Coloring the Economy: A Challenge to go Beyond “Green”

2009 Annual Meeting
Coloring the Economy:
A Challenge to go Beyond “Green”
Kateri Callahan, President
October 7, 2009
QUALITY TRANSIT -- NOW

Overview

A Few Words About the Alliance
Government Imperatives
Why a “Green Economy” & Why Now?
Why Energy Efficiency?
Government Policy – Shaping the Economy Today and

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
Board 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 association heads, state and local policy makers, corporate executives

Forging Alliances
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

RATE YOUR FAVORITE AT www.drivesmarterchallenge.org
Access “A Smarter GPS” at http://www.drivesmarterchallenge.org/contest/

“A Perfect Storm”: Energy Use = Security Issue

‘Perfect’ Storm: Energy Use = Climate Issue
Source: Energy Information Administration

A ‘Perfect’ Storm: Energy Use = Public Issue

40% of Americans say global warming is a major threat
75% Want federal regulation of GHGs
80% (Who want regulations) would pay more for energy

Why EE? Enormous & Cost-Effective Potential
Source: McKinsey Global Institute

Changing Tides
EISA 2007: A marriage of…
EPAct 2005: EE provisions:

Buildings
Transportation
R&D
Utilities
Tax Incentives

With results….
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 2020 (2030):
Reduce U.S. energy use by 4% (7%)
Reduce electricity demand by 4% (5%)
Reduce oil use by 5%(10%)
Reduce CO2 emissions by 5% (9%)
Estimates from the American Council for an Energy-Efficient Economy, Alliance to Save Energy

A Big Year for Energy Efficiency in Public Policy
2008/2009
October 08
January 09
June
July
May
May
May
Obama’s election platform
American Recovery & Reinvestment Act (ARRA, or Stimulus Bill)
President’s Fiscal Year 2010 budget
NEW! American Clean Energy and Security Act (ACES)
Ongoing appropriations in House and Senate climate & energy bills
President’s new CAFÉ standards
House PASSES ACES (6/26)
DOE: new lighting standards

President Obama’s “Dream Team”

The “Dream Team” (cont.)

Stimulus: $65B Related to Energy Efficiency
Funding in Millions of US Dollars

ACES: Allowance Allocations by program
3%to 6% of total funding could support energy efficiency
Source: Alliance analysis based on HR 2454 and EPA Preliminary Analysis of the Waxman-Markey Discussion Draft, April 20, 2009

Calculations based on allocations in the Waxman-Markey substitute amendment & total allowance values from EPA’s Preliminary Analysis of the Waxman-Markey discussion draft.
Does not include noncompulsory utility funding for energy efficiency, revenues from the renewable electricity standard or separate authorizations.

ACES: State & Local Governments

ACES directs DOE to establish “State Energy & Environmental Development” (SEED) Accounts to be used for EE and RE programs;
Over the life of the program, an average of 5.2% of total allowance value is directed to SEED;
Average annual funding for EE from this provision could be as low as $762 million or as high as $3.05 billion;
Largest dedicated source of EE funds

Federal Public Transit Funding
In ARRA (the stimulus package)…
$6.9 billion in transit capital assistance
$1.5 billion for capital investments in surface transportation infrastructure (includes New Starts and Small Starts projects and passenger and freight rail transportation projects
$8 billion for capital assistance for high-speed rail corridors and Intercity Passenger Rail Service
$1.3 billion for Amtrak
In ACES…
2015  up to $531 million
Cumulative, 2012-2050  up to $15.4 billion

The role of EE in climate legislation

Efficiency is the quickest, cheapest way to reduce energy consumption and lower greenhouse gas emissions
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)

Looking ahead...

Average VMT vs. Gas Price, 2002-08
Source: Duke University Study, April 2009

Aggregate Transit Ridership vs. Gas Price, 2002-08
Source: Duke University Study, April 2009

Answering the Climate Challenge

ACES: Transportation
Light duty vehicle emission standards
Emission standards for trucks, trains, ships, and airplanes
Require states to set emissions reduction goals and large MPOs to set plans that meet them.

“Green” becomes “Business as Usual”
Report: “Real Transportation Solutions for Greenhouse Gas Emissions Reductions”
The American Association of State Highway and Transportation Officials

“You'll know the green revolution has been won when the word ‘green’ disappears.”
- Tom Friedman, NYT Columnist

THANK YOU!
Kateri Callahan
President
Alliance to Save Energy
kcallahan@ase.org