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DATE: February 5, 1998

SUBJECT: Greenhouse Gas Market Transformation Projects

This is a request for proposals by the United States Environmental Protection Agency (EPA), Region 5, for projects which will reduce the emission of, or sequester greenhouse gases. Applicants should be located in, or otherwise propose projects which primarily affect, Illinois, Indiana, Michigan, Minnesota, Ohio, or Wisconsin. The EPA Atmospheric Pollution Prevention Division (APPD) anticipates awarding grants of between $25,000 and $100,000 for each successful proposal, with $500,000 being available nationally.

Successful proposals will yield quantifiable reductions in net emission of carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), or sulphur hexafluoride (SF6) -- the six greenhouse gases identified in Annex A to the December 1997 Kyoto Protocol to the United Nations Framework Convention on Climate Change (attached). Appropriate areas for achieving these reductions include, but are not limited to, building systems (e.g., heating, air conditioning, lighting), energy supply, methane sources, HFC sources, PFC sources, and, with the exception of transportation, any other sector or source identified in Annex A. Potential applicants with transport related proposals, which will not be considered for this grant, are encouraged to pursue Congestion, Mitigation and Air Quality (CMAQ) grants; partial information is available on the Internet at

EPA is committed to implementing programs which assist the United States in preventing the annual emission of 50 million metric tons of greenhouse gases by the year 2000, and 80 million metric tons by 2005. EPA's core efforts in this area are in facilitating the economically profitable use of efficient, energy related technologies. Programs under the Energy Star umbrella include: Green Lights, Energy Star Buildings and Homes, Energy Star Equipment and Labeling, Energy Star Procurement Challenge, Landfill and Coalbed Methane Outreach Programs, Ruminant Livestock Methane and AgStar Programs, and Natural Gas Star. Related programs include Cool Communities, which promotes shade tree planting and reflective outdoor surfaces, and PFC Emission Reduction Partnerships with the Aluminum and Semiconductor Industries. (Descriptions attached.)
Building on this foundation, EPA APPD seeks proposals for projects which will advance national, regional or local market transformation to technologies and practices which yield a net reduction in greenhouse gas emissions, especially, but not exclusively, from improved energy efficiency. Ideal proposals will identify a market mechanism related to greenhouse gas emissions, and seek to overcome a market failure by promoting investment in available and financially attractive, yet underutilized, technologies and practices.

Proposal Criteria

Proposals will be judged on the following criteria:

Provides measurable results. Proposed projects should quantify, verify and report resulting greenhouse gas emission reductions.

Cost-effective. The proposal should achieve greenhouse gas reductions in a voluntary, profitable manner. APPD is more likely to fund proposals which reasonably can project a high ratio of net greenhouse gas emission reductions to EPA dollars spent.

Relies on market forces. Projects should not require continuing operating subsidies to achieve profitability.

Rapid and durable market transformation. Projects which achieve greenhouse gas emission reductions during the grant project period, and continue to provide benefits beyond expiration of the grant are preferable to projects which do not achieve immediate reductions, and which will not be sustained without continued grant assistance.

Innovative. Projects demonstrating an innovative technology or practice, with the potential for wide applicability, generally are preferable to projects implementing already well recognized methods.

Avoids duplication of efforts. Proposals which include using tools or services available through EPA or Department of Energy programs, e.g., Energy Star, are welcomed. Proposals which would simply replicate such tools or services are discouraged.

Not transportation related. Proposals which are primarily transport related will not be funded under this effort.

Educational. Educating consumers and businesses that available technologies can save money as they protect the environment, and that greenhouse gas emission reductions do not require reduced quality of life are desirable project outcomes.

Clear Explanation. Proposals should clearly describe project goals, tasks, anticipated time lines and preliminary budgets. Total proposal should be limited to six pages. No specific format or application form is required.

Award Process

Proposals will be accepted through March 20, 1998. Using the criteria listed above, EPA Region 5 staff will rank the received proposals, and recommend those judged superior. However, final award determinations will be made by EPA APPD managers. APPD intends to announce the selected proposals by April 30, 1998, at which time APPD will request a formal Application for Federal Assistance. APPD anticipates awarding funds no later than September 30, 1998.

Proposals should be sent to,

Eric Glatstein
U.S. EPA, Region 5 (AE-17J)
77 W. Jackson Boulevard
Chicago, IL 60604-3590

Please feel free to direct questions to Julie Magee at
(312) 886-6063 or Eric Glatstein at (312) 886-5046.

Annex A
Greenhouse gases

Carbon dioxide (CO2)
Methane (CH4)
Nitrous oxide (N2O)
Hydrofluorocarbons (HFCs)
Perfluorocarbons (PFCs)
Sulphur hexafluoride (SF6)

Sectors/source categories

Fuel combustion
Energy industries
Manufacturing industries and construction
Other sectors
Fugitive emissions from fuels
Solid fuels
Oil and natural gas

Industrial processes
Mineral products
Chemical industry
Metal production
Other production
Production of halocarbons and sulphur hexafluoride
Consumption of halocarbons and sulphur hexafluoride

Solvent and other product use

Enteric fermentation
Manure management
Rice cultivation
Agricultural soils
Prescribed burning of savannas
Field burning of agricultural residues

Solid waste disposal on land
Wastewater handling
Waste incineration

Environmental Protection Agency
Office of Air and Radiation
Atmospheric Pollution Prevention Division

For more information on these programs, please call the Energy Star Hotline: 1-888-782-7937
or the APPD website

Energy Star Buildings and Green Lights®: Green Lights®, the flagship, voluntary, pollution prevention program encouraging the widespread use of energy-efficient lighting technologies, is now a cornerstone of the Energy Star Buildings program. Expanding on the success of the Green Lights program, Energy Star Buildings focuses on the profitable investment opportunities available in most buildings. The program is a 5-stage implementation strategy which starts with Green Lights and continues to realize savings and prevent pollution through building tune-ups, HVAC load reductions, improved fans and air-handling systems, and improved heating and cooling plants. Since June of 1994, this program has demonstrated that the Energy Star Buildings upgrades strategy can profitably and significantly reduce energy use. Energy Star Buildings is the perfect opportunity for organizations to be environmentally and economically proactive.

ENERGY STAR Small Business: Working with small businesses, and their advocates, EPA designed this program especially for smaller firms (100,000 sq.ft. and less; non-Allies). The program supports the same ENERGY STAR Buildings “5-stage approach” to profitable, comprehensive energy investments, but with tools and strategies “right-sized” for small business. No reporting is required, but Partners who share their “success stories” receive additional public recognition, and are eligible for national awards. Tenants, as well as small property owners, are helped as Partners. EPA provides free technical assistance through its website ( GOTOBUTTON BM_1_ and toll-free hotline (1-888-STAR YES), GOTOBUTTON BM_2_ which provide an Upgrade Guide, online Finance Directory, case studies, and other tools.

Energy Star® Labeling Programs: The EPA and the Department of Energy have developed voluntary energy-efficiency specifications for products such as office equipment, heating and cooling equipment, insulation, residential appliances, residential lighting, exit signs and most recently televisions and VCRs. Manufacturers and retailers of these products may voluntarily join the Energy Star Labeling Programs and place the Energy Star label on qualified products. Through outreach and educational efforts, consumers are learning to recognize the Energy Star label as the symbol for energy-efficiency.

Energy Star Homes: We can reduce pollution while saving billions of dollars in utility bills with homes that cost less to own from day-one! At the same time, builders and product manufacturers can realize billions of dollars of increased revenue. The lending industry also has the opportunity to sell billions of dollars more of their product (money) at less risk by being vested in more durable homes whose owners have more disposable income. EPA’s ENERGY STAR Homes Program is capturing these benefits through a paradigm shift in the key home purchase criterion from “sticker” price to what a house truly costs to own and operate, including energy cost. This goal is being achieved through voluntary partnerships with builders who profitably develop new homes that use at least 30% less energy than homes built to the latest national Model Energy Code (MEC). With ENERGY STAR Homes, home buyers are able to buy more value (comfort, quiet, indoor air quality, durability, and resale) for less... and feel great about helping the environment.

Energy Star Transformers: Transformers are designed to reduce voltage to a level that can be used safely in homes and offices. Each year, roughly two percent of U.S. electricity production is wasted due to transformer inefficiencies. The Energy Star Transformer program works with utilities to help them become more competitive through the purchasing of high-efficiency transformers for their distribution systems. High-efficiency transformers are often the most cost-effective utility resource option. Leading manufacturers of distribution transformers have committed to produce Energy Star Transformers and market them to electric utilities.

Coalbed Methane Outreach Program: This program, which was launched in April 1994, encourages U.S. coal mines to remove and use methane that is otherwise emitted to the air by mining operations. The program works with the coal industry to change the perception of coal mine methane from that of safety hazard to an energy resource that can be profitably recovered. These projects have important economic benefits for the mines and their local economies by creating jobs and additional revenues for the mines. Additionally, the global environment benefits because these projects reduce the threat of global climate change.

Landfill Methane Outreach Program: The mission of EPA’s Landfill Methane Outreach Program is to reduce methane emissions from landfills cost-effectively by lowering the barriers to, and encouraging development of, environmentally and economically beneficial landfill gas-to-energy projects. The Landfill Methane Outreach Program, launched in December 1994, establishes alliances with state agencies, utilities, and industry to promote the use of landfill gas as an energy resource. EPA works with these Outreach program Allies to develop and disseminate reliable information on project opportunities, financing, technologies, and regulatory and other issues, and to create partnerships that turn the opportunities into operating projects.

PFC Emissions Reduction Partnership for the Semiconductor Industry: This partnership between EPA and semiconductor manufacturers is a commitment to work toward reducing emissions of long-lived greenhouse gases. These gases, the perfluorocompounds (PFC) and hydrofluorocarbons, are used in the manufacture of semiconductors. In the voluntary program, industry and EPA will work together to identify pollution prevention oriented reduction opportunities for control of PFC emissions. Based on the accomplishments of the program, the atmospheric accumulations of these greenhouse gases will be reduced.

Natural Gas STAR: This program encourages natural gas companies to adopt cost-effective technologies and practices that reduce emissions of methane. Program participants increase their profits by reducing leaks and losses from production, transmission, and distribution systems. The program has been successful in removing barriers that prevent the use of pollution prevention as a method for reducing emissions. To date, the Natural Gas STAR program has 63 partners who have reduced emissions by 16.8 billion cubic feet, equal to approximately $33 million. When fully implemented in the year 2000, Natural Gas STAR companies are projected to recover more than 35 billion cubic feet of natural gas, worth $70 million annually. These reductions in greenhouse gas emissions are the carbon equivalent of removing 3 million cars from the nation’s roads.

AgSTAR Program: The AgSTAR program is a voluntary program jointly administered by the EPA, U.S. Department of Agriculture, and the U.S. Department of Energy, that encourages the use of effective technologies to capture methane gas generated from the decomposition of animal waste for use as an energy resource (biogas). Converting animal waste into an energy source can help agri-business increase bottom line profits while meeting or exceeding regulatory guidelines. AgSTAR participants realize substantial returns through reduced electrical, gas, and oil bills, revenues from high-quality manure byproducts, and savings on manure management operational costs.

Ruminant Livestock Methane Program: This collaborative effort between EPA and USDA improves the efficiency of livestock production and reduces methane emissions resulting from the dairy and beef industries. The program works with livestock producers to improve the efficiency of their animals and reduce methane emissions. The program also builds on existing efforts to remove market barriers and to create incentives for increased production of lower fat milk and meat products. The environment also benefits because this program reduces the threat of global climate change.

Voluntary Aluminum Industrial Partnership: Through the Voluntary Aluminum Industrial Partnership (VAIP) the U.S. primary aluminum industry and EPA work together to limit the emissions of perfluorocarbons (PFC), which are generated as a by-product of aluminum production. PFCs are potent greenhouse gases that are next to impossible to destroy and may remain in the atmosphere for thousands of years. Lower PFC emissions mean more efficient aluminum production and for some VAIP partners, lower energy bills. Most importantly, reduced emissions will provide protection for our global environment. VAIP membership now represents 94% of U.S. primary aluminum production capacity, and partners are reporting significant reductions in PFC emissions from 1990 levels. Indeed, by the year 2000, VAIP participants are expected to reduce the industry’s emissions of PFCs by an estimated 45 percent.

Cool Communities: As a result of EPA and DOE research, many local governments across the United States are working to introduce measures that will help cool their cities and reduce pollution. These measures include strategically planted shade trees and the installation of reflective surfaces such as roofs and pavement. APPD is working to identify the most effective means of implementing these measures which will not only help reduce a city’s urban heat island, but will also save individual home and business owners money on their monthly utility bills. These “lessons learned” will serve as guidelines for other cities that want to initiate similar types of programs and policies in their own communities as an effective way to save energy and reduce pollution.

For further information, contact:
This Information Last Modified On: 09/18/2008 03:58 PM