The Energy Efficiency Lifestyle: Four Major Ingredients

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Energy Efficiency Lifestyle Four: Major Ingredients. Presented by Kateri Callahan, President of the Alliance to Save Energy at the International Symposium on Climate Change in Tokyo, Japan on November 17, 2008

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The Energy Efficiency Lifestyle: Four Major Ingredients

  1. 1. The Energy Efficiency Lifestyle: Four Major Ingredients   International Symposium on Climate Change Tokyo, Japan. November 17, 2008
  2. 2. Overview <ul><li>A Few Words About the Alliance </li></ul><ul><li>Energy Efficiency: The World’s Greatest Resource </li></ul><ul><li>Driving Energy Efficiency: Four Pillars </li></ul><ul><ul><li>Prices Matter: High Energy Costs = Savings </li></ul></ul><ul><ul><li>Building Energy Efficiency Codes and Standards: Moving inefficient construction and products out of the market </li></ul></ul><ul><ul><li>Consumer Education & Awareness: Transforming Markets </li></ul></ul><ul><ul><li>Good Public Policies: The Cornerstone of an Energy-Efficient Society </li></ul></ul>
  3. 3. What is the Alliance to Save Energy? <ul><li>Mission: </li></ul><ul><li>To promote energy efficiency worldwide to achieve a healthier economy, a cleaner environment, and greater energy security. </li></ul><ul><li>The Alliance is… </li></ul><ul><li>Thirty years in the making </li></ul><ul><li>Fuel neutral </li></ul><ul><li>Staffed by 50+ professionals </li></ul><ul><li>Active in policy, research, education, communications, technology deployment and market transformation </li></ul>Business Leaders Academia Environmental Groups Policy Leaders The Alliance to Save Energy
  4. 4. Energy Efficiency: Powering the U.S. Economy for 30 Years
  5. 5. Imperatives for Energy Efficiency: Energy Use is a Global Climate Issue Source: Energy Information Administration
  6. 6. In the U.S., Growth in Energy Use Poses a National Security Threat
  7. 7. Saving Money: the Best Reason to Save Energy??
  8. 8. Prices Matter: High Costs = Behavior Modification
  9. 9. EE: The No-Cost Way to Reduce GHG Emissions Energy Efficiency should be fully considered in GHG reductions. All items to the left of the arrow represent “negative marginal costs”
  10. 10. The Challenge? Market Distortions <ul><li>Principal Agent or “Split Incentives” </li></ul><ul><ul><li>Home builder versus buyer </li></ul></ul><ul><ul><li>Utility versus customer </li></ul></ul><ul><li>Transaction Costs </li></ul><ul><ul><li>Lack of information on life-cycle cost for products and/or paybacks for upgrades </li></ul></ul><ul><li>Lack of Investment in RD&D and EE Programs </li></ul><ul><li>Public Policies Essential </li></ul><ul><li>Consumer Education & Outreach Essential </li></ul>
  11. 11. Building Energy Codes & Appliance & Equipment Standards <ul><li>Transform Markets </li></ul><ul><ul><li>Eliminates availability of inefficient products and construction </li></ul></ul><ul><ul><li>Makes energy efficiency part of the package – consumers don’t have to think about it </li></ul></ul><ul><ul><li>Building Codes “Lock In” Savings for Decades </li></ul></ul>
  12. 12. <ul><li>Federal Legislation Pending </li></ul><ul><ul><li>Would Drive 30% Improvement in Residential and Commercial EE Codes by 2010; 50% by 2020 </li></ul></ul><ul><li>2009 Model Energy Code for Homes: IECC Improves Efficiency by approximately 13% over 2006 </li></ul><ul><ul><li>EECC Sought 30% Improvement </li></ul></ul><ul><li>ASHRAE Goal (Commercial) is a 30% Improvement in Efficiency in the 2010 Code Cycle </li></ul>Driving Efficiency through Codes and Standards…..
  13. 13. Corporate Average Fuel Economy (CAFE) Standards <ul><li>Improved in the Energy Independence and Security Act of 2007 (EISA) </li></ul><ul><li>Sets standards for cars and light trucks achieving 35 mpg by 2020 . </li></ul><ul><li>Attribute-based standards, but </li></ul><ul><li>Keeps car and light truck standards separate, dual fuel vehicle loophole, old testing (so “35” really is about 28 mpg) </li></ul><ul><li>DOT to set standards for larger trucks, tire efficiency ratings </li></ul>
  14. 14. Light Bulb Standard <ul><li>U.S. set performance standards for general service light bulbs, starting in 2012-2014 </li></ul><ul><li>25-30% savings: will phase out traditional incandescent bulbs </li></ul><ul><li>Second standard in 2020 must achieve roughly 65% savings </li></ul><ul><li>Most significant appliance standard ever adopted </li></ul><ul><ul><li>Will reduce CO2 by 100 Mt/yr. by 2020 </li></ul></ul><ul><ul><li>Will save $13 billion annually </li></ul></ul>
  15. 15. Energy Efficiency is a Consumer Lifestyle Issue <ul><li>The foundation is there: </li></ul><ul><li>According to EcoPulse 2008 , 88.2% of surveyed consumers report a positive association with the term ‘energy efficiency’ </li></ul><ul><li>Consumer Education & Outreach is the way forward: </li></ul><ul><ul><li>Innovative campaigns emphasizing energy-efficient lifestyles </li></ul></ul><ul><ul><li>Focus on “pocketbook” and personal/family benefits </li></ul></ul>
  16. 16. Consumer Campaigns at the Alliance <ul><li>Super Powers </li></ul><ul><li>EPA, NYSERDA, Alliance </li></ul><ul><li>Nationwide TV & Radio </li></ul><ul><li>(ABC, CBS, CNN) </li></ul><ul><li>Consumer Website </li></ul><ul><li>Powerful $avings </li></ul><ul><li>DOE & Alliance Partnership </li></ul><ul><li>All Media Outlets </li></ul><ul><li>The Power is In Your Hands </li></ul><ul><li>Industry, DOE, EPA, Alliance </li></ul><ul><li>All Media Outlets, Web & Collateral </li></ul>Energy Hog DOE, Ad Council, Alliance, States All Media Outlets Web, Collateral Materials P&G ColdWater Campaign P&G, Alliance All Media Outlets & Web Eureka $mart House Energy-Efficiency Challenge NBC Universal, Industry, DOE, Alliance On Air, Web–Home Makeover Contest
  17. 17. The Drive $marter Challenge (www.drivesmarterchallenge.org) Billboard advertising Extensive media coverage Interactive Website Celebrity support Government support Corporate support Driving & Car Maintenance Tip cards
  18. 18. But Consumers Want Help… <ul><li>“ Who Are You Going to Call…? </li></ul><ul><li>.....The Government!” </li></ul>
  19. 19. And the Government Responds…. <ul><li>Energy Policy Act of 2005 will by 2020: </li></ul><ul><ul><li>Reduce U.S. energy use by 2% </li></ul></ul><ul><ul><li>Reduce electricity demand by 4% </li></ul></ul><ul><ul><li>Reduce oil use by 0% </li></ul></ul><ul><ul><li>Reduce CO 2 emissions by 3% </li></ul></ul><ul><li>Energy Independence and Security Act of 2007 will by 2020 (2030) : </li></ul><ul><ul><li>Reduce U.S. energy use by 4% (7%) </li></ul></ul><ul><ul><li>Reduce electricity demand by 4% (5%) </li></ul></ul><ul><ul><li>Reduce oil use by 5% (10%) </li></ul></ul><ul><ul><li>Reduce CO 2 emissions by 5% (9%) </li></ul></ul><ul><li>Estimates from ACEEE, ASE </li></ul>
  20. 20. Our Government at Work: Extension of Tax Incentives <ul><li>New Homes </li></ul><ul><ul><li>Builder tax credit - up to $2,000 if 50% more efficient compared to 2004 IECCC code; $1,000 for an Energy Star manufactured home. (Through 2009) </li></ul></ul><ul><li>Existing Homes </li></ul><ul><ul><li>Homeowner tax credit – 10% of cost of installing building envelope components consistent with IECC 2000; capped at $500; $200 can apply to windows. (Through 2009) </li></ul></ul><ul><li>Commercial Buildings </li></ul><ul><ul><li>Deduction up to $1.80/sq.ft. for buildings designed to use 50% less energy than ASHRAE-90.1 (Through 2013) </li></ul></ul><ul><li>Public Buildings : Assignable deduction! </li></ul>
  21. 21. And there is Leadership at the Federal Level… <ul><li>Energy savings goals + report cards </li></ul><ul><li>Public buildings </li></ul><ul><li>Public procurement </li></ul>Federal building energy/sq.ft. down 30% in 20 years
  22. 22. Good Policies – Help Deliver Energy Efficiency
  23. 23. A Look at President-Elect Obama’s Platform… <ul><li>On Energy Efficiency </li></ul><ul><ul><ul><ul><li>Reduce Electricity Demand 15% by 2020 </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Net-Zero Energy Buildings by 2030 </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Overhaul Federal Appliance Standards </li></ul></ul></ul></ul><ul><ul><ul><ul><li>45% Improvement in New Federal Building Energy Use by 2014 </li></ul></ul></ul></ul><ul><ul><ul><ul><li>25% Improvement in Existing Federal Building Energy Use by 2014 </li></ul></ul></ul></ul><ul><ul><ul><ul><li>15% Overall Reduction in Federal Energy Use by 2015 </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Flip Incentives for Utilities </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Invest in a “Smart Grid” </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Weatherize 1 Million Homes Annually </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Invest and Incent “Liveable Cities” </li></ul></ul></ul></ul>
  24. 24. EE GLOBAL 2009 <ul><li>April 27 -29, 2009 </li></ul><ul><li>Paris, France at Palais des Congres de Paris </li></ul><ul><li>Hosted by the Alliance to Save Energy </li></ul><ul><li>Organized by an International Steering Committee </li></ul><ul><ul><li>Chaired by Marc Bitzer, President, Whirlpool Europe; Jean-Pascal Tricoire, President and CEO, Schneider Electric; Nobuo Tanaka, Executive Director, International Energy Agency; Lena Ek, MEP; & Claude Turmes, MEP </li></ul></ul><ul><li>Program created by an International Program Committee </li></ul><ul><ul><li>Chaired by Paolo Bertoldi, I.E.S. – Renewable Energies Unit, Directorate General JRC, European Commission </li></ul></ul>
  25. 25. Thank you! <ul><li>For More Information…. </li></ul><ul><li>Kateri Callahan </li></ul><ul><li>President </li></ul><ul><li>Alliance to Save Energy </li></ul><ul><li>1850 M Street, NW </li></ul><ul><li>Washington, D.C. 20036 </li></ul><ul><li>[email_address] </li></ul><ul><li>www.ase.org </li></ul><ul><li>202.857.0666 </li></ul>

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