The Obama Effect: Driving Energy Efficiency and Economic Recovery Kateri Callahan, President The Alliance to Save Energy

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 Nation’s Capitol

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 Nation’s Capitol

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

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

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 Jim Rogers, CEO Duke Energy Senator Mark Pryor (D-Ark.) Bi-partisan, bi-cameral Honorary Vice Chairs

Guided by a 37-Member, elected Board of Directors

Leaders of environmental, consumer and trade associations; state and local policy makers; corporate executives

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

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

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

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

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 alone…It is a challenge for all of us.” President Barack Obama, December 15, 2008

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 alone…It is a challenge for all of us.”

President Barack Obama, December 15, 2008

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”

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”

The Energy ‘A-Team’: Obama’s Cabinet Ministers

The Energy ‘A-Team’, continued John Holdren, Assistant to the President for Science &Technology Dir. of the Science, Technology, & Public Policy Program at Harvard’s Belfer Center for Science and International Affairs Ken Salazar, Secretary of the Interior Former Senator from Colorado and member of the Senate Energy Committee Strong supporter of energy efficiency

Ken Salazar, Secretary of the Interior

Former Senator from Colorado and member of the Senate Energy Committee

Strong supporter of energy efficiency

“ 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 country’s renewable energy resource base; and create nearly 500,000 new “green jobs.”

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 country’s renewable energy resource base; and

create nearly 500,000 new “green jobs.”

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

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

Stimulus Parameters…

~$75 Billion Potential for Energy Efficiency

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 RDD&D In addition: transit, smart grid, ARPA-E, utility infrastructure, school/university facilities, workforce, tax incentives, bonding authority, loan guarantees

~$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 RDD&D

In addition: transit, smart grid, ARPA-E, utility infrastructure, school/university facilities, workforce, tax incentives, bonding authority, loan guarantees

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

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

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 DOE’s stimulus efforts for SEP and WAP from the Office of the Weatherization and Intergovernmental Program (OWIP)

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 DOE’s stimulus efforts for SEP and WAP from the Office of the Weatherization and Intergovernmental Program (OWIP)

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?

“ 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?

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 Colorado’s Rebuild Colorado program to Wyoming’s Energy Conservation Improvement program, both of which utilize performance contracting Browse programs state-by-state at http://www.naseo.org/projects/sep/updates/index.html

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 Colorado’s Rebuild Colorado program to Wyoming’s Energy Conservation Improvement program, both of which utilize performance contracting

Browse programs state-by-state at http://www.naseo.org/projects/sep/updates/index.html

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-plus/

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-plus/

Stimulus Opportunities Federal-Level Resources General Services Administration received $4.5 billion to convert federal facilities into “High-Performance Green Buildings” GSA’s 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

Federal-Level Resources

General Services Administration received $4.5 billion to convert federal facilities into “High-Performance Green Buildings”

GSA’s 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

General Services Administration funds: Alliance Recommends… From GSA funds for energy efficiency retrofits in federal buildings, take… $3 billion Federal Energy Management Program Projects that: 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).

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).

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.

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.

FY09 Federal Energy Efficiency Programs Funding (in millions of dollars) Program FY08 Approp. FY09 Request FY09 House Request FY09 Senate Request FY09 Omnibus Change from 08 Approp. Change from 09 Request Building Tech 108.999 123.765 168 176.481 140 28% 13% Commercial Buildings Integration 11.891 13 33 40 Industrial Tech 64.409 62.119 100 65.119 90 40% 45% Federal Energy Management 19.818 22 30 22 22 11% 0% State Energy Program 44.095 50 50 50 50 13% 0% Weatherization Assistance 227.221 0 250 201.181 200 -12% State & Local Block Grants 295 50 Total Above EERE Programs 727.031 478.970 1378 857.781 775.238 7% 62% Energy Star EPA 48.236 44.221 55 55 4% 13%

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

Goals:

2030: New construction Net-Zero

2050: Entire stock Net-Zero

Broad government/industry consortium

Comprehensive approach (R&D deployment)

Coordinate (initiate) national and local actions

Measure, benchmark, disclose energy performance

R&D for critical technologies and systems

Demonstrate scalable, replicable system solutions

Transform market: education/training, finance, appraisal, incentives, codes, buyer demand-pull

On the Horizon… … More Energy Efficiency?

Energy and/or Climate Legislation in the 111th Senate to consider energy bill in March/April House may introduce combined energy/climate bill Waxman’s 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

Senate to consider energy bill in March/April

House may introduce combined energy/climate bill

Waxman’s 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

Advanced building energy codes Energy Efficiency Resource Standard Vehicle Rebate Appliance Standards Building Labeling Programs and/or Requirements Alliance “Complementary” Policy Recommendations:

Advanced building energy codes

Energy Efficiency Resource Standard

Vehicle Rebate

Appliance Standards

Building Labeling Programs and/or Requirements

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 R&D Despite economic woes, expectation that Congress will enact/President will sign climate legislation this year or next 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 R&D

Despite economic woes, expectation that Congress will enact/President will sign climate legislation this year or next

Climate Legislation Can Create Funding for RE & EE

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

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

Event Format: Exposition Hall: Business, Government and Other Exhibits from around the world 4 Plenary Sessions: Top business and environmental leaders engage with all conference attendees 24 Executive Dialogue Sessions: 90-minute concurrent sessions organized into 4 end use tracks featuring leading global voices selected by an international committee of experts and peers Networking Events: Many exciting events where business and pleasure are mixed Sponsors: Planning Committee: Organized by an International Steering Committee Marc Bitzer EVP, Whirlpool Corp. President, Whirlpool Europe Lena Ek MEP (Sweden) Nobuo Tanaka Executive Director, International Energy Agency Jean-Pascal Tricoire President and CEO, Schneider Electric Claude Turmes MEP (Luxembourg) Andreas Schierenbeck CEO, Building Automation, Siemens