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


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Alliance President Kateri Callahan provided opening remarks at the American Public Transportation Association's (APTA) Annual Meeting in Orlando, Fla. Kateri spoke about the theme of the General Forum on “The Future of Transit Business in a Green Economy”. APTA’s Annual meeting attracts over 2000 public transportation professionals from both the public and private sector. It is the premiere meeting point for APTA members to discuss ongoing trends that are affecting the public transportation industry.

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

  1. 1. 2009 Annual Meeting<br />Coloring the Economy:<br />A Challenge to go Beyond “Green”<br />Kateri Callahan, President<br />October 7, 2009<br />QUALITY TRANSIT -- NOW<br />
  2. 2. Overview<br /><ul><li> A Few Words About the Alliance
  3. 3. Government Imperatives
  4. 4. Why a “Green Economy” & Why Now?
  5. 5. Why Energy Efficiency?
  6. 6. Government Policy – Shaping the Economy Today and</li></li></ul><li>What is the Alliance to Save Energy? <br /><ul><li>The Alliance to Save Energy promotes energy efficiency worldwide to achieve a healthier economy, a cleaner environment and greater energy security.
  7. 7. Non-profit organization headquartered in U.S.; operations world-wide
  8. 8. Board led by Senator Mark Pryor (D-AR) and Jim Rogers, CEO of Duke Energy
  9. 9. Includes 9 Members of Congress – Bi-Cameral; Bi-Partisan
  10. 10. Also includes environmental, consumer, and trade association heads, state and local policy makers, corporate executives</li></li></ul><li>Forging Alliances<br />Business ▪ Government ▪ Public Interests <br /><ul><li> Sponsorship and participation of more than 160 organizations
  11. 11. Involvement by businesses in all economic sectors
  12. 12. Initiatives underway in research, policy advocacy, education, technology deployment, and communications</li></li></ul><li>RATE YOUR FAVORITE AT<br />Access “A Smarter GPS” at<br />
  13. 13. “A Perfect Storm”: Energy Use = Security Issue<br />
  14. 14. ‘Perfect’ Storm: Energy Use = Climate Issue<br />Source: Energy Information Administration<br />
  15. 15. A ‘Perfect’ Storm: Energy Use = Public Issue<br /><ul><li>40% of Americans say global warming is a major threat
  16. 16. 75% Want federal regulation of GHGs
  17. 17. 80% (Who want regulations) would pay more for energy</li></li></ul><li>Why EE? Enormous & Cost-Effective Potential <br />Source: McKinsey Global Institute<br />
  18. 18. Changing Tides<br />EISA 2007: A marriage of…<br />EPAct 2005: EE provisions:<br /><ul><li>Buildings
  19. 19. Transportation
  20. 20. R&D
  21. 21. Utilities
  22. 22. Tax Incentives</li></li></ul><li>With results….<br />Energy Policy Act of 2005 will by 2020:<br />Reduce U.S. energy use by 2%<br />Reduce electricity demand by 4%<br />Reduce oil use by 0%<br />Reduce CO2 emissions by 3%<br />Energy Independence and Security Act of 2007 will by 2020 (2030):<br />Reduce U.S. energy use by 4% (7%)<br />Reduce electricity demand by 4% (5%)<br />Reduce oil use by 5%(10%)<br />Reduce CO2 emissions by 5% (9%)<br />Estimates from the American Council for an Energy-Efficient Economy, Alliance to Save Energy<br />
  23. 23. A Big Year for Energy Efficiency in Public Policy <br />2008/2009<br />October 08<br />January 09<br />June<br />July <br />May<br />May<br />May<br />Obama’s election platform<br />American Recovery & Reinvestment Act (ARRA, or Stimulus Bill) <br />President’s Fiscal Year 2010 budget<br />NEW! American Clean Energy and Security Act (ACES) <br />Ongoing appropriations in House and Senate climate & energy bills <br />President’s new CAFÉ standards<br />House PASSES ACES (6/26)<br />DOE: new lighting standards<br />
  24. 24. President Obama’s “Dream Team”<br />
  25. 25. The “Dream Team” (cont.)<br />
  26. 26. Stimulus: $65B Related to Energy Efficiency<br />Funding in Millions of US Dollars<br />
  27. 27. ACES: Allowance Allocations by program<br />3%to 6% of total funding could support energy efficiency<br />Source: Alliance analysis based on HR 2454 and EPA Preliminary Analysis of the Waxman-Markey Discussion Draft, April 20, 2009<br /><ul><li>Calculations based on allocations in the Waxman-Markey substitute amendment & total allowance values from EPA’s Preliminary Analysis of the Waxman-Markey discussion draft.
  28. 28. Does not include noncompulsory utility funding for energy efficiency, revenues from the renewable electricity standard or separate authorizations.</li></li></ul><li>ACES: State & Local Governments<br /><ul><li>ACES directs DOE to establish “State Energy & Environmental Development” (SEED) Accounts to be used for EE and RE programs;
  29. 29. Over the life of the program, an average of 5.2% of total allowance value is directed to SEED;
  30. 30. Average annual funding for EE from this provision could be as low as $762 million or as high as $3.05 billion;
  31. 31. Largest dedicated source of EE funds</li></li></ul><li>Federal Public Transit Funding<br />In ARRA (the stimulus package)…<br />$6.9 billion in transit capital assistance<br />$1.5 billion for capital investments in surface transportation infrastructure (includes New Starts and Small Starts projects and passenger and freight rail transportation projects<br />$8 billion for capital assistance for high-speed rail corridors and Intercity Passenger Rail Service<br />$1.3 billion for Amtrak<br />In ACES…<br />2015  up to $531 million<br />2030  up to $369 million<br />2050  up to $287 million<br />Cumulative, 2012-2050  up to $15.4 billion<br />
  32. 32. The role of EE in climate legislation<br /><ul><li>Efficiency is the quickest, cheapest way to reduce energy consumption and lower greenhouse gas emissions
  33. 33. In ACES, energy efficiency provisions alone would:
  34. 34. Save American households about $154 per year in 2025. (EPA)
  35. 35. Reduce carbon allowance price by 1.5 percent between 2015-2050. (EPA)
  36. 36. On the whole, ACES would create on average 120,000 new energy efficiency jobs nationwide each year between 2012-2020.(Center for American Progress)</li></li></ul><li>Looking ahead...<br />
  37. 37. Average VMT vs. Gas Price, 2002-08<br />Source: Duke University Study, April 2009<br />
  38. 38. Aggregate Transit Ridership vs. Gas Price, 2002-08<br />Source: Duke University Study, April 2009<br />
  39. 39. Answering the Climate Challenge<br />
  40. 40. ACES: Transportation<br />Light duty vehicle emission standards <br />Emission standards for trucks, trains, ships, and airplanes<br />Require states to set emissions reduction goals and large MPOs to set plans that meet them. <br />
  41. 41. “Green” becomes “Business as Usual”<br />Report: “Real Transportation Solutions for Greenhouse Gas Emissions Reductions” <br />The American Association of State Highway and Transportation Officials<br />
  42. 42. “You&apos;ll know the green revolution has been won when the word ‘green’ disappears.” <br />- Tom Friedman, NYT Columnist<br />
  43. 43.
  44. 44. THANK YOU!<br />Kateri Callahan<br />President<br />Alliance to Save Energy<br /><br />