY” Heat Green Lease MOU released General Services

pilot projects Amendment Utility Energy Pump launched Administration procurement
Savings Evaluation Project guidelines for Energy Star
begins Computer products

i


more efficient products at a lower price than would otherwise
be the case. Ultimately this translates into healthier corporate
bottom lines, lower consumer costs, and significantly reduced
carbon dioxide emissions and other air pollution from electric-

ity generation.

Future cams to Encourt
Commerciatization of Resource Efficient
Technologies

The Consortium for Energy Efficiency (CEE) has been estab-
lished by utilities, EPA, and several environmental groups to
roll out future “Golden CarrotTM” programs for other promis-
ing technologies. EPA and utility members are advising CEE
staff in new program areas, including:

- Advanced Heat Pumps

- Residential Central Air Conditioning
Clothes Washers
Clothes Dryers

As technologies evolve and market conditions change, EPA and CEE will
modify and expand this list.

5. REGULATORY AND LEGAL

SUPPORT STRATEGIES
Flagship Program: Utility Reform

For too long, utility regulation has encouraged investments in
power plants and discouraged investment in efficiency. In fact,
utilities and their stockholders have lost money when they con-
serve electricity. At the same time, ratepayers have been con-
cerned about whether real savings are actually occurring. The
result has been an inefficient mix of resources, inflated costs, and
unwarranted air pollution.

On the other hand, where utility regulations allow it, utilities
often find that it is more cost-effective to invest in energy efficien-
cy than supply. This investment in energy efficiency—or demand-
side management (DSM)—complements EPA’s voluntary pro-
grams and other efforts to increase energy efficiency.

A movement is underway nationwide, supported in the National
Energy Strategy (NES), to level the playing field and encourage eco-
nomically justifiable investments in energy efficiency. The basic
premise is that utilities should be able to make as much money on

Lf

Summer 1993:

Conservation and Renewables
Incentive Allowance Program
begins

Summer 1993:

Washer/Dryer “Golden
CarrotTMTM” Jaunched

Summer 1993:

EPA/European Community
(EC) meeting to discuss
Energy Star Computers-—
Europe

Summer 1993:

Green Buildings - Cooling
launched

Fall 1993:

HCFC-free energy-efficient
air conditioner prototype
developed