States awaiting stimulus funds will be pleased to know that when it comes to funding energy efficiency programs, their dollars will go far. Drastically reduced energy consumption and immediate job growth are just some of the benefits that effective policies and programs can bring, particularly to the Appalachian region, which has the highest energy consumption in the country. Kateri Callahan presented these findings to the annual Charlotte Regional Partnership Investors Board in Charlotte, N.C., where already progressive energy efficiency policies and programs are taking root. Callahan also briefed the audience of investors and board members on the climate and energy bills moving through Congress.
THE OBSTACLES THAT IMPEDE THE DEVELOPMENT OF BRAZIL IN THE CONTEMPORARY ERA A...
Energy Efficiency – Good for the World’s Economy; Good for the Nation’s Economy; Good for Yours!
1. Energy Efficiency –
Good for the World’s Economy;
Good for the Nation’s Economy;
Nation s
Good for Yours!
Presentation by
Kateri Callahan, President
Callahan
Charlotte Regional Partnership Investors Forum
July 29 2009
29,
2. Overview
AFFew Words About the Alliance
W d Ab t th Alli
Why Energy Efficiency? Why Now?
Policy: Tapping the Full Potential of Energy
Efficiency
Regional/State Leadership: Building Green
Economies One by One
Forecast for the Future: Energy Efficiency as
the Foundation of a New, Green Economy
3. What is the
Alliance to Save Energy?
Alli t S E ?
A unique NGO formed and still led by Members of Congress
Guided by a 37-Member, Elected Board of Directors
- Led by Senator Mark Pryor (D-AR) and Jim Rogers, CEO of Duke Energy
- Includes 9 Members of Congress – Bi-Cameral; Bi-Partisan
- Also includes environmental, consumer, and trade associations heads, state
and local policy makers, corporate executives
4. Forging Alliances:
Business, Govt. & Public Interests
i bli
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. Energy Efficiency: Faithful Friend
America's Greatest Energy Resource
Energy Efficiency and Conservation Improvements Since 1973
Have Reduced Annual Energy Consumption by 50 Quads Energy
Energy Efficiency and Conservation 50 Efficiency
Petroleum
Natural Gas 24
40
has been
Coal 23 powering
Nuclear Electric Power 8
Wood, Waste, Alcohol 4 the U S
U.S.
Conventional Hydroelectric
Geothermal, Solar and Wind
3
0.8
economy
0 10 20 30 40 50 60 for over
Quads
Alliance to Save Energy
August 2008
30 years!
2007 Domestic Production Net Imports
6. Enormous Savings
Energy Efficiency AVOIDING roughly 2.5
billion tons of CO2 annually
Saving roughly $400 billion annually
7. Why Now? Energy Use is a Global
Climate Issue
li
Source: Energy Information Administration
8. Why Now? Growing Energy Demand is
Unsustainable
18 Other
Oth renewables
bl
16 Biomass
Hydro
valent
14 Nuclear
billion tonne of oil equiv
12 Gas
Oil
10
Coal
8
es
6
4
2
0
1980 1990 2000 2010 2020 2030
Global demand grows by more than half over the next quarter of a
century, with coal use rising most in absolute terms
9. Why Now? U.S. Growth in Energy Use
Poses a National Security Threat
i l i h
11. Why Efficiency? Cheapest,
Quickest, Cl
Q i k t Cleanest….
t
Annual world-wide investment of $170 billion
world wide
in energy efficiency through 2020 could:
- cut global growth in energy demand by ½!
- save $900 billi a year iin avoided energy costs
billion id d t
- dramatically reduce greenhouse gas emissions
Source: The McKinsey Global Institute
12. Why EE? Enormous Potential for
Savings in ALL Sectors…
S i i S t
Source: McKinsey Global Institute
14. EE: Enormous Potential for
Regional Job Growth
Growth…
The same study reveals
that cost-effective energy
gy
policies can positively
impact the larger
Appalachia economy,
creating 77,378 jobs
77 378
regionally.
15. The Challenge?
Market Distortions
M k t Di t ti
Principal Agent or “Split Incentives
Split Incentives”
- Home/Commercial builder versus buyer
- Landlord versus tenant
- Utility versus customer
Transaction Costs
- Lack of information on life-cycle cost for products
and/or paybacks for upgrades
Lack f Investment in RD&D and EE P
L k of I t ti d Programs
16. How Do We Unlock the Potential
of E
f Energy Efficiency?
Effi i ?
17. Five Tenants of Sound
EE Public Policy
P bli P li
1)Research, development and deployment (RD&D)
2)Education and outreach
3)Incentives and Fi
3)I ti d Financing M h i
i Mechanisms
4)Standards & Codes
5)Government “Leadership by Example”
) p y p
18. A Big Year for Energy Efficiency
in P bli P li
i Public Policy
Obama’s American President’s NEW! American Ongoing
election Recovery & Fiscal Year Clean Energy appropriations
platform Reinvestment 2010 budget and Security in House and
Act (ARRA, Act (ACES) Senate climate
or Stimulus & energy bills
)
Bill) President’s
House DOE: new
new CAFÉ
PASSES lighting
standards
ACES (6/26) standards
19. President Obama:
Energy Efficiency Advocate
– Reduce electricity use 15% by 2020
y y
– Net-zero energy buildings by 2030
– Overhaul federal appliance standards
– By 2014, reduce energy use in new
2014
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
I t ti ti f “li bl
cities”
– Showed early commitment to large
green energy component in the
economic recovery bill
20. American Recovery & Reinvestment Act:
$65B Related to Energy Efficiency
Energ Efficienc
Funding in Millions of US Dollars
21. ARRA: Built on the Five Pillars of
Good Public Policy
G d P bli P li
RD&D
– Smart Grid ($4.5 bill)
– DOE RD&D ($2.25 billion)
Incentives and Financing Tools
I ti d Fi i T l
– 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)
22. Funding Rollout
Energy Funds Slow to Projected timing of
all funds made
ll f d d
Unroll: available to states
- 1% of FY2009 awards and localities.
- 90% of FY2009 awards go to
90% of FY2009 awards go to
health, transportation and
education
Funding allotted in
Funding allotted in
segments:
- For SEP & WAP:
10% on initial app approval
10% i i i l l
40% on comprehensive app
approval
Remaining 50% contingent on
Remaining 50% contingent on
demonstrated success FY09 and FY12
funding for states
and localities
http://www.recovery.gov/sites/default/files/GAO-09-580+Recovery+Act.pdf
23. Core Energy Funding
Obligation & Spending to date
SEP Smart Grid Investment Grant
- Appropriated $3 1 billion
Appropriated: $3.1 billion Program
- Obligated: $301.6 million - Appropriated: $4.5 billion
- Spent: $9.4 million - Obligated: $0
EECBG
EECBG Smart Grid Demonstration
Smart Grid Demonstration
- Appropriated: $3.2 billion Projects
- Obligated: $0 - Appropriated: $615 million
WAP - Awarded: $4.7 million
- Appropriated: $5 billion - Spent: $0
- Obligated: $553.4 million HUD’s EE Public Housing Capital
- Spent: $8.3 million Funds
Green Jobs - Appropriated: $4 billion
Appropriated: $4 billion
- Appropriated: $500 million - Awarded: $0
- Obligated: $0 HUD’s Green Retrofit Program
- Appropriated $250 million
Appropriated $250 million
- Obligated: $0
$890 million of $18 billion awarded (.5%)
24. ARRA Funding for EE
F nding
North Carolina: South Carolina
State Energy Program (SEP) State Energy Program (SEP)
- Appropriated: $76 million - Appropriated: $51 million
- Awarded: $30.4 million (June
$ ( - Awarded: $20.2 million (June 25)
$ ( )
25)
Weatherization Assistance Weatherization Assistance
- Appropriated: $132 million
Appropriated: $132 million - Appropriated: $59 million
Appropriated: $59 million
- Obligated: $53 million (June - Obligated: $24 million (June
18th) 18th)
- Weatherization goal: 23,500
g , - Weatherization Goal: 6,500
Weatherization Goal: 6 500
homes homes
Energy Efficiency and Energy Efficiency and
Conservation Block Grants
Conservation Block Grants* Conservation Block Grants
Conservation Block Grants*
- Appropriated: $ 58 million - Appropriated: $ 31 million
25. State E
St t Energy Program Plans
P Pl
Building
Code Green Education
Compli‐ Jobs and Transport‐
State Energy Efficient Buildings Financing Mechanisms ance Training Outreach ation
Performance Revolving
Contracting Residential Industrial Commercial State Loans Grants Credits
Arizona x x x
California x x x x x x
Colorado x x x x x x x
Georgia x x x x x x
Iowa x x x x
Maine x x x
Massachusetts x x
Minnesota x x
Montana x
New Hampshire
New Hampshire x x x x x
New York x
North
Carolina x x x x x x
South
Carolina x x x x x x x
West Virginia x x x x
Updated regularly on our stimulus resources page: www.ase.org/stimulusresources
26. Uses of Funds:
State E
St t Energy Programs Plans
P Pl
North Carolina:
- Support small business and industry through energy savings ($11 5 million)
Support small business and industry through energy savings ($11.5 million)
- Grow North Carolina’s green workforce‐ ($8.85 million)
- Foster renewable energy technology and resource innovation ($13.5 million)
- Improve energy efficiency in local and state government ($9 5 million)
Improve energy efficiency in local and state government ($9.5 million)
- Promote residential energy efficiency and renewable energy ($10 million)
- Create an Energy Investment Revolving Loan Fund ($18 million)
South Carolina:
- Improve energy efficiency in Public Institutions ($40 million)
- Create South Carolina Energy Efficiency Training Center Collaborative ($.9
million)
- Establish Small Business/Utility Partnership for Energy Efficiency Equipment
/
($50 thousand)
- Improve energy efficiency in Low‐Income Manufactured Housing ($3
)
million)
- Establish Carolina Clean Green Investment Incentives ($3 million)
- Establish Competitive Renewable Energy Grants Program ($3 million)
27. Oversight and Advocacy
Immense problems of implementation
- size and complexity;
- challenge of administration within limited
time frame; ;
- political appointees not in place;
- demands on career appointees
Credibility of future energy efficiency
C dibilit f f t ffi i
initiatives depends on competent and
effective implementation
Problem of EM & V: How do we measure
savings?
Continuity of Programs: What happens
C ti it f P Wh t h
when the funding goes away?
28. A Word on Federal Tax
Incentives
New Homes
Builder tax credit - up to $2,000 if 50% more efficient compared to 2004
IECCC code; $1,000 for a home that saves 30% or qualifies for the Energy
Star Homes Program. (Through 2009)
Existing Homes
Homeowner tax credit – 30% of cost of installing building envelope
components; capped at $1,500 (Through 2010)
Commercial Buildings
Deduction
D d ti up t $1.80/sq.ft. f buildings d i
to $1 80/ ft for b ildi designed t use 50% l
d to less energy
than ASHRAE-90.1-2001 (Through 2013)
Combined Heat and Power property – 10% investment tax credit,
applicable to only the first 15MW of CHP p p y (
pp y property (Through 2016)
g )
Solar Energy Systems- 30% tax credit of the cost of the system (Through
2016)
Small Wind Systems- 30% of total cost for owners of small wind systems
with 100 (kW) of capacity and less (Through 2016)
Geothermal Heat Pumps- Investment tax credit of 10% of installed cost or
a grant in lieu of the credit worth 10% (Through 2010)
Public Buildings: Assignable deduction!
29. Next Up?
Energy and Climate Legislation
E d Cli t L i l ti
In the House In the Senate
- ACES (The American - ACELA (The
Clean Energy and American Clean
Security Act, or Energy Leadership
Waxman-Markey) Act)
Status: Narrowly Scope: Energy Only
passed the House on Status: Approved by
pp y
June 26th by a vote of Energy Committee on
219 to 212. June 27th
30. ACES:
Cap i th
C is the crown jewel
j l
85% of US GHG emissions covered
- Could be higher
Covered emissions reduced 83% in 2050
Defend and protect the cap!
31. ACES:
Goals for E
G l f Energy Efficiency
Effi i
Policies will no longer save more energy
energy.
Instead they will—
Reduce cost of meeting carbon cap by
Addressing market barriers, especially
g , p y
among energy end-users
32. ACES: EE Programs
Complementary EE policies
Codes, standards, building labeling, electric efficiency
resource standards; authorizations; financing mechanisms
Complementary Programs
- EE in WM is 3-6% of allowance value
$81 t $167b over 2012 2050
to 2012-2050
- 12.5% of allowance value could get
Allowance prices 10% lower
p
Electric, nat gas and petrol prices 1-3% lower
Electric and natural gas demand 3-7% lower
according to EPA analysis April 20
33. Climate Outlook in Senate
Senate EPW to release draft in September
At least six other committees have jurisdiction
over climate legislation; Senator Reid has
asked these Committees to conclude
deliberations by Sept 18
Sept.
Majority Leader Reid wants to bring
comprehensive bill to the floor in the fall; we
are hearing October for floor action
OOpponents/Proponents in “Pitched B l ”
/P i “Pi h d Battle”
34. ACES: Where the Votes Are
ACES Wh th V t A
States with majority of votes in the delegation
for the Waxman-Markey bill are in green;
Waxman Markey
states with majority opposing W/M are in red
35. The Challenges Can Be Overcome:
Unleashing NC and SC’s Potential!
U l hi NC d SC’ P i l!
Retail Electricity Consumption per Capita
18.0000
16.0000
14.0000
14 0000
urs per Person
12.0000
NC
10.0000
10 0000
usand Kilowatt Hou
NY
VT
8.0000 USA
EU
6.0000
6 0000 JAPAN
Thou
4.0000
2.0000
0.0000
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005
36. Unleashing the Power of Public Policy:
A “Prescription for Success”
Western Governors “CDEAC” Recommendations
CDEAC
Migrate “Best Practices” to ALL western states
- Institute Electric & Natural Gas DSM Programs
- Update & Enforce New Building Codes
- Government Leadership in Facilities/Practices
- Financial Incentives
- Pricing Policies (Pay more for the more you use)
- Education & Outreach
- Technology R&D and Transfer
- Form Regional Initiatives
- Feasible to reduce electricity use 20% in 2020
37. Leadership i th St t
L d hi in the States
California Cut Energy Use and Peak Demand
“Flex Your Power Campaign”
- Retail promotions
- TV, Print & Radio Advertising
20/20 Utility Rebate Program
- Automatic Enrollment Simple Requirement
- Executive Order All Investor owned Utilities
Investor-owned
Results
Reduced energy consumption at peak by 14%
32% of residents & businesses cut energy use by at least 20%
Per capita energy use lower than any industrialized nation
Cost of savings lower than contract or spot market power purchases
38. Unleashing the Power of Charlotte:
Suggestions for Success
S i f S
National EPA Clean
Action Plan Energy-
for Energy Environment
Efficiency Guide to Action
- EEI, NARUC, - DOE, NARUC,
EPA, DOE… NASEO, ASE, RAP
Western State Energy
Governors Efficiency Policies: a
Association Series of Briefs,
Energy pub. by the Alliance
Efficiency Task
Force Report
39. EE Global 2010
Monday, May 10 to Wednesday, May 12, 2010
Washington DC Convention Center, Washington DC
EE Global 2010, will serve as the “Davos” of the energy efficiency
community, drawing over 600 leaders from government, industry, NGOs,
and media from 40+ countries together to share best practices and
policies for global implementation of energy efficiency.
With over 80% of 2009 participants self-identifying as executive or
management-level, participation in EE Global will provide access to
tl l ti i ti i Gl b l ill id t
energy efficiency’s most notable leaders and decision makers.
40. Final Words
Words…
“Our greatest national energy
Our
resource is the energy we currently
waste.”
waste ”
Former Energy Secretary Spence Abraham
41. Thank you!
For M
F More Information….
I f ti
Kateri Callahan
President
Alliance to Save Energy
1850 M Street NW
Street,
Washington, D.C. 20036
kcallahan@ase.org
www.ase.org
202.857.0666