Effective Strategies for Climate Risk Mitigation Tom Kerr US EPA

Overview u Background u Climate Leaders and corporate GHG management u ENERGY STAR and corporate energy management u Clean energy investment

EPA’s Climate Partnerships u Widespread partnerships Ø7,000+ partners Øacross industry, service sector, public sector Øcover all major emissions sources u Achieving real results Ø66 MMTCE reductions in 2001 alone Ø>500 MMTCE locked in through 2012 u Spurring investment in cost-effective technologies u Delivering value-added tools & services ØClimate Leaders GHG Inventory Management Plan ØENERGY STAR corporate Energy Management Plan ØClean energy project assistance

Voluntary Climate Risk Mitigation – Drivers for Action u Cost savings u Influence policy development u Pressure from financial sector u Public recognition u Brand enhancement u Competitive advantage u Pressure from environmental groups u CEO believes it is the right thing to do

Corporate GHG Management u Develop a comprehensive climate change strategy ØPerform corporate-wide GHG inventory ØSet corporate-wide GHG emissions reduction goals ØIdentify low-cost mitigation options u Ensure credibility Ø Partner with states, federal government, NGOs Ø Develop an Inventory Management Plan that demonstrates a sound process is in place Ø Reevaluate progress periodically and publish results

Corporate Energy Management What - Manage reductions in energy use across all facilities u Key Activities ØEstablishing organizational commitment ØMeasuring energy performance ØCreating and implementing action plans & projects ØMonitoring responsibility for energy use ØEvaluation and focus on continuous improvement ØEnsuring energy efficiency procurement, design, and operations Why – Companies with strong programs can reduce energy use (and GHG emissions) by 10-30%

California Corporate Leaders u CalSTERS – GreenWave Program for Real Estate ØRequire all real estate holdings to be benchmarked and tracked using the EPA’s (ENERGY STAR) National Performance Rating System for buildings ØHoldings scoring a 75% must implement an energy reduction action plan that draws from ENERGY STAR guidance u California Portland Cement ØEstablished corporate energy program based on the ENERGY STAR approach ØParticipating in ENERGY STAR Cement Industry Focus to create a plant Energy Performance Indicator (EPI) to benchmark cement plant energy efficiency ØSaved an estimated 138,135,996 kBtu in 2004

Energy Management – Policy Considerations u Whole Building Energy Performance ØMeasure efficiency using normalized metrics of total energy intensity ØIncorporate whole building comparative energy benchmarking ØPromote a whole building, sequenced approach for facility upgrades to avoid equipment oversizing ØTie benchmarking to rebate programs ØReward buildings with improved benchmark scores u Improved Operational Approaches ØSupport building operator training ØOrient audit and other programs to address operational and management options – often no cost/low cost u Integrate whole building energy performance into new construction

Clean Energy Investment u Combined Heat and Power Ø Dramatically more efficient/less polluting Ø Enhanced reliability/control over energy use Ø Reduced gas use Ø Explore ‘waste/opportunity’ fuels u Green Power Purchasing Ø Electricity use often largest source of emissions Ø Green power available nationally Ø New products offer gas price hedge Ø Need to negotiate with providers for best deal

Getting Started With GHG Management EPA’s Climate Leaders Offers u Credibility through EPA review of inventory u Technical inventorying assistance, including assistance with an Inventory Management Plan u Coordination with other climate efforts Ø State (CA CCAR), international, federal u Peer exchange u Partners demonstrate leadership by developing comprehensive climate change strategies u Currently 67 partners; 28 have set GHG targets

Getting Started With Energy Management ENERGY STAR Can Help With: u Establishing an Organizational Commitment u Measuring Energy Performance Øbenchmarking facilities with Portfolio Manager u Demonstrating Financial Value Øearning/share, asset value, NOI u Recognition for Leadership ØENERGY STAR label Øcalculation of environmental benefits of energy savings

Getting Started With Clean Energy Investment u EPA’s CHP Partnership offers Ø Feasibility assessments Ø Referrals to developers/equipment suppliers Ø Technology and market analyses Ø Recognition for leadership Ø Calculation of environmental benefits u EPA’s Green Power Partnership offers Ø Easy-to-use Procurement Guide Ø Referrals to providers Ø Calculation of environmental benefits Ø Recognition for leadership

Contact Information Tom Kerr EPA Office of Air & Radiation tel. 202/