1. Federal Energy Efficiency Legislation & Initiatives Keystone Energy Efficiency Alliance Energy Efficiency Conference 2013 Brian T. Castelli Harrisburg, PA October 1, 2013

2. 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. Organization: Staffed by 60+ professionals 35 years of experience $17 million annual budget Recognized as a premier energy efficiency organization Active in policy advocacy, research, education and communication 140+ organization Members in all economic sectors Policy Leaders Environmental Groups Academia Business Leaders

3. What is the Alliance to Save Energy? Nonprofit organization headquartered in U.S.; operations worldwide Led by Senator Mark Warner (D-Va.) and Tom King, Chairman of the Board and President, National Grid US Board includes 16 Members of Congress – Bi-Cameral, Bi-Partisan

4. A Vision for How: Alliance Commission on National Energy Efficiency Policy Goal: – Double U.S. energy productivity (2x GDP from every unit of energy) by 2030 Scope: – Cover all sectors of the economy – All levels of government + private sector Principles: – Bold but also actionable – Respect appropriate roles of government(s) – Engage and excite public opinion leaders

5. Recommendations cover all sectors of the economy – Power sector (Generation & Smart Grid) – Buildings (Residential & Commercial) – Mobility (Transportation, Land Use & Accessibility) – Industry (Manufacturing) Recommendations are actionable and geared to federal, state and local government, and private sector Strategies: Alliance Commission on National Energy Efficiency Policy

6. Commission Goal: Double Energy Productivity by 2030

8. Federal Recommendations Consider household energy and transportation costs when underwriting federal mortgages Make all cost-effective energy improvements to federal buildings and fleets Establish guidelines and rules for residential PACE financing End delays and update standards and codes Develop building energy ratings, benchmarks and disclosure methods Develop harmonized energy use labels for appliances and vehicles that coordinate with building energy labels

9. State and Local Recommendations Work to aggregate and resell loans in secondary capital markets Establish effective energy efficiency financing mechanisms for residential and commercial buildings Make all cost-effective energy improvements to state and local buildings and fleets Increase stringency of building energy codes through quick adoption and compliance Require disclosure of energy information in commercial buildings and at time of sale or rental in residential buildings

10. Private Sector Recommendations A consortium of financial institutions, rating agencies, energy efficiency program evaluators, and others in the private sector should work with the federal agencies to foster a secondary market for energy efficiency financial obligations Code setting organizations should steadily increase the energy efficiency of their model building energy codes Utility regulators should develop rules and procedures that enable customers to access their energy use a data and to authorize third parties to access that data

11. Early Impacts & “Wins” President has embraced goal and key pillars Bi-partisan bills emerging in Congress Adoption of goals and recommendations at local and regional levels already U.S. Conference of Mayors Resolution Adopted Strong media, opinion leader & business engagement

12. Energy 2030 in Action: Federal Legislation SAVE Act of 2013 (S. 1106) Weatherization Enhancement and Local Energy Efficiency Investment and Accountability Act (S. 1213) State Energy Race to the Top Initiative Act (S. 1218) Energy Savings and Industrial Competitiveness Act, (S. 761 (now S. 1392)/H.R. 1616) Better Buildings Act (S. 1191/H.R. 2126) Commercial Building Benchmarking Act (S. 1206)

13. Shaheen-Portman Status Introduced in April 2013 o Kateri Callahan moderated introductory press conference o Large coalition of supporting stakeholders o Backing of industry, NGOs, environmentalists & labor Senate ENR action o Approved via voice vote o Sens. Flake, Lee & Scott noted opposition View of Senate Leadership o No opposition o Pending #/scope of amendments  Section 433, LEED/ANCI, Nonprofit EE & others o Timing for floor debate TBD EE Community steps o Multiple communications to Senate leadership o Requesting additional cosponsors o Working jointly w/House counterparts o Help prevent onerous provisions from delaying/killing bill

14. Shaheen-Portman Update Shaheen-Portman (S.1392)* buzz Expect on Senate floor …after 2014 Approps ?? Various amendments likely (good & bad news) House companion being developed (H.R. 1616) Other bills—SAVE Act, HOMES, MLP Parity, Weatherization…i.e. much interest in energy efficiency *was S 761 but commercial buildings incentive program eliminated.

15. Race to the Top As noted, the Race to the Top program was promoted under the Energy 2030 plan “State Energy Race to the Top Initiative” sponsored by Sens. Mark Warner (D-Va.) and Joe Manchin (D-W.Va).State Energy Race to the Top Initiative To be included as an amendment to the Shaheen-Portman bill.

16. Race to the Top It is a competitive grant process for states and focuses on forward leading policies and programs to improve a state’s energy productivity. It is meant to complement the existing federal funding for the State Energy Offices. States, local governments, utilities and the private sector would be given the tools needed to innovate new policy ideas to double energy productivity by 2030. Leveraging state and private funds is key.

17. Race to the Top The President’s 2014 budget includes $200 million for the program: for 25 states in first phase with greater funding to six states in phase two Initiative to run from 2014 through 2018 Currently, it looks like $100 million may be the top line for Congressional funding for it Name may change to Energy Productivity Innovation Challenge (EPIC)

18. Race to the Top In an ACEEE analysis of the impact of the Shaheen-Portman bill, the Race to the Top amendment came out as the big winner, with regards to energy savings, CO2 reductions, and benefit-cost ratio. The Race to the Top Initiative would result in cumulative energy savings of 1.30 Quads and a cumulative reduction of carbon dioxide emissions of 71.25 MMT by 2030.

19. ICC’s Final Action Hearings on the 2015 IECC Building Energy Code The International Code Council’s Final Action Hearings October 2 – 10 in Atlantic City Local and state code and other officials voting at the hearings will consider amendments to the 2012 IECC that will become the 2015 IECC. The 2012 ​ International Energy Conservation Code's (IECC) hard-fought 30% efficiency gains are at stake.

20. ICC’s Final Action Hearings on the 2015 IECC Building Energy Code Pennsylvania data*: Pennsylvania – Incremental Cost $1,403-3,375 – Annual Energy Savings $ 276-650 – Pay back 6-29 mo. U.S. Conference of Mayors voted unanimously to encourage municipal support for all eligible code officials to attend the International Code Council’s Final Action Hearings this October in Atlantic City to support continued efficiency gains for America’s model energy code, the IECC. * http://energycodesocean.org/incremental-cost-analysis

21. ICC’s Final Action Hearings on the 2015 IECC Building Energy Code Help defeat proposals – particularly a proposal to reinstate the equipment trade-off loophole that was eliminated in the 2009 IECC (and in New York State’s energy code) – that could roll back much of the 30% efficiency gains achieved in the 2009 and 2012 International Energy Conservation Codes (IECCs), Help adopt proposals – particularly the Energy Efficient Code Coalition’s “Builder Flex Beyond the 2012” – that will boost the efficiency of the 2015 IECC by 5% over its 2012 predecessor model code. EECC’s proposal is unique, in that it offers builders a wide range of options to meet the required 5% gain after they’ve met the prescriptive requirements of the 2012 IECC.

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