Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Energy Efficiency – Good for the World’s Economy; Good for the Nation’s Economy; Good for Yours!


Published on

States awaiting stimulus funds will be pleased to know that when it comes to funding energy efficiency programs, their dollars will go far. Drastically reduced energy consumption and immediate job growth are just some of the benefits that effective policies and programs can bring, particularly to the Appalachian region, which has the highest energy consumption in the country. Kateri Callahan presented these findings to the annual Charlotte Regional Partnership Investors Board in Charlotte, N.C., where already progressive energy efficiency policies and programs are taking root. Callahan also briefed the audience of investors and board members on the climate and energy bills moving through Congress.

  • Hello my dear
    I am Modester by name good day. i just went to your profile this time true this site ( and i got your detail and your explanation in fact the way you explain your self shows me that you are innocent and maturity and also understand person i decided to have a contact with you so that we can explain to our self each other because God great everyone to make a friend with each other and from that we know that we are from thism planet God great for us ok my dear please try and reach me through my email address ( so that i can send you my picture true your reply we can know each other ok have a nice day and God bless you yours Modester
    Are you sure you want to  Yes  No
    Your message goes here
  • Be the first to like this

Energy Efficiency – Good for the World’s Economy; Good for the Nation’s Economy; Good for Yours!

  1. 1. Energy Efficiency – Good for the World’s Economy; Good for the Nation’s Economy; Nation s Good for Yours! Presentation by Kateri Callahan, President Callahan Charlotte Regional Partnership Investors Forum July 29 2009 29,
  2. 2. Overview  AFFew Words About the Alliance W d Ab t th Alli  Why Energy Efficiency? Why Now?  Policy: Tapping the Full Potential of Energy Efficiency  Regional/State Leadership: Building Green Economies One by One  Forecast for the Future: Energy Efficiency as the Foundation of a New, Green Economy
  3. 3. What is the Alliance to Save Energy? Alli t S E ?  A unique NGO formed and still led by Members of Congress  Guided by a 37-Member, Elected Board of Directors - 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 associations heads, state and local policy makers, corporate executives
  4. 4. Forging Alliances: Business, Govt. & Public Interests i bli  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
  5. 5. Energy Efficiency: Faithful Friend America's Greatest Energy Resource Energy Efficiency and Conservation Improvements Since 1973 Have Reduced Annual Energy Consumption by 50 Quads Energy Energy Efficiency and Conservation 50 Efficiency Petroleum Natural Gas 24 40 has been Coal 23 powering Nuclear Electric Power 8 Wood, Waste, Alcohol 4 the U S U.S. Conventional Hydroelectric Geothermal, Solar and Wind 3 0.8 economy 0 10 20 30 40 50 60 for over Quads Alliance to Save Energy August 2008 30 years! 2007 Domestic Production Net Imports
  6. 6. Enormous Savings  Energy Efficiency AVOIDING roughly 2.5 billion tons of CO2 annually  Saving roughly $400 billion annually
  7. 7. Why Now? Energy Use is a Global Climate Issue li Source: Energy Information Administration
  8. 8. Why Now? Growing Energy Demand is Unsustainable 18 Other Oth renewables bl 16 Biomass Hydro valent 14 Nuclear billion tonne of oil equiv 12 Gas Oil 10 Coal 8 es 6 4 2 0 1980 1990 2000 2010 2020 2030 Global demand grows by more than half over the next quarter of a century, with coal use rising most in absolute terms
  9. 9. Why Now? U.S. Growth in Energy Use Poses a National Security Threat i l i h
  10. 10. Why Now: Energy Efficiency is a Pocketbook Issue P k tb k I
  11. 11. Why Efficiency? Cheapest, Quickest, Cl Q i k t Cleanest…. t  Annual world-wide investment of $170 billion world wide in energy efficiency through 2020 could: - cut global growth in energy demand by ½! - save $900 billi a year iin avoided energy costs billion id d t - dramatically reduce greenhouse gas emissions  Source: The McKinsey Global Institute
  12. 12. Why EE? Enormous Potential for Savings in ALL Sectors… S i i S t Source: McKinsey Global Institute
  13. 13. Why Efficiency? Local Benefits
  14. 14. EE: Enormous Potential for Regional Job Growth Growth… The same study reveals that cost-effective energy gy policies can positively impact the larger Appalachia economy, creating 77,378 jobs 77 378 regionally.
  15. 15. The Challenge? Market Distortions M k t Di t ti  Principal Agent or “Split Incentives Split Incentives” - Home/Commercial builder versus buyer - Landlord versus tenant - Utility versus customer  Transaction Costs - Lack of information on life-cycle cost for products and/or paybacks for upgrades  Lack f Investment in RD&D and EE P L k of I t ti d Programs
  16. 16. How Do We Unlock the Potential of E f Energy Efficiency? Effi i ?
  17. 17. Five Tenants of Sound EE Public Policy P bli P li 1)Research, development and deployment (RD&D) 2)Education and outreach 3)Incentives and Fi 3)I ti d Financing M h i i Mechanisms 4)Standards & Codes 5)Government “Leadership by Example” ) p y p
  18. 18. A Big Year for Energy Efficiency in P bli P li i Public Policy Obama’s American President’s NEW! American Ongoing election Recovery & Fiscal Year Clean Energy appropriations platform Reinvestment 2010 budget and Security in House and Act (ARRA, Act (ACES) Senate climate or Stimulus & energy bills ) Bill) President’s House DOE: new new CAFÉ PASSES lighting standards ACES (6/26) standards
  19. 19. President Obama: Energy Efficiency Advocate – Reduce electricity use 15% by 2020 y y – Net-zero energy buildings by 2030 – Overhaul federal appliance standards – By 2014, reduce energy use in new 2014 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 I t ti ti f “li bl cities” – Showed early commitment to large green energy component in the economic recovery bill
  20. 20. American Recovery & Reinvestment Act: $65B Related to Energy Efficiency Energ Efficienc Funding in Millions of US Dollars
  21. 21. ARRA: Built on the Five Pillars of Good Public Policy G d P bli P li  RD&D – Smart Grid ($4.5 bill) – DOE RD&D ($2.25 billion)  Incentives and Financing Tools I ti d Fi i T l – Extension of tax incentives  Codes & Standards – “Conditions” State funding on strong building codes  Education & Outreach – State Energy Star rebate programs ($300 million)  Government Leadership by Example – Federal “High-Performance Green Buildings” ($4.5 billion)
  22. 22. Funding Rollout  Energy Funds Slow to  Projected timing of  all funds made  ll f d d Unroll: available to states  - 1% of FY2009 awards and localities.  - 90% of FY2009 awards go to 90% of FY2009 awards go to  health, transportation and  education  Funding allotted in  Funding allotted in segments: - For SEP & WAP:  10% on initial app approval 10% i i i l l  40% on comprehensive app  approval   Remaining 50% contingent on  Remaining 50% contingent on demonstrated success FY09 and FY12  funding for states  and localities
  23. 23. Core Energy Funding Obligation & Spending to date  SEP  Smart Grid Investment Grant  - Appropriated $3 1 billion Appropriated: $3.1 billion Program - Obligated: $301.6 million - Appropriated: $4.5 billion - Spent: $9.4 million - Obligated: $0  EECBG  EECBG  Smart Grid Demonstration  Smart Grid Demonstration - Appropriated: $3.2 billion Projects - Obligated: $0 - Appropriated: $615 million  WAP - Awarded: $4.7 million - Appropriated: $5 billion - Spent: $0 - Obligated: $553.4 million  HUD’s EE Public Housing Capital  - Spent: $8.3 million Funds  Green Jobs - Appropriated: $4 billion Appropriated: $4 billion - Appropriated: $500 million - Awarded: $0 - Obligated: $0  HUD’s Green Retrofit Program - Appropriated $250 million Appropriated $250 million - Obligated: $0 $890 million of $18 billion awarded (.5%)
  24. 24. ARRA Funding for EE F nding North Carolina: South Carolina  State Energy Program (SEP)  State Energy Program (SEP) - Appropriated: $76 million - Appropriated: $51 million - Awarded: $30.4 million (June  $ ( - Awarded: $20.2 million (June 25) $ ( ) 25)  Weatherization Assistance   Weatherization Assistance  - Appropriated: $132 million Appropriated: $132 million - Appropriated: $59 million Appropriated: $59 million - Obligated: $53 million (June  - Obligated: $24 million (June  18th) 18th) - Weatherization goal: 23,500  g , - Weatherization Goal: 6,500  Weatherization Goal: 6 500 homes homes  Energy Efficiency and   Energy Efficiency and  Conservation Block Grants Conservation Block Grants* Conservation Block Grants Conservation Block Grants* - Appropriated: $ 58 million - Appropriated: $ 31 million
  25. 25. State E St t Energy Program Plans P Pl Building  Code  Green  Education  Compli‐ Jobs  and  Transport‐ State Energy Efficient Buildings Financing Mechanisms ance Training Outreach ation Performance  Revolving  Contracting Residential Industrial Commercial State  Loans Grants Credits Arizona x x x California x x x x x x Colorado x x x x x x x Georgia x x x x x x Iowa x x x x Maine x x x Massachusetts x x Minnesota x x Montana x New Hampshire New Hampshire x x x x x New York x North  Carolina x x x x x x South  Carolina x x x x x x x West Virginia x x x x Updated regularly on our stimulus resources page:
  26. 26. Uses of Funds: State E St t Energy Programs Plans P Pl  North Carolina: - Support small business and industry through energy savings ($11 5 million) Support small business and industry through energy savings ($11.5 million) - Grow North Carolina’s green workforce‐ ($8.85 million) - Foster renewable energy technology and resource innovation ($13.5 million) - Improve energy efficiency in local and state government ($9 5 million) Improve energy efficiency in local and state government ($9.5 million) - Promote residential energy efficiency and renewable energy ($10 million) - Create an Energy Investment Revolving Loan Fund ($18 million)  South Carolina: - Improve energy efficiency in Public Institutions ($40 million) - Create South Carolina Energy Efficiency Training Center Collaborative ($.9  million) - Establish Small Business/Utility Partnership for Energy Efficiency Equipment  / ($50 thousand) - Improve energy efficiency in Low‐Income Manufactured Housing ($3  ) million) - Establish Carolina Clean Green Investment Incentives ($3 million) - Establish Competitive Renewable Energy Grants Program ($3 million)
  27. 27. Oversight and Advocacy  Immense problems of implementation - size and complexity;  - challenge of administration within limited  time frame; ; - political appointees not in place;  - demands on career appointees  Credibility of future energy efficiency  C dibilit f f t ffi i initiatives depends on competent and  effective implementation  Problem of EM & V: How do we measure  savings?   Continuity of Programs: What happens  C ti it f P Wh t h when the funding goes away? 
  28. 28. A Word on Federal Tax Incentives New Homes Builder tax credit - up to $2,000 if 50% more efficient compared to 2004 IECCC code; $1,000 for a home that saves 30% or qualifies for the Energy Star Homes Program. (Through 2009) Existing Homes Homeowner tax credit – 30% of cost of installing building envelope components; capped at $1,500 (Through 2010) Commercial Buildings Deduction D d ti up t $1.80/sq.ft. f buildings d i to $1 80/ ft for b ildi designed t use 50% l d to less energy than ASHRAE-90.1-2001 (Through 2013) Combined Heat and Power property – 10% investment tax credit, applicable to only the first 15MW of CHP p p y ( pp y property (Through 2016) g ) Solar Energy Systems- 30% tax credit of the cost of the system (Through 2016) Small Wind Systems- 30% of total cost for owners of small wind systems with 100 (kW) of capacity and less (Through 2016) Geothermal Heat Pumps- Investment tax credit of 10% of installed cost or a grant in lieu of the credit worth 10% (Through 2010) Public Buildings: Assignable deduction!
  29. 29. Next Up? Energy and Climate Legislation E d Cli t L i l ti  In the House  In the Senate - ACES (The American - ACELA (The Clean Energy and American Clean Security Act, or Energy Leadership Waxman-Markey) Act)  Status: Narrowly  Scope: Energy Only passed the House on  Status: Approved by pp y June 26th by a vote of Energy Committee on 219 to 212. June 27th
  30. 30. ACES: Cap i th C is the crown jewel j l  85% of US GHG emissions covered - Could be higher  Covered emissions reduced 83% in 2050  Defend and protect the cap!
  31. 31. ACES: Goals for E G l f Energy Efficiency Effi i Policies will no longer save more energy energy. Instead they will—  Reduce cost of meeting carbon cap by  Addressing market barriers, especially g , p y among energy end-users
  32. 32. ACES: EE Programs  Complementary EE policies  Codes, standards, building labeling, electric efficiency resource standards; authorizations; financing mechanisms  Complementary Programs - EE in WM is 3-6% of allowance value  $81 t $167b over 2012 2050 to 2012-2050 - 12.5% of allowance value could get  Allowance prices 10% lower p  Electric, nat gas and petrol prices 1-3% lower  Electric and natural gas demand 3-7% lower according to EPA analysis April 20
  33. 33. Climate Outlook in Senate  Senate EPW to release draft in September  At least six other committees have jurisdiction over climate legislation; Senator Reid has asked these Committees to conclude deliberations by Sept 18 Sept.  Majority Leader Reid wants to bring comprehensive bill to the floor in the fall; we are hearing October for floor action OOpponents/Proponents in “Pitched B l ” /P i “Pi h d Battle”
  34. 34. ACES: Where the Votes Are ACES Wh th V t A States with majority of votes in the delegation for the Waxman-Markey bill are in green; Waxman Markey states with majority opposing W/M are in red
  35. 35. The Challenges Can Be Overcome:   Unleashing NC and SC’s Potential!  U l hi NC d SC’ P i l! Retail Electricity Consumption per Capita 18.0000 16.0000 14.0000 14 0000 urs per Person 12.0000 NC 10.0000 10 0000 usand Kilowatt Hou NY VT 8.0000 USA EU 6.0000 6 0000 JAPAN Thou 4.0000 2.0000 0.0000 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005
  36. 36. Unleashing the Power of Public Policy: A “Prescription for Success” Western Governors “CDEAC” Recommendations CDEAC  Migrate “Best Practices” to ALL western states - Institute Electric & Natural Gas DSM Programs - Update & Enforce New Building Codes - Government Leadership in Facilities/Practices - Financial Incentives - Pricing Policies (Pay more for the more you use) - Education & Outreach - Technology R&D and Transfer - Form Regional Initiatives - Feasible to reduce electricity use 20% in 2020
  37. 37. Leadership i th St t L d hi in the States California Cut Energy Use and Peak Demand  “Flex Your Power Campaign” - Retail promotions - TV, Print & Radio Advertising  20/20 Utility Rebate Program - Automatic Enrollment Simple Requirement - Executive Order All Investor owned Utilities Investor-owned Results  Reduced energy consumption at peak by 14%  32% of residents & businesses cut energy use by at least 20%  Per capita energy use lower than any industrialized nation  Cost of savings lower than contract or spot market power purchases
  38. 38. Unleashing the Power of Charlotte: Suggestions for Success S i f S  National  EPA Clean Action Plan Energy- for Energy Environment Efficiency Guide to Action - EEI, NARUC, - DOE, NARUC, EPA, DOE… NASEO, ASE, RAP  Western  State Energy Governors Efficiency Policies: a Association Series of Briefs, Energy pub. by the Alliance Efficiency Task Force Report
  39. 39. EE Global 2010 Monday, May 10 to Wednesday, May 12, 2010 Washington DC Convention Center, Washington DC EE Global 2010, will serve as the “Davos” of the energy efficiency community, drawing over 600 leaders from government, industry, NGOs, and media from 40+ countries together to share best practices and policies for global implementation of energy efficiency. With over 80% of 2009 participants self-identifying as executive or management-level, participation in EE Global will provide access to tl l ti i ti i Gl b l ill id t energy efficiency’s most notable leaders and decision makers.
  40. 40. Final Words Words… “Our greatest national energy Our resource is the energy we currently waste.” waste ” Former Energy Secretary Spence Abraham
  41. 41. Thank you! For M F More Information…. I f ti Kateri Callahan President Alliance to Save Energy 1850 M Street NW Street, Washington, D.C. 20036 202.857.0666