PEW Clean Energy Program

THE PEW CLEAN ENERGY PROGRAM

Emily Bryan

The Pew Clean Energy Program

The goal over the next five years is to

accelerate the clean energy economy for its

national security, economic and

environmental benefits.

The program promotes the

adoption of key changes to U.S.

energy policy in four sectors:

• Industry

• Utilities

• Transportation

• Research and Development

Clean Energy Economy Research Portfolio

Clean Energy Research: Defined

A clean energy economy

generates jobs, businesses, and

investments while expanding clean

energy production, increasing

energy efficiency, reducing

greenhouse gas emissions, waste

and pollution, and conserving

water and other natural resources.

THE U.S. CLEAN ENERGY ECONOMY:

Jobs of Today and Jobs of Tomorrow

4

Clean Energy Jobs Are in Every State

Clean Energy Jobs in the United States

• Job growth in the clean energy

economy outperformed overall job

growth in 38 states and the District

of Columbia between 1998 and

2007.

• Jobs include engineers, plumbers,

construction workers, machine

setters, teachers and others with

annual incomes ranging from

$21,000 to $110,000.

• In 2007, there were over 770,000

jobs in the clean energy economy.

Nations Compete: Who’s Winning

the Clean Energy Race? 2012

Worldwide Investment Falls

Clean Energy Sector Remains Resilient

Investment Moving West to East

Investment Shifting to Solar

Small-Distributed Capacity Sustains

Global Capacity Growth

Total U.S.-China Clean Energy Trade Flows

(in millions of U.S. dollars)

Cumulative global

revenue resulting

from installation of

new clean energy

resources is

projected to total

$1.9 trillion from

2012 to 2018.

Continued Growth Forecast in the Sector

15% of total energy from low-carbon sources by 2020

35% of electricity from renewable energy by 2035

28 GW from solar, 5 GW from wind by 2020

Global Clean Energy Targets

?

Electricity generation

is inefficient, as 68

percent of energy

used is wasted.

The United States

annually wastes

enough energy to

power the entire

nation of Japan for

one year.

A National Industrial Energy Efficiency Goal

What is combined heat and power?

Combined heat and power

(CHP) generates electricity and

thermal power from a single fuel

source.

Combined heat and power

captures waste heat and puts it

to efficient use, providing

significant economic and

energy security benefits.

Who uses CHP?

There are more than 3,850

CHP and waste heat recovery

(WHR) installations in the U.S.

totaling 82 gigawatts (GW).

Users include steel and

chemical companies, auto

manufacturers, hospitals,

casinos, data centers, food

processing facilities, and the

Department of Defense.

There is broad, bipartisan

support for policies to

deploy CHP, including:

• Manufacturers

• Large energy users

• Organized labor

• National security

organizations

• Environmental

organizations

U.S. and CHP Competitiveness

CHP accounts for only 8 percent of power generation in the U.S.

Benefits of doubling CHP in the United States

New investment

Job creation

Reduced energy use

Savings for CHP users

$234 billion in new

private investment

1 million new jobs in

states across the U.S.

Reduce total energy

use by 3 percent.

ArcelorMittal’s East

Chicago facility will

save up to $100 million

per year.

CHP can provide power during disasters

During Hurricane Sandy, hospitals,

universities, large apartment

complexes and other CHP-equipped

buildings were able to provide power

and heat to first responders and the

public.

Louisiana and Texas have prioritized

consideration of CHP for critical

infrastructure including government

buildings and hospitals.

New York and New Jersey are

investing in new CHP projects to

limit grid interruptions during future

weather events.

Policy matters – Investment Tax Credit

Current Policy

10 percent CHP

Does not include waste heat

recovery

Applies to the first 15

megawatts of projects smaller

than 50 megawatts (MW)

Proposed Policy

Expand to 30 percent

Include waste heat recovery

Apply to first 25 MW, no project

size cap

Policy Matters: Master Limited Partnerships

• Conventional energy technologies use MLPs to reduce taxes and access

financing from public markets at lower rates

• MLPs have a market capitalization of more than $370 billion, but clean

energy technologies cannot access this potential financing source

• Some experts estimate that MLP status could reduce financing costs for CHP

projects by up to 50 percent

• Bipartisan legislation in the U.S. House and Senate would expand MLP

treatment to clean energy technologies including CHP and WHR

Policy Matters: Clean Energy Manufacturing Initiative

• Leverage investment in clean energy manufacturing, including efficient

manufacturing

• New executive order seeks to increase combined heat and power by 40

gigawatts by 2020

• DOE Regional Clean Energy Application Centers provide technical

assistance to businesses interested in efficiency solutions

Policy Matters: Efficiency Race to the Top

• Incentivize states to adopt policies that promote efficiency, including industrial

efficiency

• Similar to popular education model

• President Obama has proposed $200 million in his budget, legislation is

being drafted

Policy Matters: Clean Energy Business Network

• Pew’s business network includes more than 2,200 businesses nationwide

• Free to join

• Updates on policy, clean energy news, and local events

• Commit to joining Pew in advancing clean energy policies that can help

YOUR business

• Join Us. Go to www.pewtrusts.org/cleanenergy to sign up.

How Can I Engage?

• Join the Clean Energy Business Network.

• Be a part of our outreach to Senators Alexander and Corker.

– Getting business leaders to endorse specific legislation.

– Coordinating calls/letters/emails their offices.

– Setting and managing meetings with in-state staff.

– Arranging visits to D.C. to meet with the members or their policy staff on

the Hill.

– Communicating the needs of Tennessee business leaders to our

members efficiently and effectively.

[email protected]

www.pewtrusts.org/cleanenergy

For more information: Emily Bryan