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Clean and Sustainable Energy Technology: EPA Programs and New Initiatives Julie Rosenberg, U.S. EPA State & Local Clean Energy-Environment Programs Climate Protection Partnership Division Clean and Sustainable Energy Conference Atlanta, GA December 11-12, 2007
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2 Important Time for Clean Energy Convergence of environmental - resource - economic issues Clean energy offers cost-effective solutions Energy efficiency, renewable energy, combined heat and power EPA efforts to overcome barriers and help clean energy compete ENERGY STAR National Action Plan for Energy Efficiency Clean Energy-Environment State Program Green Power Partnership Combined Heat and Power Partnership Climate Leaders Climate Technology Initiative
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3 Broad Benefits of Clean Energy Environmental Lower greenhouse gas emissions and criteria pollutants Lower water use Utility System Quick fix with longer term benefits Improve security of electricity and gas systems Lower peak demand / improve reliability Diversify utility supply portfolio Reduce environmental regulatory risk to utilities Economic Lower cost compared to new generation and transmission Downward pressure on natural gas prices Lower wholesale electricity prices Improved local economy Improved service to low income and seniors
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4 Energy Efficiency is… Large Resource More than 50 percent of gas and electric growth can be offset cost- effectively Low cost now Fraction of new generation Stays low cost – what ever the future price of carbon 3,500 4,000 4,500 5,000 5,500 20042008201220202024 Consumption (Billion kWh) Future Electricity Demand Scenarios BAU Range of Studies 2016 50% of Growth
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5 Barriers to Clean Energy Information Technology Options Costs and Benefits Technical Assistance Transaction Costs Split Incentives Objective Measurement Tools Contradictory Policies and Regulations
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6 EPA Programs Designed to Overcome the Barriers Information Technology Options Costs and Benefits Technical Assistance Transaction Costs Split Incentives Objective Measurement Tools Contradictory Policies and Regulations
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7 Strategic Role of EPA’s Clean Energy Programs Helping Markets Work Break down barriers Capture cost-effective GHG reductions Lock in reductions now where there is a net benefit Provide near-term solutions while others invest in long-term R&D programs Establish an environment for investment Complement other policies ie: codes and standards
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8 ENERGY STAR Broad national, credible platform for EE Residential – 50+ products Commercial - existing and new buildings Cost-effective platform for investors and policy makers Helps lower program administration costs Reduces start-up time Provides valuable lessons learned Provides access to a network of partners Partners with key market actors – 9,000+ partners Major manufacturers and retailers Builders Utilities / system benefits charge administrators 60% of utility customers 40+ States National recognition - >65% of public Platform for the new Climate Technology Initiative
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9 ENERGY STAR is Guiding Building Investments Across the Country Commercial/Public Buildings being rated for upgrade potential 6 billion square feet rated (30,000+ buildings) 10,000+ schools 3,200 - ENERGY STAR top performers Also addresses water use ENERGY STAR Challenge 30+ states / DC improve building efficiency >10% ENERGY STAR new homes ~200,000 in 2006 – 1 in 10 NEW: Home Performance with ENERGY STAR improvements to existing homes
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10 ENERGY STAR Industrial Program Grown to include 10 industrial sectors Offers: Plant-level performance metrics; Peer exchange; and Sector-specific barriers and opportunities. Manufacturing plants now qualifying for the ENERGY STAR Industry relationships provide foundation for the Climate Technology Initiative
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11 Clean Energy Supply Programs Green Power Partnership Supports companies and organizations that purchase green power voluntarily. Provides technical and marketing assistance. > 800 Partners purchasing more than 10 billion kWh. Green Power Fortune 500 Challenge – goal is to double the green power purchases of Fortune 500 corporations from 2.5 billion kilowatt-hours (kWh) annually to at least 5 billion KWh each year. In final stretch and closing in on KWh goal. Combined Heat and Power Partnership Provides state governments, major energy users, the CHP industry and other clean energy stakeholders assistance in promising markets and sectors. > 230 Partners deploying > 3,500 MW of new CHP since 2002. Focused in: Regions with high electricity prices such as CA and New England, Conducive market sectors: ethanol refineries, municipalities, wastewater treatment, hotels/casinos, and datacenters Using woody biomass as a clean, renewable and cost-effective fuel for CHP. Advanced technologies inform emerging technologies
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12 Climate Leaders Leveraging momentum in the business community for aggressive climate change actions 153 companies representing 9 percent of total U.S. GHG emissions 80 partners have announced aggressive GHG reduction goals 11 partners have achieved goals since 2002
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13 National Action Plan for Energy Efficiency Goal: Create a sustainable, aggressive national commitment to energy efficiency through gas and electric utilities, utility regulators, and partner organizations. 5 key recommendations from 50-member Leadership Group in 7/06 Recognize energy efficiency as a high-priority energy resource; Make a strong, long-term commitment to implement cost-effective energy efficiency as a resource; Broadly communicate the benefits of and opportunities for energy efficiency; Provide sufficient, timely and stable program funding to deliver energy efficiency where cost-effective; and Modify policies to align utility incentives with the delivery of cost-effective energy efficiency and modify ratemaking practices to promote energy efficiency investments. Vision for 2025 includes implementing : State of the Art Efficiency Information Sharing and Delivery Systems Advanced Technologies Utilities and PUCs counting on new technologies
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14 Clean Energy-Environment State Program Works directly with states and locals to implement clean energy polices and programs that generate multiple benefits: GHG/environment, energy and economic. Program Offerings: Best Practice Guidance Tools and Analyses Peer Exchanges Technical Assistance Formal Partnership for States States can fund emerging technologies
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15 NEW EPA Climate Technology Initiative - Emerging Technologies ENERGY STAR mass market consumer cost-effective (2 to 3 year payback) proven technology no sacrifice in performance reliable savings – easy design, installation, and maintenance New Climate Technology Initiative New recognition program Partnering with ‘champions’ to complement EPA competencies Builds upon EPA’s clean energy market and program expertise
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16 NEW EPA Climate Technology Initiative Stakeholder Conference Climate Technology Initiative Conference - October 2007 75 experts Key findings drive EPA’s direction as we develop the new imitative: Climate change has created a market for new technology; EPA Can and Should Play a Fundamental Role; Speed commercialization of environmentally superior technology; Protect the ENERGY STAR brand; Develop unique recognition programs; Promote emerging technology at every stage of development; Concentrate on technologies within EPA’s core competencies; Leverage partners who complement and supplement core competencies; and Define new product carbon performance standards. Next Steps EPA assessing options for technology pilots – winter/spring ‘08
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17 Julie Rosenberg rosenberg.julie@epa.gov (202) 343-9154 http://www.epa.gov/cleanenergy/
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