welcome to the brooklyn, new york technology & market ...€¦ · utility energy efficiency...
TRANSCRIPT
Welcome to the Brooklyn, New York
Technology & Market Assessment ForumOctober 6-8, 2010 • New York Marriott® at the Brooklyn Bridge
Welcome to the Brooklyn, New York
Technology & Market Assessment ForumOctober 6-8, 2010 • New York Marriott® at the Brooklyn Bridge
Federal Energy Legislation Update
Role of Energy Efficiency in Federal Policy
Energy Solutions CenterNew York Marriott at the Brooklyn Bridge Hotel
Brooklyn, New York
October 6, 2010
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
About the Alliance
About the AllianceThe 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 and Peter Darbee, President and CEO of Pacific Gas and Electric
- Includes 14 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 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
Milestone Energy Efficiency lawsYear Statute
1975 Energy Policy and Conservation Act
1976 Energy Conservation and Production Act
1978 National Energy Act
1989 National Energy Conservation Policy Act
1992 Energy Policy Act of 1992
2005 Energy Policy Act of 2005
2007 Energy Independence and Security Act of 2007
2009 ARRA (Stimulus Bill)
Major Energy Efficiency Programs Year Statute Residential Commercial Industrial Transport Electric Federal/State
Government
1975 Energy Policy and Conservation Act
§340 Industrial Equipment Efficiency
§321 CAFE for cars and light trucks
§381 Federal Conservation Programs;
1976 Energy Conservation and Production Act
Low-income home weather-ization; appl. eff stds
EPCA §361 State Energy Programs
1978 National Energy Act Energy efficiency tax credits
Energy efficiency tax credits
PIFUA PURPA §210, PIFUA
NECPA; EPCA §381, 382 Fed’l efficiency standards
1989 National Energy Conservation Policy Act
EPCA §321 Consumer Appliance Efficiency
EPCA §400 Alt fuel use in light duty vehicles
§210 Utility conservation program
EPCA §400 Federal fleet requirements; state program update; ESCOs
1992 Energy Policy Act of 1992
Model energy eff. building codes; appl and window stds
Comm office equipmt eff stds
§131 indust. efficiency grants
Utility energy efficiency grants
§157 Fedl energy training, audits, procurement
2005 Energy Policy Act of 2005
§135 Appliance stds, 124 eff appliance rebates
Eff standards for commercial equipment
Fuel efficiency studies
Net-metering,Interconnect standards, PURPA relief
§101 Energy saving measures in Federal buildings
2007 Energy Independence and Security Act of 2007
Light bulb and consumer appliance standards
Institutional Grants and Loan; Zero-energy Comm Bldgs
EPCA §371 Industrial Waste Energy Recovery
§101, new CAFE Stds;
Title XIII, Smart Grid policy
§141 Fed fleet reqs; §431,521 high perf Fed bldgs; §541 EECGB
2009 ARRA (Stimulus Bill) Weatherization funding for low-income homes
Electric vehicle and battery funding
Smart grid funding; transmission study funding
State Energy Office Funding; EECGB Funding
Energy Efficiency is Our Greatest Resource
52
1
3
4
8
19
23
35
0 10 20 30 40 50 60
Geothermal, Solar and Wind
Conventional Hydroelectric
Biomass
Nuclear Electric Power
Coal
Natural Gas
Petroleum
Increased Efficiency (Compared to 1973)
Alliance to Save Energy, August 2010
Figure 1 - America's Greatest Energy Resource Sources of U.S. Energy in 2009
(Quads)
Increased Efficiency (Compared to 1973) 2009 Domestic Production Net Imports
The Advantages of Energy Efficiency Most abundant potential energy source Shortest lead-time & lowest cost source of energy
The Advantages of Energy Efficiency Most abundant potential energy source Shortest lead-time Lowest cost incremental source of energy Utilizes many on-the-shelf technologies Cleanest – no incremental emissions Wholly domestic Least obtrusive – no land use impacts Lowers energy costs across the board Keeps producing indefinitely… non-depletable energy
source Zero carbon, reduces use of carbon-based energy
The Disadvantages of Energy Efficiency Requires hundreds of millions of individual decisions Almost all of which are driven primarily by factors other
than energy With significant individual transaction costs Usually requiring significant up-front capital investment Usually under State or local law or regulations Requires efforts to measure and verify
Energy Efficiency’s Largest Disadvantage is Political Not enough economic stakeholders who see energy
efficiency as key to their future Lack of constituent demands for pro-energy efficiency policy Reluctance to change long-time incentives Uncertainty of short-term federal tax incentives Credit crunch in today’s economy, Federal budget constraints
EE Provisions of Waxman-Markey
• Buildings– New building advanced energy efficiency codes*– Existing building retrofits*– Manufactured homes replacement rebates*– Building labeling program*– CEDA Funding for Tax-Financed Loans*– GREEN Act
• Appliances– Codifies certain new lighting standards for outdoor and portable lights– New appliance standards for several classes of equipment– Upgrades DOE standard-setting process– Encourages “best-in-class” appliances, smart appliances
* Funded through ACES carbon emission allowance allocations
Demise of climate legislation and slim prospects for energy bills
Alliance advocacy for energy bill priorities in July and early August;
Introduction in July of the “oil spill” bill by Senator Reid --- (S.3663) Clean Energy Jobs and Oil Company Accountability Act of 2010
Reid announcement in early July that comprehensive energy & climate legislation would not be enacted; Factors in failure of climate bill: partisan gridlock & pending
mid-term elections; WH did not press the issue; Alliance & other advocates shifted message to stress urgency
of passing an energy bill this year with RES/EERS; codes; appliance standards and other key provisions;
Implementation of National Consensus Agreements (appliances) Bi-partisan RES bill (S. 3813), requiring utilities to generate 15% of
their electricity from renewable sources by 2021 (up to ¼ of the requirement can be met by EE; 27 co-sponsors but need 60
Major push from wind, solar on RES bill bill is identical to the ACELA RES Graham alternative bill has nuclear, clean coal Much depends on mid-term elections Next year: smaller, piecemeal “chunks” Republican “repackaging” of climate issues? Constrained federal budget for EE programs; Energy efficiency financing, revolving funds will be key issue
Outlook for Lame Duck and Beyond
Other Lame Duck Candidates for Floor Action this year Bingaman wants new DOE loan
guarantee program; He is also advocating for CEDA + oil
spill bill in lame duck; Rockefeller bill (S. 3072) delays EPA
regulation of stationary sources for two years (not vehicles)
Reid bill on natural gas vehicles and electric vehicles (S.3815);
Tax bill/extenders; Extend clean energy manufacturing
tax credit
American Recovery and Reinvestment Act $26B for core efficiency programs Money obligated, but not fully spent in five key programs: State Energy Program Appropriated: $3.1 billion Spent: $0.5 billion (16%)
Energy Efficiency and Conservation Block Grants Appropriated: $3.2 billion Spent: $.4 billion (12%)
Weatherization Assistance Program Appropriated: $5.0 billion Spent: $1.5 billion (31%)
Appliance Rebates Appropriated: $300 million Spent: $187 million (63%)
Smart Grid Grants and Demonstration Appropriated: $4.2 billion Spent: $.3 billion (8%)
ARRA EE spending to date Of these programs, about $3 billion (about 18%) has been
spent as of September 17: - Low estimate: only funds associated with completed projects
can be counted as “spent.” Also does not account for private investment in stimulus funded projects.
- DOE has overcome major federal hurdles (NEPA, Davis-Bacon, etc.)
Thank You!Brad [email protected]