The Energy Efficiency Lifestyle:

Four Major Ingredients

Kateri Callahan, President, Alliance to Save Energy

Hitachi Climate Change Forum

Washington, D.C.

Thursday, March 5, 2009

Overview

A Few Words About the Alliance

Energy Efficiency: The World‟s Greatest Resource

Driving Energy Efficiency: Four Pillars

- Prices Matter: High Energy Costs = Savings

- Building Energy Efficiency Codes and Standards: Moving

inefficient construction and products out of the market

- Consumer and Student Education & Awareness:

Transforming Markets, Green Collar Training

- Good Public Policies: The Cornerstone of an Energy-

Efficient Society

Our Energy Future

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.

The Alliance is…

Staffed by 50+ professionals

31 years of experience in

policy, research, education,

communications, technology

deployment and market

transformation

Alliance Directors: Bi-Partisan

Elected Officials & Industry Leaders

Jim Rogers, CEO

Duke Energy

Senator Mark

Pryor (D-Ark.)

Guided by a 37-Member, elected Board of Directors

Leaders of environmental, consumer, and trade

associations; state and local policy makers; corporate

executives

Bi-partisan, bi-cameral Honorary Vice Chairs

Forging Alliances: Business,

Government & Public Interests

Sponsorship and participation of more than 150 organizations

Involvement by businesses in all economic sectors

Headquartered in Washington, D.C. with operations in several US

states, Eastern Europe, South Africa, Mexico, and India

Why Energy Efficiency? Powering

the U.S. Economy for 30 Years

50

1

3

4

8

23

24

40

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 in 2007

Energy Efficiency and Conservation 2007 Domestic Production Net ImportsAlliance to Save Energy,

November, 2008

Prices Matter: Global Economic

Impacts of Energy Use

Source: McKinsey Global Institute

Prices Matter: EE = Cheap, Quick

“First Response” to Climate

The Challenge? Market

Distortions

Principal Agent or “Split Incentives”

- Home builder versus buyer

- Utility versus customer

Transaction Costs

- Lack of information on life-cycle cost for products and/or

paybacks for upgrades

Lack of Investment in RD&D and EE Programs

Public Policies Essential

Consumer Education & Outreach Essential

Energy Prices Matter:

Consumer Behavior

Prices Matter: High Costs =

Behavior Modification

Building Energy Codes &

Appliance & Equipment Standards

Transform Markets

- Eliminates availability of inefficient products and

construction

-Makes energy efficiency part of the package –

consumers don‟t have to think about it

- Building Codes “Lock In” Savings for Decades

Federal Legislation Pending- Would Drive 30% Improvement in Residential and

Commercial EE Codes by 2010; 50% by 2020

2009 Model Energy Code for Homes: IECC Improves Efficiency by approximately 13% over 2006- EECC Sought 30% Improvement

ASHRAE Goal (Commercial) is a 30% Improvement in Efficiency in the 2010 Code Cycle

Driving Efficiency through Codes

and Standards…..

Light Bulb Standard U.S. set performance standards for general service

light bulbs, starting in 2012-2014

25-30% savings: will phase out traditional incandescent bulbs

Second standard in 2020 must achieve roughly 65% savings

Most significant appliance standard ever adopted- Will reduce CO2 by 100 Mt/yr. by 2020

- Will save $13 billion annually

Mobilizing Our Best

“Weapon”: Consumers

The foundation is there:

– According to EnergyPulse 2008, 88.2% of

surveyed consumers report a positive

association with the term „energy efficiency‟

Consumer Education & Outreach is the way

forward:

– Innovative campaigns emphasizing energy-efficient

lifestyles

– Focus on “pocketbook” and personal/family benefits

Consumer Campaigns

at the Alliance

Super Powers

EPA, NYSERDA, Alliance

Nationwide TV & Radio

(ABC, CBS, CNN)

Consumer Website

Powerful $avings

DOE & Alliance Partnership

All Media Outlets

The Power is In Your Hands

Industry, DOE, EPA, Alliance

All Media Outlets, Web &

Collateral

Energy Hog

DOE, Ad Council, Alliance, States

All Media Outlets

Web, Collateral Materials

P&G ColdWater Campaign

P&G, Alliance

All Media Outlets & Web

Eureka $mart House

Energy-Efficiency Challenge

NBC Universal, Industry, DOE, Alliance

On Air, Web–Home Makeover Contest

The Drive $marter Challenge

(www.drivesmarterchallenge.org)

Billboard advertising

Extensive media coverage

Interactive

Website

Celebrity support Government support Corporate supportDriving & Car

Maintenance

Tip cards

Driving Energy Efficiency Through

Education: Green Schools Program

Creating powerful advocates for

energy efficiency

Tomorrow: Students are the

energy users, citizens of

tomorrow -- they can gain

deep understanding of

energy/environment link

Today: Students can

advocate for energy

efficiency to their

parents, schools and

communities, and conduct

credible research

But Citizens Want Help…

“Who Are You Going to Call…?

.....The Government!”

A History of Policy Progress

(Slowly but Surely!)

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 ACEEE, ASE

On the Horizon…

…More Energy

Efficiency?

– 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

– Investment incentives for “livable

cities”

President Obama:

Energy Efficiency Advocate

The First Step: American Recovery

& Reinvestment Act 2009

ARRA: Big on EE

$20 billion for EE :

• $5 billion for the Weatherization Assistance Program, which will go a long way

in meeting President Obama‟s goal of weatherizing one million homes per year

while creating an estimated 32,000 jobs in the auditing and retrofitting industries;

• $4.5 billion to make 75 percent of federal buildings more energy efficient;

• $3.1 billion for the State Energy Program (SEP), which delivers important

energy efficiency services and innovations in every state; the language contains

incentives for states to adopt utility regulatory reform and stronger building energy

codes; this program has the needed infrastructure to quickly absorb the new

funding and create new jobs;

• $300 million for state matching grants for rebates to consumers who purchase

higher-tier energy-efficient appliances;

• $3.2 billion for Energy Efficiency and Conservation Block Grants (EECBG) that

will allow state and local governments to aggressively implement energy efficiency

programs;

• $400 million of the EECBG funds to be awarded on a competitive basis; and

• More than $8 billion for state and local government investments in public

transportation.

Market Transformation:

Federal Tax Incentives

New Homes

Builder tax credit - up to $2,000 if 50% more efficient

compared to 2003 IECC code; $1,000 for an Energy Star

manufactured home. (Through December 31, 2009)

Existing Homes

Homeowner tax credit – 30% of cost of installing building

envelope components consistent with IECC 2000; capped

at $1500. (Through December 31, 2010)

Commercial Buildings

Deduction up to $1.80/sq.ft. for buildings designed to use

50% less energy than ASHRAE-90.1 (Through 2013)

Public Buildings: Assignable deduction!

RE & EE: Key Ingredients to

Climate Change Legislation

$25

$29

$34

$38

$41

$44 $45

$44

$11

$13

$15

$16

$18

$19 $19

$19

$0

$50

$100

$150

$200

$250

$300

$350

2015 2020 2025 2030 2035 2040 2045 2050

Bilio

n D

ollars

Year

Estimated Allowance Allocation under Boxer Substitute Amendment to Climate Security Act

Allowance Value Allocated To Renewables

Allowance Value Allocated To Energy Efficiency

Other Allowance Value

The Future is Ours to Invent!

Near-Term Promise:

- The U.S. Economy is Re-built on Development

and Deployment of Clean Energy and

Technologies

Mid-Term Promise:

- Energy Efficiency is the “First Tool” in the Arsenal

for Fighting Climate Change

Long-term Reality?:

- U.S. Becomes the Most Energy Efficient Economy

in the World

Event Format:

Exposition Hall: Business, Government and Other Exhibits from around the world

4 Plenary Sessions: Top business and environmental leaders engage with all conference attendees

24 Executive Dialogue Sessions: 90-minute concurrent sessions organized into 4 end use tracks featuring leading global voices selected by an international committee of experts and peers

Networking Events: Many exciting events where business and pleasure are mixed

Sponsors:

Planning Committee:Organized by an International Steering Committee

Marc BitzerEVP, Whirlpool Corp.

President, Whirlpool Europe

Lena Ek

MEP (Sweden)

Nobuo TanakaExecutive Director,

International Energy Agency

Jean-Pascal TricoirePresident and

CEO, Schneider Electric

Claude TurmesMEP (Luxembourg)

Andreas SchierenbeckCEO, Building

Automation, Siemens

Thank you!

For More Information….

Kateri Callahan

President

Alliance to Save Energy

1850 M Street, NW

Washington, D.C. 20036

kcallahan@ase.org

www.ase.org

202.857.0666