the energy efficiency lifestyle: four major ingredients

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The Energy Efficiency Lifestyle: Four Major Ingredients

The Energy Efficiency Lifestyle: Four Major IngredientsKateri Callahan, President, Alliance to Save EnergyHitachi Climate Change ForumWashington, D.C. Thursday, March 5, 2009OverviewA Few Words About the Alliance Energy Efficiency: The Worlds Greatest ResourceDriving Energy Efficiency: Four PillarsPrices Matter: High Energy Costs = SavingsBuilding Energy Efficiency Codes and Standards: Moving inefficient construction and products out of the marketConsumer and Student Education & Awareness: Transforming Markets, Green Collar TrainingGood Public Policies: The Cornerstone of an Energy-Efficient SocietyOur Energy Future

2During my short time with you, I would like to briefly discuss three topics. First, I will spend a few moments introducing you to the organization I serve, the Alliance to Save Energy. Second, I will spend a bit of time explaining why we at the Alliance contend that energy efficiency is North Americas greatest energy resource and is a critical component to greening our energyand creating a Sustainable energy future.Then, I will touch the interesting Alliances that have been formed at the local, statewide, and federal level in support of Energy Efficiency. I will attempt to highlight strategic Alliances that have in my perspective been CRITICAL to the passage of innovative, progressive energy efficiency polices. Finally, I will talk about what we believe needs to happen in terms of policy, collaborative government and industry initiatives, and technology development and deployment if we are going to exploit energy efficiency to its fullest as we seek to meet growing energy demands in North America and around the globe.

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.The Alliance is Staffed by 50+ professionals31 years of experience in policy, research, education, communications, technology deployment and market transformation

3Alliance Directors: Bi-Partisan Elected Officials & Industry Leaders

Jim Rogers, CEO Duke EnergySenator Mark Pryor (D-Ark.)Guided by a 37-Member, elected Board of DirectorsLeaders of environmental, consumer, and trade associations; state and local policy makers; corporate executives

Bi-partisan, bi-cameral Honorary Vice Chairs4Forging Alliances: Business, Government & Public InterestsSponsorship and participation of more than 150 organizationsInvolvement by businesses in all economic sectorsHeadquartered 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 Years6Prices Matter: Global Economic Impacts of Energy Use

Source: McKinsey Global Institute

7The 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.

Prices Matter: EE = Cheap, Quick First Response to Climate8The Challenge? Market DistortionsPrincipal Agent or Split IncentivesHome builder versus buyerUtility versus customerTransaction CostsLack of information on life-cycle cost for products and/or paybacks for upgradesLack of Investment in RD&D and EE ProgramsPublic Policies EssentialConsumer Education & Outreach EssentialEnergy Prices Matter: Consumer Behavior

Prices Matter: High Costs = Behavior Modification

Building Energy Codes &Appliance & Equipment Standards Transform MarketsEliminates availability of inefficient products and constructionMakes energy efficiency part of the package consumers dont have to think about itBuilding Codes Lock In Savings for DecadesFederal Legislation PendingWould Drive 30% Improvement in Residential and Commercial EE Codes by 2010; 50% by 20202009 Model Energy Code for Homes: IECC Improves Efficiency by approximately 13% over 2006EECC Sought 30% ImprovementASHRAE Goal (Commercial) is a 30% Improvement in Efficiency in the 2010 Code Cycle

Driving Efficiency through Codes and Standards..13Light Bulb StandardU.S. set performance standards for general service light bulbs, starting in 2012-201425-30% savings: will phase out traditional incandescent bulbsSecond standard in 2020 must achieve roughly 65% savingsMost significant appliance standard ever adoptedWill reduce CO2 by 100 Mt/yr. by 2020Will save $13 billion annually

14For example, bulbs as bright as todays 100 W bulbs starting in 2012 could use no more than 72 W.

More than 20 exceptions for niche products (such as appliance bulbs).Mobilizing Our Best Weapon: ConsumersThe foundation is there:According to EnergyPulse 2008, 88.2% of surveyed consumers report a positive association with the term energy efficiencyConsumer Education & Outreach is the way forward:Innovative campaigns emphasizing energy-efficient lifestylesFocus on pocketbook and personal/family benefits

Consumer Campaigns at the AllianceSuper PowersEPA, NYSERDA, AllianceNationwide TV & Radio (ABC, CBS, CNN)Consumer Website

Powerful $avingsDOE & Alliance PartnershipAll Media Outlets

The Power is In Your HandsIndustry, DOE, EPA, AllianceAll Media Outlets, Web & Collateral

Energy Hog DOE, Ad Council, Alliance, StatesAll Media Outlets Web, Collateral Materials

P&G ColdWater Campaign P&G, AllianceAll Media Outlets & Web

Eureka $mart House Energy-Efficiency ChallengeNBC Universal, Industry, DOE, AllianceOn Air, WebHome Makeover Contest

16RozanneThe Drive $marter Challenge(

Billboard advertisingExtensive media coverageInteractive WebsiteCelebrity supportGovernment supportCorporate supportDriving & Car Maintenance Tip cards(March 5, 2009) To date, potential savings from this campaign: $25,535,155; 7,161,445 gallons of gas; 86,729 metric tons of CO217Driving Energy Efficiency Through Education: Green Schools ProgramCreating 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 HelpWho 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, ASE20ACEEE estimates (using some Alliance analysis)On the Horizon

More Energy Efficiency? Reduce 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 cities

President Obama: Energy Efficiency Advocate

22The First Step: American Recovery & Reinvestment Act 2009

~ $75 Billion Potential for EEARRA: Big on EE$20 billion for EE :

$5 billion for the Weatherization Assistance Program, which will go a long way in meeting President Obamas 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.

I assume you want to address this at RETECH perhaps only for EE, as I assume there will be a general awareness of what the stimulus package allots for RE. But the issue here is also one of placement perhaps this slide (or an abbreviated version) would be better at the end of the deck, as a springboard for the idea of a green-fueled economy? 24Market Transformation:Federal Tax IncentivesNew 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 HomesHomeowner 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!25These incentives are available for 2006 and 2007 _______ 9/04/08 Brad P. says possible extension as Reid wil


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