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Business Council for Sustainable Energy

Business Council for Sustainable Energy Integrating Energy Efficiency into New Jersey’s Air Quality Programs Clean Air Council Public Hearing April 11, 2007. Outline. Review of BCSE: Mission and Members The Importance of Energy Efficiency Recommendations for Clean Air Council.

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Business Council for Sustainable Energy

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  1. Business Council for Sustainable Energy Integrating Energy Efficiency into New Jersey’s Air Quality Programs Clean Air Council Public Hearing April 11, 2007 The Business Council for Sustainable Energy

  2. Outline • Review of BCSE: Mission and Members • The Importance of Energy Efficiency • Recommendations for Clean Air Council The Business Council for Sustainable Energy

  3. Who We Are • Broad-based industry coalition of energy efficiency, natural gas and renewable energy interests • The Council’s coalition includes power developers, equipment manufacturers, independent generators, green power marketers, and gas and electric utilities as well as several of the primary trade associations in these sectors • New Jersey members, PSEG, First Environment, Inc., Sun Farm Network The Business Council for Sustainable Energy

  4. Sample of Council Members • Energy Efficient Products • Insulation – NAIMA and PIMA • HVAC – American Standard/Trane, York International • Developers, Equipment & Service Providers • GE Wind, Sun Edison LLC, PPM Energy, Solar Turbines • Gas & Electric Utilities • Sempra Energy, NiSource, SMUD, PSEG, PG&E • Industry Organizations • Alliance to Save Energy, American Wind Energy Association, American Gas Association, Solar Energy Industries Association, Interstate Natural Gas Association of America, National Hydropower Association The Business Council for Sustainable Energy

  5. Energy Efficiency Industry Members • Energy Efficient Products • PIMA • NAIMA • Equipment Manufacturers • American Standard/Trane • York International • Caterpillar/Solar Turbines • Industry Organizations • Alliance to Save Energy • Service Providers and ESCOs • Johnson Controls • Honeywell The Business Council for Sustainable Energy

  6. What we stand for: • Expanded markets for clean energy generation, distribution and use • Energy Efficiency • Renewable Energy • Natural Gas • Market-based environmental programs that recognize and reward clean energy technologies • Quantification of the environmental attributes of clean energy technologies The Business Council for Sustainable Energy

  7. What we do: • Promote clean energy technologies as solutions • Support policies that open markets for clean energy products and services • Focus on strategic issues and emerging markets for clean energy industries • Environmental and emissions markets The Business Council for Sustainable Energy

  8. General Comments • Integrate energy and air quality policies • Maximize investments • View design elements of market-based programs in holistic fashion • Market-based program very powerful, but will not provide all the energy efficiency improvements desired • Need complementary policies • Public awareness important role of NJDEP and Clean Air Council The Business Council for Sustainable Energy

  9. Focus of Recommendations for the Clean Air Council • Value and benefits of integrating air quality and energy programs • Societal and economic efficiencies of market-based approaches • Incorporating energy efficiency and clean generation into market-based programs • Importance of complementary policies The Business Council for Sustainable Energy

  10. The Importance of Efficiency • Energy efficiency is the quickest, cheapest and cleanest way to meet growth in energy demand and reduce air quality and greenhouse gas emissions • Buildings account for 40% of total U.S. carbon emissions per year • Energy efficiency measures and products/technologies can reduce energy use in buildings by 25%, and emissions by 10% The Business Council for Sustainable Energy

  11. Benefits of Energy Efficiency Energy efficiency programs could save: • 1/2 of the typical cost of new power sources and • 1/3 of the cost of natural gas supplies (National Action Plan for Energy Efficiency, July 2006) Every federal $ spent on Energy Star saves: • About $75 in consumer energy bills • Reduces 3.7 tons of CO2 emissions, and • Contributes over $60 to the economy (Alliance to Save Energy) The Business Council for Sustainable Energy

  12. What This Means for Energy Efficiency The environmental benefits of energy efficiency should be recognized and rewarded under climate change and other emissions programs The Business Council for Sustainable Energy

  13. Energy Efficiency, Air Quality and Climate Change • Lowest cost and easiest option to reduce emissions • Supply- and demand-side efficiency options abound • Challenging to incorporate into market-based air quality and climate change programs • Energy efficiency loves cap-and-trade, but cap-and-trade does not always reward energy efficiency • Program design matters • Allocation policy; set-asides and offsets The Business Council for Sustainable Energy

  14. Implications for Energy Efficiency • Emissions programs will make energy efficiency investments more attractive • Raise public awareness • Lower cost • Create new financing vehicles • Emissions programs can drive higher building code standards and appliance standards • Expand consumer rebates • Create Energy Efficiency Resource Standard The Business Council for Sustainable Energy

  15. Why Market-Based Programs • Take advantage of economic efficiencies and provide flexibility that permits choice in compliance • Lowers the cost of compliance • Create financial incentives for over-performance and technology innovation • Create new financing vehicles • Examples in NJ: NOx Budget Trading Program; RGGI, RPS The Business Council for Sustainable Energy

  16. Incorporating Energy Efficiency into Market-Based Programs • Supply-side efficiency can be addressed through emissions allocation policy • Adopt updating, output-based allocation • Values negawatts • Establish set-aside for small clean generation (CHP; renewables) The Business Council for Sustainable Energy

  17. Incorporating Energy Efficiency into Market-Based Programs • Demand-side management projects more challenging • May receive auction revenue or be able to generate emissions offsets • Offsets • Need Aggregation: Quantify the emissions benefits to provide alternative revenue streams to purchase energy efficient products and services • MMV criteria and must demonstrate that they are beyond business as usual (prove “additionality”) The Business Council for Sustainable Energy

  18. Complementary Policies • Decoupling • De-linking profits from sales of energy and natural gas • Energy Efficiency Resource Standard • Separate tier to RPS -- do not dilute renewabls target • Consistent timeframe as RPS - 2021 • Code and Beyond Code Programs The Business Council for Sustainable Energy

  19. Please contact Lisa Jacobson, BCSE Executive Director, with questions1620 Eye Street, NWSuite 501Washington, DC 20006 USAPhone: 202.785.0507Fax: 202.785.0514www.bcse.org The Business Council for Sustainable Energy

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