1. WOOD STOVE CHANGEOUT PROGRAMS AS SEPs Presentation by Hearth, Patio & Barbecue Association (HPBA) NCAF 2006 Energy Programs Leveraging Conference October 24-26, 2006 St. Petersburg, FL

2. PURPOSE Describe an opportunity for leveraging your resources to obtain additional funding to better serve low-income households Propose ways to be pro-active Offer to help

3. TOPICS TO BE COVERED SEPs Wood stove changeout programs Weatherization assistance community Concept for WAP-based, wood stove SEPs Ways to be pro-active HPBA support

4. SEPs SEPs = Supplemental Environmental Projects Context: Enforcement of environmental laws by EPA and agencies at the state, local, tribal and territorial levels Negotiated settlements, resulting in consent decrees –Remedial measures –Voluntary mitigation measures, including SEPs –Penalties, which are set partly in light of the SEPs Elaborate policies at federal and state levels about acceptability of projects as SEPs (e.g., EPA has detailed website)

5. SEPs Recent examples –Toyota Alleged Clean Air Act violations $20MM for retrofitting controls on tailpipe emissions from diesel engines in school buses –ADM Alleged Clean Air Act violations $4MM for school bus retrofits in Midwest

6. SEPs Potential settlements –Electric utilities in eastern half of country who have yet to settle EPA’s Clean Air Act lawsuits for large plant refurbishments –Steady stream of settlements at federal and non-federal level, mainly relating to air pollution

7. HPBA Expertise on WOOD STOVE CHANGEOUT PROGRAMS “Wood stove” = residential home heating appliance burning cord wood or pellets, either free-standing or as fireplace insert Conventional wood stoves –Sales prior to EPA promulgation of NSPS in 1988 –At least 7.5 million nationwide –Long-lasting; little incentive for replacement Modern wood stoves burn much more cleanly and efficiently (e.g., 70 percent reduction in fine particulates) 300,000 tons per year from nationwide changeout

8. WOOD STOVE CHANGEOUT PROGRAMS Definition of target community Outreach Incentives Application procedures On-site inspection Installation Education on good usage Disposal of old appliance Quality control Accounting

9. WOOD STOVE CHANGEOUT PROGRAMS Extensive HPBA experience, for example: –Crested Butte, CO: 1988 – 1990 –Libby, MT: June, 2005 – ONGOING –Sacramento, CA: September, 2006 – ONGOING EPA promotion –Effective group in EPA’s RTP office (stationary sources of air pollution) Outreach, technical assistance, grant program, etc. Website: http://www.epa.gov/woodstoves/changeout.htmlhttp://www.epa.gov/woodstoves/changeout.html –EPA enforcement lists such changeout programs as viable SEP candidates

10. WEATHERIZATION ASSISTANCE COMMUNITY 900 local organizations Serve 100,000 low-income families per year Well-suited to manage wood stove changeout programs –Experience, expertise, reliability –Ability to incorporate wood stove changeouts into the assistance packages for households if the wood stoves are cost-free

11. CONCEPT FOR A “TURN-KEY” SEP The defendant enters into a grant agreement with a WAP provider to provide cash for EPA- certified wood stoves or actual wood stoves. The WAP provider agrees to conduct a changeout program in low-income homes in the course of installing other energy efficiency measures. The WAP provider would generate all necessary accountings.

12. ADVANTAGES Significant reduction in air pollution Energy savings Improved home safety Maximum leverage of SEP dollar (e.g., low costs of administration) Reliability and accountability Minimal “hassle” for defendant Maximum insulation for defendant from potential liabilities due to installations

13. PUBLICIZING THE CONCEPT “Open Letter” to the environmental enforcement community from NCAF and HPBA Dissemination of “Open Letter” –Lobby EPA and DOJ –Mailings to EPA regional offices and non-federal agencies –Direct contacts to environmental defense bar –Press Posting on websites –EPA’s wood stove website –HPBA’s website

14. WAYS TO BE PRO-ACTIVE Build infrastructure, for instance: –Model grant agreement –“How-to-do-it” manual for changeout programs (general version on EPA’s website) Alert non-federal enforcement officials to the opportunity Encourage federal and state WAP officials to support

15. HELP FROM HPBA Offer to help –Each SEP will have its own set of locally determined needs –Technical consultation on full range of changeout issues –Networking with vendors and installers –Training for and certification of installers –Drafting of model legal documents

16. THANK YOU! W. Allan Cagnoli Director of Government Affairs (703) 522-0086 cagnoli@hpba.org Contact: John Crouch Director of Public Affairs (916) 536-2390 john.crouch.hpba@sbcglobal.net