alliance president kateri callahan at the world energy engineering conference
DESCRIPTION
On October 1st Alliance President Kateri Callahan had the honor of delivering the keynote address at the World Energy Engineering Conference (WEEC) in Washington, DC. With the theme, “Visions for Sustainability and Climate Change”, the conference was attended by over 500 international energy industry professionals keen to learn more about carbon reduction and sustainable business practices. In my presentation, Callahan highlighted opportunities – many of them falling within the provisions of the Energy Independence and Security Act of 2007 – open to both the building and industrial sectors to lower carbon emissions in a cost-effective manner. Energy efficiency is integral to this process, and she shared with audience the myriad of ways that this – our quickest, cleanest and cheapest source of energy – can fuel the industrial and building sectors as they forge that path toward sustainability.TRANSCRIPT
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Realizing the Potential for Energy Efficiency: A New World Energy Order
Presentation,2008 World Energy Engineering Congress
Washington, DC. October 1, 2008
Kateri Callahan, President
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Overview A Few Words About the Alliance New Direction Based on “Tried & True”
Resource Potential for Energy Efficiency in a “New
World Energy Order” Realizing the Potential: A Policy Call to
Action Policy Forecast: Cloudy, With a Chance of
Energy Efficiency
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What is 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… –Thirty years in the making
–Fuel neutral
–Staffed by 50+ professionals
–Active in policy, research, education, communications, technology deployment and market transformation
Business Leaders
Academia
Environmental Groups
Policy Leaders
The Alliance to Save Energy
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What is the Alliance to Save Energy?
A unique NGO formed and still led by Members of Congress
Guided by a 37-Member, Elected Board of Directors
- Led by Senator Mark Pryor (D-AR) and Jim Rogers, CEO of Duke Energy
- Includes 9 Members of Congress – Bi-Cameral; Bi-Partisan
- Also includes environmental, consumer, and trade associations heads, state and local policy makers, corporate executives
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Forging Alliances: Business, Govt. & Public Interests
Sponsorship and participation of more than 150 organizations Involvement by businesses in all economic sectors Initiatives underway in research, policy advocacy, education, technology
deployment, and communications
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Energy Efficiency: Powering the U.S. Economy for 30 Years
America's Greatest Energy Resource Energy Efficiency and Conservation Improvements Since 1973
Have Reduced Annual Energy Consumption by 50 Quads
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Wood, Waste, Alcohol
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Energy Efficiency and Conservation
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Alliance to Save EnergyAugust 2008
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Why Do More?
Growth in Energy Demand is Unsustainable
Global demand grows by more than half over the next quarter of a century, with coal use rising most in absolute terms
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Why Do More? U.S. Growth in Energy Use Poses a National Security Threat
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Why Do More? Answering the Climate Challenge
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WHY DO MORE?????Energy Use is a Pocketbook Issue
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$500
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Natural Gas Heating Oil Propane Electricity
Alliance to Save Energy 2007
Increased Home Heating Costs in Washington
2006-2007 2007-08 Increase
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The Past Versus Present World Energy Order
1990s - EPAct 1992 - Some codes and standards - Labeling- “3 points of light and 997 dim bulbs”
So far in the 21st Century….EPAct 2005
- Appliance standards, tax incentives and a long to-do list
- Reduce CO2 by 3% by 2020 Energy Independence and Security Act of 2007 (EISA)
- CAFÉ Standards; Appliance standards; RD&D
- Reduce energy use by 7%; electricity use by 5%; oil use by 10%
- Reduce CO2 by 9%
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EISA 2007: The Details… In:- Vehicle CAFE standards- Appliance standards- Federal energy management- Certain building standards- R&D program authorizations
Out:- Renewable/Efficiency electricity standard- Building energy code targets- Tax incentives
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Two Areas with Big Potential Savings: Buildings and Industry
Energy Information Administration (EIA)
The Building sectoraccounts for almost½ of the energy consumption in the U.S.
Buildings account forover 70% of total USelectricity consumptionand are responsible forover 40% of CO2 emissions.
Industry accounts for 32% of total U.S. energy consumption.
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Industry: Big Appetite - Big Savings
Source: McKinsey & Company, 2007.
Industry represents 38% of the total global opportunity to reduce energy demand
Source: McKinsey & Company, 2007.
Industry represents 38% of the total global opportunity to reduce energy demand
• U.S. industry consumes 33% of all U.S. energy.
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• The largest 4,000 plants use 58% of U.S. industrial energy.
• A large plant uses as much energy as 20,000 typical homes; A medium-sized plant consumes the same energy as 455 homes.
• For every U.S. plant, there are 320 homes and 685 motor vehicles.
Big bang for the “outreach buck:”
Resources to implement energy-saving measures are
available to help:
“Save Energy Now”
www.eere.energy.gov/industry/
Industrial Plants: Big Energy Savings
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DOE’s “Save Energy Now”: The Results
So far, 608 assessments completed. As of September 2, 2008, 479 plants
have reported the following:
Identified energy saving costs more than $820 million
Implemented energy savings nearly $118 million
Energy savings measures underway or scheduled:
more than $327 million
Identified natural gas savings 78.1 trillion Btu—the amount of natural gas consumed by more than 1 million single-family homes per year
Total potential carbon dioxide (CO2) emissions reduction:
6.9 million metric tons—the equivalent to taking nearly 1.2 million cars off the road
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Codes: Helping to Cut Global Energy Demand Growth
Source: McKinzey Global Institute
Better Building Codes are part of the solution to cutting global energy demand growth from 2.2% to 0.7%
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So…What Do We Need? Better Building Codes
Today’s building codes
affect ALL new buildings
By 2010By 2010: • Almost 5 million new housing units
• Over 233 billion sq feet commercial floor space
By 2020By 2020: • 23.4 million new housing units
• Over 1 trillion sq feet commercial floor space
By 2030By 2030: • Over 41 million new housing units
• Over 2 trillion sq feet commercial floor space
Source: EIA, Annual Energy Outlook 2008
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Dynamic Building Codes for Residential Homes Federal Legislation to Drive 30% Improvement in Residential
and Commercial EE Codes by 2010; 50% by 2020 “30% Solution Campaign” to Insure 30% Improvement in
2009 IECC Residential Building Code Federal Regulations Requiring New Federal Facilities to
Demonstrate 30% EE Improvement Efforts Supported by: the Alliance to Save Energy and U.S.
DOE, Utilities, Businesses, NGOs
Realizing the Potential: Energy Efficient Codes Coalition (EECC)
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Potential Savings From EECC-Advocated “30% Solution”
Cumulative impact (2008 to 2020) 4 quads (1015 Btu) saved nationwide ~230 million metric tons of avoided CO2
Electricity savings equal to the annual output of 131 baseload power plants
Natural gas savings could heat 33 million homes for 1 year
Enough fuel oil to heat over 3.5 million homes Save homeowners $33 billion dollars (at today’s
energy prices)
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Today’s Federal Forecast: Dreary
Climate legislation “dead” in 110th Congress“Conventional wisdom” predicts passage in 2010:
- Cap and trade framework- Cost containment measures- Combination of auction and allocation- Significant funding for RD&D
Energy legislation “dead” as well- No consensus on domestic drilling plans- No money- “Gang of 20” withholding bill until 2009
Energy efficiency and clean energy tax incentives “Outside Chance” of passage
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Energy issues likely to be “front-and-center”- deepening economic woes and a likely crisis
caused by spikes in home heating costs - increasing support for “Green Jobs” and for using
clean energy and efficiency as an “economic engine” to create new jobs and a trained workforce
Forecast for New Congress & Administration
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Good likelihood of major energy bill in 2009 with strong EE Provisions:- Renewable and Energy Efficiency Portfolio
Standards
- Building energy codes
- Tax Incentives
- Authorizations for new RD&D programs Climate legislation not likely before 2010 Meanwhile the states march on!
Outlook for the New Congress & Administration - Energy
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A Look at the U.S Presidential Candidates’ Energy Platforms
ObamaEmergency energy tax rebatesDrilling for domestic oilDeveloping biofuelsDiversifying energy sourcesInvesting in ‘green’ jobs Promoting energy efficiency
McCainExpanding domestic oil and natural gas Reforming transportation Investing in clean energyInvesting in clean coalInvesting in nuclearPromoting energy efficiency
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Forecast for Climate Legislation in New Congress/Administration
The Senate Debate on Climate Legislation (Lieberman-Warner) this past June- Fails cloture 48-36; proponents claim 54 supporters;
opponents claim less than 48 supporters- Calls for a carbon cap-and-trade program- Viewed as a “dress rehearsal” for 111th Congress
House Continues Work- Energy & Commerce Committee Hearings & White Papers- Markey Introduces “iCAP” legislation
Administration agrees to non-binding, international commitment
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Energy Efficiency in Climate Legislation
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A Look at the U.S Presidential Candidates’ Climate Platforms
Obama“Cap and Trade” to Reduce Carbon 80% below 1990 Level100% Auction of Credits$$$$ For Technology/Fuels DevelopmentEnergy Efficiency TargetsCAFÉ IncreasesRenewable Energy and Fuels Targets
McCainClimate Stewardship Act of 2005“Cap and Trade” to Limit Carbon Emissions to 2000 Level by 2010Credit Allowances to Emitters AND Auction$$$$ for Technology Development
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The Challenges Can Be Met: Others are Doing More with Less!
R etail E lec tric ity S ales per C apita
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Thank you!
For More Information….
Kateri CallahanPresident
Alliance to Save Energy1850 M Street, NW
Washington, D.C. [email protected]
www.ase.org202.857.0666