Transcript Business Council for Sustainable Energy

Business Council for
Sustainable Energy
Integrating Energy Efficiency into
New Jersey’s Air Quality Programs
Clean Air Council Public Hearing
April 11, 2007
The Business Council for
Sustainable Energy
Outline
• Review of BCSE: Mission and Members
• The Importance of Energy Efficiency
• Recommendations for Clean Air Council
The Business Council for
Sustainable Energy
Who We Are
• Broad-based industry coalition of energy efficiency,
natural gas and renewable energy interests
• The Council’s coalition includes power developers,
equipment manufacturers, independent generators,
green power marketers, and gas and electric utilities as
well as several of the primary trade associations in these
sectors
• New Jersey members, PSEG, First Environment, Inc.,
Sun Farm Network
The Business Council for
Sustainable Energy
Sample of Council Members
• Energy Efficient Products
– Insulation – NAIMA and PIMA
– HVAC – American Standard/Trane, York International
• Developers, Equipment & Service Providers
– GE Wind, Sun Edison LLC, PPM Energy, Solar Turbines
• Gas & Electric Utilities
– Sempra Energy, NiSource, SMUD, PSEG, PG&E
• Industry Organizations
– Alliance to Save Energy, American Wind Energy Association,
American Gas Association, Solar Energy Industries Association,
Interstate Natural Gas Association of America, National
Hydropower Association
The Business Council for
Sustainable Energy
Energy Efficiency Industry Members
• Energy Efficient Products
– PIMA
– NAIMA
• Equipment Manufacturers
– American Standard/Trane
– York International
– Caterpillar/Solar Turbines
• Industry Organizations
– Alliance to Save Energy
• Service Providers and ESCOs
– Johnson Controls
– Honeywell
The Business Council for
Sustainable Energy
What we stand for:
• Expanded markets for clean energy generation,
distribution and use
– Energy Efficiency
– Renewable Energy
– Natural Gas
• Market-based environmental programs that
•
recognize and reward clean energy technologies
Quantification of the environmental attributes of
clean energy technologies
The Business Council for
Sustainable Energy
What we do:
• Promote clean energy technologies as
solutions
• Support policies that open markets for
clean energy products and services
• Focus on strategic issues and emerging
markets for clean energy industries
– Environmental and emissions markets
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Sustainable Energy
General Comments
• Integrate energy and air quality policies
– Maximize investments
• View design elements of market-based programs
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in holistic fashion
Market-based program very powerful, but will
not provide all the energy efficiency
improvements desired
– Need complementary policies
• Public awareness important role of NJDEP and
Clean Air Council
The Business Council for
Sustainable Energy
Focus of Recommendations for
the Clean Air Council
• Value and benefits of integrating air
quality and energy programs
• Societal and economic efficiencies of
market-based approaches
• Incorporating energy efficiency and clean
generation into market-based programs
• Importance of complementary policies
The Business Council for
Sustainable Energy
The Importance of Efficiency
• Energy efficiency is the quickest, cheapest
and cleanest way to meet growth in
energy demand and reduce air quality and
greenhouse gas emissions
– Buildings account for 40% of total U.S. carbon
emissions per year
– Energy efficiency measures and
products/technologies can reduce energy use
in buildings by 25%, and emissions by 10%
The Business Council for
Sustainable Energy
Benefits of Energy Efficiency
Energy efficiency programs could save:
• 1/2 of the typical cost of new power sources and
• 1/3 of the cost of natural gas supplies
(National Action Plan for Energy Efficiency, July 2006)
Every federal $ spent on Energy Star saves:
• About $75 in consumer energy bills
• Reduces 3.7 tons of CO2 emissions, and
• Contributes over $60 to the economy
(Alliance to Save Energy)
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Sustainable Energy
What This Means for Energy Efficiency
The environmental benefits of energy
efficiency should be recognized and
rewarded under climate change and
other emissions programs
The Business Council for
Sustainable Energy
Energy Efficiency, Air Quality
and Climate Change
• Lowest cost and easiest option to reduce
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emissions
Supply- and demand-side efficiency options
abound
Challenging to incorporate into market-based air
quality and climate change programs
– Energy efficiency loves cap-and-trade, but cap-andtrade does not always reward energy efficiency
• Program design matters
• Allocation policy; set-asides and offsets
The Business Council for
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Implications for Energy Efficiency
• Emissions programs will make energy efficiency
investments more attractive
– Raise public awareness
– Lower cost
– Create new financing vehicles
• Emissions programs can drive higher building
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code standards and appliance standards
Expand consumer rebates
Create Energy Efficiency Resource Standard
The Business Council for
Sustainable Energy
Why Market-Based Programs
• Take advantage of economic efficiencies and
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provide flexibility that permits choice in
compliance
Lowers the cost of compliance
Create financial incentives for over-performance
and technology innovation
Create new financing vehicles
Examples in NJ: NOx Budget Trading Program;
RGGI, RPS
The Business Council for
Sustainable Energy
Incorporating Energy Efficiency
into Market-Based Programs
• Supply-side efficiency can be addressed
through emissions allocation policy
– Adopt updating, output-based allocation
• Values negawatts
– Establish set-aside for small clean generation
(CHP; renewables)
The Business Council for
Sustainable Energy
Incorporating Energy Efficiency
into Market-Based Programs
• Demand-side management projects more
•
challenging
May receive auction revenue or be able to
generate emissions offsets
– Offsets
• Need Aggregation: Quantify the emissions benefits to provide
alternative revenue streams to purchase energy efficient products
and services
• MMV criteria and must demonstrate that they are beyond
business as usual (prove “additionality”)
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Sustainable Energy
Complementary Policies
• Decoupling
– De-linking profits from sales of energy and
natural gas
• Energy Efficiency Resource Standard
– Separate tier to RPS -- do not dilute
renewabls target
– Consistent timeframe as RPS - 2021
• Code and Beyond Code Programs
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Sustainable Energy
Please contact Lisa Jacobson,
BCSE Executive Director, with questions
1620 Eye Street, NW
Suite 501
Washington, DC 20006 USA
Phone: 202.785.0507
Fax: 202.785.0514
www.bcse.org
The Business Council for
Sustainable Energy