Attended by Approximately 300 key White House and congressional policy makers and their staff, related think-tanks and science and technology-based academic organizations, this event was intended to provide a platform for key U.S. opinion leaders and technological experts to discuss global climate change and the preservation of the natural environment, and to inform key U.S. policy makers of the latest technologies for the realization of a low-carbon, energy-saving society. Kateri spoke on the panel, Conserving Energy through Policy, Technology and Lifestyle, describing the ways in which good policy, market transformation and smart consumer campaigns are necessary to nurture an energy-efficient lifestyle, and one that is aware of energy efficiency and conservation as a solution to global climate change.

1. The Energy Efficiency Lifestyle:
Four Major Ingredients
Kateri Callahan, President, Alliance to Save Energy
Hitachi Climate Change Forum
Washington, D.C.
Thursday, March 5, 2009

2. Overview
A Few Words About the Alliance

Energy Efficiency: The World‟s Greatest Resource

Driving Energy Efficiency: Four Pillars

- Prices Matter: High Energy Costs = Savings
- Building Energy Efficiency Codes and Standards: Moving
inefficient construction and products out of the market
- Consumer and Student Education & Awareness:
Transforming Markets, Green Collar Training
- Good Public Policies: The Cornerstone of an Energy-
Efficient Society
Our Energy Future


3. What is the
Alliance to Save Energy?
Mission:
To promote energy efficiency
 Policy
Leaders
worldwide to achieve a
healthier economy, a cleaner
environment, and greater
energy security.
The Alliance is… Environ-
Business The Alliance to
Staffed by 50+ professionals
 mental
Leaders Save Energy
Groups
31 years of experience in

policy, research, education,
communications, technology
deployment and market
transformation
Academia

4. Alliance Directors: Bi-Partisan
Elected Officials & Industry Leaders
Guided by a 37-Member, elected Board of Directors

Leaders of environmental, consumer, and trade

associations; state and local policy makers; corporate
executives
Senator Mark Jim Rogers, CEO Bi-partisan, bi-cameral Honorary Vice Chairs
Pryor (D-Ark.) Duke Energy

5. 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

6. Why 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 in 2007
Energy Efficiency and Conservation 50
40
Petroleum
24
Natural Gas
Coal 23
8
Nuclear Electric Power
4
Wood, Waste, Alcohol
3
Conventional Hydroelectric
1
Geothermal, Solar and Wind
0 10 20 30 40 50 60
Quads
Alliance to Save Energy,
Energy Efficiency and Conservation 2007 Domestic Production Net Imports
November, 2008

7. Prices Matter: Global Economic
Impacts of Energy Use
Source: McKinsey Global Institute

8. Prices Matter: EE = Cheap, Quick
“First Response” to Climate

9. The Challenge? Market
Distortions
Principal Agent or “Split Incentives”

- Home builder versus buyer
- Utility versus customer
Transaction Costs

- Lack of information on life-cycle cost for products and/or
paybacks for upgrades
Lack of Investment in RD&D and EE Programs

Public Policies Essential

 Consumer Education & Outreach Essential

10. Energy Prices Matter:
Consumer Behavior

11. Prices Matter: High Costs =
Behavior Modification

12. Building Energy Codes &
Appliance & Equipment Standards
Transform Markets

- Eliminates availability of inefficient products and
construction
- Makes energy efficiency part of the package –
consumers don‟t have to think about it
- Building Codes “Lock In” Savings for Decades

13. Driving Efficiency through Codes
and Standards…..
Federal Legislation Pending

- Would Drive 30% Improvement in Residential and
Commercial EE Codes by 2010; 50% by 2020
2009 Model Energy Code for Homes: IECC

Improves Efficiency by approximately 13% over
2006
- EECC Sought 30% Improvement
ASHRAE Goal (Commercial) is a 30% Improvement

in Efficiency in the 2010 Code Cycle

14. Light Bulb Standard
U.S. set performance standards for general service

light bulbs, starting in 2012-2014
25-30% savings: will phase out traditional

incandescent bulbs
Second standard in 2020 must achieve roughly 65%

savings
Most significant appliance standard ever adopted

- Will reduce CO2 by 100 Mt/yr. by 2020
- Will save $13 billion annually

15. Mobilizing Our Best
“Weapon”: Consumers
The foundation is there:

According to EnergyPulse 2008, 88.2% of
–
surveyed consumers report a positive
association with the term „energy efficiency‟
Consumer Education & Outreach is the way

forward:
– Innovative campaigns emphasizing energy-efficient
lifestyles
– Focus on “pocketbook” and personal/family benefits

16. Consumer Campaigns
at the Alliance
Energy Hog
Super Powers
DOE, Ad Council, Alliance, States
EPA, NYSERDA, Alliance
All Media Outlets
Nationwide TV & Radio
Web, Collateral Materials
(ABC, CBS, CNN)
Consumer Website
P&G ColdWater Campaign
Powerful $avings
P&G, Alliance
DOE & Alliance Partnership
All Media Outlets & Web
All Media Outlets
The Power is In Your Hands
Eureka $mart House
Industry, DOE, EPA, Alliance
Energy-Efficiency Challenge
All Media Outlets, Web &
NBC Universal, Industry, DOE, Alliance
Collateral
On Air, Web–Home Makeover Contest

17. The Drive $marter Challenge
(www.drivesmarterchallenge.org)
Billboard advertising Interactive
Website
Extensive media coverage
Corporate support
Celebrity support Government support Driving & Car
Maintenance
Tip cards

18. Driving Energy Efficiency Through
Education: Green Schools Program
Creating powerful advocates for
energy efficiency
Tomorrow: Students are the
energy users, citizens of
tomorrow -- they can gain
deep understanding of
energy/environment link
Today: Students can
advocate for energy
efficiency to their
parents, schools and
communities, and conduct
credible research

19. But Citizens Want Help…
“Who Are You Going to Call…?
.....The Government!”

20. A History of Policy Progress
(Slowly but Surely!)
Energy Policy Act of 2005 will by 2020:

- Reduce U.S. energy use by 2%
- Reduce electricity demand by 4%
- Reduce oil use by 0%
- Reduce CO2 emissions by 3%
Energy Independence and Security Act of 2007

will by 2020 (2030):
- Reduce U.S. energy use by 4% (7%)
- Reduce electricity demand by 4% (5%)
- Reduce oil use by 5% (10%)
- Reduce CO2 emissions by 5% (9%)
Estimates from ACEEE, ASE

21. On the Horizon…
…More Energy
Efficiency?

22. President Obama:
Energy Efficiency Advocate
– 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”

23. The First Step: American Recovery
& Reinvestment Act 2009

24. ARRA: Big on EE
$20 billion for EE :
• $5 billion for the Weatherization Assistance Program, which will go a long way
in meeting President Obama‟s goal of weatherizing one million homes per year
while creating an estimated 32,000 jobs in the auditing and retrofitting industries;
• $4.5 billion to make 75 percent of federal buildings more energy efficient;
• $3.1 billion for the State Energy Program (SEP), which delivers important
energy efficiency services and innovations in every state; the language contains
incentives for states to adopt utility regulatory reform and stronger building energy
codes; this program has the needed infrastructure to quickly absorb the new
funding and create new jobs;
• $300 million for state matching grants for rebates to consumers who purchase
higher-tier energy-efficient appliances;
• $3.2 billion for Energy Efficiency and Conservation Block Grants (EECBG) that
will allow state and local governments to aggressively implement energy efficiency
programs;
• $400 million of the EECBG funds to be awarded on a competitive basis; and
• More than $8 billion for state and local government investments in public
transportation.

25. Market Transformation:
Federal Tax Incentives
New Homes
Builder tax credit - up to $2,000 if 50% more efficient
compared to 2003 IECC code; $1,000 for an Energy Star
manufactured home. (Through December 31, 2009)
Existing Homes
Homeowner tax credit – 30% of cost of installing building
envelope components consistent with IECC 2000; capped
at $1500. (Through December 31, 2010)
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!

26. RE & EE: Key Ingredients to
Climate Change Legislation
Estimated Allowance Allocation under Boxer Substitute
Amendment to Climate Security Act
$350
$300
$19
$19
$19 Allowance Value
$18 Allocated To Renewables
$45
$250 $44
$44
$16
$41
Bilion Dollars
$15 $38
$200
$34
$13
Allowance Value
$29
$11
$150 Allocated To Energy
$25
Efficiency
$100
Other Allowance Value
$50
$0
2015 2020 2025 2030 2035 2040 2045 2050
Year

27. The Future is Ours to Invent!
Near-Term Promise:

- The U.S. Economy is Re-built on Development
and Deployment of Clean Energy and
Technologies
Mid-Term Promise:

- Energy Efficiency is the “First Tool” in the Arsenal
for Fighting Climate Change
Long-term Reality?:

- U.S. Becomes the Most Energy Efficient Economy
in the World

28. Planning Committee:
Organized by an International Steering Committee
Marc Bitzer Lena Ek Andreas Schierenbeck Nobuo Tanaka Jean-Pascal Tricoire Claude Turmes
EVP, Whirlpool Corp. CEO, Building Executive Director, President and MEP (Luxembourg)
MEP (Sweden)
President, Whirlpool Europe Automation, Siemens International Energy Agency CEO, Schneider Electric
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:

29. Thank you!
For More Information….
Kateri Callahan
President
Alliance to Save Energy
1850 M Street, NW
Washington, D.C. 20036
kcallahan@ase.org
www.ase.org
202.857.0666