Energy Day 2010 Sustainability Publication

8/8/2019 Energy Day 2010 Sustainability Publication

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Table of Contents

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Air Transport Association . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

American Highway Users Alliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

American Iron and Steel Institute . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

American Public Power Association . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

American Trucking Associations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Caterpillar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Colorado Farm Bureau . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Deutsche Post DHL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The Dow Chemical Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

International Window Film Association . . . . . . . . . . . . . . . . . . . . . . . . . . .

National Association of Home Builders . . . . . . . . . . . . . . . . . . . . . . . . . . .

National Petrochemical and Refiners Association . . . . . . . . . . . . . . . . .

Natural Gas Supply Association . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Nuclear Energy Institute . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Nucor Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Virginia Manufacturers Association . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Acknowledgements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1CONSUMER ENERGY ALLIANCE

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CEA members represent a wide variety ofsectors across the U.S. economy, includingagriculture, manufacturing, trucking anddistribution, small businesses, energyproviders and energy producers. As thispublication demonstrates, each of these

sectors has undertaken initiatives that havecreated more sustainable operations, energysavings and a reduced environmentalfootprint; CEA is glad to act as a collectiveforce, engaging both energy-producing and-consuming sectors on the necessity andchallenges of sustainability.

Over the next 20 years, U.S. energyconsumption is projected to increase by 14percent while global consumption willincrease by 49 percent, according toestimates from the Energy Information

Administration. However, according to a2009 report by McKinsey & Company, if theUnited States fully adopted currentlyavailable energy-efficient technologies,annual energy consumption could be reducedby 23 percent - saving 18.4 quadrillion BTUs.With the industrial sector accounting forapproximately 40 percent of U.S. energyconsumption, industry-driven efforts cangreatly reduce energy consumption, helpingto lower emissions and pass along costsavings to consumers.

Though conservation of energy is an essentialmeans of reducing costs, corporatesustainability transcends considerationsconfined exclusively to the bottom line.Through innovative technologies andpractices, industry has pioneered new waysto minimize water usage, recycle wasteproducts, limit carbon emissions anddecrease the consumption of other rawmaterials, resulting in greater efficiencies and

IntroductionIntroduction


Twenty-first century America will be definedby how the United States confronts anincreasingly complex problem: the lack of astrong energy policy that properly expandsdomestic energy production through an allof the above approach. Affordable, abundant

and accessible energy is necessary to fuel agrowing economy and ensure the security ofour nation. Yet, energy production andconsumption must also account forenvironmental concerns, market volatility andlong-term demand and supply. As globaldemand for energy continues to rise, supplywill be increasingly strained.

Promoting and expanding energy efficiency,conservation and sustainability practicesthroughout the U.S. economy will producesignificant energy and cost savings that will

help solve these challenges and put theUnited States on a path toward a balancedenergy future. The positive impact thatsustainability practices will have on Americasfuture are indisputable, and it is imperativethat businesses, policymakers and consumerscollaborate to ensure all economic sectors -including residential, commercial andindustrial - move toward a sustainable future.

Integrating sustainable practices into the U.S.economy will require innovative technology,focused policy and successful collaborationbetween the private and public sectors.Consumers, government and private industryhave all undertaken initiatives to increaseenergy efficiency and conserve use, and theactivities of Consumer Energy Alliances(CEA) 145 affiliated organizations illustratethe new and proactive ways in which privateindustry has advanced corporatesustainability and become a key leader in thesustainability revolution.



lower pollution levels.

For CEA and its affiliates, corporatesustainability means a synthesis oftechnological improvement, adaptation andcollaboration with customers, stewardship ofresources and a culture dedicated to long-term solutions. Sustainability practices notonly produce immediate savings for onebusiness but also create a multiplier effectimpacting several markets.

As the following chapters demonstrate, adiversity of sustainability solutions hasalready been adopted by CEA members, andadded investment in research anddevelopment will surely produce greatersavings for consumers and for theenvironment. The members of CEA agree thatthe benefits of sustainability are real and

present and must be incorporated into anyrational energy policy that also advocates fordomestic energy production and greater useof renewable and alternative energy. We callon the federal government to embrace acommonsense energy policy that stimulatesthe economy and fosters greater confidenceamongst American consumers.

About Consumer Energy Alliance

Consumer Energy Alliance is a nonprofit,nonpartisan organization whose mission is toexpand the dialogue between the energy andconsuming sectors and to advance a betterunderstanding of energy security and thethoughtful development and utilization ofenergy resources in order to help create abalanced energy policy and maintain stableprices for consumers.

On the Web:http://www.consumerenergyalliance.org


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Executive SummaryExecutive Summary


efficient household appliances havecontributed to a 40 percent reduction in theuse of natural gas per household over thepast 40 years.

A 2008 survey of American Public Power

Association members revealed the proactivesteps that utilities companies are pursuing toreduce consumption: 72 percent of therespondents have improved theirtransmission and/or distribution efficiencyover the previous five years, and 76 percenthave plans to do so over the next five years;further 63 percent of all respondents haveenergy efficiency/demand-sidemanagement/energy conservation programsin place, and 90 percent plan to expand theseprograms in the next five years.

Since Dow Chemical Company set its firstsustainability goals, roughly $1 billion hasbeen invested to fulfill them. Although Dowonly expected a return of between $2 billionand $3 billion, the return on investment hasbeen over $5 billion.

Caterpillars Remanufacturing &Sustainable Solutions Division returns end-of-life components to same-as-new conditionwhile reducing waste and minimizing theneed for raw materials to produce new parts.Caterpillar recycles more than 100 millionpounds of end-of-life iron annually, much ofwhich is used for remanufactured engine,transmission and hydraulic components.

According to the Nuclear Energy Institute,nuclear plants are the lowest-cost producerof baseload electricity. The averageproduction cost of 2.03 cents per kilowatt-hour includes the costs of operating andmaintaining the plant, purchasing fuel and

In an era of highly volatile energy markets,implementing sustainable practices can be animportant tool to help meet the expandingneeds of society. From the private-sectorperspective, expanding corporatesustainability lowers operations costs, helps

meet corporate social responsibilities andstakeholder obligations and helps to preservethe planet for future generations.

Consumer Energy Alliance has asked severalof its organizations to write summariesoutlining the technologies, programs andpolicies they have implemented that helpaddress the U.S. energy challenge andpromote energy efficiency, conservation andsustainability.

The result: Organizations across a broad

range of sectors are making real progress onsustainability initiatives and practices whilesaving money, lowering energy usage andreducing environmental impacts.

The following chapters will more fullyillustrate:

Deutsche Post DHL helped one customerin Australia cut its carbon emissions by 41percent (2,600 metric tons) by relocatingswitching centers and changingtransportation modes.

According to a study by the AmericanHighway Users Alliance, congestion relief atthe worst 233 traffic bottlenecks over thenext 20 years could save 40 billion gallons offuel and reduce wasted fuel by 77.2 percent.

Due to advancements in technology andconsumer-awareness programs, the NaturalGas Supply Association reports that energy



qualified employees for Virginias energyindustry.

By reusing scrap steel, Nucor Steel hasbeen able to reduce mining waste by 97percent, air pollution by 86 percent and waterpollution by 76 percent. Nucor is currently thenations largest recycler of steel, using morethan 13 million tons of scrap steel in 2009 tocreate new products.

Since 2004, American TruckingAssociations partners have reduced fuelconsumption by 1.5 billion gallons andreduced CO2 emissions by 16.2 million tons the equivalent of taking 2.88 million cars offthe road. Over the next nine years, CO2reductions under the ATA plan are estimatedat 119 million tons.

As the following pages demonstrate, theenergy savings of sustainable practices aresignificant, as are the economic andenvironmental benefits. The benefitshighlighted throughout these chapters arenecessary to continue economic growth andenvironmentally-sound development forgenerations.

Industry, the agricultural sector and thetransportation and logistics sectors haveemerged as leading forces in this newfrontier, but their success will not be the sole

solution to our nations energy problem. AsAmerica looks to enhance its energy future,the private sector and political leaders mustwork together to ensure that sustainabilityremains a strong component of a balancedenergy policy.

paying for the management of used fuel.

The U.S. agricultural industry is producingmore food and fiber than ever before, and theindustry is doing so while using 50 percentless energy-related inputs than it did just twodecades ago, according to the Colorado FarmBureau.

Currently, there are more than 6,000 localwindow film dealers and installers in theUnited States, all with window films that canstop 50 to 85 percent of all solar energytransmission without appearing dark or shiny,according to the International Window FilmAssociation.

The National Association of Home Buildersreports that nearly 20 percent of new homesgarnered Energy Star certification in 2009

up from about 12 percent the previous year signifying an increasing commitment toenergy efficiency.

According to the National Petrochemicaland Refiners Association, the use of plasticbuilding and construction materials saved467.2 trillion BTU of energy use overalternative construction materials in one year enough to meet the average annual energyneeds of 4.6 million U.S. households.

The Air Transport Association of America

writes that the U.S. airline industry hasimproved fuel efficiency 110 percent since thelate 1970s saving more than 2.9 billionmetric tons of carbon dioxide (CO2),equivalent to taking approximately 19 millioncars off the road each of those years.

According to the American Iron and SteelInstitute, new technologies and innovation ofhuman capital on the plant floor havereduced energy intensity per ton of steelshipped by 30 percent across the industrysince 1990 and have reduced emissions perton of steel produced for that same period by35 percent.

The Virginia Manufacturers Association haslaunched various advocacy and educationprograms to prepare the next generation ofworkers for careers in technology andrenewable energy. Dream It Do It Virginiapromotes wind, solar and nuclear energyoccupations to ensure a future pool of


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Air TransportAir Transport


Commercial Aviation Alternative FuelsInitiative (CAAFI), a consortium of airlines,manufacturers, airports, energy producers,researchers and government agenciesdedicated to the development anddeployment of environmentally-friendly

alternative fuels. In addition to a string ofsuccessful test flights with alternative fuels,CAAFI ushered in a new jet-fuel specificationfor such fuels in 2009, which ensures thattomorrows fuels will be as safe as todays. Inoperations, we continue to implementinnovative flight procedures within the limitsof the existing air traffic management (ATM)system to further reduce noise and emissions.And we are working toward a modernizedATM system that will reduce not only delaysbut also undue emissions.

As part of our overall commitment, we havejoined airlines around the world in adoptingan ambitious set of targets to mitigateemissions associated with climate changeunder a global framework, includingcollective industry commitments to:1. improve fuel (and, hence, CO2) efficiency

by an annual average of 1.5 percent peryear through 2020;

2. cap industrywide CO2 emissions from2020 (carbon-neutral growth), subject tocritical aviation infrastructure andtechnology advances achieved by theindustry and government; and

3. reduce CO2 emissions by 50 percent by2050, relative to 2005 levels.

For U.S. airlines alone, these commitmentswill result in additional emissions savings of 1.1billion metric tons of CO2 from 2010 through2030 equivalent to taking an average of 10million cars off the road every year duringthat period.

Air Transport Association

We are Americas airlines Connecting andProtecting Our Planet. These words are partof our covenant with those who fly and ourimpressive record demonstrates this unfailingcommitment. Federal Aviation Administration(FAA) confirms that the number of people inthe United States affected by aircraft noisehas diminished yet again, by more than 94percent since 1975 56 percent just since

2000 though passenger boardings haveincreased almost fourfold. At the same time,weve flown progressively more fuel-efficientand cleaner aircraft. For example, weveimproved our fuel efficiency 110 percent sincethe late 1970s saving more than 2.9 billionmetric tons of carbon dioxide (CO2). Thesesavings are equivalent to takingapproximately 19 million cars off the roadeach of those years fairly remarkable sincethe U.S. Environmental Protection Agencydata confirms that commercial aviationaccounts for only two percent of the nations

greenhouse gas emissions.

But we are not resting on our record; we arecommitted to continuing to do more toprotect our planet. To do so, we are drivingtechnology, operations and infrastructuretoward further noise and emissions savings. Intechnology, the Air Transport Association ofAmerica (ATA) continues its role as afounding and leading member of the



About the Air Transport Association

ATA airline members and their affiliatestransport more than 90 percent of all U.S.

airline passenger and cargo traffic.

On the Web:http://www.airlines.org

To meet our targets, we must be able toinvest in newer aircraft, fleet upgrades,alternative fuels and other emissions - andnoise-saving measures. While we arecommitted to doing all that we can,government also has a role to play. First, itmust not add to the already significant taxburden of the airline industry throughemissions taxes or cap-and-traderequirements, which siphon away the veryfunds we need to continue to improve.Second, government must do its part byreinstating funding in aviation research anddevelopment programs and by makingnecessary ATM infrastructure investments onthe ground and in the air.

We want to continue to connect people in

America with the rest of the world and viceversa while transporting goods critical to theAmerican economy. To do this, we mustcontinue to act responsibly protecting ourplanet.


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Roads, Highways &Roads, Highways &TransportationTransportation


pump. Yet, we also generally agree on theimportance of energy efficiency, sustainabilityand conservation. Are these core valuescontradictory? A new concept known assustainable mobility holds great promise foraligning these values and creating both

environmental progress and enhancedpersonal mobility.

Around the world, automobile companieshave led the way in advancing the sustainablemobility concept. Industry focus areas includenew technology deployments accelerated byfleet renewal, as well as support for trafficflow improvements and EcoDrivingeducational programs. Energy industryadvancements for both traditional andalternate fuels are also a major benefit to thevehicle industry. Other chapters of this

publication discuss energy advancements indetail.

CAFE Standards

Many industries observed with great interestwhen auto manufacturers dropped theirlongstanding opposition to increasedcorporate average fuel economy (CAFE)standards in 2007. At the time, the industrysupported raising CAFE to 35 miles per gallon(mpg) by 2020. In 2009, auto industry chiefexecutives supported an even tougherstandard of 35.5 mpg by 2016 that createdthe first national standard for both fueleconomy and greenhouse gas emissions.These new rules made the auto industry thefirst major industry to be regulated forgreenhouse gases by the U.S. EnvironmentalProtection Agency.

American Highway Users Alliance

Mobility and The American Dream

Affordable automobility has been a criticalingredient to Americas long-term economicgrowth and high quality of life. Since 1950,the correlation between vehicle-miles-traveled (VMT) and Gross Domestic Product(GDP) has been an astounding 99.46 percent.Compared to most Western countries,

Americas relatively low price of highway fuelhas given nearly our entire population theability to access a wide array of employment,shopping and recreational destinations inwhichever vehicle-type suits their familyneeds. Roads and cars yield importantsocietal benefits as well: according to theProgressive Policy Institute, the best hope forlong-term employment for Americas poorestcitizens is through access to a reliable car more so than any government program or theavailability of public transit. We are extremelyfortunate to live in a country where, even inurban areas, more than 90 percent of peoplehave at least one family car. The freedom andopportunity that comes from driving a car is amajor part of the American dream.

Sustainable Mobility: An Introduction

Not surprisingly, most Americans do not wanttheir mobility restricted through pain at the


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Accelerating Fleet Renewal

The average vehicle on the road is more thaneight years old and it takes about 15-18 yearsto replace vehicles that are currently on theroad, so accelerating fleet turnover is a toolto speed the deployment of new

technologies. Tax incentives to scrap older,more polluting vehicles have been used inmany countries, including the United States.For example, new cars sold or leaded underthe Cash-for-Clunkers program had anaverage fuel consumption that was 34percent lower than the vehicles theyreplaced.

Traffic Flow Improvements

Traffic flow improvements are another driver-friendly way to improve the efficiency and

sustainability of automobiles. According tothe Texas Transportation Institute, trafficcongestion alone wasted 2.8 billion gallons offuel in 2007. Another study, by the AmericanHighway Users Alliance found that over 20years, congestion relief at the worst 233traffic bottlenecks could save 40 billiongallons of fuel and reduce wasted fuel by 77.2percent. Solutions include infrastructureinvestments, intelligent transportationsystems, improved logistics systems, trafficlight synchronization and carpoolingprograms.

EcoDriving

EcoDriving is a promising behavioral strategythat does not impose the kind of draconianmobility restrictions favored by anti-highwayactivists. Eco-driving training programsinclude techniques to increase fuel efficiencysuch as keeping a uniform pace, predictingtraffic trends, using higher gears, avoidingpassing, proper tire inflation and reducingunnecessary loads. Eco-driving courses have

yielded excellent results at low costs. In a U.S.study, 48 volunteers trained in eco-drivingshowed an average 24 percent improvementin fuel economy as a result of the training. Ifall Americans practiced EcoDriving, it wouldbe equivalent to 450 billion emission-freemiles of travel each year. Information aboutEcoDriving can be found athttp://ecodrivingusa.com.

CONSUMER ENERGY ALLIANCE10

Internal Production Efficiency

The auto industry is also improving internalefficiencies that affect the life-cycle energycosts that motorists dont directly notice.Carmakers now conduct complete reviews ofthe entire supply chain of raw materials and

component selections with a focus onreusing, recycling and recovering products.They also implement low environmentalimpact production processes and ask thesame from their suppliers. Finally, a focus onmore efficient logistic and transport systemsreduces energy use and saves time andmoney.

Vehicle Technology Progress

For consumers, vehicle manufacturers areaccelerating the development of new

technologies, including low and even zeroemission vehicles, through massive researchand development investments anddeployment. The total global R&D investmentby automakers was over $86 billion in 2008.Carmakers compete to develop new ways toimprove the efficiency of their products,focusing on a broad array of approaches thatallow for the most marketable, cost-effectivetechnologies to take hold. Public policies thatare based on performance metrics rather thanspecific technology mandates lead tooptimal, least-cost solutions that maximize

the public good. As technologies develop,consumer tax incentives compensate earlyadopters for these cost premiums andaccelerate market penetration. Faster publicacceptance of new technologies leads tomore progress on additional generations ofadvancement.

The Importance of Fuel Price Stability

Fuel price stability is a critical factor in theresearch, development and deployment of

new efficiency technologies. Sudden fuelprice spikes have created problems for theadvancement of rational vehicle technologyprograms. Price spikes in the summer of2008, for example, created sudden and short-lived changes in vehicle preferences. By early2009, the consumer preferences for lighttrucks and SUVs re-emerged. For highwayusers, stable and reliable production ofdomestic and other energy resources iscritical to a stable vehicle technology market.


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Conclusions

Sustainable Mobility practices create a toolkitof beneficial practices that will increase theenergy efficiency of cars, vans, light trucksand SUVs. By achieving win-win solutionsthat embrace both the environment and

freedom, we can move forward without apolarizing debate over the relativeimportance of either. After all, drivers caredeeply about both. With the combined effortsof motorists and the highway, auto andenergy industries, we are making strongprogress toward a brighter future.

About the American Highway Users

Alliance

The American Highway Users Alliancerepresents motorists, RV enthusiasts, truckers,bus companies, motorcyclists, and a broadcross-section of businesses that depend onsafe and efficient highways to transport theirfamilies, customers, employees, and products.Highway Users members pay the taxes thatfinance the federal highway program andadvocate public policies that dedicate thosetaxes to improved highway safety andmobility.

On the Web:http://www.highways.org



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Iron & SteelIron & Steel

reduce carbon emissions and heightenproductivity. We have also been a leader inreducing energy intensity in steelmanufacturing processes andcorrespondingly reducing greenhouse gasemissions through recycling and process

innovation. Since 1975, steel companies haveinvested over $60 billion on newtechnologies, and that investment has paidoff. By deploying new steelmakingtechnologies, and through the innovation ofthe women and men working on the plantfloor, the industry has reduced energyintensity per ton of steel shipped by 30percent since 1990 and has reducedemissions per ton of steel produced, for thatsame period, by 35 percent. The Americansteel industry, in fact, is the only significantindustry in the U.S. that has reduced its total

energy consumption while increasing itsproduction from 1990 to 2005.2

Steel is fundamental to American society andto our modern way of life. Our nationsenergy supply, transportation infrastructure,urban centers, clean water and safe foodsupply all depend on steel.

Manufacturing steel by todays steelmakingprocesses produces CO2 as a by-product.CO2 is one of the major greenhouse gasesidentified as contributing to climate change.On average, 1.14 tons of carbon dioxide wasemitted in 2007 for every ton of steelproduced in the USA.3 One of the Americansteel industrys objectives is to reduce thisfigure by lowering the carbon footprint of ourproducts throughout their life cycle, includingthe development of increased resource andenergy efficiency in the production of steeland during the use of steel products. As partof that objective, we actively promote therecovery, reuse and recycling of steel.

American Iron and Steel Institute

If all industries were as interested in

the environment as steel, the habitats

for both animals and mankind would be

dramatically improved. Jan Hartke, former Executive Director, EarthVoice

Industry Commitment

The American Iron and Steel Institute (AISI)

has long identified environmental stewardshipand commitment to sustainability as part ofour industrys strategic plan and our vision forthe future. As we have in the past, we willcontinue to actively examine strategies toadvance that vision and our commitment toglobal leadership for our sector.

As a result of this commitment, we areaggressively seeking ways to reduce ourenvironmental footprint even while producingthe advanced and highly recyclable steel that

our economy needs. In fact, the Americansteel sector is recognized as having thesteepest decline of total air emissionsamong nine manufacturing sectors studied inthe U.S. Environmental Protection Agencys(EPA) 2008 Sector Performance Report.1

The steel industrys long-standingcommitment to sustainability is backed bysignificant investment in state-of-the-artfacilities that improve energy efficiency,



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generated by the production, use and end-of-life (recycling or disposal) phases of aproduct. Of course, some materials are lowerdensity than steel and they might, at facevalue, seem to offer environmentaladvantages. However, LCA demonstrates thatsteel offers superior environmental benefits

largely because of its relatively lowproduction energy (in comparison to othermaterials), its recyclability, structuralprogress and the tremendous processefficiencies the industry has achieved.

Breakthrough Technologies

The U.S. steel industry has the lowest overallenergy consumption per ton of productionand the lowest CO2 emissions per ton ofproduction in the world.8 Production of steelin the U.S. as compared to other parts of the

world is therefore environmentally-preferable.Because of advances in energy managementover the last two decades, U.S. steelmakingprocesses are highly optimized and furtherefforts will be made to continue to achieveincremental improvements. However, in orderto continue to make major reductions infuture energy use, new processes arerequired.

The development of new methods of makingsteel requires completely fresh and innovativethinking into new transformational processes

for making steel.

The American steel industry is currentlyconducting research on the next generationof iron and steelmaking technologies that willdramatically reduce or eliminate CO2emissions. This research is called the CO2Breakthrough Program.9 These newbreakthrough technologies are beingdeveloped over the next 15 to 20 years.Accordingly, any proposed CO2 reductionregulations must recognize the time required

for these technologies to first be fullydeveloped and tested in order from them tothen become commercially available.Widespread adoption of new technologyhistorically has proven to take from two tothree decades in our industry.

An example of a breakthrough technologyproject is the current program withMassachusetts Institute of Technology toproduce iron by molten oxide electrolysis

Recycling

AISIs long-term focus on recycling hasresulted in a continuous steady rise in therecycling rate for steel. For example, the steelcan has outperformed the aluminum can forthe past several years by having a higher

recycling rate.4

The overall recycling rate of steel has reachedan all-time high based on the most recentdata compiled through 2008, with an overallrecycling rate of 83.3 percent.5 As a result ofthis high recycling rate, steel scrap is theAmerican steel industrys number one rawmaterial. Surprisingly, the industry still mustwork to make the public aware that steel isthe most recycled material on the planet. Infact, more steel is recycled each year thanaluminum, paper, glass and plastic combined.

Steel is the engine that drives the recycling ofmany consumer goods as evidenced bycomputed recycling rates for the followingproducts: automobiles (100 percent),appliances (90 percent) and steel packaging(over 65 percent).6

Life Cycle Analysis

Innovation has led to the introduction of awide variety of new steels. In fact, 50 percentof the steels used to make automobiles todaydid not exist just 10 short years ago. The

efficiencies gained from using lighter-weightyet higher-strength steel components areimpressive. Such mass savings not onlyconserve material but, when taken in thecontext of life cycle assessment (LCA), help,as well, to achieve significant emissionsreductions. If, for example, currently availableAdvanced High Strength Steels (AHSS) wereapplied throughout the present U.S.automotive fleet, Greenhouse Gas Emissionsfrom automobiles would be reduced byapproximately 12 percent an amount greater

than the emissions generated by the entireAmerican steel industry today.7 Thisreduction in emissions is, in fact, occurringalready as automotive designers around theworld use increasing amounts of AHSS intheir vehicles.

In considering greenhouse gas emissions, thisLCA approach is essential to measuring thereal environmental impact of a material. Itconsiders the total greenhouse gas emissions




(MOE). The technique generates near-zeroCO2 emissions.

10 A second project calledIronmaking by Hydrogen Flash Smelting,now being conducted at the University ofUtah, replaces carbon as a blast-furnace fuelwith hydrogen.11 These projects representsignificant steps towards carbon-freeironmaking since both will have near-zeroCO2 emissions if successful.

In the nearerterm, AISI members are alsodeveloping the Paired Straight HearthFurnace, a high productivity, low energyironmaking unit that can process steel plantwastes, as well as virgin iron materials. Usingcoal instead of coke, this type of equipmentwill be available for commercialdemonstration in less than five years.

These research investments make clear steels

commitment to a sustainable future. Theresults thus far are promising. AISI recognizesthat these projects represent long-rangeresearch and development that couldfundamentally change the way steel isproduced. With Congress and the countryfocused on the issue of climate change,Americas steel industry is demonstrating thatit will be part of the solution to this challenge.

About the American Iron and Steel

Institute

AISI serves as the voice of the NorthAmerican steel industry in the public policyarena and advances the case for steel in the

marketplace as the preferred material ofchoice. AISI also plays a lead role in thedevelopment and application of new steelsand steelmaking technology. AISI iscomprised of 23 member companies,including integrated and electric furnacesteelmakers, and 138 associate and affiliatemembers who are suppliers to our customersof the steel industry. AISI's membercompanies represent approximately 75percent of both U.S. and North American steelcapacity.

On the Web:http://www.steel.org

Notes

1 2008 DOE Sector Strategies PerformanceReport.2 U.S. EPA Report on Inventory of U.S.Greenhouse Gas Emissions and Sinks 1990 -20053 AISI Statistics.4 Steel Recycling Institute, 2008.5 Steel Recycling Institute, 2008.6 Ibid.7 AISI8 Based on AISI Statistics, world steelstatistics and comparative data analysis.9 Steelmakers to launch CO2 breakthrough

program; international effort aims to developenabling technologies to reduce CO2emissions, November 19, 2003, AISI pressrelease.10 Engineers forge greener path to ironproduction, MIT Newsletter, August 25, 2006.http:web.mit.edu/newsoffice/2006/iron.html11 Environmental Briefing, Washington, D.C.,by Dr. H.Y. Sohn, University of Utah, April2008.


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Public PowerPublic Power


lines owned by others. But, others own avariety of generation and transmissionfacilities in addition to distribution systems.Public powers generation portfolio is diverse,with 36.6 percent of the capacity beingnatural gas, another 27.7 percent coal, 19.1

percent hydropower, 8.1 percent nuclear, 7.8percent oil and .8 percent non-hydropowerrenewables. Approximately 1,000 publicpower utilities also have some form of eitherinternal or external communicationsnetworks.

APPA was established in 1940 as a nonprofit,nonpartisan organization. Its purpose is toadvance the public policy interests of itsmembers and their customers before thefederal government and to provide memberservices to ensure adequate, reliable

electricity at a reasonable price with theproper protection of the environment.

It is important to note that public powerprovides electric service to approximately 15percent of the country. The remaining end-use electricity is provided by for-profit,investor-owned utilities (68 percent), not-for-profit, privately-owned rural electriccooperatives (13 percent) and powermarketers (four percent).

While the definition of sustainability varieswithin the electric utility industry, forpurposes of this discussion, we will focus onboth end-use programs that have beenimplemented by our members to enhanceenergy efficiency and programs to enhanceefficiency at the utility itself (transmission anddistribution line capacity improvements, forexample). Public power utilities continue toseek ways to meet growing electricitydemand and manage increasing energy costs

American Public Power Association

The American Public Power Association(APPA) is the national trade associationrepresenting the interests of the nations2,009 publicly-owned electric utilities in 49states, all but Hawaii, that collectively serve45 million Americans. Publicly-owned electricutilities are not-for-profit public enterprises,often affiliated with the municipalgovernment structure, but others have been

formed on county or state lines public utilitydistricts and irrigation districts are a couple ofexamples. Public-power utilities are locallyregulated by elected or appointed boardsand/or city councils and mayors, which makethem uniquely suited to respond to the needsof their particular communities, and haveoften spurred innovation, as will be discussedin more detail below.

Of the 2,009 public power utilitiesnationwide, 70 percent are located incommunities of 10,000 or less. However,

there are also a number of medium and largecities served by public power utilities,including Springfield, Missouri, Seattle,Washington, San Antonio, Texas, andJacksonville, Florida. This size diversity ismirrored by the diversity of assets owned andoperated by each utility. The majority ofpublic power utilities are distribution systemsthat purchase power from others and pay totransmit the power over large transmission



bond, which allowed them to initiate theirsuccessful energy efficiency program, that isstill in place today. Also, since 1983, EmeraldPeoples Utility District in Oregon has had aresource planning citizens advisorycommittee to help plan the future powersupply resources for the utility, with energyconservation being a key part.

More recently, public power utilities havelaunched aggressive programs to encouragecustomers to undertake a variety of energyefficiency measures. In San Antonio, CPSEnergy undertook the Million BulbChallenge to encourage customers to tradein their incandescent bulbs for energy-savingCFL bulbs. The utility provided rebates forthe bulbs, which are more expensive thanincandescent bulbs, but last longer and usemuch less energy. Within 10 months, the

customers had cashed in and traded nearly1.5 million bulbs. This bulb exchange hassaved more than 3.9 megawatts of electricity,enough to power 2,200 San Antonio homes.

Launched in the spring of 2009, NorthCarolinas Hometown Green program,advertised by the slogan Painting the TownGreen and run by public power utilities in thestate, is intended to raise awareness ofenergy efficiency (and renewable energy)options in the state. Components of theprogram include: energy efficiency kits and

audits; online calculators for determining theenergy use of appliances; and easy-to-usetools for comparing the efficiency ofheating/cooling and water-heating systems.

Beyond these anecdotal examples of a fewpublic power energy efficiency programs,APPA surveyed our members in 2008 aboutthe status of their energy efficiency/demand-side management (DSM) programs. Somenotable results were: 72 percent of therespondents had improved their transmissionand/or distribution efficiency over theprevious five years, and 76 percent had plansto do so over the subsequent five years; 63percent of all respondents had energyefficiency/DSM/energy conversationprograms in place, and 90 percent planned toexpand these programs in the subsequentfive years; the most common programsoffered to commercial and industrialcustomers are energy audits, lighting, billstuffers or newsletters, incentives, rebates or

while reducing the impact of electricitygeneration on the environment. Increasingly,energy efficiency is viewed not as a socialprogram but as a resource that should beincorporated into utility resource planning.

The benefits of energy efficiency programsare myriad. They can provide both capacityand energy savings, lower fuel costs, defergeneration investment and reduce requiredreserves. Given the often high cost of buildingnew generation, as well as the environmentalconsiderations, it can be more cost-effectiveto save kilowatt hours rather than addingthem. In addition, energy efficiency can: helpa utility manage increasing energy costs;provide customers with tools to save energyand have more control over their energy bills;help meet the continued growth in electricitydemand from rising population and the

increased use of larger and moresophisticated electronics products that oftenrequire more electricity than in the past(HDTV, for example); help delay or avoidconstruction of new generation in somesituations; contrastingly, build support fornew generation development once the utilitydemonstrates a commitment to energyefficiency; demonstrate environmentalstewardship by reducing emissions frompower plants; potentially improve a utilitysability to respond to climate change laws orregulations; gives utilities opportunities to

help commercial and industrial customersminimize electricity usage and therebyincrease their profitability, which can alsohelp with economic development efforts inthe community.

Energy efficiency aligns well with publicpower utilities mission to act in the bestinterests of their communities and serve theircustomers at the lowest possible costbecause these programs seek to reduce useand therefore can reduce customers bills. Inaddition, because public power utilities arelocated in their communities and locally-regulated, they can cater their energyefficiency programs to the specific needs oftheir customers. This has resulted ininnovative programs being developed inpublic power communities well in advance ofthe current emphasis on the issue andincrease in federal grant money. For example,in 1990, citizens in Burlington, Vermont, votedto issue a $11.3 million energy conservation


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financing and energy education programs,lighting programs were identified as the mosteffective in terms of reducing demand, savingenergy and customer popularity; and, finally:

Only 22 percent of those public power

utilities engaged in energy efficiency,

DSM and conservation are receivingfederal or state funding to do so.

While more can and will be done on energyefficiency and other sustainable practices bypublic power utilities in the coming years, it isclear that these community-owned utilitiesare responding to their customers needs inthis area, with or without federal mandates orincentives. However, as federal incentives arecreated, it is important to provide parityacross the electric utility sector so that thosecommunities that need additional help to

implement important energy efficiencyprograms can do so.

About the American Public Power

Association

Based in Washington, D.C., APPA is thenational service organization for the nation'smore than 2,000 community-and state-

owned not-for-profit electric utilities serving45 million customers.

On the Web:http://www.appanet.org



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About the American Trucking

Associations

Founded in 1933, the American TruckingAssociations (ATA) is the largest nationaltrade association for the trucking industry.

Through a federation of other truckinggroups, industry-related conferences, and its50 affiliated state trucking associations, ATArepresents every type of motor carrier in theUnited States. ATA strives to serve andrepresent the interests of the truckingindustry with one united voice; to influence ina positive manner Federal and Stategovernmental actions; to advance thetrucking industry's image, efficiency,

reduction program known as the

SmartWay Transport Partnership

program.

Fuel efficiency improvement hinges onreducing the amount of fuel consumed by anentire truck fleet relative to the amount of

cargo moved over a given distance. TheEPAs SmartWay program encompasses theentire freight industry shippers, truckers, railcarriers, even dealer service centers and truckstops. Trucking companies must developthree-year plans to reduce fuel consumptionand greenhouse gas emissions to qualify asSmartWay members and use the programlogo. Since 2004, partners have reduced fuelconsumption by 1.5 billion gallons andreduced CO2 emissions by 16.2 million tons the equivalent of taking 2.88 million cars offthe road. Over the next nine years, CO2

reductions under ATAs plan are estimated at119 million tons.

In an industry with thin profit margins andescalating fuel costs, increasing fuel efficiencyand minimizing fuel consumption are majorgoals of any trucking company. Those goalscoincide with the global need for industries toreduce their carbon footprint and to lessentheir environmental impact. ATA firmlybelieves that advancing therecommendations in its sustainability plan willsignificantly reduce the carbon footprint ofthe trucking industry while moving thenations freight more efficiently.

on truck sizes and weights, increasedvolumes of freight can be moved per amountof fuel consumed. A reduction of 294.7million tons of CO2 could be achieved withthese changes.

4. Congestion reduction improved

highway infrastructure would reducecongestion and further reduce carbon

emissions highway infrastructure

improvements should be paid for with a

dedicated fuels tax if necessary.

Congestion relief is one of the most viablestrategies for reducing carbon emissions.Dealing with the inadequacies and thebottlenecks in the nations highway system isnecessarily a long-range challenge. ATArecommends a 20-year program, with aninitial focus on fixing critical bottlenecks,followed by a program to increase traffic flowin critical freight corridors. Theseimprovements require dedicated revenue,which could be generated by an increasedfuels tax. If congestion in all 437 urban areaswere eliminated, the reduction in truck CO2emissions would be 45.2 million tons over tenyears.

5. Idling pursue a federal solution that

reduces non-discretionary idling

through highway infrastructure

improvements and reducesdiscretionary idling through financial

incentives for technology

improvements.

Idling in congested traffic or running theengine to keep the driver warm or cool whileresting, annually consumes an estimated 1.1billion gallons of diesel fuel. Reducingdiscretionary idling (for truck cab heating andcooling) can be achieved with thedeployment of anti-idling technologies that

reduce fuel consumption. Options currentlyavailable to fleets to minimize idling have thepotential to reduce CO2 emissions by anestimated 61.1 million tons over ten years.

6. Fuel efficiency encourage fuel

efficiency improvement through carrier

and shipper participation in the U.S.

Environmental Protection Agencys

(EPA) voluntary greenhouse gas



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competitiveness, and profitability; to provideeducational programs and industry research;to promote safety and security on ournation's highways and among our drivers; andto strive for a healthy business environment.

On the Web:http://www.truckline.com



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with the local utility, exporting excess powerto the grid. An example of how Cat BGtechnology can be successfully applied is theNong Rai Farm in Rayong, Thailand. TheNong Rai Farm sought a means of tapping itsbiogas resources to fuel electrical generatorsfor on-site power. The farm partners with theCP Group, one of the largest food suppliers inThailand, and operates a feeder operation formore than 30,000 hogs. Nong Rai Farmconsumes approximately 200 kW of powerfor blowers, drying systems and otherauxiliary needs associated with its operations.Cat G3406NA and G3306NA gas generatorsets produce enough power for all of NongRai Farms electric power requirements.

Combined Heat and Power (CHP)

Applications

Combined heat and power (CHP) is theprimary application for Caterpillar subsidiarySolar Turbines power generation products.CHP is the use of a heat engine or a powerstation to simultaneously generate bothelectricity and useful heat. It is one form ofenergy recycling. In this configuration, it ispossible to more than double the usefulenergy output from a typical generator setthrough utilization of the substantial amountof energy in the turbine exhaust stream. Inaddition to this highly efficient form of energyconversion, it is possible for CHP units to

operate on renewable or waste fuels,including landfill gas, digester gas andrefinery off gases.

An application in which Solar Turbinesgenerator sets are prominent is the cokeproduction process of the steel-makingindustry. Turning coal into coke used insteel-making blast furnaces creates gases,which are often released to the air, missing anopportunity to turn waste into energy and atthe same time reduce emissions.

Solar Turbines is helping customers use thegases as a fuel for CHP generation. They canrecycle the gases into much-needed energy,while reducing overall impact on theenvironment. In 2008, Solar customerJinneng, a coal gasification company from theShandong Province of China, became the firstcompany outside of the U.S. to win theEnvironmental Protection Agencys (EPA)International CHP Award. The award is given


Coal Mine Methane (CMM) Applications

Significant methane gas is released during thecoal mining process. Predrainage of the gas istypically required to enhance mine safety.Traditionally, the drained gas is flared orsimply vented to the atmosphere. One

effective use of this CMM is to utilize it in agas engine and convert the chemical energyinto power and heat.

Caterpillar has been involved in providing gasengine technologies for CMM applications formore than 20 years and has participated insuccessful applications around the globe. InChina, ninety Cat G3520 CMM gensets helppower the Jincheng Phase 1 (JC1) CMMproject in Sihe, Jincheng City, ShanxiProvince. Commissioned in 2008, it is theworlds largest CMM cogeneration power

plant. In the JC1 project, both the exhaustwaste heat and the jacket water waste heatare recovered, yielding an overall plantefficiency of over 80 percent. The 180 MW oftotal power produced is exported to theprovincial grid to support the fast growingChinese economy.

Landfill Gas (LFG) and Biogas (BG)

Applications

Methane gas is produced during theanaerobic decomposition of municipal andindustrial solid waste in traditional ormanaged landfills called landfill gas (LFG). Itcan also be produced during fermentation oforganic animal, agricultural and industrialwaste and/or wastewater called biogas(BG). In the past, the LFG and BG were leftuntreated and vented to the atmosphereleading to significant amounts of fugitiveemissions and bad odor. Today, combustionengines are replacing traditional flaringtechniques to reduce and control LFG and BGand to convert it to useful energy.

Caterpillar has been involved in providing gasengine technologies for LFG applications formore than 30 years. One example is theSouth East New Territories Landfill, located inHong Kong. The site installed two Cat G3516landfill generator sets in 1997. Each unit israted at 970 kW, providing 1.9 MW ofcontinuous power for the landfillinfrastructure and an on-site wastewatertreatment plant. The units operate in parallel


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Remanufacturing is an advanced form ofrecycling that transforms end-of-life goodsinto like-original-new products andprovides them to the marketplace on anexchange basis. This exchange processinsures recovery of end-of-life goods so theycan be remanufactured or recycled.Caterpillar has remanufacturing expertise inindustrial gas turbines, diesel and gasengines, powertrain components forautomotive and industrial products, and rail both locomotives and rolling stock. Throughremanufacturing, we make one of thegreatest contributions to sustainabledevelopment keeping nonrenewableresources in circulation for multiple lifetimes.

Studies have shown that the process ofremanufacturing requires 85 to 95 percentless energy and material than manufacturing

the same, new component. Caterpillarsproprietary technologies salvage a significantpercentage of original material, therebyreducing new parts usage. Ourremanufacturing process on averagemaintains 70 percent of the original productmaterials. Remanufactured components arean excellent repair option for customers,offering a same-as-new warranty for afraction of the cost. But remanufacturing isabout more than just cost; its about beingsustainable in our operations. Theenvironmental impact of remanufacturing end

of use products versus creating productsfrom new materials is substantial.

to a CHP system that demonstratesconsiderable fuel and emissions savings overcomparable forms of conventional electricaland thermal energy generation. EPAestimates that this CHP system effectivelyreduces carbon dioxide emissions by 40,000tons per year, which is the equivalent oftaking 6,600 cars off the road.

Progress Rail - Reducing Waste and

Improving Efficiency

Caterpillar subsidiary Progress Rail Services isa leading service provider to the rail industry.Its extensive service and supply networkoperates reconditioning and recycling andreturn programs that harvest reusablecomponents, reduce waste, save energy andminimize the consumption of raw materialsneeded to produce new parts.

Upgrading older, less efficient diesellocomotives to meet more stringent emissionstandards and improve fuel efficiency is oneway Caterpillar helps our rail customers notonly get their work done while meeting theirlong-term sustainability goals but do so whileimproving their operating efficiency.

Progress Rail Services combines its expertisein remanufacturing locomotives withCaterpillars expertise in enhanced electronicsand engine systems integration to reduce

overall fuel consumption significantly by asmuch as 17 to 40 percent and reduceregulated locomotive emissions by 50 to 90percent. Several of the locomotive models arecapable of meeting the U.S. EnvironmentalProtection Agency Tier 2 or Tier 3 locomotiveemissions standards, and certainconfigurations qualify as "Ultra-LowEmissions Locomotives" as defined by theCalifornia Air Resources Board (CARB).

Remanufacturing Energy Efficiency,

Conservation and Customer Value

Caterpillar Remanufacturing & SustainableSolutions Division returns end-of-lifecomponents to same-as-new condition whilereducing waste and minimizing the need forraw materials to produce new parts. CatReman recycles more than 100 million poundsof end-of-life iron annually, much of which isused for remanufactured engine, transmissionand hydraulic components.

About Caterpillar

For more than 85 years, Caterpillar Inc. hasbeen making progress possible and drivingpositive and sustainable change on everycontinent. With 2009 sales and revenues of$32.396 billion, Caterpillar is the world'sleading manufacturer of construction andmining equipment, diesel and natural gasengines and industrial gas turbines. Thecompany also is a leading services providerthrough Caterpillar Financial Services,Caterpillar Remanufacturing Services,Caterpillar Logistics Services and ProgressRail Services.

On the Web:http://www.cat.com



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AgricultureAgriculture

a site-specific application that will, over thelong term:

satisfy human food and fiber needs enhance environmental quality and thenatural resource base upon which the

agricultural economy depends make the most efficient use ofnonrenewable resources and on-farmresources and integrate, where appropriate,natural biological cycles and controls sustain the economic viability of farmoperations enhance the quality of life for farmers andsociety as a whole.

The vast majority of U.S. agriculturalproducers view sustainability through theprism of their ability to increase food and

fiber production more and more efficientlyover a long (sustained) period of time. As awhole, U.S. agriculture has done just that.Food and fiber production has come a longways in the last 50 years. In the 1960s, eachU.S. farmer raised and grew enough foodannually to feed 26 people. In 2010, each U.S.farmer will raise and grow enough foodannually to feed 155 people.

While less than two percent of the U.S.population is involved directly in farming andranching, agriculture supports over 24 millionAmerican jobs. A whopping 42 percent of theworlds corn supply is produced here in theU.S. Farmers and ranchers provide food andhabitat for 75 percent of the nations wildlife.

The efficiencies developed within agricultureover the last 50 years have led to a safe,abundant and affordable food supply for theU.S. population. Today, Americans enjoy theluxury of spending less than 10 percent of

Colorado Farm Bureau

The term sustainability with regard to theUnited States agricultural industry has manydifferent definitional meanings that varygreatly depending on individuals viewpoints.One first needs to ask: can anything really besustainable? What do we want to sustain?How can we implement such a nebulousgoal? Does sustainable agriculture meangrowing food organically or should a farm

which uses conventional methods (fertilizersand chemicals) that has been in operation formultiple generations be consideredsustainable?

The word sustain, from the Latin sustinere(sus-, from below and tenere, to hold), meansto keep in existence or maintain, implies long-term support or permanence. As it pertains toagriculture, sustainable describes farmingsystems that are capable of maintaining theirproductivity and usefulness to societyindefinitely. Such systems, according to one

U.S. researcher, must be resource-conserving,socially supportive, commerciallycompetitive, and environmentally sound.

Sustainable agriculture was addressed byCongress in the 1990 Farm Bill (Food,Agriculture, Conservation, and Trade Act of1990). Under that law, the term sustainableagriculture means an integrated system ofplant and animal production practices having



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It wont be easy. As the global populationcontinues to increase, farmers and rancherswill need to squeeze more and moreproduction out of every available acre and doso year after year. Certainly bio-technologywill play an ever-increasingly important role,as will access to an affordable and abundantU.S. energy supply.

Without access to an affordable andabundant domestic energy supply, U.S.agriculture will not be able to lead the way inmeeting the global food production challengethat lies before us. As a matter of fact, if anaffordable and abundant domestic energysupply is not available here in the U.S., thenfood production could and likely would beginmoving to those areas of the world whereaffordable and abundant energy supplies doexist. It should be a primary concern of most

Americans that we could indeed lose much ofyour domestic food and fiber production in asimilar fashion to what has been lost in thiscountry from an energy productionperspective.

The long-term sustainability of food and fiberproduction here in the United States is fragile.Can the industry sustain increased productionlong-term in an effort to meet increasedglobal food demand? Yes. But only ifagriculture continues to have access to newtechnology and to an affordable and

abundant U.S. energy supply.

Like pieces of a puzzle, it will take all forms ofproduction: conventional, organic andadvanced production methods comingtogether and working in tandem to meet thefuture global demands for food and fiber.Similarly, it will take all types of energyproduction (renewable, conventional oil andgas, clean coal technology and advancednext generation nuclear technology) to meetthe future energy needs of this country andthe world. Together, we can solve both theagriculture and energy puzzles if we put ourminds to it.

their disposable income on food. This is by farthe lowest of any country in the world.To be clear, the business of food productionis energy intensive. Agriculture uses energy inthe form of fuel to operate machinery, naturalgas used in the production of fertilizers andchemicals and various forms of energy topump water for irrigation and to operatedryers to dry grains. In total, U.S. agricultureconsumes approximately 1.5 quadrillion BTUsof energy annually to produce food and fiberfor U.S. and global consumers. This does notaccount for the significant amount of energyused to further process and refine the foodand fiber raised by U.S. farmers and ranchersinto the finished and convenient foodproducts that consumers enjoy purchasing ona regular basis.

The efficiencies that have led to a more

sustainable U.S. agricultural industry havecome in large part through technologyadvancements and specifically through bio-technology breakthroughs. Biologicaltechnology advancements and genetechnology have led to crops that require lesswater or less fertilizer, crops that require lesspesticides and herbicides, all this leading togreater and greater food and fiber productionwhile using less energy-intensive inputs. As amatter of fact, U.S. agricultural producers areproducing more food and fiber in history andthe industry is doing it while using 50 percent

less energy-related inputs than they did justtwo decades ago. This is not only efficient; itis sustainable.

As efficient and sustainable as U.S. agriculturehas become, there are limitations toagricultural-based technology, andeventually, more energy will be required if weare to hope to keep up with the ever-growingglobal demand for food and fiber.

To put this in perspective, the worldpopulation is growing at a rate of 200,000people each day. By 2050, an additional 2.5billion people will inhabit this planet. Farmersacross the world will need to produce asmuch food in the next 50 years then wasproduced in the last 10,000 years combined.That is an awesome challenge for the U.S. andglobal agricultural industryone that theindustry is ready to tackle head on.

About the Colorado Farm Bureau

The Colorado Farm Bureau, as the premiergrassroots organization, promotes the futureof agriculture and protects rural values. It is a




united group of farm and ranch families whocome together for the purpose of analyzingtheir problems and formulating action toachieve education improvement, economicopportunity, and social advancement andthereby, to promote the national well being.

On the Web:http://www.colofb.com


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The logistics industry is already responding toincreased environmental awareness andcustomer demand for greener products.Numerous business initiatives illustrate thatreducing energy consumption (and therebyemissions) also improves cost structures and,

ultimately, bottom lines. For instance,Deutsche Post DHL was the first major postalservices and logistics company to offercarbon neutral products and services and thefirst to voluntarily commit to improving itscarbon efficiency by 30 percent by the year2020. Other logistics providers have followedDeutsche Post DHLs example and begunoffering efficient logistics solutions andcarbon neutral shipping, which providesignificant cost savings through increasedenergy efficiency andgenerate value fromnew products and improved brand

perception.

Specific Tools To Reduce CO2 Emissions

In developing sustainable logistics, solutionsand technologies need to be adjusted ordeveloped. This is true for operations in thelogistics sector where a variety of levers canhelp reduce carbon emissions:

Road Transportation Technologies

Given that road transport accounts for themajor share of fuel consumed by the logisticssector, significant emphasis has been placedon developing hybrid, electric and fuel cellvehicles. These road vehicles are slowlybecoming available on the market, yet highinvestment costs pose a major challenge.Furthermore, up to now, emphasis has beenplaced on the development of passengervehicles, generally ignoring heavy freightvehicles which are indispensable for anefficient logistics industry. And while

LogisticsLogistics

Deutsche Post DHL

Until recently, cost, speed and reliability werethe main criteria by which customersevaluated logistics operations. Yet, researchindicates a changing attitude. Now, a fourthdimension is often included in the decision-making process: sustainability, includingsocial, environmental and economic aspects.The quest for energy efficiency, conservationand sustainability will ultimately transform the

logistics industry. The logistics industry,which includes the entire supply chain, canserve as an example for other industrysectors as they move to become more energyefficient in a new low-carbon economy.

Sustainable logistics is economically viablebecause it contributes to international tradeand greater economic growth. With this inmind, a significant reduction in thetransportation of goods and related servicesis not an option in todays globalized anddeeply interconnected world. However, in

response to market demands, and out of asense of responsibility to customers,employees, and indeed the planet, thelogistics industry should significantly reduceits fuel consumption and thereby its CO2emissions. The industry needs to develop andadopt promising technologies and solutionsthat take into account all three aspects ofsustainability.



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About Deutsche Post DHL

Deutsche Post DHL is the worlds leadinglogistics group. Its integrated companies offertailored, customer-focused solutions for themanagement and transport of goods andinformation through a global networkcombined with local expertise.

On the Web:http://www.dp-dhl.com

report entitled Towards SustainableLogisticswhich will be released in Fall 2010.


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ChemistryChemistry


Chemistry, and therefore Dow, operates atthe nexus between energy and all themanufacturing that occurs in the world today.We have a unique role in helping the worldmanage resources effectively and sustainably and, as a result, a unique role in enabling

individuals, communities and economies toaddress their development needs andopportunities in a way that is both credibleand sustainable.

Chemistrys role in the value chain and Dowsscale and position in global markets give us aunique perspective on the mega trends(Energy, Health & Nutrition, Infrastructure &Transportation, Consumerism) that areshaping societal development and a uniqueopportunity to contribute to solving worldchallenges:

A business needs not only to understand,but also to embrace the mega trends that areoccurring in the world today. Mega trends arethe wellspring of future markets. Manypromising markets have emerged, and we seea new growth of consumerism. This drivesother mega trends that are now linked withsocial concerns, such as demands for higherquality health care, emphasis on a secure andrenewable energy supply and interest inbuilding a more robust infrastructure.

Sustainability must be treated as abusiness opportunity. Sustainability, businessstrategy and brand are the same. If we dontthink that way, we create issues by failing tounderstand unintended consequences onsociety while focusing only on marketopportunities. Finding creative solutions formaking profit andenhancing society shouldbe the prevailing business model.

The Dow Chemical Company

Dow combines the power of science andtechnology with the Human Element toinnovate solutions for a more sustainableworld. With over 96 percent of manufacturedproducts enabled by chemistry, worldchallenges will ultimately be solved bycompanies like Dow, who collaborate withcustomers, industries, governments,academia and civil society. Our innovation

engine is focused on development andcommercialization of carbon mitigation,alternative energy, water purification, cropproductivity, building efficiency and manymore solutions that improve lives whileprotecting the planet. We are as committedto reducing our own footprint as we are todelivering technology that helps the rest ofsociety do the same. In 2006, we establishedour second set of Sustainability Goals, whichwe report on publicly every quarter. Ourcommitment to sustainability is integral toour corporate vision, mission and values

which continue to drive change that is goodfor the environment, good for people andgood for business.

Sustainable Business Value

The Dow Chemical Company is in thebusiness of chemistry a business whereworld challenges have their most basicconnection with sustainable solutions.



households Next-generation high-power batterytechnology for hybrid and electric vehicles,supported by a $161 million federal grant Diesel particulate filters that reduceemissions, for higher performance and lowercost Pilot plant uses proprietary advanced-amine technology developed by Dow andAlstom to capture CO2 from new or existingindustrial facilities Worlds largest bio-derived plastics facilityunder exploration in Brazil to convert sugarcane to polyethylene

Partners for Change

Net-Zero energy home uses 60-70 percentless energy than conventional homes byincorporating a variety of products from Dow Working with Algenol Biofuels to build and

operate a pilot-scale algae-based integratedbiorefinery that will convert CO2 to ethanol Equity investment in WaterHealthInternational to provide sustainable,community-owned water treatment solutionsfor rural villages in India Pledged $1.5 million to The NatureConservancys Atlantic Forest restorationproject in Brazil that will preserve water anddemonstrate carbon capture methods Partnered with The Keystone Center forEducation on high school curriculumencouraging students to use chemistry to

solve global sustainability challenges

Smart Solutions for Today

High-performance epoxies that enablelighter and stronger wind blades Proven heat transfer fluids that collect,transport and store solar generated heat Breakthrough building insulation productsthat help improve energy efficiency and lowerutility bills Plastics and bonding solutions that makevehicles tougher and lighter for increasedsafety and fuel efficiency Water filtration systems that treat 9 billiongallons of water every day, including energy-reduction goals for desalination

Responsible Operations

Since 1990, we have reduced our owngreenhouse gas emissions more than 20percent, exceeding Kyoto Protocol targets Over 270 Product Safety Assessmentsposted on our website with goal of all

A business strategy must be executed tobenefit the three pillars of sustainability:economic, social and environmentalconditions. Together, these three ideas definethe rules and parameters under which acompany can contribute to sustainableprogress. Products are discovered andmanufactured through science andengineering to meet customer wants andneeds. The impact of a product, however,extends beyond the question of whether thecustomer will purchase it. Products need tobe measured across their life cycles, fromproduction and consumption through end-of-life, balancing the impacts to the natural,social and economic environments. If any oneof these three conditions is met at theexpense of another, the success of a productwill ultimately fade. Sustainability mustconnect to the conscience of an organization,

but just as importantly, it needs to be seen asa platform for dynamic business growth,innovation, talent development and capitalinvestment.

Game-changing Goals

To meet these commitments, any companythat is serious about sustainability must adopta culture of continuous improvement. In 1995,we set important public goals for improvingour environment, health and safetyperformance. We have met or exceeded most

of those goals, have come very close inothers and continue to strive to improve uponall of them. As a result, our workplaces aresafer, our facilities are cleaner, our energy useis more efficient, and our corporategovernance is stronger and more vigilant.

In 2005, we set the bar even higher with theintroduction of a more ambitious, next-generation set of goals. These 2015Sustainability Goals focus our efforts beyondour own walls, committing Dow to strongerrelationships within the communities wherewe operate, improved product stewardshipand accelerated innovation to solve some ofthe worlds most pressing problems andreduce our global footprint.

Dow Sustainable Solution Snapshots

Innovations for Tomorrow

Solar shingles that will make harnessingenergy from the sun practical for common


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About The Dow Chemical Company

Dow combines the power of science andtechnology with the Human Element to

passionately innovate what is essential tohuman progress. The Company connectschemistry and innovation with the principlesof sustainability to help address many of theworld's most challenging problems such asthe need for clean water, renewable energygeneration and conservation, and increasingagricultural productivity. Dow's diversifiedindustry-leading portfolio of specialtychemical, advanced materials, agrosciencesand plastics businesses delivers a broad rangeof technology-based products and solutionsto customers in approximately 160 countriesand in high growth sectors such aselectronics, water, energy, coatings andagriculture. In 2009, Dow had annual sales of$45 billion and employed approximately52,000 people worldwide. The Company'smore than 5,000 products are manufacturedat 214 sites in 37 countries across the globe.

On the Web:http://www.dow.com

recipient of the Responsible Care EnergyEfficiency Award.

Delivering Results

Dows sustainability commitments come withan expectation of economic return on

investment. When we set our firstsustainability goals, we projected we wouldspend roughly $1 billion to fulfill them, and weexpected a return on investment of roughly$2 to $3 billion yet, our return oninvestment has been in excess of $5 billion.The more we have focused our attention onsustainability, the better our yields. The fewerresources we have consumed, the better oureconomic performance.

To be sustainable, a company must makeproducts or deliver services that meet

economic, environmental and social needs inan integrated way. The Dow ChemicalCompany strives to be sustainable and tocontribute to solving some of the worldsmajor challenges. It is our aspiration to set thestandard for our industry in the sustainableapplication of chemistry nothing less will do.

applicable Dow products posted by 2015 Terneuzen, Netherlands site re-usesmunicipal household waste water to savewater and energy Implementation of Nalco cooling watertechnology at our largest plant in Freeport,Texas resulted in annual water savings of 4billion gallons

The Energy Equation

Dow is an industry leader in energymanagement and greenhouse gas (GHG)emission reductions. Energy efficiency hasbeen part of our heritage since the very earlyyears of our company, when Dow helpedpioneer the use of industrial cogeneration torecover waste heat to make power and steamin manufacturing products more efficiently.Since 1994, Dow has saved 1,700 trillion Btu,

which is equivalent to the electrical energyused by all residential buildings in Californiafor a full year.

Dow is one of the largest producers ofinnovative products that reduce energy use.Dow products range from building insulationapplications, solutions for fuel-efficientvehicles, technology to enable wind powerand integrated solar systems for buildingmaterial applications. Specific examplesinclude:

Dows chemistry is essential to three 50-megawatt solar units in Spain. Using a mix ofspecialized heat transfer fluids(DOWTHERM A) to help convert heatenergy into electricity, the plants willgenerate 150 megawatts of clean energy,enough to power 90,000 homes and save450,000 tons of CO2 per year.

Dows building insulation products, likeSTYROFOAM Brand Insulation, can save upto 20 percent on heating and cooling costs,and avert hundreds of millions of metric tonsof CO2 each year. Installed in more than 20million buildings worldwide, STYROFOAMBrand Insulation insulates over 20 billion ft2,saving more than $10 billion in energy costsannually.

For its past efforts, Dow has been recognizedby the U.S. Environmental Protection Agency(EPA) as an Energy Star Partner of the Yearand by the American Chemistry Council as a



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Window FilmWindow Film

basis. Specifically, window film provides areduction in solar gains by allowing solar heatand visible light in but providing glare controland protection from UV (both for personaland property protection); its like havingsunglasses on your windows. In northern

climates, window film can lessen losses ofroom heat in winter and provides increasedprotection from UV damage whichsurprisingly is stronger in the winter months,as there may be less natural shading.Additionally, the angle of incidence of UVrays reaching earth is increased the fartherthe location is from the equator, allowingmore UV to penetrate the earths outeratmosphere. This can result in a higherrelative amount of ultraviolet energy gettingthrough during December in Connecticutthan in Florida in July. Window film may also

provide safety and security benefits bycontrolling what happens to glass fragmentsif a window is broken due to any cause. Mostnotably, break-ins and smash-and-grabs maybe avoided as window film can hold the glassfragments in the frame, attached to the film,in effect preventing easy access and furtherdemonstrating how window film provides anefficient and effective form of physical energycontrol.

Advancements and Safety

Advancements in window film of which thepublic may not be aware include scratchresistant technology which allows for easierinstallation and enables windows to lookbetter longer. For both commercial managersand home owners, maintenance with windowfilm is easily maintained with any normal typeof non-abrasive window or glass cleaner.Window film may also be the clearestsolution, in some cases with no added color

International Window Film Association

Window film has a proven place in the currentenergy efficiency landscape. Today, there aremore than 6,000 local window film dealersand installers in the U.S. all working towardcreating and providing greater energyefficiencies through the use of cost-effectiveand environmentally-friendly products. Theuse of window film is becoming morecommonplace and more property managers

and consumers are starting to see the manybenefits of window film including energycontrol, cost savings and improved safetyand security. The primary barrier today to thebroader adoption of window film is the lackof mainstream awareness of these benefitsand the financial incentives available andquick rate of return the technology yields.With so many indisputable benefits toimplementing window film, it is important toeducate the consumer. With a betterunderstanding of the overall benefits inregards to energy savings, safety and

financial incentives, window film has anopportunity to support cleaner and moreaffordable energy efficiency and increaseoverall utilization.

Energy Savings and Safety Benefits

Overall window film provides significantreduction in energy demand, providingsubstantial energy savings for a long-term



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of glass or 20 windows) would beapproximately $1,000-3,500 for window film,depending on the climate zone and productchosen while replacing all the windows couldcost $6,000-$15,000 with warranties ofperformance being generally comparable.

Industry Usage

Almost 200 window films now have beencertified by the National Fenestration RatingCouncil (NFRC) for their energy performancespecifications. NFRC is the only third partycertification organization in the fenestrationindustry that has been recognized by the U.S.Congress. Window film now meets the sametesting criteria for verifying its energyefficiency as windows, doors and skylights,making window film a clear choice for manyleading industries. Government buildings

have been using window film both for energyimprovements and for mandatedimprovements in safety performance of theglass contained in those buildings. Windowfilm has been proven to control glass duringseismic movement; it provides hazardmitigation in bomb blasts and during windstorms, protection from UV, reduction of heatloss in winter and solar heat gain in summer,providing year-round glare control andoccupant protection. Office buildings, hotelsand motels (lodging) and institutionalbuildings (hospitals, schools, historic

buildings, information storage facilities likepost offices, courthouses and libraries) arethe top window film commercial users acrossthe country.

Future of Window Film

With so many indisputable benefits toutilizing window film, it is still important toeducate the consumer. Many misconceptionsstill exist. The use of window film will notdamage the integrity of the existing window

if you put the right film on a window, it worksand it has been proven to do so. Thanks tomore advanced technologies andimplementation techniques, it is easier thanever before to incorporate window film intoenvironmental sustainability plans. Not onlydoes the use of window film provide financialbenefits by reducing energy costs andexpenditure to achieve the solution, it lessensa buildings carbon footprint. There is atremendous opportunity for more industries

unless desired by the customer. Windom filmcan be purchased from dark hue all the wayto clear film, but what is most impressive isthat no matter what color you choose, youmay still achieve the same amount of energycontrol. Since much of any coloration comesfrom the metals used within the films, theresult is greater color stability, thus adding toits long lifetime. Today, films can stop 50-85percent of all solar energy coming throughwindows without being dark or shiny a bigmisconception with the public.

Environmental Benefits

In addition to its safety features, energycontrol and ready availability, window film isenvironmentally-friendly. When compared tothe time and energy involved in replacingwindows versus installing window film, the

benefits to the environment areoverwhelming. Simply put when film isinstalled on an existing window, theenvironmental cost of manufacturing anentire new window is avoided. Whenreplacing entire windows the removal anddisposal of the old windows must also betaken into account. In some cases only aportion of a window can even be recycled.Moving forward, this may be more of thecase, as many existing window now havevinyl frames which create waste disposalissues since they may not be recyclable.

In addition to the environmental costs ofremoving and disposing of windows, anotherwaste of energy comes from then having toactually manufacture new windows. Manynew windows have vinyl frames and at leasttwo panes of glass with at least one pane, ifnot two or more, treated with specialcoatings. All of these steps create hugeenergy and environmental costs that mightbe avoided through the use of window filmon the existing window.

There are many other significant financialbenefits to using window film that may varysubstantially from market to market due tolocal labor or business costs. Some examplesof these include the ability to put windowfilms on all windows of a house for a fractionof what it would cost to replace all of thosewindows. The cost comparison of retrofittingexisting windows for an average home: a2,000 square foot home (about 300 sq feet




to incorporate window film into their budgetsand reduce their consumption of traditionalenergy sources while educating the nextgeneration on the importance ofconsideration of this technology toadequately address future environmentalconcerns.

About the International Window Film

Association

With so many indisputable benefits toimplementing window film, it is important toeducate the consumer. With a betterunderstanding of the overall benefits inregards to energy savings, safety, andfinancial incentives, window film has an

opportunity to support cleaner and moreaffordable energy efficiency and increaseoverall utilization. The mission of the IWFA isto partner with our manufacturers and othermembers to increase consumer awarenessand demand for all types of professionally-installed window film products.

On the Web:http://www.iwfa.com


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Home ConstructionHome Construction


conservation, sustainable or recycledproducts and attention to indoor air qualityinto the everyday process of home building.In fact, nearly 20 percent of new homesgarnered Energy Star certification in 2009 up from about 12 percent the previous year.

Green products like paints made with fewernoxious chemicals, or countertops made withrecycled content used to be available onlyby special order. Now, theyre stocked bybib-box home improvement stores.

At the s

Energy Day 2010 Sustainability Publication

Documents

Transcript of Energy Day 2010 Sustainability Publication