Weatherization and Intergovernmental Program

Transcription

1 Weatherization and Intergovernmental Program LeAnn Oliver, Program Manager Weatherization & Intergovernmental Program Office of Energy Efficiency and Renewable Energy U.S. Department of Energy National Conference of State Legislatures November 29, 2011 Program Name or Ancillary Text eere.energy.gov

2 U.S. Energy Consumption 2

3 U.S. Petroleum Consumption Domestic Sources, 49% Imported Petroleum, 51% 3

4 CO 2 Billion Metric Tons Opportunities in Energy Efficiency and Renewable Energy 7 Projected U.S. CO 2 Emissions Projected Emissions Reduction Goals Year Source: U.S. Energy Information Administration, Annual Energy Outlook

5 Priorities for Energy Efficiency Federal Policies R&D Test procedures / Appliance Standards Support ENERGY STAR EE markets/services Residential Retrofits Commercial Retrofits Industrial Improvements State/local Policy Education/ Outreach Spend ARRA funding quickly & effectively Build EE infrastructure for longer term (post Recovery Act) Take EE to scale & create a new EE economy Create Jobs Save Money Enhance Competitiveness EE is fastest, cheapest, largest, way to save energy and build jobs EE can save 20% of energy use -- $200 Billion/yr with 700,000 jobs 5

6 Policies to Capture the Energy Productivity Opportunity There is uncertainty about the security of energy supply policy dominates political discourse around the globe Boosting energy productivity means increasing the level of output we achieve from the energy we consume Enough opportunities are available to boost energy productivity by 135 quadrillion BTU s (QBTUs) the equivalent of 64 million barrels of oil per day, or almost 150 percent of the entire US energy consumption today. Targeted policies can overcome the price distortions and market imperfections that are currently acting against higher energy productivity. Source: McKinsey Global Institute (MGI) and McKinsey s Global Energy and Materials Practice 6

7 Policies to Capture the Energy Productivity Opportunity (cont.) Commercial & Residential Buildings Residential Sector represents 25 percent of global energy demand Commercial Sector represents 10 percent of global end-use demand Opportunity to raise energy productivity: 21 percent of total residential sector demand and 20 percent of total commercial sector demand in 2020 Government standards and incentives for builders and energy intermediaries (power companies) are crucial drivers for energy productivity. Transportation Road transport represents 16 percent of global end-use demand and 46 percent of global petroleum-products demand. Air Transport is a small energy end-use segment with just 2 percent of the global total Opportunity to raise energy productivity: 9 percent of global road-transport demand in Fuel efficiency is naturally an important metric for commercial airlines and transportation companies, as well as for individual consumers. Industrial Energy Use Industrial use represents 47 percent of global end-use demand Opportunity to raise energy productivity: One-third of overall opportunity Source: McKinsey Global Institute (MGI) and McKinsey s Global Energy and Materials Practice 7

8 Recovery Act A Great Start Recovery Act: an $90 billion down payment on the clean energy economy Creating jobs immediately: >800K by 2012 Investing in energy infrastructure to provide lasting value Over 20 years, the Weatherization Assistance, State Energy, and Appliance Rebate Programs will save an estimated ~ $30 billion ~ 180 billion kwh ~ 300 million metric tons CO 2 e 8

9 Recovery Act Performance Metrics President Obama has committed to accountability in the use of Recovery Act funds. So, it is important that the activities carried out and the results achieved with those funds are tracked carefully and reported clearly and quantifiably. The results achieved with DOE s State Energy Program (SEP) Recovery Act funding will be assessed according to the following performance metrics: Jobs created Energy (kwh/therms/gallons/btus/etc.) saved Renewable energy installed capacity and generated GHG emissions reduced (CO2 equivalents) Energy cost savings Funds leveraged 9 9

10 DOE s Mission & Strategic Goals The Department s mission and strategic goals reflect the president s directives for clean energy, science, and national security. Mission: to ensure America s security and prosperity by addressing its energy, environmental, and nuclear challenges through transformative science and technology solutions. Goals: Catalyze the timely, material, and efficient transformation of the nation s energy system and secure U.S. leadership in clean energy technologies. Maintain a vibrant U.S. effort in science and engineering as a cornerstone of our economic prosperity with clear leadership in strategic areas. Enhance nuclear security through defense, nonproliferation, and environmental efforts. Establish an operational and adaptable framework that combines the best wisdom of tall Department stakeholders to maximize mission success. 10

11 Energy Emergency Preparedness $38M funded under Recovery Act Improves the nation s energy security and electricity reliability Ensures quick recovery and restoration from any energy supply disruptions Funds used by state governments to hire or retrain staff and expand state-level capacities to address challenges to the country's energy systems, including emergency situations such as blackouts, hurricanes, ice storms, and disruptions to heating supplies. Benefits almost 15 million citizens in 25 states by focusing on improved emergency planning for the entire energy supply system, including the electricity grid, refining, storage, and distribution of fossil fuels and renewable energy sources. 11

12 Energy Savings Performance Contracts (ESPCs) ESPCs allow Federal agencies to conduct energy projects with no upfront capital costs, minimizing the need for Congressional appropriations. Guarantees the improvements will generate energy cost savings sufficient to pay for the project over the term of the contract. More than 570 ESPC projects worth $3.9 billion were awarded to 25 Federal agencies and organizations in 49 states and Washington, D.C., as of May These projects saved: 32.8 trillion Btu annually; equivalent to the energy consumed by a city with a population of 893,000. $13.1 billion in energy costs (approximately $10.1 billion goes to finance project investments, leaving a net savings of $3 billion) Photovoltaics installed on the Harold Washington Social Security Center in Illinois as part of an ESPC. Photo from U.S. SSA, NREL/PIX

13 ESPC Success Dyess Air Force Base Dyess, TX Dyess Air Force Base has been under extreme-drought water restrictions for years. To ease the stress on the nearby city of Abilene s potable water supply, Dyess began using existing oil pipelines to economically transport water seven miles from the city to the base. Dyess entered into an Energy Savings Performance Contract to add two 11-million-gallon holding reservoirs, two pump stations, and 3 miles of distribution piping to connect the irrigation system. The project reduces annual potable water consumption by 160 million gallons and saves the base $300,000 a year. It also saves the city a highly valued 2 percent of its water supply. 13

14 Renewable Portfolio Standard (RPS) Policy requiring electricity retailers to provide a minimum percentage or quantity of their electricity supplies from renewable energy sources. Establishes a base level of demand but allows the market to determine which renewable energy resources will meet that demand. State legislatures and regulatory agencies are driving force behind RPS policy formulation (some RPS polices have been adopted through citizen ballot initiatives): Success is dependent on implementation specifics. Robust enforcement mechanisms instill confidence in the burgeoning renewables market for developers and investors alike. Currently there are 24 states plus the District of Columbia that have RPS policies in place, which accounts for more than half of the electricity sales in the United States. 14

15 DOE s State Energy Program (SEP) Funds State Energy Offices through formula grants for project and planning, and through competitive grants for efficiency upgrades and renewable installations in state and local facilities. Received $3.1B in Recovery Act Funding Annual formula grants to 56 States, Territories and Districts for the grantees to develop state strategies and goals to address their energy priorities o States provide a 20% match o SEP emphasizes the state's role as the decision maker and administrator for program activities within the state that are tailored to each states unique energy resources and delivery capacity Annual competitive grant solicitations aligned EERE priority initiatives, typically aimed at increasing the adoption of energy efficiency and renewable energy technologies. Key focus is creating and replicating innovative, scaleable business models for deployment. 15

16 Energy Efficiency and Renewable Energy Project Investments (State Energy Program) Half of SEP funding is supporting building retrofits, yielding energy and financial savings Renewable energy and industrial projects are creating jobs and fostering economic growth Electric Power and Renewable Energy 30% Energy Education 3% Industry 9% Buildings 50% Policy, Planning and Energy Security 5% Transportation 3% 16

17 SEP Financial Mechanisms Report $759M (25%) of SEP ARRA funds are dedicated to financing mechanisms $529M (85%) of SEP ARRA funds in financing mechanisms lie in RLFs The remaining 15% is divided between: Performance Contracting Energy Conservation Bonds Loan Loss Reserves Low Interest Loans Revolving Loan Fund Status Allocated Draw Down Expended Loan Value $528,645,283 $454,893,012 $240,620,698 $214,179,802 86% 46% 41% 17

18 SEP ARRA Revolving Loan Fund Status As of September 2011 Sectors Allocation Draw Down Expenditure % of Funds Expended Loans Made % of Funds Loaned Generation Investments Retooling/ Manufacturing $113.4 $90.4 $ % $ % $100.2 $98.5 $ % $ % All Sectors EE $60.6 Revolving $59.1 Loan $ Fund 22.5 Status 37% $ % Allocated Draw Down Expended Loan Value $ 454,893,01 $ 240,620,69 $ 214,179,80 $ 528,645, % 46% 41% Commercial EE $14.9 $8.5 $3.6 24% $3.3 22% Public EE/RE $192.0 $163.8 $ % $ % Residential EE $25.1 $18.7 $8.7 35% $ % Industrial EE $22.5 $16.0-0% $ % Grand Total $528.6 $455.0 $ % $ % 18

19 Highlights & Recovery Act Impacts Highlights Enable States to meet and accelerate energy priorities by adopting renewable energy and energy efficiency technologies State Energy Offices may use program funds for renewable energy technology, transportation measures, industrial retrofits, revolving loan funds, on-bill financing strategies, performance contracting, and more For every $1 of federal investment in the Program, States report $10 of nonfederal investment in energy projects and $7.22 savings in energy costs Recovery Act Impacts Helps States meet their energy needs, contribute to National goals, and reach every sector in their States economy Expected jobs created: approximately 30,000 Program Updates: Section 410 requires Governor Assurances regarding regulatory measures and building codes 19

20 Recovery Act Performance As of September 2011 SEP ARRA Projects have achieved: 238M ft 2 of building space in 32,774 buildings retrofitted $528M in loans made for energy-efficiency and renewable-energy projects 77 MW of solar photovoltaic capacity installed 240,000 Americans trained in energy-efficiency and/or renewable-energy issues 4,864 jobs officially reported in the Quarter ending September 30,

21 SEP Recovery Act Spending Performance States' Spending Performance 3 states 22 states Current SEP Spending at 31 States 68.6% 70% + Spent 40% - 70% Spent Below 40% Spent Data current as of : November 27,

22 DOE s Weatherization Assistance Program (WAP) WAP provides funding to 59 states, territories and Indian tribal governments which fund a network of local community action agencies, non-profit organizations and local governments to provide weatherization services to low-income family homes. Received $5B in Recovery Act Funding High Priority Performance Goal (HPPG) from the White House: DOE and HUD will work together to enable the cost-effective energy retrofits of a total of 1.1 million housing units through the end of FY13. Of this number, DOE programs will contribute to retrofits of an estimated one million housing units. Overall Impacts of Weatherization $437* average first year energy savings Returns $1.80 in energy related benefits for every $1 invested Avoids residential and power-plant emissions of carbon dioxide by 2.65 metric ton/year per home Over life of the measures, saves 53 metric tons of CO2 emissions per home. Decreases national energy consumption by the equivalent of 24.1 million barrels of oil annually. Reduced consumption contributes to long-term energy independence Decreases electricity generation and resulting pollution; thus improving local air quality reducing adverse health effects 22

23 Weatherization Potential 6.9M Homes Weatherized Current Eligible Households Clients Served 38M Eligible More than 100,000 homes weatherized annually with regularly appropriated DOE funds* 275,000 weatherized using ARRA funds in 2010 alone Nearly 600,000 will be weatherized during Recovery Act period * Since

24 WAP Recovery Act Performance The Weatherization Assistance Program has now made more than 500,000 low-income homes nationwide more energy efficient, using Recovery Act Funds. The program is helping families save hundreds of dollars a year on their energy bills, while employing more than 14,000 workers across the country and others throughout the supply chain. 24

25 DOE s Energy Efficiency & Conservation Block Grant (EECBG) Program DOE s largest local government program, providing grants directly to cities and counties Received $3.2B in Recovery Act Funding New program funded under ARRA, bringing together DOE and over 2,300 local communities for the first time with over 10,000 projects nationwide According to initial grantee self-reporting through December 2010, communities have: o Upgraded the energy efficiency of over 10,000 buildings; o Installed 40,000 efficient street lights; o Upgraded more than 100,000 traffic signals. 25

26 EECBG Recovery Act Funding- $7.6M to States Cities and Counties $1,880,310,000 States $767,480,000 Indian Tribes $54,836,200 Competitive Grants $63,680,000 $390,040,000 26

27 EECBG - Investments By Activity Type $3,000,000, Energy Efficiency Retrofits $2,500,000, Financial Incentive Program Buildings and Facilities Outdoor Lighting $2,000,000, Onsite Renewable Technology $1,500,000, Energy Efficiency and Conservation Strategy Transportation Other $1,000,000, Technical Consultant Services $500,000, Residential and Commercial Buildings and Audits Energy Distribution Material Conservation Program $- 27

28 DOE s Tribal Energy Program (TEP) Provides financial and technical assistance to Tribes for the evaluation and development of renewable energy resources on Tribal Lands o Financial assistance provided on a competitive basis o TEP emphasizes the tribe s role as the decision maker and administrator for the program activities Includes: o First steps toward developing energy efficiency and renewable energy on Tribal Lands o Energy efficiency and renewable development and deployment in Indian Country Appropriations o FY11: $7 million 28

29 Overall Legacies from the Recovery Act State Energy Program Capital Creation through Revolving Loan Funds (RLFs) Body of Best Practices that can be used by others to short cut the process of adopting clean energy policies and implementation Energy Efficiency Relationships and with Conservation local Block governments Grant Program that are active in Relationships pursuing with local clean governments energy that are goals. active in pursuing clean energy goals. Weatherization Assistance Program Training Centers Worker Certification Program Standardized Weatherization requirements ARRA Legacies 29

30 Oct 09 Nov 09 Dec 09 Jan 10 Feb 10 Mar 10 Apr 10 May 10 Jun 10 Jul 10 Aug 10 Sep 10 Oct 10 Nov 10 Dec 10 Jan 11 Feb 11 Mar 11 Apr 11 May 11 Jun 11 Jul 11 Aug 11 Sep 11 Oct 11 Nov 11 Dec 11 Jan 12 Feb 12 Mar 12 Apr 12 May 12 Jun 12 Jul 12 Total Recovery Act Spending Performance $3,500,000,000 $3,000,000,000 Current Payments and Goals $3.1 B $2.9 B $2,500,000,000 $2,000,000,000 $1,500,000,000 $1.7 B Through Aug 2011 Planned Outlays iportal Payments POP June 30 Goal $1,000,000,000 $500,000,000 $- 30

31 Florida State Energy Program Clean Energy Grant $500,000 Retrofit 2 chillers at the West Regional Courthouse Install solar-assisted air conditioners and water heaters at regional parks & nature centers Engineering study to upgrade traffic synchronization system State Alternative Fuels Grant to retrofit CNG fueling infrastructure 31

32 Innovation Toward a New Energy Economy Establishing over $600M Revolving Loan Funds for Sustained Projects Creating a Residential Retrofit Industry 32

33 2012 Stakeholder Conference WIP will host a series of conferences to promote effective working relationships between the Department of Energy and stakeholder groups. The first is planned for May Purpose: Encourage adoption of clean energy technologies Foster relationships between public-sector and private-sector players to share best practices in using clean energy projects to drive economic activity and job creation Conference attendees will: Share information regarding successful implementation strategies for deploying clean energy technologies Understand the strong connection between adopting energy efficient technologies and economic activity Build partnerships with individuals outside of their own sector that will be critical in increasing the market for a number of clean energy projects 33

34 Thank You LeAnn Oliver, Program Manager Weatherization & Intergovernmental Program 34