The Obama Effect: Driving Energy Efficiency and Economic Recovery

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The Obama Effect Driving Energy Efficiency and
Economic Recovery 

• Kateri Callahan, President
• The Alliance to Save Energy

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Presentation Outline

• What is the Alliance to Save Energy?
• New Administration, New Energy Policy
• 2009 Outlook for Economic Recovery
• On the Horizon Energy Climate?
• The Road Ahead Leadership from the Nations
  Capitol
  

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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 professionals
• 31 years of experience in policy, research,
  education, communications, technology deployment
  and market transformation
  

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Alliance Directors Bi-Partisan Elected
Officials and Industry Leaders

• Guided by a 37-Member, elected Board of
  Directors
  
• Leaders of environmental, consumer and trade
  associations state and local policy makers
  corporate executives

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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
  

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Brief Post-Mortem on 2008

• Energy Independence Security Act (EISA),
• P. L. 110-140 most sweeping energy bill
  enacted in over 30 years
  
• Energy efficiency tax incentives were extended as
  part of the Troubled Assets Relief Program
  ("TARP") P.L. 110-343 -- October, 2008
  
• Energy legislation adopted by House Senate Gang
  of Twenty energy package developed
  

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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
  aloneIt is a challenge for all of us.
• President Barack Obama, December 15, 2008

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President Obama Energy Efficiency Advocate

• Reduce electricity use 15 by 2020
• Net-zero energy buildings by 2030
• Overhaul federal appliance standards
• By 2014, reduce energy use in new 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 cities

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The Energy A-Team Obamas Cabinet Ministers
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The Energy A-Team, continued

• Ken Salazar, Secretary of the Interior
• Former Senator from Colorado and member of the
  Senate Energy Committee
  
• Strong supporter of energy efficiency

John Holdren, Assistant to the President for
Science Technology Dir. of the Science, Technolo
gy, Public Policy Program at Harvards Belfer
Center for Science and International Affairs
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Making Good on Promises Early Action (Jan 08)

• Directs DOT 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 countrys renewable energy resource
  base and
  
• create nearly 500,000 new green jobs.

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Building a Green Economy

• Showed early commitment to large green energy
  component in the economic recovery bill
  
• Budget assumes revenues from an economy-wide
  cap-and-trade program to reduce greenhouse gas
  emissions, based on a carbon cap of 83 below
  2005 levels in 2050
• The climate program would generate nearly 650
  billion between 2012 and 2019
  
• House hopes to consider a joint climate energy
  bill by Memorial Day 
  

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Stimulus Parameters
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75 Billion Potential for Energy Efficiency
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American Recovery Reinvestment Act of 2009
787 Billion Total

• 20 billion primarily for energy efficiency
• 3.1 State Energy Program (SEP)
• 3.2 EE Conservation Block Grants
• 4.5 Green Federal Buildings
• 0.3 ENERGY STAR appliance rebate
• 5 Weatherization (WAP)
• 1.2 undesignated funding for RDDD
• In addition transit, smart grid, ARPA-E, utility
  infrastructure, school/university facilities,
  workforce, tax incentives, bonding authority,
  loan guarantees

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ARRA The Main Recipients

• State Energy Offices
• SEP funding
• As a BG pass-through to smaller municipalities
  / counties
  
• Municipal Governments
• 68 of Block Grants to large cities by formula
• Eligible institutional entities include muni
  utilities, schools
  
• Local Weatherization Agencies
• General Services Administration (GSA)
• DOD, DOL and EERE

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ARRA The Delivery Mechanisms

• DOE (both administrator and recipient)
• Has created a special organization to disperse
• Matt Rogers (of McKinsey Consulting) is leading
  this advisory team, which reports to Secretary
  Chu
  
• EDER
• EERE
• EERE receives 3.5 B, of which 2.25 B earmarked
  for renewable energy and some EE
  
• Gil Sperling is organizing DOEs stimulus efforts
  for SEP and WAP from the Office of the
  Weatherization and Intergovernmental Program
  (OWIP)

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ARRA The Confusion

• Plan then do obviously not happening
• Shovel ready-projects vs. programs
• Funds could begin flowing April, 2009
• Funds to be expended in 18-24 months
• Test case for future climate legislation
• How do we measure success?

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Stimulus Opportunities

• The State Energy Program
• In FY 2008 received 44 million
• Stimulus provided 3.1 billion
• The National Association of State Energy
  Officials has a listing of energy programs that
  receive funding through SEP, from Colorados
  Rebuild Colorado program to Wyomings Energy
  Conservation Improvement program, both of which
  utilize performance contracting
• Browse programs state-by-state at
  http//www.naseo.org/projects/sep/updates/index.ht
  ml

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Stimulus Opportunities

• The Weatherization Assistance Program
• In FY 2008 received about 500 million
• Stimulus provided 5 billion
• The WAP Technical Assistance Center
  (www.waptac.org) provides a page of Ramp Up
  Tools to help the weatherization network respond
  to the funding influx
• Other resources
• National Association for State Community Services
  Programs (http//www.nascsp.org/)
  
• Weatherization Plus Leveraging Resources
  http//www.opportunitystudies.org/weatherization-p
  lus/

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Stimulus Opportunities

• Federal-Level Resources
• General Services Administration received 4.5
  billion to convert federal facilities into
  High-Performance Green Buildings
  
• GSAs Public Buildings Service houses the new
  Office of High-Performance Green Buildings
  
• GSA Director of Expert Services Kevin Kampschroer
  will lead this effort
  
• www.Recovery.gov and www.GSA.gov/sustainabledesign
  
  

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General Services Administration funds Alliance
Recommends
Federal Energy Management Program Projects that
From GSA funds for energy efficiency retrofits
in federal buildings, take

• Create the greatest impact through the use of
  energy and water efficiency and conservation and
  renewable energy across the federal government
  
• Are leveraged with private sector funds and
• Are comprehensive and used for the construction,
  repair and alteration of Federal buildings in
  compliance with Section 432 of EISA (42 U.S.C.
  Section 8253) (f) (1) through (f) (7).

3 billion
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Alliance Federal Energy Management

• The Alliance works with ESCOs and others to
• oversee, assess and suggest improvements to
  current energy management practices in federal
  government
  
• develop strategies and advocacy initiatives to
  improve and expand the current energy management
  practices in federal government facilities and,
  
• develop strategies, programs and/or advocacy
  initiatives to insure ESPC contract use across
  all federal, state and local government
  agencies.

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FY09 Federal Energy Efficiency Programs Funding
(in millions of dollars)
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New Funding Commercial Building Initiative

• Goals
• 2030 New construction Net-Zero
• 2050 Entire stock Net-Zero
• Broad government/industry consortium
• Comprehensive approach (RD deployment)
• Coordinate (initiate) national and local actions
• Measure, benchmark, disclose energy performance
• RD for critical technologies and systems
• Demonstrate scalable, replicable system
  solutions
  
• Transform market education/training, finance,
  appraisal, incentives, codes, buyer demand-pull

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On the Horizon
More Energy Efficiency?
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Energy and/or Climate Legislation in the 111th

• Senate to consider energy bill in March/April
• House may introduce combined energy/climate bill
• Waxmans goal is legislation by Memorial Day
• Interest in National RPS/EERS (Markey has
  introduced bills)
  
• Obama FY 2010 anticipates Cap Trade proceeds
  beginning in 2012
  

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Alliance Complementary Policy Recommendations

• Advanced building energy codes
• Energy Efficiency Resource Standard
• Vehicle Rebate
• Appliance Standards
• Building Labeling Programs and/or Requirements

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Alliance Climate Policy Recommendations

• Alliance, together with other organizations, has
  developed recommendations for the next climate
  bill and is briefing Congressional staff
  
• We are looking at evaluation, measurement and
  verification third-party programs how much
  should be spent on RD
  
• Despite economic woes, expectation that Congress
  will enact/President will sign climate
  legislation this year or next

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Climate Legislation Can Create Funding for RE
EE
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The Future is Ours to Invent!

• In the Short Term
• The U.S. Economy is Re-built on Development and
  Deployment of Clean Energy and Technologies
  
• Energy Efficiency is the First Tool in the
  Arsenal for Fighting Climate Change
  
• In the Longer Term
• U.S. Becomes the Most Energy-Efficient Economy in
  the World
  

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Planning Committee Organized by an International
Steering Committee
Marc Bitzer EVP, Whirlpool Corp. President, Whir
lpool Europe

Lena Ek MEP (Sweden)
Nobuo TanakaExecutive Director,
International Energy Agency
Jean-Pascal TricoirePresident and CEO, Schneider
Electric
Claude TurmesMEP (Luxembourg)
Andreas SchierenbeckCEO, Building Automation,
Siemens
Event Format Exposition Hall Business, Gove
rnment and Other Exhibits from around the world
4 Plenary Sessions Top business and environmen
tal leaders engage with all conference attendees
24 Executive Dialogue Sessions 90-minute concu
rrent sessions organized into 4 end use tracks
featuring leading global voices
selected by an international committee of experts
and peers Networking Events Many exciting eve
nts where business and pleasure are mixed
Sponsors
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The Obama Effect How the Stimulus Affects TAC

• Jeff Drees, President
• Shan Bates, MBD

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Schneider Electric Efforts

• Stimulus and Beyond
• Short-term/long-term
• Obamas continuing energy policy
• Renewables
• Carbon cap and trade system
• SE Vision and Mission
• A world where we can all achieve more while using
  less of our common planet.
  
• Help clients make the most of their energy.
• Undisputed global specialist in energy management
  by 2011.
  

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Schneider Electric Efforts

• Wilgenbusch-Lead Stimulus Team
• How can SE get more of its fair share of the
  stimulus package funds for our clients?
  
• Determining strongest SE relationships/where we
  should spend most efforts
  
• APC, Juno, Pelco, Square D, TAC, Xantrex
• The Office of the Chief Marketing Officer
• In conjunction with Wilgenbusch team
• Campaign with sales tools and deliverables
  around SE stimulus strategy
  

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Schneider Electric Efforts

• Federal Segment
• Leverage federal spending through traditional
  vehicles (GSA, IDIQ, Super ESPC)
  
• Lobby efforts (via organizations like ASE)
• Marketing materials and company strategy
• Ellen Kotzbauer, SE Federal Segment Manager
• Cassie Quaintance, SE Energy Segment Manager

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TAC Efforts

• TAC Energy Strategy
• TAC Federal Strike Force
• TAC/SE team focused on plan and execution of
  strategies for Super ESPC and other federal
  vehicles
  
• Strong existing federal relationships
• Current strategy in works for Partner Channel/ES
  cross-selling efforts
  
• TAC PMO
• Bridged relationship to leverage strengths
• Uniquely positioned to deliver energy efficiency
  expertise
  

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How the Stimulus Affects TAC

• Marketing and Business Development
• Business Development Program Managers
• Partners Linda Chang
• Strategic Accounts Jana Gerber
• Systems Integration Jana Gerber
• Energy Solutions Shan Bates
• Team divided into segments/solutions
• Energy Federal segment Shan Bates
  taking the lead

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How the Stimulus Affects TAC

• Top 4 Opportunities
• School Construction 9.75 billion
• Federal Buildings, DOD, VA Hospitals 9.83
  billion (total)
  
• Local Government EE Block Grants 3.2 billion
• DOE State Energy Program 3.1 billion
• Solutions for energy and security
• Lateral thinking across all channels and
  solutions
  
• Speaking of security, learn more at next
  XchangeNET

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How the Stimulus Affects TAC

• Actions You Can Take
• Use letters and marketing campaigns.
• Leverage local market partners.
• Reach out to your clients.
• Talk to decision maker get procurement started.
• Keep up to date on the latest information.

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Thank you for your time!
Next months topic Security Featuring industr
y expert Paul Boucherle
April 6, 1030 am CST