Creating an Energy-Efficient World

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Silver Anniversary Issue 25-Year Retrospective and 2001 Annual Report Creating an Energy-Efficient World ALLIANCE TO SAVE ENERGY

Transcript of Creating an Energy-Efficient World

Silver Anniversary Issue

25-Year Retrospective and 2001 Annual Report

Creating an

Energy-Efficient World

ALLIANCE TO SAVE ENERGY

…the Alliance to Save Energy was born. Its birth was prompted by the energy crisis of the ‘70s.

The OPEC oil embargo.Resulting gasoline and heating oil shortages.

Long lines at gas stations.President Jimmy Carter in a cardigan urging Americans to conserve energy.

These searing images brought home to Americans our dependence on foreign oil

and our national security vulnerability.

Since then, exciting energy-efficient technologies promoted by the Alliance

have made great strides in reducing energy use and related business and homeowner energy bills while also benefiting the economy, environment,

and energy security.

Once again, much more searing images— the terrorist attacks of September 11 —

drive home the threat to our national security that stems from our dependence on foreign oil

from one of the more unstable areas of the world.

In the intervening years between these pivotal events, the Alliance has accomplished much —

now working in two dozen countries on five continents.Yet, much still remains to be done to stem unnecessary energy waste

in our businesses, homes, and vehiclesto create an energy-efficient world.

Please join with us.

25 Years ago...

Alliance to Save EnergyFirst 25 Years on the World Stage

1973OPEC oil embargo. Politiciansand average citizens realize theperils of foreign oil dependenceand economic importance ofenergy.

1977Alliance toSave Energyfounded. Two foundingsenators—Republican

Charles Percy and DemocratHubert Humphrey—believe abipartisan energy-efficiencyeffort is essential to preservingthe American way of life.

U.S. Department of Energy created. President Jimmy Cartersigns legislation creating a fed-eral department to coordinateenergy policy and programs;energy-efficiency and renew-able energy programs receivemajor funding support.

1978Automobile fuel efficiencystandards (CAFE) take effect,resulting in a doubling of theaverage new car’s fuel efficien-cy—eventually saving the U.S.2.8 million barrels of oil per day.

Alliance TV spokespersonGregory Peck promotes energyconservation in major publicservice ad campaign declaring,“Let’s Not Blow It, America.”

1979At home, the partial meltdownof Three Mile Island (TMI)nuclear reactor ends neworders for U.S. nuclear powerplants. In the Middle East, the Iranian revolution gener-ates a second world oil crisis.Oil prices double and plungethe industrial world into arecession.

Alliance Board member RobertStobaugh’s popular book,Energy Future, popularizes anew solution to energy woes —energy efficiency.

1984Alliance develops training and technical assistance program on Energy SavingPerformance Contracting(ESPC), an innovative, privatesector financing technique forenergy-efficiency projects.

1986Worst nuclear disaster ever at Chernobyl power plant. Also,world oil prices collapse amida perception of plentitude.

To increase home weatheriza-tion savings, Alliance, underChair Senator John Heinz, initi-ates national training programsand demonstrations. More than2,000 heating techniciansattend workshops in 23 states.

1987Ending the ‘Appliance Wars,’President Reagan vetoes, thensigns the National Appliance

EnergyConservationAct, mandatingfederal energy-efficiency stan-dards for manycommonly usedappliances.

1988Americans drive more than 2 trillion miles for the first time ever; at the current rate of increase, the nation is pro-jected to hit the 3 trillion markin 15 years—triple 1968’s level.

Alliance Chair Senator TimWirth holds hearings on global climate change andcalls for greater focus on energy efficiency.

Alliance organizes emergingenergy-efficiency industryto make its voice heard onnational energy policy issues,including Federal EnergyManagement Program, international investmentissues, and the Energy Policy Act of 1992.Black for World Events

Purple for Alliance Events

1991Gulf War. International atten-tion focuses on energy issuesas U.S. leaders initially citeenergy vulnerability to justifymilitary involvement.

EPA creates Energy Star’s predecessor, Green Lights:first voluntary energy-efficiency effort, ushering in a new era of nonregulatorymarket transformation initia-tives. The Alliance follows suit with its Green Schools,Steam Management, andEfficient Windows Collaborative programs.

U.S. government facilitieswaste more than $1 billionannually of taxpayers’ money,reveals Alliance’s Energy Use in Federal Facilities:Squandering Taxpayer Dollars and NeedlesslyPolluting Our Environment.

1992PresidentGeorge H. W.Bush signscomprehen-sive EnergyPolicy Act,including

major provisions to improvefederal energy management,building codes and lighting,equipment standards, andhome energy ratings, owing inlarge measure to the 1991Alliance report and Allianceadvocacy.

UN Conference on Environmentand Development in Rio putsclimate change debate and therole of country-wide energy useand the fight to diminish green-house gas emissions into theinternational context.

1993President Clinton proposessmall Btu tax that could helpstimulate investment in energyefficiency; Congress forcefullyrejects his proposal.

Throughout the ‘90s, theAlliance spurred the creationof numerous groups, includingthe Business Council forSustainable Energy, theBuilding Codes AssistanceProject, the Export Council forEnergy Efficiency, theNorthwest Energy EfficiencyCouncil, India’s Council ofEnergy Efficiency Companies,and the Ghana EnergyFoundation.

1994U.S. oil imports exceed domestic oil production for first time in nation’s history. The latest culprits: light trucks,SUVs, and other low-efficiencyvehicles clogging U.S. roadways.

U.S. energy-efficiency industry asks Alliance toorganize efficiency export missions in Mexico, and soonafter in China, Brazil, India, andseveral other countries. Theseseminars marshal businessexpertise to educate decisionmakers and expand markets for efficiency worldwide.

1995Congressional attempts to roll back major funding andregulations for energy efficien-cy are defeated. Led by AllianceChair Senator Jeff Bingamanand Co-Chairs Senator JimJeffords and Representative Ed Markey, the Alliance coordi-nates the energy-efficiencyindustry’s work to hold the line.

Alliance returns to broadcast-ing public service announce-ments. The Alliance launchesthe first of three major publicservice announcement (PSA)campaigns in the ‘90s, againtaking its message of energyefficiency directly to theAmerican people.

1996Alliance opens first overseasoffice in Russia, followed byoffices and representatives in Ukraine, Serbia, Ghana,Thailand, and elsewhere on five continents.

1997Renewed interest in energyefficiency following the KyotoConference on Global ClimateChange. International attentionfocuses on the environmentalconsequences of fossil fuelcombustion and CO2emissions.

1998 Alliance releases Leading byExample report on annualenergy waste by federalgovernment. Nine months later,Executive Order FEMP 13123

mandatesstricterefficiencymeasuresat federalfacilities.

1999 Eight of the 10 hottestsummers ever recorded occurin the ‘90s, providingadditional evidence of climatechange, while the increasedenergy demand for airconditioners and otherappliances stretches the power grid to its limit, testing electricity reliability in many areas.

2000Two auto companies debuthybrid cars with highlyefficient gas-electric engines.Mileage exceeds 45 mpg.

Blackouts stun California,threaten many other regions.Energy moves to front burneras electricity, gasoline, heatingoil, and natural gas pricesskyrocket in much of U.S.

Breakup of Yugoslavia createspower shortages during winterheating season. Allianceresponds with emergencyprogram to educate Serbiansabout measures to reduceelectric heating requirements.

2001 President George W. Bushdirects Vice President DickCheney to develop a National

Energy Plan.Alliance criticizesreport asimbalanced fordownplayingimportance ofenergy efficiency.

Alliance bestows highesthonor on New York GovernorGeorge Pataki at the Alliance’sEvening with the Stars ofEnergy Efficiency. Patakiaccepts the award one monthafter the September 11 terroristattacks, telling attendees“Energy security is nationalsecurity, and energyefficiency boostsboth.”

Energy SecretarySpencer Abraham,former CIA ChiefJames Woolsey, andothers speak atAlliance’s firstAssociates Summit onEnergy Efficiency, whichspotlights energy security.

2002 Congress refuses the once-in-a-decade opportunity to shoreup automobile fuel efficiencystandards.

Alliance TV ad is selected byCBS-TV World’s GreatestCommercials as #2 worldwidecommercial; #1 in UnitedStates. “Static ElectricityHouse” uses humor to wow TV executives and sell homeenergy efficiency and EnergyStar message to the public.

Alliance celebrates 25 years ofleadership in promoting energyefficiency worldwide. Led by itschairman, Senator ByronDorgan, and its CEO, DavidNemtzow, the Alliance — withits Board, corporate members,staff, and many partners —celebrates a 25-year history oflinking government, business,environmental, and consumerleaders in a bipartisan effort topromote energy efficiency.

Alliance To Save Energy2

The year was 1977. Roots mesmerized us. TheYankees trounced the Dodgers in the World Series. A first classstamp cost 13 cents. Disco feverswept the country. Anotherbanner year for the AmericanWay of Life. But not quite.Because three years earlier, the OPEC oil embargo exposedan embarrassing Achilles heel in the American Way: a perilousdependence on imported oil.Suddenly, in mile-long lineseverywhere, our mammothAmerican cars were queued up for hours at the pumps for a pauper’s ration of a fewgallons each.

That ugly energy crunch stungCharles Percy, Republicansenator from Illinois. “I was anartillery gunner in World War IIwhen America was underattack,” recalls Percy, “but Inever saw the American peopleso vulnerable as when thatembargo hit.” Ever since theembargo, Percy had beenworking on an idea to fight thatvulnerability. In 1977, he wasready to move on it. He called onfellow Senator Hubert Humphrey(D-Minn.), then seriously ailing,to ask his support from the otherside of the aisle. “Think it over,Hubert,” said Percy after he

described the idea. Humphreydidn’t wait. “Of course I’ll joinyou, Chuck. This may be thesingle most important thing wedo in our lifetime.”

That idea was not just anotherSenate committee or blue ribbonpanel. Rather, it was to create an “Alliance to Save Energy”—a novel breed of nongovern-mental animal. It would cutacross American life, drawing in government, business,consumers, and labor around a strategic elemental focus: the premise that national energysecurity is in everyone’s interest,and the smartest way to achieveit—all the more powerful for itssimplicity—is to “save energy.”This would be the organizationto research, originate, initiate,communicate, and advocatefresh ways to increase America’senergy independence. Percy andHumphrey would launch it asbipartisan co-chairs.

The next step was to bringbusiness on board. Percy, whoheaded Bell & Howell beforecoming to the Senate, knew howto work the business community.Percy packed this Board withhigh-profile, blue-chip corporateleaders—Henry Ford II of FordMotor, Thomas Watson, Jr. ofIBM, David Packard of Hewlett-Packard, and Thomas Murphy of General Motors. The first chair of the parallel Board ofAdvisors was Henry Kissinger,U.S. Secretary of State (’73-’77).

Fast-forward to 2002. It’s been a quarter century since Percy and Humphrey threwout the first ball. Over that time,the Alliance to Save Energy has racked up a reputation asthe place to go to when theissue is energy.

Small wonder. Ever since itskickoff, the Alliance has had astellar run of chairmen—all U.S.senators: Percy, H. John Heinz,Daniel Evans, Tim Wirth, and JeffBingaman. Currently the Allianceis chaired by Senator ByronDorgan (D-N.D.); its co-chair isDean Langford, who, for 18 yearsran OSRAM SYLVANIA, thenation’s leading energy-efficientlighting company. The Alliancehas also built a top-flight

A Retrospective of the First Quarter Century of the Alliance to Save Energy

In the Cause of Energy Efficiency

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“The Alliance has the bestinformation on energy, the

best access to energy-efficiency advocacy andadvocates, and the best

meeting place forconstituencies on every side in energy issues.”

—Dean Langford, formerCEO of OSRAM SYLVANIA

Retrospective 3

staff—currently more than 60professionals and support staffworldwide—led since 1994 with unrelenting high energy by Alliance President David M.Nemtzow.

Over the years, the Alliancegradually found its one-of-a-kindshape: a hybrid that mirrors itsself-definition as an “alliance” of multiple constituents. It’s parttrade association, part edu-cational nonprofit, part coalition,and part think tank—withAlliance Associates that rangefrom more than 70 corporationsand trade associations to stateenergy organizations to researchgroups.

“But the real story of theAlliance,” says Nemtzow, “is the way our mission—savingenergy—has taken on a life and depth of its own,transforming as the worldaround it has transformed.”

Early on, the Alliance, joiningwith Harvard University,organized a major nationwideconference on energy policy atDumbarton Oaks in Georgetown,headlined by Saudi Oil MinisterSheikh Yamani. Early on too, theAlliance turned heads in the way it stepped onto the mediastage with its first message. In1978 on TV screens acrossAmerica, the dusty, empty imageof a Western ghost town poppedup, with an ominous message:“Let’s not blow it, America!” The messenger was movie actorGregory Peck, warning that if wedidn’t conserve our preciousresources of fossil fuel, Americacould turn into a ghost town.These Alliance TV spots landedmore than $100 million in freeairtime from the networks forthe “save energy” message.

That first simple statement ofthe Alliance cause—for the sakeof national security, saveenergy—hit a political bull’s eyein the late ’70s. But as the ‘70sgave way to the ’80s, thenation’s fuel gauge moved backtoward “full,” and the memoryof the OPEC oil embargo paled.And the new administration ofRonald Reagan nixed the notionof skimping on energy andturned off federal funding forenergy-saving demonstrationtechnologies to achieve energyindependence.

“But the strength of the Alliancewas its ability over time torespond to changing issues,”recalls Jim Wolf, executivedirector of the Alliance throughmost of the ’80s. Which is justwhat the Alliance did: modulatethe save-energy issue from

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“energy independence” to “theeconomics of energy.”

Consistent with this message,then-Alliance Chair John Heinzspearheaded regulatory changesto shift a portion of federalenergy subsidies for low-incomehouseholds toward measures tomake those households moreenergy efficient. Heinz alsoshifted the energy debate to theeconomy—the threat of job lossas high-cost, energy-inefficientplants in America’s industrialheartland were losing theirformer competitive edge. “Theenergy politics of the Reaganyears meant that for a while weshrank in size,” recalls AllianceVice President Mark Hopkins,“but we grew in our focus onresearch and innovative cost-related energy programs. It wasa time of new thinking.”

Then came 1986, when oil pricesskidded from $30 to $12 abarrel. The argument of cost-saving economics in energyefficiency fell on deaf ears.About this time Senator TimWirth took over as Alliance chair,and under his leadership a freshstrategy emerged: to focus thecause on “smart energy”—namely, tapping technology tocreate products that not only eatup less energy and so saveenergy dollars, but also makethe home and the workplacemore comfortable, moreproductive, more efficient. It wasa smart spin on smart energy:Have your cake and eat it too!

To this end, the Alliance joinedforces with companies whosebusiness was precisely that: to improve our quality of lifewith energy-efficient productsand services—Whirlpool(appliances), Johns Manville(insulation), Fannie Mae(lending), Honeywell (controls),Andersen Corporation(windows), and Home Depot(home improvement). Throughthis partnership, the Allianceplayed a pivotal role in achievingsome great advances in sewingenergy efficiency into the

fabric of American life: energy-efficient building codes, energy-smart appliances, and managingdemand at electric and gas utilities.

This focus on smart energyproducts and systems wouldalso waken yet anotherdimension that had lain largelydormant in the save energycause: namely, that energy-efficient products not only savemoney by burning less energy todo a job, they also spew lesspollution into the environment.This benefit got little attention inthe world of the ‘70s but wasinescapable in the ‘80s aspollution from coal-fired powerplants condensed and fell asacid rain. And by the ’90s, thespecter of global climate changefrom fossil fuel carbon dioxideemissions transformed energypollution into a global issue.

In the forefront of those willingto recognize this fact publiclywas Alliance Chair Senator TimWirth—the first senator toconduct hearings on the newthreat of global climate change.And the Alliance joined rankswith the EnvironmentalProtection Agency and theDepartment of Energy inpromoting the Energy Starprogram, which helpsconsumers choose energy-efficient homes and appliances.

During the early ’90s, theAlliance also regularly appearedbefore Congress to advise onways to boost energy efficiencythrough federal energymanagement, efficientequipment, and energy-efficientbuilding codes. This sustainedAlliance legislative thrust playedan important role in the passageof the Energy Policy Act of 1992.

Widening concern about thedegrading global environmentwas also raising calls forsustainable development inAsia, Africa, Latin America, andparticularly in the republicsnewly released from theunraveled USSR. Energyefficiency would make economicsense for these countries, whoseeagerness to industrializethreatened even more pollutionand higher costs from their long-subsidized, aged, grosslyinefficient plants and energydistribution infrastructures. “We spotted this globalphenomenon,” says formerAlliance President (’91-’94) BillNitze, “as a window ofopportunity for the Alliance toexport the shared lessons wehad learned so well at home.”

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“Let’s not blow it,America!”

– Gregory Peck, 1978

Retrospective 5

The U.S. Agency for InternationalDevelopment (USAID) welcomedthe Alliance as a valuable newpartner in the world arena,bringing much-needed energy-efficiency expertise to bear onthis new notion of sustainabledevelopment.

And so, the Alliance launched its international operations,starting with a small initiative in Kaliningrad, Russia. Today,those operations extend to two dozen countries on fivecontinents, working with localgovernments, businesses, andconsumers. The Alliance bothadvises and delivers hands-onhelp in these countries todevelop national energy policies,set appliance standards, makepublic utilities energy efficient,and educate consumers on thepayoffs of energy efficiency. It also opens links betweenproducers of energy-efficientproducts and users ininternational markets.

A sampling of Allianceinternational program namesreflects the variety of theirreach: Sustainable Cities…Energy Efficiency IndustryPartnerships …Green Schools …Municipal Networks for EnergyEfficiency.

Back Again to 2002. Time now for a retrospective chatwith Alliance President DavidNemtzow in the Alliance’sWashington, D.C., headquarters—a miniworld itself of energy-smart lighting, office equipment,and appliances as well as ashowcase for energy-efficientproducts and technologies.

So, he is asked, how far has theAlliance come in its first quartercentury? “A long way,” heanswers, “in so many ways.We’ve become more sophis-ticated and effective politicallyand in our communications.We’ve grown the depth andrange of our programs with

business, with consumers. We’reshowing them that efficiency isthe quickest, cheapest, andcleanest energy choice.” TheAlliance now has an operatingbudget of $8 million a year.

Politically, the results arenoticeable. Reflecting on theAlliance’s effectiveness, ThomasR. Kuhn, president of the EdisonElectric Institute, said of theAlliance: “This is politics at itsbest; it’s business at its best; it’s community involvement at itsbest. It is indeed Washington at its best. . . ”

In communications, the Alliancereturned to the air in 1995 withan ongoing stream of award-winning PSAs on TV and radio.The Alliance’s humorous “StaticElectricity House” TV PSA wasfeatured on “Best Commercials”shows on CBS, ABC, and theBBC networks. But humor is onlyone tactic. Nowadays, whereverthe topic is energy, the Alliance’smessage of energy efficiency is apart of the dialogue.

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Alliance To Save Energy6

September 11, 2001The events of that sorrowful dayushered in a new, resistantbreed of world-scale terrorismaimed at the Americanhomeland. With it, the issue ofnational security—and the risksof depending on foreign oil fromunstable regions of the world—returned to center stage inAmerican life. As the spirit ofNew York rose phoenix-like fromthe ashes, its governor, GeorgePataki, was the honored guestspeaker at the Alliance’s Eveningwith the Stars of EnergyEfficiency. His message: “In the21st century, energy security isnational security, and energyefficiency is the best way tobolster energy security.”

It is as if the theme of theAlliance’s original missionstatement, born of concern fornational security, has come fullcircle. But it’s not really that themission has changed over theyears, but rather has taken onmultiple voices, as called for bythe times. It’s been a quartercentury of hard work in raisingnational awareness of how

valuable energy efficiency is tothe quality of life and the futureof America—and now, of raisingthat awareness at the globallevel too. The fruit of that work isin the breadth of the companythe Alliance has kept over theseyears. A telling instance is theAlliance’s now annual AssociatesSummit on Energy Efficiency,which pulls together leadersfrom virtually every major sectorand constituency affected byenergy use, as well as publicofficials, and the media. Featuredspeakers in 2001 included

Energy Secretary SpencerAbraham, Senate Energy ChairJeff Bingaman, and former CIADirector James Woolsey.

The work never stops. It’s anunrelenting campaign to winminds and hearts worldwide—raising awareness of all we cando to create a more energy-efficient world. As Nemtzow putsit: “It’s not just a question of ussaving energy, but of energyefficiency saving us.”

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CBS’s 60 Minutes asked Alliance President David Nemtzow why there

aren’t more fuel-efficient cars and trucks being made. Nemtzow said

that the automakers “are using the technology on select models, but

not throughout the fleet… Oil dependence is a national problem… and

Washington, DC should be requiring the automakers to do better.”

“In the 21st century, energysecurity is nationalsecurity, and energy

efficiency is the best way tobolster energy security.”

– New York GovernorGeorge Pataki

Alliance to Save Energy Board and Officers

Annual Report 7

Honorable Byron L. DorganUnited States SenateChair

Honorable Jeff BingamanUnited States SenateVice Chair

David M. NemtzowPresident

Charles H. PercyFounding Chair

John AdamsPresidentNatural Resources DefenseCouncil

Henri-Claude BaillyPrincipalResource Capital Group

Stephen BrobeckExecutive DirectorConsumer Federation of America

Dr. Marilyn A. BrownDirectorEnergy Efficiency and RenewableEnergyOak Ridge National Laboratory

James H. DeGraffenreidt, Jr.Chairman and CEOWashington Gas

Thomas K. DreessenPresident and CEOEPS Capital Corporation

Dean T. LangfordFormer PresidentOSRAM SYLVANIACo-Chair

Michael E. BarrettPartner, Ernst & YoungTreasurer

Honorable James M. JeffordsUnited States SenateVice Chair

William M. FlynnPresidentNew York State Energy Researchand Development Authority

John C. FoxManaging DirectorPerseus, L.L.C.

S. David FreemanChairmanCalifornia Consumer Power andConservation Financing Authority

Donald L. GarofaloPresident and CEOAndersen Corporation

Michael P. KaneSenior Vice PresidentInsulation GroupJohns Manville

William J. KeeseChairmanCalifornia Energy Commission

Honorable Susan CollinsUnited States SenateVice Chair

Honorable Edward J. MarkeyUnited States Houseof RepresentativesVice Chair

Mark HopkinsSecretary

Thomas R. KuhnPresidentEdison Electric Institute

William A. NitzePresident Gemstar Group

Earle H. O’DonnellPartnerDewey Ballantine

Franklin D. RainesChairman and CEOFannie Mae

John W. RoweChairman and CEOExelon Corporation

Michael D. ThienemanExecutive Vice President, andChief Technology OfficerWhirlpool Corporation

What might a prominent lighting company do to mark its 100th anniversary

and contribute something of value to the nation?

That was the question OSRAM SYLVANIA CEO and Alliance Board Co-Chair Dean Langford

posed to Alliance executives.

The Alliance presented a number of options, contacted the White House,

and arranged a meeting with the National Park Service.

It was synchronicity.

Repairs were desperately needed to the Thomas Jefferson Memorial.Lighting needed to be redone.

There weren’t monies to do this.

In an ambitious private-public partnership, OSRAM SYLVANIA conducted a total relighting

of one of the nation’s most picturesque landmarks, contributing more than $800,000 to the National Park Foundation

as its gift to America.

Work was completed in 2001,the 200th anniversary of the inauguration of the third President of the United States.

New, efficient lighting technology developed by OSRAM SYLVANIA illuminates parts ofthe famous landmark for the first time.

It provides an enhanced viewing experience,improves visibility and safety,

and produces energy savings of 78 percent.

It’s a very fitting tribute to Jefferson: President, author of the Declaration of Independence,

and Renaissance man,who embodied enlightenment.

EnlighteningLegacy

Alliance To Save Energy10

All too often, Washington responds to deep-seated crises with quick fixes. But, twenty-five years ago,two dozen Senators and CEOs tackled the nation’s energy crisis by working on solutions not sound bites,on results not reputations, and on partnerships not politics. That is why 2002 is cause for congratu-lations and renewed pride as the Alliance to Save Energy celebrates its 25th anniversary.

Led by Republican Senator Charles Percy, business, consumer, labor and public leaders founded analliance dedicated to promoting energy efficiency worldwide to achieve a healthier economy, a cleanerenvironment, and – foremost in their minds at the time – enhanced energy security. They knew then, aswe all know today, that energy efficiency is the quickest, cheapest and cleanest response to our nation’senergy needs. This year alone, efficiency will provide more energy to our economy than any other energysource except for oil – in no small part thanks to the work of the Alliance.

Today we live in a world that is more inter-dependent than it was in 1977, but also for many, more fearful.Troubling developments in the past few years – from the power shortages in California to the deadlyinstability of the Middle East to the shocking changes in the global climate – remind us that our mostchallenging work lies ahead.

We salute the Alliance’s outstanding record of accomplishment and we thank the generous support of ourfriends and partners – including the energy efficiency and supply industries, philanthropic foundations,corporations, and government agencies. The Alliance remains an enduring institution – as committedtoday as it was in 1977 to solutions, results, and partnerships. We enter our next quarter century withthe firm conviction that, with your help, we will succeed.

Senator Byron L. Dorgan Dean T. LangfordChair Co-Chair

Message from the Chairmen

Senator Byron L. Dorgan, ChairDean T. Langford, Co-Chair

The Alliance to Save Energy promotes energy efficiency worldwide to achieve

a healthier economy, a cleaner environment, and energy security.

Alliance Mission

Annual Report 11

Advocating for a More Energy-Efficient World

Though the President’s energy plan called

for energy efficiency, the Alliance felt it was too heavily

tilted toward production. The latest in energy policy and

politics can be found at www.ase.org/policy.

or 25 years, the Alliance to Save Energy has worked to

promote energy efficiency. Forging partnerships with

corporate, environmental, consumer, and governmental leaders,

the Alliance promotes better public policy, creates innovative

programs both in the United States and abroad, and

communicates its message to policymakers and the public.

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An Alliance of Partners:

Advocating for BetterPublic PolicySince its inception, the Alliancehas sought out and collabor-ated with many AllianceAssociates and with otheradvocacy organizations.Together, these organizationsand the Alliance have sought to educate policymakers aboutthe importance of energyefficiency as a component of national energy policy. Every year, research providescompelling evidence thatenergy efficiency is thequickest, cheapest, andcleanest way the nation canrealize its goals of enhancingnational security, protecting the environment, andimproving prosperity.

National Energy LegislationIn 2001, Vice President DickCheney issued a new NationalEnergy Plan at the direction ofPresident George W. Bush.From the Alliance’s point of

view, the plan unwisely reliedon increased energy explora-tion and production – a supply-side approach – to solve thenation’s energy woes. With theleadership of outgoing AllianceChair Sen. Jeff Bingaman,incoming Chair Sen. ByronDorgan, and others, theAlliance secured the inclusionof a wide range of energy-efficiency policy provisions inboth the House and Senateversions of national energylegislation. Provisionsinclude a bevy of tax creditsfor the purchase of new energy-efficienthomes, upgrades toexisting homes, andenergy-efficientappliances andequipment, as well as improvements infederal energymanagement.

Increasing Investment in Energy EfficiencyEach year the Alliance encouragesfederal legislators to supportfunding for critical energy-efficiency programs in budgets for the U.S. Department of Energy(DOE), U.S. EnvironmentalProtection Agency (EPA), and U.S. Agency for InternationalDevelopment (USAID). In 2001,the Alliance worked closely withits Associates and a wide range ofother partners to blunt efforts by

“[The Alliance] is politics at

its best; it’s business at its

best; it’s community

involvement at its best.

It is indeed Washington

at its best…”

—Thomas R. Kuhn,

president of Edison Electric

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the Administration to cut funding by 30 percent for federalenergy-efficiencyresearch and develop-

ment programs. Efficiencyadvocates scored a victory

when the 2002 DOE budgetincluded an 11 percent increasefor energy efficiency R&D andcontinued support of EnergyStar programs.

Researching Policy OptionsThroughout its 25 years, theAlliance has partnered withutilities, industries, and otherorganizations to preparereports documenting energyuse and cost and environmentalsavings from energy efficiency.Over the years, the Alliance hasproduced cutting-edge research

on industrial tax credits, marketpenetration, rate basing ofutility energy-efficiencyprograms, and alternativeenergy scenarios. In 2001, theAlliance analyzed ways toreduce carbon emissions in theindustrial sector—data to helpthe EPA weigh options forstemming industrial pollution.

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If we think of energy efficiency

as an energy source, we see that

it’s the second largest source of

energy in the U.S. (after oil),

and the largest domestic source.

Unfortunately, energy efficiency

is often invisible, and few

politicians recognize energy

efficiency’s impact – never mind

its enormous potential.

Source: Alliance to Save Energy

The Alliance has been working with

Congress to provide incentives for

states to establish public benefit

funds. The funds would support the

expansion of energy efficiency and

renewable energy.

Status of Public Benefit FundsJuly 2002

states with public benefit funds

presently no public benefit fundSource: American Council for an Energy-Efficient Economy

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While the U.S. House of

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Making Sure AppliancesAre Energy EfficientOver the past 25 years, theUnited States has greatlyimproved its energy efficiencyby upgrading energy standardsfor appliances and equipment.As of 2000, appliancestandards had cut nationalenergy use by 2.5 percent. By 2020, these standards willsave Americans roughly theannual energy use of 23 millionhomes. Working closely with anumber of Alliance Associates,such as Goodman GlobalHolding, Inc., Maytag, andWhirpool, and with partnerssuch as the American Councilfor an Energy Efficient Economyand the Natural ResourcesDefense Council, the Alliancehas led the effort to ensureadoption of energy standards inlighting ballasts, refrigerators,clothes washers, and airconditioners.

In January 2001, the Alliancecelebrated the issuance of anew residential air conditionerstandard that would increase

Annual Report 13

The Alliance has worked

with numerous states to

establish reasonable,

effective residential and

commercial energy codes.

or 25 years, the Alliance has designed and implemented

innovative projects to promote energy efficiency in

residential and commercial buildings, federal facilities, utilities,

and schools. The strategy works to balance legislative, regulatory,

and voluntary market transformation to ensure that government,

corporations, and consumers choose energy efficiency.

F

energy performance by 30percent over the currentstandard. The Alliance’sjubilation was short-lived,however, as the BushAdministration soon indicatedthe intention to reduce theincrease by 30 percent. During the remainder of theyear the Alliance workedto alert members of Congressto the rollback that wouldresult in reduced electricityreliability and more pollutionon summer days. In addition,the Alliance participated inresidential heating andcommercial air conditioningequipment rulemakings, andassisted efficiency advocates inCalifornia and Maryland on newstate standards. AllianceAssociates supported theseefforts, for which the Alliancereceived a grant from theEnergy Foundation.

Transforming the EnergyEfficiency Marketplace

Residential Energy Code Status As of August 2002

AK

TX

NMAZ

NV

OR

IL

WI MI

OH

NY

PA

ME

CA

VTNH

MA

RI

CT

NJ

DE

MD

HI

KS

WA

COUT

ID

MT

WY*

ND*

SD

NE

MN

IA

MO

OK AR

INWV VA

NC

SC

KY

TN

LA

MS* AL* GA

FL

DC

*

MEC VersionsStatewide code both mandatory and voluntary

(19) 2000 IECC or IRC or equivalent state code in adoption process

(1) 1998 IECC(14) 1995 MEC or equivalent

state code(1) 1995 MEC or equivalent

state code (partial adoption)(2) 1993 MEC or equivalent

state code(5) 1992 MEC or equivalent

state code(9) No code or code not

EPAct compliant

* Code implementation depends upon voluntary adoption by local jurisdictions

Source: Building Codes Assistance Project

Locking in EnergySavings for 100 Years Adoption of stringent energybuilding codes is one of thebest ways to ensure that homesare more affordable and costsavings are “locked in” abuilding for the next 100 years.For the past eight years, theBuilding Codes AssistanceProject (BCAP), co-sponsoredby the Alliance, the AmericanCouncil for an Energy-EfficientEconomy, and the NaturalResources Defense Council, hashelped more than 25 statesupgrade the energy-savingfeatures of their building codes.Last year, the Alliance andBCAP helped five states(including Pennsylvania, NewYork, and Texas, which togetherhouse one-sixth of the U.S.

population) adopt the newInternational EnergyConservation Code, while anumber of other statesupgraded their codes withAlliance help. The Alliancesalutes its many industrypartners, including the Alliancefor the Polyurethane Industry,Andersen Corporation,CertainTeed Corporation,Dow Chemical, Johns Manville,Knauf Fiber Glass, NorthAmerican InsulationManufacturers Association,Owens Corning, andPolyisocyanurate InsulationManufacturers Association. The Energy Foundation andDOE (through the PacificNorthwest National Laboratory)support BCAP.

Educating Childrenabout EfficiencyThe Green Schools programorganizes teams of teachers,custodians, administrators, and students to use energyefficiency as a project-basedlearning tool and as a wayschools can save money.In 2001 the Alliance helped tenLos Angeles schools average$14,600 in energy cost savings;recognizing our success, theCalifornia Public UtilitiesCommission, California Stateand Consumer Services Agency,and the San Diego RegionalEnergy Office are nowsupporting a major GreenSchools initiative. GreenSchools in Philadelphia,supported by the PennsylvaniaDepartment of EnvironmentalProtection and PennsylvaniaSustainable Development Fund,educated disadvantaged youngpeople and reduced schoolelectricity costs by 20percent. The Alliance’spartnership with New YorkState Energy Research andDevelopment Authoritycontinues to bring savings toschools in Buffalo, while itsnew partnership with DOE’sRebuild American Program is

Alliance To Save Energy14

A glass ribbon cools at a Cardinal Glass Industries float plant.

Once the ribbon cools, it will be cut and shipped to a coating

plant where a low-E coating will be deposited on the glass.

Low-E coatings help improve the thermal performance of a

window and help control the solar heat gain.

The Earth Apple AwardIn 2001, Green Schools created

the Earth Apple Award to provide

national recognition for

excellence in implementing

Green Schools. The first award

winner was the East San Gabriel

Valley Regional Occupational

Program in Covina, California,

which lowered its energy costs by

25 percent and used the savings

for student scholarships. Read

about Green Schools online:

www.ase.org/greenschools

helping to increase the numberof school energy retrofits.Support also comes fromABB, 3M, EPA, Hahn FamilyFoundation, and SouthernCalifornia Edison.

Opening the Door toMore Efficient WindowsFor the past four years, theEfficient Windows Collaborative(EWC) has educated bothconsumers and businesses aboutthe benefits of selecting energy-efficient windows. In 2001, EWC increased media coverageand promoted its web site,www.efficientwindows.org,which boasted more than325,000 visits. The EWC alsotook its message to China byembarking on a project to makeenergy-efficient windows a part of China’s building code.The EWC partners withLawrence Berkeley NationalLaboratory and is supportedthrough a grant from DOE’sOffice of Building Technologies.It enjoys strong support in thewindows industry – from AFG Industries, AndersenCorporation, Cardinal GlassIndustries, CertainTeedCorporation, and Great LakesWindow, Inc. — and worksclosely with the MidwestEnergy Efficiency Allianceand Pacific Gas and Electric Company.

Encouraging theGovernment to ‘Lead by Example’For more than a decade, theAlliance has strongly advocatedthe need to reduce energywaste in federal facilities.Through its involvement in thepassage of the Energy PolicyAct of 1992, the Alliance helpedto set stringent energy-

efficiency goals and create aframework to enable privateenergy service companies toinvest in federal efficiencyprojects. Federal energy-efficiency efforts are savingtaxpayers hundred of millionsof dollars annually in reducedenergy costs.

In 1999, executives from 50leading energy-efficiencycompanies formed theAlliance’s Federal EnergyProductivity Task Force. Manyof the recommendations fromthe Task Force’s comprehensivereport on federal energy usebecame part of a recentExecutive Order on federalenergy saving. Alliance effortsare supported by DOE’s FederalEnergy Management Programand the contributions of

Alliance Associates, especiallythe EPS Capital Corporation,Honeywell, Johnson ControlsInc., North American InsulationManufacturers Association,Polyisocyranurate InsulationManufacturers Association, andSempra Energy.

Helping Industry DoWell by Doing GoodThe Alliance is committed tohelping industry takeadvantage of the latest cost-effective, energy-savingtechnologies and managementpractices to improve economicproductivity and the bottomline. The DOE’s Office ofIndustrial Technologies aids theAlliance in this mission throughthe BestPractices SteamProgram, which helpsmanufacturers become moreaware of the environmental and

Annual Report 15

The Alliance's Federal

Energy Productivity Task

Force recommendation

to increase private sector

investment in federal

facilities was incorporated

as a key emphasis in

Executive Order FEMP 13123.

Source: Alliance to Save Energy

2

1.8

1.6

1.4

1.2

1

.8

.6

.4

.2

0

Private Sector Investment Level

Growth in Private Sector Financing of Federal Energy-Saving Projects

Bil

lion

s of

$

1988-1997Total

Recent YearsTotal

EnergySaving

PerformanceContracts

UtilityEnergy

ServicesContracts

financial savings they canrealize from steam systemupgrades. The Alliance, incollaboration with Oak RidgeNational Laboratory, leveragesthe involvement of theAssociation of EnergyEngineers, Gas TechnologyInstitute, National InsulationAssociation, Ontario PowerGeneration, and steam industryproduct and service providerssuch as ArmstrongInternational, Inc., theNational Insulation Association,North American InsulationManufacturers Association,Spirax Sarco, and Swagelok.The Alliance Industrial Programdelivers its message viaSteaming Ahead, an e-mailnewsletter, as well as acompanion web site,www.steamingahead.org,workshops and seminarsaround the country, and tradepress articles. In addition, the Alliance recently partneredwith the State of Marylandto create an industrial energyinformation clearinghouse.

Providing LocalSolutions to a GlobalChallenge While plenty of energy waste inthe United States still needs tobe eliminated, in transitionaland developing countries theproblem is almostoverwhelming.

The Alliance is translating its 25years of experience inimplementing energy efficiencyinto the native tongues ofefficiency advocates in twodozen countries across fivecontinents. The Alliance acts in four distinct ways: craftingenergy-efficiency policy,communicating the energy-efficiency message, providingprogram implementationassistance, and securingfinancial resources.

Educating Consumersabout the LatestTechnologiesBecause of the Alliance’s longrelationships with companiesthat market energy-efficientproducts and services,partnerships are often the bestway to educate potentialcustomers about the benefits ofenergy-efficient technologies.Since 1995, the EnergyEfficiency Industry Partnership(EEIP) has educated more than3,300 municipal, industrial, andcommercial energy managers,and more than $6 million inenergy efficiency-projects havedirectly resulted from theprogram. Key business partnersinclude ABB, Aerco, AndersenCorporation, ArmstrongInternational, ASI Controls,Baldor, Calmac ManufacturingCorporation, Carrier, Danfoss,ECR International, E-Mon LP,Honeywell, Johns Manville,Johnson Controls, OSRAMSYLVANIA, Owens Corning,Philips, Pneumatech, Rockwell,Spirax Sarco, Swagelok, Trane,and York.

Alliance To Save Energy16

These graphs illustrate the price of continued energy waste

that the Alliance’s international program works to stem.

Source: DOE’s EIA, www.eia.doe.gov

World Carbon Dioxide Emissions by Region, 1990–2020

5,000

4,500

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

0Mil

lion

Met

ric

Tons

Car

bon

Equi

vale

nt

Years

Industrialized EE/FSU Developing

World Total Energy Consumption by Region, 1990–2020

300

250

200

150

100

50

0Qua

dril

lion

Btu

World Per Capita Primary Energy Consumption

400

350

300

250

200

150

100

50

0Mil

lion

Btu

Nor

way

U.S

.

Rus

sia

Fran

ce

Japa

n

Sou

th A

fric

a

Bra

zil

Thai

land

Chin

a

Afg

hani

stan

Cam

bodi

aCountries

Industrialized EE/FSU Developing

1990 1998 1999 2005 2010 2015 2020

Years 1990 1998 1999 2005 2010 2015 2020

In 2001, the EEIP organizedworkshops in six countries—Brazil, China, Ghana, India,Mexico, and Thailand—ontopics that included energy-efficiency project finance,window efficiency, industrialsteam efficiency, energybenchmarking for industry,certification of energy servicescompanies, water systemefficiency, and energy servicecompany business planning.The EEIP is supported by U.S.DOE through the Export Councilfor Energy Efficiency, USAID,and the US-Asia EnvironmentalPartnership.

Bangkok, Thailand — The EEIP helped to create the Thai Energy EfficiencyDevelopment Association,comprised of several dozencompanies developingThailand’s energy efficiencymarket, and helped develop a $50 million governmentenergy efficiency fund.

Improving the SocialClimate to EnsureStability The collapse of communismand the planned economies ofCentral and Eastern Europe leftmassive energy waste andpollution in their wake. Formost of a decade, the Alliance

has been working withpartners, such as Honeywelland Danfoss, to demonstratehow energy efficiency can helpto solve this massive problem.Alliance efforts are supportedby the USAID through itsBureau for Europe and Eurasiaand local missions in Armenia,Moldova, and Serbia; the U.S.DOE; and the UN Foundationthrough the United NationsEconomic Commission forEurope.

To support the adoption ofenergy efficiency in municipalgovernments and districtheating systems, the Alliancecreated the Municipal Networkfor Energy Efficiency (MUNEE),which develops policy analysisand options and disseminatesinformation about what hasbeen successful in otherlocales. To this end, the MUNEEweb site (www.munee.org orwww.ase.org.yu) isavailable

in six languages. MUNEEpartners include TheInternational Institute forEnergy Conservation, PacificNorthwest National Laboratory,APER in Romania, ARENA-ECOin Ukraine, CENEf in Russia,EnEffect in Bulgaria, FEWE inPoland, SEVEn in the CzechRepublic, and the LithuanianEnergy Institute.

Belgrade, Serbia—Follow-ing the end of the recentconflict, the Alliance was the first energy-efficiencyorganization to enter war-torn Serbia, only to find aneconomy flat on its back, its energy sector in disarray.Over the past year, theAlliance has helpedweatherize thousands ofhomes and has launched astudent educationprogram,

Annual Report 17

The Alliance’s Municipal

Network for Energy

Efficiency operates in

many countries in Europe

and Central Asia.

while millions of people haveseen the Alliance’s energy-efficiency public awarenesstelevision ad. The Alliance’sSerbian partners includeEPS, the national electricutility; the Ministry ofEducation; the Ministry ofEnergy; and Nexant, Inc.

Lviv, Ukraine — Afterdemonstrating how energy-efficiency improvementscould reduce energy use byone-third in a local schooland helping the city audit itsother schools, the Alliancedisseminated the experienceto six other Ukrainian cities.

Increasing Access to Clean and Affordable WaterSome estimate that the deliveryand treatment of waterconsumes up to 7 percent ofthe world’s energy resources—equal to the energy used by

Japan and Taiwan combined.There is a huge potential forenergy cost savings in waterdelivery through improvedenergy efficiency and energymanagement. The Alliance’sWatergy Program helpsmunicipal water companiesidentify comprehensiveopportunities, secure financing,install advanced technologies,and manage their systemsmore efficiently. The Alliance issupported by the U.S.-AsiaEnvironmental Partnership andUSAID’s Office of Energy,Environment and Technology.

Indore, India—The Allianceworked with the city’s mayorto establish an energymanagement team thatquickly identified more than$100,000 in energy-efficiencysavings; the city budget nowcontains a line item forenergy-efficiency activities.

Fortaleza, Brazil—In the midst of a drought, the Alliance has helped thelocal water utility secure a

$1.8 million World Bank loanto pay for energy-savingmeasures to reduce itselectricity demand by 8 megaWatts, therebyhelping to ease Brazil’srecent electricity shortages.

Helping People Achievea Better Quality of Life One of the best ways to improveenergy efficiency is by creatingenergy-efficiency standards forappliances and equipment. TheAlliance, in partnership with theInternational Institute forEnergy Conservation andLawrence Berkeley NationalLaboratory, created theCollaborative Labeling andAppliance Standards Program(CLASP) to provide technicalassistance to countries that wishto establish energy-savingstandards: www.clasponline.com.The project is supported by theUSAID’s Office of Energy andInformation Technology and theUN Foundation through theUnited Nations Department ofEconomic and Social Affairs.

Accra, Ghana—The Allianceworked closely with theGhana Energy Foundation,which it helped to foundseveral years ago. Thefoundation assisted in thecreation of a room airconditioner energy standard,which will save consumers$8 million a year andeliminate the need for 29 megaWatts of generatingcapacity.

Alliance To Save Energy18

The Watergy report on

the nexus of water and

energy efficiency

produced by the Alliance

in 2001 details how

companies and

municipalities can realize

significant savings by

establishing an efficiency

team rather than

performing ad hoc

efficiency improvements.

20%

15%

10%

5%

0%

Ad Hoc(Informal)

Source: Alliance to Save Energy

Expected Efficiency Gains by Water UtilityManagement Approach to Energy Efficiency

Perc

enta

ge R

educ

tion

in O

pera

ting

Cos

ts

Management Approach to Energy Efficiency EfficiencyManager

EfficiencyTeam

Annual Report 19

“I LOVE this commercial. One of

the funniest spots I’ve ever seen.

First time I saw it, I was dozing on

the couch, woke up thinking for a

moment that it was serious. What

a great idea: using static

electricity. Of course, I then

realized it was a very clever spoof.

Thanks for a good laugh plus

valuable information.”

— Eve Norman, San Francisco

Bringing ‘Home’ the Message

The Alliance reached not onlynational decision makers, butalso millions of consumersthrough TV appearances onnetworks ranging from ABC andCNN to Fox News and BET ...articles and interviews rangingfrom Ladies’ Home Journal andKiplinger Personal Finance toWired and National Journal ...from AP and UPI to KnightRidder and Scripps Howard ...from radio networks to dozensof local stations ... from websearch engines to media andother web sites ... from TheWashington Post, The New YorkTimes, and The Wall StreetJournal to the San Jose MercuryNews, the Los Angeles Times,and the Detroit Free Press, aswell as the trade press.

Hitting the AirwavesNationwideThe Alliance has returned to itsroots — in its early days, itcreated a highly successfulcampaign, “Don’t Blow It,America,” with Gregory Peck asits TV spokesperson. In 2001,

the Alliance launched anotherpublic service advertisingcampaign with the humorous,award-winning “StaticElectricity House” televisionspot, garnering millions ofdollars in free airtime on localTV stations as well as the ABC,CBS, and BBC networks, CNNAirport Network, CNN HeadlineNews, and other cablenetworks. The spot was ratedthe #2 greatest commercial inthe world by CBS-TV in theprime-time program World’sGreatest Commercials. Also, inpartnership with New YorkState Energy Research andDevelopment Authority, theAlliance conducted anelectricity reliability mediacampaign that helped reduceNew York state’s electricity use and installed 41,000 EnergyStar room air conditioners inplace of inefficient units in2001, and more than 150,000 in 2002.

Connecting Consumersto Credible InformationThe Alliance’s web site—www.ase.org— is a wellspringof valuable information and isdrawing more visitors from theUnited States and more thantwo dozen other countries. TheAlliance’s monthly electronicnewsletter, e-FFICIENCY NEWS,provides 18,500 subscriberswith the latest news aboutenergy efficiency:www.ase.org/e-FFICIENCY.Through partnerships with theU.S. Consumer InformationCenter and Washington Gas,the Alliance has distributedtens of thousands of copies ofits consumer booklet,Power$mart:Easy Tipsto SaveMoneyand thePlanet.

hen the Alliance was founded, energy news dominated

the headlines. In 2001, energy issues were once again on

the front burner, and the Alliance made sure that energy efficiency

figured significantly in the media’s coverage of the debate.

W

GreatestCommercialin the World

#2

Alliance To Save Energy20

he Alliance is unique in actively encouraging the participation of businesses in its work. As

corporations increasingly find that energy efficiency improves both their bottom lines and

their corporate profiles, more companies are embracing the Alliance and its energy-efficiency

message. Today, through its Alliance Associates program, the Alliance partners with more than 70

companies, utilities, trade associations, research laboratories, and nonprofit organizations. Through

partnerships, Associates accomplish their missions, and the Alliance enhances its reputation as an

influential voice on energy efficiency.

T

New York Governor

George Pataki told the

attendees at the

October 2001 Stars of

Energy Efficiency

dinner "Energy security

is national security, and

energy efficiency

boosts both."

Michael P. Kane, senior

vice president at Johns

Manville, outlines the

role insulation plays in

improving air quality.

Partnering with the Private Sector for 25 Years

10th Annual Awards Dinner —The 2001 Evening with theStars of Energy Efficiencyhonored New York GovernorGeorge E. Pataki with theCharles H. Percy Award foroutstanding public service.With more than 450 inattendance, the Alliance alsopresented awards to HowardGeller, former executivedirector of the AmericanCouncil for an Energy-EfficientEconomy, and to the energyservices (ESCo) industry, fortheir contributions toenergy efficiency.

AssociatesSummit on EnergyEfficiency — In 2001, the Allianceheld its firstAssociates Summit,

which brought togetherleading public and privatedecision makers to hear fromthe leading names in energy,including Energy SecretarySpencer Abraham and formerCIA Director James Woolsey.Other prominent speakersincluded Senator JeffBingaman, RepresentativeEdward Markey, S. DavidFreeman, Dr. Phillip Verleger,and Dr. Amory Lovins. The City of Austin/AustinEnergy and Exelon Corp.helped support the Summit.

Alliance founder Charles Percy discusses

energy efficiency with Energy Secretary

Spencer Abraham, who delivered the

keynote address at the Associates

Summit on Energy Efficiency.

Annual Report 21

New car and light truck fuel economy in the

U.S. is at a 21-year low. To help reduce the

number of cars on the road, the Alliance

provides staff public transportation

allowances and bicycle facilities.

30

25

20

15

10

5

0

1980 85 90 95 00

Despite the adoption of more efficient transportation technologies, U.S.average fuel economy has been flat for 10 years. In large part, this is dueto the growth of low-fuel-economy pickup trucks, vans, and sport utilityvehicles.

Source: U.S. Department of Energy, Energy Information Administration.

Fuel Efficiency of Light VehiclesHas Remained Flat

Mil

es p

er G

allo

n

Years

New Cars New Trucks Combined

Associates Breakfasts and Working Groups —Associates meet influentialopinion leaders at the regularAssociates Breakfasts. In2001, the Alliance hostedevents featuring KyleMcSlarrow, chief of staff forthe Department of Energy;energy reporters John Fialkaof The Wall Street Journal;Peter Behr of The WashingtonPost; and Josef Hebert of theAssociated Press; and RobertMcNally, Jr., special assistantto the President for economicpolicy. Associates alsoparticipate in Alliance

working groups, such as theFederal Energy ProductivityTask Force, the EfficientWindows Collaborative, theEnergy Efficiency IndustryPartnership, and the BestPractices Steam SteeringCommittee.

Thanks for GenerousSupport —For 25 years, the Alliance’sability to educate policymakersand consumers about energyefficiency has depended on thefinancial contributions ofAlliance Associates. From amodest $52,000 in the

Alliance’s first year, Associatecontributions have grown morethan tenfold, to $717,414 in2001. The 2001 awards dinner,held in October at Washington,DC’s Union Station, raised$395,000, topping the previoushigh by 21 percent.

Leading by Example

The Alliance not only talks about energy efficiency, but also

incorporates energy efficiency in the workplace.

In designing its office, the Alliance chose efficient Energy Star-

labeled office equipment and appliances and installed compact

fluorescent light bulbs and motion-sensitive light switches.

The partnership the

Alliance forges between

the public and private

sectors is reflected in the

close working relationship

of its Chair, Senator Byron

Dorgan (right), and its

Co-Chair, Former CEO of

OSRAM SYLVANIA Dean

Langford (left).

22

3M Company

ABB

Alliance for the PolyurethaneIndustry

American Gas Association

Andersen Corporation

Armstrong International, Inc.

Association of State EnergyResearch and TechnologyTransfer Institutions

AT&T Foundation

Battelle

BC Hydro

BP

Bonneville PowerAdministration

Brookhaven NationalLaboratory

California Energy Commission

Calmac ManufacturingCorporation

Cardinal Glass Industries

CertainTeed Corporation

City of Austin/Austin Energy

CMC Energy Services, Inc.

Dewey Ballantine

Edison Electric Institute

Electricity Innovation Institute

E-Mon LP

EPS Capital Corporation

Exelon Corporation

Fannie Mae Foundation

Frito-Lay

Gemstar Group

Goodman Global Holdings, Inc.

Great Lakes Window, Inc.

Home Depot

Honeywell

IBM

International CopperAssociation

Johnson Controls, Inc.

Knauf Fiber Glass

Johns Manville

Los Angeles Department ofWater and Power

Lawrence Berkeley NationalLaboratory

Lithonia Lighting

Maytag Corporation

Midwest Energy EfficiencyAlliance

National Grid USA

National Insulation Association

National Renewable EnergyLaboratory

New York State EnergyResearch and DevelopmentAuthority

Nexant, Inc.

North American InsulationManufacturers Association

Oak Ridge National Laboratory

Ontario Power Generation

OSRAM SYLVANIA

Owens Corning

Pacific Gas and Electric Company

Perseus, LLC

Polyisocyanurate InsulationManufacturers Association

Sacramento Municipal Utility District

Sandia National Laboratory

SchlumbergerSema

Sears, Roebuck and Co.

Sempra Energy

Solar Energy IndustriesAssociation

Southern California Edison

Spirax Sarco

Swagelok

Tennessee Valley Authority

Texas A&M University – Energy Systems Laboratory

Texas State EnergyConservation Office

Washington Gas

Whirlpool Corporation

World Wildlife Fund

Xenergy, Inc.

AllianceAssociates

* Names in bold denote Founder level Associates

List as of September 1, 2002

Alliance To Save Energy32

Alliance to Save Energy Staff

Rosmin AbdullahSenior Accountant

Karen AndersonProgram Manager, Energy Education

Ernest AsareConsultant, Ghana

Vesna BakicConsultant, Serbia

Seth BaruchDeputy DirectorInternational Programs

Lena BraticConsultant, Bosnia

Anita BrownStaff Accountant

Kandas Burr-AgeeReceptionist

Stephanie CampbellProgram Manager, International

Eric CarlsonSenior Program Manager, International

Andriy ChumakConsultant, Ukraine

Kimbalyn ClarkFacilities Assistant

Sachu ConstantineProgram Manager, International

Leslie CordesDirector of Corporate and Program Development

Mike DeWeinTechnical Director, BCAP

Luther DudichResearch Assistant, Federal EnergyProductivity Program

Lyra DumdumDevelopment Associate

Christine EganExecutive Director,CLASP

Natasha EwellAdministrative Assistant

Shuy FarleyAdministrative Assistant

Kathie FillmoreExecutive Assistant

Doug FishExecutive Director, BCAP

Tigran ParvanyanConsultant, Armenia

Astghine PasoyanConsultant, Armenia

Natasa PavlovicConsultant, Serbia

Irina PlisConsultant, Moldova

Stanislav PotapenkoConsultant, Ukraine

Dan PrzeworskiProject Manager, International

Kara Saul RinaldiDeputy Policy Director

Ami RingoldProgram Associate, Green Schools

Felicia RuizProgram Manager, International

Christopher RussellSenior Program Manager, Industry

Slobodan RuzicConsultant, Serbia

Sudha SettyConsultant, India

Allen StaymanSenior Executive, Federal Affairs

Mirjana StefanovicConsultant, Moldova

Michael SteinhackerResearch Associate, International

Dianne StreatDirector of Administration

Ruslan SurugiuConsultant, Moldova

James TerminAdministrative Assistant, CLASP

E. Alison TribbleProgram Manager, Windows

Abir TrivediNetwork Specialist

Eustaquio VasconcelosConsultant, Brazil

Andriy VasylegoConsultant, Ukraine

Rozanne WeissmanDirector of Communicationsand Marketing

www. ase.org/staff.htmAs of Sept 1, 2002

Chris GodloveProgram Associate, International

Dave HamiltonPolicy Director

Merrilee HarriganSenior Program Manager,Energy Education

Jessica HarrisonPolicy Associate

Yuri HavrylyukConsultant, Ukraine

Mark HopkinsVice President

Kathy HulanDirector of Finance

Kevin JamesDeputy Director,International Programs

Jakkanit KananurakConsultant, Thailand

Artem KharchenkoConsultant, Ukraine

Anatoliy KopetsConsultant, Ukraine

Ronnie KwellerSenior Media RelationsAssociate

Joe LoperDirector of International Programs

Rachel MadanProgram Associate, Industry

Angela MartinAdministrative Assistant,Communications

Sarah MeyerProgram Associate, International

Harry MisurielloDirector of Buildings and Utilities Program

Angela MorinProgram Manager, International

David M. NemtzowPresident

Kate OffringaProgram Manager, State Efficiency Initiatives

Luis OrdoñezConsultant, Mexico

Cosimina PanettiTechnical Assistant, BCAP

A Printed on recycled paper using soy-based inks, except for silver ink.

Alliance to Save Energy1200 18th Street NW

Suite 900Washington, DC 20036

(202) 857-0666Fax: (202) 331-9588E-mail: [email protected]: www.ase.org