Delivering Energy Efficiency at Scale Through Public Policy
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USEA/USAID Global Energy Efficiency Workshop: Briefing on Energy Efficiency and DSM Programs Overseas Kateri Callahan President, Alliance to Save Energy Washington, D.C. March 8, 2010
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Delivering Energy Efficiency at Scale Through Public Policy
- 1. Kateri Callahan, President Alliance to Save Energy USEA Global Energy Efficiency Workshop March 8, 2010 Looking Ahead: 2010 and Beyond The Decade of Energy Efficiency
- 2. Presentation Overview A few words about the Alliance Why energy efficiency? Why Now? Delivering energy efficiency at scale: the public policy imperative Kateri’s “Crystal Ball”: Forecasting future U.S. action on energy efficiency Climate? Energy? Jobs?
- 4. 32 years of experience
- 5. $12 million annual budget
- 7. Led by Senator Mark Pryor (D-Ark.) and Peter Darbee, President and CEO of Pacific Gas and Electric
- 8. Includes 10 Members of Congress – Bi-Cameral; Bi-Partisan
- 10. Associates Program membership represents all economic sectors
- 12. 1 in Pakistan
- 13. 2+ pending in China
- 14. 5 more in Asia-Pacific region
- 15. 4 in Africa
- 16. 3 in Latin America (Mexico, Central America, Caribbean)
- 17. 1 in Ukraine
- 18. 1 in Eastern Europe/Eurasia region
- 20. USAID’s Energy Conservation and Commercialization III (ECOIII) Project
- 21. Renewable Energy and Energy Efficiency Partnership (REEEP) initiatives
- 23. China
- 24. China EE Windows Initiative
- 27. Africa
- 28. Watergy interventions in schools
- 29. UN Habitat Lake Victoria Region Climate Vulnerability Assessment
- 30. South Africa EE Buildings Training and Study Tour/Business Briefing
- 32. Synenergy (aka Regional Energy Security and Market Development)
- 33. Ukraine Municipal Heating Reform project
- 34. Latin America
- 35. Mexico, Central America, Caribbean Watergy
- 37. Through Alliance events, activities, outreach
- 38. The Alliance expanding to Australia (A2SE) and Europe (EASE)Ukraine industrial EE project Calderon accepts Alliance award MEP Ek presents at EE Global 09
- 40. Since 1997: has helped more than 100 cities
- 41. What does a Watergy Program involve?
- 46. Incorporating Energy Efficiency at the Design Stage of New Water Utilities andWastewater Systems WATERGYAROUND THE WORLD Lake Victoria Watergy project EE in Caribbean Water Utilities Watergy in South African schools
- 47. Why Energy Efficiency?America’s Greatest Energy Resource Reducing energy use, saving money, and powering the domestic economy for over 30 years:
- 48. Creates Enormous Savings AVOIDING roughly 2.5 billion tons of CO2 annually Saving roughly$400 billion annually
- 49. Public Policy Helped Deliver EE Into the U.S. Economy
- 50. Bending Down the Energy Demand Curve: Policies Matter
- 52. Accelerate fossil fuel depletion
- 53. Increase our reliance on foreign sources of energy
- 54. Economy:
- 56. Consumption projections for 2020 have gone down by 15%
- 57. While production projections for 2020 have remained constant
- 58. So: A Sunnier Outlook than in 2000…thanks to energy efficiency? 2000 and 2010 Projections Compared:
- 59. Source: McKinsey Global Institute Efficiency: Enormous Potential for Savings in ALL Sectors…
- 60. Energy efficiency should be fully considered in GHG reductions. All items to the left of the arrow represent “negative marginal costs” And: A No-Cost Way to Reduce GHG Emissions
- 61. BUT: Many “Non-Price” Barriers Uncertain costs? Energy Subsidies Choices SPLIT / INCENTIVES Externalities Lock-in Small savings Bounded Rationality Misinformation
- 63. To achieve market penetration
- 64. To gain foothold in marketTo encourage technological innovation
- 66. Net-zero energy buildings by 2030
- 67. Commitment to building U.S. clean energy economy
- 68. Commitment to address climate change
- 70. Investment incentives for “livable cities”President Obama: EE Advocate in Campaign
- 71. President Obama’s Energy Efficiency “Dream Team”
- 72. The “Dream Team” (cont.)
- 73. 12 months later – Opening the Decade of Energy Efficiency January 2009 May November October December June July House Passes $75B “Jobs for Main Street” bill Stimulus package Outdoor Lighting standards COP15: Secretary Chu announces Climate REDI Program House Passes ACES HVAC standards agreement Bilateral agreement: U.S.-China Energy Efficiency Action Plan President’s Fiscal Year 2010 budget Executive Order on federal energy use DOE: new lighting standards President’s new CAFÉ standards American Clean Energy and Security Act (ACES) Ongoing appropriations in House/Senate climate/energy bills
- 74. Stimulus: $65B Related to Energy Efficiency Funding in Millions of US Dollars
- 76. Smart Grid ($4.5 bill)
- 77. DOE RD&D ($2.25 billion)
- 78. Incentives
- 79. Extension and Increase in consumer EE tax incentives
- 81. “Conditions” State funding on strong building codes
- 83. State Energy Star rebate programs ($300 million)
- 84. Government Leadership by Example
- 87. Achieve 30% reduction in vehicle fleet petroleum use by 2020
- 88. Achieve 26% reduction in potable & 20% reduction in industrial, landscaping, & agricultural water consumption by 2020
- 89. Comply with new EPA storm water management guidance
- 90. Achieve 50% recycling & waste diversion by 2015
- 91. Requires that 95% of all applicable procurement contracts will meet sustainability requirements
- 92. Requires 15% of buildings meet the Guiding Principles for High Performance and Sustainable Buildings by 2015
- 93. Design all new Federal buildings which begin the planning process by 2020 to achieve zero-net energy by 2030 Executive Order 135814:Federal Leadership in Environmental, Energy, and Economic Performance October 5, 2009: President Obama signs EO 13514 For more information: www.femp.energy.gov 6
- 94. Kateri’s Crystal Ball: Forecasting U.S. Future Action on EE 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…..
- 96. In ACES, energy efficiency provisions alone would:
- 97. Save American households about $154 per year in 2025. (EPA)
- 98. Reduce carbon allowance price by 1.5 percent between 2015-2050. (EPA)
- 100. Kateri’s Crystal Ball:U.S. Energy Efficiency Policy in 2010 Clean Energy Legislation w/ Strong EE Building Codes Appliance Standards Innovative Financing Mechanisms Significant Funding from Allowances New Jobs Bill Loan Guarantees Workforce Training Federal Transit & Fixed Guideways Home Star??? Residential Retrofit Building Star??? Residential Retrofit Stagnant FY 2011 Appropriations International Accords & Binding International Climate Treaties???
- 102. Africa, Asia/Pacific, Europe, Latin America, North America
- 104. High-level – 40% of 2009 attendees self-identified as executives, and another 50% as managers
- 105. International –40 countries represented in 2009
- 106. Representative of all sectors – buildings, industrial, utilities, transportation, finance
- 107. Even split of government (28%), business (37%) and non-profit (28%) in 2007 & 2009Rep. Edward Markey James E. RogersChairman, President & CEO, Duke Energy Christopher B. Curtis President & CEO, N.A. Operating Div. & Buildings Business, Schneider Electric Robert J. DixonSr. VP & Global Head Efficiency & Sustainability, Building Automation, Siemens Building Technologies Inc. David SzczupakEVP, Global Product Organizations, Whirlpool Corporation Nobuo TanakaExecutive Director, IEA Sen. Mark Pryor
- 108. Questions?Thank you! Contact information: Kateri Callahan kcallahan@ase.org +1-202-530-2219
Editor's Notes
- Speaking role: Keynote Presentation: “Overview of U.S. Energy Efficiency Experience and Future” at USEA’s Global Energy Efficiency Workshop Length:1 hour total: 30 minutes presentation + 30 minutes questions/discussionAudience: around 20 people, including staff from USEA but mostly from USAID’s Office of Energy. The USAID folks will be representing about 10 different countries or regions (including Brazil, Mexico, Asia, Philippines, Botswana, Namibia, South Africa, Tanzania) and will be very familiar with energy issues. A handful of them work on EE programs in their countries; most of the others with directly government energy efficiency offices in their countriesWhat they’re asking you to present on: the history/evolution of EE in the U.S.; what are some major achievements? Who are some leaders? Where are we today and where are we going? We can also touch on the Alliance’s international work (as nearly the entire audience will be from developing countries), but really, they want an overview of what has been done in the U.S., the paths taken by the public and private sectors to advance EE, and where the U.S. is going
- The crystal ball is animated
- SEE ATTACHED “cheat sheet” on international projects (in case of questions, further explanation, etc.)
- These slides are animated
- In the 2000 Annual Energy Outlook, the projected consumption for 2020 was 120.95 quads. In the 2010 AEO, the projected consumption for 2020 was 105 quads – a reduction of about 15 percent.
- From Research Team:This may call attention to the role of EE (well, and the recession) in reducing demand.
- Holdren is also Dir.of White House Office of Science and Technology Policy; Co-Chair of President’s Council of Advisors on Science and Technology
- (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 products2. 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 involved3. 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 projectsABOUT 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.
- Money to be entirely obligated by September 30, 2010
- Slide content borrowed from Richard Kidd, FEMPRequires agencies to:Set GHG reduction targetsDevelop Strategic Sustainability Plans and provide in concert with budget submissionsConduct bottom up Scope 1, 2 and 3 baselinesTrack performance
- Efficiency alone has the potential reduce up 23 percent (9.1 quadrillion BTUs) of projected energy demand in 2020. (McKinsey)Reduced costs: Efficiency provisions in ACES would reduce average household energy expenditures by8 percent in 2025, compared to costs under ACES without them, saving American households about$154 per year. (EPA)Efficiency provisions in ACES will reduce the cost of carbon allowances by 1.5 percent between 2015-2050. (EPA)Increased jobs:Efficiency provisions in ACES alone will create up to 569,000 new jobs nationwide in 2015. (Center for American Progress)