FIGURE 4: ANNUAL ENERGY SAVINGS

In 1998, EPA's climate technology programs saved enough energy to light 35 million homes for the entire year.

EPA's Climate Programs have saved 70 billion kilowatt hours of electricity since 1995.

As shown in Figure 4, EPA's programs are sizably reducing our nation's demand for energy. In 1998
alone, EPA's programs were responsible for reducing energy consumption by more than 32 billion
kWhs, enough energy to light 35 million homes for the entire year. Programs that reduce electricity
generation, thereby decreasing greenhouse gas emissions and emissions of other harmful
pollutants, are exceeding their goals. In 1998, the goal was exceeded by 3 billion kilowatt hours
(kWhs).

EPA is also on target for reducing the energy bills of families, schools, businesses, and other
organizations, as shown in Figure 5. In 1998, consumers, businesses and organizations saved $2.9
billion dollars on utility bills. Energy bill savings do not show EPA's programs to be ahead of target
to the same degree as are other performance measures. This is because some of EPA's programs
are reducing emissions of greenhouses gases other than carbon dioxide (i.e. methane, PFCs, etc.).
Reductions in emissions of these gases do not have associated energy bill savings, for the most
part.

The final performance measure is number of partners, as shown in Figure 6. Already, EPA has formed partnerships with more than 7,000 schools, state and local governments, companies (large and small), hospitals and other organizations. Through these partnerships EPA is meeting its goals to reduce greenhouse gas emissions. While in 1997 and in 1998 EPA fell just short of meeting its partnership goals, EPA has demonstrated that through effective implementation it has been possible to meet and exceed the other goals.

EPA's partnerships with companies, organizations, manufacturers and industries have resulted in a strong record of success across the country. For example:

• Manufacturers of office equipment and electronics are making more energy-efficient products available that reduce energy consumption without sacrificing product performance. For example, since 1991, when the ENERGY STAR label first appeared on office equipment, the penetration rates of the ENERGY STAR label has soared from 0 to 95% on computer monitors, 99% on printers, and 85% on computers. In 1998, EPA formed a new partnership with TV and VCR manufacturers to produce TVs and VCRs that waste less energy, reduce pollution by more than 3.5 million tons of carbon dioxide per year and save consumers up to $500 million per year on their energy bills.

⚫ Schools partnering with EPA in the ENERGY STAR Buildings and Green Lights Partnership are increasing the quality of their lighting and comfort in classrooms while seeing large reductions in energy bills. Since 1995, EPA's programs have helped schools and universities save more than $200 million - enough money to buy 4 million text books or hire 4,000 teachers.

♦ Home builders have built more than 5,000 new ENERGY STAR Homes that use 30 percent less energy, saving homeowners $400 per year and increasing the performance and comfort of the homes.

⚫ Hundreds of small businesses are lowering their overhead through implementing energy efficiency. In 1998, 1,600 small businesses were working with the Energy Star Small Business program to realize savings on their energy bills. Nearly half of Climate Wise Industrial Partners have fewer than 100 employees. All are receiving technical assistance, and many have documented improvements in both energy efficiency and increases in productivity.

• Large businesses and organizations are protecting the environment and improving worker productivity through their investments in advanced technologies. For example, in the Wisconsin headquarters building of West Bend Mutual Insurance, efficient building design has been documented to save about $125,000 per year on utility bills and has been credited with improved employee productivity on the order of $260,000 per year. Climate Wise Partner, AnheuserBusch has developed a "bio-energy" recovery system that turns solid waste into a renewable source of energy that provides 15% of the brewery's fuel supply. By the year 2000, eight facilities are expected to employ the technology and save more than $40 million annually.

• Financiers are making mortgages and loans with special terms for energy-efficient products widely available to consumers. The big names on Wall Street as well as smaller financial institutions are seeing the value of promoting energy efficiency. In 1998 five national lenders, including GE Capital, Household Finance, and Chase Manhattan, and more than seven regional lenders offered ENERGY STAR loans and mortgages to purchasers of ENERGY STAR heating and cooling equipment and homes.

⚫ Hundreds of organizations that are part of the Transportation Partners network have contributed to a host of actions that have produced quantifiable reductions in transportation greenhouse gas emissions through measures that reduce VMT. These measures include building more livable communities and involving the public in important transportation and community design issues.

⚫ State and local governments are identifying measures that save energy, reduce pollution, and facilitate sharing of information and technologies. Local governments, participating in the Cities for Climate Protection (54 in 1998), have implemented building, transportation, waste efficiency, and renewable projects resulting in the elimination of more than 3 million metric tons of carbon dioxide. State governments such as New Jersey have broken new ground through their innovative work. New Jersey established a state carbon bank program to help meet the Department of Environmental Protection's goal of reducing New Jersey's emissions 3.5 percent below 1990 levels by 2005.

Land owners and farmers are increasing carbon storage on US lands while improving soil quality, reducing soil erosion, and enhancing other environmental and conservation goals.

♦ The international community is working with EPA to adopt commitments and carry out actions that reduce greenhouse gases, expand markets for clean U.S. technologies, and establish markets for avoided emissions and sequestration.

3.0 Goals and Objectives

This section provides a summary of EPA's year 2000 goals for its CCTI programs. The section provides year 2000 goals for the key performance measures as well as goals for greenhouse gas reductions across the key economic sectors.

There are large opportunities for further pollution reductions and energy bill savings from energy efficiency programs and greater use of cost-effective renewable energy. U.S. energy consumption causes more than 85 percent of the emissions of major air pollutants such as NOx, SO2 and CO2. At the same time, American families and businesses spend more than $500 billion each year on energy bills - more than we spend on education. Technologies are available today that can cut this energy use significantly with attractive rates of return on investments. Other technologies are being developed that may provide even more dramatic opportunities - such as a car that can reduce fuel use and greenhouse gas emissions by 2/3 without sacrificing safety and performance.

In 2000, EPA efforts will:

⚫ reduce GHG emissions by 58 MMTCE (213 million metric tons of carbon dioxide - equivalent to eliminating the GHG emissions from 15% of the cars, sports utility vehicles, and light trucks on the road) across key sectors of the economy as shown in Table 1;

⚫ reduce other forms of pollution, including air pollutants such as NOx, particulate matter and mercury from energy efficiency and reduce water pollution (from better fertilizer management). NOx emissions will be reduced by more than 152,000 tons in 2000;

⚫ reduce U.S. energy consumption by more than 59 billion kilowatt hours ir. 2000;

⚫ provide $8 billion in energy bill savings to consumers and businesses;

⚫ develop a new generation of efficient and low polluting cars and trucks;

⚫ build partnerships to vastly increase the penetration of energy efficient technologies throughout

all sectors of the economy.