Clean Power Plan Public Hearing Testimony 

Michael Migliaccio, Business Development Manager, Johnson Controls 

Atlanta, Georgia July 29, 2014 

Good afternoon. My name is Michael Migliaccio. I am the Energy Solutions Regional 

Business Development Manager for Johnson Controls in Georgia. Johnson Controls is a global 

diversified technology and industrial leader with 170,000 employees serving customers in more 

than 150 countries. Our services include solutions to optimize energy efficiencies in buildings. 

Our commitment to sustainability dates back to our roots in 1885, with the invention of the first 

electric room thermostat. 

Johnson Controls is part of an industry that provides energy efficiency products and 

services to building owners across multiple markets. Within our industry we are referred to as 

Energy Services Companies (ESCOs). 

As one of the compliance options under Rule 11l(d), we support that end-use energy 

efficiency be utilized as a means to reduce energy consumption, thus reducing GHG emissions, 

while creating local benefit in the form of added jobs. We believe that energy efficiency offers 

an opportunity to create over 300,000 new jobs, save consumers $100 billion per year on 

energy bills, and eliminate 600 million tons of C02 emissions each year. 

In addition to utility-based energy efficiency programs, we urge that the energy 

efficiency building block should promote and account for energy efficiency initiatives taken on 

by the building owners themselves. 
Data from the Bloomberg New Energy Finance's article titled, "Sustainable Energy in 

America Factbook", 2014 shows that energy efficiency through ESCO activity is substantial. 

In fact, there is about as much 

investment in end- use 

efficiency through ESCO 

activities as there is through 

utility programs. 

The energy efficiency 

initiative that my industry 

provides is known as 

Guaranteed Energy Savings 

Performance Contracting. It is a 

procurement model available to 

federal, state, and local 

government agencies, 

Figure 120: Investment in energy efficiency through ESCOs 

and utility programs. categorized by program. 1993-2012 ($bn) 

I~ 

10 

2 

0 

Utili!', spending 

through ESCOs 

universities, elementary schools and industry. Under this procurement model, building owners 

receive infrastructure replacement associated with energy consuming equipment such as 

lighting, cooling and heating. The replacement of older technology system with new energy 

efficient systems creates a reduction in utility consumption which translates into less need for 

generation hence lower GHG emissions. 

Furthermore, what makes Guaranteed Energy Savings Performance Contracting an ideal 

method of end-use energy efficiency is that the energy reduction is measured, verified and 

documented. These steps are necessary in every performance contract, as the ESCO much 

guarantee to the building owner that the energy consumption will be achieved each year of the 

contract. 
In this context, Johnson Controls recommends six policy principles for energy efficiency 

as a compliance tool. 

1) End-use energy efficiency should be an available means of compliance. 

2) The EPA should provide guidance to States on presumptively approvable energy 

efficiency provisions in compliance plans. EPA should be explicit, not silent. 

3) Existing State/utility programs should be recognized and scaled. 

4) Mechanisms for crediting private-sector-delivered energy efficiency activities should 

be available, including crediting for sale of highly efficient appliances, facility energy 

efficiency projects, and Energy Savings Performance Contracts. 

5) Energy efficiency can and should be explicitly credited in both rate- and mass-based 

compliance systems. Either system can work with the appropriate policy design. 

6) EPA should be explicit about criteria used to approve energy efficiency elements of 

State plans. The criteria should include: 

• Environmental rigor- quantifiable, enforceable, and sustainable. 

• Administrative ease- clear investment signals, manageable requirements. 

• Adaptability- periodic review of state plans, with prospective adjustments, as 

needed. 

Johnson Controls supports EPA's consideration of energy efficiency as a compliance tool and 

appreciates the opportunity to make a statement today.