The Energy Efficiency Lifestyle: Four Major Ingredients


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Attended by Approximately 300 key White House and congressional policy makers and their staff, related think-tanks and science and technology-based academic organizations, this event was intended to provide a platform for key U.S. opinion leaders and technological experts to discuss global climate change and the preservation of the natural environment, and to inform key U.S. policy makers of the latest technologies for the realization of a low-carbon, energy-saving society. Kateri spoke on the panel, Conserving Energy through Policy, Technology and Lifestyle, describing the ways in which good policy, market transformation and smart consumer campaigns are necessary to nurture an energy-efficient lifestyle, and one that is aware of energy efficiency and conservation as a solution to global climate change.

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The Energy Efficiency Lifestyle: Four Major Ingredients

  1. 1. The Energy Efficiency Lifestyle: Four Major Ingredients Kateri Callahan, President, Alliance to Save Energy Hitachi Climate Change Forum Washington, D.C. Thursday, March 5, 2009
  2. 2. Overview A Few Words About the Alliance  Energy Efficiency: The World‟s Greatest Resource  Driving Energy Efficiency: Four Pillars  - Prices Matter: High Energy Costs = Savings - Building Energy Efficiency Codes and Standards: Moving inefficient construction and products out of the market - Consumer and Student Education & Awareness: Transforming Markets, Green Collar Training - Good Public Policies: The Cornerstone of an Energy- Efficient Society Our Energy Future 
  3. 3. What is the Alliance to Save Energy? Mission: To promote energy efficiency  Policy Leaders worldwide to achieve a healthier economy, a cleaner environment, and greater energy security. The Alliance is… Environ- Business The Alliance to Staffed by 50+ professionals  mental Leaders Save Energy Groups 31 years of experience in  policy, research, education, communications, technology deployment and market transformation Academia
  4. 4. Alliance Directors: Bi-Partisan Elected Officials & 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 Senator Mark Jim Rogers, CEO Bi-partisan, bi-cameral Honorary Vice Chairs Pryor (D-Ark.) Duke Energy
  5. 5. 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
  6. 6. Why Energy Efficiency? Powering the U.S. Economy for 30 Years America's Greatest Energy Resource Energy Efficiency and Conservation Improvements Since 1973 Have Reduced Annual Energy Consumption by 50 Quads in 2007 Energy Efficiency and Conservation 50 40 Petroleum 24 Natural Gas Coal 23 8 Nuclear Electric Power 4 Wood, Waste, Alcohol 3 Conventional Hydroelectric 1 Geothermal, Solar and Wind 0 10 20 30 40 50 60 Quads Alliance to Save Energy, Energy Efficiency and Conservation 2007 Domestic Production Net Imports November, 2008
  7. 7. Prices Matter: Global Economic Impacts of Energy Use Source: McKinsey Global Institute
  8. 8. Prices Matter: EE = Cheap, Quick “First Response” to Climate
  9. 9. The Challenge? Market Distortions Principal Agent or “Split Incentives”  - Home builder versus buyer - Utility versus customer Transaction Costs  - Lack of information on life-cycle cost for products and/or paybacks for upgrades Lack of Investment in RD&D and EE Programs  Public Policies Essential   Consumer Education & Outreach Essential
  10. 10. Energy Prices Matter: Consumer Behavior
  11. 11. Prices Matter: High Costs = Behavior Modification
  12. 12. Building Energy Codes & Appliance & Equipment Standards Transform Markets  - Eliminates availability of inefficient products and construction - Makes energy efficiency part of the package – consumers don‟t have to think about it - Building Codes “Lock In” Savings for Decades
  13. 13. Driving Efficiency through Codes and Standards….. Federal Legislation Pending  - Would Drive 30% Improvement in Residential and Commercial EE Codes by 2010; 50% by 2020 2009 Model Energy Code for Homes: IECC  Improves Efficiency by approximately 13% over 2006 - EECC Sought 30% Improvement ASHRAE Goal (Commercial) is a 30% Improvement  in Efficiency in the 2010 Code Cycle
  14. 14. Light Bulb Standard U.S. set performance standards for general service  light bulbs, starting in 2012-2014 25-30% savings: will phase out traditional  incandescent bulbs Second standard in 2020 must achieve roughly 65%  savings Most significant appliance standard ever adopted  - Will reduce CO2 by 100 Mt/yr. by 2020 - Will save $13 billion annually
  15. 15. Mobilizing Our Best “Weapon”: Consumers The foundation is there:  According to EnergyPulse 2008, 88.2% of – surveyed consumers report a positive association with the term „energy efficiency‟ Consumer Education & Outreach is the way  forward: – Innovative campaigns emphasizing energy-efficient lifestyles – Focus on “pocketbook” and personal/family benefits
  16. 16. Consumer Campaigns at the Alliance Energy Hog Super Powers DOE, Ad Council, Alliance, States EPA, NYSERDA, Alliance All Media Outlets Nationwide TV & Radio Web, Collateral Materials (ABC, CBS, CNN) Consumer Website P&G ColdWater Campaign Powerful $avings P&G, Alliance DOE & Alliance Partnership All Media Outlets & Web All Media Outlets The Power is In Your Hands Eureka $mart House Industry, DOE, EPA, Alliance Energy-Efficiency Challenge All Media Outlets, Web & NBC Universal, Industry, DOE, Alliance Collateral On Air, Web–Home Makeover Contest
  17. 17. The Drive $marter Challenge ( Billboard advertising Interactive Website Extensive media coverage Corporate support Celebrity support Government support Driving & Car Maintenance Tip cards
  18. 18. Driving Energy Efficiency Through Education: Green Schools Program Creating powerful advocates for energy efficiency Tomorrow: Students are the energy users, citizens of tomorrow -- they can gain deep understanding of energy/environment link Today: Students can advocate for energy efficiency to their parents, schools and communities, and conduct credible research
  19. 19. But Citizens Want Help… “Who Are You Going to Call…? .....The Government!”
  20. 20. A History of Policy Progress (Slowly but Surely!) Energy Policy Act of 2005 will by 2020:  - Reduce U.S. energy use by 2% - Reduce electricity demand by 4% - Reduce oil use by 0% - Reduce CO2 emissions by 3% Energy Independence and Security Act of 2007  will by 2020 (2030): - Reduce U.S. energy use by 4% (7%) - Reduce electricity demand by 4% (5%) - Reduce oil use by 5% (10%) - Reduce CO2 emissions by 5% (9%) Estimates from ACEEE, ASE
  21. 21. On the Horizon… …More Energy Efficiency?
  22. 22. 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”
  23. 23. The First Step: American Recovery & Reinvestment Act 2009
  24. 24. ARRA: Big on EE $20 billion for EE : • $5 billion for the Weatherization Assistance Program, which will go a long way in meeting President Obama‟s goal of weatherizing one million homes per year while creating an estimated 32,000 jobs in the auditing and retrofitting industries; • $4.5 billion to make 75 percent of federal buildings more energy efficient; • $3.1 billion for the State Energy Program (SEP), which delivers important energy efficiency services and innovations in every state; the language contains incentives for states to adopt utility regulatory reform and stronger building energy codes; this program has the needed infrastructure to quickly absorb the new funding and create new jobs; • $300 million for state matching grants for rebates to consumers who purchase higher-tier energy-efficient appliances; • $3.2 billion for Energy Efficiency and Conservation Block Grants (EECBG) that will allow state and local governments to aggressively implement energy efficiency programs; • $400 million of the EECBG funds to be awarded on a competitive basis; and • More than $8 billion for state and local government investments in public transportation.
  25. 25. Market Transformation: Federal Tax Incentives New Homes Builder tax credit - up to $2,000 if 50% more efficient compared to 2003 IECC code; $1,000 for an Energy Star manufactured home. (Through December 31, 2009) Existing Homes Homeowner tax credit – 30% of cost of installing building envelope components consistent with IECC 2000; capped at $1500. (Through December 31, 2010) Commercial Buildings Deduction up to $1.80/sq.ft. for buildings designed to use 50% less energy than ASHRAE-90.1 (Through 2013) Public Buildings: Assignable deduction!
  26. 26. RE & EE: Key Ingredients to Climate Change Legislation Estimated Allowance Allocation under Boxer Substitute Amendment to Climate Security Act $350 $300 $19 $19 $19 Allowance Value $18 Allocated To Renewables $45 $250 $44 $44 $16 $41 Bilion Dollars $15 $38 $200 $34 $13 Allowance Value $29 $11 $150 Allocated To Energy $25 Efficiency $100 Other Allowance Value $50 $0 2015 2020 2025 2030 2035 2040 2045 2050 Year
  27. 27. The Future is Ours to Invent! Near-Term Promise:  - The U.S. Economy is Re-built on Development and Deployment of Clean Energy and Technologies Mid-Term Promise:  - Energy Efficiency is the “First Tool” in the Arsenal for Fighting Climate Change Long-term Reality?:  - U.S. Becomes the Most Energy Efficient Economy in the World
  28. 28. Planning Committee: Organized by an International Steering Committee Marc Bitzer Lena Ek Andreas Schierenbeck Nobuo Tanaka Jean-Pascal Tricoire Claude Turmes EVP, Whirlpool Corp. CEO, Building Executive Director, President and MEP (Luxembourg) MEP (Sweden) President, Whirlpool Europe Automation, Siemens International Energy Agency CEO, Schneider Electric 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:
  29. 29. Thank you! For More Information…. Kateri Callahan President Alliance to Save Energy 1850 M Street, NW Washington, D.C. 20036 202.857.0666