The Alliance to Save Energy is a nonprofit organization that promotes energy efficiency worldwide. It has over 60 staff members and an annual budget of $12 million. The Alliance represents policy leaders, environmental groups, businesses, and academia. It advocates for energy efficiency policies and works on initiatives in research, advocacy, education, and communications. Major federal energy efficiency laws and programs have been passed since 1975. Energy efficiency is the largest source of energy in the US, exceeding petroleum, natural gas, and coal. It has advantages like being the lowest cost source of energy and having no emissions. However, it also has disadvantages like requiring many individual decisions and upfront costs. The American Recovery and Reinvestment Act provided $26 billion for energy efficiency

1. Role of Energy Efficiency in
Federal Policy
Energy Solutions Center
New York Marriott at the Brooklyn Bridge Hotel
Brooklyn, New York
October 6, 2010

2. The Alliance
to
Save Energy
Policy
Leaders
Environ-
mental
Groups
Academia
Business
Leaders
Mission:
 To promote energy efficiency
worldwide to achieve a
healthier economy, a cleaner
environment, and greater
energy security.
Organization:
 Staffed by 60+ professionals
 32 years of experience
 $12 million annual budget
 Recognized as the premier
energy efficiency
organization in the world
About the Alliance

3. About the Alliance
 The Alliance to Save Energy promotes energy efficiency worldwide to
achieve a healthier economy, a cleaner environment and greater energy
security.
- Non-profit organization headquartered in U.S.; operations world-wide
- Led by Senator Jeanne Shaheen and Peter Darbee, President
and CEO of Pacific Gas and Electric
- Includes 14 Members of Congress – Bi-Cameral; Bi-Partisan
- Also includes environmental, consumer, and trade associations heads,
state and local policy makers, corporate executives

4. Alliance Associates Program
Business ▪ Government ▪ Public Interests
 Sponsorship and participation of more than 160 organizations
 Involvement by businesses in all economic sectors
 Initiatives underway in research, policy advocacy, education, technology
deployment, and communications

5. Milestone Energy Efficiency laws
Year Statute
1975 Energy Policy and
Conservation Act
1976 Energy Conservation
and Production Act
1978 National Energy Act
1989 National Energy
Conservation Policy
Act
1992 Energy Policy Act of
1992
2005 Energy Policy Act of
2005
2007 Energy
Independence and
Security Act of 2007
2009 ARRA (Stimulus Bill)

6. Major Energy Efficiency Programs
Year Statute Residential Commercial Industrial Transport Electric Federal/State
Government
1975 Energy Policy and
Conservation Act
§340
Industrial
Equipment
Efficiency
§321 CAFE for
cars and light
trucks
§381 Federal
Conservation
Programs;
1976 Energy Conservation
and Production Act
Low-income
home weather-
ization; appl. eff
stds
EPCA §361 State
Energy Programs
1978 National Energy Act Energy
efficiency tax
credits
Energy efficiency
tax credits
PIFUA PURPA §210,
PIFUA
NECPA; EPCA §381,
382 Fed’l efficiency
standards
1989 National Energy
Conservation Policy
Act
EPCA §321
Consumer
Appliance
Efficiency
EPCA §400 Alt
fuel use in
light duty
vehicles
§210 Utility
conservation
program
EPCA §400 Federal
fleet requirements;
state program
update; ESCOs
1992 Energy Policy Act of
1992
Model energy
eff. building
codes; appl and
window stds
Comm office
equipmt eff stds
§131 indust.
efficiency
grants
Utility energy
efficiency
grants
§157 Fedl energy
training, audits,
procurement
2005 Energy Policy Act of
2005
§135 Appliance
stds, 124 eff
appliance
rebates
Eff standards for
commercial
equipment
Fuel
efficiency
studies
Net-metering,
Interconnect
standards,
PURPA relief
§101 Energy saving
measures in
Federal buildings
2007 Energy Independence
and Security Act of
2007
Light bulb and
consumer
appliance
standards
Institutional
Grants and Loan;
Zero-energy
Comm Bldgs
EPCA §371
Industrial
Waste Energy
Recovery
§101, new
CAFE Stds;
Title XIII,
Smart Grid
policy
§141 Fed fleet reqs;
§431,521 high perf
Fed bldgs; §541
EECGB
2009 ARRA (Stimulus Bill) Weatherization
funding for low-
income homes
Electric
vehicle and
battery
funding
Smart grid
funding;
transmission
study funding
State Energy Office
Funding; EECGB
Funding

7. Energy Efficiency is Our
Greatest Resource
52
1
3
4
8
19
23
35
0 10 20 30 40 50 60
Geothermal, Solar and Wind
Conventional Hydroelectric
Biomass
Nuclear Electric Power
Coal
Natural Gas
Petroleum
Increased Efficiency (Compared to 1973)
Alliance to Save Energy, August 2010
Figure 1 - America's Greatest Energy Resource
Sources of U.S. Energy in 2009
(Quads)
Increased Efficiency (Compared to 1973) 2009 Domestic Production Net Imports

8. The Advantages of Energy
Efficiency
 Most abundant potential energy source
 Shortest lead-time & lowest cost source of energy

9. The Advantages of Energy
Efficiency
 Most abundant potential energy source
 Shortest lead-time
 Lowest cost incremental source of energy
 Utilizes many on-the-shelf technologies
 Cleanest – no incremental emissions
 Wholly domestic
 Least obtrusive – no land use impacts
 Lowers energy costs across the board
 Keeps producing indefinitely… non-depletable energy
source
 Zero carbon, reduces use of carbon-based energy

10. The Disadvantages of Energy
Efficiency
 Requires hundreds of millions of individual decisions
 Almost all of which are driven primarily by factors other
than energy
 With significant individual transaction costs
 Usually requiring significant up-front capital investment
 Usually under State or local law or regulations
 Requires efforts to measure and verify

11. Energy Efficiency’s Largest
Disadvantage is Political
 Not enough economic stakeholders who see energy
efficiency as key to their future
 Lack of constituent demands for pro-energy efficiency policy
 Reluctance to change long-time incentives
 Uncertainty of short-term federal tax incentives
 Credit crunch in today’s economy, Federal budget constraints

12. EE Provisions of Waxman-Markey
• Buildings
– New building advanced energy efficiency codes*
– Existing building retrofits*
– Manufactured homes replacement rebates*
– Building labeling program*
– CEDA Funding for Tax-Financed Loans*
– GREEN Act
• Appliances
– Codifies certain new lighting standards for outdoor and portable lights
– New appliance standards for several classes of equipment
– Upgrades DOE standard-setting process
– Encourages “best-in-class” appliances, smart appliances
* Funded through ACES carbon emission allowance allocations

13. Demise of climate legislation and
slim prospects for energy bills
 Alliance advocacy for energy bill priorities
in July and early August;
 Introduction in July of the “oil spill” bill by
Senator Reid --- (S.3663) Clean Energy
Jobs and Oil Company Accountability Act
of 2010
 Reid announcement in early July that comprehensive energy &
climate legislation would not be enacted;
 Factors in failure of climate bill: partisan gridlock & pending
mid-term elections; WH did not press the issue;
 Alliance & other advocates shifted message to stress urgency
of passing an energy bill this year with RES/EERS; codes;
appliance standards and other key provisions;

14.  Implementation of National Consensus Agreements (appliances)
 Bi-partisan RES bill (S. 3813), requiring utilities to generate 15% of
their electricity from renewable sources by 2021 (up to ¼ of the
requirement can be met by EE; 27 co-sponsors but need 60
 Major push from wind, solar on RES bill
 bill is identical to the ACELA RES
 Graham alternative bill has nuclear, clean coal
 Much depends on mid-term elections
 Next year: smaller, piecemeal “chunks”
 Republican “repackaging” of climate issues?
 Constrained federal budget for EE programs;
 Energy efficiency financing, revolving funds will be key issue
Outlook for Lame Duck and
Beyond

15. Other Lame Duck Candidates for
Floor Action this year
 Bingaman wants new DOE loan
guarantee program;
 He is also advocating for CEDA + oil
spill bill in lame duck;
 Rockefeller bill (S. 3072) delays EPA
regulation of stationary sources for
two years (not vehicles)
 Reid bill on natural gas vehicles and
electric vehicles (S.3815);
 Tax bill/extenders;
 Extend clean energy manufacturing
tax credit

16. American Recovery and
Reinvestment Act
 $26B for core efficiency programs
 Money obligated, but not fully spent in five key programs:
 State Energy Program
 Appropriated: $3.1 billion
 Spent: $0.5 billion (16%)
 Energy Efficiency and
Conservation Block Grants
 Appropriated: $3.2 billion
 Spent: $.4 billion (12%)
 Weatherization Assistance
Program
 Appropriated: $5.0 billion
 Spent: $1.5 billion (31%)
 Appliance Rebates
 Appropriated: $300 million
 Spent: $187 million (63%)
 Smart Grid Grants and
Demonstration
 Appropriated: $4.2 billion
 Spent: $.3 billion (8%)

17. ARRA EE spending to date
 Of these programs, about $3 billion (about 18%) has been
spent as of September 17:
- Low estimate: only funds associated with completed projects
can be counted as “spent.” Also does not account for private
investment in stimulus funded projects.
- DOE has overcome major federal hurdles
(NEPA, Davis-Bacon, etc.)

18. Thank You!
Brad Penney
bpenney@ase.org
202-530-4348