Nep ally webinar 5 5-10


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Nep ally webinar 5 5-10

  1. 1. Federal Energy Efficiency Policy Prospects ACEEE Ally Webinar Steven Nadel May 5, 2010
  2. 2. Possible Bills for 2010 <ul><li>Jobs bills (e.g. Home Star) </li></ul><ul><li>Energy-only bills (e.g. ACELA, Lugar) </li></ul><ul><li>Energy and climate bills (e.g. KGL) </li></ul><ul><li>Climate only (e.g. Cantwell-Collins) </li></ul><ul><li>Tax incentives (extenders and new) </li></ul>
  3. 3. Jobs Bill <ul><li>Proposed new legislation to address high unemployment </li></ul><ul><li>Initial bill enacted (e.g. unemployment insurance) </li></ul><ul><li>Second bill mostly tax based, passed Senate </li></ul><ul><li>Third bill may include several efficiency provisions </li></ul><ul><li>Key question is how to pay for it (ARRA, TARP, deficit??) </li></ul>
  4. 4. Potential Efficiency Provisions in a Jobs Bill <ul><li>Home Star / “Cash for Caulkers” </li></ul><ul><li>Additional funds for oversubscribed ARRA programs: </li></ul><ul><ul><li>Advanced Energy Investment Credits for manufacturers (mostly renewable energy) </li></ul></ul><ul><ul><li>Industrial grants and Manufacturing Extension Partnership </li></ul></ul><ul><li>Other new ideas </li></ul><ul><ul><li>“ Building Star” program – prescriptive rebates </li></ul></ul><ul><ul><li>Replacement of old manufactured homes (Tester) </li></ul></ul><ul><ul><li>Rural loans through electric co-ops (Third Way) </li></ul></ul>
  5. 5. Energy Productivity Shifts Spending To Greater Labor and GDP Impacts Source: 2007 IMPLAN data set for the U.S. economy (2009). Energy Efficiency ^ ^
  6. 6. Home Star / Cash for Caulkers <ul><li>2010 focused </li></ul><ul><li>“ Gold Star” performance based – </li></ul><ul><ul><li>Savings of at least 20%, plus additional incentives for higher savings </li></ul></ul><ul><ul><li>Based on Home Performance with Energy Star </li></ul></ul><ul><li>“ Silver Star” prescriptive based – </li></ul><ul><ul><li>Fixed incentives for specific measures </li></ul></ul><ul><ul><li>Air and duct sealing </li></ul></ul><ul><ul><li>Attic, wall and crawl space insulation </li></ul></ul><ul><ul><li>Replacement windows, heating & cooling systems, appliances </li></ul></ul><ul><ul><li>Need to meet specified efficiency criteria </li></ul></ul><ul><li>Quality control component </li></ul>
  7. 7. Industrial Grants <ul><li>Competitive grant program for CHP and industrial efficiency upgrades. </li></ul><ul><li>Had $156 million but over $3 billion of proposals. </li></ul><ul><li>New legislative proposal is to add $4B </li></ul><ul><ul><li>Fund additional projects from prior RFP </li></ul></ul><ul><ul><li>Do a second RFP </li></ul></ul><ul><li>Also may provide extra money for Manufacturing Extension Partnership </li></ul>
  8. 8. Building Star <ul><li>Prescriptive incentives for many EE measures -- $6 billion </li></ul><ul><ul><li>Insulation </li></ul></ul><ul><ul><li>HVAC, VSDs, EMSs, transformers </li></ul></ul><ul><ul><li>Audits, commissioning studies, O&M </li></ul></ul><ul><li>To be run by DOE and operate for 1 yr. </li></ul><ul><li>Introduced by Senators Merkley and Pryor </li></ul>
  9. 9. Current Status of Jobs Bills <ul><li>House scheduled to vote on Home Star on Thurs. 5/6/10. Will be an authorization. </li></ul><ul><li>Senate Energy Committee has had a hearing, but needs to reintroduce before scheduling a vote. </li></ul><ul><li>The key outstanding issue is how to pay for these and other jobs bill components. </li></ul>
  10. 10. Projected Net Job Creation for Energy Efficiency Provisions Being Considered for a Federal Jobs Bill Source: ACEEE analysis.
  11. 11. Federal Energy and Climate Legislation Status <ul><li>House passed combined energy & climate change bill (ACES) </li></ul><ul><li>Senate Energy reported out energy-only bill (ACELA) </li></ul><ul><li>Senate EPW reported out a cap and trade bill </li></ul><ul><li>Plan was to combine these, along with other provisions, into a more comprehensive bill </li></ul><ul><li>But there are not 60 votes for this. </li></ul>
  12. 12. Kerry, Graham and Lieberman <ul><li>Trying for compromise bill to get 60 votes </li></ul><ul><li>Appears to include: </li></ul><ul><ul><li>Cap and trade for utilities </li></ul></ul><ul><ul><li>Carbon fee on transportation fuels </li></ul></ul><ul><ul><li>Regulations on large industrial, ~2016 </li></ul></ul><ul><ul><li>Significant sections on nuclear, clean coal, oil and gas [but latter likely to change] </li></ul></ul><ul><li>Very little for efficiency: </li></ul><ul><ul><li>ACELA included by reference </li></ul></ul><ul><ul><li>Utilities permitted (but not required) to spend funds for consumers on EE. </li></ul></ul>
  13. 13. Spending of Emissions Allowance Revenue on Energy Efficiency in ACES 1/3 to EE Perhaps some to EE EE&RE
  14. 14. CLEAR Act ( Carbon Limits & Energy for America’s Renewal) <ul><li>Targets set and ramp down ¼%/year </li></ul><ul><li>Emissions allowances auctioned off to fossil fuel producers and importers </li></ul><ul><ul><li>No third parties (e.g. traders, speculators) </li></ul></ul><ul><ul><li>Price collar </li></ul></ul><ul><li>75% of auction revenue to consumers, per capita </li></ul><ul><li>25% for Clean Energy Reinvestment Trust fund </li></ul><ul><ul><li>Appropriated annually by Congress </li></ul></ul>
  15. 15. Lugar “Practical Energy and Climate Plan” <ul><li>Reduce oil imports </li></ul><ul><ul><li>Revise CAFÉ thru 2030, “feebates” </li></ul></ul><ul><li>Energy efficiency </li></ul><ul><ul><li>Building codes, federal buildings, national retrofit program (loans & subsidies), industrial efficiency, appliances and equipment </li></ul></ul><ul><li>Diverse domestic power </li></ul><ul><ul><li>Clean energy standard thru 2050, authorizes incentives to retire old coal plants </li></ul></ul><ul><li>Measurement & review of climate programs </li></ul>
  16. 16. Efficiency Elements in House and Senate Energy Bills <ul><li>Energy efficiency resource standards </li></ul><ul><li>Appliance and equipment standards </li></ul><ul><li>Improved building codes </li></ul><ul><li>Residential and commercial retrofits </li></ul><ul><li>Building labeling </li></ul><ul><li>Appliance incentives (House only so far) </li></ul><ul><li>Industrial & building job training & TA – IAC, BTAC </li></ul><ul><li>Programs for industry (Senate only so far) </li></ul><ul><li>Demand response (House only so far) </li></ul><ul><li>Energy Star (Senate only so far) </li></ul>
  17. 17. Energy Efficiency Resource Standards <ul><li>Analogous to a Renewable Portfolio Standard </li></ul><ul><li>Electric and/or gas savings targets for utilities </li></ul><ul><ul><li>Includes end-use efficiency and sometimes combined heat & power (CHP) and codes/standards </li></ul></ul><ul><ul><li>Targets generally start low and increase over time </li></ul></ul><ul><li>Savings must be documented in accordance with evaluation rules established by regulators </li></ul>
  18. 18. <ul><li>22 States – February 2009 </li></ul>Energy Efficiency Resource Standards Standard Voluntary Goal Pending Standard Combined RES/EERS
  19. 19. Vermont – Raising Efficiency to a New Level Source: Efficiency Vermont and VT Dept of Public Service 9% cumulative savings 2000-2008
  20. 20. 2020 Cumulative Electricity Savings Targets by State Includes extensions to 2020 at savings rates that have been established Vermont 30% New York 26% Massachusetts 26% Maryland 25% Delaware 25% Illinois 18% Connecticut 18% Minnesota 17% Iowa 16% Arizona 15% Indiana 14% Rhode Island 14% Hawaii 14% California 13% Ohio 12% Colorado 12% Utah 11% Michigan 11% Pennsylvania 10% Washington ~10%
  21. 21. Federal EERS Bills <ul><li>Waxman-Markey as passed House </li></ul><ul><ul><li>Includes 20% RES with 5-8% EE </li></ul></ul><ul><li>Senate Energy Committee bill </li></ul><ul><ul><li>15% RES with efficiency up to 4% EE </li></ul></ul><ul><ul><li>Proposals to increase this likely on Senate floor </li></ul></ul>
  22. 22. Appliance and Equipment Standards <ul><li>Adopt consensus agreements on new standards: </li></ul><ul><ul><li>Portable lighting fixtures </li></ul></ul><ul><ul><li>Outdoor lighting fixtures </li></ul></ul><ul><ul><li>Residential AC and furnaces </li></ul></ul><ul><ul><li>Hot food holding cabinets, hot tubs and drinking water dispensers </li></ul></ul><ul><li>Some clarifications and reforms to standards program </li></ul>
  23. 23. Building Codes <ul><li>Likely to be in House and Senate bills </li></ul><ul><li>IECC and ASHRAE to revise codes to achieve: </li></ul><ul><ul><li>30% savings by 2010 (IECC on track, ASHRAE trying) </li></ul></ul><ul><ul><li>50% savings by 2014-2016 (varies by sector, bill) </li></ul></ul><ul><ul><li>House bill raises this by 5% every 3 years </li></ul></ul><ul><li>If don’t, DOE to develop model codes </li></ul><ul><li>States encouraged to implement and achieve 90% compliance within 8 years </li></ul><ul><ul><li>Grants to states to help pay for this </li></ul></ul>
  24. 24. Incentives for Building Retrofits <ul><li>Performance-based incentives for comprehensive retrofits – in both House and Senate bills </li></ul><ul><li>Both residential (like Home Star Gold) and commercial </li></ul><ul><li>Targeting savings of 20% or more </li></ul><ul><li>EPA/DOE provide technical program guidance </li></ul><ul><li>DOE provides funds to states to run programs </li></ul><ul><li>Funding to come from emissions allowances </li></ul>
  25. 25. Building Labeling <ul><li>In both House and Senate bills, but House limited to new construction </li></ul><ul><li>DOE to develop program </li></ul><ul><li>Includes both performance and design ratings </li></ul><ul><ul><li>Performance = based on actual energy use </li></ul></ul><ul><ul><li>Design = based on building plans </li></ul></ul><ul><li>Encourage states and federal agencies to use </li></ul><ul><li>Funding and TA for demonstration projects </li></ul>
  26. 26. Will ACELA Programs be Funded? <ul><li>Many of the programs require funding </li></ul><ul><li>Without funding, savings much lower </li></ul><ul><li>Includes: </li></ul><ul><ul><li>Building retrofits </li></ul></ul><ul><ul><li>Code implementation </li></ul></ul><ul><ul><li>Labeling </li></ul></ul>
  27. 27. Efficiency Savings in ACES Relative to Other Recent Energy Bills Enhanced: 10% EERS by 2020, increased EE allowance allocations
  28. 28. Tax Incentives <ul><li>Very unclear what will move forward </li></ul><ul><li>New home and heavy-duty vehicle incentives need renewal; in 2 nd jobs bill </li></ul><ul><li>Some refinements to new home and commercial building incentives proposed by Senators Bingaman, Snowe & Feinstein </li></ul><ul><li>These 3 Senators also proposed new incentives for industrial motors, replacing old CFC chillers, and upgrading water pumping systems. </li></ul><ul><li>These last two are most likely to be included in an energy bill… if there is one </li></ul>
  29. 29. Energy Efficiency Creates New Jobs & Consumer Savings from ACES Net Annual Consumer Savings Net Jobs Created Source: ACEEE Sept. 2009 analysis
  30. 30. Prognosis <ul><li>Need bipartisan approach. </li></ul><ul><li>Members reluctant to make difficult votes (election year; on top of health care). </li></ul><ul><li>Some jobs bill likely; probably include Home Star and Advanced Energy Investment Credits; maybe rural co-op bill; other provisions longer shots. </li></ul><ul><li>CC legislation unlikely unless Graham & Reid settle their tiff soon. </li></ul><ul><li>Energy-only a possibility, targeting clean energy, with less offshore oil than ACELA. </li></ul>
  31. 31. Contact Info <ul><li>Steven Nadel </li></ul><ul><li>[email_address] </li></ul><ul><li>202-507-4000 </li></ul><ul><li> </li></ul>