The Obama Effect: Driving Energy Efficiency and Economic

Recovery 

National Association of Counties2009 Legislative Conference

March 7, 2009

Brian CastelliExecutive Vice President, Programs & Development

Presentation Outline

What is the Alliance to Save Energy? New Administration, New Energy Policy 2009 Stimulus Package – EE related $ On the Horizon: Energy & Climate?

What is the Alliance to Save Energy?

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+ professionals 31 years of experience in

policy, research, education, communications, technology deployment and market transformation

Alliance Directors: Bi-Partisan Elected Officials and Industry Leaders

Jim Rogers, CEO Duke Energy

Senator Mark Pryor (D-Ark.)

Guided by a 37-Member, elected Board of Directors Leaders of environmental, consumer, and trade

associations; state and local policy makers; corporate executives

Bi-partisan, bi-cameral Honorary Vice Chairs

Forging Alliances: Business, Government & Public Interests

Sponsorship and participation of more than 150 organizations Involvement by businesses in all economic sectors Headquartered in Washington, D.C. with operations in several US

states, Eastern Europe, South Africa, Mexico, and India

Brief Post-Mortem on 2008 Energy Independence & Security Act (EISA),

P. L. 110-140; most sweeping energy bill enacted in over 30 years (Note: some provisions will now govern stimulus spending)

Energy efficiency tax incentives were extended as part of the Troubled Assets Relief Program ("TARP") P.L. 110-343 -- October, 2008

Energy legislation adopted by House; Senate “Gang of Ten” energy package developed

Inventing our Energy Future While Re-Building the Economy

The imperative:

“…the future of our economy and national security are inextricably linked to one challenge: energy.”

The path forward:

“To control our own destiny, America must develop new forms of energy and new ways of using it. This is not a challenge for government alone….It is a challenge for all of us.”

President Barack Obama, December 15, 2008

– 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– Investment incentives for “livable

cities”

President Obama: Energy Efficiency Advocate

“Making Good” on Promises: Early Action (Jan 09)

Directs DOT to establish higher fuel economy standards for vehicles by model year 2011

Directs EPA to reconsider the bid by California and 13 other states to set tailpipe carbon dioxide emission standards requiring greater fuel economy.

Confirms intent to - weatherize 2 million homes over the next two years;

- make significant energy efficiency upgrades to 75 percent of federal buildings (savings of $2 billion in avoided energy costs);

- double the country’s renewable energy resource base; and

- create nearly 500,000 new “green jobs.”

Building a Green Economy Showed early commitment to large

green energy component in the economic recovery bill

Budget assumes revenues from an economy-wide cap-and-trade program to reduce greenhouse gas emissions, based on a carbon cap of 83% below 2005 levels in 2050- The climate program would generate

nearly $650 billion between 2012 and 2019

- House hopes to consider a joint climate & energy bill by Memorial Day 

Stimulus Parameters…

~$75 Billion Potential for EE

American Recovery & Reinvestment Act of 2009 – $787 Billion Total

~$20 billion primarily for energy efficiency$3.1 State Energy Program (SEP)$3.2 EE Conservation Block Grants$4.5 Green Federal Buildings$0.3 ENERGY STAR appliance rebate$5.0 Weatherization (WAP)$1.25 undesignated funding for RDD&D

In addition: transit, smart grid, ARPA-E, utility infrastructure, school/university facilities, workforce, tax incentives, bonding authority, loan guarantees

ARRA – the main recipients State Energy Offices

- SEP funding formula

- Guidance to come from DOE – Soon!

Local Governments (Counties, Cities ), Indian Tribes, US Territories, States and consortia of above

- $2.8 Billion to be distributed per EISA allocation guidance

- $ 400 Million to be competed

Local Weatherization agencies

General Services Administration (GSA)

DOD, DOL and EERE

Allocation of EE&CBG $2.8 B 68% to Large Cities and Counties

>35,000 population > 200,000 population

OR in Small States one of the 10 most populous Cities or Counties

28% to States

- Of which 60% to Cities and Counties with< 35,000 population < 200,000 population

2% in direct formula grants from DOE to Indian tribes

2% in competitive grants from DOE to Cities, counties and Indian tribes not eligible for direct formula grants from DOE, and consortia of those entities

Application for the EE&CBG $2.8 B

FedConnect, will be the mechanism for applying for the EECBG Programhttps://www.fedconnect.net/FedConnect/PublicPages/FedConnect_Ready_Set_Go.pdf

- Step 1: Request a DUNS Number athttp://fedgov.dnb.com/webform/displayHomePage.do

- Step 2: Register with the Central Contractor Registry (CCR) athttp://www.ccr.gov/.

- Step 3: E-Business Point of Contact must register in FedConnect athttps://www.fedconnect.net/FedConnect/.

REGISTER NOW!!! Process may take up to 21 days.

What Activities are Eligible for the EE&CBG $2.8 B

13 Activities are eligible – Key criteria will be based on maximum impact in short-term for jobs to stimulate the economy WHILE laying a foundation for long-term sustainable energy future

DOE will provide more guidance on “categorical exclusions” to NEPA for some of the 13 programs.

What Activities are Eligible for the EE&CBG $2.8 B

Residential and Commercial Building Energy Audits

Financial Incentive Programs for EE Energy Efficiency Retrofits Energy Efficiency and Conservation

Programs for Buildings and Facilities Development and Implementation of

Transportation Programs Building Codes and Inspections

What Activities are Eligible for the EE&CBG $2.8 B

Energy Distribution Technologies Material Conservation Programs Reduction and Capture of Methane and

Greenhouse Gases Traffic Signals and Street Lighting Renewable Energy Technologies on

Government Buildings Development of an Energy Efficiency and

Conservation Strategy Any Other Appropriate Activity

ARRA – the delivery mechanisms

DOE (both administrator and recipient)- Has created a “special organization” to disperse

Matt Rogers (of McKinsey Consulting) is leading this advisory team, which reports to Secretary Chu

- EEREEERE receives $3.5 B, of which $2.25 B earmarked

for renewable energy and some EEGil Sperling is organizing DOE’s stimulus efforts for

SEP and WAP from the Office of the Weatherization and Intergovernmental Program (OWIP)

ARRA – the confusion

“plan then do” – obviously not happening “Shovel ready” - projects vs. programs Funds could begin flowing April, 2009 Funds to be expended in 18-24 months Test case for future climate legislation How do we measure success?

Stimulus Opportunities The State Energy Program- In FY 2008 received $44 million

- Stimulus provided $3.1 billion

- The National Association of State Energy Officials has a listing of energy programs that receive funding through SEP, from Colorado’s Rebuild Colorado program to Wyoming’s Energy Conservation Improvement program, both of which utilize performance contracting

- Browse programs state-by-state at http://www.naseo.org/projects/sep/updates/index.html

23

Stimulus + Policy

State Energy Program funding requires governor to state in writing that the State will: - Rate reform: Align utility financial incentives with

energy efficiency, with cost recovery and earnings opportunity

- Codes: Implement most recent model building energy codes and plan for compliance

Stimulus Opportunities The Weatherization Assistance Program

- In FY 2008 received about $500 million – two sources

- Stimulus provided $5 billion The WAP Technical Assistance Center

(www.waptac.org) provides a page of “Ramp Up Tools” to help the weatherization network respond to the funding influx

Other resources:- National Association for State Community Services

Programs (http://www.nascsp.org/)

- Weatherization Plus & Leveraging Resources: http://www.opportunitystudies.org/weatherization-plus/

Stimulus Opportunities Federal-Level Resources- General Services Administration received

$4.5 billion to convert federal facilities into “High-Performance Green Buildings”

- GSA’s Public Buildings Service houses the new Office of High-Performance Green Buildings

- GSA Director of Expert Services Kevin Kampschroer will lead this effort

- www.Recovery.gov and www.GSA.gov/sustainabledesign

General Services Administration funds: Alliance Recommends…

From GSA funds for energy efficiency retrofits in federal buildings, take…

$3 billion

Federal Energy Management Program

Projects that: •Create the greatest impact through the use of energy and water efficiency and conservation and renewable energy across the federal government;•Are leveraged with private sector funds; and•Are comprehensive and used for the construction, repair and alteration of Federal buildings in compliance with Section 432 of EISA (42 U.S.C. Section 8253) (f) (1) through (f) (7).

FY09 Federal Energy Efficiency Programs Funding (in millions of dollars)

Program FY08 Approp.

FY09 Request

FY09 House Request

FY09 Senate Request

FY09 Omnibus

Change from 08 Approp.

Change from 09 Request

Building Tech 108.999 123.765 168 176.481 140 28% 13%

Commercial Buildings Integration

11.891 13 33 40

Industrial Tech 64.409 62.119 100 65.119 90 40% 45%

Federal Energy Management

19.818 22 30 22 22 11% 0%

State Energy Program

44.095 50 50 50 50 13% 0%

Weatherization Assistance

227.221 0 250 201.181 200 -12%

State & Local Block Grants

295 50

Total Above EERE Programs

727.031 478.970 1378 857.781 775.238 7% 62%

Energy Star EPA 48.236 44.221 55 55 4% 13%

“New Funding”: Commercial Building Initiative Goals:

- 2030: New construction Net-Zero- 2050: Entire stock Net-Zero

Broad government/industry consortium Comprehensive approach (R&D deployment) Coordinate (initiate) national and local actions

- Measure, benchmark, disclose energy performance- R&D for critical technologies and systems - Demonstrate scalable, replicable system solutions- Transform market: education/training, finance, appraisal,

incentives, codes, buyer demand-pull

On the Horizon…

…More Energy Efficiency?

Energy and/or Climate Legislation in the 111th

Senate to consider energy bill in March/April;

House may introduce combined energy/climate bill

- Waxman’s goal is legislation by Memorial Day

- Interest in National RPS/EERS (Markey has introduced bills)

Obama FY 2010 anticipates “Cap & Trade” proceeds beginning in 2012

- Advanced building energy codes

- Energy Efficiency Resource Standard

- Vehicle Feebate

- Appliance Standards

- Building Labeling Programs and/or Requirements

Alliance “Complementary” Policy Recommendations:

Alliance, together with other organizations, has developed recommendations for the next climate bill and is briefing Congressional staff

We are looking at evaluation, measurement and verification; third-party programs; how much should be spent on R&D

Despite economic woes, expectation that Congress will enact/President will sign climate legislation this year or next

Alliance Climate Policy Recommendations

Climate Legislation Can Create Funding for RE & EE

2015 2020 2025 2030 2035 2040 2045 2050$0

$50

$100

$150

$200

$250

$300

$350

$25

$29

$34

$38

$41 $44

$45 $44

$11

$13

$15

$16

$18

$19 $19

$19

Estimated Allowance Allocation under Boxer Substitute Amendment to Climate Security Act (2008)

Allowance Value Allocated To Renewables

Allowance Value Allocated To Energy Efficiency

Other Allowance Value

Year

Bil

ion

Do

llar

s

The Future is Ours to Invent! In the Short Term:- The U.S. Economy is Re-built on Development

and Deployment of Clean Energy and Technologies

- Energy Efficiency is the “First Tool” in the Arsenal for Fighting Climate Change

In the Longer Term:- U.S. Becomes the Most Energy-Efficient

Economy in the World

Event Format:

Exposition Hall: Business, Government and Other Exhibits from around the world

4 Plenary Sessions: Top business and environmental leaders engage with all conference attendees

24 Executive Dialogue Sessions: 90-minute concurrent sessions organized into 4 end use tracks featuring leading global voices selected by an international committee of experts and peers

Networking Events: Many exciting events where business and pleasure are mixed

Sponsors:

Planning Committee:Organized by an International Steering Committee

Marc BitzerEVP, Whirlpool Corp.President, Whirlpool Europe

Lena Ek MEP (Sweden)

Nobuo TanakaExecutive Director, International Energy Agency

Jean-Pascal TricoirePresident and CEO, Schneider Electric

Claude TurmesMEP (Luxembourg)

Andreas SchierenbeckCEO, Building Automation, Siemens

Thank you!

For More Information….

Alliance to Save Energy1850 M Street, NW

Washington, D.C. 20036

www.ase.org202.857.0666