Energy-Efficient Buildings of Tomorrow: Built on a Policy

Cornerstone Today 

Panel Discussion Hosted by the North American Insulation Manufacturers Association (NAIMA)

Greenbuild, Boston, Mass. November 20, 2008

Overview

A Few Words About the Alliance Energy Efficiency: The Story So Far Buildings: Big Appetite for Energy Realizing the Potential: A Call to Action Policy Forecast: Cloudy, With a Chance of

Energy Efficiency

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

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

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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40

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Geothermal, Solar and Wind

Conventional Hydroelectric

Wood, Waste, Alcohol

Nuclear Electric Power

Coal

Natural Gas

Petroleum

Energy Efficiency and Conservation

Quads

2007 Domestic Production Net Imports

Alliance to Save EnergyAugust 2008

Why Do More? U.S. Growth in Energy Use Poses a National Security Threat

Why Do More? Answering the Climate Challenge

Why Do More?Energy Use is a Pocketbook Issue

Why Focus on the Built Enviornment?

Codes: Helping to Cut Global Energy Demand Growth

Source: McKinsey Global Institute

Better Buildings are part of the solution to cutting global energy demand growth from 2.2% to 0.7%

So Far, Work is Being Done… Directly

• At the Federal Level (Legislation + Federal Energy Management leadership)

• At the National Level (National Model Codes)• At the State/Local Level (regional & state initiatives; code

adoption; local adoption & enforcement policy, with enforcement in some states; education)

Indirectly• Federal Programs aimed at emissions reductions

Federal Level Work: EISA 2007…

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

At the Federal Level…EPACT 2005Authorizes Commercial Buildings Initiative (CBI) 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

270

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85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10

FISCAL YEAR

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10% Goal - 1995 (NECPA)

20% Goal - 2000 (EPACT)

30% Goal - 2005 (EO 12902)

35% Goal - 2010 (EO 13123)

25.6% Reduction, 2004 (Preliminary Data)

Actual Energy Use

At the Federal Level….Leadership by Example

Energy savings goals + report cards Public buildings Public procurement

Federal building energy/sq.ft. down 30% in 20 years

At the Federal LevelExtension of Tax Incentives!

New Homes Builder tax credit - up to $2,000 if 50% more efficient compared to 2004 IECCC code; $1,000 for an Energy Star manufactured home. (Through 2009)

Existing HomesHomeowner tax credit – 10% of cost of installing building envelope components consistent with IECC 2000; capped at $500; $200 can apply to windows. (Through 2009)

Commercial Buildings Deduction up to $1.80/sq.ft. for buildings designed to use 50% less energy than ASHRAE-90.1 (Through 2013)

Public Buildings: Assignable deduction!

Federal Legislation Pending- Would Drive 30% Improvement in Residential and Commercial EE

Codes by 2010; 50% by 2020 2009 Model Energy Code (IECC) Improves New Home

Efficiency by approximately 13% over 2006 IECC- EECC Sought 30% Improvement

ASHRAE Goal (Commercial) is a 30% Improvement in Efficiency in the 2010 Code Cycle

Regulations Boost EE for New Federal Facilities by 30% EECC Building on Broad Support Base: the Alliance to Save

Energy and U.S. DOE, Utilities, Businesses, NGOs

At the National Level…..Improving Model Codes

Expand State and Local Official Engagement (their employees vote on I-Codes!)

Enact the Federal Legislation to Set IECC Targets Hold Onto Gains; Adopt Remainder of “The 30% Solution” at

October 2009/May 2010 Supplement Hearings Fight Alternatives to National Model Energy Code – the IECC Recruit Green Homebuilders to Advocate Mandatory Energy

Efficiency Codes Expand Debate to Spotlight Critical Importance of I-Codes to

Media, Industry Leaders, Policy Makers, Other Key Audiences

At the National Level: Realizing the Potential

At the State Level……Great Potential!

2 new building energy codes available for States (the 2009 IECC and ASHRAE 90.1-2007) offer:

Nationwide: 13% boost in new home energy efficiency beyond current model code

Average annual energy cost savings to new homeowner of $246

6-8% average energy savings for new commercial construction beyond the current model code

At the State Level….A Slog???

At the State Level….A Slog???

“Score Card” on Development of Better Building Codes

EPAct 1992- sets national model energy codes

ASHRAE – progressive goals for Standard 90.1

2009 IECC – historic improvement in efficiency (13%)

No long term national milestones for model codes

Insufficient funding for local governments/ building departments

No residential goals set by ICC

Policy: The 2009 Outlook

Good chance for a major energy bill ahead of climate legislation

Push to enact provisions left over from EISA, e.g. building energy codes, and for $$ for authorized but unfunded provisions from EPACT ‘05 and EISA ’07

Energy issues likely to be “front-and-center”- Deepening economic woes - Continuing increases in home and business

energy costs- Growing concern about national security- Urgent need to tackle climate change - Increasing support for “Green Jobs” and for using

clean energy and efficiency as an “economic engine” to create new jobs and a trained workforce

Possibility of Another Energy (Economic) Bill BEFORE Climate Legislation

Forecast for New Congress & Administration

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 Issues Discussion Draft

- Markey Introduces “iCAP” legislation

New President Supports Climate Legislation

Energy Efficiency in Climate Legislation

Alliance Agenda: Writing Energy Efficiency into Law

Possible Building-related Polices to Pursue: - Advanced building energy codes and state green

building grants;

- Appliance standards and labeling

- Building energy use labeling requirement

- Energy performance disclosure at time of sale

- Whole home retrofit incentive/assistance program

- Mortgage rates/accessibility tied to energy performance

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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1960 1965 1970 1975 1980 1985 1990 1995 2000 2005

S ourc e : E IA Interna tiona l Net E nerg y C onsumption T a bles, 1980 - 2005; E IA Interna tiona l P opula tion T a bles, 1980-2005; Wa shing ton S ta te Da ta B ook; U.S . C ensus Da ta ; E IA E nerg y C onsumption E stima tes by E nd-Use S ec tor, 1960-2005, Wa shing ton a nd C a lifornia

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Thank you!

For More Information….

Kateri CallahanPresident

Alliance to Save Energy1850 M Street, NW

Washington, D.C. 20036kcallahan@ase.org

www.ase.org202.857.0666