Coloring the Economy:A Challenge to go Beyond “Green”

QUALITY TRANSIT -- NOW

2009 Annual Meeting

Kateri Callahan, PresidentOctober 7, 2009

Overview

A Few Words About the Alliance Government Imperatives

Why a “Green Economy” & Why Now?Why Energy Efficiency?

Government Policy – Shaping the Economy Today and

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- Board led by Senator Mark Pryor (D-AR) and Jim Rogers, CEO of Duke

Energy - Includes 9 Members of Congress – Bi-Cameral; Bi-Partisan- Also includes environmental, consumer, and trade association heads, state

and local policy makers, corporate executives

Forging AlliancesBusiness ▪ 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

RATE YOUR FAVORITE AT www.drivesmarterchallenge.org

Access “A Smarter GPS” at http://www.drivesmarterchallenge.org/contest/

“A Perfect Storm”: Energy Use = Security Issue

‘Perfect’ Storm: Energy Use = Climate Issue

Share of Global Energy-Related CO2 Emissions by Country (2005)

China, 19%

Russia, 6%

Japan, 4%

India, 4%

Western Europe, 13%

,

Others, 32%

US Other Sectors, 13%

US Buildings, 8%

Source: Energy Information Administration

A ‘Perfect’ Storm: Energy Use = Public Issue

40% of Americans say global warming is a major threat

75% Want federal regulation of GHGs

80% (Who want regulations) would pay more for energy

Why EE? Enormous & Cost-Effective Potential

Source: McKinsey Global Institute

Changing TidesEISA 2007: A marriage of…

Vehicle CAFE standards

Appliance standards

Federal energy

management

Certain building

standards

R&D program authorizations

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

With results….• 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 2020 (2030):– Reduce U.S. energy use by 4% (7%)– Reduce electricity demand by 4% (5%)– Reduce oil use by 5% (10%)– Reduce CO2 emissions by 5% (9%)

Estimates from the American Council for an Energy-Efficient Economy, Alliance to Save Energy

A Big Year for Energy Efficiency in Public Policy

Obama’s election platform

American Recovery & Reinvestment Act (ARRA, or Stimulus Bill)

President’s Fiscal Year 2010 budget

NEW! American Clean Energy and Security Act (ACES)

President’s new CAFÉ standards

2008/2009

October 0

8

May May MayJanuary 09

JuneJuly

House PASSES ACES (6/26)

Ongoing appropriations in House and Senate climate & energy bills

DOE: new lighting standards

President Obama’s “Dream Team”Carol Browner, Assist. to President for Energy and Climate Change (“Energy Coordinator”, “Energy Czar”)

EPA Administrator from 1993 to 2001

Lisa P. Jackson, Administrator, EPAChief of Staff to the Governor and Commissioner of the New Jersey Department of Environmental Protection (NJDEP).

Steven Chu, Secretary of Energy Director of the Lawrence Berkeley National LaboratoryRecipient of 1997 Nobel Prize in Physics

Nancy Sutley, Chair of White House Council on Environment Quality Deputy Mayor for Energy and Environment for Los Angeles, California

Ken Salazar, U.S. Secretary of the Interior• Senator (D-Colo.)• Attorney General (State of Colorado)

Hillary Clinton, U.S. Secretary of State• Senator (D-N.Y.)

General Jim Jones, National Security Advisor• Executive Director, Institute for 21st Century Energy, an affiliate of U.S.

Chamber of Commerce• 4-star general in U.S. Marine Corps.

John Holdren, Assistant to the President for Science and Technology• Director of Science, Technology and Public Policy Program at Harvard

University’s Belfer Center for Science and International Affairs

The “Dream Team” (cont.)

Stimulus: $65B Related to Energy Efficiency

Funding in Millions of US Dollars

ACES: Allowance Allocations by program

Calculations based on allocations in the Waxman-Markey substitute amendment & total allowance values from EPA’s Preliminary Analysis of the Waxman-Markey discussion draft.

Does not include noncompulsory utility funding for energy efficiency, revenues from the renewable electricity standard or separate authorizations.

3%to 6% of total funding could support energy efficiency

Source: Alliance analysis based on HR 2454 and EPA Preliminary Analysis of the Waxman-Markey Discussion Draft, April 20, 2009

ACES: State & Local Governments

• ACES directs DOE to establish “State Energy & Environmental Development” (SEED) Accounts to be used for EE and RE programs;

• Over the life of the program, an average of 5.2% of total allowance value is directed to SEED;

• Average annual funding for EE from this provision could be as low as $762 million or as high as $3.05 billion;

• Largest dedicated source of EE funds

Federal Public Transit Funding• In ARRA (the stimulus package)…

– $6.9 billion in transit capital assistance– $1.5 billion for capital investments in surface transportation infrastructure

(includes New Starts and Small Starts projects and passenger and freight rail transportation projects

– $8 billion for capital assistance for high-speed rail corridors and Intercity Passenger Rail Service

– $1.3 billion for Amtrak

• In ACES…– 2015 up to $531 million– 2030 up to $369 million– 2050 up to $287 million– Cumulative, 2012-2050 up to $15.4 billion

The role of EE 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)

Looking ahead...

Source: Duke University Study, April 2009

Average VMT vs. Gas Price, 2002-08

Source: Duke University Study, April 2009

Aggregate Transit Ridership vs. Gas Price, 2002-08

Answering the Climate Challenge

ACES: Transportation• Light duty vehicle emission standards • Emission standards for trucks, trains, ships,

and airplanes• Require states to set emissions reduction goals

and large MPOs to set plans that meet them.

“Green” becomes “Business as Usual”

Report: “Real Transportation Solutions for Greenhouse Gas Emissions Reductions” The American Association of State Highway and Transportation Officials

“You'll know the green revolution has been won when the word ‘green’ disappears.”

- Tom Friedman, NYT Columnist

THANK YOU!

Kateri CallahanPresident

Alliance to Save Energykcallahan@ase.org