Clean and Sustainable Energy Technology:Clean and Sustainable Energy Technology:EPA Programs and New InitiativesEPA Programs and New Initiatives

Julie Rosenberg, U.S. EPA

State & Local Clean Energy-Environment Programs

Climate Protection Partnership Division

Clean and Sustainable Energy Conference

Atlanta, GA

December 11-12, 2007

2

Important Time for Clean Energy

Convergence of environmental - resource - economic issues

Clean energy offers cost-effective solutions Energy efficiency, renewable energy, combined heat and power

EPA efforts to overcome barriers and help clean energy compete ENERGY STAR National Action Plan for Energy Efficiency Clean Energy-Environment State Program Green Power Partnership Combined Heat and Power Partnership Climate Leaders Climate Technology Initiative

3

Broad Benefits of Clean Energy

Environmental Lower greenhouse gas emissions and criteria pollutants Lower water use

Utility System Quick fix with longer term benefits Improve security of electricity and gas systems Lower peak demand / improve reliability Diversify utility supply portfolio Reduce environmental regulatory risk to utilities

Economic Lower cost compared to new generation and transmission Downward pressure on natural gas prices Lower wholesale electricity prices Improved local economy Improved service to low income and seniors

4

Energy Efficiency is…

Large Resource

More than 50 percent of gas and electric growth can be offset cost-effectively

Low cost now

Fraction of new generation

Stays low cost – what ever the future price of carbon

3,500

4,000

4,500

5,000

5,500

2004 2008 2012 2020 2024

Con

sum

ptio

n (B

illi

on k

Wh)

Future Electricity Demand Scenarios

BAU

Range of Studies

2016

50% of Growth

5

Barriers to Clean Energy

Information Technology Options Costs and Benefits

Technical Assistance Transaction Costs Split Incentives Objective Measurement Tools Contradictory Policies and Regulations

6

EPA Programs Designed to Overcome the Barriers

Information Technology Options Costs and Benefits

Technical Assistance Transaction Costs Split Incentives Objective Measurement Tools Contradictory Policies and Regulations

7

Strategic Role of EPA’s Clean Energy Programs

Helping Markets Work Break down barriers Capture cost-effective GHG reductions

Lock in reductions now where there is a net benefit

Provide near-term solutions while others invest in long-term R&D programs Establish an environment for investment

Complement other policies ie: codes and standards

8

ENERGY STAR

Broad national, credible platform for EE Residential – 50+ products Commercial - existing and new buildings

Cost-effective platform for investors and policy makers Helps lower program administration costs Reduces start-up time Provides valuable lessons learned Provides access to a network of partners

Partners with key market actors – 9,000+ partners Major manufacturers and retailers Builders Utilities / system benefits charge administrators

• 60% of utility customers 40+ States

National recognition - >65% of public

Platform for the new Climate Technology

Initiative

9

ENERGY STAR is Guiding Building Investments Across the Country Commercial/Public Buildings

being rated for upgrade potential 6 billion square feet rated

(30,000+ buildings) 10,000+ schools 3,200 - ENERGY STAR top

performers Also addresses water use

ENERGY STAR Challenge 30+ states / DC improve building efficiency >10%

ENERGY STAR new homes ~200,000 in 2006 – 1 in 10

NEW: Home Performance with ENERGY STAR improvements to existing homes

10

ENERGY STAR Industrial Program

Grown to include 10 industrial sectors Offers:

Plant-level performance metrics; Peer exchange; and Sector-specific barriers and

opportunities.

Manufacturing plants now qualifying for the ENERGY STAR

Industry relationships provide

foundation for the Climate Technology

Initiative

11

Clean Energy Supply ProgramsGreen Power Partnership

Supports companies and organizations that purchase green power voluntarily.

Provides technical and marketing assistance.

> 800 Partners purchasing more than 10 billion kWh.

Green Power Fortune 500 Challenge – goal is to double the green power purchases of Fortune 500 corporations from 2.5 billion kilowatt-hours (kWh) annually to at least 5 billion KWh each year.

In final stretch and closing in on KWh goal.

Combined Heat and Power Partnership

Provides state governments, major energy users, the CHP industry and other clean energy stakeholders assistance in promising markets and sectors.

> 230 Partners deploying > 3,500 MW of new CHP since 2002.

Focused in:

Regions with high electricity prices such as CA and New England,

Conducive market sectors: ethanol refineries, municipalities, wastewater treatment, hotels/casinos, and datacenters

Using woody biomass as a clean, renewable and cost-effective fuel for CHP.

Advanced technologies inform emerging technologies

12

Climate Leaders

Leveraging momentum in the business community for aggressive climate change actions

153 companies representing 9 percent of total U.S. GHG emissions

80 partners have announced aggressive GHG reduction goals

11 partners have achieved goals since 2002

13

National Action Plan for Energy EfficiencyGoal: Create a sustainable, aggressive national commitment to energy

efficiency through gas and electric utilities, utility regulators, and partner organizations.

5 key recommendations from 50-member Leadership Group in 7/06 Recognize energy efficiency as a high-priority energy resource; Make a strong, long-term commitment to implement cost-effective

energy efficiency as a resource; Broadly communicate the benefits of and opportunities for energy

efficiency; Provide sufficient, timely and stable program funding to deliver energy

efficiency where cost-effective; and Modify policies to align utility incentives with the delivery of cost-effective

energy efficiency and modify ratemaking practices to promote energy efficiency investments.

Vision for 2025 includes implementing: State of the Art Efficiency Information Sharing and Delivery

Systems Advanced Technologies Utilities and PUCs

counting on new technologies

14

Clean Energy-Environment State Program

Works directly with states and locals to implement clean energy polices and programs that generate multiple benefits: GHG/environment, energy and economic.

Program Offerings:

•Best Practice Guidance

•Tools and Analyses

•Peer Exchanges

•Technical Assistance

•Formal Partnership for States States can fund

emerging technologies

15

NEW EPA Climate Technology Initiative - Emerging Technologies

ENERGY STAR mass market consumer cost-effective (2 to 3 year payback) proven technology no sacrifice in performance reliable savings – easy

design, installation, and maintenance

New Climate Technology Initiative

New recognition program Partnering with ‘champions’

to complement EPA competencies

Builds upon EPA’s clean energy market and program expertise

16

NEW EPA Climate Technology Initiative

Stakeholder Conference Climate Technology Initiative Conference - October 2007 75 experts

Key findings drive EPA’s direction as we develop the new imitative:

Climate change has created a market for new technology; EPA Can and Should Play a Fundamental Role;

Speed commercialization of environmentally superior technology; Protect the ENERGY STAR brand; Develop unique recognition programs; Promote emerging technology at every stage of development; Concentrate on technologies within EPA’s core competencies; Leverage partners who complement and supplement core

competencies; and Define new product carbon performance standards.

Next Steps EPA assessing options for technology pilots – winter/spring ‘08

17

Julie Rosenberg

rosenberg.julie@epa.gov

(202) 343-9154

http://www.epa.gov/cleanenergy/