1. Energy Efficiency – Building an Energy Resource Kathleen Hogan Deputy Assistant Secretary for Energy Efficiency US DOE

2. New EE Landscape  EE era is here  Low cost climate solution  Jobs  Savings  State policies driving investment  Federal policies driving investment  Stimulus  New commitment to Federal EE policies / assistance  Unique opportunity  Challenge: New approaches needed  Build infrastructure for longer-term  Be ready for when stimulus ends

3. States, Legislation Advancing EE  18 states have adopted EERS -- typically setting goals for utilities with PUC oversight  IRP / DSM planning driving higher EE funding in many states Source: Map from Pew Center for Climate Change, updated August 6, 2009 Energy Efficiency Resource Standards

4.  About half the states have public benefit charge funding for EE Source: Map from Pew Center for Climate Change, updated November, 2009 States, Legislation Advancing EE (cont)

5. Current EE Funding Picture  EE funding in 2020 estimated at 2.5x current funding in medium case (4x in high case)  Excluding stimulus funding  Expect greater share from outside of the top-10 markets (i.e., 42-45% vs 22% today) Source: LBNL’s The Shifting Landscape of Ratepayer-Funded Energy Efficiency in the U.S. (2009) by Galen Barbose, Charles Goldman, and Jeff Schlegel

6. ARRA EE Related Funding

7. ARRA Update -- EERE  Weatherization ($5 billion)  All awards have been made  Weatherization Training and Technical Assistance Plan released 10/28/09 for public comment ($146 M).  Ongoing identification / assistance with implementation issues  State Energy Program ($3.1 billion)  All 56 awards to 100% level  Working to resolve implementation issues  Technical Assistance Solicitation for $14 M issued Nov 3 for EECBG and SEP.-- closes December 7.  Energy Efficiency and Conservation Block Grants ($2.8 billion)  More than $1.7 billion and 1500 grantees awarded  CHP projects ($150 million)  9 projects awarded leveraging $634 million in private sector funding for total of up to $785 million.  To result in almost 14 trillion Btu in estimated energy savings

8. Training and TA Plan  Weatherization training  Content  Training platform  Weatherization certification and accreditation standards.  Pilots for State of the art technologies and protocols  Advanced online energy audit tool  Measurement and evaluation

9.  EERE  $454M EE Competitive Grant “Retrofit Ramp-up” FOA Residential focus; taking home retrofits to scale Voluntary letters of intent are due 11/19/2009 Proposals due December 15 th  ENERGY STAR Appliance Rebates Awards November 30 th Program starts ranging from December thru Summer 2010  OE  Assistance to State Electricity Regulators Funding to PUCs; can be used to hire/retain staff to accelerate reviews of the large number of electric utility dockets expected under ARRA $44M awarded Sept 21 to 47 PUCs Additional large increase technical assistance to PUCs pending  Utility Workforce Training Funding to support training of utility workers in a number of key high demand/need areas, including utility energy efficiency program staff $1OOM available thru competitive bids. Bids due Nov. 30 ARRA Update

10. DOE Priorities  Building codes  Up to date codes  Training  Enforcement and verification  New technical assistance  Appliance standards  More standards  Employing cost of carbon  Appliance testing and enforcement  Pilot program in advance of ENERGY STAR rebate program

11. Building Longer-term EE Infrastructure  Existing (whole) building focus  National building rating system (NBRP)  Residential and commercial  Building performance measures – akin to EnergyGuide label on appliances  Low cost audit / assessment tools  Up-to-date information on cost-effective measures  Enhanced verification of energy savings  Recovery through Retrofit  WH / coordinated Agency effort  Builds on DOE efforts with NBRP / Retrofit Ramp-up  Financing solutions  Worker training and certification

12. Broad EE Funding Picture Sources: Ratepayer funding estimate based on LBNL analysis, CO2 allowance revenue for EE based on EPA analysis of ACES; Market Services funding reflects revenue from ISO capacity markets and ESCO industry revenue from EE estimated by LBNL for the year 2006.

13. Other State Gov’t, Including Air Office The Players Ratepayer Programs ~$5B ? ARRA/ Weatherization $ ? CO2 Allowances ~$4B ? Market Services $ ? Funding Lead Oversight Program/Service Administrator State PUC State Energy Office Federal Gov’t / Regions (ISO) Utilities State Energy Office NGOs, Community Action Orgs Third Party Administrator Local Gov’ts ESCOs, Private Sector Note, Graphic is purely illustrative for discussion purposes, customer cost share may be required in addition to program funding. Sources: Ratepayer funding estimate based on LBNL analysis, CO2 allowance revenue for EE based on EPA analysis of ACES Uncertainty Exists in Future Landscape for Energy Efficiency Programs ? ? ? ? ? ?

14. New Approaches  Taking EE to scale  Build lasting EE infrastructure  Robust services offered by quality professionals  Coordinate /align across state players  Align SEOs, energy companies  Avoid duplicative programs; set policies to leverage existing infrastructure  Align utilities with improved codes and appliance standards  Utility incentives / disincentives  Workforce  Training / certifying contractors  Measurement and evaluation  Less costly methods  Customer access to energy bill data

15. Next Steps  Communication  Coordination  Action Plan Phase II  Technical Assistance to interested states  EM&V  Access to energy bills  Building energy efficiency services  EE as a resource