Changing the Game
Energy Efficiency Policy in the
Obama Administration
Kateri Callahan
President, Alliance to Save Energy
Presentation Overview
A Few Words about the Alliance
 Building to Today – EE Before Obama
 Obama Administration – the “Game Changer”
 The Road Ahead – Forecast for U.S. Climate
and EE Policy

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 Mark Pryor (D-AR) and Jim Rogers, CEO of Duke Energy
Includes 10 Members of Congress – Bi-Cameral; Bi-Partisan
Also includes environmental, consumer, and trade associations heads, state
and local policy makers, corporate executives
Senator Mark
Pryor (D-Ark.)
Jim Rogers, CEO
Duke Energy
Bi-partisan, Bi-cameral Honorary Vice Chairs
What is the Alliance?
Business ▪ 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

Deploying EE in the U.S.:
A Foundation of Public Policy
Codes/Standards

Education/Outreach

Incentives

RD&D

To encourage
technological
innovation
To achieve market
penetration
To gain foothold in
market
To lock in savings for
consumers and businesses
Obama: Building on Recent
Gains in Energy Efficiency

Energy Policy Act of 2005 will by 2020:

Energy Independence and Security Act of 2007 will
by 2030:
- Reduce U.S. energy use by 2%
- Reduce electricity demand by 4%
- Reduce oil use by 0%
- Reduce CO2 emissions by 3%
- Reduce U.S. energy use by 7%
- Reduce electricity demand by 5%
- Reduce oil use by 10%
- Reduce CO2 emissions by 9%
President Obama:
EE Advocate in Campaign
– Reduce electricity use 15% by 2020
– Net-zero energy buildings by 2030
– Commitment to large green energy
component in the economic recovery bill
– Strong commitment to climate
legislation
– Investment incentives for “livable
cities”
10 months later….
 Sticking
to his word on EE?
“No single issue is as imperative to the economy as energy”
(January 2009)
 An
impressive track record
- New Budget
- Stimulus package
- Climate/energy bills
- Executive Orders
- New Agreements with China
A Big Year for Energy Efficiency
in Public Policy
Obama’s
election
platform
Stimulus
package
President’s
Fiscal Year
2010
budget
Executive
Order, EE
in federal
agencies
President’s
new CAFÉ
standards
American Clean
Energy and Security
Act (ACES)
House PASSES
ACES (6/26)
Ongoing approps
in House and
Senate climate &
energy bills
DOE: new
lighting
standards
HVAC
standards
agreement
Outdoor
Lighting
standards
President Obama’s
FY 2010 Budget: A+ in EE
108% Increase Over FY 2009 Request, including:


$10 million increase for the industrial sector
$98 million increase in the Department of Energy’s (DOE)
Building Technologies Program
– includes $10 million for building energy codes.
 $10 million for the Federal Energy Management Program
 $25 million increase for the State Energy Program
 increases for DOE’s ENERGY STAR program, commercial
buildings, residential buildings, R&D, and equipment standards.
Stimulus: $65B Related to Energy Efficiency
Funding in Millions of US Dollars
Projected EE Funding, 2006-2012
$25,000,000
$20,000,000
Stimulus
$15,000,000
Federal EE
CEE Efficiency
$10,000,000
Utility DSM
$5,000,000
$2006
2007
2008
2009
2010
2011
2012
ARRA: Built on the Five Pillars of
Good Public Policy





RD&D
– Smart Grid ($4.5 bill)
– DOE RD&D ($2.25 billion)
Incentives
– Extension of tax incentives
Codes & Standards
– “Conditions” State funding on strong building codes
Education & Outreach
– State Energy Star rebate programs ($300 million)
Government Leadership by Example
– Federal “High-Performance Green Buildings” ($4.5 billion)
Leadership by Example

October 2009, Executive Order:
- Use federal buying power to motivate vendors, contractors, and
others in the federal supply chain to take their own actions to
limit greenhouse gas emissions in production, operations, and
transport
- Make public the annual “scorecard” results for each agency – an
important step towards public accountability and ensuring that
the provisions of the order remain as priorities for federal
agency managers.
- Re-institute the Presidential Leadership Awards, an important
step in underscoring the president’s priority on individual and
agency leadership in energy efficiency and sustainability within
the federal government.
- Create sustainability officers for each agency.
On the Horizon…
…More Energy
Efficiency?
Can Obama take U.S. there?
The “Game Changer”:
Obama as EE Champion
“Our Future is What We Build it to Be”
- President Barack Obama
*$65 Billion in Stimulus Available for EE
*Weatherize 1 million homes/year
*Improve efficiency of federal buildings
*Control carbon emissions
*Create hundreds of thousands of “green
jobs”
• The end of “Politics as Usual”?
• Redefining “Business as Usual”
Energy and Climate Leg.
ACES 2009
ACELA
CEJAPA
Intro by Sens. Kerry
Passed House 26 June Passed Senate ENR
Comm. 17 June
and Boxer 23 Oct.
Standards + incentives
Energy bill similar to
Firm cap: 20%
to promote clean
ACES, but with no
reductions 2020;
energy tech, firm
cap-and-trade
80% by 2050 from
cap on GHG
provisions
2005 levels
emissions
Savings by 2030:
Expected to be
Savings by 2030:
4.3 quads
combined with
8.8 quads
$36B for consumers
ACELA before floor
$62B for consumers
($240/household)
consideration
($486/household)
The role of energy efficiency in
climate legislation
 Energy efficiency is used as a cost containment and new

jobs tool
In ACES, energy efficiency provisions alone would:
 Save American households about $154 per year in 2025.
(EPA)

 Reduce carbon allowance price by 1.5 percent between
2015-2050. (EPA)
On the whole, ACES would create on average 120,000 new
energy efficiency jobs nationwide each year between 20122020.(Center for American Progress)
Climate & Energy Bill Outlook



Senate
- Has Adopted Energy “Piece”
- Will consider climate “Piece” in early 2010
House
- Adopted Climate & Energy bill in June
Additional Support for Energy Efficiency in legislation
- Significant Funding through CO2 Allowances (House bill)
- Building Labeling Programs (both)
- Utility Energy Efficiency Resource Standards (both)
- Innovative Finance Programs (both)
- Appliance Standards (both)
- And much more…..
On Cap-and-Trade
Source: Navigant Consulting, Price Signals and Greenhouse
Gas Reduction in the Private Sector, 2009, p.5.
On Copenhagen and
International Accords
“Our aim is not a partial accord or political
declaration, but rather an accord……has
immediate operational effect.”
President Barack Obama in China yesterday.
China Clean Energy Agreements Include:
$150M Clean Energy Research Center
EE Action Plan
Mayors Sustainable Cities Program
Annual Energy Efficiency Forum
Codes and Standards Harmonization
Forecast for U.S. Energy
Efficiency Policy




Climate Change Legislation with Strong EE
Components
- Building Codes
- Appliance Standards
- Innovative Financing Mechanisms
- Significant Funding from Allowances
“Evergreen” Stimulus Funding
- Revolving Loan Funds
- Workforce Training
Continued Federal Investment
- Federal Energy Management
- RD&D
- Tax Incentives
Binding International Climate Treaties
Business, programmatic and technical experts will highlight and discuss best
practices for employing energy efficiency to reduce emissions while maintaining, if
not improving, bottom-line corporate and economic growth. Case studies from
both developed and developing countries will be analyzed.
Panel chairs: Lena Ek, MEP Sweden
Claude Turmes, MEP Luxembourg
Speakers:
Eelco van Heel, CEO, Rockwool International A/S
Andreas Schierenbeck, CEO Siemens Building Tech.
..and senior level speakers from:
Honeywell, Schneider Electric, Google, USGBC, and NRDC
Thank you!
Kateri Callahan
President, Alliance to Save Energy
kcallahan@ase.org
+1-202-530-2219