Changing the Game Energy Efficiency Policy in the Obama Administration Kateri Callahan President, Alliance to Save Energy

Presentation Overview A Few Words about the Alliance Building to Today – EE Before Obama Obama Administration – the “Game Changer” The Road Ahead – Forecast for U.S. Climate and EE Policy

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 - Led by Senator Mark Pryor (D-AR) and Jim Rogers, CEO of Duke Energy - Includes 10 Members of Congress – Bi-Cameral; Bi-Partisan - Also includes environmental, consumer, and trade associations heads, state and local policy makers, corporate executives Jim Rogers, CEO Duke Energy Senator Mark Pryor (D-Ark.) Bi-partisan, Bi-cameral Honorary Vice Chairs

What is the Alliance? Business ▪ 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

RD&D Incentives Education/Outreach Codes/Standards 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

Obama: Building on Recent Gains in Energy Efficiency 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 CO 2 emissions by 3% Energy Independence and Security Act of 2007 will by 2030: - Reduce U.S. energy use by 7% - Reduce electricity demand by 5% - Reduce oil use by 10% - Reduce CO 2 emissions by 9%

– Reduce electricity use 15% by 2020 – Net-zero energy buildings by 2030 – Commitment to large green energy component in the economic recovery bill – Strong commitment to climate legislation – Investment incentives for “livable cities” President Obama: EE Advocate in Campaign

10 months later…. Sticking to his word on EE? “No single issue is as imperative to the economy as energy ” (January 2009) An impressive track record - New Budget - Stimulus package - Climate/energy bills - Executive Orders - New Agreements with China

A Big Year for Energy Efficiency in Public Policy Obama’s election platform Stimulus package President’s Fiscal Year 2010 budget American Clean Energy and Security Act (ACES) President’s new CAFÉ standards 2008/2009 October 08 May January 2009 June July House PASSES ACES (6/26) Ongoing approps in House and Senate climate & energy bills DOE: new lighting standards October November Executive Order, EE in federal agencies Outdoor Lighting standards HVAC standards agreement

President Obama’s FY 2010 Budget: A+ in EE 108% Increase Over FY 2009 Request, including:  $10 million increase for the industrial sector  $98 million increase in the Department of Energy’s (DOE) Building Technologies Program – includes $10 million for building energy codes.  $10 million for the Federal Energy Management Program  $25 million increase for the State Energy Program  increases for DOE’s ENERGY STAR program, commercial buildings, residential buildings, R&D, and equipment standards.

Stimulus: $65B Related to Energy Efficiency Funding in Millions of US Dollars

Projected EE Funding,

ARRA: Built on the Five Pillars of Good Public Policy RD&D – Smart Grid ($4.5 bill) – DOE RD&D ($2.25 billion) Incentives – Extension of tax incentives Codes & Standards – “Conditions” State funding on strong building codes Education & Outreach – State Energy Star rebate programs ($300 million) Government Leadership by Example – Federal “High-Performance Green Buildings” ($4.5 billion)

Leadership by Example October 2009, Executive Order: - Use federal buying power to motivate vendors, contractors, and others in the federal supply chain to take their own actions to limit greenhouse gas emissions in production, operations, and transport - Make public the annual “scorecard” results for each agency – an important step towards public accountability and ensuring that the provisions of the order remain as priorities for federal agency managers. - Re-institute the Presidential Leadership Awards, an important step in underscoring the president’s priority on individual and agency leadership in energy efficiency and sustainability within the federal government. - Create sustainability officers for each agency.

On the Horizon… …More Energy Efficiency? Can Obama take U.S. there?

“Our Future is What We Build it to Be” -President Barack Obama *$65 Billion in Stimulus Available for EE *Weatherize 1 million homes/year *Improve efficiency of federal buildings *Control carbon emissions *Create hundreds of thousands of “green jobs” The end of “Politics as Usual”? Redefining “Business as Usual” The “Game Changer”: Obama as EE Champion

Energy and Climate Leg. ACELA Passed Senate ENR Comm. 17 June Energy bill similar to ACES, but with no cap-and-trade provisions Savings by 2030: 4.3 quads $36B for consumers ($240/household) CEJAPA Intro by Sens. Kerry and Boxer 23 Oct. Firm cap: 20% reductions 2020; 80% by 2050 from 2005 levels Expected to be combined with ACELA before floor consideration ACES 2009 Passed House 26 June Standards + incentives to promote clean energy tech, firm cap on GHG emissions Savings by 2030: 8.8 quads $62B for consumers ($486/household)

The role of energy efficiency in climate legislation  Energy efficiency is used as a cost containment and new jobs tool In ACES, energy efficiency provisions alone would:  Save American households about $154 per year in (EPA)  Reduce carbon allowance price by 1.5 percent between (EPA) On the whole, ACES would create on average 120,000 new energy efficiency jobs nationwide each year between (Center for American Progress)

Climate & Energy Bill Outlook Senate - Has Adopted Energy “Piece” - Will consider climate “Piece” in early 2010 House - Adopted Climate & Energy bill in June Additional Support for Energy Efficiency in legislation - Significant Funding through CO2 Allowances (House bill) - Building Labeling Programs (both) - Utility Energy Efficiency Resource Standards (both) - Innovative Finance Programs (both) - Appliance Standards (both) - And much more…..

On Cap-and-Trade Source: Navigant Consulting, Price Signals and Greenhouse Gas Reduction in the Private Sector, 2009, p.5.

On Copenhagen and International Accords “Our aim is not a partial accord or political declaration, but rather an accord……has immediate operational effect.” President Barack Obama in China yesterday. China Clean Energy Agreements Include: $150M Clean Energy Research Center EE Action Plan Mayors Sustainable Cities Program Annual Energy Efficiency Forum Codes and Standards Harmonization

Forecast for U.S. Energy Efficiency Policy Climate Change Legislation with Strong EE Components - Building Codes - Appliance Standards - Innovative Financing Mechanisms - Significant Funding from Allowances “Evergreen” Stimulus Funding - Revolving Loan Funds - Workforce Training Continued Federal Investment - Federal Energy Management - RD&D - Tax Incentives Binding International Climate Treaties

Business, programmatic and technical experts will highlight and discuss best practices for employing energy efficiency to reduce emissions while maintaining, if not improving, bottom-line corporate and economic growth. Case studies from both developed and developing countries will be analyzed. Panel chairs: Lena Ek, MEP Sweden Claude Turmes, MEP Luxembourg Speakers: Eelco van Heel, CEO, Rockwool International A/S Andreas Schierenbeck, CEO Siemens Building Tech...and senior level speakers from: Honeywell, Schneider Electric, Google, USGBC, and NRDC

Thank you! Kateri Callahan President, Alliance to Save Energy