23
I n February 2002, President Bush set a national goal to reduce the greenhouse gas (GHG) intensity 1 of the American economy by 18 percent by 2012. 2 Meeting this com- mitment will prevent the release of more than 1,833 teragrams of carbon dioxide equiv- alent (Tg CO 2 Eq.) to the atmosphere, adding to the 255 Tg CO 2 Eq. avoided in 2002. To help achieve this goal, President Bush has taken the following actions: created an interagency, cabinet-level committee to coordinate and prioritize federal re- search on global climate science and advanced energy technologies; increased the federal budget for climate change activities; and proposed tax incentives that help spur GHG reductions by spurring cleaner, renewable energy and more energy-efficient technologies. The Administration is pursuing a broad range of policy measures, financial incentives, voluntary programs, and other federal programs that can help to slow the growth in GHG emissions and reduce GHG intensity. The Administration’s approach balances near-term opportunities with long-term investments in breakthrough technologies needed for greater emission reductions in the future. These federal efforts span the major sectors of the U.S. economy encompassing generation and use of energy in the commercial, resi- dential, industrial, and transportation sectors; management of agriculture and forestry; and management of waste streams and industrial byproducts. In addition, businesses, state and local governments, and nongovernmental organizations (NGOs) are addressing global climate change in numerous ways. NATIONAL POLICYMAKING PROCESS In 2001, the President created the National Climate Change Technology Initiative (NCCTI), charging the Secretaries of Commerce and Energy, working with other federal agencies, to: evaluate the state of U.S. climate change technology research and development (R&D) and make recommendations for improvement; provide guidance on strengthening basic research at universities and national labora- tories, including the development of advanced mitigation technologies that offer the greatest promise for low-cost reductions of GHG emissions; develop opportunities to enhance private–public partnerships in applied R&D to ex- pedite innovative and cost-effective approaches to reducing GHG emissions; make recommendations for funding demonstration projects for cutting-edge tech- nologies; and 4 Policies and Measures Policies and Measures 1 Defined as the amount of CO 2 equivalents emitted per unit of gross domestic product (GDP). 2 The national commitment to improve U.S. GHG intensity by 18 percent by 2012 is based on projections of U.S. GHG emissions and GDP as estimated in 2002. The commitment is to improve GHG intensity by 4 percentage points over a Business As Usual case, which is expected to avoid GHG emissions of about 100 million metric tons of carbon equivalents (MMTCE) (367 Tg CO 2 Eq.) in 2012 and 500 MMTCE (1,833 Tg CO 2 Eq.) cumulatively by 2012.

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Page 1: 4 Policiesand Measures - United States Department of State · partnership.htm>. 13 S e 14 S eT i tlXV I ofh En rg yP cA 2 05. SmartWayTransportPartnership

In February 2002, President Bush set a national goal to reduce the greenhouse gas(GHG) intensity1 of the American economy by 18 percent by 2012.2 Meeting this com-mitment will prevent the release of more than 1,833 teragrams of carbon dioxide equiv-

alent (Tg CO2 Eq.) to the atmosphere, adding to the 255 Tg CO2 Eq. avoided in 2002. Tohelp achieve this goal, President Bush has taken the following actions:• created an interagency, cabinet-level committee to coordinate and prioritize federal re-

search on global climate science and advanced energy technologies;• increased the federal budget for climate change activities; and• proposed tax incentives that help spur GHG reductions by spurring cleaner, renewable

energy and more energy-efficient technologies.The Administration is pursuing a broad range of policy measures, financial incentives,

voluntary programs, and other federal programs that can help to slow the growth in GHGemissions and reduce GHG intensity. The Administration’s approach balances near-termopportunities with long-term investments in breakthrough technologies needed forgreater emission reductions in the future. These federal efforts span the major sectors ofthe U.S. economy encompassing generation and use of energy in the commercial, resi-dential, industrial, and transportation sectors; management of agriculture and forestry;and management of waste streams and industrial byproducts. In addition, businesses,state and local governments, and nongovernmental organizations (NGOs) are addressingglobal climate change in numerous ways.

NATIONAL POLICYMAKING PROCESSIn 2001, the President created the National Climate Change Technology Initiative

(NCCTI), charging the Secretaries of Commerce and Energy, working with other federalagencies, to:• evaluate the state of U.S. climate change technology research and development (R&D)

and make recommendations for improvement;• provide guidance on strengthening basic research at universities and national labora-

tories, including the development of advanced mitigation technologies that offer thegreatest promise for low-cost reductions of GHG emissions;

• develop opportunities to enhance private–public partnerships in applied R&D to ex-pedite innovative and cost-effective approaches to reducing GHG emissions;

• make recommendations for funding demonstration projects for cutting-edge tech-nologies; and

4 Policies andMeasuresPolicies andMeasures

1 Defined as the amount of CO2 equivalents emitted per unit of gross domestic product (GDP).2 The national commitment to improve U.S. GHG intensity by 18 percent by 2012 is based on projections of U.S. GHG

emissions and GDP as estimated in 2002. The commitment is to improve GHG intensity by 4 percentage points over aBusiness As Usual case, which is expected to avoid GHG emissions of about 100 million metric tons of carbonequivalents (MMTCE) (367 Tg CO2 Eq.) in 2012 and 500 MMTCE (1,833 Tg CO2 Eq.) cumulatively by 2012.

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38 U.S. CLIMATE ACTION REPORT—200638 U.S. CLIMATE ACTION REPORT—2006

3 See <http://www.climatetechnology.gov/vision2005/cctp-vision2005.pdf>.

4 See <http://www.climatescience.gov/>.5 For example, the Landfill Rule and the Significant New

Alternatives Program, discussed later in this chapter.6 The reported impacts of individual policies and

measures in this chapter are based on specificassumptions of the impacts and adoption of eachmeasure, but recognize fewer interactions andcompetitive effects within and between economicsectors than the aggregate estimates used in Chapter5. For a more detailed explanation, see Chapter 5.

7 See <http://www.climatevision.gov/>,<http://www.pi.energy.gov/enhancingGHGregistry/>,and <http://www.eia.doe.gov/oiaf/1605/aboutcurrent.html>.

• evaluate improved technologies formeasuring and monitoring gross andnet terrestrial GHG emissions.In February 2002, the President reor-

ganized federal oversight, management,and administrative control of climatechange activities. He established thecabinet-level Committee on ClimateChange Science and Technology Integra-tion (CCCSTI), thereby directly engagingthe heads of all relevant departments andagencies in guiding and directing climatechange activities, and charged the CCCSTIwith developing innovative approaches inaccord with a number of basic principles:• Be consistent with the long-term goal

of stabilizing GHG concentrations inthe atmosphere.

• Be measured, and continually build onnew scientific data.

• Be flexible to adjust to new informationand take advantage of new technology.

• Ensure continued economic growthand prosperity.

• Pursue market-based incentives andspur technological innovation.

• Base efforts on global participation, in-cluding developing countries.3

The CCCSTI makes recommendationsto the President on matters concerning cli-mate change science and technology plans,investment, and progress. Under the aus-pices of the CCCSTI, two multi-agencyprograms were established to coordinatefederal activities in this area: the U.S. Cli-mate Change Science Program (CCSP),4

led by the U.S. Department of Commerce(DOC), and the U.S. Climate Change

Technology Program (CCTP), led by theU.S.Department of Energy (DOE). CCSPand CCTP are discussed in greater detailin Chapter 8.

The U.S global climate change strategyand the progress being made are routinelyreviewed by the relevant committees andworking groups. This fourth nationalcommunication demonstrates U.S. pro-gress toward implementing the provisionsof the United Nations Framework Con-vention on Climate Change in accordancewith current knowledge of the science andU.S. efforts to develop longer-term solu-tions.

Federal Policies and MeasuresFederal policies and measures play a

central role in achieving the President’sGHG intensity goal and longer-term cli-mate change objectives. Policies consist ofa balanced mix of near- and long-term,voluntary and regulatory,5 research and de-velopment, CO2 and other potent GHGs,and commercial, residential, industrial, andtransportation sector initiatives. Federalprograms and initiatives provide a com-prehensive approach for the near term, anda foundation for climate science and tech-nologies that will reduce uncertainties anddeliver even greater emission reductions inthe future. The United States will continueto pursue lowering GHG intensity in par-allel with reducing the uncertainties in cli-mate science and technology.The domesticpolicies and programs promoted by thePresident allow consumers and businessesto make flexible decisions about emissionreductions, rather than only mandatingparticular control options or rigid targets.The President’s policies challenge and pro-vide incentives to businesses to reduce theirGHG emissions by joining federal partner-ship programs promoting improved en-ergy efficiency and increased use ofrenewable energy technologies.Going for-ward, future initiatives will build on thesesuccesses.

With sustained efforts, emission reduc-tions accompanied by economic growthare expected to achieve the President’s

goal. Established programs have demon-strated the accomplishments that well-designed policies can achieve.However, theprogram projections in this chapter shouldnot be compared to the information pre-sented in Chapter 5 and should not beused directly to calculate the national pro-jections.6 In addition, several programs arenot included in the Chapter 5 projectionsfor a number of reasons, including doublecounting of benefits and stage of imple-mentation. However, these unscored pro-grams are still expected to contribute to theoverall emission reductions and reachingthe 2012 target. Representative federaldomestic climate programs and their esti-mated GHG reduction goals are listed inTable 4-2 at the end of this chapter.

NEW INITIATIVES SINCETHE 2002 CAR

Since the last Climate Action Report(CAR) was published in 2002, new initia-tives have been introduced to augment ex-isting climate change activities at thefederal level. They target additionalsources of emissions and provide oppor-tunities for significant reductions. Someexamples of these new initiatives follow.

Climate VISIONClimate VISION7 assists industry ef-

forts to accelerate the transition to prac-tices, improved processes, and energytechnologies that are cost-effective,cleaner, more efficient, and more capableof reducing, capturing, or sequesteringGHGs.Already, business associations rep-resenting 14 industry sectors and TheBusiness Roundtable have become pro-gram partners with the federal govern-ment and have issued letters of intent tomeet specific targets for reducing GHGemissions intensity. These partners repre-sent a broad range of industry sectors: oiland gas production, transportation, andrefining; electricity generation; coal andmineral production and mining; manufac-turing; railroads; and forestry products.Partnering sectors account for about 40–45 percent of total U.S. emissions.

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CHAPTER 4—POLICIES AND MEASURES 39CHAPTER 4—POLICIES AND MEASURES 39

Revised Guidelines for Voluntary GHGEmissions Reporting

RevisedGuidelines forVoluntaryGreen-house Gas Emissions Reporting under sec-tion 1605(b) of the Energy Policy Act of1992 are intended to encourage utilities, in-dustries, farmers, landowners, and otherparticipants to submit to an on-line registrycomprehensive reports on their emissionsand emission reductions, including seques-tration. The enhanced registry is intendedto boost measurement accuracy, reliability,and verifiability, working with and takinginto account emerging domestic and inter-national approaches. For the most recentreporting year (2004), 226 U.S. companiesand other organizations filedGHG reports.

Climate LeadersClimate Leaders8 was launched in early

2002 to encourage individual companies todevelop long-term, comprehensive climatechange strategies. Under this program,partners set corporate-wide GHG reduc-tion goals and inventory their emissions tomeasure progress.The partnership now in-cludes more than 100 partners, half ofwhom have already set GHG emission re-duction goals. The U.S. GHG emissions ofthese partners are equal to nearly 10 percentof the U.S. total.

Green Power PartnershipAs part of the U.S. Environmental Pro-

tection Agency’s (EPA’s) Clean Energy Ini-tiative, theGreen Power Partnership9 assistsorganizations in demonstrating environ-mental leadership by choosing electricityproducts generated from renewable energysources. The partnership now has morethan 600 partners committed to purchasingmore than 4 million megawatt-hours(MWh) of green power (U.S. EPA/OAR2006).

8 See <http://www.epa.gov/climateleaders/>.9 See <http://www.epa.gov/greenpower/>.10 See <http://www.epa.gov/otaq/smartway/index.htm>.11 See <http://www.energystar.gov/>.12 See <http://www.epa.gov/cleanenergy/stateandlocal/

partnership.htm>.13 See <http://www.epa.gov/cppd/mac/>.14 See Title XVII of the Energy Policy Act of 2005.

SmartWay Transport PartnershipSmartWay Transport Partnership10

works to increase U.S. energy efficiencyand energy security, while significantly re-ducing air pollution and GHGs. It createsstrong market-based incentives for corpo-rations and the maritime, trucking, andrail companies that deliver their productsto improve the environmental perform-ance of freight operations.

New ENERGY STAR ProductsThe ENERGY STAR11 program has ex-

panded substantially to include new prod-ucts and building types, such as schools,grocery stores, hotels, hospitals and med-ical office buildings, and warehouses. Anational campaign challenges buildingowners and managers to improve energyefficiency by 10 percent or more. NewENERGY STAR-labeled products forhomes and businesses have been intro-duced into the marketplace, including ex-ternal power supplies, battery chargers,and vending machines. To date, con-sumers have purchased 2 billion ENERGYSTAR-qualified products.

Clean Energy–Environment StatePartnership Program

The Clean Energy–Environment StatePartnership Program12 encourages statesto develop and implement cost-effectiveclean energy and environmental strategiesthat help further both environmental andclean energy goals and achieve publichealth and economic benefits.

Mobile Air Conditioning ClimateProtection Partnership

Launched in 2004, the Mobile Air Con-ditioning Climate Protection Partnership13

strives to reduce GHG emissions fromvehicle air conditioning systems throughvoluntary approaches. The program pro-motes cost-effective designs and improvedservice procedures that minimize emis-sions from mobile air conditioning sys-tems.

Energy Policy Act of 2005In August 2005, President Bush signed

into law the Energy Policy Act of 2005(EPAct), a bill with far-reaching impacts

on the U.S. energy economy. In additionto R&D programs, EPAct has a number ofprovisions designed to accelerate marketpenetration of advanced, clean-energytechnologies. The provisions include taxbreaks for production from advanced nu-clear power; clean coal facilities; integratedgasification-combined cycle; energy-effi-cient commercial buildings, homes, andappliances (i.e., ENERGY STAR); residen-tial energy-efficient property; business in-stallation of fuel cells and stationarymicroturbine power plants; business solarinvestment tax credit; alternative motorvehicle credit; and nuclear power.

EPAct authorizes DOE to enter intoloan guarantees for a variety of early com-mercial projects that use advanced tech-nologies that avoid, reduce, or sequesterair pollutants or anthropogenic sources ofGHGs, and have a reasonable prospect ofthe borrower’s repayment of the principaland interest on the obligation.14 Eligibleprojects include renewable energy systems;advanced fossil fuel technology; hydrogenfuel cell technology; advanced nuclear en-ergy facilities; carbon capture and seques-tration practices and technology; efficientend-use energy technologies; efficient en-ergy generation, transmission, and distri-bution; production facilities forfuel-efficient vehicles; pollution controlequipment; and refineries. EPAct also pro-vides standby default coverage for certainregulatory and litigation delays for the firstsix nuclear power plants.Under this provi-sion, DOE is authorized to indemnify cer-tain covered costs up to $500 million foreach of the first two and $250 million foreach of the next four nuclear power plantsif full power operation is delayed becauseof an unmet regulatory schedule or theinitiation of litigation. The provision alsooffers production tax credits for 6,000megawatts of new nuclear capacity.

In addition, EPAct mandates an in-crease in the renewable content of gasolinefrom 4 billion gallons (15.1 billion liters)in 2006 to 7.5 billion gallons (28.4 billionliters) in 2012, establishes 16 new effi-ciency mandates covering a variety of

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appliances, and requires federal agenciesto improve the efficiency of their build-ings. EPAct also provides for U.S. agenciesto undertake a range of cooperative activi-ties designed to reduce the greenhouse gasintensity of large developing countryeconomies.

NEAR-TERMMEASURESThe programs discussed in this section

are representative of the U.S. government’sefforts to curb the growth of GHG emis-sions. The near-term measures in this Cli-mate Action Report are defined by theirimplementing federal agencies as measurescontributing directly to the achievement ofthe President’s 2012 GHG intensity goal.Estimates of mitigation impacts of pro-grams are provided by the agency responsi-ble for each individual program, based onthe agency’s experience and assumptionsrelated to the implementation of voluntaryprograms. These estimates may includeassumptions about the continued orincreased participation of partners, devel-opment and deployment goals, and/orwhether the necessary commercializationor significant market penetration isachieved. Estimates of mitigation impactsfor individual policies or measures shouldnot be aggregated to the sectoral level, dueto possible synergies and interactionsamong policies andmeasures thatmight re-sult in double counting.

Energy: Residential and CommercialSectors

Representing approximately 35 percentof U.S.GHG emissions, the residential andcommercial sectors15 remain an importantfocus of U.S. climate change policies andmeasures. The use of electricity for suchservices as lighting, heating, cooling, andrunning electronic equipment and appli-ances accounts for the majority of CO2emissions in these sectors. These sectorscontinue to have potential for significant

reductions that can be realized throughboth regulatory and voluntary programsthat set standards, provide information,develop measurement tools, and buildpartnerships. By using commercially avail-able, energy-efficient products, technolo-gies, and best practices,many commercialbuildings and homes could save up to 30percent on energy bills and substantiallyreduce GHG emissions. Following are de-scriptions of key policies and measuresaimed at saving energy and avoiding GHGemissions in the residential and commer-cial sectors.

ENERGY STAR for the CommercialMarket

The ENERGY STAR program has ex-panded in the commercial market, as itcontinues to offer thousands of organiza-tions a strategy for superior energymanagement and standardized tools formeasuring their energy efficiency. Since2002, the U.S. Environmental ProtectionAgency (EPA) has expanded a key effortfirst introduced in 1999—a nationalenergy performance rating system thatallows interested parties to rate the energyefficiency of a building on a scale fromzero to 100 and to recognize top-perform-ing ENERGY STAR buildings. This systemhas been valuable in identifying cost-effective opportunities for improvementsfor a wide range of building types, includ-ing hospitals, schools, grocery stores, officebuildings, warehouses, and hotels.

The ENERGY STAR program is help-ing the commercial marketplace respondto the President’s challenge to business tovoluntarily take actions that reduce GHGemissions. In 2005, EPA joined more than20 trade associations, businesses, andstate-based institutions to challenge busi-nesses and institutions across the countryto take the necessary steps to identify themany buildings where financially attrac-tive improvements can reduce energy useby 10 percent or more, and to make theimprovements. EPA has also announced itwill recognize organizations, businesses,and institutions demonstrating energy

savings across their building portfolios by10, 20, or 30 points, as ENERGY STARLeaders. EPA estimates that in 2002,ENERGY STAR in the commercial build-ing market helped businesses reduce GHGemissions by 35 Tg CO2 Eq. and save $3billion in energy costs. EPA projects thatpursuing this effort could result in reduc-tions of 64 Tg CO2 Eq. in 2012.

Commercial Building IntegrationThe Commercial Building Integration16

(CBI) program works to realize energy-saving opportunities provided by advanc-ing a whole-building approach forcommercial construction and major ren-ovation. CBI is increasing its industry part-nerships in design, construction, operationandmaintenance, indoor environment, andcontrol and diagnostics of heating, ventila-tion, air conditioning, lighting, and otherbuilding systems. Through these efforts,DOE helps transfer the most energy-efficient building techniques and practicesinto commercial buildings through regula-tory activities, such as supporting the up-grade of voluntary (model) building energycodes and promulgating upgraded federalcommercial building energy codes.

Since 2002, CBI has facilitated a 10percent increase in commercial buildingdesigns that incorporate energy efficiencydesign tools. In 2005, the program assessedcontrol technologies, optimization meth-ods, and market opportunities to establisha framework for developing programmaticpathways to improve energy efficiency inbuildings by 50 percent or better, enablingthe development of energy-efficient designand technology packages for new com-mercial buildings. DOE estimates thatCBI, in conjunction with Rebuild Amer-ica, could reduce GHG emissions by 0.5Tg CO2 Eq. in 2012.

Rebuild AmericaRebuild America17 is being redesigned

to be better integrated with DOE’s Com-mercial Building Integration program,described above. This program works witha network of hundreds of community-based partnerships across the Nation that

40 U.S. CLIMATE ACTION REPORT—200640 U.S. CLIMATE ACTION REPORT—2006

15 See <http://www.eere.energy.gov/buildings/>.16 See <http://www.eere.energy.gov/buildings/high

performance/>.17 See <http://www.eere.energy.gov/buildings/program_

areas/rebuild.html>.

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are saving energy, improving buildingperformance, decreasing air pollutionthrough reduced energy demand, and en-hancing the quality of life through energyefficiency and renewable energy technolo-gies. In 2005, the program helped RebuildAmerica community partnerships to up-grade 5.6 million square meters (60 mil-lion square feet) of floor space in K-12schools, colleges, public housing, and stateand local governments, reducing the aver-age energy used in these buildings by 18percent.

Residential Building Integration:Building America

The objective of Building America18 isto design, build, and evaluate energy-efficient homes that use 30–40 percent lesstotal energy than comparable traditionalhomes with little or no increase in con-struction costs, and for industry to adoptthese practices for new home construc-tion. The program optimizes building en-ergy performance and savings through theintegration of new technologies with in-novative residential building practices.Ongoing research also focuses on integrat-ing on-site power systems, including re-newable energy technologies.

The Building America approach hasbuilt more than 32,000 homes in 36 states.Through the program, DOE and its morethan 470 industry partners are conductingresearch to develop advanced building en-ergy systems to make homes and commu-nities much more energy-efficient. Theenergy technologies and solutions beingadvanced by the program will contributeto a 70 percent reduction in energy useof new prototype residential buildingsthat, when combined with on-site energytechnologies, will result in “zero-energyhomes”by 2020 and a 20 percent reductionin energy use of existing homes. DOE esti-mates these efforts could generate 3.8 TgCO2 Eq. of emission reductions in 2012.

ENERGY STAR for the ResidentialMarket

The ENERGY STAR programs in theresidential sector have been expanded since

CHAPTER 4—POLICIES AND MEASURES 41CHAPTER 4—POLICIES AND MEASURES 41

2002. In addition to ongoing efforts in thenew construction marketplace, this pro-gram is developing several programmodelsfor the existing homes stock that focus onenergy efficiency opportunities with thehome envelope (e.g.,windows) and heatingand cooling systems. With new construc-tion, close to 10 percent of the new homeswere built to ENERGY STAR specificationsin 2005, meaning they were 30 percentmore efficient than model energy code (or15 percent more efficient than state energycode, whichever is stricter).

In the existing homes market, ENERGYSTAR has expanded to a whole-houseretrofit program, Home Performance withENERGYSTAR.Trained and certified con-tractors conduct whole-house energy auditsand implement the requisite cost-effectiveefficiency improvements, backed by astrong quality assurance program. EPA es-timates that homeowners could save 20–30percent on their total energy bills under thisprogram.

ENERGY STAR has also expanded intothe affordable housing market in partner-ship with the U.S. Department of Housingand Urban Development. EPA estimatesthat these programs may provide about 7TgCO2 Eq. in emission reductions in 2012.

Residential Appliance StandardsThis DOE-managed program develops,

promulgates, and enforces test proceduresand energy conservation standards for res-idential appliances and certain commercialequipment. Federal residential energy ef-ficiency standards19 that have been in effectsince 1988 or that will take effect by theend of 2007 could save an estimated totalof 34 quadrillion Btus of energy by 2020.In 2012 alone, DOE estimates a reductionof 5 Tg CO2 Eq.

Emerging Buildings Technologies20

This DOE program develops cost-effective, energy-efficient, advanced tech-nologies for residential and commercialbuildings, including lighting, building en-velope, and space heating and coolingtechnologies. Technologies developed bythis program could penetrate the market

and avoid an estimated 4.4 Tg CO2 Eq. in2012 and 25.4 Tg CO2 Eq. in 2020.

ENERGY STAR-Labeled ProductsENERGY STAR continues to grow in its

coverage of efficient products for the homeand business and partnerships with majorretailers, energy utilities, states, and others.The label is now available on models inmore than 40 product categories.Awarenessof the ENERGY STAR label has grown tomore than 60 percent, andmany consumersreport using the ENERGY STAR label aspart of their purchasing decisions.The pro-gram is currently focused on maintainingthe integrity of the ENERGY STAR brand,identifying new product categories for EN-ERGYSTAR, as well as increasing the strin-gency of performance requirements forexisting product categories, where appro-priate. About 2 billion ENERGY STAR-qualified products were purchased through2005. Due to the increased penetration ofthese products, EPA estimates that 39 TgCO2 Eq. of emissions were avoided in 2002and projects that 102 Tg CO2 Eq. may beavoided in 2012.

Weatherization Assistance ProgramDuring the last 30 years,DOE’sWeather-

ization Assistance Program21 has providedcost-effective energy efficiency improve-ments tomore than 5.5million low-incomehouseholds through the weatherization ofhomes. The program gives priority to theelderly, people with disabilities, familieswith children, and households that spend adisproportionate amount of their incomeon energy bills. (Low-income familiesspend 15–20 percent of household expenseson utility bills, compared to 5 percent or lessfor all other Americans.) On average, DOEestimates that weatherization reduces heat-ing bills by 31 percent and overall energybills by $358 per year at current prices,

18 See <http://www.eere.energy.gov/buildings/building_america/>.

19 See <http://www.eere.energy.gov/buildings/appliance_standards/>.

20 See <http://www.eere.energy.gov/buildings/tech/emerging.html>.

21 See <http://www.eere.energy.gov/weatherization/>.

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and water and wastewater industries. EN-ERGY STAR has provided strategies andguidance to help these businesses volun-tarily improve the energy efficiency oftheir operations, and at the same timecontribute to the President’s overall GHGintensity improvement goal. EPA esti-mates that in 2002, ENERGY STAR in theindustrial sector prevented 14 Tg CO2 Eq.and could avoid 21 Tg CO2 Eq. in 2012.

Industrial Technologies ProgramITP: Research and Development—The

Industrial Technologies Program23 (ITP)works in partnership with the Nation’sindustrial sector to improve its energyintensity, enhance its long-term competi-tiveness, and accelerate research, develop-ment, and commercialization of tech-nologies that increase energy and resourceefficiency. ITP develops, manages, and im-plements a balanced portfolio of technologyinvestments to address industry require-ments throughout the technology develop-ment cycle. R&D—particularly high-risk,high-return R&D—is conducted to targetefficiency opportunities in manufacturingprocesses and crosscutting energy systems.Validation and verification of technologybenefits through intermediate-term pilotand demonstration phases help emergingtechnologies gain commercialization andnear-term adoption.

ITP has contributed to the develop-ment of hundreds of commercializedindustrial technologies, perhaps accelerat-ing energy savings that might not havehappened without DOE assistance. DOEestimates this program could reduceapproximately 18 Tg CO2 Eq. in 2012.ITP: Best Practices and Save Energy Now

—This program works with industry toidentify plant-wide opportunities for en-ergy savings and process efficiency. By im-plementing new technologies and systemimprovements, many companies are real-izing the benefits of applying a Best Prac-tices24 approach. In 2006, the programintroduced a new campaign called SaveEnergy Now25 to address high U.S. naturalgas prices. Also in 2006, DOE continuedenergy savings assessments of 200 energy-

intensive facilities, and will offer an addi-tional 250 assessments in 2007. The facil-ities received a targeted, three-day steam-or process-heating assessment by a DOEenergy efficiency expert using the DOEsoftware analysis tools. The 200 assess-ments identified $475 million per year inpotential energy cost savings, that couldreduce natural gas consumption by morethan 50 trillion Btus per year, equivalent tothe natural gas consumed by more than725,000 typical homes. The annual carbonreduction from these energy savings is es-timated at 17 Tg CO2 Eq.ITP: Industrial Assessment Cen-

ters26—These centers provide eligiblesmall- and medium-sized manufacturersno-cost energy assessments, serve as atraining ground for engineers who con-duct energy audits or industrial assess-ments, and provide recommendations tomanufacturers to help them identify op-portunities to improve productivity, re-duce waste, and save energy. Thecontinuing efforts of this program may re-duce an estimated 18 Tg CO2 Eq. in 2012.ITP: Process Technologies27—This activ-

ity addresses the critical technology chal-lenges partners face for developingmaterials and production processes.An ex-ample is the isothermal melting (ITM)technology,which reduces energy use by 50percent and emissions by 80 percent. Thefirst ITMhas been installed at theAleris In-ternational Rolled Products plant inUhrichsville, Ohio. This technology couldsave theU.S. aluminum industry 18 trillionBtus per year and reduce carbon emissionsby 1 Tg CO2 Eq. per year by 2020.ITP: Crosscutting Technologies28—This

activity addresses technologies that affect all

thereby assisting low-income families inmeeting their energy needs, while alsoreducing GHG emissions. DOE estimatesthat the homes being weatherized throughthis program could displace 4 Tg CO2 Eq.in 2012.

Additional Policies and MeasuresState Energy Program22—This federal

program strengthens and supports the ca-pabilities of states to promote energy effi-ciency and to adopt renewable energytechnologies.DOE estimates that this pro-gram will displace 3 Tg CO2 Eq. in 2012.

Energy: Industrial SectorAt about 30 percent, the industrial sec-

tor has the greatest GHG emissions, largelyfrom fossil fuel combustion on site orat the power generation source. Thenumerous energy-intensive U.S. industriesprovide ample opportunities for efficiencyimprovements and emission reductions.Policies and measures included in thissection target the industrial sector bypromoting cost-effective investments intechnologies and practices to improve in-dustrial productivity, lower energy costs,and reduce waste.

ENERGY STAR for IndustryThe ENERGY STAR program also

works with manufacturing industries toenable them to enhance their corporateenergy management systems. EPA is work-ing with specific industries to identify bar-riers to energy performance, definestrategies for minimizing these barriers,and design management tools that will as-sist the industries with improvements.These efforts include the development ofplant energy performance indicators thatenable the industries to assess the effi-ciency of particular manufacturing plants,building upon the successful energy per-formance and benchmarking work in thecommercial sector.

Since 2002, the program has workedwith hundreds of industrial companiesacross energy-intensive and nonintensivesectors, including the automobile manu-facturing, cement, corn refining, food pro-cessing, glass, petroleum, pharmaceutical,

42 U.S. CLIMATE ACTION REPORT—200642 U.S. CLIMATE ACTION REPORT—2006

22 See <http://www.eere.energy.gov/state_energy_program/>.

23 See <http://www.eere.energy.gov/industry/bestpractices/>.

24 See < http://www.eere.energy.gov/industry/25 See <http://www.eere.energy.gov/industry/best

practices/index.html>.26 See <http://www.eere.energy.gov/industry/program_

areas/industries.html>.27 See <http://www.eere.energy.gov/industry/best

practices/iacs.html>.28 See < http://www.eere.energy.gov/industry/program_

areas/crosscutting_technologies.html>.

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CHAPTER 4—POLICIES AND MEASURES 43CHAPTER 4—POLICIES AND MEASURES 43

manufacturing sector energy systems. Anexample is the Super Boiler technology,which can achieve 94 percent boiler steamefficiencywithNOx emissions below 5 partsper million volume. DOE estiamtes thistechnology could save theU.S. industry 180trillion Btus per year and reduce carbonemissions by an estimated 10 Tg CO2 Eq.per year by 2020.

Energy: SupplyElectricity generation from fossil fuels is

a major contributor to U.S.CO2 emissions.Federal policies and measures aimed at en-ergy supply promote CO2 reductionsthrough the development of more energy-efficient technologies for power generationand transmission, cleaner fuels, andthe use of more nuclear power and renew-able resources. Solar energy, wind power,biopower, and hydrogen are some of the re-newable resources supported by theUnitedStates. Tax credits have helped increase do-mestic investments in renewable energy andcontinue to accelerate the cost-competitive-ness of these emerging technologies.

Nuclear Energy Plant OptimizationProgram

TheNuclear Energy PlantOptimizationProgram supports the use of nuclear energyin theUnited States by conducting researchand development focused on improving theoperations and reliability of currently oper-ating nuclear power plants,whilemaintain-ing a high level of safety and security. Theprogram made significant progress towardaddressing many of the aging material andgeneration optimization issues,which havebeen identified as the key long-term issuesfacing current operating plants. This pro-gramhas helped extend the life of the exist-ing fleet of nuclear power plants withoutcompromising safety, thus reducing theneed for additional fossil fuel-fired genera-tion capacity.

Nuclear Power 2010 ProgramNuclear Power 2010,29 funded at $66

million in fiscal year 2006, supports de-ployment of new U.S. nuclear powerplants. Activities include completing thecost-shared Early Site Permit demonstra-

tion projects, with issuance of three EarlySite Permits at three utility sites by the U.S.Nuclear Regulatory Commission (NRC).In addition, the program supports the de-velopment of advanced nuclear plant tech-nologies, evaluates the business case forbuilding new nuclear power plants, anddemonstrates the NRC’s new Construc-tion and Operating License process.

Renewable Energy CommercializationWind Energy30—Wind energy is the

world’s fastest-growing energy-supplytechnology. Today, the United States hasmore than 10,000 MW of wind-generatingcapacity. DOE’s wind program has suc-cessfully graduated its high-speed wind ef-fort, meeting its cost-of-energy goal of 3cents/kilowatt-hour (kWh) in Class 6winds in 2004. Electricity generated fromwind power in America displaced approx-imately 11,000 short tons of CO2 emis-sions in 2004. (Note that this figureassumes that wind displaces new coalgeneration.) Since 2002, the program hasfocused most of its efforts on low-wind-speed technologies and, through itspublic–private partnerships, has improvedthe cost of energy for large systems in Class4 onshore winds from 5.5 cents/kWh in2002 to 4.3 cents/kWh in 2005. Based onthe recent emergence of U.S. offshore windpower development prospects and assess-ments of potential national benefits, theprogram is also supporting activities ad-dressing barriers and opportunities for thisU.S. energy market segment. DOE esti-mates that realizing the program’s R&Dgoals could result in wind energy displac-ing 5 Tg CO2 Eq. in 2012.Solar Energy31—This program is im-

proving the performance of solar energysystems and reducing development, pro-duction, and installation costs to compet-itive levels, thereby accelerating large-scaleusage across the Nation. When federalsolar energy research began in the 1970s,the cost of electricity from solar resourceswas about $2.00/kWh. Technological ad-vances over the last two decades have sig-nificantly reduced solar electricity costs.Today, the cost of solar electricity ranges

from as low as $0.12/kWh for concentrat-ing solar power to $0.18/kWh for certainphotovoltaic applications. DOE estimatesthat realizing the program’s R&D goalscould result in solar energy displacing 0.2Tg CO2 Eq. in 2012.Geothermal Energy32—This program

works in partnership with industry to es-tablish geothermal energy as an economi-cally competitive contributor to the U.S.energy supply.Geothermal energy produc-tion generates electricity or provides heatfor direct applications, including aquacul-ture, crop drying, and district heating, orfor use in heat pumps to heat and coolbuildings. The technologies developed bythis program will provide the Nation withnew sources of electricity that are highlyreliable and cost-competitive and do notadd to America’s air pollution or GHGemissions. In 2004, U.S. electricity gener-ated from geothermal power displacedabout 11,000 short tons of CO2 emissions.Biofuels33—DOE has contributed to the

advancement of biomass technology bytesting and demonstrating biomassco-firing with coal, developing advancedtechnologies for biomass gasification,developing and demonstrating small mod-ular systems, and developing and testinghigh-yield, low-cost biomass feedstocks.This research has helped biomass become aproven commercial electricity-generationoption in the United States. With about9,700 MW of installed capacity in 2004(wood and waste), it is estimated that bio-mass displaced approximately 50,000 tonsof CO2 emissions in 2004.

Distributed EnergyThe Distributed Energy Program34

supports cost-effective R&D aimed atlowering costs, reducing emissions, andimproving reliability and performance to

29 See <http://np2010.ne.doe.gov/> and<http://www.ne.doe.gov/infosheets/np2010.pdf>.

30 See <http://www.eere.energy.gov/windandhydro/wind_research.html>.

31 See <http://www.energy.gov/energysources/solar.htm>.

32 See <http://www.eere.energy.gov/geothermal/>.33 See <http://www.eere.energy.gov/biomass/>.34 See <http://www.eere.energy.gov/de/>.

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fossil fuel process treatment.The program’sgoal is to research and develop a portfolioof safe, cost-effectiveGHGcapture, storage,and mitigation technologies by 2012, lead-ing to substantial market penetration be-yond 2012. DOE estimates the impacts ofresultant technologies to be 30.3 Tg CO2Eq. in 2012 and 34.0 Tg CO2 Eq. in 2020.

Additional Policies and MeasuresWoody Biomass—The Secretaries of

Agriculture, Energy, and the Interiorsigned an agreement in June 2003 to en-courage the use of woody biomass fromforest, rangeland, and woodland landmanagement treatments wherever ecolog-ically sustainable. Such use can reducesmoke and GHG emissions by up to 97percent, compared to open burning. Useof woody biomass as a bio-based product(timber, engineered lumber, paper andpulp, furniture, plastics, etc.) may also se-quester carbon by an unspecified amount.

In May 2005, the Department of the In-terior (DOI) issued a regulation authoriz-ing the removal and use of woody biomassfrom all land management projects, wher-ever ecologically appropriate and in accor-dance with the law, from the 500 millionacres managed by DOI.

Transportation

Corporate Average Fuel EconomyProgram

The Corporate Average Fuel Economy38

(CAFE) program requires automobilemanufacturers to meet average fuel econ-omy standards for the light-duty vehiclefleet sold in the United States. The passen-ger car standard has been set by statute at11.7 kilometers per liter(kpl) (27.5 milesper gallon (mpg)), but can be amendedthrough rulemaking. In 2003, the NationalHighway Traffic Safety Administration(NHTSA) raised the standard for mini-vans, pickup trucks, sport utility vehicles(SUVs), and other light trucks from 8.8kpl (20.7 mpg) to 8.9 kpl (21.0 mpg) for2005, 9.2 kpl (21.6 mpg) for 2006, and 9.4kpl (22.2 mpg) for 2007. The action morethan doubles the increase in the standardthat occurred between 1986 and 2001, a

period of more than 15 years. It is pre-dicted that this activity might save approx-imately 412 trillion Btus (3.6 billiongallons) of gasoline over the life of modelyear 2005–07 light-truck fleets and is pro-jected to result in emission reductions of42 Tg of CO2 Eq. in 2012 for all lighttrucks after model year 2005.

In March 2006, NHTSA issued a newrule for light trucks covering model years2008–11. The new rule raises requiredlight-truck fuel economy to 24 mpg bymodel year 2011 and will save nearly 1,259trillion Btus (11 billion gallons) of gasoline(73 Tg of CO2 Eq.) over the life of the af-fected vehicles. The new rule includes aninnovative reform that varies fuel econ-omy standards according to the size of thevehicle. The regulation has also been ex-tended for the first time to large passengervans and SUVs.

SmartWay Transport PartnershipThis voluntary partnership39 between

EPA and the transportation industry aimsto increase energy efficiency while signifi-cantly reducing GHGs and air pollution.EPA provides tools and models to helpSmartWay Transport partners adopt cost-effective strategies to save fuel and reduceemissions.

To date, more than 500 companies andorganizations have joined the partnership.Freight shippers meet their goals by usingparticipating carriers, while trucking andrail companies meet their goals by improv-ing freight transport efficiency.

The SmartWay National Transporta-tion Idle Free Corridor Program has estab-lished 86 projects to reduce long-durationtruck and locomotive idling, convertingmore than 5,000 parking spaces to no-idlezones. To help states improve idle-reduction policies and programs, EPApublished a model idle-reduction law.

expand opportunities for the current andfuture installation of distributed energyequipment. The program is working to de-velop and commercialize by 2015 a diversearray of high-efficiency, integrated, distrib-uted-generation, and thermal-energy tech-nologies at market-competitive prices, sothat homes, businesses, industry, commu-nities, and electricity companies choose touse them.Along with reducing GHG emis-sions, these technologieswill increase the re-liability of America’s electricity system.DOEanticipates that the efforts of this programcould avoid almost 24 Tg CO2 Eq. in 2012.

Clean Energy InitiativeEPA’s Clean Energy Initiative consists

of two partnership programs that promotecost-effective technologies that offer im-proved efficiencies and lower emissionsthan traditional energy supply options.EPA projects the continued efforts of thesetwo programs will spur new clean energyinvestments that could avoid 29 Tg CO2Eq. of GHG emissions in 2012.Green Power Partnership35—This pro-

gram facilitates the purchase of environ-mentally friendly electricity fromrenewable energy sources by addressingthe market barriers that stifle demand.Since its launch in 2001, the Green PowerPartnership has grown to more than 600partners who have committed to purchas-ing 4 billion kWh of green power.Combined Heat and Power (CHP) Part-

nership36—Also launched in 2001, CHPprovides technical assistance toorganizations across multiple sectors thatinvested in CHP projects and assisted stategovernments in designing regulations thatencourage investment in CHP.As a result,the program now includes 170 partnerswho have installed 3,460 MW of opera-tional CHP.

Carbon Sequestration ProgramDOE’s Carbon Sequestration Program37

will focus primarily on developing captureand separation technologies that dramati-cally lower the costs and energy require-ments of reducing CO2 emissions from

44 U.S. CLIMATE ACTION REPORT—200644 U.S. CLIMATE ACTION REPORT—2006

35 See <http://www.epa.gov/greenpower/index.htm>.36 See <http://www.epa.gov/chp/index.htm>.37 See <http://www.fe.doe.gov/programs/sequestration/

index.html>.38 See <http://www.nhtsa.dot.gov/portal/site/nhtsa/

menuitem.d0b5a45b55bfbe582f57529cdba046a0/>.39 See <http://www.epa.gov/smartway/>.

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CHAPTER 4—POLICIES AND MEASURES 45

SmartWay Upgrade Kits, availablethrough truck dealerships and parts deal-ers, can save companies up to 15 percentin fuel and CO2 emissions per year. EPApartnered with the Small Business Admin-istration to offer SmartWay Upgrade Kitloans, and will publish guidance for statesto initiate these projects.

Other SmartWay initiatives includeEPA’s recent announcement of a Smart-Way designation for new, clean, and effi-cient tractor-trailer combination trucks,which can save 10–20 percent annually infuel and CO2 emissions. SmartWay’ssupply-chain initiative is developing newstrategies to provide a more efficient inte-gration of marine transport, port opera-tions, and logistics. And to encourage theuse of low-carbon renewable fuels, EPA re-cently introduced SmartWay Grow andGo, which aims for 25 percent of Smart-Way partners to use biofuels by 2012.

EPA estimates the SmartWay Transportpartnership could reduce emissions by 33Tg CO2 Eq. in 2012.

Renewable Fuel StandardUnder the Energy Policy Act of 2005,

EPA is responsible for promulgating regu-lations to ensure that gasoline sold in theUnited States contains a specific volume ofrenewable fuel. This national RenewableFuel Standard will increase the volume ofrenewable fuel that is blended into gaso-line, starting with calendar year 2006. Thestandard is intended to double the amountof renewable fuel usage by 2012.

FreedomCAR and Fuel Partnership andVehicle Technologies Program

This public–private partnership40 withtheNation’s automobilemanufacturers andpetroleum companies promotes the devel-opment of hydrogen as a primary fuel forcars and trucks. Its focus is on researchneeded to develop hydrogen fromdomesticrenewable sources and technologies that uti-lize hydrogen, such as fuel cells. The pro-gram41 works jointly with DOE’s hydrogen,fuel cell, and infrastructure R&Defforts andthe efforts to develop improved technologyfor hybrid electric vehicles. These advanced

technologies —which include the hybridelectric components (such as batteries andelectric motors), advanced materials toreduce the weight of vehicles, advancedhigh-efficiency combustion engines, andadvanced fuels—could result in dramaticreductions of criteria pollutants and GHGemissions from the transportation sector.42

DOE estimates that achieving its vehicletechnologyR&Dgoals could reduce carbonemissions by about 11.5 Tg CO2 Eq. by2012.

Clean CitiesThe benefits of Clean Cities43 are now

included in the FreedomCAR and FuelPartnership and in the Vehicle Technolo-gies Program. This DOE program sup-ports efforts to deploy alternative fuelvehicles (AFVs) and develop the necessarysupporting infrastructure. Clean Citiesworks through a network of more than 85volunteer, community-based coalitions topromote the use of alternative fuels andpetroleum-displacement technologies,and to advance the use of alternative fuelblends, idle-reduction technologies, hy-brid electric vehicles, and fuel economypractices. Clean Cities stakeholders haveadded approximately 200,000 AFVs totheir fleets, which have displaced morethan 109 trillion Btus (950 million gallons)of petroleum since 1994.

Congestion Mitigation and Air QualityImprovement Program

Administered by DOT in consultationwith EPA, the Congestion Mitigation andAir Quality (CMAQ) Improvement Pro-gram,44 provides states with funds to reducecongestion and to improve air qualitythrough transportation control measuresand other strategies. The amount of fund-ing given to a state is based on the severityof the air quality problem and the popula-tion of the area that does not meet air qual-ity standards. State and local governmentsselect the projects to fund and coordinatethem through metropolitan planning or-ganizations. The projects vary by region,but typically include transit improvements,alternative fuel programs, shared-ride serv-

ices, traffic flow improvements, demandmanagement strategies, pedestrian andbicycle programs, and inspection andmaintenance programs. Other activities,such as idle-reduction, diesel engine retro-fits, and education and outreach programs,may also be eligible for CMAQ funds.Transportation control measures in airquality plans—strategies to reduce pollu-tion by reducing vehicle use or improvingtraffic flow—receive priority funding underCMAQ. Nearly 16,000 air quality projectshave received CMAQ funding since 1992,resulting in significant reductions in vehicleemissions, including GHG emissions.

Aircraft Fuel EfficiencyAviation yields GHG emissions that

have the potential to influence global cli-mate. In the United States, aviation makesup about 3 percent of the national GHGinventory and about 12 percent of trans-portation emissions. Currently,measuringand tracking fuel efficiency from aircraftoperations provide the data for assessingthe improvements in aircraft and enginetechnology, operational procedures, andthe airspace transportation system that re-duce aviation’s contribution to CO2 emis-sions. DOT has a goal to improve aviationfuel efficiency per revenue plane-mile by 1percent per year through 2009. In the nearterm, new technologies to improve air traf-fic management will help reduce fuel burnand, thus, emissions. In the long term, newengines and aircraft will feature more effi-cient components and aircraft aerodynam-ics, enhanced engine cycles, and reducedweight, thereby improving fuel efficiency.

Biomass and Biorefinery SystemsProgram45

DOE and the U.S.Department of Agri-culture (USDA) partner with industry tofoster R&D of advanced technologies that

CHAPTER 4—POLICIES AND MEASURES 45

40 See <http://www.eere.energy.gov/vehiclesandfuels/about/partnerships/freedomcar/index.html>.

41 See <http://www.eere.energy.gov/vehiclesandfuels/>.42 The U.S. government uses six “criteria pollutants” as

indicators of air quality: ozone, carbon monoxide, sulfurdioxide, nitrogen dioxides, particulate matter, and lead.

43 See <http://www.eere.energy.gov/cleancities/>.44 See <http://www.fhwa.dot.gov/environment/cmaqpgs/>.45 See <http://www.eere.energy.gov/biomass/>.

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Natural Gas STAR47—Through thispartnership program, EPA works withcompanies that produce, process, trans-mit, and distribute natural gas to identifyand promote the implementation of cost-effective technologies and practices to re-ducemethane emissions. Since its launch in1993, Natural Gas STAR has been success-ful in reducing methane emissions andbringing more energy to markets. As of2004,Natural Gas STARpartner companiesrepresented almost 60 percent of the U.S.natural gas industry. EPA estimates the pro-gram reduced methane emissions by 20 TgCO2 Eq. in 2002. Because of the program’sexpanded reach, EPA estimates the reduc-tion for 2012 may be 28 Tg CO2 Eq.Coalbed Methane Outreach

Program48—The fraction of coal minemethane from degasification systems cap-tured and used grew from 25 percent in1990 to more than 70 percent in 2002. Ini-tiated in 1994, the Coalbed Methane Out-reach Program (CMOP) is working todemonstrate technologies that can elimi-nate the remaining emissions from degasi-fication systems, and is addressingmethane emissions in mine ventilation air.EPA estimates that CMOP reduced 6 TgCO2 Eq. in 2002.Due to enhanced marketopportunities for natural gas and power,EPA anticipates further refinement oftechnical options for the capture and uti-lization of mine methane, a growing re-liance on methane degasification in thewestern United States, and CMOP’s con-tinued success in reducing ventilation airmethane over the next few years. EPA proj-ects CMOP could reduce emissions by 10Tg CO2 Eq. in 2012.

High-GWP ProgramsThe United States is one of the first na-

tions to develop and implement a nationalstrategy to control emissions of high-GWP gases. The strategy is a combinationof industry partnerships and regulatorymechanisms to minimize atmosphericreleases of hydrofluorocarbons (HFCs),perfluorocarbons (PFCs), and sulfur hexa-fluoride (SF6)—which are potent GHGs

that contribute to global warming—whileensuring a safe, rapid, and cost-effectivetransition away from chlorofluorocarbons(CFCs),hydrochlorofluorocarbons (HCFCs),halons,andotherozone-depleting substancesacrossmultiple industry sectors.Environmental Stewardship—The objec-

tive of this initiative is to limit emissions ofHFCs,PFCs, and SF6 in three industrial ap-plications: semiconductor production,49

electric power distribution,50 and magne-sium production.51 Since 2002, the SF6emission reduction partnership formagne-sium set a goal to eliminate emissions of SF6by the end of 2010. Additional sectors arebeing assessed for the availability of cost-ef-fective emission reduction opportunitiesand are being added to this initiative.

EPA estimates that EnvironmentalStewardship partners reduced emissionsby 5 Tg CO2 Eq. in 2002, and projects theymay reduce emissions by 35 Tg CO2 Eq. in2012. Because of a significant decline inthe growth rates of domestic production,particularly in the magnesium and semi-conductor industries, EPA’s estimate of thetotal 2012 reduction is more than 50 per-cent less than had been expected in 2002.Nonetheless, significant reductions perunit of activity in these sectors are attrib-utable to this initiative’s voluntary partner-ships.HFC-23—This partnership continued

to encourage companies to develop and im-plement technically feasible, cost-effectiveprocessing practices or technologies toreduce HFC-23 emissions from the manu-facture of the ozone-depleting substanceHCFC-22. Despite a 4 percent increase inproduction compared to 1990, EPA esti-mates that total emissions in 2002 weresignificantly below 1990 levels. Comparedto the Business As Usual case in 2002, therewas a reduction of 17 Tg CO2 Eq. EPA

will convert U.S. biomass resources into af-fordable industrial products (includingenergy and higher-valued chemicals andmaterials) through the development ofbiorefineries. An analogy to this approachis the petroleum refinery that refines crudeoil into a broad range of industrial prod-ucts. In the future, biorefineries will useadvanced technology—such as hydrolysisof cellulosic biomass to sugars and ligninand thermochemical conversion of bio-mass to synthesis gas for fermentation andcatalysis of these platform chemicals—toproduce slates of biopolymers and fuels.Today, America’s environment is reapingthe benefits of the public–private R&Dpartnerships that have formed over thepast two decades and that, in combinationwith government energy policies, have re-sulted in such alternative fuels as gasohol(a combination of gasoline and ethanol),accounting for approximately 10 percentof the fuel used on U.S. highways. By 2012these efforts could yield an estimated 0.6Tg CO2 Eq. in avoided emissions.

Industry: Non-CO2

Methane ProgramsU.S. industries, along with state and

local governments, collaborate with EPAto implement several voluntary programsthat promote profitable opportunities forreducing emissions of methane, an impor-tant GHG.46 These programs are designedto overcome a wide range of informa-tional, technical, and institutional barriersto reducing methane emissions, while cre-ating profitable activities for the coal, nat-ural gas, and petroleum industries. Thecollective results of EPA’s voluntarymethane partnership programs have beensubstantial. Total U.S. methane emissionsin 2004 were 10 percent lower than emis-sions in 1990, despite robust economicgrowth over that period. EPA projectsthese programs may maintain emissionsbelow 1990 levels beyond 2012, due to ex-panded industry participation and thecontinuing commitment of the participat-ing companies to identify and implementcost-effective technologies and practices.

46 U.S. CLIMATE ACTION REPORT—200646 U.S. CLIMATE ACTION REPORT—2006

46 See <http://www.epa.gov/methane/index.html>.47 See <http://www.epa.gov/gasstar/index.htm>.48 See <http://www.epa.gov/cmop/index.html>.49 See <http://www.epa.gov/semiconductor-pfc/>.50 See <http://www.epa.gov/highgwp/electricpower-

sf6/index.html>.51 See <http://www.epa.gov/magnesium-sf6/>.

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CHAPTER 4—POLICIES AND MEASURES 47

estimates a reduction of 16 Tg CO2 Eq. for2012, which is lower than EPA anticipatedin 2002.One major U.S. producer stoppedmanufacturing HCFC-22 in 2002; thus,the reduction potential has declined dueto lower total production.Voluntary Aluminum Industry Partner-

ship52—This partnership has continued toreduce CF4 and C2F6 where cost-effectivetechnologies and practices are technicallyfeasible. Since 2002, the partnership ex-panded its reduction goal to reduce directcarbon emissions from anode consump-tion as well as PFCs. EPA estimates that thepartnership reduced PFC emissions by 7Tg CO2 Eq. in 2002 and projects reduc-tions of 10 Tg CO2 Eq. in 2012.Significant New Alternatives

Program53—Since the 2002 CAR, the Sig-nificant New Alternatives Program(SNAP) has continued its progress inphasing down the use of ozone-depletingsubstances (ODSs), such as CFCs andHCFCs. SNAP has worked closely with in-dustry to research, identify, and imple-ment climate- and ozone-friendlyalternatives, supporting a smooth transi-tion to these new technologies. In addi-tion, SNAP has initiated programs withdifferent industry sectors to monitor andminimize emissions of global-warminggases, such as HFCs and PFCs used assubstitutes for ozone-depleting chemi-cals. By limiting use of these gases in spe-cific applications where safe alternativesare available, SNAP reduced emissions byan estimated 26 Tg CO2 Eq. in 2002 and isprojected to reduce emissions by 150 TgCO2 Eq. in 2012.Mobile Air Conditioning Climate Protec-

tion Partnership54—Announced in 2004,the Mobile Air Conditioning Climate Pro-tection Partnership is striving to reduceGHG emissions from vehicle air condi-tioning systems through voluntary ap-proaches. The program will identifynear-term opportunities to improve theenvironmental performance of mobile airconditioners and to promote cost-effectivedesigns and improved service procedures

that minimize emissions from mobile airconditioning systems. Partnership mem-bers are pursuing two goals: reduce fuelconsumption from the operation of vehi-cle air conditioning by at least 30 percent,and reduce direct refrigerant emissions by50 percent, thereby avoiding emissions ofHFC-134a, a very potent GHG. Driverswill save money by using less fuel, and willbenefit from improved air conditioning re-liability due to improved technology. EPAestimates that this effort will avoid morethan 5 Tg CO2 Eq. in 2012.

Additional Policies and MeasuresVoluntary Code of Practice for the Reduc-

tion of Emissions of HFC & PFC Fire Pro-tection Agents—In 2002, EPA and severalhundred equipment and chemical manu-facturers and distributors representing theU.S. fire protection industry launched theVoluntary Code of Practice for theReduction of Emissions of HFC & PFCFire Protection Agents (VCOP). Success-ful implementation of VCOP achieves thedual goals of minimizing nonfire emis-sions of HFCs and PFCs, used as fire-sup-pression alternatives to ozone-depletinghalons, and continuing to protect peopleand property from the threat of firethrough the use of proven, effective prod-ucts and systems.Green Grocer—EPA is working with su-

permarket companies and equipmentmanufacturers to promote the deploymentof new, energy-efficient technologies thatreduce emissions of fluorocarbon refriger-ants (including HFCs). The first stage ofthis program is underway and includesEPA and industry evaluations of the per-formance, feasibility, costs, and benefits ofalternative systems in stores.

AgricultureUSDA is providing incentives and sup-

porting voluntary actions by privatelandowners to conserve and protect natu-ral resources on agricultural lands. USDAconservation programs were established toprovide broad conservation goals, such ascleaner water and reduced soil erosion.Many of the actions and activities sup-

ported by these programs also reduceGHG emissions and increase carbon se-questration. To bolster these benefits, in2003, USDA announced that, for the firsttime, it would give consideration to GHGbenefits in implementing the Nation’s for-est and agriculture conservation pro-grams. Major elements of the USDAactions to reduce GHGs are described inthe following sections.

Environmental Quality IncentivesProgram

The Environmental Quality IncentivesProgram55 (EQIP) provides financial assis-tance for conservation practices on work-ing farm and ranch lands. The NaturalResources Conservation Service (NRCS)provided guidance to its state offices thatnoted that conservation technologies andsystems for reducing emissions, increasingcarbon sequestration, and achieving otherenvironmental benefits can be compatiblewith production agriculture, and encour-aged recognition for these extra effortswithin the local EQIP ranking systems. Awide array of conservation practices canreduce GHG emissions, including residuemanagement, irrigation water manage-ment, nutrient management, crop rota-tions, cover crops, wetland restoration,and grazing land management.

For two practices, NRCS has estimatedEQIP’s contribution to mitigating GHGemissions. In 2005, EQIP provided assis-tance to farmers to adopt residue manage-ment on about 1 million hectares (ha)(2.47 million acres (ac)), which is esti-mated to sequester about 2 Tg CO2 Eq. peryear. In addition, reduced use of diesel fuelon these same lands could lower CO2emissions by as much as 0.1 Tg CO2 Eq.per year. Also in 2005, EQIP provided as-sistance to ranchers to undertake pre-scribed grazing on 1.8 million ha (4.5million ac), which is estimated to sequesterabout 0.3 Tg CO2 Eq. per year.

CHAPTER 4—POLICIES AND MEASURES 47

52 See <http://www.epa.gov/highgwp/aluminum-pfc/index.html>.

53 See <http://www.epa.gov/ozone/snap/index.html>.54 See <http://www.epa.gov/cppd/mac/>.55 See <http://www.nrcs.usda.gov/programs/eqip/>.

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vides financial and technical assistance topromote conservation on working crop-land, pasture, and range land, as well asforested land that is an incidental part ofan agriculture operation.NRCS is provid-ing enhancement payments under theCSP to promote energy conservation andthe production and use of renewable fuelsand electricity.

AgSTARJointly sponsored by EPA, USDA, and

DOE,AgSTAR58 encourages the voluntaryuse of methane-recovery (biogas) tech-nologies at the confined animal feedingoperations that manage manure as liquidsor slurries. These technologies reducemethane emissions while achieving otherenvironmental benefits. Although theoverall impact of AgSTAR on GHG emis-sions has been comparatively small on anational scale, livestock producers in thedairy and swine sector have demonstratedthat AgSTAR practices can reduce GHGemissions and achieve other pollutioncontrol benefits while increasing farmprofitability. These practices have been in-corporated into USDA’s broader technical,conservation, and cost-share programs.

Renewable Energy Systems and EnergyEfficiency Improvements Program

Under this program, USDA providesloan guarantees and grants to agriculturalproducers and rural small businesses topurchase renewable energy systems andimprove energy efficiency. Between 2002and 2006, the program helped finance 272renewable energy systems (including 11biodiesel and 7 ethanol refineries, 82anaerobic digesters, 121 wind projects, 17solar projects, and 4 geothermal projects)and 165 energy efficiency improvements.USDA estimates that these projects mayachieve energy savings amounting to 755billion Btus (6.6 million barrels) of oil andan estimated reduction in GHG emissionsof approximately 1 Tg CO2 Eq.

ForestryThe U.S. government supports efforts

to sequester carbon in both forests and

harvested wood products to minimize un-intended carbon emissions from forests byreducing the catastrophic risk of wildfires.

Healthy Forest InitiativeToday, between 40.5 and 81 million ha

(100 and 200 million ac) of federal landsare at risk of catastrophic wildfires, in largepart due to significant changes in forestand woodland structure that have oc-curred in the last century. Innovative,large-scale management is needed to re-store at-risk ecosystems to healthy, resilientconditions. This threat to forestsprompted the development of the Presi-dent’s Healthy Forest Initiative, which nowincludes the National Fire Plan59 and thejoint federal–state 10-year ComprehensiveStrategy Implementation Plan.60 The goalof these efforts is to increase biomass andwood fiber utilization as an integral com-ponent of restoring the Nation’s preciousforests, woodlands, and rangelands. Coor-dination among DOI, USDA, and DOE isimportant to the success of these initia-tives, as is working cooperatively withstates, tribes, private landowners, non-governmental organizations, and other in-terested parties and potential partners.These efforts are expected to lead to sub-stantial co-benefits in terms of reduced airpollution and better air quality, particu-larly with respect to smoke, particulatematter, and nitrogen oxides.

Forest Land Enhancement ProgramUSDA’s Forest Service administers the

Forest Land Enhancement Program61

(FLEP). Created as part of the Farm Secu-rity and Rural Investment Act of 2002, theprogram provides assistance to nonindus-trial private forest landowners for foreststewardship. Through FLEP, the ForestService, working with states, can promotecarbon sequestration with tree planting,forest stand improvements, and agro-forestry practices. Program enrollment infiscal year 2005 was just over 456,000 ha(1.1 million ac), and program-related car-bon sequestration is estimated at 0.2 TgCO2 Eq.

Under EQIP, NRCS also offers innova-tion grants to accelerate the development,transfer, and adoption of innovative tech-nologies and approaches, including thosewith GHG benefits. USDA awarded 37percent of its fiscal year 2005 ConservationInnovation Grants funding to energy-related proposals that addressed energyconservation or the production of renew-able fuels. USDA estimates that effortsunder EQIP could avoid 26.1 Tg CO2 Eq.by 2012.

Conservation Reserve ProgramThe Conservation Reserve Program56

(CRP) encourages farmers to convert envi-ronmentally sensitive acreage to nativegrasses, wildlife plantings, trees, restoredwetlands, filter strips, or riparian buffers.USDA’s Farm Service Agency (FSA) hasissued a new rule that explicitly allows theprivate sale of carbon credits for lands en-rolled in theCRP.FSAhas alsomodified theEnvironmental Benefits Index used to scoreand rank offers to enroll land in the CRP togive more points for installing vegetativecover that sequesters more carbon. Finally,FSA has announced it will target 500,000acres of continuous signup enrollment to-ward hardwood tree planting. In fiscal year2005, 50 Tg CO2 Eq. were sequestered onland enrolled in the CRP—an increase of 2Tg CO2 Eq. relative to 2001. Of this in-crease, 5 percent can be attributed to thepolicies and initiatives FSA adopted to in-crease sequestration. USDA estimates thesequestration attributable to these newpoli-cies and initiatives will offset U.S. GHGemissions by 3.1 Tg CO2 Eq. in 2012.

Conservation Security ProgramThe Conservation Security Program57

(CSP) is a voluntary program that pro-

48 U.S. CLIMATE ACTION REPORT—200648 U.S. CLIMATE ACTION REPORT—2006

56 See <http://www.fsa.usda.gov/dafp/cepd/crp.htm>.57 See <http://www.nrcs.usda.gov/Programs/csp/>.58 See <http://www.epa.gov/agstar/> and <http://www.

rurdev.usda.gov/rbs/farmbill/index.html>.59 See <http://www.fireplan.gov/reports/10-

YearStrategyFinal_Dec2006.pdf>.60 See <http://www.fireplan.gov/reports/11-23-en.pdf>.61 See <http://www.fs.fed.us/spf/coop/programs/ loa/flep.

shtml>.

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CHAPTER 4—POLICIES AND MEASURES 49

Waste ManagementThe U.S. government’s waste manage-

ment programs reduce municipal solidwaste and GHG emissions through energysavings, increased carbon sequestration,and avoided methane emissions fromlandfill gas––the largest contributor toU.S. anthropogenic methane emissions.

Landfill Methane Outreach ProgramThe Landfill Methane Outreach Pro-

gram62 (LMOP) reducesGHG emissions atlandfills by supporting the recovery and useof landfill gas for energy. Capturing andusing landfill gas reduces methane emis-sions directly and reduces CO2 emissionsby displacing the use of fossil fuels throughthe use of landfill gas as a source of energy.Since the 2002 CAR, LMOP continues topartner with landfill owners and operators,state energy and environmental agencies,utilities and other energy suppliers, corpo-rations, industry, and other stakeholders tolower the barriers to promote cost-effectivelandfill gas energy projects. LMOP focusesits efforts on smaller landfills not requiredto collect and combust their landfill gas, aswell as larger, regulated operations that arecombusting their gas but not using it as aclean energy source.

LMOP has developed a range of tech-nical resources and tools to help the land-fill gas industry overcome barriers toenergy project development, including fea-sibility analyses, project evaluation soft-ware, a database of more than 1,300candidate landfills across the country, aproject development handbook, commer-cial and industrial sector analyses, and eco-nomic analyses. Due to these efforts, thenumber of landfill gas energy projects hasgrown from fewer than 100 in the early1990s to more than 400 projects today.EPA estimates that LMOP reduced GHGemissions from landfills by about 14 TgCO2 Eq. in 2002, and projects reductionsof 24 Tg CO2 Eq. in 2012.

Stringent Landfill RulePromulgated under the Clean Air Act

in March 1996, the New Source Perform-ance Standards and Emissions Guidelines

(“Landfill Rule”) require large landfills tocapture and combust their landfill gasemissions. The implementation of the rulebegan at the state level in 1998. Recent dataon the rule’s impact indicate that increas-ing its stringency has significantly in-creased the number of landfills that mustcollect and combust their landfill gas. EPAestimates that methane reductions in 2002were 9 Tg CO2 Eq., and reductions for2012 may remain about the same.

WasteWiseWasteWise63 continues to encourage re-

cycling and source reduction. EPA is im-plementing a number of targeted effortswithin this program and is working withorganizations to reduce solid wastethrough voluntary waste reduction activi-ties. New efforts since the 2002 CARinclude a Coal Combustion Products Part-nership64 and a GreenScapes65 program,which promotes sustainable landscapingtechniques, such as increased use of com-post and recycled-content materials. EPAcontinues to promote product stewardship(promoting further waste reduction effortsthrough voluntary or negotiated agreementswith product manufacturers) and its Pay-As-You-Throw Initiative to provide informa-tion and education on community-based programs that provide cost incen-tives for residential waste reduction. In ad-dition to program implementation, EPA’sClimate andWaste program supports out-reach, technical assistance, and research ef-forts on the linkages between climatechange and waste management to comple-ment these activities. EPA estimated GHGemission reductions in 2002 were 10 TgCO2 Eq. EPA projects reductions could in-crease to 21 Tg CO2 Eq. in 2012.

Federal Woody Biomass Working GroupChartered under the Biomass R&D

Board, the Federal Woody Biomass Work-ing Group is working on alternative dis-posal options for woody biomass resultingfrom catastrophic events (hurricanes,floods, fire, tornadoes, volcanic eruption,etc).Hurricane Katrina, for example, dam-aged an estimated 19 billion board feet of

timber, much of which will be burned ordisposed of in a landfill. The WorkingGroup seeks to use much of this disastermaterial for bio-based products andbioenergy applications, thus reducingGHG emissions. As bioenergy and woodproduct markets develop, this effort mayserve as an alternative to green waste dis-posal in landfills.

Cross-SectoralPublic–private partnerships are an im-

portant component of efforts to meet thePresident’s goal of reducingGHG intensity.Several of these cross-sectoral partnershipprograms are described below, withestimates of expected reductions thatwould be reported by participants. Theestimated reductions for some of these pro-grams have not been included in the scor-ing of mitigation impacts in this chapter,due to the potential for double counting.

Climate VISIONClimate VISION66—Voluntary Innova-

tive Sector Initiatives: OpportunitiesNow—is a new public–private partnershipinitiative launched by the federal govern-ment in 2003 for the industrial sector toboost its contribution to the President’sgoal of reducing GHG intensity. Businessassociations representing 14 energy-intensive industry sectors and The Busi-ness Roundtable have become programpartners with the federal government andhave issued letters of intent to meet spe-cific targets for reducing GHG emissionsintensity. These Climate VISION partnersinclude some of the largest companies inAmerica and represent a broad range ofindustry sectors: oil and gas refining,electricity generation, coal and mineralproduction and mining, automobilemanufacturing, cement, iron and steel,magnesium, aluminum, chemicals, semi-conductors, railroads, and forestry prod-ucts. Climate VISION works with its

CHAPTER 4—POLICIES AND MEASURES 49

62 See <http://www.epa.gov/lmop/>.63 See <http://www.epa.gov/wastewise/>.64 See <http://www.epa.gov/epaoswer/osw/conserve/

c2p2/>.65 See <http://www.epa.gov/greenscapes/>.66 See <http://www.climatevision.gov/>.

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2006 reporting year.The new guidelines areintended to strengthen the program by en-couraging comprehensive, entity-wide re-porting of emissions and emissionreductions, including sequestration, andby increasing the measurement accuracy,reliability, and verifiability of reports.

Climate LeadersEPA launched the Climate Leaders pro-

gram69 in 2002 as part of the President’s cli-mate change strategy to challenge individualcompanies to demonstrate leadership bysetting aggressive GHG reduction goals fortheir sectors. Companies that join the part-nership receive a number of benefits, suchas understanding andmanaging their emis-sions, increased identification of cost-effec-tive reduction opportunities, and strategicpreparation for the future as the climatechange policy discussion evolves. ClimateLeader partners set corporate-wide GHGreduction goals and conduct annual inven-tories of their emissions to measureprogress. The program has expanded fromits original 12Charter Partners tomore than100 partners across a number of industrialsectors fromheavymanufacturing to bank-ing and retail.The totalU.S.GHGemissionsof these partners equal nearly 10 percent oftotal U.S. emissions.

Clean Energy-Environment StatePartnership Program

EPA’s Clean Energy-Environment StatePartnership Program70 motivates GHGemission reductions as one of several ben-efits states derive from implementing acomprehensive suite of cost-effective cleanenergy policies and programs.(U.S. EPA2006a). (See the following NonfederalPolicies and Measures section for morespecific information on a variety of stateprograms.)

Under the Partnership Program, the 15member states work across their relevantagencies to develop and implement state-specific action plans, applying existing andnew policies and programs to promote en-ergy efficiency, clean distributed genera-tion, renewable energy, and other cleanenergy strategies that can provide benefits

involving GHGs, air quality, public health,energy diversity, and economic growth. Tocommunicate these benefits to other inter-ested state governments, EPA providestechnical support and actively shares withthem effective strategies and lessonslearned. EPA projects that in 2012, thisprogram could contribute 7.3 Tg CO2 Eq.in GHG reductions.

Federal Energy Management ProgramThe federal government is the largest

single user of energy in the Nation. TheFederal Energy Management Program71

(FEMP) reduces energy use in federalbuildings, facilities, and operations by ad-vancing energy efficiency andwater conser-vation, promoting the use of renewableenergy, and managing the utility choices offederal agencies. The program accom-plishes its mission by leveraging both fed-eral and private resources to provide federalagencies the technical and financial assis-tance they need to achieve their goals.As of2005, FEMPhad assisted federal agencies inreducing the energy intensity of their build-ings by 30 percent using 1985 as a baseline.DOE estimates that realizing FEMP’s goalof providing financing and technical assis-tance to federal agencies to further the useof cost-effective energy efficiency and re-newable energy could result in energy sav-ings of nearly 2.2 Tg CO2 Eq. in 2012.

NONFEDERAL POLICIES ANDMEASURES

In addition to the national effort, stateand local governments and private andnonprofit organizations are taking a varietyof steps that contribute to the overallGHG intensity reduction goal. These non-federal climate change activities can be an

partners to standardize measuring andmonitoring; find cost-effective solutions toreduce energy use and GHG emissions;accelerate R&D; and explore cross-sectorefficiency gains to reduce emissions. Basedsolely on the specific numeric targets intheir letters of commitment, ClimateVISION partners are estimated conserva-tively to reduce emissions by about 90 TgCO2 Eq. in 2012, including the reductionsfrom the non-CO2 industry programs dis-cussed previously.67 This estimate indicatesthe scale of GHG reductions from thisprogram; however, there may be an over-lap with other programs and a potentialfor double counting.

Voluntary Reporting of GreenhouseGases Under 1605(b)

Authorized under Section 1605(b) ofthe Energy Policy Act of 1992, this volun-tary program68 provides a means for utili-ties, industries, and other entities toestablish a public record of their emissionsand the results of voluntary measures toreduce, avoid, or sequester GHG emis-sions. Currently, about 230 U.S. compa-nies and other organizations file reports.The information collected through theprogram is made available through a pub-lic use database that supports educationalexchanges, informs public policy develop-ment, and encourages public recognitionof initiatives to reduce GHGs.

Each year, a report is published high-lighting the results of reported activities toreduce emissions. For the 2004 reportingyear, 226 U.S. companies and other organ-izations reported that they had undertaken2,154 projects to reduce or sequesterGHGs.The reportedGHGemission reductions forthe projects reported included 277 Tg CO2Eq. of direct reductions, 92 Tg CO2 Eq. ofindirect reductions, 7 Tg CO2 Eq. of reduc-tions from carbon sequestration, and 14 TgCO2 Eq. of unspecified reductions. Theseestimates of reductions may overlap withother programs and may result in a poten-tial for double counting.

New general and technical guidelines forreporting will be effective in 2007 for the

50 U.S. CLIMATE ACTION REPORT—200650 U.S. CLIMATE ACTION REPORT—2006

67 Projections for partnerships in the aluminum,semiconductor, and magnesium sectors are provided inthe Industry: Non-CO2 section of this chapter underVoluntary Aluminum Industry Partnership andEnvironmental Stewardship, and are not doublecounted in the overall projections.

68 See <http://www.eia.doe.gov/oiaf/1605/frntvrgg.html>.69 See <http://www.epa.gov/climateleaders/>.70 See <http://www.epa.gov/cleanenergy/stateandlocal/

partnership.htm>.71 See <http://www1.eere.energy.gov/femp/>.

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CHAPTER 4—POLICIES AND MEASURES 51CHAPTER 4—POLICIES AND MEASURES 51

important factor in the success of emissionreduction policies.

State InitiativesMany state governments have made

clean energy, energy efficiency, and climatechange initiatives high priorities, recogniz-ing their significant economic and envi-ronmental benefits and widespread publicsupport. These states are implementing awide range of policies and measuresto achieve the multiple benefits of mini-mizing their GHG emissions, encouragingthe development of cleaner energysources, and achieving air quality goals.Appreciating the value of collaboration,states are working across agencies,regionally, and with public- and private-sector stakeholders to develop the mostcost-effective mitigation and clean energystrategies. Table 4-1 illustrates the range ofactions that states are taking on climatechange, as of 2006.

Regional InitiativesAppreciating the economic value of in-

tegrating their strategies,many states havejoined to launch regional initiatives to re-duce GHG emissions and promote cleanenergy. Current examples include:West Coast Governors’ Global Warming

Initiative72—Created by the governors ofCalifornia,Oregon, andWashington to re-duce GHG emissions.Regional Greenhouse Gas Initiative73—

Made up of mid-Atlantic and northeasternstates to establish a regional CO2 emissionscap-and-trade program for electric powergenerators.Western Governors’ Association Clean

and Diversified Energy Initiative74—Eigh-teen states working together to meet thegoal of clean and diversified energy by de-veloping 30,000 MW of clean electricity by2015 and increasing energy efficiency by20 percent by 2020.

Powering the Plains75—Five states col-laborating on energy and agriculture initia-tives that address climate change whilepromoting regional economic develop-ment.

Carbon Sequestration Regional Partner-ships76—Seven partnerships that represent40 states, 300 organizations, four Canadianprovinces, and three Indian nations thatwork to determine the most suitable tech-nologies, regulations, and infrastructureneeds for carbon capture and storage tech-nology across the United States.U.S. Mayors Climate Protection Agree-

ment77—Agreement by 376 U.S.mayors toreduce GHGs by 7 percent below 1990 lev-els by 2012.

Climate Action PlansSome states have developed compre-

hensive climate change action plansthrough stakeholder processes that lay outcost-effective strategies for reducing theirGHG emissions. Following are somerecent examples.California: Issued April 2006—Devel-

oped by the Governor’s Climate ActionTeam, the report identifies 46 specificstrategies California can use to meet thegovernor’s near-term target of 1990 levelsby 2020 (i.e., a 30 percent reduction of theBusiness As Usual baseline). The reportalso includes nine key policy recommen-dations to help ensure the targets are met,along with a preliminary macroeconomicanalysis of the recommended strategiesthat suggests net economic and employ-ment benefits to the state.Connecticut: Issued February 2005—

Developed through theGovernor’s SteeringCommittee on Climate Change, the actionplan is comprised of 55 measures that areestimated to reduce GHG emissions by 9Tg CO2 Eq. in 2010 and 19 Tg CO2 Eq. in2020. The plan is designed to help achievethe regional goals set out by the New Eng-land Governors/Eastern Canadian Pre-miers 2001 Climate Change Action Plan(NEG/ECP 2001).Massachusetts: IssuedMay 2004—Moti-

vated by the joint goals of reducing GHGemissions and improving energy efficiency,the plan is a comprehensive set of near- andmid-term actions that help the environ-ment, energy system, and economy of theCommonwealth. Consistent with the

NEG/ECP 2001 Climate Change ActionPlan, Massachusetts’ goals are to reduceGHG emissions to 1990 levels by 2010, re-duce emissions to 10 percent below 1990levels in 2020, and eliminate any dangerousthreat to climate in the long run.New Mexico: Issued December 2006—

Developed by the Governor’s ClimateChange Advisory Group, the report in-cludes policy recommendations for reduc-ing New Mexico’s total GHG emissions to2000 levels by 2012, to 10 percent below2000 levels by 2020, and to 75 percent by2050. The report lays out 69 policy recom-mendations that address energy supply anddemand, transportation and land use, agri-culture and forestry, and emissions report-ing.Oregon: IssuedDecember 2004—Recom-

mendedby theGovernor’sAdvisoryGroup,the Oregon plan put primary emphasis onreal,measurable,meaningful reductions thatalso were cost-effective and created invest-ment and entrepreneurial opportunities. Itsgoals are to stop growth of GHG emissionsin 2010, reduce GHG emissions to 10 per-cent below 1990 levels by 2020, and stabilizeemissions to at least 75 percent below 1990levels by 2050. This action plan comple-ments the agenda of the West Coast Gover-nors’ GlobalWarming Initiative.

Lead by Example ProgramsMany state governments are implement-

ing programs and policies that are loweringGHGswithin their own facilities and oper-ations. States are leveraging their purchas-ing power, their ability to control significantenergy-using resources to test programs,and the often highly visible profile of publicfacilities to demonstrate clean energy tech-nologies and approaches that save energy

72 See <http://www.climatechange.ca.gov/westcoast/index.html>.

73 See <http://www.rggi.org/>.74 See <http://www.westgov.org/wga/initiatives/cdeac/

index.htm>.75 See <http://www.gpisd.net/resource.html?Id=61>.76 See <http://www.fe.doe.gov/programs/sequestration/

partnerships/index.html>.77 See <http://www.ci.seattle.wa.us/mayor/climate/

default.htm#what>.

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52 U.S. CLIMATE ACTION REPORT—200652 U.S. CLIMATE ACTION REPORT—2006

TABLE 4-1 State Actions on Climate Change

Several states are implementing a wide range of policies and measures to achieve the multiple benefits of minimizing their GHG emissions,encouraging the development of cleaner energy sources, and achieving air quality goals.

NUMBERTYPE OF ACTION PARTICIPATING STATES OF STATES

Individual State Initiatives

GHG Emission Inventories Alabama, Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois, 42Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan,Minnesota, Mississippi, Missouri, Montana, Nevada, New Hampshire, New Jersey, New Mexico,New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, Tennessee,Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin

State Lead by Example Alabama, Arizona, California, Colorado, Connecticut, Delaware, Georgia, Hawaii, Illinois, Indiana, 35Clean Energy Programs Iowa, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri,

Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio,Oregon, Pennsylvania, Rhode Island, Texas, Vermont, Washington, West Virginia, Wisconsin

Climate Action Plans Alabama, Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Iowa, Kentucky, 29Maine, Maryland, Massachusetts, Minnesota, Missouri, Montana, New Hampshire, New Jersey,New Mexico, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Tennessee, Utah,Vermont, Washington, Wisconsin

Renewable Energy Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Iowa, Maine, Maryland, 23Portfolio Standards Massachusetts, Minnesota, Montana, Nevada, New Jersey, New Mexico, New York, Pennsylvania,

Rhode Island, Texas, Vermont, Washington, Wisconsin

Energy Efficiency Public Arizona, California, Connecticut, Illinois, Maine, Massachusetts, Michigan, Montana, New Hampshire, 18Benefits Funds New Jersey, New York, Ohio, Oregon, Pennsylvania, Rhode Island, Texas, Vermont, Wisconsin

Renewable Energy Public Arizona, California, Connecticut, Delaware, Illinois, Massachusetts, Minnesota, Montana, 15Benefits Funds New Jersey, New York, Ohio, Oregon, Pennsylvania, Rhode Island, Wisconsin

Climate Advisory Boards Alaska, Arizona, California, Connecticut, Illinois, Montana, New Mexico, New York, 12North Carolina, Oregon, Utah, Vermont

GHG Emission Targets Arizona, California, Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, 12New Mexico, New York, Oregon, Rhode Island, Vermont

Vehicle GHG Emission California, Connecticut, Maine, Massachusetts, New Jersey, New York, Oregon, 11Standards Pennsylvania, Rhode Island, Vermont, Washington

Energy Efficiency Portfolio California, Colorado, Connecticut, Hawaii, Illinois, Nevada, New Jersey, 10Standards Pennsylvania, Texas, Vermont

Mandatory CO2 Reporting Connecticut, Maine, Massachusetts, New Jersey, Wisconsin 5for Stationary Sources

Power Plant CO2 Massachusetts, New Hampshire, Oregon, Washington 4Emission Cap

GHG Emission Registries California, New Hampshire, Wisconsin 3

Baseload Power GHG California 1Performance Standard

Statewide GHG Emission Cap California 1

Regional Initiatives

Western Governors’ Alaska, Arizona, California, Colorado, Hawaii, Idaho, Kansas, Montana, Nebraska, 18Association Clean and Nevada, New Mexico, North Dakota, Oregon, South Dakota, Texas, Utah, Washington, WyomingDiversified Energy Initiative

Eastern Climate Registry Connecticut, Delaware, Maine, Massachusetts, New Hampshire, New Jersey, New York, 10Pennsylvania, Rhode Island, Vermont

Midwest GHG Registry Illinois, Indiana, Iowa, Michigan, Minnesota, Missouri, Ohio, Wisconsin 8

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CHAPTER 4—POLICIES AND MEASURES 53CHAPTER 4—POLICIES AND MEASURES 53

equivalent to removing 32,500 cars fromthe road for one year.

Local Initiatives

Cities for Climate Protection CampaignIn addition to contributing to their state

GHG initiatives, more than 150 U.S. citiesand counties representing more than 50million people are participating in the Inter-national Council for Local EnvironmentalInitiatives’ Cities for Climate ProtectionCampaign.80 The program offers trainingand technical assistance to cities, towns, andcounties for projects focused on reducingGHG emissions. Actions implemented byparticipating cities are reducing emissionsby 20 Tg CO2 Eq. annually.

Heat Island Reduction InitiativeThrough its Heat Island Reduction Ini-

tiative (HIRI),81 EPAhas beenworkingwithstate and local officials, researchers, and in-dustry and nonprofit groups to reducesummertime temperatures by promotinguse of ENERGY STAR cool-roof productsand increasing vegetative cover. HIRI hasbeen hosting quarterly forums on heat is-land research and implementation activi-ties, as well as supporting heat island policyworkshops involving eight U.S. cities.

Private-Sector and NGO InitiativesSeveral innovative efforts of private-

sector and nonprofit initiatives demon-strate the impact that organizations can

have on climate change by making a com-mitment to a healthier environment.

Climate SaversClimate Savers82 is an initiative organ-

ized by the World Wildlife Fund in 2000 tomobilize companies to cut CO2 emissions.Collins, Sagawa and Lafarge have joinedJohnson & Johnson, IBM, Nike, and Po-laroid in participating. Each company haspledged to reduce its worldwide GHGemissions by 7 percent below 1990 levels by2010. The program includes an independ-ent verification process.

Ceres’ Investor Network on Climate RiskIn 2002, Ceres launched the Sustainable

Governance Project to raise global climatechange as a significant risk to the long-termvalue of corporations and the viability offinancial assets. In November 2003, Ceresorganized the Institutional Investor SummitonClimateRisk and established the InvestorNetwork on Climate Risk (INCR).83

Through INCR, Ceres has mobilized someof theNation’s largest institutional investorsto focus on companies’ climate risk. INCR

and reduce GHGs. This can take manyforms: adopting energy efficiency savingsgoals for buildings; procuring energy-efficient equipment and green power forpublic facilities; implementing“green fleets”programs, purchasing alternative fuel vehi-cles, and reducing vehicle trips; and estab-lishing financing mechanisms, providingtechnical assistance, and training staff tohelp ensure energy-saving goals areachieved. Currently, 35 states have someform of Lead by Example program. Somesuccesses of these state efforts follow.New Hampshire’s Building Energy Con-

servation Initiative78—Reducing energycosts in 10 state buildings through energyretrofits and building upgrades. Uses a“paid from savings”procedure, also knownas Performance Contracting, in which en-ergy savings pay for building retrofits andupgrades.Overall avoided energy costs nowexceed $200,000 annually.New Jersey’s Green Power Purchasing Pro-

gram79—Helping support the state goal ofreducing GHGs to 3.5 percent below 1990levels by 2005, in part, through an innova-tive aggregated green power purchasingprogram that supplies 500 million kWh ofgreen power to more than 200 facilitiesstatewide. The program has expandedgreen energy markets in the state and hasincreased private-sector green power pur-chases. The reduced CO2 emissions are

78 See <http://www.nh.gov/oep/programs/energy/beci.htm>.

79 See <http://www.state.nj.us/dep/dsr/bscit/GreenPower.pdf>.

80 See <http://www.iclei.org/index.php?id=800>.81 See <http://www.epa.gov/heatisland/index.html>.82 See <http://www.worldwildlife.org/climate/projects/

climateSavers.cfm>.83 See <http://www.ceres.org/>.

NUMBERTYPE OF ACTION PARTICIPATING STATES OF STATES

Regional Initiatives (Continued)

Regional Greenhouse Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, 8Gas Initiative New York, Vermont (Pennsylvania and Rhode Island are observers)

New England Governors: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, Vermont 6Climate Change Action Plan

Powering the Plains Iowa, Minnesota, North Dakota, South Dakota, Wisconsin 5

West Coast Governor’s California, Oregon, Washington 3Global Warming Initiative

Southwest Climate Change Arizona, New Mexico 2Initiative

Note: This table includes completed actions. Other states may have initiatives in progress or being considered.

TABLE 4-1 (Continued) State Actions on Climate Change

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change. Membership has grown to include38 corporations,27 of whomhave set publicGHG reduction targets.

PowerSwitch!In February 2004,Austin Energy (Texas),

BurlingtonElectricDepartment (Vermont),Florida Power and Light (Florida), Sacra-mento Municipal Utility District (Califor-nia), and Waverley Light and Power (Iowa)joined the World Wildlife Fund’s Power-Switch! campaign.87 Each of the companiesagreed to call for binding limits on CO2emissions from the power sector. In addi-tion, these companies are voluntarily reduc-ing GHG emissions by committing toachieve at least one of three PowerSwitch!goals by 2020: (1) using renewable energyto generate 20 percent of power sold, (2) in-creasing energy efficiency by 15 percent, or(3) phasing out the least efficient half of en-ergy generation (or production) from coal.

Climate RESOLVESponsored by The Business Roundtable,

Climate RESOLVE88 seeks to encourage100 percent of theRoundtablemembershipto undertake voluntary actions to controlGHG emissions.Roundtable CEOs believethat motivated, forward-looking compa-nies working in partnership with govern-ment can findmany practical, cost-effectiveopportunities to improve energy efficiencyand reduce, avoid, offset, or sequester GHGemissions—without the serious economicdisruption caused by mandatory GHGcontrols. Approximately 70 percent ofRoundtable companies from every sectorof the economy have signed up for ClimateRESOLVE.

LONG-TERMMEASURESIn addition to implementing policies

and measures that reduce emissions inten-sity in the near term, the U.S. governmentis committed to investing in relevant R&Dover the long term. These R&D efforts arethe key to discovering breakthrough tech-nologies that are needed for emission reduc-tions beyond what is achievable at present.The long-term component of U.S. climatechange strategy—discussed in detail inChapter 8, Research and Systematic Obser-

vation—includes the following programs:CarbonSequestrationRegionalPartnerships,89

GenerationIVNuclearEnergySystemsInitia-tive,90NuclearHydrogenInitiative,91AdvancedFuel Cycle Initiative,92 Global Nuclear EnergyPartnership,93CleanAutomotiveTechnology,94

Hydrogen Technology,95 and High-Tempera-ture Superconductivity.96

INTERNATIONALMEASURESIn addition to implementing a broad

portfolio of domestic programs, the UnitedStates has committed to working globallywith developed anddeveloping countries onclimate change issues. Because climatechange is a global concern, international co-operation is necessary to make discernibleprogress. The United States has signed anumber of bilateral agreements and partic-ipates in numerous multilateral efforts, in-cluding theAsia-Pacific Partnership and theMethane to Markets Partnership. Severalfederal agencies, including DOE, EPA, theU.S.Agency for InternationalDevelopment,and USDA, are engaged in technologytransfer programs with developing andtransitional countries to provide assistancein limiting GHG emissions. The interna-tional technology development collabora-tions are described inmore detail inChapter8, Research and Systematic Observation,and those on technology transfer inChapter7,Financial Resources andTransfer of Tech-nology.

collaborates with investors and the financialcommunity through briefings, meetings,and publication and distribution of reports.Ceres also convenes high-emitting compa-nies in dialogueswith investors and environ-mental groups, and coordinates the globalwarming shareholder campaign.

Green Power Market Development GroupThe Green Power Market Development

Group84 is a collaboration between theWorldResources Institute and 13 participat-ing companies. NatureWorks, LLC, Star-bucks, and Staples recently joined originalmembers Alcoa, Delphi, Dow, DuPont,FedEx,Kinko’s,GeneralMotors, IBM, Inter-face, Johnson& Johnson, andPitneyBowes.The group’s goal is to develop corporatemarkets for 1,000 MW of new, cost-com-petitive green power by 2010.The groupde-velops and publishes an ongoing series ofwhite papers that focus on market develop-ment issues, including the design of innova-tive green power purchasing vehicles.

Chicago Climate ExchangeTheChicagoClimate Exchange (CCX)85

includes more than 25 member companiesthat agreed to reduce their GHG emissionsby 1 percent per year from 2003 through2006. Companies achieve this reductiontarget through internal reductions, emis-sions tradingwith othermembers, purchas-ing GHG offsets from qualifying projects,or a combination of these approaches.Con-tinuous electronic trading of GHG emis-sion allowances and offsets began onDecember 12, 2003. The tradable CarbonFinancial Instruments employed in CCXare Exchange Allowances and ExchangeOffsets. ExchangeAllowances are issued onthe basis of forest carbon sequestration andreductions in electricity use. Exchange Off-sets are generated by qualifying mitigationprojects and are registeredwithCCXby Ex-change Participant Members.

Business Environmental LeadershipCouncil

ThePewCenter’s Business Environmen-tal Leadership Council86 is a group ofleading companies worldwide that are re-sponding to the challenges posed by climate

54 U.S. CLIMATE ACTION REPORT—200654 U.S. CLIMATE ACTION REPORT—2006

84 See <http://www.thegreenpowergroup.org/us.cfm>.85 See <http://www.chicagoclimatex.com/>.86 See <http://pewclimate.org/companies_leading_the_

way_belc/>.87 See <http://powerswitch.panda.org/news_publications/

news_detail.cfm?uxNewsID=13042>.88 See <http://www.businessroundtable.org/TaskForces/

TaskForce/issue.aspx?qs=6EC5BF159FF49514481138A6DF6185 1159169FEB56A3FB0AE>.

89 See <http://www.fe.doe.gov/programs/sequestration/partnerships/index.html>.

90 See <http://gen-iv.ne.doe.gov/ andhttp://www.ne.doe.gov/infosheets/genIV.pdf>.

91 See <http://www.ne.doe.gov/infosheets/hydrogen.pdf>.92 See <http://www.ne.doe.gov/infosheets/afci.pdf>.93 See <http://www.gnep.energy.gov/>.94 See <http://www.epa.gov/otaq/technology/>.95 See <http://www.eere.energy.gov/hydrogenand

fuelcells/>.96 See <http://www.oe.energy.gov/randd/supercon.htm>.

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CHAPTER 4—POLICIES AND MEASURES 55CHAPTER 4—POLICIES AND MEASURES 55

TABLE 4-2 Summary of U.S. Actions to Reduce Greenhouse Gas Emissions (Tg CO2 Eq.)1

Policy or Objective and/or Activity Affected GHG Type of Status Implementing Estimated MitigationMeasure Affected Instrument Entities Impact for1

2002 2012 2020

Energy: Commercial and Residential2

Commercial Building Realizes energy-saving opportunities CO2 Research; Implemented DOE NA 0.5 3.1Integration (includes provided by whole-building-system- RegulatoryRebuild America) design approach during new

construction and major renovationof existing commercial buildings.

Emerging Buildings Conducts R&D on building components CO2 Information; Implemented DOE 0.0 4.4 25.4Technologies* and design tools, and issues standards Research

and test procedures for a variety ofappliances and equipment.

ENERGY STAR for the Promotes the improvement of energy CO2 Voluntary Implemented EPA 35.2 64.2 93.5Commercial Market performance in commercial buildings. Agreement

ENERGY STAR for the Promotes the improvement of energy CO2 Voluntary; Implemented EPA 0.2 7.3 44.0Residential Market performance in residential buildings Outreach

beyond the labeling of products.

ENERGY STAR- Provides labels to distinguish energy- CO2 Voluntary; Implemented EPA/DOE 38.1 102.7 148.5Labeled Products efficient products in the marketplace. Outreach

Residential Conducts analyses of and develops, CO2 Regulatory Implemented DOE NA 5.1 17.3Appliance Standards reviews, and updates efficiency

standards for most major householdappliances and major commercialbuilding technologies and equipment.

Residential Building Enables industry to adopt systems CO2 Voluntary; Implemented DOE NA 3.8 9.5Integration engineering approaches to the design Research;

and construction of new housing by Educationfunding, developing, demonstrating,and deploying housing that integratesenergy efficiency technologies andpractices.

State Energy Strengthens and supports the CO2 Economic; Implemented DOE 0.0 2.5 2.6Programs capabilities of states to promote energy Information

efficiency and to adopt renewableenergy technologies, helping the Nationachieve a stronger economy, a cleanerenvironment, and greater energy security.

Weatherization Enables low-income families to CO2 Economic; Implemented DOE 1.1 3.9 6.0Assistance permanently reduce their energy bills Deployment

by making their homes more energyefficient.

1 Estimates of mitigation impacts of programs are provided by the agency responsible for each individual program, based on the agency’s experience andassumptions related to the implementation of voluntary programs. These estimates may include assumptions about the continued or increased participationof partners, development and deployment goals, and/or whether the necessary commercialization or significant market penetration is achieved.

2 Estimates of mitigation impacts for individual policies or measures should not be aggregated to the sectoral level, due to possible synergies and interactionsamong policies and measures that might result in double counting.

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TABLE 4-2 (Continued) Summary of U.S. Actions to Reduce Greenhouse Gas Emissions (Tg CO2 Eq.)1

Policy or Objective and/or Activity Affected GHG Type of Status Implementing Estimated MitigationMeasure Affected Instrument Entities Impact for1

2002 2012 2020

Energy: Industrial2

Best Practices Offers industry the tools to improve All Voluntary; Implemented; DOE 8.1 16.9 49.1Program plant energy efficiency, enhance Information Undergoing

environmental performance, and Revisionincrease productivity.

ENERGY STAR for Enables industrial companies to CO2 Voluntary Implemented EPA 13.6 21.3 36.7Industry evaluate and cost-effectively reduce Agreement

energy use.

Industrial Assesses and provides recommen- All Information; Implemented; DOE 8.4 17.6 51.3Assessment dations to manufacturers by identifying Research UndergoingCenters opportunities to improve productivity, Revision

reduce waste, and save energy.

Industrial Addresses the critical technology All Information; Implemented; DOE 8.4 17.6 51.3Technologies challenges partners face for Research Undergoing

developing materials and production Revisionprocesses.

Energy: Supply2

Carbon Develops new technologies for CO2 Research Implemented DOE 0.0 30.3 34.0Sequestration* addressing cost-effective manage-

ment of CO2 emissions from theproduction and use of fossil fuels.

Clean Energy Removes market barriers to increased CO2 Voluntary; Implemented EPA 0.7 29.3 73.3Initiative; Green penetration of cleaner, more Education;Power Partnership; efficient energy supply. TechnicalCombined Heat and AssistancePower Partnership

Distributed Energy Focuses on technology development All Information; Implemented DOE 12.1 23.8 57.2Resources and the elimination of regulatory and Research;

institutional barriers to the use of Education;distributed energy resources. Regulatory

Renewable Energy Develops clean, competitive power All Research Implemented DOE NA 5.2 153.5Commercialization: technologies using renewableWind; Solar; resources.Geothermal; Biomass

Transportation2

Aircraft Fuel Improves aircraft/engine technology CO2 Technical; Implemented DOT NA NA NAEfficiency and operational procedures, and Research

enhances the airspace transportationsystem to reduce aviation’s contributionto CO2 emissions.

Biofuels and Fosters research on and development of All Information; Implemented DOE 0.0 0.6 5.9Biorefinery Systems advanced technologies that will trans- Research

form the Nation’s domestic biomassresources into affordable biofuels andhigh-value bioproducts.

56 U.S. CLIMATE ACTION REPORT—200656 U.S. CLIMATE ACTION REPORT—2006

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TABLE 4-2 (Continued) Summary of U.S. Actions to Reduce Greenhouse Gas Emissions (Tg CO2 Eq.)1

Policy or Objective and/or Activity Affected GHG Type of Status Implementing Estimated MitigationMeasure Affected Instrument Entities Impact for1

2002 2012 2020

Congestion Mitigation Provides states with funds to reduce CO2 Voluntary Implemented DOT NA NA NAand Air Quality congestion and improve air quality AgreementImprovement Program through transportation control

measures and other strategies.

Corporate Average Raises the fuel economy standard CO2 Regulatory Implemented DOT 0.0 41.8 76.7Fuel Economy for minivans, pickup trucks, SUVs, and

other light trucks from the current 8.8 kpl(20.7 mpg) to 9.4 kpl (22.2 mpg) by 2007.

FreedomCAR and Advances high-risk research needed CO2 Research Implemented DOE 0.0 11.5 72.0Fuel Partnership to develop the necessary technologies,and Vehicle such as fuel cells and advanced hybridTechnologies propulsion systems, to provide a fullProgram (includes range of affordable cars and lightClean Cities) trucks that are free of foreign oil and

harmful emissions—and that do notsacrifice freedom of mobility andfreedom of vehicle choice.

Renewable Fuel Implements the Energy Policy Act 2005 CO2 Regulatory New; Being EPA NA NA NAStandard requirement to increase the amount of Implemented

renewable fuel used in transportationto 7.5 billion gallons by 2012.

SmartWay Transport Accelerates development of fuel- CO2 Voluntary Implemented EPA 7.7 33.0 43.0Partnership savingtechnology and practices in Agreement;

transport and freight operations. TechnicalAssistance;Information;Education;Outreach

Industry (Non-CO2)2

Coalbed Methane Reduces methane emissions from U.S. CH4 Information; Implemented EPA 6.2 10.6 12.1Outreach Program coal mining operations through cost- Education;

effective means. Outreach

Environmental Limits emissions of HFCs, PFCs, High Voluntary Implemented EPA 4.8 35.6 54.3Stewardship Initiative and SF6 in industrial applications. GWP Agreement

HFC-23 Partnership Encourages reduction of HFC-23 HFC-23 Voluntary Implemented EPA 16.5 16.5 15.4emissions through cost-effective Agreementpractices and technologies.

Mobile Air Identifies near-term opportunities to CO2, Voluntary; Implemented EPA 0.0 5.5 24.5Conditioning Climate improve the environmental perfor- HFC-134a ResearchProtection mance of mobile air conditioners, andPartnership promotes cost-effective designs and

improved service procedures tominimize emissions from mobile airconditioning systems.

Natural Gas Reduces methane emissions from CH4 Voluntary Implemented EPA 20.2 30.8 46.9STAR Program U.S. natural gas systems through the Agreement

widespread adoption of industry bestmanagement practices.

CHAPTER 4—POLICIES AND MEASURES 57CHAPTER 4—POLICIES AND MEASURES 57

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TABLE 4-2 (Continued) Summary of U.S. Actions to Reduce Greenhouse Gas Emissions (Tg CO2 Eq.)1

Policy or Objective and/or Activity Affected GHG Type of Status Implementing Estimated MitigationMeasure Affected Instrument Entities Impact for1

2002 2012 2020

58 U.S. CLIMATE ACTION REPORT—200658 U.S. CLIMATE ACTION REPORT—2006

Significant New Facilitates smooth transition away from High Regulatory; Implemented EPA 26.0 149.6 222.9Alternatives Program ozone-depleting chemicals in industrial GWP Information

and consumer sectors.

Voluntary Aluminum Encourages reduction of CF4 and PFCs Voluntary Implemented EPA 6.6 10.3 10.3Industry Partnership C2F6 where technically feasible and Agreement

cost-effective.

Voluntary Code of Minimizes nonfire emissions of HFCs HFCs, Voluntary Implemented EPA NA NA NAPractice for HFC & and PFCs used as fire-suppression PFCs AgreementPFC Fire Protection alternatives, and protects people andAgents property from the threat of fire through

the use of proven, effective productsand systems.

Agriculture2, 3

AgSTAR Promotes practices to reduce GHG CH4 Information; Implemented EPA/USDA NA NA NAemissions at U.S. farms. Education;

Outreach

Environmental Quality Under EQIP, NRCS offers innovation All Partnerships/ Implemented USDA 0.0 26.1 26.1Incentives Program; grants to livestock producers and FinancialConservation owners of working farmlands to AssistanceInnovation Grants accelerate the development, transfer,

and adoption of innovative technologiesand approaches, including those thatdeliver GHG benefits and improve thequality of nutrient management systems.

Conservation Encourages farmers to convert highly CO2 Technical/ Implemented USDA 0.0 3.1 7.8Reserve Program erodible cropland or other environment- Financial

ally sensitive acreage to native grasses, Assistancewildlife plantings, trees, filter strips, andriparian buffers.

Conservation Provides financial and technical CO2, Technical/ Implemented USDA NA NA NASecurity Program assistance to promote conservation CH4 Financial

on working cropland, pasture, and Assistancerange land, as well as forested landthat is an incidental part of an agricultureoperation.

Commodity Encourages bioenergy production CO2 Economic Implemented USDA NA NA NACredit Corporation through economic incentives toBioenergy Program** commodity producers.

Rural Development Provides economic incentives to CO2 Economic Implemented USDA 0.0 1.2 1.2Renewable Energy commodity producers to installPrograms*** renewable energy systems.

Forestry2

Forest Land Provides assistance to nonindustrial CO2 Technical/ Implemented USDA 0.0 0.2 0.2Enhancement private forest landowners for FinancialProgram forest stewardship, with explicit Assistance

carbon sequestration goals.

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CHAPTER 4—POLICIES AND MEASURES 59CHAPTER 4—POLICIES AND MEASURES 59

TABLE 4-2 (Continued) Summary of U.S. Actions to Reduce Greenhouse Gas Emissions (Tg CO2 Eq.)1

Policy or Objective and/or Activity Affected GHG Type of Status Implementing Estimated MitigationMeasure Affected Instrument Entities Impact for1

2002 2012 2020

Waste Management2

Landfill Methane Reduces methane emissions from CH4 Voluntary Implemented EPA 14.3 24.6 30.8Outreach Program U.S. landfills through cost-effective Agreements;

means. Information;Education;Outreach

Stringent Landfill Reduces methane/landfill gas CH4 Regulatory Implemented EPA 8.7 9.5 9.9Rule emissions from U.S. landfills.

WasteWise Encourages recycling, source All Voluntary Implemented EPA 10.3 20.9 33.0reduction, and other progressive Agreements;integrated waste management Technicalactivities for the purpose of Assistance;reducing GHG emissions. Information;

Research

Cross-Sectoral2

Clean Energy- Motivates GHG emission reductions All Information; Implemented EPA 7.3 7.3 7.3Environment State as one of several benefits states Education;Partnership Program derive from implementing a compre- Research

hensive suite of cost-effective clean-energy policies and programs.

Climate Leaders Assists companies with developing All Voluntary Implemented EPA NA NA NAlong-term, comprehensive climate Agreementchange strategies.

Climate VISION Works with partners to measure and All Voluntary Implemented DOE/EPA/ NA NA NAmonitor emissions, find cost-effective USDA/DOTsolutions to reduce energy use andGHG emissions, accelerate R&D, andexplore cross-sector efficiency gainsto reduce emissions.

Federal Energy Promotes energy efficiency and All Economic; Implemented DOE 0.0 2.2 3.7Management renewable energy use in federal Information;Program buildings, facilities, and operations. Education

Voluntary Reporting Provides a means for organizations All Voluntary Implemented DOE/ NA NA NAof Greenhouse and individuals to record the results Agreement EPA/Gases (1605(b)) of voluntary measures to reduce, avoid, USDA

or sequester GHG emissions.

1 Estimates of mitigation impacts of programs are provided by the agency responsible for each individual program, based on the agency’s experience and assumptions related to theimplementation of voluntary programs. These estimates may include assumptions about the continued or increased participation of partners, development and deployment goals,and/or whether the necessary commercialization or significant market penetration is achieved.

2 Estimates of mitigation impacts for individual policies or measures should not be aggregated to the sectoral level, due to possible synergies and interactions among policies andmeasures that might result in double counting.

3 Estimates presented here reflect mitigation impacts due to GHG measures and policies implemented since 2002 in USDA’s conservation and renewable energy programs.NA: Not applicable for long-term, R&D, and umbrella programs.* These are long-term research efforts discussed in Chapter 8. To allow for a conservative estimate of overlap between Chapters 4 and 5, estimated impacts from technologies

expected to penetrate the market by 2012 are included in this table.** This program ended in 2006.***Although no additional renewable energy projects are planned under this program after 2006, renewable energy systems implemented under this program are expected to have

GHG benefits through 2020. The estimates shown here reflect only wind energy projects implemented between 2002 and 2006.