Clean and Sustainable Energy Technology: EPA 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, Consumption (Billion kWh) Future Electricity Demand Scenarios BAU Range of Studies % 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 Programs Green 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  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 Efficiency Goal: 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 (202)