# Presentation: 233805

## ENERGY STAR and Electricity Policy Outreach – the Future Is BrightBonneville Power Authority Energizing the NorthwestSeptember 27, 2004

- Tom Kerr
- U.S. Environmental Protection Agency

## ENERGY STAR

**National Platform for Energy Efficiency**
- Defines efficiency
- 40+ products * *
- hvac, appliances, lighting, etc.
- reduce home energy use by 20-30%
- commercial buildings
- new homes
- 56% of public recognize label
- Technical assistance
**Partnering with Key Market Players**
- Manufacturers and retailers
- Utilities / system benefits charge administrators

**Results**
- -- 1 billion products sold
- -- many buildings improved
- -- 200,000 new homes
- -- 100 billion kWh avoided
- -- 20 GW avoided
- -- 18 million vehicles worth
-     of GHG emissions

## ENERGY STAR Products

- Making it easy for consumers
- Save money, reduce emissions without sacrifice in quality or performance
- Products that earn the ENERGY STAR meet strict EPA/DOE criteria
- Up and coming
- External power supplies
- New national public awareness campaign

## Corporate Energy Management

**Historically, corporate energy management has been**
- decentralized
- poorly coordinated
- focused on paying bills & running the equipment
- technology-oriented
- considered capital intensive
**Consequently...**
- Huge (400%) variation in energy use intensity of buildings  (CBECs)
- not explained by age, technology, hours, size, climate
- Little improvement of overall energy consumption
- yet building components 30% more efficient since 1980
- Significant mismatch of systems
- 60% of building fan systems oversized on average 60% (EPA fan study)
- chillers oversized 50-200% (LBNL)
- load reduction investments make over-sizing worse

**Notes:**
Unfortunately, capturing that energy waste has been hampered by a lack of focus on energy management at many organizations .

Historically energy management has 

not been a priority
Decentralized
Technology oriented
Undervalued or misunderstood as an area for cost savings.

In fact a survey conducted by CFO magazine a number of years ago showed that most high-level financial decision makers see electricity as the least controllable category of business costs, 
and almost half of respondents said they are not involved in their company's energy decisions.

## A New Way of Thinking

- In 2001 Ford saved $75 million through energy efficiency
- 8% reduction from 2000
- $42 million directly to bottom line
- Equivalent of selling 10,000 F-150s
- “**Much of the savings required little capital investment, rather, a **_**new way of thinking**_**”**
- 	- Gary Groner, VP for Energy, Ford Motor Company

**Notes:**
So what is need, as Gary Groner from Ford points out, is a new way of thinking about energy management, which they adopted with good results.

## Up and Coming with ENERGY STAR

- Build upon commercial building benchmarking
- 19,000+ buildings have used the benchmark
- 19% of office space
- 18% of schools
- 24% of supermarkets
- 33% of hospitals
- Build upon verified high performance buildings
- 1,400 buildings have earned the ENERGY STAR
- Documented to use 40% less energy than average building
- Sectoral Challenges

## Residential Program

- Product Efforts
- Lighting, cooling, appliances
- New Construction
- 30% better than MEC or 15% better than state code
- Demonstrated to use less energy than average home
- Up and coming
- HVAC best practices
- Home Performance with ENERGY STAR
- whole home retrofit
- certified home professionals
- local/credible qa/qc

## Combined Heat and Power

- CHP can improve efficiency from 40-50% to over 80%
- Exploring new markets for non-fossil-fired CHP
- Ethanol processing
- Ag waste/wastewater treatment
- Wood waste
- Setting the standard for “clean” DG
- ENERGY STAR CHP Award

## Electricity Policy Outreach

- EPA and Utility Regulators Share Common Goals
- Reducing environmental impacts
- air emissions, greenhouse gases, land and water use
- at low (or zero) cost
- Maximizing power system benefits
- lower power costs, volatility, market power of generators
- improved reliability and security
- resource adequacy
- Energy efficiency, distributed generation, renewable energy offer low-cost ways to achieve both goals

## Power MarketsBeginning To Value EE/RE/DG

- Demand Response, Standardized interconnection
- A great start, additional changes needed
- Other Areas Need Attention
- Wholesale Market Rules
- Intermittent resources – barriers to competition
- Resource Adequacy
- Transmission
- EE/DG not allowed to compete with new transmission
- RE penalized for being far from load centers
- Reliability/Congestion Relief
- EE/DG/RE not valued for its contribution