The Giant Wakes and ROARS: Progress and Potential of Energy Efficiency Policy in the U.S.


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February 17, 2010 in Eilat, Israel

Callahan joined former New York governor George Pataki, Dr. Uzi Landau, Israeli Minister of National Infrastructures, Ambassador Richard Jones, Deputy Executive Director of the International Energy Agency, and Guido Bartels, General Manager of IBM and Chairman of GridWise Alliance, for a presentation and discussion centered around the theme “Energy Efficiency – The Quiet Giant.” Callahan focused her remarks on the progress and potential of energy efficiency in the U.S. and the role federal policy has played in “waking up” the quiet giant.

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  • Length: 12 minutes presentation Importance of EE in reducing CO2 emissions, energy consumption; how does it fit in with climate policy? what has EE delivered to the US economy? how is the U.S. “ramping up” EE? Leadership at states, bubbling up to federal government
  • Annual world-wide investment of $170 billion in energy efficiency through 2020 could: cut global growth in energy demand by ½! save $900 billion a year in avoided energy costs dramatically reduce greenhouse gas emissions Source: The McKinsey Global Institute “ Energy efficiency is the nation’s greatest energy resource—we saved 50 quads in 2007 due to energy efficiency and conservation efforts taken since 1973. This is more energy than we get from any single energy source, including oil.”   “ If we tried to run today’s economy without the energy-efficiency improvements that have taken place since 1973, we would need nearly 50% more energy than we use now. This is more than what we get from any single energy source, including oil, natural gas, coal, and nuclear power.”
  • Passage of EPACT2005 marked beginning of “era of EE” Energy Independence & Security Act (EISA), P. L. 110-140; most sweeping energy bill enacted in over 30 years
  • (I updated this to include US-China bilateral agreement, Copenhagen accord and Climate REDI) November: US-China bilateral agreement includes: 1. The U.S.-China Energy Efficiency Action Plan which outlines initiatives in: - Energy-efficient buildings and communities - Energy-efficient industry - Energy-efficient consumer products 2. The U.S.-China Energy Cooperation Program (ECP): will leverage private sector resources for clean energy project development under the Action Plan, to occur in China but for the benefit of both nations. 24 clean energy companies involved 3. The U.S.-China Energy Research Center: will facilitate joint research and development in clean energy technologies and create an information clearinghouse for use by both countries. Research priorities include building energy efficiency and clean vehicles.  4. The U.S.-China Electric Vehicles Initiative : includes developing joint design standards and test protocols, sharing EV technological research, conducting demonstration projects on EV consumer trends across both countries, creating a multi-year road map to meet research and development needs, and launching public education projects ABOUT CLIMATE REDI: initiative to promote clean energy technologies in developing countries, $350 million fund (of which U.S. will contribute $85 million) - Solar and LED Energy Access Program will accelerate deployment of affordable solar home systems and LED lanterns to those without access to electricity. - Super-efficient Equipment and Appliance Deployment Program will harness the market and convening power of MEF countries to improve efficiency for appliances traded throughout the world. - The Clean Energy Information Platform will establish an online platform for MEF countries to exchange technical resources, policy experience and the infrastructure to coordinate various activities in deploying clean energy technologies, and share this information with the world. - The Scaling-up Renewable Energy Program (S-REP) under the World Bank's Strategic Climate Fund, will provide policy support and technical assistance to low-income countries developing national renewable energy strategies and underwrite additional capital costs associated with renewable energy investments.
  • In 2009, program administrators with energy efficiency programs from 46 states, including demand response, reported data to CEE, compared to 37 states in 2008. Data regarding spending : CEE member programs spent what they budgeted for 2008: $4 billion USD, accounting for +88% of total spending
  • Money to be entirely obligated by September 30, 2010
  • About HSBC Global Research: Research division of HSBC Global Banking and Markets which specializes in four core product areas – currency, economics, equities and fixed income – with a particular emphasis on emerging markets and climate change.
  • The Giant Wakes and ROARS: Progress and Potential of Energy Efficiency Policy in the U.S.

    1. 1. “ The Giant Wakes and ROARS ”: Progress and Potential of Energy Efficiency Policy in the U.S. Kateri Callahan, President Alliance to Save Energy February 17, 2010 Eilat- Eilot: International Renewable Energy Conference
    2. 2. Presentation Overview <ul><li>History of Energy Efficiency in the U.S. </li></ul><ul><li>Quiet but Working Hard for 30 Years </li></ul><ul><li>Awakening the Giant </li></ul><ul><li>Strong Federal Policies & Increased Investment </li></ul><ul><li>Unleashing the Full Potential of the Giant </li></ul><ul><li>Creating the Decade of Energy Efficiency </li></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>Organization: </li></ul><ul><li>Staffed by 60+ professionals </li></ul><ul><li>32 years of experience </li></ul><ul><li>$12 million annual budget </li></ul><ul><li>Recognized as premier EE organization in the world </li></ul>
    4. 4. What is the Alliance to Save Energy? <ul><ul><li>An Alliance of the Leading Voices from Business, Government, Academia, </li></ul></ul><ul><ul><li>Environmental and Consumer Groups </li></ul></ul><ul><ul><li>Governed by Strong Board of Directors </li></ul></ul><ul><ul><li>Chaired by Senator Mark Pryor (D-Ark.) and Peter Darbee, Pres./CEO of PG&E </li></ul></ul>
    5. 5. Working with and Across All Sectors of the Economy - 170 companies, organizations, and institution in Associates Program - Associates Program membership represents all economic sectors - Initiatives underway in research, policy advocacy, education, technology deployment, market transformation and communications
    6. 6. EE: Quietly Delivering for 3 Decades 4
    7. 7. Creates Enormous Savings <ul><li>AVOIDING roughly 2.5 billion tons of CO2 annually </li></ul><ul><li>Saving roughly $400 billion annually </li></ul>
    8. 8. Deploying EE in the U.S.: A Foundation of Public Policy <ul><li>To encourage technological innovation </li></ul>To gain foothold in market To achieve market penetration To lock in savings for consumers and businesses
    9. 9. “ Quiet Giant” Created Through State Leadership
    10. 10. National Policy Awakens the Giant EISA 2007: A marriage of… <ul><li>EPAct 2005: </li></ul><ul><li>EE provisions for: </li></ul><ul><li>Buildings </li></ul><ul><li>Transportation </li></ul><ul><li>R&D </li></ul><ul><li>Utilities </li></ul><ul><li>Tax Incentives </li></ul>
    11. 11. And Policies Matter! The Energy Use Outlook After EPAct and EISA
    12. 12. Candidate Obama: Energy Efficiency Advocate <ul><ul><ul><li>Reduce electricity use 15% by 2020 </li></ul></ul></ul><ul><ul><ul><li>Net-zero energy buildings by 2030 </li></ul></ul></ul><ul><ul><ul><li>Overhaul federal appliance standards </li></ul></ul></ul><ul><ul><ul><li>By 2014, reduce energy use in new federal buildings 45%; 25% in existing federal buildings </li></ul></ul></ul><ul><ul><ul><li>Flip incentives for utilities </li></ul></ul></ul><ul><ul><ul><li>Invest in a “smart grid” </li></ul></ul></ul><ul><ul><ul><li>Weatherize 1 million homes/year </li></ul></ul></ul><ul><ul><ul><li>Incentives for “livable cities” </li></ul></ul></ul>
    13. 13. Opening the Decade of Energy Efficiency Stimulus package President’s Fiscal Year 2010 budget President’s new CAFÉ standards January 2009 June July House Passes Climate Legislation Ongoing appropriations in House/Senate climate/energy bills DOE: new lighting standards October November Executive Order on federal energy use Outdoor Lighting standards HVAC standards agreement House Passes $75B “Jobs for Main Street” bill Bilateral agreement: U.S.-China Energy Efficiency Action Plan December COP15: Secretary Chu announces Climate REDI Program May
    14. 14. Source : Consortium for Energy Efficiency, 2009 Annual Report And Investment is Increasing!
    15. 15. Stimulus: $65B Related to Energy Efficiency Funding in Millions of US Dollars
    16. 16. EE: The Roar Grows Louder and Stronger! <ul><ul><li>A “headstart” on renewables and other climate-related business </li></ul></ul><ul><ul><ul><li>Global revenues from climate-related businesses rose by 75 percent in 2008 to $530 billion </li></ul></ul></ul><ul><ul><ul><li>Climate-related business revenue could exceed $2 trillion by 2020 </li></ul></ul></ul><ul><ul><ul><li>Energy efficiency recorded the highest investment return at 30% </li></ul></ul></ul><ul><ul><li>Keeping up the pace… </li></ul></ul><ul><ul><ul><li>Energy efficiency will receive $184 billion (53%) of the $350 billion in </li></ul></ul></ul><ul><ul><ul><li>global green stimulus funds </li></ul></ul></ul><ul><li>Source: HSBC Global Research Report, September 2009 </li></ul>
    17. 17. Roaring into the Decade: Forecast for U.S. Policy - 2010 <ul><li>Clean Energy Legislation w/ Strong EE </li></ul><ul><ul><li>Building Codes </li></ul></ul><ul><ul><li>Appliance Standards </li></ul></ul><ul><ul><li>Innovative Financing Mechanisms </li></ul></ul><ul><ul><li>Significant Funding from Allowances </li></ul></ul><ul><li>New Jobs Bill </li></ul><ul><ul><li>Loan Guaranties </li></ul></ul><ul><ul><li>Workforce Training </li></ul></ul><ul><ul><li>Residential Retrofit Rebates </li></ul></ul><ul><li>Significant FY 2011 Appropriations </li></ul><ul><li>Binding International Climate Treaties??? </li></ul>
    18. 18. Thank you! <ul><li>Contact information: </li></ul><ul><li>Kateri Callahan </li></ul><ul><li>[email_address] </li></ul><ul><li>+1-202-530-2219 </li></ul>