Alliance President Kateri Callahan at the World Energy Engineering Conference
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Alliance President Kateri Callahan at the World Energy Engineering Conference

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On October 1st Alliance President Kateri Callahan had the honor of delivering the keynote address at the World Energy Engineering Conference (WEEC) in Washington, DC. With the theme, “Visions for ...

On October 1st Alliance President Kateri Callahan had the honor of delivering the keynote address at the World Energy Engineering Conference (WEEC) in Washington, DC. With the theme, “Visions for Sustainability and Climate Change”, the conference was attended by over 500 international energy industry professionals keen to learn more about carbon reduction and sustainable business practices. In my presentation, Callahan highlighted opportunities – many of them falling within the provisions of the Energy Independence and Security Act of 2007 – open to both the building and industrial sectors to lower carbon emissions in a cost-effective manner. Energy efficiency is integral to this process, and she shared with audience the myriad of ways that this – our quickest, cleanest and cheapest source of energy – can fuel the industrial and building sectors as they forge that path toward sustainability.

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Alliance President Kateri Callahan at the World Energy Engineering Conference Alliance President Kateri Callahan at the World Energy Engineering Conference Presentation Transcript

  • Realizing the Potential for Energy Efficiency: A New World Energy Order Presentation, 2008 World Energy Engineering Congress Washington, DC. October 1, 2008 Kateri Callahan, President
  • Overview
    • A Few Words About the Alliance
    • New Direction Based on “Tried & True” Resource
    • Potential for Energy Efficiency in a “New World Energy Order”
    • Realizing the Potential: A Policy Call to Action
    • Policy Forecast: Cloudy, With a Chance of Energy Efficiency
  • 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…
    • Thirty years in the making
    • Fuel neutral
    • Staffed by 50+ professionals
    • Active in policy, research, education, communications, technology deployment and market transformation
    Business Leaders Academia Environmental Groups Policy Leaders The Alliance to Save Energy
  • What is the Alliance to Save Energy?
    • 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
  • Forging Alliances: Business, Govt. & Public Interests
    • Sponsorship and participation of more than 150 organizations
    • Involvement by businesses in all economic sectors
    • Initiatives underway in research, policy advocacy, education, technology
    • deployment, and communications
  • Energy Efficiency: Powering the U.S. Economy for 30 Years
  • Why Do More? Growth in Energy Demand is Unsustainable Global demand grows by more than half over the next quarter of a century, with coal use rising most in absolute terms 0 2 4 6 8 10 12 14 16 18 1980 1990 2000 2010 2020 2030 billion tonnes of oil equivalent Other renewables Biomass Hydro Nuclear Gas Oil Coal 0 2 4 6 8 10 12 14 16 18 1980 1990 2000 2010 2020 2030 billion tonnes of oil equivalent Other renewables Biomass Hydro Nuclear Gas Oil Coal
  • Why Do More? U.S. Growth in Energy Use Poses a National Security Threat
  • Why Do More? Answering the Climate Challenge
  • WHY DO MORE????? Energy Use is a Pocketbook Issue
  • The Past Versus Present World Energy Order
    • 1990s
      • EPAct 1992
      • Some codes and standards
      • Labeling
      • “ 3 points of light and 997 dim bulbs”
    • So far in the 21 st Century….
    • EPAct 2005
      • Appliance standards, tax incentives and a long to-do list
      • Reduce CO2 by 3% by 2020
    • Energy Independence and Security Act of 2007 (EISA)
      • CAFÉ Standards; Appliance standards; RD&D
      • Reduce energy use by 7%; electricity use by 5%; oil use by 10%
      • Reduce CO2 by 9%
  • EISA 2007: The Details…
    • In:
      • Vehicle CAFE standards
      • Appliance standards
      • Federal energy management
      • Certain building standards
      • R&D program authorizations
    • Out:
      • Renewable/Efficiency electricity standard
      • Building energy code targets
      • Tax incentives
  • Two Areas with Big Potential Savings: Buildings and Industry Energy Information Administration (EIA) The Building sector accounts for almost ½ of the energy consumption in the U.S. Buildings account for over 70% of total US electricity consumption and are responsible for over 40% of CO2 emissions. Industry accounts for 32% of total U.S. energy consumption.
  • Industry: Big Appetite - Big Savings
    • U.S. industry consumes 33% of all U.S. energy.
    • The largest 4,000 plants use 58% of U.S. industrial energy.
    • A large plant uses as much energy as 20,000 typical homes; A medium-sized plant consumes the same energy as 455 homes.
    • For every U.S. plant, there are 320 homes and 685 motor vehicles.
    Big bang for the “outreach buck:” Resources to implement energy-saving measures are available to help: “ Save Energy Now” www.eere.energy.gov/industry / Industrial Plants: Big Energy Savings
  • DOE’s “Save Energy Now”: The Results
    • So far, 608 assessments completed.
    • As of September 2, 2008, 479 plants have reported the following:
    6.9 million metric tons —the equivalent to taking nearly 1.2 million cars off the road Total potential carbon dioxide (CO2) emissions reduction: 78.1 trillion Btu —the amount of natural gas consumed by more than 1 million single-family homes per year Identified natural gas savings more than $327 million Energy savings measures underway or scheduled: nearly $118 million Implemented energy savings more than $820 million Identified energy saving costs
  • Codes: Helping to Cut Global Energy Demand Growth Better Building Codes are part of the solution to cutting global energy demand growth from 2.2% to 0.7% Source: McKinzey Global Institute
  • So…What Do We Need? Better Building Codes
    • Today’s building codes
    • affect ALL new buildings
      • By 2010 :
      • Almost 5 million new housing units
      • Over 233 billion sq feet commercial floor space
      • By 2020 :
      • 23.4 million new housing units
      • Over 1 trillion sq feet commercial floor space
      • By 2030 :
      • Over 41 million new housing units
      • Over 2 trillion sq feet commercial floor space
      • Source: EIA, Annual Energy Outlook 2008
    • Dynamic Building Codes for Residential Homes
    • Federal Legislation to Drive 30% Improvement in Residential and Commercial EE Codes by 2010; 50% by 2020
    • “ 30% Solution Campaign” to Insure 30% Improvement in 2009 IECC Residential Building Code
    • Federal Regulations Requiring New Federal Facilities to Demonstrate 30% EE Improvement
    • Efforts Supported by: the Alliance to Save Energy and U.S. DOE, Utilities, Businesses, NGOs
    Realizing the Potential: Energy Efficient Codes Coalition (EECC)
  • Potential Savings From EECC-Advocated “30% Solution”
    • Cumulative impact (2008 to 2020)
    • 4 quads (10 15 Btu) saved nationwide
    • ~230 million metric tons of avoided CO 2
    • Electricity savings equal to the annual output of 131 baseload power plants
    • Natural gas savings could heat 33 million homes for 1 year
    • Enough fuel oil to heat over 3.5 million homes
    • Save homeowners $33 billion dollars (at today’s energy prices)
  • Today’s Federal Forecast: Dreary
    • Climate legislation “dead” in 110 th Congress
    • “ Conventional wisdom” predicts passage in 2010:
      • Cap and trade framework
      • Cost containment measures
      • Combination of auction and allocation
      • Significant funding for RD&D
    • Energy legislation “dead” as well
      • No consensus on domestic drilling plans
      • No money
      • “ Gang of 20” withholding bill until 2009
    • Energy efficiency and clean energy tax incentives “Outside Chance” of passage
    • Energy issues likely to be “front-and-center”
      • deepening economic woes and a likely crisis caused by spikes in home heating costs
      • increasing support for “Green Jobs” and for using clean energy and efficiency as an “economic engine” to create new jobs and a trained workforce
    Forecast for New Congress & Administration
    • Good likelihood of major energy bill in 2009 with strong EE Provisions:
      • Renewable and Energy Efficiency Portfolio Standards
      • Building energy codes
      • Tax Incentives
      • Authorizations for new RD&D programs
    • Climate legislation not likely before 2010
    • Meanwhile the states march on!
    Outlook for the New Congress & Administration - Energy
  • A Look at the U.S Presidential Candidates’ Energy Platforms
    • Obama
          • Emergency energy tax rebates
          • Drilling for domestic oil
          • Developing biofuels
          • Diversifying energy sources
          • Investing in ‘green’ jobs
            • Promoting energy efficiency
      • McCain
      • Expanding domestic oil and natural gas
      • Reforming transportation
      • Investing in clean energy
      • Investing in clean coal
      • Investing in nuclear
      • Promoting energy efficiency
  • Forecast for Climate Legislation in New Congress/Administration
    • The Senate Debate on Climate Legislation (Lieberman-Warner) this past June
      • Fails cloture 48-36; proponents claim 54 supporters; opponents claim less than 48 supporters
      • Calls for a carbon cap-and-trade program
      • Viewed as a “dress rehearsal” for 111 th Congress
    • House Continues Work
      • Energy & Commerce Committee Hearings & White Papers
      • Markey Introduces “iCAP” legislation
    • Administration agrees to non-binding, international commitment
  • Energy Efficiency in Climate Legislation
  • A Look at the U.S Presidential Candidates’ Climate Platforms
    • Obama
    • “ Cap and Trade” to Reduce Carbon 80% below 1990 Level
    • 100% Auction of Credits
    • $$$$ For Technology/Fuels Development
    • Energy Efficiency Targets
    • CAFÉ Increases
    • Renewable Energy and Fuels Targets
    • McCain
      • Climate Stewardship Act of 2005
      • “ Cap and Trade” to Limit Carbon Emissions to 2000 Level by 2010
      • Credit Allowances to Emitters AND Auction
      • $$$$ for Technology Development
  • The Challenges Can Be Met: Others are Doing More with Less!
  • Thank you!
    • For More Information….
    • Kateri Callahan
    • President
    • Alliance to Save Energy
    • 1850 M Street, NW
    • Washington, D.C. 20036
    • [email_address]
    • www.ase.org
    • 202.857.0666