The Art of the Possible:Building an Energy-Efficient America

Kateri CallahanPresident

July 8, 2010

Overview A Few Words About the Alliance

EE in the U.S.: Waking the Quiet Giant

The Art of the Possible – Creating a New U.S. Energy Economy on a Foundation of EE

High Stakes/High Rewards: The Retrofit Ramp-up Role!

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.

Organization: Staffed by 60+ professionals 32 years of experience $12 million annual budget Recognized as the premier

energy efficiency organization in the world

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 Jeanne Shaheen (D-NH) and Peter Darbee, Chairman of the

Board, CEO and President, PG&E Corporation- Includes 11 Members of Congress – Bi-Cameral; Bi-Partisan- Also includes environmental, consumer, and trade associations heads, state

and local policy makers, corporate executives

Alliance Associates ProgramBusiness ▪ Government ▪ Public Interest

Sponsorship and participation of more than 170 organizations Involvement by businesses in all economic sectors Initiatives underway in research, policy advocacy, education, technology deployment, and

communications

Geothermal, Solar and Wind

Conventional Hydroelectric

Biomass

Nuclear Electric Power

Coal

Natural Gas

Petroleum

Energy Efficiency and Conservation

0 10 20 30 40 50 60

1

2

4

8

22

24

37

52

America's Greatest Energy Resource Energy Efficiency and Conservation Improvements Since 1973

Have Reduced Annual Energy Consumption by 52 Quads in 2008

Energy Efficiency and Conservation 2008 Domestic Production Net Imports

Quads

Alliance to Save Energy, June 2009

EE: America’s “Quiet Giant”

Why EE? Why Now? Climate Change: Energy use directly linked to GHG emissions..the U.S. example:

Security:Unchecked growth in energy demand can:• Accelerate fossil fuel depletion• Increase our reliance on foreign

sources of energy

Economy:• Energy waste comes at high costs:

“Business as usual” energy use will waste more than $1.2 trillion in the U.S. between now and 2020 in the U.S. alone – and this does not include transportation energy consumption!

Game Changers: Understanding the Enormous Potential for Savings……

Source: McKinsey Global Institute

Game Changers: The Role of Cities

The Challenge: Cities are resource-hungry, and they’re growing +50% of the global population lives in cities; 60% by 2030 (U.N. estimate) Cities emit disproportionate amount– 80% global GHGs (U.N. Habitat) Drastically reducing growth in emissions requires wide-scale changes, involving:

Infrastructural changes, Behavioral changes The developing world:

75 percent of the world's billion poorest humans live in urban areas Dilemma: who finances sustainable urban development?)

The Potential: Energy Efficiency First• With optimal EE investments:

• Developed countries (G-8 + 5) can avoid $3 trillion worth of new generation (UN Foundation)• Developing world can reduce energy demand by 25% by 2020 (McKinsey Global Inst.)

• Most of these improvements need to happen at regional/municipal level• 70 % of technologies required are available or on the horizon (McKinsey)• Energy savings can pave way for investments in wide-scale renewable, clean energy, climate

improvements

Game Changers:U.S. National Policy

EISA 2007: A marriage of…

Vehicle CAFE standards

Appliance standards

Federal energy

management

Certain building

standards

R&D program authorizations

EPAct 2005:EE provisions for:

-Buildings-Transportation-R&D-Utilities-Tax Incentives

And Policies Matter! U.S. Energy Use Outlook After EPAct and EISA

1952

1954

1956

1958

1960

1962

1964

1966

1968

1970

1972

1974

1976

1978

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

2014

2016

2018

2020

2022

2024

2026

2028

2030

0

20

40

60

80

100

120

140

160

180

200

Projected U.S. Energy Consumption

Actual AEO 2005 AEO 2009

Policies & Prices Matter….

1960 1965 1970 1975 1980 1985 1990 1995 2000 20050.0000

2.0000

4.0000

6.0000

8.0000

10.0000

12.0000

14.0000

16.0000

CA GA NY USA

Source: EIA International Net Energy Consumption Tables, 1960-2005; US Census Data

Retail Energy Consumption Per Capita

Thou

sand

Kilo

watt

Hou

rs p

er P

erso

n

CaliforniaNew York

U.S. Average

Georgia

–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–Incentives for “livable cities”

Candidate Obama: A True EE Advocate!

Delivering (or trying to!) on Campaign Promises

Stimulus package

President’s Fiscal Year 2010 budget

President’s new CAFÉ standards

January 2009

June

House passes ACES

DOE: new lighting standards

October

November

EO on federal energy use

Sens. Kerry and Boxer introduce Clean Energy Jobs and American Power Act (CEJAPA)

House passes $75B Jobs bill

U.S.-China Energy Efficiency Action Plan

December

Secretary Chu announces Climate REDI Program

May Febru

ary 2010

Senate includes Homestar proposal in Jobs agenda

March

Bingaman, Murkowski, Menendez introduce Appliance Standards Bill

Sens. Merkley & Pryor introduce Building Star

May

Sens. Kerry ,Lieberman release text of American Power Act

House passes Home Star Energy Retrofits Act

HVAC standards agreement

Lugar Practical Energy and Climate Plan introduced

June

First-ever efficiency/ emissions standards for medium- and heavy-duty cars and trucks

House-Senate Agreement on EE Provisions in Tax Extenders Bill

September

$454 million Retrofit Ramp-Up Program announced

EE in the ARRA:Up to $65b out of $787b

towards efficiency (8.25%)

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

$-

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000

$18,000,000

$20,000,000

Projected Stimulus Historic Federal Projected Federal (2009 levels)

Historic ESCO Projected ESCO (2009 levels) Historic DSM

Projected DSM

Thou

sand

s $U

S

Wise Investing Matters!And Wise Use of Investment Critical!

EE: Winning the Race towards a Clean Energy Economy A “headstart” on renewables and other climate-related business

Global revenues from climate-related businesses rose by 75 percent in 2008 to $530 billion

Climate-related business revenue could exceed $2 trillion by 2020

Energy efficiency recorded the highest investment return at 30%

Keeping up the pace…

Energy efficiency will receive $184 billion (53%) of the $350 billion in global green stimulus funds

Source: HSBC Global Research Report, September 2009

Now time to deliver on the promises!

"If we can tighten up those homes, we can help the American people put their money to better use, and — in doing that — we can put people to work.“ Gil Sperling, DOE EERE

Charlotte, NC

Baltimore, MD

“Baltimore boy's asthma improved through retrofit” Energy Empowers

“[Clean Energy Works Portland] will help move the whole marketplace”- Susan Anderson, Portland Bureau of Planning and Sustainability

Portland OR

The $25 million federal investment is expected to leverage an investment of $180 million in energy upgrades, reduce greenhouse gas emissions by 200,000 tons, and generate or retain thousands of green jobs across the region.Boulder County Board of Commissioners

Boulder, CO

"Block by block, neighborhood by neighborhood, we will make our communities more energy efficient and help families save money.  At the same time, we’ll create thousands of jobs and strengthen our economy.“- Secretary of Energy Steven Chu

Keys to Success: Transparency, Measurement & Verification

Sustainability Goals:- Reduce GHG emissions at existing stores 20% by 2012- Long-term: 100% powered by renewable energy- Zero-waste operations- Sustainable product selection- Sustainability/efficiency criteria for supplies and vendors around the world

EE technologies are helping Walmart get there NOW:- Daylighting- Efficient HVAC- White Roofs- Lighting Retrofits- Fuel efficient vehicles…and more!

Through energy efficiency alone, Walmart...- ...is saving 250 million kwh/year in the U.S. (enough to power 23,000 homes)- …has reduced energy load by approximately 15-20%

Another Example:ENERGY STAR

45 millionmetric tons of GHG emissions prevented

$17 billionsaved in 2009 on utility bills

1 millionENERGY STAR qualified homes built in the U.S.

as of 2009

Another Critical Key: Engaging ConsumersThe Power is In Your HandsIndustry, DOE, EPA, AllianceAll Media Outlets, Web & Collateral

Super PowersEPA, NYSERDA, AllianceNationwide TV & Radio (ABC, CNN, USA)Website

Powerful $avingsDOE & Alliance PartnershipAll Media Outlets; Reached Millions

Promoting 100th Anniversary of the Programmable ThermostatSMTs, earned media

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

P&G Coldwater Campaign P&G, AllianceAll Media Outlets & WebReached Millions

Drive $marter ChallengeWal-Mart Foundation, Alliance & 16 partners, Reaching Millions,Web, Collateral, PSAs, Billboards

Eureka $mart House Energy Efficiency Challenge 11 Partners, Website Contest, Home Makeover

Roaring into the Decade: Forecast for U.S. Policy (with your help!)

Clean Energy Legislation w/ Strong EE Building CodesAppliance StandardsInnovative Financing MechanismsSignificant Funding from Allowances

New Jobs BillLoan GuarantiesWorkforce TrainingResidential Retrofit RebatesCommercial Building Rebates

Strong/Increased Federal EE Appropriations Continuation/Expansion of Federal Tax Incentives

Retrofit Ramp-Up:The Change We Seek!

“Change will not come if we wait for some other person or some other time. We are the ones we've been waiting for. We are the change that we seek.”- Barack Obama

RRU AWARD WINNERS:Austin Climate Retrofit Protection Program Boulder County, CO Retrofit Ramp-up ProjectCamden Program Offering Widespread Energy Recovery Chicago Region Retrofit Ramp-UpGreater Cincinnati Energy Alliance Greensboro-Energy Efficiency as a Pathway to Community Health and

WealthIndianapolis Super Bowl Legacy Retrofit Ramp-Up Project Energy Works KCLos Angeles – Retrofit California Carbon Neutral Lowell Park and Preservation InitiativeMaine Home Performance Program Maryland Department of Housing and Community

DevelopmentMichigan Retrofit Ramp-Up Initiative Missouri Agricultural Energy Saving TeamNew Hampshire’s Beacon Communities Project NY State Partnership for Innovative Financing of EE RetrofitsCity of Omaha and City of Lincoln Project Energy Smart Greater PhiladelphiaPhoenix Transformation through Behavior Clean Energy Works OregonSan Antonio Retrofit Initiative Seattle’s Neighborhood Weatherize Energy BuildingToledo-Lucas County Port Authority Wisconsin Energy Efficiency ProjectSoutheast Community Retrofit Ramp-Up Consortium

Questions?

Thank you!Kateri Callahan

President, Alliance to Save Energykcallahan@ase.org

202-530-2219