Energy Efficiency: Meeting the Challenge & Fueling A Better Built Environment
Presentation by
Kateri Callahan, President
to the
EnVisioneering Symposium Carlsbad, CA
November 14th, 2008
Overview A Few Words About the Alliance Energy Efficiency: America’s Greatest Resource Why Deploy Energy Efficiency – Meeting the
World’s Energy, Economic and Environmental Challenges
Policy: Tapping the Full Potential of Energy Efficiency
Forecast for the Future: Energy Efficiency as the “First Fuel” for America and the World
What is the Alliance to Save Energy?
A unique NGO formed and still led by Members of Congress
Guided by a 37-Member, Elected Board of Directors
- Led by Senator Mark Pryor (D-AR) and Jim Rogers, CEO of Duke Energy
- Includes 9 Members of Congress – Bi-Cameral; Bi-Partisan
- Also includes environmental, consumer, and trade associations heads, state and local policy makers, corporate executives
Forging Alliances: Business, Govt. & Public Interests
Sponsorship and participation of more than 150 organizations Involvement by businesses in all economic sectors Initiatives underway in research, policy advocacy, education, technology
deployment, and communications
Energy Efficiency: Faithful Friend
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Conventional Hydroelectric
Wood, Waste, Alcohol
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Energy Efficiency and Conservation
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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
Energy Efficiency has been powering the U.S. economy for over 30 years!
Enormous Savings Energy Efficiency AVOIDING roughly 2.5
billion tons of CO2 annually
Saving roughly $400 billion annually
Why Do More?
Growing Energy Demand is Unsustainable
Global demand grows by more than half over the next quarter of a century, with coal use rising most in absolute terms
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Why Do More? U.S. Growth in Energy Use Poses a National Security Threat
Why Do More?Energy Use is a Pocketbook Issue
Why Do More? Energy Use is a Global Climate Issue
Source: Energy Information Administration
Two Areas with Big Potential Savings: Buildings and Industry
Energy Information Administration (EIA)
The Building sectoraccounts for almost½ of the energy consumption in the U.S.
Buildings account forover 70% of total USelectricity consumptionand are responsible forover 40% of CO2 emissions.
Industry accounts for 32% of total U.S. energy consumption.
We Can Do More & Cost-Effectively!
Source: McKinsey Global Institute
Investing in energy efficiency can cut global energy demand growth from 2.2% to 0.7%
EE: The No-Cost Way to Reduce GHG Emissions
Energy Efficiency should be fully considered in GHG reductions. All items to the left of the arrow represent “negative marginal costs”
The Challenge? Market Distortions
Principal Agent or “Split Incentives”- Home builder versus buyer
- Utility versus customer
Transaction Costs- Lack of information on life-cycle cost for products and/or
paybacks for upgrades
Lack of Investment in RD&D and EE Programs Public Policies Essential Investment in EE Programs Essential
Work is Being Done to Overcome Challenges…
At the Federal Level - Tax Incentives- Federal Energy Management- Appliance and Equipment Standards- Weatherization Assistance Program
• At the National Level • Model Building Energy Codes
• At the Regional Level• Climate Initiatives (e.g.,RGGI)
• State/Local Level • Code Adoption & Enforcement• Utility Portfolio Standards & Efficiency Programs• Financial Incentives
• Public Education and Outreachtopbuild(regional & state initiatives; code adoption; local adoption & enforcement policy, with enforcement in some states; education)
Indirectly• Federal Programs aimed at emissions reductions
And the Government Responds….
Energy Policy Act of 2005 will by 2020:- Reduce U.S. energy use by 2%- Reduce electricity demand by 4%- Reduce oil use by 0%- Reduce CO2 emissions by 3%
Energy Independence and Security Act of 2007 will by 2020 (2030):- Reduce U.S. energy use by 4% (7%)- Reduce electricity demand by 4% (5%)- Reduce oil use by 5% (10%)- Reduce CO2 emissions by 5% (9%)
Estimates from ACEEE, ASE
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10% Goal - 1995 (NECPA)
20% Goal - 2000 (EPACT)
30% Goal - 2005 (EO 12902)
35% Goal - 2010 (EO 13123)
25.6% Reduction, 2004 (Preliminary Data)
Actual Energy Use
At the Federal Level….Leadership by Example
Energy savings goals + report cards Public buildings Public procurement
Federal building energy/sq.ft. down 30% in 20 years
• The largest 4,000 plants use 58% of U.S. industrial energy.
• A large plant uses as much energy as 20,000 typical homes; A medium-sized plant consumes the same energy as 455 homes.
• For every U.S. plant, there are 320 homes and 685 motor vehicles.
Big bang for the “outreach buck:”
Resources to implement energy-saving measures are
available to help:
“Save Energy Now”
www.eere.energy.gov/industry/
Federal Programs: A Leg Up for Industry
DOE’s “Save Energy Now”: The Results
So far, 653 assessments completed. As of November 13, 2008, 527 plants
have reported the following:
Identified energy saving costs more than $852 million
Implemented energy savings nearly $121 million
Energy savings measures underway or scheduled:
more than $357 million
Identified natural gas savings 81 trillion Btu—the amount of natural gas consumed by more than 1 million single-family homes per year
Total potential carbon dioxide (CO2) emissions reduction:
7.2 million metric tons—the equivalent to taking nearly 1.2 million cars off the road
Our Government at Work:Extension of Tax Incentives
New Homes Builder tax credit - up to $2,000 if 50% more efficient compared to 2004 IECCC code; $1,000 for an Energy Star manufactured home. (Through 2009)
Existing HomesHomeowner tax credit – 10% of cost of installing building envelope components consistent with IECC 2000; capped at $500; $200 can apply to windows. (Through 2009)
Commercial Buildings Deduction up to $1.80/sq.ft. for buildings designed to use 50% less energy than ASHRAE-90.1 (Through 2013)
Public Buildings: Assignable deduction!
So…What Else Do We Need? Better Building Codes
Today’s building codes
affect ALL new buildings
By 2010By 2010: • Almost 5 million new housing units
• Over 233 billion sq feet commercial floor space
By 2020By 2020: • 23.4 million new housing units
• Over 1 trillion sq feet commercial floor space
By 2030By 2030: • Over 41 million new housing units
• Over 2 trillion sq feet commercial floor space
Source: EIA, Annual Energy Outlook 2008
At the State Level….A Slog???
Federal Legislation Pending- Would Drive 30% Improvement in Residential and Commercial EE
Codes by 2010; 50% by 2020 2009 Model Energy Code (IECC) Improves New Home
Efficiency by approximately 13% over 2006 IECC- EECC Sought 30% Improvement
ASHRAE Goal (Commercial) is a 30% Improvement in Efficiency in the 2010 Code Cycle
Regulations Boost EE for New Federal Facilities by 30% EECC Building on Broad Support Base: the Alliance to Save
Energy and U.S. DOE, Utilities, Businesses, NGOs
At the National Level…..Improving Model Codes
What Else Can We Do? Improve Existing Stock
Appliance standards and labeling Weatherization Building labeling Consumer education (e.g. ENERGY STAR)
What Else Can We Do?...INVEST in the Future
Low investment in efficiency R&D- Little R&D in energy sector
- Fragmented buildings sector
What Else Can We DO? INVEST
Source: CRS Report: RS22858
What Else Can We Do? Fund Programs Authorized in EISA and
EPACT- Zero Net-Energy Commercial Building Initiative
- $450 Million Public Information & Outrech Program
Enact a Federal Energy Efficiency Resource Standard
Price Carbon (Cap’n’Trade or Tax)
Energy issues likely to be “front-and-center”- Deepening economic woes - Continuing increases in home and business
energy costs- Growing concern about national security- Urgent need to tackle climate change - Increasing support for “Green Jobs” and for using
clean energy and efficiency as an “economic engine”
Another Energy (and/or Stimulus) Bill BEFORE Climate Legislation
Federal Forecast: ACTION
Federal Forecast: ACTION
The Senate Debate on Climate Legislation (Lieberman-Warner) this past June- Fails cloture 48-36; proponents claim 54 supporters;
opponents claim less than 48 supporters- Calls for a carbon cap-and-trade program- Viewed as a “dress rehearsal” for 111th Congress
House Continues Work- Energy & Commerce Committee Issues Discussion Draft- Markey Introduces “iCAP” legislation
New President Supports Climate Legislation Global Negotiations – Copenhagen, 2009
Energy Efficiency in Climate Legislation
A Look at President-Elect Obama’s Platform…
On Energy Efficiency– Reduce Electricity Demand 15% by
2020– Net-Zero Energy Buildings by 2030– Overhaul Federal Appliance Standards– 45% Improvement in New Federal
Building Energy Use by 2014– 25% Improvement in Existing Federal
Building Energy Use by 2014– 15% Overall Reduction in Federal
Energy Use by 2015– Flip Incentives for Utilities– Invest in a “Smart Grid”– Weatherize 1 Million Homes Annually– Invest and Incent “Liveable Cities”
The Challenges Can Be Overcome: Others are Doing More with Less!
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An Invitation…….. Join the Alliance to Save Energy in Paris April 27
through 29 for EE Global- Learn more about what other states, other countries, other
businesses are doing to deploy energy efficiency;
- See the latest technologies, products and services;
- Build partnerships for success;
- Share best practices; and,
- Meet the leaders in energy efficiency from every corner of the globe and every sector of the global economy!
EE GLOBAL 2009 April 27 -29, 2009 Paris, France at Palais des Congres de Paris Hosted by the Alliance to Save Energy Organized by an International Steering Committee
Chaired by Marc Bitzer, President, Whirlpool Europe; Jean-Pascal Tricoire, President and CEO, Schneider Electric; Nobuo Tanaka, Executive Director, International Energy Agency; Lena Ek, MEP; & Claude Turmes, MEP
Program created by an International Program Committee Chaired by Paolo Bertoldi, I.E.S. – Renewable Energies Unit, Directorate
General JRC, European Commission