Changing the Game Energy Efficiency Policy in the Obama Administration

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Changing the GameEnergy Efficiency Policy in
the Obama Administration
Kateri Callahan President, Alliance to Save Energy
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Presentation Overview

• A Few Words about the Alliance
• Building to Today EE Before Obama
• Obama Administration the Game Changer
• The Road Ahead Forecast for U.S. Climate and EE
  Policy

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What is the Alliance to Save Energy?

• 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 Mark Pryor (D-AR) and Jim Rogers,
  CEO of Duke Energy
• Includes 10 Members of Congress Bi-Cameral
  Bi-Partisan
• Also includes environmental, consumer, and trade
  associations heads, state and local policy
  makers, corporate executives

Jim Rogers, CEO Duke Energy
Senator Mark Pryor (D-Ark.)
Bi-partisan, Bi-cameral Honorary Vice Chairs
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What is the Alliance?

• 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

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Deploying EE in the U.S. A Foundation of Public
Policy

• To lock in savings for consumers and businesses

• To achieve market penetration

• To gain foothold in market

• To encourage technological innovation

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Obama Building on Recent Gains in Energy
Efficiency

• Energy Policy Act of 2005 will by 2020
• Reduce U.S. energy use by 2
• Reduce electricity demand by 4
• Reduce oil use by 0
• Reduce CO2 emissions by 3
• Energy Independence and Security Act of 2007 will
  by 2030
• Reduce U.S. energy use by 7
• Reduce electricity demand by 5
• Reduce oil use by 10
• Reduce CO2 emissions by 9

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President Obama EE Advocate in Campaign

• Reduce electricity use 15 by 2020
• Net-zero energy buildings by 2030
• Commitment to large green energy component in the
  economic recovery bill
• Strong commitment to climate legislation 
• Investment incentives for livable cities

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10 months later.

• Sticking to his word on EE?
• No single issue is as imperative to the economy
  as energy(January 2009)
• An impressive track record
• New Budget
• Stimulus package
• Climate/energy bills
• Executive Orders
• New Agreements with China

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A Big Year for Energy Efficiency in Public
Policy
2008/2009
October 08
January 2009
October
October
November
June
May
May
May
July
Executive Order, EE in federal agencies
Presidents new CAFÉ standards
Stimulus package
Obamas election platform
Ongoing approps in House and Senate climate
energy bills
HVAC standards agreement
American Clean Energy and Security Act (ACES)
Presidents Fiscal Year 2010 budget
House PASSES ACES (6/26)
DOE new lighting standards
Outdoor Lighting standards
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President Obamas FY 2010 Budget A in EE

• 108 Increase Over FY 2009 Request, including
• 10 million increase for the industrial sector
• 98 million increase in the Department of
  Energys (DOE) Building Technologies Program
• includes 10 million for building energy codes. 
• 10 million for the Federal Energy Management
  Program
• 25 million increase for the State Energy Program
• increases for DOEs ENERGY STAR program,
  commercial buildings, residential buildings, RD,
  and equipment standards. 

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Stimulus 65B Related to Energy Efficiency
Funding in Millions of US Dollars
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Projected EE Funding, 2006-2012
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ARRA Built on the Five Pillars of Good Public
Policy

• RDD
• Smart Grid (4.5 bill)
• DOE RDD (2.25 billion)
• Incentives
• 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)

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Leadership by Example

• October 2009, Executive Order
• Use federal buying power to motivate vendors,
  contractors, and others in the federal supply
  chain to take their own actions to limit
  greenhouse gas emissions in production,
  operations, and transport
• Make public the annual scorecard results for
  each agency an important step towards public
  accountability and ensuring that the provisions
  of the order remain as priorities for federal
  agency managers.
• Re-institute the Presidential Leadership Awards,
  an important step in underscoring the presidents
  priority on individual and agency leadership in
  energy efficiency and sustainability within the
  federal government.
• Create sustainability officers for each agency.

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On the Horizon
More Energy Efficiency?
Can Obama take U.S. there?
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The Game Changer Obama as EE Champion

• Our Future is What We Build it to Be
• President Barack Obama
• 65 Billion in Stimulus Available for EE
• Weatherize 1 million homes/year
• Improve efficiency of federal buildings
• Control carbon emissions
• Create hundreds of thousands of green jobs
• The end of Politics as Usual?
• Redefining Business as Usual

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Energy and Climate Leg.

• ACELA

• CEJAPA

• ACES 2009

• Passed Senate ENR Comm. 17 June
• Energy bill similar to ACES, but with no
  cap-and-trade provisions
• Savings by 20304.3 quads36B for
  consumers(240/household)

• Intro by Sens. Kerry and Boxer 23 Oct.
• Firm cap 20 reductions 202080 by 2050 from
  2005 levels
• Expected to be combined with ACELA before floor
  consideration

• Passed House 26 June
• Standards incentives to promote clean energy
  tech, firm cap on GHG emissions
• Savings by 20308.8 quads62B for consumers
  (486/household)

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The role of energy efficiency in climate
legislation

• Energy efficiency is used as a cost containment
  and new jobs tool
• In ACES, energy efficiency provisions alone
  would
• Save American households about 154 per year in
  2025. (EPA)
• Reduce carbon allowance price by 1.5 percent
  between 2015-2050. (EPA)
• On the whole, ACES would create on average
  120,000 new energy efficiency jobs nationwide
  each year between 2012-2020.(Center for American
  Progress)

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Climate Energy Bill Outlook

• Senate
• Has Adopted Energy Piece
• Will consider climate Piece in early 2010
• House
• Adopted Climate Energy bill in June
• Additional Support for Energy Efficiency in
  legislation
• Significant Funding through CO2 Allowances (House
  bill)
• Building Labeling Programs (both)
• Utility Energy Efficiency Resource Standards
  (both)
• Innovative Finance Programs (both)
• Appliance Standards (both)
• And much more..

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On Cap-and-Trade
Source Navigant Consulting, Price Signals and
Greenhouse Gas Reduction in the Private Sector,
2009, p.5.
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On Copenhagen and International Accords
Our aim is not a partial accord or political
declaration, but rather an accordhas immediate
operational effect. President Barack
Obama in China yesterday. China Clean Energy
Agreements Include 150M Clean Energy Research
Center EE Action Plan Mayors Sustainable Cities
Program Annual Energy Efficiency Forum Codes
and Standards Harmonization
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Forecast for U.S. Energy Efficiency Policy

• Climate Change Legislation with Strong EE
  Components
• Building Codes
• Appliance Standards
• Innovative Financing Mechanisms
• Significant Funding from Allowances
• Evergreen Stimulus Funding
• Revolving Loan Funds
• Workforce Training
• Continued Federal Investment
• Federal Energy Management
• RDD
• Tax Incentives
• Binding International Climate Treaties

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Business, programmatic and technical experts will
highlight and discuss best practices for
employing energy efficiency to reduce emissions
while maintaining, if not improving, bottom-line
corporate and economic growth. Case studies from
both developed and developing countries will be
analyzed.
Panel chairs Lena Ek, MEP Sweden Claude
Turmes, MEP Luxembourg Speakers Eelco van Heel,
CEO, Rockwool International A/S Andreas
Schierenbeck, CEO Siemens Building Tech. ..and
senior level speakers from Honeywell,
Schneider Electric, Google, USGBC, and NRDC
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Thank you!
Kateri Callahan President, Alliance to Save
Energy kcallahan_at_ase.org 1-202-530-2219