Building America’s Green Economy: A Foundation of Energy Efficiency, A Future of Renewable Energy

Building America’s Green Economy: A Foundation of Energy EfficiencyA Future of Renewable Energy 

Kateri Callahan, PresidentRETECH 2009 Conference

Wednesday, February 25

Las Vegas Convention Center

Presentation Outline

The Challenge We Face A Few Words About the Alliance Energy Efficiency – America’s Greatest

Resource EE and RE: A Necessary and Symbiotic

Partnership for a Green Economy

Inventing our Energy Future While Re-Building the Economy

The imperative:

“…the future of our economy and national security are inextricably linked to one challenge: energy.”

The path forward:

“To control our own destiny, America must develop new forms of energy and new ways of using it. This is not a challenge for government alone….It is a challenge for all of us.”

President Barack Obama, December 15, 2008

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+ professionals31 years of experience in policy, research, education, communications, technology deployment and market transformation

Alliance Directors: Bi-Partisan Elected Officials & Industry Leaders

Jim Rogers, CEO Duke Energy

Senator Mark Pryor (D-Ark.)

Guided by a 37-Member, 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

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

Why Energy Efficiency? Powering the U.S. Economy for 30 Years

Why Energy Efficiency? Cheap, Clean & Quick Buys Time to Develop New Technologies Buys Time to Scale-up/Make Cost-Effective

New Technologies Foundation for Cost-Effective Use of

Renewable Technologies Delays and/or Avoids New Carbon-based

Capacity

Codes: Helping to Cut Global Energy Demand Growth

Source: McKinsey Global Institute

..

Here’s Where We’ve Been…

The

History of

EE & RE

By N.R.G.

EE & RE: Working Together in EPAct 2005

EE & RE: Working Together in EISA 2007

But the Future Looks Even Brighter…

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 “Livable Cities”

The Energy ‘A-Team’: Obama’s Cabinet Ministers

John Holdren, Assistant to the President for Science &Technology

Dir. of the Science, Technology, & Public Policy Program at Harvard’s Belfer Center for Science and International Affairs

The Energy ‘A-Team’, continued

Obama “Making Good” on Promises:

Early Action (Jan 08) Directs TD to establish higher fuel economy standards

for vehicles by model year 2011 Directs EPA to reconsider the bid by California and 13

other states to set tailpipe carbon dioxide emission standards requiring greater fuel economy.

Confirms intent to - weatherize 2 million homes over the next two years; - make significant energy efficiency upgrades to 75 percent of

federal buildings (savings of $2 billion in avoided energy costs); - double the country’s renewable energy resource base; and- create nearly 500,000 new “green jobs.”

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Stimulus Funding

About $50 billion for efficiency (2+ years)

On the Horizon…

…More Energy Efficiency?

Up Next:Federal Appropriations

2009 Omnibus Appropriations – “Flat” for EE- About 1.7 Billion

- New Funding to Initiate Commercial Building Initiative

FY 2010 Budget Request for EE Expected to be “Flat” (supplemented by significant stimulus funding)

Net ZEB: Commercial Buildings Initiative (CBI)

Authorized in EISA (12/07) Net-zero commercial building goals:

- 2030: New construction- 2050: Entire stock

Broad government/industry consortium Comprehensive approach (R&D deployment) Coordinate (initiate) national and local actions

- Measure, benchmark, disclose energy performance- R&D for critical technologies and systems - Demonstrate scalable, replicable system solutions- Transform market: education/training, finance, appraisal,

incentives, codes, buyer demand-pull Omnibus 2009 Appropriations bill has $33 Million to Initiate the

Program

Building an EE Foundation for RE Improvements

What: Industry-driven research program, sponsored by the U.S. DOE designed to accelerate the development & adoption of advanced building energy technologies in new and existing homes. Why: •Produce homes on a community scale that use on average 40% to 100% less source energy •Integrate onsite power systems leading to zero energy homes, that produce as much energy as they use, by 2020

Features include:•Climate-specific designs •Super efficient walls, foundations, windows, and roofs•Passive solar heating and cooling•State-of-the-art heating, cooling, hot water, appliances, and lighting systems•Solar thermal and solar electric systems Moisture resistant construction techniques.

U.S. DOE’s Building America Program

Followed by:Action on energy bill?

Best forecast -- Senate will take up an energy bill in the April/May time frame;

Desire to add new authorizations that could be funded from auction proceeds from a climate bill considered in the fall;

Senator Bingaman is ready to introduce a comprehensive energy bill and the "Gang of Twenty" is also expected to introduce a bill sometime in January

House may introduce combined energy/climate bill Interest in National RPS/EERS (Markey has

introduced bills)

- Advanced building energy codes: Set targets for national model building energy codes of 30% improvement in 2010 and 50% improvement in 2020

- Energy Efficiency Resource Standard: Require utilities to save energy equal to 10% of electricity sales and 7% of natural gas sales in 2020 through end-use, on-site or distributional efficiency programs

- Vehicle feebate: Provide car manufacturers a graduated tax incentive (rebate) for fuel-efficient vehicles, paid for by a graduated tax (fee) on gas guzzlers

- Promote complete streets: Direct states and localities to accommodate all users, including bicyclists, pedestrians, and transit users, when developing street projects.

Alliance Recommendations:

Alliance, together with other organizations, is working to develop recommendations for the next climate bill

We are looking at evaluation, measurement and verification; third-party programs; how much should be spent on R&D

Objective is to develop a unified “ask” from the efficiency community by the end of this year, then start briefing Congressional staff

Despite economic woes, expectation on the Hill is for consideration of a climate bill as early as the summer or fall of 2009.

What about a Climate Bill?

RE & EE: Key Ingredients to Climate Change Legislation

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Climate Bill Funding: Energy Efficiency To utilities for customers, including efficiency To leading states based on savings Local government block grants Low-income weatherization Efficient buildings and appliances programs Public transit Advanced vehicles Green jobs training ARPA-E (RD&D)

The Future is Ours to Invent! A Future of Promise:

Near Term:

- The U.S. Economy is Re-built on Development and Deployment of Energy Efficiency and Clean Energy Technologies

Longer Term (but Not Much!):

- U.S. Becomes the Most Energy Efficient Economy in the World

- The U.S. Becomes a Global Leader in the Production and Use of Renewable Energy

Building Blocks of a Green-fueled Economy:

Thank you!

For More Information….

Kateri CallahanPresident

Alliance to Save Energy1850 M Street, NW

Washington, D.C. [email protected]

www.ase.org202.857.0666