ENERGY STAR Past, Present, and Future

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ENERGY STAR -- Past, Present, and Future

• Maria Vargas
• U.S. EPA

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Today

• Success to date and what it means for tomorrow
• Program foundation
• New report on ENERGY STAR brand by Interbrand
• Outreach New PSA campaign, other efforts
• Products update new specs, new initiatives,
  Report to Congress on Servers
• Residential update new and existing homes
• Commercial / Industrial update
• Climate Protection Technology Initiative

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Environmental Success Requires Finding/Building
Upon Intersection of Interests
Cost-effective No Sacrifice in Performance
Consumer is Key
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ENERGY STAR

• Protects the environment through superior energy
  efficiency
• No tradeoffs in performance or quality
• Cost effective (2nd price tag)
• ENERGY STAR is a government backed symbol
  providing valuable, unbiased information source
  of authority
• Binary (Y/N)
• Power of the individual to make a difference

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ENERGY STAR Strategies

• Residential Commercial / Industrial
• Labeled Products Corporate energy management
• -- 50 products / 1700 manufacturers --
  benchmarking, goals, upgrades
• -- 10-60 more efficient (management, systems
  more than widgets)
• Labeled New Homes -- whole building
  labeling for excellence
• -- 30 more efficient --technical
  assistance
• Home Improvement
• Services Labeled Products
• -- beyond products -- for plug loads --
  not system components
• -- ducts / home sealing Industrial
• -- whole home retrofits Small
  business initiative

International partnerships Canada, EU, Japan,
etc
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A Successful Program Accomplishments - 2006

• In 2006, Americans with the help of ENERGY STAR
• Prevented 37 million metric tons of GHG
  emissions equivalent to 25 million vehicles
• Saved 14 billion on energy bills
• Lowered their energy use by 170 billion kilowatt
  hours almost 5 of US electricity sales
• Delivered 1/3 of total US GHG emissions reduction
  from EPAs Climate Change Programs

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Successful Program

• Public awareness of ENERGY STAR over 65
• Engaged 9,000 organizations in manufacturing,
  delivery, adoption of energy efficiency
• Helped consumers purchase more than 2 billion
  qualified products from 1,700 manufacturers
  across 50 product categories
• Over 725,000 new homes are ENERGY STAR almost
  10 of new homes starts across the country are
  ENERGY STAR
• Tens of thousands buildings benchmarked,
  thousands of buildings improved
• ENVIRONMENTAL RESULTS POSITIONED TO DOUBLE OVER
  NEXT 10 YEARS

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Large Environmental Benefit
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A Brand

• -- Is a complex relationship of
• functional benefits and emotional connections
• -- Exists in the mind of consumer
• -- Everything you do defines your brand
• -- products -- people -- communications
• -- services and support -- website -- RD
• the list goes on

The Brand
Products
The Customers
The Organization
Employees
Communications
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Loyalty is the goal
Performance
Communications
DifferentialValue
Satisfaction
Relevance
Awareness
Loyalty
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ENERGY STAR has evolved

• Mark now works harder in the market
• Established brand guidelines brand book
• Consistent personality and communications help in
  maximizing efforts building on previous
  communications
• Co-branding platform
• Dialed up emotional content with rational equity
  of the brand speak to head AND heart

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Protecting Integrity of ENERGY STAR Label

• Self-certification program works due to
  competitive market place and active consumer
  groups (Consumer Reports)
• EPA monitors use/protects integrity of brand
• Information on products and appropriate logo use
  required as condition of partnership
• Routine checking of manufacturer submitted
  information
• Selective product testing
• Pulling from retail shelves twice annually
• Customer calls
• Manufacturer information on competitors
• Designed supplemental testing program for problem
  areas -- lighting products
• Track all advertisements (reports monthly)
• All printed press coverage daily, monthly
• Web report qtly
• Integrity Report - annually
• Insure correct use of mark all violations dealt
  with coordinate with EPAs Office of General
  Counsel
• Complementary reinforcing package

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New Report on ENERGY STAR Brand

• Building a Powerful and Enduring Brand the
  Past, Present and Future of the ENERGY STAR
  Brand
• ENERGY STAR as a strong brand in the marketplace
• Report examines the history, evolution and
  current status of ENERGY STAR brand
• Benchmarks ENERGY STAR against other brands,
  lessons learned
• Outlines challenges for the future
• Prepared by Interbrand,
• Leading international branding consultancy
  specializing in brand services and activities
  such as strategy, visual and verbal identity, and
  valuation.
• Working with the ENERGY STAR program since 2001
• Now available

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Challenges identified by Interbrand

• Interbrand has worked with thousands of brands
  applied lessons learned to ENERGY STAR
• Brand tenants cannot be compromised
• Proven technology
• Carbon reductions
• Benefits reasonably immediate and measureable
• Protect the brand
• Moving forward
• Continue to carefully manage the brand
• Be consistent protect brand definition
• Results must be tangible
• Remain customer driven
• Innovate to maintain momentum

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Specification Setting Process
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New/Revised Specs Effective in 2007

• Office Equipment
• Imaging equipment
• Computers
• Consumer Electronics
• Digital TV Adapters
• Lighting
• Decorative Light Strings
• Residential Light Fixtures
• Commercial Food Service
• Commercial Dishwashers
• Commercial Icemakers (1/08)
• Other
• Roof Products
• Traffic signals/Transformers)
• Vending machines

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Spec Revisions Complete in 08

• TVs
• Finalize Dec 07 effective fall 08
• Set-top Boxes
• Finalize late 07/early 08 effective fall 09
• Imaging Equipment
• Setting Tier 2 finalize spring 08 effective
  April 09
• Computers
• Establishing benchmark/Tier 2 finalize fall 08
  effective July 09. Adding Game Consoles to spec.
• Monitors
• Launch fall 07 finalize early 08 effective fall
  08
• External Power Supplies/Battery Chargers
• Finalize early 08 effective fall 08

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Spec Revisions Complete in 08

• Ventilation fans
• Begin late 07 add test procedure
• Programmable Thermostats
• Revised proposal Sep 07 consumer ed. spring/fall
  08
• Furnaces
• Finalize early 08 effective Oct 08
• Commercial Refrigerator/Freezers
• Revising performance level and adding laboratory
  products
• Finalize May 08 effective Jan 09
• Commercial Fryers
• Incorporate additional size categories

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New Specifications in 08

• Commercial Ovens and Griddles
• Add to growing family of commercial kitchen
  products
• Draft early 2008 final fall 2008
• Servers/Data Storage and Large Scale Routers
• Finalize Tier I in mid 2008

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Other Possibilities

• Revisions
• Boilers
• Ventilation fans
• Ceiling fan light kits
• Water coolers
• Audio/DVD

• New Specs
• Non-ducted AC (aka mini-splits)
• Heat recovery ventilators
• Microwaves
• Hand dryers
• Comm Clothes Washers
• Soft Serve Machines
• Autoclaves/Sterilizers

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Computer Datacenters and Servers

• July report in response to Public law
  109-431directing EPA, through the ENERGY STAR,
  to look at opportunities for datacenters
• Key findings
• Servers and datacenters account for 59 billion
  kWh in 2006 (1.5) of total US electricity
  consumption
• This has doubled since 2000 expected to almost
  double again in the next 5 years
• Energy efficiency can slow expected growth in
  electricity use by 50 with best practices
• Report recommendations
• Develop ENERGY STAR whole building performance
  rating for data centers
• Develop ENERGY STAR metrics and labeling of IT
  and infrastructure equipment
• Federal govt should adopt BMPs for data center
  energy management
• Utilities should develop and coordinate energy
  efficiency programs.

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Result Product Sales Growing
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Building Demand Outreach critical to
environmental results

• Specifications are a foundation
• People must ACT to achieve environmental benefit
• EPA devotes substantial resources to outreach
  with strong results
• Annual outreach strategy
• Media reach of 1 billion plus per year
• 6 million web visits per year

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Why talk about the environment?

• Americans are concerned about the environment
• 87 strongly agree or agree with the statement I
  am very concerned about the environment.
• 93 strongly agree that Saving energy helps the
  environment
• 74 of consumers believe that a product that is
  better for the environment is a somewhat to a
  very important consideration when purchasing an
  appliance or an energy using product
• Protecting the environment creates a long term
  connection for action helps to motivate change
• Emotional

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The time is right energy efficiency and global
warming

• 82 of Americans say they believe in global
  warming, and there is widespread belief that
  human behavior is contributing to the problem.
• Fox News/Opinion Dynamics Poll, Spring 2007
• Majority believe immediate action needed
• NY Times/CBS Poll, April 2007
• 86 would choose one home over another based on
  its energy efficiency.
• Shelton Group/Energy Pulse 2006)
• 63 say energy prices have increased enough to
  make them change their consumption habits.
• Shelton Group/Energy Pulse 2006

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ENERGY STAR PSA Campaign

• Current campaign components include
• 30 TV PSA (currently in distribution)
• 5 print PSAs (in development)
• 2 CI, 2 Residential, 1 Special
• 2 minute video

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Print campaign

• Campaign designed to work across ENERGY STAR
  offerings
• Residential
• Commercial
• ENERGY STAR Change a Light
• Available to co-op by utilities and EEPs

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2007 Campaigns ENERGY STAR Change a Light

• ENERGY STAR Change a Light Day, Oct. 3, 2007
• Turnkey materials available to promote the day
  and ENERGY STAR qualified lighting
• 20 day bus tour 10 stops
• Building on success of 2006
• More than 500,000 pledges to date
• 650 participating organizations
• State leadership activity in nearly every state
• 30 proclamations of ENERGY STAR Change a Light
  Day
• More than 140 events on ES CAL Day

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2007 Campaigns ENERGY STAR Change a Light
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ENERGY STAR _at_ home

• Focal point for extending ENERGY STARs market
  position as a trusted source on energy savings
  information
• In addition to highlighting labeled products, it
  includes broad range of tips (e.g. wash full
  loads)
• Systematic selection and documentation process
  behind advice

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ENERGY STAR New Homes

• Close to 200,000 homes were constructed as ENERGY
  STAR in 2006 12 market share
• 12 states have more than 20 market penetration
• More than 3,500 builder partners
• New specification in place in 2007 -- first
  quarter 2007 shows about 11 market penetration.
• High growth markets Salt Lake City, North
  Carolina, Denver, Atlanta, and Pacific Northwest
  

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ENERGY STAR New Homes

• 2007/08 Activities
• Expand Multi-Family High Rise Pilot nationally
• 20 percent better than building built to ASHRAE
  90.1
• Annual stakeholder meeting with utilities to
  receive input on program
• Expand concept of carbon neutral home as a road
  map for ENERGY STAR new homes
• Expand efforts in affordable housing through
  prescriptive specifications
• Launch Designed to be ENERGY STAR for
  architects

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ENERGY STAR and Existing Homes

• Over 30,000 retrofits to date under Home
  Performance with ENERGY STAR -- Show average
  savings of 20 per household
• Long Island Power Authority, New Jersey, Maine
  and Excel Energy in Minnesota (pilot program)
  joined in 2006.
• 5 more sponsors and 20,000 more retrofits
  expected in 2007
• EPA, DOE and HUD continue to support the Building
  Performance Institute (BPI). More than 1,200
  certified contractors in 31 states and growing

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National HPwES Activity July 2007
WI Focus on Energy
ME Energy Office
OR - Energy Trust of Oregon
VT Efficiency Vermont
ID Energy Division
NY - NYSERDA
WY Energy Office
MA NGRID NStar
Peoria TRICON
NY - LIPA
NJ - NJBPU
CO - E-Star Colorado Ft Collins Utilities
City of Bolder Colorado Springs
City of Anaheim So. California Edison
Existing Programs Launching Programs Considering
Programs
Atlanta Southface
Austin Energy
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Other Activities Existing Homes

• ENERGY STAR HVAC Quality Installation Guidelines
• Completing pilots with SCE and Oncor to collect
  cost data and test verification procedures
• Propose proper HVAC installation program this
  Fall 07 with CEE and ACCA
• Launch in Spring 08
• Provide program best practices and contractor
  training
• HVAC maintenance campaign in 2008
• Web site tools
• ENERGY STAR Home Advisor
• Continue Home Energy Yardstick

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• Seal Insulate with ENERGY STAR
• New graphic for insulation manufacturers and
  retailers
• Spanish language Do-It-Yourself Guide

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• ENERGY STAR in the Commercial and Industrial
  Sector

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Commercial Sector Approach Whole Building
Performance

• Whole Building Performance
• promote integration of systems
• about energy savings -- not presence of new
  technology
• achieve twice the savings for a given investment
• Performance Measurement System
• can not manage what you can not measure
• fix missing market information
• how to measure efficiency / performance
• when is a building efficient
• provide information linked to real market
  transactions (like energy bills)
• Leadership in the market place
• overcome confusion over role of codes
• Working with utility programs
• model for green building programs

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Commercial Buildings ENERGY STAR Challenge
Growing

• ENERGY STAR Building Challenge
• Announced in 2005 with 20 states, associations,
  etc
• Improve buildings by 10 or more
• Key first step assess building efficiency using
  standardized measurement system
• Cannot manage what you can not measure
• Galvanizing many endusers, states, associations
• Building benchmarking being used as energy
  management/ investment tool
• Over 6 billion square feet of commercial space
  has been rated
• 10,000 schools
• 3,200 buildings earn ENERGY STAR
• Added water tracking in 2006
• 2,300 water meters already added

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2007 Update

• Energy Performance Ratings
• Expand ratings to new markets
• release rating for big box retail
• buildings Oct. 1
• Update existing ratings with new data
• office building rating released Oct. 1
• Capturing environmental benefits/profile of
  buildings
• Portfolio Manager incorporates emissions from
  EGRID
• California benchmarking initiative
• PGE automated utility bill transfer successful
  and expanded
• Model for national implementation

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2007 Update

• BOMA
• Building Energy Efficiency Program (BEEP) first
  year launch trained 5,000 building
  owners/managers nationwide
• Challenges members to 30 reductions measured
  using EPA rating.
• BOMA Locals launching initiatives with efficiency
  programs and cities to upgrade buildings using
  ENERGY STAR
• Portland
• Seattle
• Austin
• CoStar
• Commercial real estate listing service .
• Highlights buildings earning the ENERGY STAR
• Next step All CoStar listings to provide ENERGY
  STAR performance rating

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2007 Update (cont.)

• Local Government and the ENERGY STAR 10
  Challenge
• Cities and counties play a vital dual role in the
  Challenge
• Lead by example and improve own buildings
• Promote energy efficiency to constituents
• U.S. Conference of Mayors (USCM) and National
  Association of Counties (NACo) resolves unanimous
  support for ENERGY STAR Challenge
• Expanded materials to support ENERGY STAR
  Challenge
• Sector Fact Sheets
• Energy Facts
• Co-Brandable brochures, posters

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Energy and Water Update

• ENERGY STAR Water and Wastewater Focus
• Benchmarking tools and energy efficiency best
  practice guides completed by October 1, 2007
• Water tracking in Portfolio Manager (PM)
• Added in June 2006
• Over 1,000 PM users tracking water use
• More than 2,300 water meters
• Joint energy and water utility meeting - Fall
  2007
• New ENERGY STAR specifications for products that
  use both energy and water
• Commercial dishwashers
• Ice Makers

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Industrial Program

• Grown to include 10 industrial sectors
• Focus meetings a continuing success
• Peer exchange
• Sector-specific barriers and opportunities
• In 2006, the first manufacturing plants qualified
  for the ENERGY STAR -- 20 plants across
• auto assembly,
• cement, and
• wet corn milling plants
• In 2007, petroleum refining earned ENERGY STAR
  label
• Will add new industries each year
• fiberglass and cereal production in 2007
• Two a year

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Assisting Industry with Excellence in Energy
Management
2007 Priorities Finalize 3 EPIs for the
freezing and canning of fruits and vegetables,
flat glass, and container glass productionupdate
EPI for auto assembly, and advance 2nd EPI for
food industry for cereal production plants
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New report

• Energy Strategy for the Road Ahead, Scenario
  Thinking for Business Executives and Corporate
  Boards, issued by the Global Business Network
• Included business leaders came from abroad
  cross-segment of American industry including
  autos, chemicals, high tech, banking, consumer
  products and logistics.
• Focuses on 4 scenarios
• Need to move beyond short-term planning around
  energy and think strategically about energy.
  Reaction is the wrong way to face the future.

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CI Focus for 2008

• Broaden the ENERGY STAR Challenge
• Reach new associations
• small businesses, congregations National
  Automobile Dealership Association (NADA),
  American Bar Association (ABA)
• manufacturers and others
• Target 10-15 priority cities to serve as model
  cities to implement Challenge.
• Revise/Expand EPAs energy performance ratings
• Update existing ratings --- schools,
  supermarkets, hotels
• Address data centers
• Build the market for energy efficiency services
• Continue to engage energy service providers,
  utilities, state energy programs
• Challenge architects to design buildings that
  will earn the ENERGY STAR.
• Continue to make it easy to link carbon
  emissions/reductions with ENERGY STAR labeled
  building and rating.
• Make it easy to assess energy use on a continuous
  basis
• Leverage the 65 brand awareness level in the CI
  market, so it becomes the brand to look for at
  home and work.

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ENERGY STARGoals for the future

• Triple carbon savings by 2012 (from 2000).
• From 16 MMTCE to over 50
• Build consumer awareness of, and loyalty to, the
  brand
• Motivate consumers and build demand
• Maintain meaning/integrity of label on full suite
  of products
• Quality, cost-effective, relevance
• Enhance partnership with utilities and energy
  efficiency program sponsors
• Reduce costs of assisting partners to expand
  program
• Need to manage more products
• Need to manage more builders / new homes
• Need to manage more commercial and industrial
  partners
• Build home improvement beyond products
• Duct sealing, home sealing, whole home
  performance are big opportunities
• Transform CI approaches
• Whole building approach, many building types
• Industrial

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Maximizing the Use of the ENERGY STAR Platform

• ENERGY STAR label for products
• Broadly relevant technologies
• Meet brand principles
• Well-proven
• ENERGY STAR Save More
• Broadly available
• Well proven
• But high costs
• Advanced Technologies
• Exploring how to leverage ENERGY STAR
  infrastructure to help address market barriers

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New initiative

• Climate Protection Technology Initiative
  Conference
• New initiative to highlight emerging technologies
  that could make significant and cost-effective
  contributions to reducing greenhouse gas
  emissions.
• Paper out for public comment
• Workshop Oct 10

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Emerging Technologies

• ENERGY STAR
• mass market consumer
• cost-effective (2 to 3 year
• payback)
• proven technology
• no sacrifice in performance
• reliable savings
• Exploring New Climate Technology Initiative?
• new recognition program
• early adopters /
• environmentally conscious
• consumers
• longer payback ?
• more complex installation/
• performance issues?

Workshop October 10th and 11th
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On Track to Meet Future GHG Reduction Goals
Goals

• Priority Areas
• lighting
• HVAC
• Consumer electronics (and power supplies)
• Office equipment
• Commercial food service

Source LBNL Analysis (2007)
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• THANK YOU!

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Other Leaders

• States
• California and Ohio set mandates to reduce energy
  in their state buildings, and are using EPAs
  energy performance rating system to meet these
  mandates
• The Governor of Minnesota set a goal of labeling
  1,000 buildings as ENERGY STAR by 2010,
• More than 60 of the K-12 schools across
  Wisconsin have been benchmarked in conjunction
  with Focus on Energy,
• Many states investigating the use of automated
  benchmarking capabilities by either working with
  their utilities or using the services of a
  third-party
• States with largest increases over last year
  include Virginia, Florida, and Kentucky.
• Local Governments
• U.S. Conference of Mayors (USCM) resolves
  unanimous support for ENERGY STAR Challenge
• National Association of Counties (NACo) promoting
  ENERGY STAR Challenge
• Expanded materials to support ENERGY STAR
  Challenge