The Energy Efficiency Lifestyle: Four Major Ingredients International Symposium on Climate Change Tokyo, Japan. November 17, 2008

Overview A Few Words About the Alliance Energy Efficiency: The World’s Greatest Resource Driving Energy Efficiency: Four Pillars Prices Matter: High Energy Costs = Savings Building Energy Efficiency Codes and Standards: Moving inefficient construction and products out of the market Consumer Education & Awareness: Transforming Markets Good Public Policies: The Cornerstone of an Energy-Efficient Society

A Few Words About the Alliance

Energy Efficiency: The World’s Greatest Resource

Driving Energy Efficiency: Four Pillars

Prices Matter: High Energy Costs = Savings

Building Energy Efficiency Codes and Standards: Moving inefficient construction and products out of the market

Consumer Education & Awareness: Transforming Markets

Good Public Policies: The Cornerstone of an Energy-Efficient Society

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

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

Energy Efficiency: Powering the U.S. Economy for 30 Years

Imperatives for Energy Efficiency: Energy Use is a Global Climate Issue Source: Energy Information Administration

In the U.S., Growth in Energy Use Poses a National Security Threat

Saving Money: the Best Reason to Save Energy??

Prices Matter: High Costs = Behavior Modification

EE: The No-Cost Way to Reduce GHG Emissions Energy Efficiency should be fully considered in GHG reductions. All items to the left of the arrow represent “negative marginal costs”

The Challenge? Market Distortions Principal Agent or “Split Incentives” Home builder versus buyer Utility versus customer Transaction Costs Lack of information on life-cycle cost for products and/or paybacks for upgrades Lack of Investment in RD&D and EE Programs Public Policies Essential Consumer Education & Outreach Essential

Principal Agent or “Split Incentives”

Home builder versus buyer

Utility versus customer

Transaction Costs

Lack of information on life-cycle cost for products and/or paybacks for upgrades

Lack of Investment in RD&D and EE Programs

Public Policies Essential

Consumer Education & Outreach Essential

Building Energy Codes & Appliance & Equipment Standards Transform Markets Eliminates availability of inefficient products and construction Makes energy efficiency part of the package – consumers don’t have to think about it Building Codes “Lock In” Savings for Decades

Transform Markets

Eliminates availability of inefficient products and construction

Makes energy efficiency part of the package – consumers don’t have to think about it

Building Codes “Lock In” Savings for Decades

Federal Legislation Pending Would Drive 30% Improvement in Residential and Commercial EE Codes by 2010; 50% by 2020 2009 Model Energy Code for Homes: IECC Improves Efficiency by approximately 13% over 2006 EECC Sought 30% Improvement ASHRAE Goal (Commercial) is a 30% Improvement in Efficiency in the 2010 Code Cycle Driving Efficiency through Codes and Standards…..

Federal Legislation Pending

Would Drive 30% Improvement in Residential and Commercial EE Codes by 2010; 50% by 2020

2009 Model Energy Code for Homes: IECC Improves Efficiency by approximately 13% over 2006

EECC Sought 30% Improvement

ASHRAE Goal (Commercial) is a 30% Improvement in Efficiency in the 2010 Code Cycle

Corporate Average Fuel Economy (CAFE) Standards Improved in the Energy Independence and Security Act of 2007 (EISA) Sets standards for cars and light trucks achieving 35 mpg by 2020 . Attribute-based standards, but Keeps car and light truck standards separate, dual fuel vehicle loophole, old testing (so “35” really is about 28 mpg) DOT to set standards for larger trucks, tire efficiency ratings

Improved in the Energy Independence and Security Act of 2007 (EISA)

Sets standards for cars and light trucks achieving 35 mpg by 2020 .

Attribute-based standards, but

Keeps car and light truck standards separate, dual fuel vehicle loophole, old testing (so “35” really is about 28 mpg)

DOT to set standards for larger trucks, tire efficiency ratings

Light Bulb Standard U.S. set performance standards for general service light bulbs, starting in 2012-2014 25-30% savings: will phase out traditional incandescent bulbs Second standard in 2020 must achieve roughly 65% savings Most significant appliance standard ever adopted Will reduce CO2 by 100 Mt/yr. by 2020 Will save $13 billion annually

U.S. set performance standards for general service light bulbs, starting in 2012-2014

25-30% savings: will phase out traditional incandescent bulbs

Second standard in 2020 must achieve roughly 65% savings

Most significant appliance standard ever adopted

Will reduce CO2 by 100 Mt/yr. by 2020

Will save $13 billion annually

Energy Efficiency is a Consumer Lifestyle Issue The foundation is there: According to EcoPulse 2008 , 88.2% of surveyed consumers report a positive association with the term ‘energy efficiency’ Consumer Education & Outreach is the way forward: Innovative campaigns emphasizing energy-efficient lifestyles Focus on “pocketbook” and personal/family benefits

The foundation is there:

According to EcoPulse 2008 , 88.2% of surveyed consumers report a positive association with the term ‘energy efficiency’

Consumer Education & Outreach is the way forward:

Innovative campaigns emphasizing energy-efficient lifestyles

Focus on “pocketbook” and personal/family benefits

Consumer Campaigns at the Alliance Super Powers EPA, NYSERDA, Alliance Nationwide TV & Radio (ABC, CBS, CNN) Consumer Website Powerful $avings DOE & Alliance Partnership All Media Outlets The Power is In Your Hands Industry, DOE, EPA, Alliance All Media Outlets, Web & Collateral Energy Hog DOE, Ad Council, Alliance, States All Media Outlets Web, Collateral Materials P&G ColdWater Campaign P&G, Alliance All Media Outlets & Web Eureka $mart House Energy-Efficiency Challenge NBC Universal, Industry, DOE, Alliance On Air, Web–Home Makeover Contest

Super Powers

EPA, NYSERDA, Alliance

Nationwide TV & Radio

(ABC, CBS, CNN)

Consumer Website

Powerful $avings

DOE & Alliance Partnership

All Media Outlets

The Power is In Your Hands

Industry, DOE, EPA, Alliance

All Media Outlets, Web & Collateral

The Drive $marter Challenge (www.drivesmarterchallenge.org) Billboard advertising Extensive media coverage Interactive Website Celebrity support Government support Corporate support Driving & Car Maintenance Tip cards

But Consumers Want Help… “ Who Are You Going to Call…? .....The Government!”

“ Who Are You Going to Call…?

.....The Government!”

And the Government Responds…. 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 CO 2 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 CO 2 emissions by 5% (9%) Estimates from ACEEE, ASE

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 CO 2 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 CO 2 emissions by 5% (9%)

Estimates from ACEEE, ASE

Our Government at Work: Extension of Tax Incentives New Homes Builder tax credit - up to $2,000 if 50% more efficient compared to 2004 IECCC code; $1,000 for an Energy Star manufactured home. (Through 2009) Existing Homes Homeowner tax credit – 10% of cost of installing building envelope components consistent with IECC 2000; capped at $500; $200 can apply to windows. (Through 2009) Commercial Buildings Deduction up to $1.80/sq.ft. for buildings designed to use 50% less energy than ASHRAE-90.1 (Through 2013) Public Buildings : Assignable deduction!

New Homes

Builder tax credit - up to $2,000 if 50% more efficient compared to 2004 IECCC code; $1,000 for an Energy Star manufactured home. (Through 2009)

Existing Homes

Homeowner tax credit – 10% of cost of installing building envelope components consistent with IECC 2000; capped at $500; $200 can apply to windows. (Through 2009)

Commercial Buildings

Deduction up to $1.80/sq.ft. for buildings designed to use 50% less energy than ASHRAE-90.1 (Through 2013)

Public Buildings : Assignable deduction!

And there is Leadership at the Federal Level… Energy savings goals + report cards Public buildings Public procurement Federal building energy/sq.ft. down 30% in 20 years

Energy savings goals + report cards

Public buildings

Public procurement

Good Policies – Help Deliver Energy Efficiency

A Look at President-Elect Obama’s Platform… On Energy Efficiency Reduce Electricity Demand 15% by 2020 Net-Zero Energy Buildings by 2030 Overhaul Federal Appliance Standards 45% Improvement in New Federal Building Energy Use by 2014 25% Improvement in Existing Federal Building Energy Use by 2014 15% Overall Reduction in Federal Energy Use by 2015 Flip Incentives for Utilities Invest in a “Smart Grid” Weatherize 1 Million Homes Annually Invest and Incent “Liveable Cities”

On Energy Efficiency

Reduce Electricity Demand 15% by 2020

Net-Zero Energy Buildings by 2030

Overhaul Federal Appliance Standards

45% Improvement in New Federal Building Energy Use by 2014

25% Improvement in Existing Federal Building Energy Use by 2014

15% Overall Reduction in Federal Energy Use by 2015

Flip Incentives for Utilities

Invest in a “Smart Grid”

Weatherize 1 Million Homes Annually

Invest and Incent “Liveable Cities”

EE GLOBAL 2009 April 27 -29, 2009 Paris, France at Palais des Congres de Paris Hosted by the Alliance to Save Energy Organized by an International Steering Committee Chaired by Marc Bitzer, President, Whirlpool Europe; Jean-Pascal Tricoire, President and CEO, Schneider Electric; Nobuo Tanaka, Executive Director, International Energy Agency; Lena Ek, MEP; & Claude Turmes, MEP Program created by an International Program Committee Chaired by Paolo Bertoldi, I.E.S. – Renewable Energies Unit, Directorate General JRC, European Commission

April 27 -29, 2009

Paris, France at Palais des Congres de Paris

Hosted by the Alliance to Save Energy

Organized by an International Steering Committee

Chaired by Marc Bitzer, President, Whirlpool Europe; Jean-Pascal Tricoire, President and CEO, Schneider Electric; Nobuo Tanaka, Executive Director, International Energy Agency; Lena Ek, MEP; & Claude Turmes, MEP

Program created by an International Program Committee

Chaired by Paolo Bertoldi, I.E.S. – Renewable Energies Unit, Directorate General JRC, European Commission

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

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