Energy Efficiency: The Foundation for a Clean Energy Economy
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Transcript of Energy Efficiency: The Foundation for a Clean Energy Economy
Kateri Callahan, PresidentAlliance to Save Energy
Webinar: An Analysis of the State of Clean Energy Policy in the U.S.January 25, 2010
Energy Efficiency: The Foundation for a Clean Energy Economy
Presentation Overview
A Few Words About the Alliance Energy Efficiency – Our Greatest
Resource Driving Energy Efficiency Through Policy:
A Formula for Success Kateri’s Crystal Ball: Forecasting Federal
Action on EE in 2010
What is the Alliance to Save Energy?
The Alliance to Save Energy
Policy Leaders
Environ-mental Groups
Academia
Business Leaders
Mission: To promote energy
efficiency worldwide to achieve a healthier economy, a cleaner environment, and greater energy security.
Organization: Staffed by 60+ professionals 32 years of experience $12 million annual budget Recognized as premier EE
organization in the world
What is the Alliance to Save Energy?
The Alliance to Save Energy promotes energy efficiency worldwide to achieve a healthier economy, a cleaner environment and greater energy security.
- Non-profit organization headquartered in U.S.; operations world-wide- Led by Senator Mark Pryor (D-Ark.) and Peter Darbee, President and CEO of
Pacific Gas and Electric- Includes 10 Members of Congress – Bi-Cameral; Bi-Partisan- Also includes environmental, consumer, and trade associations heads, state
and local policy makers, corporate executives
Working with and Across All Sectors of the Economy
170 companies, organizations, and institution in Associates Program Associates Program membership represents all economic sectors Initiatives underway in research, policy advocacy, education, technology
deployment, market transformation and communications
Why Energy Efficiency?30 years of savings…
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Geothermal, Solar and Wind
Conventional Hydroelectric
Wood, Waste, Alcohol
Nuclear Electric Power
Coal
Natural Gas
Petroleum
Energy Efficiency and Conservation
Quads
America's Greatest Energy Resource Energy Efficiency and Conservation Improvements Since 1973
Have Reduced Annual Energy Consumption by 50 Quads
2007 Domestic Production Net Imports
Alliance to Save EnergyAugust 2008
Enormous Savings Energy Efficiency AVOIDING roughly 2.5
billion tons of CO2 annually
Saving roughly $400 billion annually
Public Policy Helped Deliver EE Into the U.S. Economy
Year Statute Residential Commercial Industrial Transport Electric Federal/StateGovernment
1975 Energy Policy and Conservation Act
§340 Industrial Equipment Efficiency
§321 CAFE for cars and light trucks
§381 Federal Conservation Programs;
1976 Energy Conservation and Production Act
Low-income home weather-ization; appl. eff stds
EPCA §361 State Energy Programs
1978 National Energy Act (NECPA, PURPA, PIFUA)
Energy efficiency tax credits
Energy efficiency tax credits
PIFUA PURPA §210, PIFUA
NECPA; EPCA §381, 382 Fed’l efficiency standards
1989 National Energy Conservation Policy Act
EPCA §321 Consumer Appliance Efficiency
EPCA §400 Alt fuel use in light duty vehicles
§210 Utility conservation program
EPCA §400 Federal fleet requirements; state program update; ESCOs
1992 Energy Policy Act of 1992
Model energy eff. building codes; appl and window stds
Comm office equipmt eff stds
§131 indust. efficiency grants
Utility energy efficiency grants
§157 Fedl energy training, audits, procurement
RD&D
Incentives
Education/Outreach
Codes/Standards
Deploying EE in the U.S.: A Foundation of Public Policy
To encourage technological innovation
To gain foothold in market
To achieve market penetration
To lock in savings for consumers and businesses
The EE Policy March Quickens
Year Statute Residential Commercial Industrial Transport Electric Federal/StateGovernment
2005 Energy Policy Act of 2005
§135 Appliance stds, 124 eff appliance rebates
Eff standards for commercial equipment
Fuel efficiency studies
Net-metering,Interconnect standards, PURPA relief
§101 Energy saving measures in Federal buildings
2007 Energy Independence and Security Act of 2007
Light bulb and consumer appliance standards
Institutional Grants and Loan; Zero-energy Comm Bldgs
EPCA §371 Industrial Waste Energy Recovery
§101, new CAFE Stds;
Title XIII, Smart Grid policy
§141 Fed fleet reqs; §431,521 high perf Fed bldgs; §541 EECGB
2009 ARRA (Stimulus Bill) Weatherization funding for low-income homes
Electric vehicle and battery funding
Smart grid funding; transmission study funding
State Energy Office Funding; EECGB Funding
EPAct 2005 and EISA 2007: Setting the Stage
EISA 2007: A marriage of…Vehicle
CAFE standards Appli
ance standards
Federal
energy
manageme
nt
Certain
building
standards
R&D progr
am authorizatio
ns
EPAct 2005:EE provisions for:- Buildings- Transportation- R&D- Utilities- Tax Incentives
And Policies Matter: The Outlook After EPAct and EISA
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Projected U.S. Energy Consumption
Actual 1973 Projection AEO 2005 AEO 2009
2009: A Big Year for Energy Efficiency in the U.S.
Stimulus package
President’s Fiscal Year 2010 budget
American Clean Energy and Security Act (ACES)
President’s new CAFÉ standards
May May MayJanuary
2009
JuneJuly
HOUSEPASSES ACES
(6/26)
Ongoing approps in House/Senate climate/energy bills
DOE: new lighting standards
October
October
November
Executive Order, EE in federal agencies
Outdoor Lighting standards
HVAC standards agreement
December
House Passes $75 Billion “Jobs for Main Street” bill
November
Bilateral agreement: U.S.-China Energy Efficiency Action Plan
December
COP15: Secretary Chu announces Climate REDI Program
June
American Recovery & Reinvestment Act: $65B Related to Energy Efficiency
Funding in Millions of US Dollars
ARRA: Built on the Five Pillars of Good Public Policy
RD&D – Smart Grid ($4.5 bill)– DOE RD&D ($2.25 billion)
Incentives– Extension of tax incentives
Codes & Standards– “Conditions” State funding on strong building codes
Education & Outreach– State Energy Star rebate programs ($300 million)
Government Leadership by Example– Federal “High-Performance Green Buildings” ($4.5 billion)
President Obama’s FY 2010 Budget: A+ in EE
108% Increase Over FY 2009 Request, including:
$10 million increase for the industrial sector $98 million increase in the Department of Energy’s
(DOE) Building Technologies Program–includes $10 million for building energy codes. $10 million for the Federal Energy Management
Program$25 million increase for the State Energy Programincreases for DOE’s ENERGY STAR program,
commercial buildings, residential buildings, R&D, and equipment standards.
Energy and Climate LegislationAmerican Clean Energy Leadership Act (ACELA) Passed Senate ENR Comm. 17 June Energy bill similar to ACES, but with no
cap-and-trade provisions
Savings by 2030:- 4.3 quads- $36B for consumers ($240/household)
American Clean Energy and Security Act 2009 (ACES) Passed House 26 June Standards + incentives to promote
clean energy tech Firm cap on GHG emissions Savings by 2030:
- 8.8 quads- $62B for consumers
($486/household)
The role of energy efficiency in climate legislation
Efficiency is the quickest, cheapest way to reduce energy consumption and lower greenhouse gas emissions
In ACES, energy efficiency provisions alone would: Save American households about $154 per year in 2025.
(EPA)
Reduce carbon allowance price by 1.5 percent between 2015-2050. (EPA)
On the whole, ACES would create on average 120,000 new energy efficiency jobs nationwide each year between 2012-2020.(Center for American Progress)
ACES: EE Programs Complementary EE policies
Building codes and labeling programs Appliance standards Electric efficiency resource standard
Complementary EE Programs- EE in WM is 3-6% of allowance value
$81 to $167b over 2012-2050
- 12.5% of allowance value could get Allowance prices 10% lower Electric, nat gas and petrol prices 1-3% lower Electric and natural gas demand 3-7% lower
according to EPA analysis April 20
The Outlook Should Waxman-Markey Become U.S. Law
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Projected U.S. Energy Consumption
Actual 1973 Projection AEO 2005
AEO 2009 ARRA 2009 ACES
Forecast for U.S. Energy Efficiency Policy - 2010
Clean Energy Legislation w/ Strong EE - Building Codes- Appliance Standards- Innovative Financing Mechanisms- Significant Funding from Allowances
New Jobs Bill- Loan Guaranties- Workforce Training- Federal Transit & Fixed Guideways- Home Star??? Residential Retrofit- Building Star??? Residential Retrofit
Significant FY 2011 Appropriations International Accords & Binding International
Climate Treaties???