Energy Efficiency – Good for the World’s Economy; Good for the Nation’s Economy; and, Good for Yours !

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Energy Efficiency Good for the Worlds Economy; Good for the Nations Economy; and, Good for Yours !. Presentation by Kateri Callahan, President Charlotte Regional Partnership Investors Forum July 29, 2009. A Few Words About the Alliance Why Energy Efficiency? Why Now? - PowerPoint PPT Presentation

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<p>Energy Efficiency: Meeting the Challenge &amp; Fueling A Better Built Environment</p> <p>Energy Efficiency Good for the Worlds Economy; Good for the Nations Economy; and, Good for Yours!Presentation byKateri Callahan, PresidentCharlotte Regional Partnership Investors ForumJuly 29, 2009OverviewA Few Words About the Alliance Why Energy Efficiency? Why Now?Policy: Tapping the Full Potential of Energy EfficiencyRegional/State Leadership: Building Green Economies One by One Forecast for the Future: Energy Efficiency as the Foundation of a New, Green EconomyWhat is the Alliance to Save Energy? A unique NGO formed and still led by Members of Congress</p> <p>Guided by a 37-Member, Elected Board of DirectorsLed by Senator Mark Pryor (D-AR) and Jim Rogers, CEO of Duke Energy Includes 9 Members of Congress Bi-Cameral; Bi-PartisanAlso includes environmental, consumer, and trade associations heads, state and local policy makers, corporate executives</p> <p>Forging Alliances: Business, Govt. &amp; Public Interests</p> <p> 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</p> <p>Energy Efficiency: Faithful Friend</p> <p>Energy Efficiency has been powering the U.S. economy for over 30 years! Enormous SavingsEnergy Efficiency AVOIDING roughly 2.5 billion tons of CO2 annually </p> <p>Saving roughly $400 billion annually</p> <p>Why Now? Energy Use is a Global Climate Issue </p> <p>Source: Energy Information AdministrationWhy Now? Growing Energy Demand is Unsustainable Global demand grows by more than half over the next quarter of a century, with coal use rising most in absolute terms024681012141618198019902000201020202030billion tonnes of oil equivalentOther renewablesBiomassHydroNuclearGasOilCoal024681012141618198019902000201020202030billion tonnes of oil equivalentOther renewablesBiomassHydroNuclearGasOilCoalWhy Now? U.S. Growth in Energy Use Poses a National Security Threat</p> <p>Why Now: Energy Efficiency is a Pocketbook Issue</p> <p>Why Efficiency? Cheapest, Quickest, Cleanest.Annual world-wide investment of $170 billion in energy efficiency through 2020 could:</p> <p> cut global growth in energy demand by !save $900 billion a year in avoided energy costs dramatically reduce greenhouse gas emissions </p> <p>Source: The McKinsey Global Institute</p> <p>Why EE? Enormous Potential for Savings in ALL Sectors</p> <p>Source: McKinsey Global Institute</p> <p>12The good news is that there is a very large opportunity to contain energy demand growth in an economically attractive way. By capturing the potential available from existing technologies with an internal rate of return of 10 percent or more, we could cut global energy demand growth by half or more over the next 15 years. In other words, global energy demand in 2020 would decline by an amount equal to almost 150 percent of the entire US energy consumption today. Why Efficiency? Local Benefits</p> <p>Example: Appalachia Region (area covered includes NC and 1/5 SC)A study by Alliance sister organization, the Southeast Energy Efficiency Alliance, for the Appalachian Regional Commission shows that a bold energy efficiencyinitiative could cutconsumption by 11 percent to 8.2 quadsin 2020 and by 24 percent to 7.7 quads in2030.Energy Efficiency in Appalachia: How Much is Available, at What Cost, a13EE: Enormous Potential for Regional Job Growth</p> <p>The same study reveals that cost-effective energypolicies can positively impact the larger Appalachia economy, creating 77,378 jobs regionally. The Challenge? Market DistortionsPrincipal Agent or Split IncentivesHome/Commercial builder versus buyerLandlord versus tenantUtility versus customerTransaction CostsLack of information on life-cycle cost for products and/or paybacks for upgradesLack of Investment in RD&amp;D and EE ProgramsHow Do We Unlock the Potential of Energy Efficiency?</p> <p>Five Tenants of Sound EE Public PolicyResearch, development and deployment (RD&amp;D) Education and outreach </p> <p>Incentives and Financing Mechanisms</p> <p>Standards &amp; Codes</p> <p>Government Leadership by Example </p> <p>A Big Year for Energy Efficiency in Public Policy Obamas election platformAmerican Recovery &amp; Reinvestment Act (ARRA, or Stimulus Bill) Presidents Fiscal Year 2010 budgetNEW! American Clean Energy and Security Act (ACES) Presidents new CAF standards2008/2009October 08MayMayMayJanuary 09JuneJuly House PASSES ACES (6/26)Ongoing appropriations in House and Senate climate &amp; energy bills DOE: new lighting standardsReduce electricity use 15% by 2020Net-zero energy buildings by 2030Overhaul federal appliance standardsBy 2014, reduce energy use in new federal buildings 45%; 25% in existing federal buildingsFlip incentives for utilitiesInvest in a smart gridWeatherize 1 million homes/yearInvestment incentives for livable citiesShowed early commitment tolarge green energy component in the economic recovery billPresident Obama: Energy Efficiency Advocate</p> <p>19American Recovery &amp; Reinvestment Act: $65B Related to Energy Efficiency</p> <p>Funding in Millions of US Dollars20ARRA: Built on the Five Pillars of Good Public Policy RD&amp;D Smart Grid ($4.5 bill)DOE RD&amp;D ($2.25 billion) Incentives and Financing ToolsExtension of tax incentivesPACE Bonds Codes &amp; StandardsConditions State funding on strong building codesEducation &amp; OutreachState Energy Star rebate programs ($300 million)Government Leadership by ExampleFederal High-Performance Green Buildings ($4.5 billion)</p> <p>Funding RolloutEnergy Funds Slow to Unroll:1% of FY2009 awards90% of FY2009 awards go to health, transportation and educationFunding allotted in segments:For SEP &amp; WAP:10% on initial app approval40% on comprehensive app approval Remaining 50% contingent on demonstrated success</p> <p>Projected timing of all funds made available to states and localities. </p> <p>http://www.recovery.gov/sites/default/files/GAO-09-580+Recovery+Act.pdfFY09 and FY12 funding for states and localities</p> <p>Core Energy FundingObligation &amp; Spending to dateSEPAppropriated: $3.1 billionObligated: $301.6 millionSpent: $9.4 millionEECBG Appropriated: $3.2 billionObligated: $0WAPAppropriated: $5 billionObligated: $553.4 millionSpent: $8.3 millionGreen JobsAppropriated: $500 millionObligated: $0Smart Grid Investment Grant ProgramAppropriated: $4.5 billionObligated: $0Smart Grid Demonstration ProjectsAppropriated: $615 millionAwarded: $4.7 millionSpent: $0HUDs EE Public Housing Capital FundsAppropriated: $4 billionAwarded: $0HUDs Green Retrofit ProgramAppropriated $250 millionObligated: $0$890 million of $18 billion awarded (.5%)23</p> <p>ARRA Funding for EENorth Carolina:State Energy Program (SEP)Appropriated: $76 millionAwarded: $30.4 million (June 25)Weatherization Assistance Appropriated: $132 millionObligated: $53 million (June 18th)Weatherization goal: 23,500 homesEnergy Efficiency and Conservation Block Grants*Appropriated: $ 58 millionSouth CarolinaState Energy Program (SEP)Appropriated: $51 millionAwarded: $20.2 million (June 25)</p> <p>Weatherization Assistance Appropriated: $59 millionObligated: $24 million (June 18th)Weatherization Goal: 6,500 homesEnergy Efficiency and Conservation Block Grants*Appropriated: $ 31 millionTotal Stimulus Funding for SEP, WAP, EECBG:NC: $266 millionSC: $139 millionState Energy ProgramNorth Carolina Awarded $30.4 million on June 25th (Appropriated $76 million)South Carolina Awarded $20.2 million on June 24th (Appropriated $51 million)Weatherization Assistance ProgramNorth Carolina Awarded $53 million on June 18th (Appropriated $132 million)South Carolina Awarded $24 million on June 19th (Appropriated $59 million)Energy Efficiency and Conservation Block GrantsEECBG funding is divided between state controlled funds (for the smallest municipalities) and local government funds. Only the State-controlled funds have been awarded. Local and country government applications are due August 10th. I couldnt find information on the state-controlled portion for either of these states. Presumably, they have been awarded but Im be sure.North Carolina - ??? (Appropriated $58 million)South Carolina - ??? (Appropriated $31 million)</p> <p>24StateEnergy Efficient BuildingsFinancing MechanismsBuilding Code Compli- anceGreen Jobs TrainingEducation and OutreachTransport-ationPerformance ContractingResidentialIndustrialCommercialState Revolving LoansGrantsCreditsArizonaxxxCaliforniaxxxxxxColoradoxxxxxxxGeorgiaxxxxxxIowaxxxxMainexxxMassachusettsxxMinnesotaxxMontanaxNew HampshirexxxxxNew YorkxNorth CarolinaxxxxxxSouth CarolinaxxxxxxxWest VirginiaxxxxState Energy Program PlansUpdated regularly on our stimulus resources page: www.ase.org/stimulusresources</p> <p>South Carolina:</p> <p>Public Institution Energy Improvements: $40,000,000Issue grants and no-interest loans to public institutions for energy efficiency projectsReduce energy use by 1% per year for five years, with a goal of 20% reduction by 2020South Carolina Energy Efficiency Training Center Collaborative: $910,000Increase amount of energy-related training provided to the labor force of the stateSmall Business/Utility Partnership for Energy Efficiency Equipment: $50,000Ensure small business participation in market transformation accelerated by the ARRALow-Income Manufactured Housing Retrofit &amp; Evaluation: $3,040,000Assess the efficacy of various energy conservation retrofits for low-income residents of manufactured housingWorks with South Carolinas WAP, Technical College System, Department of Commerce Workforce Program, and the Central Electric Cooperative of South CarolinaGoals:Weatherize 200 homesProvide efficient roof retrofits on 200 homesRetrofit 200 homes with efficient heat pumps and install ENERGYSTAR appliance upgrades in 200 homesSophisticated power monitors installed in 400 homes to assess the energy efficiency value in residencesSouth Carolina Clean Green Investment Incentives$3,000,000Assist new or expanding industrial or commercial businesses which are creating new jobs and providing additional capital investment in the state. Encourages manufacturers of energy efficiency and renewable energy products to locate in South Carolina and helps such existing industries remain in the state and/or expand.Competitive Renewable Energy Grants Program$3,000,000Encourage the development of renewable energy in the state, with preference going to NPOs which are not eligible for funding through other stimulus programs.Applicants expected to show a minimum return on investment of 2.5 to 25Uses of Funds:State Energy Programs PlansNorth Carolina:Support small business and industry through energy savings ($11.5 million)Grow North Carolinas green workforce- ($8.85 million)Foster renewable energy technology and resource innovation ($13.5 million)Improve energy efficiency in local and state government ($9.5 million)Promote residential energy efficiency and renewable energy ($10 million)Create an Energy Investment Revolving Loan Fund ($18 million)South Carolina:Improve energy efficiency in Public Institutions ($40 million)Create South Carolina Energy Efficiency Training Center Collaborative ($.9 million)Establish Small Business/Utility Partnership for Energy Efficiency Equipment ($50 thousand)Improve energy efficiency in Low-Income Manufactured Housing ($3 million)Establish Carolina Clean Green Investment Incentives ($3 million)Establish Competitive Renewable Energy Grants Program ($3 million)</p> <p>South Carolina:</p> <p>Public Institution Energy Improvements: $40,000,000Issue grants and no-interest loans to public institutions for energy efficiency projectsReduce energy use by 1% per year for five years, with a goal of 20% reduction by 2020South Carolina Energy Efficiency Training Center Collaborative: $910,000Increase amount of energy-related training provided to the labor force of the stateSmall Business/Utility Partnership for Energy Efficiency Equipment: $50,000Ensure small business participation in market transformation accelerated by the ARRALow-Income Manufactured Housing Retrofit &amp; Evaluation: $3,040,000Assess the efficacy of various energy conservation retrofits for low-income residents of manufactured housingWorks with South Carolinas WAP, Technical College System, Department of Commerce Workforce Program, and the Central Electric Cooperative of South CarolinaGoals:Weatherize 200 homesProvide efficient roof retrofits on 200 homesRetrofit 200 homes with efficient heat pumps and install ENERGYSTAR appliance upgrades in 200 homesSophisticated power monitors installed in 400 homes to assess the energy efficiency value in residencesSouth Carolina Clean Green Investment Incentives$3,000,000Assist new or expanding industrial or commercial businesses which are creating new jobs and providing additional capital investment in the state. Encourages manufacturers of energy efficiency and renewable energy products to locate in South Carolina and helps such existing industries remain in the state and/or expand.Competitive Renewable Energy Grants Program$3,000,000Encourage the development of renewable energy in the state, with preference going to NPOs which are not eligible for funding through other stimulus programs.</p> <p>North Carolina:Six focus areas for Recovery Act Funding:(from presentation of Larry Shirley, Director of State Energy Office, June 4, 2009)Support small business and industry through energy savings ($11.5 million)Identify and implement energy saving measures in small business and industryTarget Main Street communitiesCommercial renewable energy system grantsNonprofit energy management programGrow North Carolinas green workforce- ($8.85 million)Continuing education for building code inspectorsWorkforce Development Initiative: Renewable energy, energy efficiency and alternative fuels, technology training, using community colleges, the UNC system, high school and early college programsFoster renewable energy technology and resource innovation ($13.5 million)Alternative fuels and biofuels development ($3.5 million): Partner with the NC Biofuels center and others to award competitive grants for promising biofuels and alternative fuels projectsNC Green Business Fund ($10 million): Competitive grants for innovative energy projectsImprove energy efficiency in local and state government ($9.5 million)Develop energy assessments and strategic energy plansIdentify new projects: 270 energy projects at state agencies, universities and community colleges can be deployed immediatelySeek more proposals from public schools, local governments, and state agenciesPromote residential energy efficiency and renewable energy ($10 million)Promote energy efficiency in new affordable housing ($3 million): Energy Star manufactured homes, new affordable housing unitsEnergy Audits and implementation for existing homes ($7 million): matching funds and other incentives to owners of existing homes for energy audits and implementation of efficiency and renewable energy measuresCreate an Energy Investment Revolving Loan Fund ($18 mil...</p>