Cracking the Code: The Key to Energy Efficiency in Buildings

Cracking the Code: The Key to Energy Efficiency in Buildings

• 1.
  Cracking the Code:  g The Key to Energy  Efficiency in Buildings ffi i i ildi Presentation by Kateri Callahan, President Concreto LatinoAmerica 2009 “Model Code System” Panel Discussion:  Model Code System Panel Discussion: Politics and Actions to Promote Energy Efficiency August 18, 2009 August 18, 2009
• 2.
  Overview  About the Alliance  Why Energy Efficiency?    Strong Public Policy:  A U.S. Blueprint to Building  Strong Public Policy: A U S Blueprint to Building Energy Efficiency Codes/Standards Education/Outreach Incentives RD&D
• 3.
  What is the  Alliance to Save Energy?  Alli t S E ?  The Alliance to Save Energy promotes energy efficiency worldwide to achieve a healthier  economy, a cleaner environment and greater energy security. 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  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
• 4.
  Forging Alliances Forging Alliances  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
• 5.
  Why Energy Efficiency? America’s Greatest Energy Resource i ’ Reducing Energy Use, Saving Money, and Powering the domestic economy for  over 30 years: America's Greatest Energy Resource Energy Efficiency and Conservation Improvements Since 1973 Have Reduced Annual Energy Consumption by 50 Quads Energy Efficiency and Conservation 50 Petroleum 40 Natural G N t l Gas 24 Coal 23 Nuclear Electric Power 8 Wood, Waste, Alcohol 4 Conventional Hydroelectric 3 Geothermal, Solar and Wind 0.8 0 10 20 30 40 50 60 Quads Alliance to Save Energy August 2008 2007 Domestic Production Net Imports
• 6.
  Energy Efficiency: EnormousPotential for S i f Savings i ALL Sectors… in S t …and the largest opportunity is in our buildings! Source: McKinsey Global Institute
• 7.
  Why Buildings? Why Buildings?  Buildings use 39% of  ld f energy in U.S., cause  39% of CO2 emissions  Efficient buildings… …reduce stress on power grid and  natural gas supplies …improve air quality and public health …avoid global warming avoid global warming …save consumers money  Source: USGBC
• 8.
  The Challenge?   Market Distortions M k tDi t ti  Principal Agent or  Split Incentives Principal Agent or “Split Incentives” - New versus existing buildings - Home/Commercial builder versus buyer - Landlord versus tenant - Utility versus customer  Transaction Costs - Lack of information on life‐cycle cost for products and/or  paybacks for upgrades b k f d  Lack of Investment in RD&D and EE Programs
• 9.
  Deploying EE in the U.S.:  A Foundation of Public Policy AF d ti f P bli P li Codes/Standards  To lock in savings for  Education/Outreach consumers and businesses  To achieve market  To achieve market penetration Incentives  To gain foothold in  To gain foothold in market RD&D  To encourage  technological  technological innovation
• 10.
  ARRA: Built on Sound Public Policy  ARRA B ilt S d P bli P li  RD&D – Smart Grid ($4.5 bill) – DOE RD&D ($2.25 billion)   Codes/Standards Education/Outreach  Incentives  I ti Incentives – Extension of tax incentives  Education & Outreach Education & Outreach RD&D – State Energy Star rebate programs ($300 million)  Codes & Standards – “Conditions”  USD $3.1 Billion to states on strong building  codes
• 11.
  Research, Development and  Deployment Deplo ment Net ZEB: Commercial Buildings Initiative (CBI)  Goals: - 2030:  New construction net‐zero - 2050:  Entire stock net‐zero  Comprehensive approach (R&D & deployment) 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  Funding from Omnibus 2009 Appropriations bill: Funding from Omnibus 2009 Appropriations bill: - $33 million to initiate - Plus about $50 million from ARRA (stimulus) funds
• 12.
  Incentives New Homes Builder tax credit up to $2,000 if 50% more efficient compared to 2004 IECCC  Builder tax credit ‐ up to $2 000 if 50% more efficient compared to 2004 IECCC code; $1,000 for a home that saves 30% or qualifies for the Energy Star Homes  Program. (Through 2009) Existing Homes Homeowner tax credit – 30% of cost of installing building envelope components;  capped at $1,500 (Through 2010) Commercial Buildings Deduction up to $1 80/sq ft for buildings designed to use 50% less energy than up to $1.80/sq.ft. for buildings designed to use 50% less energy than  ASHRAE‐90.1‐2001 (Through 2013) Public Buildings: Assignable deduction!
• 13.
  Use Incentives, Educationto Penetrate th M k t P t t the Market… ENERGY STAR Qualified Homes Gaining Market Share (2008) Source: www.energystar.gov
• 14.
  A “Game Changer”:   Building Energy Codes Building Energy Codes Makes homes more affordable M k h ff d bl  Overcomes economic barriers  If all states improve codes by 30% over today’s  energy performance, the savings by 2030 equal: - 3 quadrillion Btu in building energy use (5% of current) - $25 billion in annual consumer energy bills - 150 million tons of CO2 (6 billion tons through 2050) 150 million tons of CO (6 billion tons through 2050)
• 15.
  How U.S. Codes are Set How U SCodes are Set  States set codes based on national  models - Independent professional organizations set  national model building codes - DOE determines whether updates save energy - States adopt codes, sometimes with changes States adopt codes sometimes with changes  States required to consider residential  model  States required to adopt commercial  model  But...codes can t happen  But codes can’t happen overnight...
• 17.
  Driving to “Net-Zero”Through Building Energ B ilding Energy Codes  National energy codes with aggressive energy savings targets: - 30% savings in 1 year - 50% savings in 2014 (homes), 2015 (comm.) - 5% more savings every 3 years i  ICC and ASHRAE get first chance, with DOE h l h ith help  DOE sets if they don’t
• 18.
  Building Energy Codes: Adoptionand Compliance  Direct states to adopt and improve compliance - 1 year to adopt - 90% of building space complies within 5 y g p p years - DOE help: funding to states for code implementation  Backstop: Federal code with federal enforcement
• 19.
  Codes Legislation: Status Codes  : Status  In Waxman‐Markey Climate Bill (“ACES”) y ( )  In Senate Energy Bill (“ACELA”)  A Strong Legislative History in 110th Congress - In energy bills:  Energy bills that passed the House (H.R. 3221, 6899)  Senate Leadership Amendment (S. Amdt. 5135)  Rep. Inslee bill (H.R. 6739) R I l bill (H R 6739) - In climate bills:  Lieberman‐Warner Senate bill (S. 2191, S. 3036, S. Amdt. 4825)  Dingell Boucher House climate bill draft Dingell‐Boucher House climate bill draft  Rep. Markey bill (iCAP—H.R. 6186) - In stand‐alone bills:  Dingell‐Boucher bill (H.R. 6729)  Sen. Schumer bill (S. 2078, S. Amdt. 1604)
• 20.
  Climate & Energy Bill Outlook  Climate & EnergyBill Outlook  Senate  - Has Adopted Energy “Piece” with code provisions  - Will consider climate “Piece” in the Fall  House - Adopted Climate & Energy bill with code provisions  Additional Support for Energy Efficiency in legislation Additional Support for Energy Efficiency in legislation - Significant Funding through CO2 Allowances (House bill) - Building Labeling Programs (both) Building Labeling Programs (both) - Utility Energy Efficiency Resource Standards (both) - Innovative Finance Programs (both) - Appliance Standards (both) - And much more…..
• 21.
  Forecast  Promising legislation for the  expansion of energy efficiency in  buildings and of building codes b ildi d f b ildi d - Advantages of Stimulus - More funds for DOE More funds for DOE - American Clean Energy and Security  Act (ACES)  The Future of Codes:  y Universal and dynamic?
• 22.
  Recognizing the efforts of those working to advance  energy efficiency. Award Winners: Deval Patrick, Governor of Massachusetts Dr. Steven Chu, Secretary of Energy, DOE D S Ch S fE DOE U.S. Department of Housing and Urban Development Aquarium of the Pacific Warren County Public Schools (Kentucky) CONAVI and INFONAVIT 3M Company 3M Company
• 23.
  Thank you! Thank you! For More Information…. Kateri Callahan President Alliance to Save Energy 1850 M Street, NW 1850 M Street NW Washington, D.C.   20036 [email protected] www.ase.org 202.857.0666