Changing the Game

Energy Efficiency Policy in the Obama Administration

Kateri CallahanPresident, Alliance to Save Energy

Presentation Overview

A Few Words about the Alliance Building to Today – EE Before Obama Obama Administration – the “Game Changer” The Road Ahead – Forecast for U.S. Climate

and EE Policy

What is the Alliance to Save Energy?

The Alliance to Save Energy promotes energy efficiency worldwide to achieve a healthier economy, a cleaner environment and greater energy security.

- Non-profit organization headquartered in U.S.; operations world-wide- Led by Senator Mark Pryor (D-AR) and Jim Rogers, CEO of Duke Energy - Includes 10 Members of Congress – Bi-Cameral; Bi-Partisan- Also includes environmental, consumer, and trade associations heads, state

and local policy makers, corporate executives

Jim Rogers, CEO Duke Energy

Senator Mark Pryor (D-Ark.) Bi-partisan, Bi-cameral Honorary Vice Chairs

What is the Alliance?Business ▪ Government ▪ Public Interests

Sponsorship and participation of more than 160 organizations Involvement by businesses in all economic sectors Initiatives underway in research, policy advocacy, education, technology deployment, and

communications

Deploying EE in the U.S.: A Foundation of Public Policy

To encourage technological innovation

To gain foothold in market

To achieve market penetration

To lock in savings for consumers and businesses

Obama: Building on Recent Gains in Energy Efficiency

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 2030:

- Reduce U.S. energy use by 7%- Reduce electricity demand by 5%- Reduce oil use by 10%- Reduce CO2 emissions by 9%

– Reduce electricity use 15% by 2020– Net-zero energy buildings by 2030

–Commitment to large green energy component in the economic recovery bill

–Strong commitment to climate legislation 

–Investment incentives for “livable cities”

President Obama: EE Advocate in Campaign

10 months later….Sticking to his word on EE?“No single issue is as imperative to the economy as energy”

(January 2009)

An impressive track record- New Budget

- Stimulus package- Climate/energy bills- Executive Orders- New Agreements with China

A Big Year for Energy Efficiency in Public Policy

Obama’s election platform

Stimulus package

President’s Fiscal Year 2010 budget

American Clean Energy and Security Act (ACES)

President’s new CAFÉ standards

2008/2009

October

08 MayMay

MayJanuary

2009

JuneJuly

House PASSES ACES (6/26)

Ongoing approps in House and Senate climate & energy bills

DOE: new lighting standards

October

October

November

Executive Order, EE in federal agencies

Outdoor Lighting standards

HVAC standards agreement

President Obama’s FY 2010 Budget: A+ in EE

108% Increase Over FY 2009 Request, including:

$10 million increase for the industrial sector $98 million increase in the Department of Energy’s (DOE) Building Technologies Program

–includes $10 million for building energy codes.  $10 million for the Federal Energy Management Program$25 million increase for the State Energy Programincreases for DOE’s ENERGY STAR program, commercial buildings, residential buildings, R&D, and equipment standards. 

Stimulus: $65B Related to Energy Efficiency

Funding in Millions of US Dollars

Projected EE Funding, 2006-2012

ARRA: Built on the Five Pillars of Good Public Policy

RD&D – Smart Grid ($4.5 bill)– DOE RD&D ($2.25 billion)

Incentives– Extension of tax incentives

Codes & Standards– “Conditions” State funding on strong building codes

Education & Outreach– State Energy Star rebate programs ($300 million)

Government Leadership by Example– Federal “High-Performance Green Buildings” ($4.5 billion)

Leadership by Example October 2009, Executive Order:

- Use federal buying power to motivate vendors, contractors, and others in the federal supply chain to take their own actions to limit greenhouse gas emissions in production, operations, and transport

- Make public the annual “scorecard” results for each agency – an important step towards public accountability and ensuring that the provisions of the order remain as priorities for federal agency managers.

- Re-institute the Presidential Leadership Awards, an important step in underscoring the president’s priority on individual and agency leadership in energy efficiency and sustainability within the federal government.

- Create sustainability officers for each agency.

On the Horizon…

…More Energy Efficiency? Can Obama take U.S. there?

“Our Future is What We Build it to Be”- President Barack Obama

*$65 Billion in Stimulus Available for EE*Weatherize 1 million homes/year*Improve efficiency of federal buildings*Control carbon emissions*Create hundreds of thousands of “green

jobs”

• The end of “Politics as Usual”?• Redefining “Business as Usual”

The “Game Changer”: Obama as EE Champion

Energy and Climate Leg.ACELA

Passed Senate ENR Comm. 17 June

Energy bill similar to ACES, but with no cap-and-trade provisions

Savings by 2030:4.3 quads$36B for consumers($240/household)

CEJAPAIntro by Sens. Kerry

and Boxer 23 Oct.Firm cap: 20%

reductions 2020;80% by 2050 from 2005 levels

Expected to be combined with ACELA before floor consideration

ACES 2009

Passed House 26 JuneStandards + incentives

to promote clean energy tech, firm cap on GHG emissions

Savings by 2030:8.8 quads$62B for consumers ($486/household)

The role of energy efficiency in climate legislation

Energy efficiency is used as a cost containment and new jobs tool

In ACES, energy efficiency provisions alone would: Save American households about $154 per year in 2025.

(EPA)

Reduce carbon allowance price by 1.5 percent between 2015-2050. (EPA)

On the whole, ACES would create on average 120,000 new energy efficiency jobs nationwide each year between 2012-2020.(Center for American Progress)

Climate & Energy Bill Outlook Senate

- Has Adopted Energy “Piece” - Will consider climate “Piece” in early 2010

House- Adopted Climate & Energy bill in June

Additional Support for Energy Efficiency in legislation- Significant Funding through CO2 Allowances (House bill)- Building Labeling Programs (both)- Utility Energy Efficiency Resource Standards (both)- Innovative Finance Programs (both)- Appliance Standards (both)- And much more…..

On Cap-and-Trade

Source: Navigant Consulting, Price Signals and Greenhouse Gas Reduction in the Private Sector, 2009, p.5.

On Copenhagen and International Accords

“Our aim is not a partial accord or political declaration, but rather an accord……has immediate operational effect.” President

Barack Obama in China yesterday.

China Clean Energy Agreements Include:

$150M Clean Energy Research Center

EE Action Plan

Mayors Sustainable Cities Program

Annual Energy Efficiency Forum

Codes and Standards Harmonization

Forecast for U.S. Energy Efficiency Policy

Climate Change Legislation with Strong EE Components- Building Codes- Appliance Standards- Innovative Financing Mechanisms- Significant Funding from Allowances

“Evergreen” Stimulus Funding- Revolving Loan Funds- Workforce Training

Continued Federal Investment- Federal Energy Management- RD&D- Tax Incentives

Binding International Climate Treaties

Business, programmatic and technical experts will highlight and discuss best practices for employing energy efficiency to reduce emissions while maintaining, if not improving, bottom-line corporate and economic growth. Case studies from both developed and developing countries will be analyzed.

Panel chairs: Lena Ek, MEP SwedenClaude Turmes, MEP Luxembourg

Speakers: Eelco van Heel, CEO, Rockwool International A/SAndreas Schierenbeck, CEO Siemens Building Tech...and senior level speakers from:Honeywell, Schneider Electric, Google, USGBC, and NRDC

Thank you!

Kateri CallahanPresident, Alliance to Save Energy

kcallahan@ase.org+1-202-530-2219