Brian T. CastelliExecutive VP and COO

Alliance to Save Energy

Energy in a New Administration: The Integration and Synthesis ofofPolicy, Technology & InnovationCarnegie Mellon UniversitySeptember 18, 2008

• An NGO whose mission is: To promote energy efficiency worldwide to achieve a healthier economy, a cleaner environment, and greater energy security

• Guided by a 37-Member, Elected Board of Directors– Led by Sen. Mark Pryor (D-AR) & Jim Rogers, CEO of Duke Energy– 9 Members of Congress – Bi-Cameral; Bi-Partisan– Environmental, consumer, and trade associations heads, state and local policy

makers, corporate executives

What is the Alliance?

Alliance ASSOCIATES•Forging Alliances with Business, Govt. & Public Interests

•Alliance enjoys sponsorship by >150 businesses and organizations across a broad spectrum of economic sectors.

•Complete list at: www.ase.org/section/_audience/associates

• Congress due to adjourn on September 27

• Little chance for energy legislation in waning days– Partisan, election-year wrangling is barrier to

achieving a bipartisan energy bill– Pelosi bill has won House approval, and Gang

of 20 bill has very outside change of winning Senate approval, but chances of reconciliation are slim

The Outlook on the Hill:Balance of the 110th Congress

• Little chance for energy legislation in waning days– Strong press for renewable and energy

efficiency tax credits – there is some chance of getting an agreement on at least a one-year extension of these provisions, all of which will sunset on December 31st in the absence of Congressional action

The Outlook on the Hill:Balance of the 110th Congress

• Energy issues likely to be front-and-center on the agenda for the new Congress– deepening economic woes and a likely crisis

caused by spikes in home heating costs this winter may prompt consideration of a stimulus bill with some energy provisions in January

– increasing support for “Green Jobs” and for using clean energy and efficiency as an “economic engine” that will create new jobs and a trained workforce for energy management and other skilled positions like building inspectors (Tom Friedman argument)

Outlook for the New Congress & Administration

• Good likelihood of major energy bill in 2009 to enact some provisions left over from EISA– RES– Building energy codes

• Energy bill will likely be enacted in front of climate change legislation, which is more likely in 2010, after more debate and negotiation in 2009

Outlook for the New Congress & Administration

• The Alliance and other organizations are working together to develop policy recommendations to Congress for the next climate bill:– Evaluation, measurement and verification– Research and development – Third-party programs – Low-income community impact in an effort to

develop a common “efficiency community ask” for a robust level of funding in the next climate bill from allowance and auction proceeds

Outlook for the New Congress & Administration

• Up to $25 b/yr could be available for energy efficiency from allowance and auction proceeds under a cap-and-trade bill

• How should the funding be allocated?• What is the proper balance between federal,

state and third-party programs?• How to “ramp up” programs? (The U.S.

currently spends only about $3 - $4 billion annually on EE, and that’s mostly utility-funded programs)

Outlook for the New Congress & Administration

• The Alliance is developing new policy recommendations for Congress and the Administration and will meet with the transition teams soon after the election to enlist support for initiatives such as the Commercial Buildings Initiative

Which is a good segue to my final slide!

Outlook for the New Congress & Administration

• Policy – legislation, regulation, standards

• Technology – can drive or be driven by Policy and developed through Public/Private

partnerships

• Innovation – derived from need and fed by policy and technology

So, take the Hybrid Vehicle – Please….

Policy, Technology & Innovation:

Integration and Synthesis