the giant wakes and roars: progress and potential of energy efficiency policy in the u.s

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The Giant Wakes and ROARS”: Progress and Potential of Energy Efficiency Policy in the U.S . Kateri Callahan, President Alliance to Save Energy February 17, 2010 Eilat- Eilot: International Renewable Energy Conference

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February 17, 2010 in Eilat, IsraelCallahan joined former New York governor George Pataki, Dr. Uzi Landau, Israeli Minister of National Infrastructures, Ambassador Richard Jones, Deputy Executive Director of the International Energy Agency, and Guido Bartels, General Manager of IBM and Chairman of GridWise Alliance, for a presentation and discussion centered around the theme “Energy Efficiency – The Quiet Giant.” Callahan focused her remarks on the progress and potential of energy efficiency in the U.S. and the role federal policy has played in “waking up” the quiet giant.

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Page 1: The Giant Wakes and ROARS: Progress and Potential of Energy Efficiency Policy in the U.S

“The Giant Wakes and ROARS”:Progress and Potential of Energy Efficiency Policy in the U.S.

Kateri Callahan, PresidentAlliance to Save Energy

February 17, 2010Eilat- Eilot: International Renewable Energy Conference

Page 2: The Giant Wakes and ROARS: Progress and Potential of Energy Efficiency Policy in the U.S

Presentation Overview

History of Energy Efficiency in the U.S.

Quiet but Working Hard for 30 Years

Awakening the Giant

Strong Federal Policies & Increased Investment

Unleashing the Full Potential of the GiantCreating the Decade of Energy Efficiency

Page 3: The Giant Wakes and ROARS: Progress and Potential of Energy Efficiency Policy in the U.S

What is the Alliance to Save Energy ?Mission :

To promote energy efficiency worldwide to achieve a healthier

economy, a cleaner environment, and greater energy

security.

Organization: Staffed by 60+ professionals32 years of experience$12 million annual budgetRecognized as premier EE

organization in the world

Page 4: The Giant Wakes and ROARS: Progress and Potential of Energy Efficiency Policy in the U.S

What is the Alliance to Save Energy? An Alliance of the Leading Voices from Business, Government, Academia ,

Environmental and Consumer Groups

Governed by Strong Board of Directors

Chaired by Senator Mark Pryor (D-Ark.) and Peter Darbee, Pres./CEO of PG&E

Page 5: The Giant Wakes and ROARS: Progress and Potential of Energy Efficiency Policy in the U.S

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: The Giant Wakes and ROARS: Progress and Potential of Energy Efficiency Policy in the U.S

EE: Quietly Delivering for 3 Decades

4

Page 7: The Giant Wakes and ROARS: Progress and Potential of Energy Efficiency Policy in the U.S

Creates Enormous Savings•AVOIDING roughly 2.5 billion tons of CO2 annually

•Saving roughly $400 billion annually

Page 8: The Giant Wakes and ROARS: Progress and Potential of Energy Efficiency Policy in the U.S

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 9: The Giant Wakes and ROARS: Progress and Potential of Energy Efficiency Policy in the U.S

“Quiet Giant” Created Through State Leadership

Page 10: The Giant Wakes and ROARS: Progress and Potential of Energy Efficiency Policy in the U.S

National Policy Awakens the Giant

EISA 2007: A marriage of…EPAct 2005:

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

Page 11: The Giant Wakes and ROARS: Progress and Potential of Energy Efficiency Policy in the U.S

And Policies Matter! The Energy Use Outlook After EPAct and EISA

Page 12: The Giant Wakes and ROARS: Progress and Potential of Energy Efficiency Policy in the U.S

–Reduce electricity use 15% by 2020–Net-zero energy buildings by 2030–Overhaul federal appliance standards–By 2014, reduce energy use in new

federal buildings 45%; 25% in existing federal buildings

–Flip incentives for utilities–Invest in a “smart grid”–Weatherize 1 million homes/year–Incentives for “livable cities”

Candidate Obama: Energy Efficiency Advocate

Page 13: The Giant Wakes and ROARS: Progress and Potential of Energy Efficiency Policy in the U.S

Opening the Decade of Energy Efficiency

Stimulus package

President’s Fiscal Year

2010 budget

President’s new CAFÉ standards

January 2009

June July

House Passes

Climate Legislation

Ongoing appropriations in House/Senate

climate/energy bills

DOE: new lighting standards

October

November

Executive Order on federal

energy use

Outdoor Lighting standards

HVAC standards

agreement

House Passes $75B “Jobs for

Main Street” bill

Bilateral agreement: U.S.-China Energy

Efficiency Action Plan

December

COP15: Secretary Chu announces Climate

REDI Program

May

Page 14: The Giant Wakes and ROARS: Progress and Potential of Energy Efficiency Policy in the U.S

Source: Consortium for Energy Efficiency, 2009 Annual Report

And Investment is Increasing!

Page 15: The Giant Wakes and ROARS: Progress and Potential of Energy Efficiency Policy in the U.S

Stimulus: $65B Related to Energy Efficiency

Funding in Millions of US Dollars

Page 16: The Giant Wakes and ROARS: Progress and Potential of Energy Efficiency Policy in the U.S

EE: The Roar Grows Louder and Stronger !A “headstart” on renewables and other climate-related business

Global revenues from climate-related businesses rose by 75 percent in 2008 to $530 billion

Climate-related business revenue could exceed $2 trillion by 2020

Energy efficiency recorded the highest investment return at 30%

Keeping up the pace…

Energy efficiency will receive $184 billion (53%) of the $350 billion in

global green stimulus funds

Source: HSBC Global Research Report, September 2009

Page 17: The Giant Wakes and ROARS: Progress and Potential of Energy Efficiency Policy in the U.S

Roaring into the Decade: Forecast for U.S. Policy - 2010 Clean Energy Legislation w/ Strong EE

Building CodesAppliance StandardsInnovative Financing MechanismsSignificant Funding from Allowances

New Jobs BillLoan GuarantiesWorkforce TrainingResidential Retrofit RebatesSignificant FY 2011 Appropriations

Binding International Climate Treaties???

Page 18: The Giant Wakes and ROARS: Progress and Potential of Energy Efficiency Policy in the U.S

Thank you!Contact information:

Kateri [email protected]

+1-202-530-2219