States could go a long way toward meeting targets for reduced power plant emissions under the Clean Power Plan just by encouraging energy efficiency. One way to do that is to deploy more “intelligent efficiency” solutions at home. Interconnected systems and smart devices could not only help reduce energy use and climate-altering emissions, but also empower consumers to make money-saving choices.
More than 20 percent of U.S. greenhouse gases comes from the residential sector – where we use about 1.4 trillion kWh of electricity annually to power our heating and cooling systems, appliances and electronics. Although we pay for it all, a lot of that electricity is wasted. Tried-and-true solutions like weatherization and more efficient light bulbs will continue to be common sense solutions. But increasingly, homeowners, innovators, and policy makers are looking to leverage the average home’s 25 devices to reduce that waste.
Image courtesy U.S. Department of Energy
A homeowner installs a smart thermostat. Devices like this could be controlled though web platforms, along with water heaters, washing machines and LED bulbs with advanced controls.
Energy efficiency can be an attractive way for states to meet the plan’s targets because, in addition to being relatively inexpensive to deploy on its own, energy efficiency reduces the need to build new, costly power plants in the future.
C2ES examined six economic modeling studies that project the likely impacts of the Clean Power Plan on the U.S. power mix and electricity prices. Despite starting with different assumptions, all of the studies project that energy efficiency will be the most used and least-cost option for states to implement the plan, and that overall electricity consumption will decline as a result.
The majority of the studies project either cost savings to power users under the Clean Power Plan or increases of less than $10 billion a year. That translates to less than $87 a year per household, or about 25 cents a day.
|C2ES President Bob Perciasepe moderates a Solutions Forum panel with (l to r): Steve Harper, Global Director, Environment and Energy Policy, Intel Corporation; Alyssa Caddle, Principle Program Manager, Office of Sustainability, EMC; and Lars Kvale, Head of Business Development, APX Environmental Markets.|
Our second Solutions Forum focused on how to spur more energy efficiency, especially through “intelligent efficiency” — a systems-based approach to energy management enabled through networked devices and sensors.
PREPARED REMARKS BY BOB PERCIASEPE
PRESIDENT, CENTER FOR CLIMATE AND ENERGY SOLUTIONS
DRIVING ENERGY EFFICICIENTY WITH IT, A SOLUTIONS FORUM
MAY 18, 2015
I want to welcome everybody to today’s session. My name is Bob Perciasepe, and I’m president of the Center for Climate and Energy Solutions, or C2ES. We are an independent, nonpartisan, nonprofit organization dedicated to bringing together diverse interests to find solutions to our climate and energy challenges.
Today is a good example of what we try to do. We’re pleased we’re able to bring together a forward-thinking utility executive like Ralph Izzo from PSEG; leaders from innovative companies like Intel, EMC, NEST, and APX, and state and city pioneers in efficiency and sustainability from Illinois, Minnesota, and Philadelphia.
And we’re excited that the Energy Foundation and the Digital Energy and Sustainability Solutions Campaign, or DESSC, are helping sponsor some of this work.
We’re here to talk about energy efficiency and the key role it will play as cities and states look to reduce power plant emissions under the Clean Power Plan.
Energy efficiency is a pretty simple thing to contemplate. Every one of us has probably done something in our lives to be more efficient. And yet when it comes to electricity, we still have significant gaps in our efficiency. We continue to waste more energy than we need to in this country and in the world.
We waste energy when we produce it, when we transmit it, and when we use it. It would be like going grocery shopping and leaving a bag of food at the store, throwing a couple of bags out the window as you’re driving home, and dropping a couple of bags on your front lawn. Then you get in the house and you’ve got one bag left. Now of course, that is an exaggeration, but it shows all along the way there’s loss.
When we waste energy, we waste money. If we save energy, we can save money and reduce our emissions. All of these impacts affect both our environment and our economy.
So, there are three things that I think we need to address. One is, energy efficiency should be a key strategy for reducing power plant emissions under the Clean Power Plan both for economic purposes as well as environmental purposes. Second, information and communications technology can help us achieve energy efficiency and that’s going to be a key part of what we’re talking about today. And finally it’s going to take cities, states, and businesses working together to make this happen. That’s why we have the group of people we have today with us to talk about that.
The proposed EPA Clean Power Plan is something that’s on the front burner for a lot of states, cities and companies in the energy business. The plan sets targets for states to reduce power sector emissions, but gives them incredible flexibility in how to meet those targets. It’s clear that energy efficiency will be a key tool in the toolbox.
C2ES has a new report examining six economic modeling studies that project the likely impacts of the proposed plan. All of the models project that energy efficiency will be the most-used option to implement the Clean Power Plan -- because it’s the least-cost option. We could see an overall decline in the demand for electricity over time while maintaining our quality of life and all of the goals we have for the use of electricity.
Also, the majority of the studies we examined project either savings to power consumers or costs of less than $10 billion a year. To put that in context: That means implementing the Clean Power Plan would cost each household about 25 cents a day.
So, how do we get to this more energy-efficient future?
We have the technology – right now – that can help us be significantly more energy-efficient. We’re going to hear more today about intelligent efficiency. This is a systems-based approach looking at that drive back from the grocery store. How can you keep from leaving bags at the store or losing them while you’re driving home or forgetting them on the front lawn? How can technology and intelligent efficiency help, whether it’s networked devices, sensors, or smart grids? And how can we measure and verify that the energy savings efforts are credible?
Some estimate intelligent efficiency could help America cut energy use by nearly a quarter in just a few years. We’d be reducing greenhouse gas emissions. And we’d be throwing a lot fewer dollars out the window.
We looked at what the federal government can do by deploying more information and communication technologies across federal agencies, and we estimated the government could save more than $5 billion in energy costs.
Finally, if we have all of this great technology, why aren’t we using more of it?
We need the right policies, regulations, and incentives to integrate this technology and accelerate its deployment.
Cities, states and companies are going to be important in this whole arena. How do we bring together the businesses that are innovating in energy and efficiency with the cities and states that are implementing programs in those areas? It’s not self-implementing. It doesn’t just happen. There has to be way to get a larger penetration of these technologies.
Innovative partnerships and programs are going to be important going forward. Cities, states, and businesses can work together -- to promote energy efficiency, and help deploy the information technology that can make it cheaper, easier, and maybe even more fun to save energy.
With the scale and complexity of climate challenges, it’s no wonder more companies, cities, nonprofits and others are pooling resources and expertise to create solutions together.
To recognize and encourage this collaboration, the Environmental Protection Agency (EPA) has created a Certificate for Innovative Partnerships and awarded the first-ever certificates at the Climate Leadership Conference this year. The two winners, the Chevrolet Clean Energy Campus Campaign and the San Diego Regional Climate Collaborative, shared their recipes for successful partnership during a recent EPA webinar.
While the speakers shared many valuable insights, two lessons were obvious: having a clear goal and getting the right people on board are crucial to success. These lessons are easier said than done, so let’s take a closer look:
The technology works. So why aren’t we using more of it?
Join top experts in efficiency, technology, and sustainability from cities, states, and business as we explore the opportunities for “intelligent energy efficiency” under the Clean Power Plan.
Energy efficiency can be a low-cost option for states to meet targets for reducing carbon pollution from power plants.
How can networked devices and sensors, smart grids and thermostats, and energy management systems reduce waste and increase reliability when we make, transmit or use electricity? What are the barriers to using these technologies? And what can we learn from city, state and industry leaders?
Monday, May 18, 2015
9 a.m. – Noon
101 Constitution Ave., NW, Washington, DC, 20001
Why Energy Efficiency is Smart for States and Business
Ralph Izzo – Chairman and CEO, PSEG
Intelligent Efficiency and the Power Sector; Options, Opportunities and Challenges
Steve Harper – Global Director, Environment and Energy Policy, Intel Corporation
Alyssa Caddle – Principle Program Manager, Office of Sustainability, EMC
Lars Kvale – Head of Business Development, APX Environmental Markets
Moderated by: Bob Perciasepe – President, C2ES
Delivering Intelligent Efficiency to Consumers – Why It Matters
Doug Scott – Vice President of Strategic Initiatives, Great Plains Institute
Katherine Gajewski – Director of Sustainability, City of Philadelphia
Jessica Burdette – Conservation Improvement Program Supervisor, Minnesota Department of Commerce
Rick Counihan – Head of Energy Regulatory and Government Affairs, Nest
Moderated by: Janet Peace – Vice President for Markets & Business Strategy, C2ES
To learn more:
Bob Perciasepe's blog post: How can we use intelligent efficiency to reduce power sector emissions?
I have an in-law who is, shall we say, rather skeptical about climate change. Any discussion on the topic usually begins with some contrarian science theory that he heard on one of his favorite talk shows (e.g. sun spots, deep ocean magma, urban heat islands), and then devolves from there.
Why do some Americans believe the antithesis of the scientific consensus on issues like climate change?
This topic is explored by Professor Andy Hoffman of the University of Michigan in his new book, How Culture Shapes the Climate Change Debate. As suggested by the title, Hoffman’s thesis – a distillation of considerable research from social scientists over the past several years – is that the public’s understanding of climate change, like other historically contentious issues such as evolution, acid rain, the ozone hole, and genetically modified food – is as much a cultural issue as a scientific one.
One of the key arguments is that a scientific consensus does not necessarily reflect a “social consensus,” the latter being something that the majority of society would consider to be true. For instance, the scientific consensus that cigarettes harm human health emerged decades before the social consensus emerged.
Market Mechanisms: Understanding the OptionsApril 2015
Climate change poses a significant risk for a broad range of human and natural systems. Policies to reduce emissions are critical if we are to avoid the most costly damages associated with a rapidly changing climate. Compared to traditional command-and-control regulations, market-based policies can more cost-effectively reduce greenhouse gas (GHG) emissions by creating financial incentives for GHG emitters to emit less. Ten U.S. states and many jurisdictions outside the United States have established market-based programs to reduce GHGs. Market-based policies would be among the options available to states to reduce GHGs from power plants under the U.S. Environmental Protection Agency’s proposed Clean Power Plan. This brief describes the theory behind market-based approaches; their success in cost-effectively reducing GHGs and other emissions; and a range of market-based options, including: a carbon tax, a cap-and-trade program, a baseline and credit program, a clean or renewable electricity standard, and an energy efficiency resource standard.
Photo by Ellie Ramm
Elizabeth Craig of the EPA (left) speaks with three representatives of 2015 Climate Laedership Award winners, Andy Battjes of Brown Forman, Bridgeport, Conn., Mayor Bill Finch, and Alexis Limberakis of Clorox
When it comes to climate leadership, the way a message is delivered can be the key to success.
Winners of the 2015 Climate Leadership Awards found that being creative in communicating ideas on sustainability and reducing greenhouse gas emissions helped the message resonate with constituents, customers, and employees.
Sixteen organizations, including C2ES Business Environmental Leadership Council members Bank of America and General Motors, won Climate Leadership Awards this year. The awards are co-sponsored by the Environmental Protection Agency (EPA) with the Center for Climate and Energy Solutions, Association of Climate Change Officers, and The Climate Registry.
Three winners -- Bridgeport, Conn., Mayor Bill Finch, household consumer product maker Clorox, and wine and distilled spirits manufacturer Brown Forman – spoke at the Climate Leadership Conference about three ways to connect climate goals to your audience.
Photo by Ellie Ramm
Emilie Mazzacurati, founder and CEO at Four Twenty Seven, Inc., spoke at a C2ES-sponsored workshop on corporate climate resilience at the 2015 Climate Leadership Conference.
Many businesses are moving beyond identifying the potential risks posed by climate change impacts and are taking the next step: developing solutions.
More intense heat waves, rising sea levels, and heavier rainfall could lower crop yields and labor productivity, increase energy costs, damage property, and disrupt operations.
None of these impacts are good for business.
More than 80 individuals from companies, cities, and nonprofits shared their climate resilience ideas and experiences at a C2ES-sponsored workshop, “Emerging Best Practices for Identifying Climate Risk and Increasing Resilience,” at the 2015 Climate Leadership Conference in Washington.
February 24, 2015
Climate Leadership Award Winners Announced
WASHINGTON – Sixteen organizations and one individual are being honored today with Climate Leadership Awards for their accomplishments in reducing greenhouse gas emissions and driving climate action.
The awards are given by the U.S. Environmental Protection Agency’s Center for Corporate Climate Leadership, in collaboration with the Center for Climate and Energy Solutions, the Association of Climate Change Officers and The Climate Registry. Awardees will be honored this evening at the Climate Leadership Conference in Arlington, VA.
The awardees come from a wide array of sectors, from finance and manufacturing to retail and local government. Recipients have demonstrated leadership in managing and reducing emissions, investing in energy efficiency and renewable energy, and preparing for the impacts of climate change.
Information on the award winners is at: www.epa.gov/climateleadership/awards/2015winners.html
Following is EPA's press release:
FOR IMMEDIATE RELEASE
February 24, 2015
UPS, Bank of America, SC Johnson among 16 Organizations across the U.S. Recognized for Climate Action
EPA also recognizes Chevrolet Clean Energy Campus Campaign, San Diego Regional Climate Collaborative in new Innovative Partnerships Category
WASHINGTON – From an innovative partnership enabling colleges to sell carbon credits to fund clean energy projects on campuses to some of the country’s leading corporations setting and exceeding aggressive emission reduction goals, the U.S. Environmental Protection Agency’s Climate Leadership Award winners announced today are demonstrating that innovative actions to combat climate change are smart business decisions. Sixteen organizations and one individual representing a wide array of industries from finance and manufacturing to retail and technology show exemplary corporate, organizational, and individual leadership in response to climate change.
“I am proud to recognize our Climate Leadership Award winners for their actions to reduce the harmful carbon pollution that’s fueling climate change,” said EPA Administrator Gina McCarthy. “Our winners are demonstrating that a healthy environment and a strong economy go hand in hand. These organizations are providing the leadership, commitment, and solutions needed to cut greenhouse gas emissions and meet head on the challenge of a changing climate.”
EPA’s Center for Corporate Climate Leadership, in partnership with the Association of Climate Change Officers (ACCO), the Center for Climate and Energy Solutions (C2ES), and The Climate Registry (TCR), announced the fourth annual Climate Leadership Award winners.
The 2015 Climate Leadership Award recipients are:
- Innovative Partnerships Certificate (new category): This award recognizes organizations working collaboratively on leading edge climate initiatives with established objectives to measurably address greenhouse gas reduction goals and/or adaptation and resilience activities. This year’s recipients include:
o ChevroletClean Energy Campus Campaign (Detroit, Mich.): The Chevrolet Campus Clean Energy Campaign marks the first time college campuses have been able to use carbon performance methodologies to earn revenue via GHG reductions that result from on-campus efficiency and clean energy. The Campaign set a 100 percent absolute GHG reduction goal through 2014 (2012 base year).
o San Diego Regional Climate Collaborative (San Diego, Calif.): The Climate Collaborative supports members in setting and meeting GHG reduction targets via trainings and information on GHG inventory and monitoring tools; sharing climate action plan templates; supporting local governments in developing climate action plans; developing capacity for local governments to implement measures in their climate action plans; and more.
- Organizational Leadership Award: Bank of America (Charlotte, N.C.) is being honored with this award for not only completing its own comprehensive greenhouse gas inventory and setting an aggressive emissions reduction goal, but also exemplifying extraordinary leadership in its internal response to climate change through engagement of its peers, competitors, partners, and supply chain, and addressing climate risk in its enterprise strategies. Bank of America issued the first corporate green bond to fund energy efficiency projects in 2013. Bank of America is setting an absolute global greenhouse gas (GHG) reduction goal of 15 percent from 2010 levels through 2015. This goal builds on a previous total reduction of 18 percent of its U.S. GHG emissions from 2004-2009.
- Excellence in Greenhouse Gas Management (Goal Achievement Award): The following organizations are being honored for publicly reporting and verifying organization-wide greenhouse gas inventories and achieving publicly-set aggressive greenhouse gas emissions reduction goals:
- The City and County of San Francisco;
- The Clorox Company (Oakland, Calif.);
- DPR Construction (Redwood City, Calif.);
- SC Johnson (Racine, Wis.);
- Sprint (Overland Park, Kan.); and
- UPS (Atlanta).
- Individual Leadership Award: Mayor Bill Finch, City of Bridgeport, Conn., is being recognized for demonstrating extraordinary leadership in driving meaningful climate action within the Greater Bridgeport community and throughout the City’s operations. The Mayor is implementing an emission reduction goal for the city of 10 percent below 2007 levels by 2020.
- Excellence in Greenhouse Gas Management (Goal Setting Certificate): The following organizations are being honored for publicly reporting and verifying organization-wide greenhouse gas inventories and publicly setting aggressive greenhouse gas emissions reduction goals:
- Brown-Forman Corporation (Louisville, Ky.);
- California Department of Water Resources;
- Capital One Financial Corporation (McLean, Va.);
- CH2M HILL (Englewood, Colo.);
- The Clorox Company (Oakland, Calif.);
- EMC Corporation (Hopkinton, Mass.);
- The Hartford (Hartford, Conn.); and
- Tiffany & Co. (New York).
“After the hottest year globally on record, action on climate change is more urgent than ever,” said Elliot Diringer, executive vice president of C2ES. “We applaud the CLA winners for demonstrating the many paths forward to a low-carbon future, and hope others follow their example.”
“The Climate Registry is honored to recognize an impressive group of climate champions for their dedication to and leadership in addressing climate change in their operations,” said David Rosenheim, executive director of TCR. “This year’s deserving award winners are leading the way in reducing carbon pollution through greater transparency and consistent data, demonstrating the path to a more sustainable future.”
“Climate change presents immense challenges across an incredible array of sectors, geographic regions and job functions," said Daniel Kreeger, executive director of the Association of Climate Change Officers. "The 2015 Climate Leadership Award winners have shown that incorporating climate into decision making is critical to their organizational success and are raising the bar on climate action."
The awards were presented at the 2015 Climate Leadership Conference in Arlington, Va.
EPA's Center for Corporate Climate Leadership establishes norms of climate leadership by encouraging organizations with emerging climate objectives to identify and achieve cost-effective GHG emission reductions, while helping more advanced organizations drive innovations in reducing their greenhouse gas impacts in their supply chains and beyond. The Center provides technical tools, guidance, educational resources, and opportunities for information sharing and peer exchange among organizations interested in reducing the environmental impacts associated with climate change.
More information about the 2015 Climate Leadership Award winners: www.epa.gov/climateleadership/awards/2015winners.html
More information about EPA’s Center for Corporate Climate Leadership: www.epa.gov/climateleadership