1. E NERGY S TAR ® Refrigerated Beverage Vending Machine Industry Meeting Rachel Schmeltz, US EPA Georgia World Congress Center October 22, 2002

2. Meeting Agenda Overview of E NERGY S TAR The History and EPA’s Interest in Vending Machines Utility Interest and Opportunities Draft Specification for Vending Machines Retrofit and Installed Base Discussion

3. What is E NERGY S TAR ® ? Government-backed label that makes it easy for purchasers and users to identify products that save energy, save money and help protect the environment without sacrifice in quality or performance Products that earn the E NERGY S TAR meet strict energy performance criteria set by the US EPA or DOE Voluntary partnership

4. The E NERGY S TAR Label One label at the national level Over 30 products to date –Representing top 25% in their category for efficiency Products either qualify or don’t qualify –Manufacturers test and label products –No cost for participating

5. E NERGY S TAR Qualified Products Residential products –Household appliances –CFLs and light fixtures –Consumer electronics –Heating and cooling equipment –Office equipment –Ceiling fans –Windows –Water coolers –Dehumidifiers

6. E NERGY S TAR Qualified Products Commercial Products –Heating and cooling equipment –Roof products –Traffic signals/exit signs –Commercial solid door refrigerators New Products in Development –Commercial food service equipment –Refrigerated beverage vending machines

7. Criteria for Product Selection Significant energy savings potential Efficiency is cost-effective Performance is maintained or enhanced Efficiency is achieved with non-proprietary technology Product differentiation and testing are feasible Labeling would be effective in the market

8. Developing an Effective Label  Energy and environmental analysis  Market research and design analysis  Specification development (in cooperation with stakeholders)

9. Activities to Support the Label Publicity and consumer education Marketing tools and financing Recognition with annual awards Purchasing tools

10. E NERGY S TAR Success More than 1,200 manufacturers labeling more than 13,000 product models More than 400 retailers (16,000 storefronts) including Sears, Wal*Mart, Lowes, and Home Depot 160 state and utility partners supplying nearly 60% of US customers To date, American consumers have purchased more than 750 million E NERGY S TAR labeled products

11. E NERGY S TAR Impact E NERGY S TAR is recognized by 40% of consumers nationwide Awareness exceeds 50% in areas where utility/state programs are active High brand loyalty: most E NERGY S TAR purchasers would recommend E NERGY S TAR to a friend

12. Why E NERGY S TAR Works Adds value to products & services Simple --- consistent platform Flexible --- partners can take ownership Builds on existing market structures

13. E NERGY S TAR Partnership Agreement 3 Sections –Commitment Form –Partner Commitments –Eligibility Criteria Commitment Form: only has to be signed once and allows partner to expand product areas at any time Partner Commitments: similar language across ALL products Eligibility Criteria: Product specifications, testing guidelines, and effective dates

14. E NERGY S TAR Partnership Agreement Three Standard Commitments: Annual submission of product information Clear display of the E NERGY S TAR label on products, on product packaging, in product literature, and on company Web site Annual submission of E NERGY S TAR unit shipment data Essential to continued growth and success of E NERGY S TAR

15. Annual Submission of Product Information Goal: to ensure qualified product information provided on the Web site is current Qualifying products do not need to be retested if the specification has not changed Submit list of products that continue to qualify Report products that have been discontinued year round

16. Product Labeling Goals: –To ensure that participating manufacturers get recognition for their efforts –To increase awareness of E NERGY S TAR among consumers –To make it easy for purchasers, retailers, and/or others to identify energy-efficient models –To maintain the integrity of the E NERGY S TAR brand by ensuring that the label is visible in the marketplace

17. Annual Shipment Data Goal: to determine market penetration of E NERGY S TAR EPA will work with partners to determine data collection format Data can be masked and/or aggregated Data may be provided by trade association on behalf of its members

18. EPA’s History with Vending Machines Efforts began over 5 years ago with limited success –Energy savings/pollution prevention potential sparked EPA interest –Improved understanding of market and split incentives –Difficult to get reliable data on which to base a specification Recently jump started again –Machine improvements by manufacturers –Recognition by beverage companies of importance of energy efficiency –Interest from utilities

19. Working toward an ENERGY STAR specification To date, EPA has limited data on machine energy consumption –Need to augment dataset to ensure that specification captures at least the top 25% of the market –Build understanding of the market and where E NERGY S TAR could play a role For both new machines and installed base Vital to developing a successful specification

20. Working toward an E NERGY S TAR specification: Next Steps Preliminary Draft available for review –Determine Draft review period –Post comments on the Web site Assimilate industry comments –Obtain more data –Further research as needed Disseminate additional Draft for review Finalize specification and launch –Mfrs sign a Partnership Agreement