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The Obama Effect: Driving Energy Efficiency and Economic Recovery


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The 2009 American Recover and Reinvestment Act (ARRA) promises substantial funding for energy efficiency programs – to the tune of $26 billion – and many in the business of energy efficiency such as TAC are looking for ways to access its funding. In order to educate its employees and partners on the impact of the ARRA, TAC presented an educational webinar in which Callahan addressed the stimulus package, the Obama administration's impact on energy policies, and the role TAC can play in delivering energy related projects.

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The Obama Effect: Driving Energy Efficiency and Economic Recovery

  1. 1. The Obama Effect: Driving Energy Efficiency and Economic Recovery   Kateri Callahan, President The Alliance to Save Energy
  2. 2. Presentation Outline <ul><li>What is the Alliance to Save Energy? </li></ul><ul><li>New Administration, New Energy Policy </li></ul><ul><li>2009 Outlook for Economic Recovery </li></ul><ul><li>On the Horizon: Energy & Climate? </li></ul><ul><li>The Road Ahead – Leadership from the Nation’s Capitol </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>The Alliance is… </li></ul><ul><li>Staffed by 50+ professionals </li></ul><ul><li>31 years of experience in policy, research, education, communications, technology deployment and market transformation </li></ul>
  4. 4. Alliance Directors: Bi-Partisan Elected Officials and Industry Leaders <ul><li>Guided by a 37-Member, elected Board of Directors </li></ul><ul><li>Leaders of environmental, consumer and trade associations; state and local policy makers; corporate executives </li></ul>Jim Rogers, CEO Duke Energy Senator Mark Pryor (D-Ark.) Bi-partisan, bi-cameral Honorary Vice Chairs
  5. 5. Forging Alliances: Business, Government & Public Interests <ul><li>Sponsorship and participation of more than 150 organizations </li></ul><ul><li>Involvement by businesses in all economic sectors </li></ul><ul><li>Headquartered in Washington, D.C. with operations in several US states, Eastern Europe, South Africa, Mexico and India </li></ul>
  6. 6. Brief Post-Mortem on 2008 <ul><li>Energy Independence & Security Act (EISA), </li></ul><ul><li>P. L. 110-140; most sweeping energy bill enacted in over 30 years </li></ul><ul><li>Energy efficiency tax incentives were extended as part of the Troubled Assets Relief Program (&quot;TARP&quot;) P.L. 110-343 -- October, 2008 </li></ul><ul><li>Energy legislation adopted by House; Senate “Gang of Twenty” energy package developed </li></ul>
  7. 7. Inventing our Energy Future While Re-Building the Economy <ul><li>The imperative: </li></ul><ul><li>“… the future of our economy and national security are inextricably linked to one challenge: energy.” </li></ul><ul><li>The path forward: </li></ul><ul><li>“ To control our own destiny, America must develop new forms of energy and new ways of using it. This is not a challenge for government alone…It is a challenge for all of us.” </li></ul><ul><ul><ul><ul><li>President Barack Obama, December 15, 2008 </li></ul></ul></ul></ul>
  8. 8. President 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>Investment incentives for “livable cities” </li></ul></ul></ul>
  9. 9. The Energy ‘A-Team’: Obama’s Cabinet Ministers
  10. 10. The Energy ‘A-Team’, continued John Holdren, Assistant to the President for Science &Technology Dir. of the Science, Technology, & Public Policy Program at Harvard’s Belfer Center for Science and International Affairs <ul><li>Ken Salazar, Secretary of the Interior </li></ul><ul><li>Former Senator from Colorado and member of the Senate Energy Committee </li></ul><ul><li>Strong supporter of energy efficiency </li></ul>
  11. 11. “ Making Good” on Promises: Early Action (Jan 08) <ul><li>Directs DOT to establish higher fuel economy standards for vehicles by model year 2011 </li></ul><ul><li>Directs EPA to reconsider the bid by California and 13 other states to set tailpipe carbon dioxide emission standards requiring greater fuel economy. </li></ul><ul><li>Confirms intent to </li></ul><ul><ul><li>weatherize 2 million homes over the next two years; </li></ul></ul><ul><ul><li>make significant energy efficiency upgrades to 75 percent of federal buildings (savings of $2 billion in avoided energy costs); </li></ul></ul><ul><ul><li>double the country’s renewable energy resource base; and </li></ul></ul><ul><ul><li>create nearly 500,000 new “green jobs.” </li></ul></ul>
  12. 12. Building a Green Economy <ul><li>Showed early commitment to large green energy component in the economic recovery bill </li></ul><ul><li>Budget assumes revenues from an economy-wide cap-and-trade program to reduce greenhouse gas emissions, based on a carbon cap of 83% below 2005 levels in 2050 </li></ul><ul><ul><li>The climate program would generate nearly $650 billion between 2012 and 2019 </li></ul></ul><ul><ul><li>House hopes to consider a joint climate & energy bill by Memorial Day   </li></ul></ul>
  13. 13. Stimulus Parameters…
  14. 14. ~$75 Billion Potential for Energy Efficiency
  15. 15. American Recovery & Reinvestment Act of 2009 – $787 Billion Total <ul><li>~$20 billion primarily for energy efficiency </li></ul><ul><ul><ul><li>$3.1 State Energy Program (SEP) </li></ul></ul></ul><ul><ul><ul><li>$3.2 EE Conservation Block Grants </li></ul></ul></ul><ul><ul><ul><li>$4.5 Green Federal Buildings </li></ul></ul></ul><ul><ul><ul><li>$0.3 ENERGY STAR appliance rebate </li></ul></ul></ul><ul><ul><ul><li>$5 Weatherization (WAP) </li></ul></ul></ul><ul><ul><ul><li>$1.2 undesignated funding for RDD&D </li></ul></ul></ul><ul><li>In addition: transit, smart grid, ARPA-E, utility infrastructure, school/university facilities, workforce, tax incentives, bonding authority, loan guarantees </li></ul>
  16. 16. ARRA – The Main Recipients <ul><li>State Energy Offices </li></ul><ul><ul><li>SEP funding </li></ul></ul><ul><ul><li>As a BG “pass-through” to smaller municipalities / counties </li></ul></ul><ul><li>Municipal Governments </li></ul><ul><ul><li>68% of Block Grants to large cities by formula </li></ul></ul><ul><ul><li>Eligible “institutional entities” include muni utilities, schools </li></ul></ul><ul><li>Local Weatherization Agencies </li></ul><ul><li>General Services Administration (GSA) </li></ul><ul><li>DOD, DOL and EERE </li></ul>
  17. 17. ARRA – The Delivery Mechanisms <ul><li>DOE (both administrator and recipient) </li></ul><ul><ul><li>Has created a “special organization” to disperse </li></ul></ul><ul><ul><ul><li>Matt Rogers (of McKinsey Consulting) is leading this advisory team, which reports to Secretary Chu </li></ul></ul></ul><ul><ul><li>EDER </li></ul></ul><ul><ul><li>EERE </li></ul></ul><ul><ul><ul><li>EERE receives $3.5 B, of which $2.25 B earmarked for renewable energy and some EE </li></ul></ul></ul><ul><ul><ul><li>Gil Sperling is organizing DOE’s stimulus efforts for SEP and WAP from the Office of the Weatherization and Intergovernmental Program (OWIP) </li></ul></ul></ul>
  18. 18. ARRA – The Confusion <ul><li>“ Plan then do” – obviously not happening </li></ul><ul><li>“ Shovel ready”-projects vs. programs </li></ul><ul><li>Funds could begin flowing April, 2009 </li></ul><ul><li>Funds to be expended in 18-24 months </li></ul><ul><li>Test case for future climate legislation </li></ul><ul><li>How do we measure success? </li></ul>
  19. 19. Stimulus Opportunities <ul><li>The State Energy Program </li></ul><ul><ul><li>In FY 2008 received $44 million </li></ul></ul><ul><ul><li>Stimulus provided $3.1 billion </li></ul></ul><ul><ul><li>The National Association of State Energy Officials has a listing of energy programs that receive funding through SEP, from Colorado’s Rebuild Colorado program to Wyoming’s Energy Conservation Improvement program, both of which utilize performance contracting </li></ul></ul><ul><ul><li>Browse programs state-by-state at </li></ul></ul>
  20. 20. Stimulus Opportunities <ul><li>The Weatherization Assistance Program </li></ul><ul><ul><li>In FY 2008 received about $500 million </li></ul></ul><ul><ul><li>Stimulus provided $5 billion </li></ul></ul><ul><li>The WAP Technical Assistance Center ( provides a page of “Ramp Up Tools” to help the weatherization network respond to the funding influx </li></ul><ul><li>Other resources: </li></ul><ul><ul><li>National Association for State Community Services Programs ( ) </li></ul></ul><ul><ul><li>Weatherization Plus & Leveraging Resources: </li></ul></ul>
  21. 21. Stimulus Opportunities <ul><li>Federal-Level Resources </li></ul><ul><ul><li>General Services Administration received $4.5 billion to convert federal facilities into “High-Performance Green Buildings” </li></ul></ul><ul><ul><li>GSA’s Public Buildings Service houses the new Office of High-Performance Green Buildings </li></ul></ul><ul><ul><li>GSA Director of Expert Services Kevin Kampschroer will lead this effort </li></ul></ul><ul><ul><li> and </li></ul></ul>
  22. 22. General Services Administration funds: Alliance Recommends… From GSA funds for energy efficiency retrofits in federal buildings, take… $3 billion Federal Energy Management Program Projects that: <ul><li>Create the greatest impact through the use of energy and water efficiency and conservation and renewable energy across the federal government; </li></ul><ul><li>Are leveraged with private sector funds; and </li></ul><ul><li>Are comprehensive and used for the construction, repair and alteration of Federal buildings in compliance with Section 432 of EISA (42 U.S.C. Section 8253) (f) (1) through (f) (7). </li></ul>
  23. 23. Alliance Federal Energy Management <ul><li>The Alliance works with “ESCOs” and others to: </li></ul><ul><li>oversee, assess and suggest improvements to current energy management practices in federal government; </li></ul><ul><li>develop strategies and advocacy initiatives to improve and expand the current energy management practices in federal government facilities; and, </li></ul><ul><li>develop strategies, programs and/or advocacy initiatives to insure ESPC contract use across all federal, state and local government agencies. </li></ul>
  24. 24. FY09 Federal Energy Efficiency Programs Funding (in millions of dollars) Program FY08 Approp. FY09 Request FY09 House Request FY09 Senate Request FY09 Omnibus Change from 08 Approp. Change from 09 Request Building Tech 108.999 123.765 168 176.481 140 28% 13% Commercial Buildings Integration 11.891 13 33 40 Industrial Tech 64.409 62.119 100 65.119 90 40% 45% Federal Energy Management 19.818 22 30 22 22 11% 0% State Energy Program 44.095 50 50 50 50 13% 0% Weatherization Assistance 227.221 0 250 201.181 200 -12% State & Local Block Grants 295 50 Total Above EERE Programs 727.031 478.970 1378 857.781 775.238 7% 62% Energy Star EPA 48.236 44.221 55 55 4% 13%
  25. 25. “ New Funding”: Commercial Building Initiative <ul><li>Goals: </li></ul><ul><ul><li>2030: New construction Net-Zero </li></ul></ul><ul><ul><li>2050: Entire stock Net-Zero </li></ul></ul><ul><li>Broad government/industry consortium </li></ul><ul><li>Comprehensive approach (R&D deployment) </li></ul><ul><li>Coordinate (initiate) national and local actions </li></ul><ul><ul><li>Measure, benchmark, disclose energy performance </li></ul></ul><ul><ul><li>R&D for critical technologies and systems </li></ul></ul><ul><ul><li>Demonstrate scalable, replicable system solutions </li></ul></ul><ul><ul><li>Transform market: education/training, finance, appraisal, incentives, codes, buyer demand-pull </li></ul></ul>
  26. 26. On the Horizon… … More Energy Efficiency?
  27. 27. Energy and/or Climate Legislation in the 111th <ul><li>Senate to consider energy bill in March/April </li></ul><ul><li>House may introduce combined energy/climate bill </li></ul><ul><ul><li>Waxman’s goal is legislation by Memorial Day </li></ul></ul><ul><ul><li>Interest in National RPS/EERS (Markey has introduced bills) </li></ul></ul><ul><li>Obama FY 2010 anticipates “Cap & Trade” proceeds beginning in 2012 </li></ul>
  28. 28. <ul><ul><li>Advanced building energy codes </li></ul></ul><ul><ul><li>Energy Efficiency Resource Standard </li></ul></ul><ul><ul><li>Vehicle Rebate </li></ul></ul><ul><ul><li>Appliance Standards </li></ul></ul><ul><ul><li>Building Labeling Programs and/or Requirements </li></ul></ul>Alliance “Complementary” Policy Recommendations:
  29. 29. <ul><li>Alliance, together with other organizations, has developed recommendations for the next climate bill and is briefing Congressional staff </li></ul><ul><li>We are looking at evaluation, measurement and verification; third-party programs; how much should be spent on R&D </li></ul><ul><li>Despite economic woes, expectation that Congress will enact/President will sign climate legislation this year or next </li></ul>Alliance Climate Policy Recommendations
  30. 30. Climate Legislation Can Create Funding for RE & EE
  31. 31. The Future is Ours to Invent! <ul><li>In the Short Term: </li></ul><ul><ul><li>The U.S. Economy is Re-built on Development and Deployment of Clean Energy and Technologies </li></ul></ul><ul><ul><li>Energy Efficiency is the “First Tool” in the Arsenal for Fighting Climate Change </li></ul></ul><ul><li>In the Longer Term: </li></ul><ul><ul><li>U.S. Becomes the Most Energy-Efficient Economy in the World </li></ul></ul>
  32. 32. 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: Planning Committee: Organized by an International Steering Committee Marc Bitzer EVP, Whirlpool Corp. President, Whirlpool Europe Lena Ek MEP (Sweden) Nobuo Tanaka Executive Director, International Energy Agency Jean-Pascal Tricoire President and CEO, Schneider Electric Claude Turmes MEP (Luxembourg) Andreas Schierenbeck CEO, Building Automation, Siemens