eu workshop: a shared vision for energy & climate
DESCRIPTION
In her panel, 'Energy Efficiency: Greatest New Resource", Callahan looks at the chief forcing mechanisms - regulations and financial incentives - that have effectively accelerated the deployment of energy efficieny in the U.S. Her presentation covers the recent history of energy efficiency in U.S. policy, marked by President Obama's energy platform and FY2010 budget, as well as his recent overhaul of corporate average fuel economy standards. Callahan also examines the wealth of energy efficiency funding included in the American Recovery and Reinvestment Act of 2009, and the potential for carbon emissions reductions in the House of Representative's American Clean Energy and Security Act of 2009.TRANSCRIPT
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Mining America’s “Greatest Energy Resource” for Tomorrow’s Green Economy
EU Workshop: A Shared Vision for Energy & Climate
Brussels, Belgium, May 28, 2009Kateri Callahan, President
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A Few Words About the Alliance Energy Efficiency: America’s Greatest Energy
Resource Mining Energy Efficiency through Public Policy The Ramp-up to America’s Green Energy Future
- Stimulus Funding for EE
- Increasing Federal Appropriations for EE
- Driving EE as Part of Climate Legislation
Overview
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What is the Alliance to Save Energy? Mission: To promote energy efficiency worldwide to achieve a healthier economy, a cleaner environment, and greater energy security.
The Alliance is… Staffed by 50+ professionals32 years of experience in policy, research, education, communications, technology deployment and market transformation
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Alliance Directors: Bi-Partisan Elected Officials and Industry Leaders
Jim Rogers, CEO Duke Energy
Senator Mark Pryor (D-Ark.)
Guided by an elected Board of Directors Leaders of environmental, consumer, and trade
associations; state and local policy makers; corporate executives
Bi-partisan, bi-cameral Honorary Vice Chairs
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Forging Alliances: Business, Government & Public Interests
Sponsorship and participation of more than 150 organizations Involvement by businesses in all economic sectors Headquartered in Washington, D.C. with operations in several US
states, Eastern Europe, South Africa, Mexico, and India
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Proof that Energy Efficiency Works
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Imperative for More Energy Efficiency
Share of Global Energy-Related CO2 Emissions by Country (2005)
China, 19%
Russia, 6%
Japan, 4%
India, 4%
Western Europe, 13%
,
Others, 32%
US Other Sectors, 13%
US Buildings, 8%
Source: Energy Information Administration
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EE: Enormous Potential for Savings in ALL Sectors…
Source: McKinsey Global Institute
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EE: The No-Cost Way to Reduce GHG Emissions
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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
The Challenge? Market Distortions
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Five Tenants of Sound EE Public Policy
1)Research, development and deployment (RD&D)
2)Education and outreach
3)Incentives
4)Standards & Codes
5)Government “Leadership by Example”
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A Big Year for Energy Efficiency in Public Policy
Obama’s election platform
American Recovery & Reinvestment Act (ARRA, or Stimulus Bill)
President’s Fiscal Year 2010 budget
American Clean Energy and Security Act (ACES)
President’s new CAFÉ standards
2008
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– Reduce electricity use 15% by 2020– Net-zero energy buildings by 2030– Overhaul federal appliance standards– By 2014, reduce energy use in new
federal buildings 45%; 25% in existing federal buildings
– Flip incentives for utilities– Invest in a “smart grid”– Weatherize 1 million homes/year– Investment incentives for “livable
cities”– Showed early commitment to large
green energy component in the economic recovery bill
President Obama: Energy Efficiency Advocate
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2009 American Recovery & Reinvestment Act (Stimulus Bill)
~ $75
Billion
Potential
for EE
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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)
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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.
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A New Era for U.S. Fuel Economy Standards Obama Administration National Fuel Efficiency Program
Requires 35.5 mpg fleet-wide average fuel economy by 2016
•5% improvement annually (2012 – 2016)•Projected to save1.8 billion barrels of oil•Projected to reduce carbon emissions
equivalent to taking 177 million cars off the road for a year
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Next Up – Federal Climate and/or Energy Legislation? House Energy and Commerce Reports “American
Clean Energy and Security Act” (ACES)
•Partisan vote – Signals Potential House Passage
•Two More House Committees to Consider
Senate EPW Committee Waits on House Action
Senate Energy Committee Working on Energy Legislation
Copenhagen December “Deadline” Looms
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ACES:Cap is the crown jewel
85% of US GHG emissions covered- Could be higher
Covered emissions reduced 83% in 2050 Defend and protect the cap!
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ACES: Goals for Energy Efficiency
Policies will no longer save more energy. Instead they will—
Reduce cost of meeting carbon cap by
Addressing market barriers, especially among energy end-users
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ACES: EE Programs
Complementary EE policies Codes, standards, building labeling, electric efficiency
resource standards
Complementary 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
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EE Funding through Allowance Allocations
Calculations based on allocations in the Waxman-Markey substitute amendment & total allowance values from EPA’s Preliminary Analysis of the Waxman-Markey discussion draft.
Includes SEED accounts, building codes, natural gas utilities, heating oil and propane consumers, and one eighth of Clean Energy Innovation Centers funding
Does not include noncompulsory utility funding for energy efficiency, revenues from the renewable electricity standard or separate authorizations.
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Building Energy Codes: Development
National energy codes with aggressive energy savings targets:- 30% savings in 1 year
- 50% savings in 2014 (homes), 2015 (comm.)
- 5% more savings every 3 years ICC and ASHRAE get first
chance, with DOE help DOE sets if they don’t
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Building Efficiency Labels EPA to establish model ratings and
labels- Actual performance and designed
performance ratings- Build up EIA surveys (CBECS, RECS) as
basis Implementation:
- EPA to work with states andlocal governments
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Appliances and Lighting: New Standards
Lighting- Outdoor lighting- Portable light fixtures, GU-24, BR lamps
Other- Commercial furnaces- Hot food holding cabinets- Water coolers + dispensers- Electric spas + hot tubs
TV test procedure
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Standards + Labels Process Standards process:
- Multiple metrics- Criteria for setting the standard level- Manufacturer sales reporting- Petitions for test procedures- Enforcement by states, state waiver criteria,
preemption of state codes
Labels- Carbon on Energy Guide label- Smart grid in Energy Star and Energy Guide- Reforms of Energy Star: rating system
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Utilities: Efficiency and Renewable Electricity Standard
Utilities meet 20% of electric demand by 2020 from efficiency and renewables- Efficiency up to 5%, or up to 8% on request of
governor.
- Additional savings likely around 3% Estimated savings from efficiency
programs, not a sales limit. In-state trading through bilateral contracts Also to set peak demand reduction goals
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Transportation Light duty vehicle emission standards Emission standards for trucks, trains,
ships, and airplanes
Require states to set emissions reduction goals and large MPOs to set transportation plans that meet them.
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Authorizations Building energy code implementation REEP building retrofits Building labeling programs Manufactured home replacement “Best-in-class” appliance program Waste heat recovery grants Vehicle electrification and plug-in vehicle
programs SmartWay heavy duty vehicle program Clean Energy Innovation Centers Low Income energy efficiency program
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Savings Estimates
Potential energy and carbon savings from key policies:
Year Energy Savings CO2 Savings
Building Codes 2030 3 Quads 200 MMT
Appliance Standards 2020 0.2 Quads 12 MMT
Electricity Standard 2020 1 Quad 58 MMT
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And Moving Beyond…. Requirements for Deploying Energy Efficiency
Fully:
- Wise Investment- Effective Implementation of Public Policies- Sound Evaluation, Measurement & Verification- Rapid and Global Migration of Best Practices and
Best Policies
The Results?- Improved Economies Around the World- Enhanced Global Energy Security- A Better Environment
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Thank you!
For More Information….
Kateri CallahanPresident
Alliance to Save Energy1850 M Street, NW
Washington, D.C. [email protected]
www.ase.org202.857.0666