2006 Update on ENERGY STAR in the U.S. U.S. Environmental Protection Agency (EPA) Kate Lewis Canadian ENERGY STAR Participants’ Meeting May 4, 2006

Today’s Presentation: ENERGY STAR U.S. Update Where “We” Are; Big Picture Components –Products –Partners –Public Awareness –Publicity / Campaigns –Pitfalls

Big Picture Savings In 2005, with the help of ENERGY STAR, Americans –Saved about $12 billion on their utility bills –Saved 150 billion kWh or 4% of total 2005 electricity demand –Prevented 35 million metric tons of ghg emissions Equivalent to the annual emissions from 23 million vehicles –Helped avoid 28,000 MW of peak power Equivalent to the generation capacity of more than 50 new power plants

ENERGY STAR and the Global Picture

Products and Categories Appliances Clothes washers Dishwashers Refrigerators Dehumidifiers Air cleaners Water coolers Heating & Cooling Central AC Heat pumps Boilers Furnaces Ceiling fans Room AC Ventilating fans Home Electronics Battery chargers Cordless phones Answering machines TV/VCRs DVD products Home audio External power adaptors Office Equipment Computers Monitors Printers Copiers Scanners Fax machines Multi-function devices Lighting CFLs Residential light fixtures Exit signs Traffic signals Home Envelope Home sealing Roof products Windows/Doors Commercial Food Service Refrigerators Freezers Fryers Steamers Hot food cabinets Vending machines

Partners and Product Sales Partners: –Approximately 1,500 manufacturers; labeling more than 35,000 product models –More than 800 retailers bringing qualifying products and educational information to their customers –More than 30 state and more than 450 utility partners Sales: –More than 1.75 billion ENERGY STAR qualified products have been sold in the US to date

Product Specifications New specifications launched: –Battery charging systems: January 2006 Existing specifications revised: –Dehumidifiers: October 2006 –Central Air Conditioners/Heat Pumps: April 2006 –Cordless phones: July 2006 –Residential Clothes washers (now including water factor): January 2006 –Residential Dishwashers: January 2007

Product Specifications New Specs in Development –Commercial Dishwashers –Digital Television Adapters (DTA) –Seasonal Lights – Lead by NRCan Spec Revisions Underway –Imaging Equipment –Computers –Programmable Thermostats –Roof Products –Vending Machine Retrofits –Furnaces –Televisions Looking to address active power in specs for office equipment and consumer electronics

Key New Partners Retailers : –Menard’s –Wal*Mart –Acme Working with retailers: –Establish ENERGY STAR presence nationally –Influence stocking practices –Train salespeople –Facilitate special promotions with manufacturer partners and utilities

Training Highlights Home Depot training guide for current and new associates 80,000 associates in August 2005

Training Highlights

Public Awareness of ES 2005 CEE Survey: awareness level remains steady at 64% Retail signage Manufacturer ads

Public Awareness of ES Labeled products Public Relations

Public Awareness of GGC Global Warming / Climate Change mainstream issue What is Global Warming? Why Take Action? What We’re Doing At Clif Bar & Company

Public Awareness of GGC Stonyfield Farm Yogurt Oprah

Seasonal “Campaigns” Change a Light, Change the World Cool Your World –Engage partners and media at relevant times –Drive demand and behavior change by encouraging consumer action and reaching new audiences –Provoke availability and sustained sale of qualified products across all brand categories –Position ENERGY STAR as efficiency leader –Build our brand

EPA-owned Creative General Marketing Communications Tactics: –EPA-owned: Web page, posters, brochures, print PSAs, Pledge graphics, go-cards –Partner co-branding: CAL graphic, in-store templates, etc. PR Communications Tactics: –Focus: ENERGY STAR Change a Light Day –Viral Action: ENERGY STAR Change a Light Online Pledge –Partner participation: turnkey media kit elements + messaging ‘Shine’ theme on all EPA- owned creative

Online Pledge More than 73,000

Retailer Highlights

‘05 Campaign Results ~73 million media impressions –More than 200 TV stories: CNN, NBC, SMT + freebie from Oprah –4 national radio stories + RNR: NPR, EcoTalk, CNN en espanol –USA Today, Wall Street Journal, Reuters, Dow Jones –More than 100 events across country Print PSA: –Time, Discover and Mother Earth News 50% increase in Web visits in Oct. over Sep. ~ 300 participating organizations –Better quality participation from all partner types –New participation from industry, non-profits, etc. Product Sales –One retailer reported a 400% increase in CFL sales in October

Campaign Goals in ‘06 Products: Increase CFL bulb and lighting fixture sales Partners: More partners promoting CAL Day/Pledge –October 4, 2006 Media: 80 million impressions

Cool Your World 2006 Summer campaign to encourage Americans to “cool their world” with ENERGY STAR qualified cooling products at home – to save energy, stay comfortable, and protect our environment Positioning ENERGY STAR as the experts on saving energy -- you’ll see this theme more and more

Campaign Elements “ENERGY Home” –Focal point of Campaign –Launch (Memorial Day 2006) –Will also develop a version of house cutaway with top five recommendations for use in print Guide to Energy-Efficient Heating and Cooling –Online and available to mail

Cool Your World 2006

What’s not working… Static website and external web marketing –72% of successful websites update their site daily –Better ES presence throughout the web Product-focused media pitching –ES must be positioned within broader/trend stories Ignoring new marketing strategies –Word of Mouth, Social/Grassroots Marketing

Challenge and Opportunity “I cannot tell any other society or culture what to say to its own children, but I can tell you what I say to my own: The world is being flattened. I didn’t start it and you can’t stop it, except at a great cost to human development and to your own future. But we can manage it, for better or for worse… You can flourish in this flat world but it does take the right imagination and the right motivation…The generation of strategic optimists, the generation with more dream than memories, the generation that wakes up each morning and not only imagines that things can be better but also acts on that imagination every day.” The World Is Flat Tom Friedman

Contact Person Kate Lewis U.S. EPA