ENERGY STAR

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• ENERGY STAR Refrigerated Beverage
• Vending Machine Industry Meeting
• Rachel Schmeltz, US EPA
• Georgia World Congress Center
• October 22, 2002

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Meeting Agenda

• Overview of ENERGY STAR
• The History and EPAs Interest in Vending
  Machines
• Utility Interest and Opportunities
• Draft Specification for Vending Machines
• Retrofit and Installed Base Discussion

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What is ENERGY STAR?

• 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 ENERGY STAR meet strict
  energy performance criteria set by the US EPA or
  DOE
• Voluntary partnership

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The ENERGY STAR Label

• One label at the national level
• Over 30 products to date
• Representing top 25 in their category for
  efficiency
• Products either qualify or dont qualify
• Manufacturers test and label products
• No cost for participating

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ENERGY STAR Qualified Products

• Residential products
• Household appliances
• CFLs and light fixtures
• Consumer electronics
• Heating and cooling equipment
• Office equipment
• Ceiling fans
• Windows
• Water coolers
• Dehumidifiers

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ENERGY STAR 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

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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

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Developing an Effective Label

• Energy and environmental analysis
• Market research and design analysis
• Specification development (in cooperation with
  stakeholders)

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Activities to Support the Label

• Publicity and consumer education
• Marketing tools and financing
• Recognition with annual awards
• Purchasing tools

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ENERGY STAR Success

• More than 1,200 manufacturers labeling more than
  13,000 product models
• More than 400 retailers (16,000 storefronts)
  including Sears, WalMart, 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 ENERGY STAR labeled products

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ENERGY STAR Impact

• ENERGY STAR is recognized by 40 of consumers
  nationwide
• Awareness exceeds 50 in areas where
  utility/state programs are active
• High brand loyalty most ENERGY STAR purchasers
  would recommend ENERGY STAR to a friend

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Why ENERGY STAR Works

• Adds value to products services
• Simple --- consistent platform
• Flexible --- partners can take ownership
• Builds on existing market structures

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ENERGY STAR 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

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ENERGY STAR Partnership Agreement

• Three Standard Commitments
• Annual submission of product information
• Clear display of the ENERGY STAR label on
  products, on product packaging, in product
  literature, and on company Web site
• Annual submission of ENERGY STAR unit shipment
  data

Essential to continued growth and success of
ENERGY STAR
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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

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Product Labeling

• Goals
• To ensure that participating manufacturers get
  recognition for their efforts
• To increase awareness of ENERGY STAR among
  consumers
• To make it easy for purchasers, retailers, and/or
  others to identify energy-efficient models
• To maintain the integrity of the ENERGY STAR
  brand by ensuring that the label is visible in
  the marketplace

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Annual Shipment Data

• Goal to determine market penetration of ENERGY
  STAR
• 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

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EPAs 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

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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
  ENERGY STAR could play a role
• For both new machines and installed base

Vital to developing a successful specification
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Working toward an ENERGY STAR 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