keea energy efficiency conference 2010 opening plenary stephen cowell, csg september 21, 2010
TRANSCRIPT
KEEA Energy Efficiency Conference 2010
Opening Plenary
Stephen Cowell, CSGSeptember 21, 2010
Home Energy Costs Drive Housing Affordability 2003 to 2008
• Average Household Energy Costs 2002-2003: 3.5% of median income
• Average Household Energy Costs 2007-2008: 8.5% of median income
• Median Household Income: $60,000
• Increase in Annual Energy Costs: $3,000
Transportation Energy Cost
• Household miles driven/yr: 40,000• Miles/gallon: 20• Gallons consumed: 2,000• 2002-2003 price: $1.50/gallon• 2006-2008 price: $3.50• Increase in costs per household:
$4,000/yr
The Result: Economic Meltdown
• American families saw a 15% drop in after-tax income
• This was the only substantial change to the economy
• $583 per month drop in disposable income
• Any homeowner on a tight budget was pushed over the edge
The Result: Housing crisis, then economic meltdown due to housing-based financial products
Mortgage Payments Past Due 60-89 Days: United States (SA, %)
0.00
0.50
1.00
1.50
2.00
Quarterly U.S. All Grades Conventional Retail Gasoline Prices
0
100
200300
400
500
Q1
1995
Q1
1996
Q1
1997
Q1
1998
Q1
1999
Q1
2000
Q1
2001
Q1
2002
Q1
2003
Q1
2004
Q1
2005
Q1
2006
Q1
2007
Q1
2008
Q1
2009
Q1
2010
(Cents per Gallon)
The Answer: Energy Efficiency
DUH!
What Can Be Done?
Stepping Stones to Success
• Incentive funds to reduce up front costs• Clear Standards for performing work• Financing strategies to access capital• Training and Quality Assurance: Front and
back end to success• Partnerships and alliances across the
industry
Incentive Funds: Where and how
• State and Regional Policy
-Utility Efficiency Programs
-RGGI
-Regional Energy Markets-FCM
Federal Policy: dollars and leadership• ARRA - the report card
-WAP-SEP-EECBG-Competitive EECBG
• Home Star• National Standards - DOE• Building labeling
Leadership Report card: MA-NY-OR-NJ
Completed Projects per Program per Year
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
MA
NY (NYSERDA + LIPA)
NJ
OR
Adjusted for State PopulationCompleted Projects per Program per Year
as a % of total state households
0.00%
0.05%
0.10%
0.15%
0.20%
0.25%
0.30%
0.35%
0.40%
0.45%
0.50%
MA
NY (NYSERDA + LIPA)
NJ
OR
HOME STAR Triple Win Program Snapshot: Job Creation, Consumer Savings & Carbon Reductions
HOME STAR$5 Billion
• SILVER STAR• GOLD STAR• Tax Incentives• Financing / QA / Admin
Cost: Cost: $5 Billion $5 BillionHomes: Homes: 3.3 Million 3.3 MillionJobs: Jobs: 168,000 168,000
Homeowner Saving (10 yr.): $9.4 BillionHomeowner Saving (10 yr.): $9.4 BillionEquivalent Cars Off-Road:Equivalent Cars Off-Road: 615,000 Cars 615,000 CarsPower Generation Offline:Power Generation Offline: 4 x 300MW Plants 4 x 300MW Plants
Home Star: Status
• A priority legislative initiative for President Obama• Small window of opportunity to achieve passage
prior to October recess• HSC pressing to secure support and votes for
passage• Senator Brown a key vote and HS co-sponsor
How Big an Impact?
• Home Star oil savings over measure lifetime will represent over 1 Billion gallons– (10X amount of oil spilled in Gulf)
= Deepwater Horizon disaster
= Oil saved via Home Star
Contributing to Energy Independence
• Gold Star residential retrofits of 7.7 million oil-heated homes = equivalent of 40 million barrels of oil per year– Equivalent to the entire Outer Continental Shelf oil production in
Alaska and Pacific combined
ARRA Funding: Still drinking from the fire hose?
• Funding status
• Programs still just getting started
• Cycle through April 30, 2012
• But what then?
Lessons Learned from ARRA
• Use of Davis Bacon, Buy American and NEEPA rules difficult to administer in residential retrofit
• Procurement chain from Federal-State-Local-Contractor is a slow process
• DOE needs staffing and focus to manage significant new role
Financing
• Keystone HELPS
• PACE - can it be saved
• Bank based programs
• Fannie Mae - $80-100 million
• Secondary Market Funds
• On-utility bill repayment (OBR)
National Standards
• BPI: new standards and certifications
• RESNET: finding space and role
• DOE: National Standard setting process in place now
• Certifications and Accreditations
• Quality Control and Quality Assurance
The Future
Ultimately it is about how to work today with an eye to institutional change that can lead to a sustainable strategy tomorrow
