Jonathan Koomey, Ph.D. Lawrence Berkeley National Laboratory

1. Designing Voluntary Pollution Prevention Programs in the Real World: Some Stories from the Front Lines Jonathan Koomey, Ph.D. Lawrence Berkeley National Laboratory JGKoomey@lbl.gov, 510/486-5974, http://enduse.lbl.gov/ Talk is on the web at http://enduse.lbl.gov/shareddata/energystartalk.ppt Presented at the Donald Bren School of Environmental Science and Management Colloquium UCSB, Santa Barbara, CA May 17, 1999

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

3. Clothes Washers Dishwashers Refrigerators Room Air Conditioners TVs, VCRs, Audio Equipment Home Heating and Cooling Products New Homes Windows Residential Lighting Fixtures Roof Products Insulation Exit Signs Office Equipment Transformers Roof Products Insulation Commercial Buildings ENERGY STAR-labeled products Residential Commercial See http://www.energystar.gov/ for more details

4. Key considerations for designing successful voluntary programs • Build brand recognition and help make profits for program partners • Measurable savings (need test procedures) • Significant savings based on off-the-shelf technologies (need data for negotiations)

5. Standby power for TVs Source: Karen Rosen, LBNL, May 1999, KBRosen@lbl.gov Share of units measured

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

7. More key considerations • Government purchasing/procurement can be important • The international context (EU, Japan, Australia, New Zealand, Canada, Brazil, etc) • Need data for implementation (see map)

8. GIS Analysis

9. Designing the Multifunction Device (MFD) Office Equipment Program • Process • create a draft • respond to written comments, revise and go back to first step eight (!) times • meet with key manufacturers • have a big meeting to finalize • revise • find out that some manufacturers still don’t agree,though they said they did in the meeting

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

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

12. If energy efficiency is such a good idea, why don’t people do it anyway? Engineering-economic analysis plus transaction costs Results with policy or program that reduces transaction costs Engineering-economic analysis Source: Adapted from Katrin Ostertag Transaction costs of raising energy efficiency. Working paper, May 1999. Presented at the IEA International Workshop on Technologies to Reduce Greenhouse Gas Emissions: Engineering-Economic Analyses of Conserved Energy and Carbon. Washington, DC. 5-7 May 1999. This example assumes that the energy efficient technology delivers the exact same service as the standard technology.

13. Industrial Sector Voluntary Agreements by Companies

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