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Energy Efficiency: The Foundation for a Clean Energy Economy

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Kateri Callahan joined leading experts from the Clean Energy Network and Apollo Alliance for an informative discussion on the current state of the American clean energy sector, the impacts of past and current policy initiatives, and challenges the sector will face in 2010 and beyond.

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Energy Efficiency: The Foundation for a Clean Energy Economy

  1. 1. Energy Efficiency: The Foundation for a Clean Energy Economy<br />Kateri Callahan, President<br />Alliance to Save Energy<br />Webinar: An Analysis of the State of Clean Energy Policy in the U.S.<br />January 25, 2010<br />
  2. 2. Presentation Overview<br />A Few Words About the Alliance<br />Energy Efficiency – Our Greatest Resource<br />Driving Energy Efficiency Through Policy: A Formula for Success<br />Kateri’s Crystal Ball: Forecasting Federal Action on EE in 2010 <br />
  3. 3. What is the Alliance to Save Energy? <br />Mission: <br /><ul><li>To promote energy efficiency worldwide to achieve a healthier economy, a cleaner environment, and greater energy security.</li></ul>Organization:<br /><ul><li>Staffed by 60+ professionals
  4. 4. 32 years of experience
  5. 5. $12 million annual budget
  6. 6. Recognized as premier EE organization in the world</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. Led by Senator Mark Pryor (D-Ark.) and Peter Darbee, President and CEO of Pacific Gas and Electric
  9. 9. Includes 10 Members of Congress – Bi-Cameral; Bi-Partisan
  10. 10. Also includes environmental, consumer, and trade associations heads, state and local policy makers, corporate executives</li></li></ul><li>Working with and Across All Sectors of the Economy <br /><ul><li>170 companies, organizations, and institution in Associates Program
  11. 11. Associates Program membership represents all economic sectors
  12. 12. Initiatives underway in research, policy advocacy, education, technology deployment, market transformation and communications</li></li></ul><li>Why Energy Efficiency?30 years of savings…<br />
  13. 13. Enormous Savings<br />Energy Efficiency AVOIDING roughly 2.5 billion tons of CO2 annually <br />Saving roughly$400 billion annually<br />
  14. 14. Public Policy Helped Deliver EE Into the U.S. Economy<br />
  15. 15. Deploying EE in the U.S.: A Foundation of Public Policy<br /><ul><li>To lock in savings for consumers and businesses
  16. 16. To achieve market penetration
  17. 17. To gain foothold in market</li></ul>To encourage technological innovation<br />
  18. 18. The EE Policy March Quickens<br />
  19. 19. EPAct 2005 and EISA 2007: Setting the Stage<br />EISA 2007: A marriage of…<br />EPAct 2005:<br />EE provisions for:<br /><ul><li>Buildings
  20. 20. Transportation
  21. 21. R&D
  22. 22. Utilities
  23. 23. Tax Incentives</li></li></ul><li>And Policies Matter: The Outlook After EPAct and EISA<br />
  24. 24. 2009: A Big Year for Energy Efficiency in the U.S.<br />January 2009<br />October<br />November<br />December<br />October<br />November<br />December<br />June<br />June<br />July <br />May<br />May<br />May<br />Executive Order, EE in federal agencies<br />House Passes $75 Billion “Jobs for Main Street” bill<br />Stimulus package<br />American Clean Energy and Security Act (ACES) <br />Ongoing approps in House/Senate climate/energy bills <br />HVAC standards agreement<br />President’s Fiscal Year 2010 budget<br />HOUSEPASSES ACES (6/26)<br />COP15: Secretary Chu announces Climate REDI Program<br />Outdoor Lighting standards<br />President’s new CAFÉ standards<br />DOE: new lighting standards<br />Bilateral agreement: U.S.-China Energy Efficiency Action Plan<br />
  25. 25. American Recovery & Reinvestment Act: $65B Related to Energy Efficiency<br />Funding in Millions of US Dollars<br />
  26. 26. ARRA: Built on the Five Pillars of Good Public Policy <br /><ul><li>RD&D
  27. 27. Smart Grid ($4.5 bill)
  28. 28. DOE RD&D ($2.25 billion)
  29. 29. Incentives
  30. 30. Extension of tax incentives
  31. 31. Codes & Standards
  32. 32. “Conditions” State funding on strong building codes
  33. 33. Education & Outreach
  34. 34. State Energy Star rebate programs ($300 million)
  35. 35. Government Leadership by Example
  36. 36. Federal “High-Performance Green Buildings” ($4.5 billion)</li></li></ul><li>President Obama’s FY 2010 Budget: A+ in EE<br />108% Increase Over FY 2009 Request, including: <br /><ul><li>$10 million increase for the industrial sector
  37. 37. $98 million increase in the Department of Energy’s (DOE) Building Technologies Program
  38. 38. includes $10 million for building energy codes. 
  39. 39. $10 million for the Federal Energy Management Program
  40. 40. $25 million increase for the State Energy Program
  41. 41. increases for DOE’s ENERGY STAR program, commercial buildings, residential buildings, R&D, and equipment standards.  </li></li></ul><li>Energy and Climate Legislation<br />American Clean Energy Leadership Act (ACELA)<br />Passed Senate ENR Comm. 17 June<br />Energy bill similar to ACES, but with no cap-and-trade provisions<br />Savings by 2030:<br />4.3 quads<br />$36B for consumers ($240/household)<br />American Clean Energy and Security Act 2009 (ACES)<br />Passed House 26 June<br />Standards + incentives to promote clean energy tech<br />Firm cap on GHG emissions<br />Savings by 2030:<br />8.8 quads<br />$62B for consumers ($486/household)<br />
  42. 42. The role of energy efficiency in climate legislation<br /><ul><li>Efficiency is the quickest, cheapest way to reduce energy consumption and lower greenhouse gas emissions
  43. 43. In ACES, energy efficiency provisions alone would:
  44. 44. Save American households about $154 per year in 2025. (EPA)
  45. 45. Reduce carbon allowance price by 1.5 percent between 2015-2050. (EPA)
  46. 46. 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>ACES: EE Programs<br />Complementary EE policies<br />Building codes and labeling programs<br />Appliance standards<br />Electric efficiency resource standard<br />Complementary EE Programs<br />EE in WM is 3-6% of allowance value<br />$81 to $167b over 2012-2050<br />12.5% of allowance value could get<br />Allowance prices 10% lower <br />Electric, nat gas and petrol prices 1-3% lower<br />Electric and natural gas demand 3-7% lower<br /> according to EPA analysis April 20<br />
  47. 47. The Outlook Should Waxman-Markey Become U.S. Law<br />
  48. 48. Forecast for U.S. Energy Efficiency Policy - 2010<br />Clean Energy Legislation w/ Strong EE <br />Building Codes<br />Appliance Standards<br />Innovative Financing Mechanisms<br />Significant Funding from Allowances <br />New Jobs Bill<br />Loan Guaranties<br />Workforce Training<br />Federal Transit & Fixed Guideways<br />Home Star??? Residential Retrofit<br />Building Star??? Residential Retrofit<br />Significant FY 2011 Appropriations <br />International Accords & Binding International Climate Treaties???<br />
  49. 49. Thank you!<br />Contact information:<br />Kateri Callahan<br />kcallahan@ase.org<br />202-857-0666<br />

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