December, 2007
Dec. 20, 2007
Bush signs energy law that advances efficiency
The energy bill signed into law by President Bush Wednesday did not give the energy efficiency industry all that it sought, but it still significantly boosts fuel efficient cars, demand response, combined heat and power and lighting and appliance standards, say efficiency advocates
The American Council for an Energy-Efficient Economy (ACEEE) estimates that the Energy Independence and Security Act of 2007 (H.R. 6) will provide consumers and businesses with more than $400 billion in energy savings between now and 2030. The provisions are expected to reduce U.S. energy use in 2030 by 7%.
“We are particularly gratified that the bill includes new efficiency standards for incandescent lamps and other products plus authorization for the Department of Energy to set regional standards for heating and cooling equipment, based on provisions that ACEEE negotiated with industry,” said Steven Nadel, ACEEE executive director.
The Alliance to Save Energy hailed the new law as the most significant energy-efficiency legislation in three decades. Savings from the lighting efficiency standards alone exceed the combined energy and money savings of all 21 federal appliance standards adopted since the year 2000, according to the alliance.
The alliance projected that by 2020, the lighting standards will reduce consumers’ annual electricity bills by more than $13 billion. The nation will save more than 140 billion kWh/year – an amount exceeding that used by all the homes in Texas in 2006. The new law will eliminate the need for nearly 60 mid-sized power plants, said the alliance.
Robert Chiste, chairman, president and CEO of Comverge, a demand response company, described the law as a “major turning point in the economics of clean energy” and an “extraordinary new chapter” for demand response, smart grid technology and energy efficiency.
“For the first time, our federal government has acted decisively on a national energy policy, demonstrating that it is getting serious about ensuring that investments in clean energy solutions are rewarded on a par with power plants,” he said.
Despite the gains, the clean energy industry failed to persuade lawmakers to pass two key initiatives. The final bill was stripped of tax incentives for efficiency and renewable energy. It also lacked a renewable energy standard, which would have required that a percentage of the nation’s electricity needs be met through renewable energy and efficiency.
Had those two provisions remained intact, the bill would have provided 11% more energy savings by 2030, according to ACEEE. Moreover, clean energy advocates looked to a national renewable energy standard to speed up development of both the renewable energy certificate--or REC--trading market and its sister market for energy efficiency certificates, also called “white tags.”
Clean energy advocates have vowed to press for the tax incentives and renewable energy standard in future legislation.
In the final analysis, the effectiveness of the new energy law hinges on Congress and President Bush fully funding its efficiency provisions, as it goes through the appropriations process. “Without further action, we will not realize fully the energy and money savings this bill promises the American people; for example, full funding of the commercial building initiative could reduce commercial building energy use by 25%, but without such funds we likely will forego these significant savings,” said Kateri Callahan, alliance president.
Highlights of H.R. 6 include:
*Corporate average fuel economy standards, more commonly called CAFÉ standards, that mandate fuel efficiency of 35 miles/gallon for cars and light trucks by 2020
*New efficiency standards for a range of appliances and equipment, including dishwashers, dehumidifiers, boilers, electric motors, lamps, freezers, among others.
*A requirement that the common light bulb use 20-30% less energy by 2012-2014. The Department of Energy set further standards to reduce energy use to no more than about 65% of current lamp use by 2020.
*The bill recognizes the need to develop new manufacturing processes and make use of alternative feed stocks in response to the increasing cost and scarcity of energy resources.
*Several provisions to advance the use of combined heat and power, recycled energy and district energy.
*An initiative to make new commercial buildings “zero energy structures” by 2030, meaning they produce as much energy as they use. A goal is set to bring existing buildings to the same standard by 2050.
*A national assessment of demand response potential and new policy recommendations to achieve the potential.
* Federal grants and matching
funds to spur smart grid technology, a recommendation that states provide rate
recovery for smart grid investments, and a requirement that each state consider
the cost-effectiveness, reliability, performance, and societal benefits of
pursuing a smart grid.
ACEEE's preliminary analysis of the bill is available at
http://aceee.org/energy/national/07nrgleg.htm.
National Governors Association announces clean energy partnership with Discovery Communications, releases “Call to Action”
The National Governors Association (NGA) Dec. 13 announced that it has partnered with Discovery Communications—which produces the Discovery Channel, TLC, Animal Planet and other television programming—in an effort to motivate people to embrace clean energy and energy efficiency in their everyday lives.
As a result of the partnership, Discovery Communications will begin airing in 2008 a public service announcement that demonstrates simple ways to reduce energy consumption.
Next year, Discovery Home channel will become Planet Green—the first 24-hour eco-lifestyle channel.
“Planet Green is a corporate-wide initiative for Discovery Communications made up of several different elements,” said Planet Green spokesman Brian Hughes. “One is a 24-hour lifestyle-focused channel that will include everything from transportation to home design to food.”
In addition to announcing the partnership with Discovery Communications, four NGA governors gathered in Florida to discuss advancing alternative fuels and clean vehicles in the U.S. and to release the publication, “A Call to Action,” which urges the nation’s governors to solve energy challenges. The moves were part of the NGA’s “Securing a Clean Energy Future” initiative.
“The best part of the NGA is the built-in network, which ensures that governors know about best practices in the states,” said Christopher Cashman, a spokesman for NGA. “As a result of ‘Securing a Clean Energy Future,’ states will come together and identify their best practices in environmental policy and clean energy. They’ll share them so they can see examples of what’s working and tailor them to individual states.”
Confusing “green” language makes it difficult for consumers to cut energy use, study finds
Customers generally don’t understand the language associated with going “green,” and because of this, they generally don’t behave in a way that leads to significant cuts in energy consumption, even though they say they want to be “green,” according to a study conducted by EcoAlign, a marketing agency focused on energy and the environment.
The study, based on 1,000 online interviews in November, found:
· Most consumers can’t articulate the difference between “energy conservation” and “energy efficiency. Only 13% of those responding said that energy efficiency is related to saving money or cutting down on fuel costs.
· A quarter of those surveyed said they try to buy energy efficiency products to conserve energy. Nineteen percent lower their thermostats. Women are more likely to take actions designed to conserve energy.
· About 30% of respondents understand the term “smart energy” and about 32% say they are not doing enough in terms of “smart energy.”
· One third of those surveyed don’t know what “clean energy” means.
· Forty-one percent of those polled don’t know what “demand response” is, but find it unpopular (44%), annoying (42%) and unhelpful (40%).
“The green gap in communications contributes to a growing misalignment between customers’ stated intentions, e.g., their desires to be more green or frugal with energy conservation, and their actual behavior,” the study said.
The industry needs to educate consumers about the energy they use, their impact on the environment and what actions they can take, the report said. “Clearly consumers are aware they could be doing more in terms of conservation and efficiency, but they don’t know what to do and they don’t think it will be easy. This is illustrated in the high percentages answering they are not currently doing enough and the low percentages choosing ‘easy to use’ to describe any of the energy terms,” said the report. To read the entire report, click here: http://www.ecoalign.com/node/41
New York City launches 10-year plan to reduce energy usage
New York City intends to reduce energy consumption and greenhouse gases in municipal buildings 30% by 2017, and will start with a short-term action plan recently announced by Mayor Michael Bloomberg.
The initiative is part of Bloomberg’s PlanNYC, A Greener, Greater New York, unveiled earlier this year to bring to the city more energy efficiency and clean and distributed power. Bloomberg hopes to avoid a repeat of last summer’s blackout that left 65,000 residents without electricity.
The plan is significant because municipal government accounts for 6.5% of New York City's total energy usage and 10% of its peak electricity demand.
In all, the city will take on 132 projects throughout its five city boroughs with a goal of reducing greenhouse gas emissions by about 34,000 tons annually. The projects include lighting replacement and sensor installation; heating, ventilation, and air conditioning improvements; water and sewer equipment upgrades, and vehicle replacements.
Bloomberg plans to finance the 10-year plan with an annual commitment of 10% of the city's annual energy expenditures, which are $800 million for 2008.
In creating the short-term action plan, a steering committee sought projects with a rapid return on investment and overall energy savings. The steering committee also identified a series of pilot programs, studies, and advisory services to help implement a larger 10-year energy plan, which is due to be released by June 30.
Special Final Note: Look for Elisa Wood’s story, “New markets drive US efficiency boom,” in the January 2008 issue of the Energy Economist, a Platts publication. The article, now available, looks at the rise of efficiency as a first fuel choice in several states, its new status as an equal to power capacity, and the emerging energy efficiency certificate market. Sources quoted include the Alliance to Save Energy, the American Council for an Energy Efficient Economy, Center for Resource Solutions, Connecticut Department of Public Utility Control, Conservation Services Group, ConsumerPowerline, Department of Energy, Duke Energy, ISO/RTO Council, Neuwing Energy Ventures, South River Consulting, Salt River Project, Sterling Planet, United Illuminating and others.
Dec. 12, 2007
Rapid growth expected in smart meter market
The market for smart meters is expected to expand 24% through 2013, far more than the 2% growth rate for conventional electric, gas and water meters, according to a global study by ABI Research.
Smart meters – which allow two-way communication between customer and utility – will likely account for 28% of electric meters in less than six years, says the Dec. 10 report, “Advanced Metering Infrastructure (AMI): The Market Opportunity for Smart Meters and Home Area Networks.”
Smart meters are important to efficiency efforts because they offer customers the ability to see how much power they use for various activities. And, if utilities offer time-of-use pricing, customers can refrain from using appliances, such as clothes washers and dryers, during peak demand periods when prices are high.
While North America’s smart meter market is reasonably large and heterogeneous, Europe is far ahead in terms of total number of smart meters deployed. The report credited much of Europe’s smart meter growth to the Italian utility Enel.
“The original intent of an earlier generation of advanced metering technology, called AMR (Advanced Meter Reading), was to save on the cost of manual meter reading,” says Sam Lucero, ABI Research senior analyst. “Today’s AMI, however, is increasingly seen as an effective way to increase the efficiency of energy use and reduce a region’s carbon footprint.”
ABI Research also found that a handful of vendors command much of the smart meter market in North America and Europe. Many smaller firms, however, develop the communications technologies needed to enable smart metering. Recently, a few large meter vendors have been buying up these smaller supporting technology firms.
Further information about the report is available at:
http://www.abiresearch.com/products/market_research/Advanced_Metering_Infrastructure
Study identifies consumers of green appliances
Consumers who care about the environmental impact of their technology purchases tend to be female, older, and somewhat less well-off than those who are not sensitive to environmental issues, according to a new study by Forrester Research.
The study distinguishes between “bright greens” who are highly motivated to buy green technology even if it costs more, and ordinary greens, who are still motivated but not quite as much. About 12% of US adults are "bright green," according to a Forrester.
To attract green buyers, marketers and designers must lower the impact of manufacturing, increase product life cycles, and take into account product recycling, says the report.
Further information is available at Forrester.com
Online tool rates data center efficiency
APC now offers an online tool to help information technology (IT) professionals peg the efficiency levels of their data centers.
Called the “Efficiency Quotient, “ the tool not only rates efficiency levels but also recommends data center improvements and provides access to related white papers, other tools and information. This is the first in a series of efficiency quotient tools that APC will introduce in the months ahead.
Gartner Research predicts that by 2008, 50% of data centers will have insufficient power and cooling capacity. Many IT professionals already grapple with the problem.
"APC’s new Data Center Efficiency Quotient tool offers our customers and others a quick way to benchmark themselves on the energy efficiency of their data center in both a qualitative and quantitative way," said Carl Cottuli, vice president of APC's Data Center Science Center. "In addition to providing an overall efficiency score, the measurement tool offers peer results so companies can compare themselves to other companies in their industry. “
APC provides power and cooling services for data centers and industrial sites. Further information about the report is available at http://www.apcc.com/support/service.
Groups seek to establish standards for high-performing buildings
With cities beginning to call for sustainability requirements in new construction, the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE), the Illuminating Engineering Society of North America (IESNA) and the U.S. Green Building Council (USGBC) are developing standards for high-performing buildings.
The standard—called Standard 189.1 is designed to be a model code for high-performing green buildings, according to a press release from the groups.
The standard will establish minimum requirements for the design of high-performance new commercial buildings and major renovation projects, according to the press release. It will address energy efficiency, a building’s impact on the atmosphere, sustainable sites, water use efficiency, materials and resources, and indoor environmental quality.
Many municipalities and counties now require publicly owned buildings to meet green building standards. Some, like Portland, Ore., are considering proposals to require private building owners to meet green building standards. Many of the requirements meet standards established under the LEED (Leadership in Energy and Environmental Design) Green Building Rating System, established by the U.S. Green Building Council.
Here are some examples from a report, “LEED initiatives in Governments and Schools,” published by the U.S. Green Building Council.
For more information about such mandates, click on http://www.usgbc.org/DisplayPage.aspx?CMSPageID=1779
The standard developers will share it during a seminar at ASHRAE’s 2008 winter meeting.
EE state news
Massachusetts -- The state has issued a Smart Growth/Smart Energy Toolkit, a collection of resources to help communities, developers and other stakeholders with planning and development issues.
The guide offers information on efficiency, green building, and sources of renewable power.
“This Smart Growth/Smart Energy Toolkit provides cities and towns with the model bylaws and other tools they need to change local zoning in ways that encourage the siting of renewable energy facilities, conserve land, and enhance stewardship of natural resources,” said Ian Bowles, secretary of Energy and Environmental Affairs.
The toolkit includes narratives, model bylaws, case studies, slideshows and resource links on business improvement districts, mill revitalization districts, outreach and education, smart energy, wind power, environmental justice, smart parking, wastewater alternatives, zoning decisions, and form-based codes – building codes that regulate development to achieve a specific urban form or community vision.
The toolkit, now in its second edition, is available at
http://www.mass.gov/envir/smart_growth_toolkit/index.html.
Montana
– Governor Brian Schweitzer has called on state agencies to reduce their energy
use 20% by the year 2010.
Much of the reduction will come from electricity. But the program also includes
a corporate average fuel economy (CAFÉ) standard for state vehicles, with a goal
of achieving at least 30 miles per gallon.
The governor also unveiled a climate change report, which calls for the state to join the Western Climate Initiative, and develop and exploit opportunities for terrestrial carbon sequestration. Some of the recommendations in the report will require legislation and some will require further study. The report is available at www.mtclimatechange.us
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Dec. 5, 2007
US can cut energy use 50%, say industry leaders
The US could cut energy use by at least 50% over 18 years through aggressive pursuit of efficiency, according to a new report backed by some of the nation’s largest power companies.
If the goal is achieved, the nation will save $100 billion in energy costs in 2025, said the Energy Efficiency Leadership Group, 60 leading companies and organizations, among them American Electric Power, Duke Energy, Entergy and National Grid.
"Vision for 2025: Developing a Framework for Change” sets out a series of actions for energy companies and policymakers that are designed to avert use of 50 GW of power.
“We remain substantially under-invested in efficiency at a time when using energy wisely can help address rising energy costs, rising emissions of greenhouse gases, and our dependence on foreign fuel supplies,” said James Rogers, president, chairman and CEO of Duke Energy and Marsha Smith, president-elect of the National Association of Regulatory Utility Commissioners, in the report’s introduction. “We need a concerted, sustained effort to overcome what are truly surmountable hurdles to making energy efficiency a larger part of our supply picture.”
The 82-page report calls for making efficiency a priority in utility and state energy resource plans, giving efficiency the same economic value as power supply, and improving measurement and monitoring of efficiency programs.
In addition, the plan says state agencies need to clearly establish who is responsible for delivering energy efficiency to consumers. States also need to do a better job creating and enforcing building codes and appliance standards.
Utilities must adjust rates so that they encourage consumer participation in efficiency programs, the report said. And large businesses that operate in several states should receive consistent energy data so that they can accurately monitor use from facility to facility, the report said.
The plan also pushed for increased use of smart meters and thermostats, demand response, plug-in hybrids, and other advanced technologies.
At the same time, the report emphasized that efficiency cannot avert the need for new generating plants to meet growing US demand for electricity. What energy savings can do, the report said, is help the nation shut down old, polluting generators.
The plan envisions a world by 2025 where utilities will operate more as energy service companies than power supply providers. Efficiency will be an important part of their business and revenue stream, and a vibrant efficiency industry will emerge. But a key to success, the report said, is improving the energy efficiency of homes, businesses, schools, governments, and industries, which consume more than 70% of the nation’s natural gas and electricity.
Prepared with assistance from the US Department of Energy and Environmental Protection Agency, the report is available at http://www.epa.gov/cleanenergy/
Lessons from monitoring
high-performing buildings
Measuring what works, and what does not in high-performing buildings provides
important information that can be used in designing future buildings, said
Donald Winston, director of technical services for The Durst Organization, New
York, N.Y. , which builds, owns and manages Manhattan properties.
The Durst Organization recently incorporated such information--based on
measuring performance in 4 Times Square---to change the design of its current
project, The Bank of America Tower at 1 Bryant Park in New York City, said
Winston.
“What happened at 4 Times Square affected Bryant Park,” he said. “We learned
from our experience and used the measured performance to guide us during the
design process.”
For example, The Durst Organization decided against using fuel cells, based on
their performance at 4 Times Square and opted instead to use a natural gas-fired
combustion turbine, he said.
In addition, commissioning and owner involvement were begun earlier-- during the
design and development phase at 4 Times Square, rather than during the
construction phase.
Winston is one of three speakers who will address performance measurement in
high-performing buildings in a seminar at the American Society of Heating and
Air-Conditioning Engineers (ASHRAE) 2008 winter meeting, Jan 19-23 in New York
City. The seminar is called “Green Building Energy Performance: Some Experience
and Data from the Field.”
Durst’s experiences with these buildings also are featured in a new magazine,
High Performing Buildings, recently launched by ASHRAE.
Clinton forms partnerships to improve EE in public, private buildings
The Clinton Climate Initiative (CCI), founded by former President Bill Clinton,
announced it will partner with the city of Chicago, GE Real Estate and the U.S.
Green Building Council (USGBC) to improve energy efficiency in schools across
the US and some high-profile private buildings.
Clinton and Chicago Mayor Richard M. Daley agreed to three projects between the
city of Chicago and CCI’s Energy Efficiency Building Retrofit Program. CCI and
the city will focus on the Merchandise Mart, the world’s largest commercial
building, and the Sears Tower, the tallest building in America. The goal is to
increase the buildings’ energy efficiency and reduce their carbon footprints.
CCI is also working on a project to retrofit privately owned, multi-tenant
housing in Chicago. Building owners will sign energy performance contracts and
the project will be financed using projected energy savings, according to a CCI
press release.
Under CCI’s partnership with GE Real Estate, the organization will implement
retrofit projects in GE Real Estates buildings, comprised of 385 million square
feet in 31 countries.
The CCI partnership with the U.S. Green Building Council will focus on reducing
energy consumption in K-12 schools across the U.S.
“Green schools are a powerful demonstration of our commitment to our children’s
future, and it’s a powerful way to show the next generation how we can all make
a difference in this world,” said Rick Fedrizzi, president and CEO of USGBC in a
press release.
Efficiency key to carbon reductions, says report
Energy efficiency measures can play a key role in reducing carbon emissions, according to a November 29 report by several companies and the Natural Resources Defense Council.
“Reducing US Greenhouse Gases: How Much at What Cost?” looks at the opportunities and costs across the U.S. economy to substantially reduce greenhouse gases by 2030. In addition to NRDC, the report was sponsored by National Grid, DTE Energy, Environmental Defense, Honeywell, Natural Resources Defense Council, PG&E, and Shell.
“Doing nothing is no longer an option - greenhouse gas emissions will continue to rise, resulting in more damage to the environment and even greater costs when we inevitably come to address the problem. We believe energy efficiency programs are the best way to reduce the greenhouse gas emissions,” said Steve Holliday, CEO of National Grid.
The report attempts to give business leaders and policy makers a cost-effective framework to craft policy and prioritize actions to cut greenhouse gas emissions.
The analysis suggests that the U.S. can substantially cut emissions at a manageable cost to the economy and that energy efficiency has an important part to play. Many efficiency options will pay for themselves, significantly reducing carbon emissions at no cost to the economy, according to the report.
Holliday said that National Grid has committed to cut greenhouse gas emissions by 60% by 2050 -- a target beyond what is required by the Kyoto protocol. National Grid’s energy efficiency programs over the last two decades already have reduced emissions by 14.5 million tons and saved customers $2.5 billion, he said.
The report is available at http://www.mckinsey.com
State News
Massachusetts
Energy management company Aramark says it has helped Berklee College of Music in Boston reduce its campus-wide energy use by about 40%, surpassing the college’s goal of 10%.
Berklee is the world’s largest independent music college, with approximately 4,000 students and 500 faculty members.
Aramark’s program focused on both energy supply and demand side opportunities for the college. The company provided Berklee with a dedicated on-site energy manager to lead the energy program and to help create awareness about energy efficiency within the college community.
Among other things, Aramark analyzed usage patterns and periods when demand is highest, such as during classes or scheduled events. The company then developed an equipment operating plan to match up with the usage patterns.
“Our approach is unique because it balances community engagement, capital investment, energy procurement, and optimization of existing systems operation. Our integration of these areas has an immediate and sustainable impact on a campus carbon footprint while providing the greatest return on capital and human investment,” said Ron Mesaros, associate vice president of technical services for Aramark.