GlobalCon 2009 Michael Dunn, USEPA

EPA Energy and Climate Partnerships April 2, 2009

Perspectives on Climate Change

• Energy and Climate Change are renewed priorities for the EPA.

• Two approaches

– Regulatory efforts (ex. Greenhouse Gas Reporting Rule)

– Partnership to help you reduce carbon

• As you know energy, climate, and, economic news is swirling and rapidly changing

• On the horizon - Cap and Trade? Electricity deregulation, Fuel price volatility

• Existing "Suite" of EPA partnership programs designed to assist with the first steps of a carbon reduction program

• Emerging customized services to help you navigate EPA offerings.

• Programs - Climate Leaders, with assistance from Energy Star, Combined Heat and Power, Green Power Partners, and finally Mid-Atlantic Sustainable Partnerships

Overview

What do we know about Climate Change

Consensus & Challenges

Scientific Consensus:

Climate change is a serious and urgent issue

Human activities have a powerful role in climate change and its associated risks and impacts

Climate change results from GHGs associated with economic activities including energy, industry, transport, and land use

Challenges:

Now and later

Requires action now for future risk

Here and there

Global risk, local impact, local action, environmental justice

Us and them

Trade-offs

Climate Leaders

Climate Change Impacts

Example: Summertime Heat

Conventional Sector-based View of U.S. GHG Emissions By Source

2005 U.S. Emissions: 7,260 MMTCO2E

Conventional View• Electricity production• Automobiles and

transportation• Energy/electricity

consumption

Systems-based View of U.S. GHG Emissions By Type and Category

What's the first step to reducing emissions?

Efficiency can be a “cheap” and effective place to start…

What can the suite of EPA Tools and Resources help you accomplish?

• Assess your current condition

• Develop a plan for improvements

• Implement changes & upgrades

• Measure and track results

• Help tell the story…and recognize success

Climate Leaders

About

Partner Joins Program

EPA assists Partner in developing inventory and inventory management plan (generally within 1 year)

Partner reports annual inventory data to EPA and documents progress toward goal

Partner may participate in meetings, public outreach, press events, etc.

Partner sets corporate wide 5-10 year GHG reduction goal, domestic or global, absolute or intensity

Partner Achieves Goal

Climate Leaders

Corporate Benefits

• Over 250 Partners of all sizes in many sectors, with operations in all 50 states

• Half are Fortune 500 companies. Total annual U.S. revenue of the partnership represents 11% of U.S. GDP (2007)

• Partnerships with small businesses are growing. In 2008 Climate Leaders launched tools for low emitters.

• Largest corporate greenhouse gas goal-setting program, with over 8% of U.S. GHG emissions

• Goals pledged in program reduce annual emissions equivalent to 9 million cars

The Company We Keep

Climate Leaders

Corporate Benefits

Climate Leaders works with companies to develop a long-term comprehensive greenhouse gas management strategy

• 3 critical components to credible strategy– Complete Corporate-Wide GHG Inventory – Develop Inventory Management Plan (IMP)– Set Aggressive Corporate-Wide GHG Reduction Goal

• Annual reporting to EPA creates lasting record of accomplishments and identifies company as corporate environmental leader

Climate Leaders

Goal achiever IBM: “We have saved more than $74 million from 2002-2006 by conserving energy, demonstrating that strong environmental programs are good business.”

Wayne Balta, VP Corporate Environmental Affairs

• Preparation for regulation (for certain companies/sectors)• Credible climate management strategy• Internal support and alignment for environmental goals• Good corporate citizen – important to shareholders, customers,

employees

Corporate Benefits

Climate Leaders

• Pfizer Inc., a charter Partner in Climate Leaders, exceeded its GHG goal by 35 percent per million dollars of revenue from 2000 to 2007, achieving a 43 percent reduction.

• Pfizer also reduced its total GHG emissions, on an absolute basis, by 20 percent.

• 1,000 GHG reduction projects over the goal period, including

– boiler and chiller efficiency upgrades,

– increased cogeneration capacity,

– improved HVAC control, lighting retrofits,

– optimization of compressed air systems,

– facility consolidation efforts, and

– employee energy awareness campaigns.

• The company’s new goal is 20 percent absolute reduction in global GHG emissions from 2008 to 2012

Success Story

Energy Star for Buildings

Fuel Efficiency

MPG

Is 60 MPG high or low for an automobile?

Statement of Energy Performance

EPA Rating

Is 80 kBtu/SF/YR high or low for a building?

Rating systems for Buildings

Energy Star

Energy Benchmarking

• How does it work?• Building performance assessment

• Scale or 1-100

• Similar buildings nationwide

• Assessment takes into account• Weather

• Size

• Location

• Operating Characteristics

• 75 or higher may qualify for Energy Star Plaque

• Why do it?• Quick reality check for scoping

• Tracking tool for progress

Overview

Energy Star

• Marriott International, Inc; 3,000 properties nationwide 67 countries.

Key accomplishments include:

• Earning the ENERGY STAR at 75 U.S. properties in 2008 for a total of  275 properties, more than any other hospitality company.

• Reducing greenhouse gas emissions by 3% per available room, putting  Marriott one step closer to its goal of achieving a 6% reduction per  available room by 2010 under EPA’s Climate Leaders program.

• Savings of $1.3 million in 2008 as a result of ongoing  energy management techniques.

• Plan to reduce energy and water consumption at managed properties by 25% over the next 10 years, compared with  the year 2000.

• Meeting a long-term goal of benchmarking the energy performance of  all domestic-managed properties using EPA's Portfolio Manager. 

Success Story

Green Power

Overview

Green Power Value Proposition

• Delivers high-impact/low-cost value – More than 400 Partners using 100% green power

• Deploys quickly & scales up easily– Most Partners increase GP purchase over time

• Translates well to customers, management, employees & other stakeholders

• Captures favorable media attention– Clean technology– Domestic energy supply– New U.S. jobs

• Addresses indirect emissions• Carries strong business case with price stability

Green Power

Overview

• Organizations may join as a single facility, a group of facilities/division/operating unit or entity-wide.

• Green Power Locator– Comprehensive list of local, regional & national green power

providers, RECs brokers• Guide to Purchasing Green Power

– Step-by-step instructions, issues, details• Environmental claims calculators• Partner recognition

– National Top 25, Sector Top 10 lists– Fortune 500 Challenge

Green Power

Success Story

The Philadelphia Phillies - the first MLB team to join EPA’s Green Power Partnership.

• The club currently buys 20 million kilowatt-hours annually, enough to power 100 percent of the annual electricity use for Citizens Bank Park.

• Via renewable energy certificates (RECs) from wind and biomass resources.

• The Phillies “Red Goes Green” announcement included notable attendees such as EPA’s regional administrator, the governor of Pennsylvania, the mayor of Philadelphia

• Broadcasters explained the significance of the green hats and the REC purchase to viewers during a live TV broadcast. The media event drew attention from local, regional and national news agencies including ESPN, FOX, CNN, CBS, NBC, ABC, Sports Illustrated and many more.

• Since the event, four other major league clubs have contacted the Phillies to learn more about its REC purchase.

CHP

Combined heat and power (CHP), also known as cogeneration, is the simultaneous production of electricity and heat from a single fuel source,

CHP is not a single technology, but an integrated energy system that can be modified depending upon the needs of the energy end user.

Overview

CHP

• Outreach and Education

– Website, peer-to-peer networks, technical updates, policy models, case-studies

• Direct Project Assistance

– spark spread analyses

– concise or comprehensive Level 1 feasibility studies

– third-party review of feasibility/design studies.

– Information on state regulatory treatment and utility rates favorable to clean distributed generation projects, and state and federal biomass/biogas incentives.

• Tools and Services

– Funding Resources – current list of multiple incentives

– CHP Emissions Calculator

• Partner Recognition

Benefits of Program

CHP

• One Market Plaza Cogeneration System - (ENERGY STAR CHP Award December 11, 2008)

• One Market Plaza in San Francisco, CA is a Class-A office complex - 1.4 million square feet of commercial space.

• 30 percent of the complex's electricity meet by 1.5 MW CHP system.

• Otherwise wasted heat used to produce steam for 85 percent of heating demand.

• Operating efficiency of 65 percent and requires 24 percent less fuel than typical onsite thermal generation and purchased electricity.

Success Story

The CHP system reduces CO2 emissions by an estimated 1,440 tons per year. This reduction is equivalent planting nearly 300 acres of forest.

EPA programs are for everyone…

Climate Leaders for Low Emitters

• Growing interest by small businesses wishing to take action on climate prompted us to create simpler, non-technical tools specially designed for your needs

• Low emitters are defined as office-based organizations, suppliers to Climate Leaders Partners, and public institutions such as government agencies and universities

• Low emitters typically have total corporate-wide emissions equal to less than 10,000 metric tons of CO2-equiavalent

• Tools are divided into four steps that you can tackle or delegate at your convenience:

– Get started– Calculate GHG Emissions– Create an Inventory Management Plan– Set a Reduction Goal & Track Progress

• Technical help is provided

www.epa.gov/partners

Next Introductory Webinar for Low Emitters:1:00-2:15pm ESTMay 6, 2009Register at: http://www.epa.gov/climateleaders/events/index.html

New Pilot “Concierge Program”

piloted from Philadelphia

Mid-Atlantic SustainablePartnerships

New EPA bundled programs that will guide partners and encourage:

• Energy savings and green power use

• Recycling : Solid Waste, Building Materials, and Electronics

• Green Buildings

• Water savings, pounds of pollutants reduced, costs reduced

• Hazardous and toxic chemicals reduced

One-stop-shop for EPA programs

Thank you.

Michael DunnDunn.michael@epa.gov

215.814.2712

GlobalCon 2009 Michael Dunn, USEPA

EPA Energy and Climate Partnerships April 2, 2009

EPA Programs

EPA’s Climate and Energy State and Local Program assists state and local governments in their clean energy efforts by providing technical assistance, analytical tools, and outreach support.

Specific assistance includes:Identifying and documenting cost-effective policies and initiatives that promote renewable energy, energy efficiency, and related clean technologies.

Measuring and evaluating the environmental, economic, and public health benefits of clean energy initiatives.

Fostering peer exchange opportunities for state and local officials to share information on best practices and innovative policies.

Offering a suite of national voluntary programs that provide partners with assistance and recognition for their clean energy actions.

www.epa.gov/cleanenergy/energy-programs/state-and-local/

• City of Houston, Texas• The City of Houston’s comprehensive renewable energy plan calls for the purchase of

fixed-price green power, which will help to offset the rising cost of conventional electricity. As part of this plan, the city has bought more than 350 million kilowatt-hours of wind-derived renewable energy certificates, enough to meet nearly 27 percent of its annual electricity needs, at a cost lower than traditional electricity. Houston’s purchase ranks among the largest in the Green Power Partnership, placing the city on both EPA’s National Top 50 and Top Local Government lists.

• Houston has a goal of buying an added 40 megawatts of wind energy and hosting several solar photovoltaic projects. The city actively sends out communications to the media and public through press releases, newsletters, and website announcements to increase awareness about green power. The city of Houston also developed two websites: one helps the public learn about green power benefits, and the other compares the costs of different kinds of energy, including green power. Further, as a leader among municipal green power buyers, the City has taken part in an EPA-sponsored green power webinar to share its strategy of buying wind power with others. Houston also takes an active roll in presenting its model of success to other local governments and to industry groups.