22
Kateri Callahan, President Alliance to Save Energy Webinar: An Analysis of the State of Clean Energy Policy in the U.S. January 25, 2010 The Foundation for a Clean Energy Economy

Energy Efficiency: The Foundation for a Clean Energy Economy

Embed Size (px)

DESCRIPTION

Kateri Callahan joined leading experts from the Clean Energy Network and Apollo Alliance for an informative discussion on the current state of the American clean energy sector, the impacts of past and current policy initiatives, and challenges the sector will face in 2010 and beyond.

Citation preview

Page 1: Energy Efficiency:  The Foundation for a Clean Energy Economy

Kateri Callahan, PresidentAlliance to Save Energy

Webinar: An Analysis of the State of Clean Energy Policy in the U.S.January 25, 2010

Energy Efficiency: The Foundation for a Clean Energy Economy

Page 2: Energy Efficiency:  The Foundation for a Clean Energy Economy

Presentation Overview

A Few Words About the Alliance Energy Efficiency – Our Greatest

Resource Driving Energy Efficiency Through Policy:

A Formula for Success Kateri’s Crystal Ball: Forecasting Federal

Action on EE in 2010

Page 3: Energy Efficiency:  The Foundation for a Clean Energy Economy

What is the Alliance to Save Energy?

The Alliance to Save Energy

Policy Leaders

Environ-mental Groups

Academia

Business Leaders

Mission: To promote energy

efficiency worldwide to achieve a healthier economy, a cleaner environment, and greater energy security.

Organization: Staffed by 60+ professionals 32 years of experience $12 million annual budget Recognized as premier EE

organization in the world

Page 4: Energy Efficiency:  The Foundation for a Clean Energy Economy

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-Ark.) and Peter Darbee, President and CEO of

Pacific Gas and Electric- Includes 10 Members of Congress – Bi-Cameral; Bi-Partisan- Also includes environmental, consumer, and trade associations heads, state

and local policy makers, corporate executives

Page 5: Energy Efficiency:  The Foundation for a Clean Energy Economy

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

Page 6: Energy Efficiency:  The Foundation for a Clean Energy Economy

Why Energy Efficiency?30 years of savings…

0.8

3

4

8

23

24

40

50

0 10 20 30 40 50 60

Geothermal, Solar and Wind

Conventional Hydroelectric

Wood, Waste, Alcohol

Nuclear Electric Power

Coal

Natural Gas

Petroleum

Energy Efficiency and Conservation

Quads

America's Greatest Energy Resource Energy Efficiency and Conservation Improvements Since 1973

Have Reduced Annual Energy Consumption by 50 Quads

2007 Domestic Production Net Imports

Alliance to Save EnergyAugust 2008

Page 7: Energy Efficiency:  The Foundation for a Clean Energy Economy

Enormous Savings Energy Efficiency AVOIDING roughly 2.5

billion tons of CO2 annually

Saving roughly $400 billion annually

Page 8: Energy Efficiency:  The Foundation for a Clean Energy Economy

Public Policy Helped Deliver EE Into the U.S. Economy

Year Statute Residential Commercial Industrial Transport Electric Federal/StateGovernment

1975 Energy Policy and Conservation Act

§340 Industrial Equipment Efficiency

§321 CAFE for cars and light trucks

§381 Federal Conservation Programs;

1976 Energy Conservation and Production Act

Low-income home weather-ization; appl. eff stds

EPCA §361 State Energy Programs

1978 National Energy Act (NECPA, PURPA, PIFUA)

Energy efficiency tax credits

Energy efficiency tax credits

PIFUA PURPA §210, PIFUA

NECPA; EPCA §381, 382 Fed’l efficiency standards

1989 National Energy Conservation Policy Act

EPCA §321 Consumer Appliance Efficiency

EPCA §400 Alt fuel use in light duty vehicles

§210 Utility conservation program

EPCA §400 Federal fleet requirements; state program update; ESCOs

1992 Energy Policy Act of 1992

Model energy eff. building codes; appl and window stds

Comm office equipmt eff stds

§131 indust. efficiency grants

Utility energy efficiency grants

§157 Fedl energy training, audits, procurement

Page 9: Energy Efficiency:  The Foundation for a Clean Energy Economy

RD&D

Incentives

Education/Outreach

Codes/Standards

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

Page 10: Energy Efficiency:  The Foundation for a Clean Energy Economy

The EE Policy March Quickens

Year Statute Residential Commercial Industrial Transport Electric Federal/StateGovernment

2005 Energy Policy Act of 2005

§135 Appliance stds, 124 eff appliance rebates

Eff standards for commercial equipment

Fuel efficiency studies

Net-metering,Interconnect standards, PURPA relief

§101 Energy saving measures in Federal buildings

2007 Energy Independence and Security Act of 2007

Light bulb and consumer appliance standards

Institutional Grants and Loan; Zero-energy Comm Bldgs

EPCA §371 Industrial Waste Energy Recovery

§101, new CAFE Stds;

Title XIII, Smart Grid policy

§141 Fed fleet reqs; §431,521 high perf Fed bldgs; §541 EECGB

2009 ARRA (Stimulus Bill) Weatherization funding for low-income homes

Electric vehicle and battery funding

Smart grid funding; transmission study funding

State Energy Office Funding; EECGB Funding

Page 11: Energy Efficiency:  The Foundation for a Clean Energy Economy

EPAct 2005 and EISA 2007: Setting the Stage

EISA 2007: A marriage of…Vehicle

CAFE standards Appli

ance standards

Federal

energy

manageme

nt

Certain

building

standards

R&D progr

am authorizatio

ns

EPAct 2005:EE provisions for:- Buildings- Transportation- R&D- Utilities- Tax Incentives

Page 12: Energy Efficiency:  The Foundation for a Clean Energy Economy

And Policies Matter: The Outlook After EPAct and EISA

1952

1953

1954

1955

1956

1957

1958

1959

1960

1961

1962

1963

1964

1965

1966

1967

1968

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

0

20

40

60

80

100

120

140

160

180

200

Projected U.S. Energy Consumption

Actual 1973 Projection AEO 2005 AEO 2009

Page 13: Energy Efficiency:  The Foundation for a Clean Energy Economy

2009: A Big Year for Energy Efficiency in the U.S.

Stimulus package

President’s Fiscal Year 2010 budget

American Clean Energy and Security Act (ACES)

President’s new CAFÉ standards

May May MayJanuary

2009

JuneJuly

HOUSEPASSES ACES

(6/26)

Ongoing approps in House/Senate climate/energy bills

DOE: new lighting standards

October

October

November

Executive Order, EE in federal agencies

Outdoor Lighting standards

HVAC standards agreement

December

House Passes $75 Billion “Jobs for Main Street” bill

November

Bilateral agreement: U.S.-China Energy Efficiency Action Plan

December

COP15: Secretary Chu announces Climate REDI Program

June

Page 14: Energy Efficiency:  The Foundation for a Clean Energy Economy

American Recovery & Reinvestment Act: $65B Related to Energy Efficiency

Funding in Millions of US Dollars

Page 15: Energy Efficiency:  The Foundation for a Clean Energy Economy

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)

Page 16: Energy Efficiency:  The Foundation for a Clean Energy Economy

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. 

Page 17: Energy Efficiency:  The Foundation for a Clean Energy Economy

Energy and Climate LegislationAmerican Clean Energy Leadership Act (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)

American Clean Energy and Security Act 2009 (ACES) Passed House 26 June Standards + incentives to promote

clean energy tech Firm cap on GHG emissions Savings by 2030:

- 8.8 quads- $62B for consumers

($486/household)

Page 18: Energy Efficiency:  The Foundation for a Clean Energy Economy

The role of energy efficiency in climate legislation

Efficiency is the quickest, cheapest way to reduce energy consumption and lower greenhouse gas emissions

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)

Page 19: Energy Efficiency:  The Foundation for a Clean Energy Economy

ACES: EE Programs Complementary EE policies

Building codes and labeling programs Appliance standards Electric efficiency resource standard

Complementary EE Programs- EE in WM is 3-6% of allowance value

$81 to $167b over 2012-2050

- 12.5% of allowance value could get Allowance prices 10% lower Electric, nat gas and petrol prices 1-3% lower Electric and natural gas demand 3-7% lower

according to EPA analysis April 20

Page 20: Energy Efficiency:  The Foundation for a Clean Energy Economy

The Outlook Should Waxman-Markey Become U.S. Law

1952

1954

1956

1958

1960

1962

1964

1966

1968

1970

1972

1974

1976

1978

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

2014

2016

2018

2020

2022

2024

2026

2028

2030

0

20

40

60

80

100

120

140

160

180

200

Projected U.S. Energy Consumption

Actual 1973 Projection AEO 2005

AEO 2009 ARRA 2009 ACES

Page 21: Energy Efficiency:  The Foundation for a Clean Energy Economy

Forecast for U.S. Energy Efficiency Policy - 2010

Clean Energy Legislation w/ Strong EE - Building Codes- Appliance Standards- Innovative Financing Mechanisms- Significant Funding from Allowances

New Jobs Bill- Loan Guaranties- Workforce Training- Federal Transit & Fixed Guideways- Home Star??? Residential Retrofit- Building Star??? Residential Retrofit

Significant FY 2011 Appropriations International Accords & Binding International

Climate Treaties???

Page 22: Energy Efficiency:  The Foundation for a Clean Energy Economy

Thank you!

Contact information:Kateri Callahan

[email protected]