Energy Efficiency: The First st Fuel for the 21 Century CSIS High Impact Energy Efficiency March 22, 2011 Kateri Callahan, President
Presentation Overview A few words about the Alliance Looking Back: A quiet history of HUGE success
Going Forward: A world of need & opportunities Seizing the Day: A look at now Building the Future: Energy Efficiency as the “First Fuel” for the 21st Century
What is the Alliance to Save Energy? Mission:
To promote energy efficiency worldwide to achieve a healthier economy, a cleaner environment, and greater energy security.
Organization:
Staffed by 80+ professionals 33 years of experience $15 million annual budget Headquartered in Washington D.C. with world-wide operations
Policy Leaders
Business Leaders
The Alliance to Save Energy
Academia
Environmental Groups
Who is the Alliance to Save Energy? - Board of Directors led by Senator Jeanne Shaheen (D-NH) as Honorary Chair -
and Peter Darbee, Chairman of the Board, CEO and President, PG&E Corporation, as Co-Chair Includes 13 Members of Congress – Bi-Cameral; Bi-Partisan Also includes environmental, consumer, and trade association heads, state and local policy makers, corporate executives
Who is the Alliance to Save Energy? 171 companies, organizations, and institutions in Associates Program Associates Program membership represents all economic sectors Initiatives underway in research, policy advocacy, education, technology deployment, market transformation and communications
A Quiet History of Huge Success Energy Efficiency and Conservation Improvements Since 1973 Have Reduced Annual Energy Consumption by 52 Quads in 2008 Energy Efficiency and Conservation
52 37
Petroleum 24
Natural Gas Coal
22
8
Nuclear Electric Power 4
Biomass
2
Conventional Hydroelectric 1
Geothermal, Solar and Wind 0
10
Energy Efficiency and Conservation
20
30 Quads
2008 Domestic Production
Alliance to Save Energy, June 2009
40
50
Net Imports
60
Deploying EE at Scale Requires: A Foundation of Public Policy Codes/Standards
Education/Outreach
Incentives
RD&D
To encourage technological innovation
To achieve market penetration
To gain foothold in market
To lock in savings for consumers and businesses
Public Policy Helped Drive EE Into the U.S. Economy Residential
Year
Statute
1975
Energy Policy and Conservation Act
1976
Energy Conservation and Production Act
Low-income home weatherization; appl. eff stds
1978
National Energy Act (NECPA, PURPA, PIFUA)
Energy efficiency tax credits
1989
National Energy Conservation Policy Act
EPCA §321 Consumer Appliance Efficiency
1992
Energy Policy Act of 1992
Model energy eff. building codes; appl and window stds
Commercial
Industrial
Transport
§340 Industrial Equipment Efficiency
§321 CAFE for cars and light trucks
Electric
Federal/State Government §381 Federal Conservation Programs;
EPCA §361 State Energy Programs
Energy efficiency tax credits
PIFUA
EPCA §400 Alt fuel use in light duty vehicles
Comm office equipmt eff stds
§131 indust. efficiency grants
PURPA §210, PIFUA
NECPA; EPCA §381, 382 Fed’l efficiency standards
§210 Utility conservatio n program
EPCA §400 Federal fleet requirements; state program update; ESCOs
Utility energy efficiency grants
§157 Fedl energy training, audits, procurement
Public Policy Helped Drive EE Into the U.S. Economy Year
Statute
Residential
Commercial
2005
Energy Policy Act of 2005
§135 Appliance stds, 124 eff appliance rebates
Eff standards for commercial equipment
2007
Energy Independence and Security Act of 2007
Light bulb and consumer appliance standards
Institutional Grants and Loan; Zero-energy Comm Bldgs
2009
ARRA (Stimulus Bill)
Weatherization funding for lowincome homes
Industrial
EPCA §371 Industrial Waste Energy Recovery
Transport
Electric
Federal/State Government
Fuel efficiency studies
Net-metering, Interconnect standards, PURPA relief
§101 Energy saving measures in Federal buildings
§101, new CAFE Stds;
Title XIII, Smart Grid policy
§141 Fed fleet reqs; §431,521 high perf Fed bldgs; §541 EECGB
Electric vehicle and battery funding
Smart grid funding; transmission study funding
State Energy Office Funding; EECGB Funding
Public Policy Matters Projected U.S. Energy Consumption 200
180
160
140
120
100
80
60
40
20
Actual
1973 Projection
AEO 2005
AEO 2009
2027
2022
2017
2012
2007
2002
1997
1992
1987
1982
1977
1972
1967
1962
1957
1952
0
billion tonnes of oil equivalent
Going Forward: Global Energy Demand is Growing
Source: IEA, World Energy Outlook 2009
Going Forward: Energy Use Impacts National Security
Source: U.S. EIA Annual Energy Outlook 2011 Early Release Overview
Going Forward: Energy Use Impacts Consumers It’s a pocketbook Issue.
4.5
4
July 7, 2008: $4.11/gallon March 14, 2011: $3.57/gallon
3.5
Dollars per gallon
3 2.5 2 1.5 1 0.5 0
Dec. 29, 2008: $1.59/gallon
Going Forward: Energy use impacts the economy
Going Forward: Enormous Potential for Energy Efficiency Remains
Source: McKinsey Global Institute
Seizing the Day: Investment Underway
EE in the ARRA: Up to $65b towards efficiency
Seizing the Day: A Big Step Forward? S. 398 “Implementation of National Consensus Appliance Agreements Act of 2011”
Introduced by Senators Bingaman (D-NM) and Murkowski (R-AK) EE standards for residential appliances; heating, cooling and water heating equipment; drinking water dispensers; hot food holding cabinets and portable electric spas Potential electricity savings equivalent to 4.6 million homes/year by 2030 Potential net economic savings of $43 billion through 2030
Seizing the Day: Or a HUGE Step Back? S. 395 (Sen. Mike Enzi R-WY) & H.R. 91 (Rep. Joe Barton R-TX) Better Use of Light Bulbs Act (BULB Act) S. 395: 27 co-sponsors Senate Hearings held March 10th H.R. 91 54 co-sponsors Referred to House Subcommittee on Energy & Power Loss of $15.8 Billion/yr. in Energy Savings ($200 per family)
Seizing the Day: A Big Step Forward? President’s Proposed FY 2012 Budget Highlights: Doubles Investment in Energy Efficiency
Better Buildings Initiative: EE upgrades to commercial buildings and save building owners and operators roughly $40 billion each year for the next decade Energy Star: increase of $3 million to $56 million for enhanced compliance and verification of Energy Star products Re-authorize the Clean Energy Manufacturing Tax Credit Clean Energy Standard
Seizing the Day: or A Big Step Back?
HR 1: $786 Million in cuts to EERE
$10.5 Million in cuts to Energy Star Prohibit funds for the Weatherization Assistance Program and the State Energy Program
CR 1: cuts $292 from EERE CR 2: cuts to GSA Public Buildings Fund
Seizing the Day: Leadership by Example E.O. 13514: Federal Leadership in Environmental, Energy and Economic Performance
30% reduction in vehicle fleet petroleum use by 2020; 26% improvement in water efficiency by 2020; 50% recycling and waste diversion by 2015; 95% of all applicable contracts will meet sustainability requirements; Implementation of the 2030 net-zero-energy building requirement; Implementation of the stormwater provisions of the Energy Independence and Security Act of 2007, section 438, and; Development of guidance for sustainable Federal building locations in alignment with the Livability Principles put forward by the Department of Housing and Urban Development, the Department of Transportation, and the Environmental Protection Agency.
Seizing the Day: European Efforts EPBD: European-Wide EE efforts: Methodology for calculating integrated building energy performance
EcoDesign Directive Minimum Standards on new and existing buildings
Energy Performance of Buildings (EPBD) Directive Energy certification of new and existing buildings
Regular inspection of boilers, A/C systems, etc.
Action Plan for Energy Efficiency
Building Global EE Capacity EU Plan for Energy Efficiency
EU-ASE Founding Members Founding Board of Directors Honorary Members
Niels Bjorn Christansen Chief Executive Officer Bendt Bendtsen Danfoss
Tony Robson Chief Executive Officer Knauf Insulation
Member of European Parliament Denmark
Sumir Karayi CEO 1E
Andreas Schierenbeck President Peter Liese Building Technologies Divison Siemens Industry, Inc. Member of European Parliament
Germany
Sergio Andreis Director Kyoto Club
Patty Fong Chief Operating Officer European Climate Foundation
Claude Breining Head of European Affairs and Standardization Strategy Schneider Electric
President
Claude Turmes Member of European Parliament Luxembourg
Lena Ek Member of European Parliament Sweden Monica Frassoni
Looking ahead: Policy Advocacy in 2011 Energy Efficiency Portable Package or Stand Alone Appliance Standards Building Energy Codes SAVE Act Tax Incentives Home Star Building Star EERs or CES with EE as full compliance option
Energy Efficiency Appropriations at or above the President’s request EPA Regulations advance Energy Efficiency
But, a long way to go! Table: Total Primary Energy Consumption per Capita 400
300 250
200
EE can take us there! United States
150
Japan
100 50
0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006
Million Btu per Person
350
Thank you! Kateri Callahan
[email protected] +1-202-530-2219