1. Opportunities for Greater Energy Efficiency of Security Equipment R. Neal Elliott, Ph.D., P.E. Associate Director for Research ACEEE

2. The American Council for an Energy- Efficient Economy (ACEEE) ACEEE is a nonprofit 501(c)(3) that acts as a catalyst to advance energy efficiency policies, programs, technologies, investments & behaviors. Nearly 50 staff based in Washington, D.C. Focus on end-use efficiency in industry, buildings, utilities & transportation Other research in economic analysis; behavior; national, state & local policy. Funding: ◦Foundation Grants (52%) ◦Contract Work & Gov. Grants (20%) ◦Conferences and Publications (20%) ◦Contributions and Other (8%)  www.aceee.org

3. Reasons for Energy Efficiency  Energy efficiency can offer opportunities for market differentiation  Customers have energy efficiency obligations: Federal agency under obligations for energy efficiency improvements and to purchase energy-efficient products Many state & local governments follow federal purchasing guidelines Many companies include energy efficiency in their corporate sustainability goals—both for their own operations & for the products they sell  Investors are showing preference for companies with Sustainability plans

4. Paths for energy-efficient products  Product testing protocols and data collection Identify or develop test method to allow purchaser comparisons of equipment Develop standard reporting for both direct & indirect energy use of products  Product labeling Private-sector labeling by trade association or 3 rd party Participation in public labeling program—EnergyStar™, NEMA Premium™ Mandatory labeling requirements through DOE  Product performance standards Minimum-Efficiency Performance Standards (MEPS) by Government—DOE Standards proceedings

5. Energy Efficiency Testing & Data Address customer transaction costs:  Provide information of sustainability programs  Allows industry to define key performance indicators Industry controls the process Allows industry to appear ahead of sustainability markets  Provide the basis for labelling efforts Identifies KPI Established accepted test procedures Proves data needed to justify labels

6. Power of Labeling  Helps customers make choices Addresses market confusion on purchasing products that comply with mandatory & voluntary energy efficiency goals  Facilitates customers to: Achieve energy savings targets & document savings - “deemed savings” Purchase energy-efficient products & streamline purchasing process—e.g. FEMP, DoD, GSA Offers the potential to receive energy efficiency program incentive payments  Allow differentiation in marketing products

7. Summary & Conclusions Focusing on energy efficiency of security products offers the industry the opportunity to:  Make the industry responsive to customer needs  Allow for market differentiation of efficient products  Help facilitate customers in their purchasing process  Unlock energy efficiency incentive payments  Seize control of the efficient product process to guide & channel government action

8. Thank you! R. Neal Elliott, Ph.D., P.E. Associate Director for Research ACEEE rnelliott@aceee.org 202-507-4009 Visit ACEEE on the Web: www.aceee.orgwww.aceee.org Follow us on Twitter: @ACEEEdc