Biregional Forum North America

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Bi-regional ForumNorth America Latin America
and the CaribbeanEnergy Efficiency in the
USAHotel NikkoMexico City, Mexico

• June 6, 2006
• John J. Easton, Jr.
• Vice President, International Programs
• Edison Electric Institute

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National Equipment Efficiency Standards

• The Energy Policy Act of 2005 mandated national
  efficiency standards (or rulemaking deadlines)
  for
• Commercial Refrigerators and Freezers
• Rooftop Packaged Air Conditioners and Heat Pumps
• Commercial Clothes Washers
• Commercial Ice Makers
• Refrigerated Beverage Vending Machines
• Lighting (exit signs, fluorescent mercury vapor
  ballast)
• Dry-Type Transformers
• Unit Heaters

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State Equipment Efficiency Standards

• The following states have already set their own
  efficiency standards for commercial equipment
• Arizona
• California
• Massachusetts
• New Jersey
• New York
• Oregon
• Rhode Island
• Vermont
• Washington

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Commercial Tax Incentives

• Tax deduction of 1.80 per square foot for
  commercial buildings that exceed the energy
  efficiency of a baseline building in ASHRAE
  90.1-2001 Building Code by 50.
• Tax credits are available for on-site distributed
  generation systems meeting certain efficiency
  requirements.
• Tax deductions are also available for sub
  systems that increase efficiency by 50, up to
  0.60 per square foot.
• Interior Lighting
• Heating, Cooling, Ventilation, and Hot Water
  Systems
• Building Envelope

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Top Ten States for Incentive Programs

• California (gt600 Million in 2006, 2 Billion
  by 2008)
• New York (about 280 Million in 2006)
• Florida (greater than 200 Million in 2006)
• New Jersey (about 160 Million in 2006)
• Massachusetts (greater than 100 Million in 2006)
• Texas
• Minnesota
• Iowa
• Connecticut
• Oregon

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Commercial DG Tax Incentives

• The following on-site distributed generation
  systems can receive new or expanded federal tax
  credits
• Solar Energy increased from 10 to 30 for 2
  years
• Fuel Cells 30 credit capped at 1000/kW
• Microturbines 10 credit capped at 200/kW

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Consumer Tax Incentives

• Tax credits in 2006 and 2007 for the following
• New High-Efficiency Heating / Cooling Systems
• New High-Efficiency Water Heating System
• Upgrades to Building Envelope (insulation,
  windows, doors)
• Solar Energy and Fuel Cell systems
• Hybrid vehicle (car or SUV)
• Due to manufacturer tax credits, prices should be
  coming down for high-efficiency dishwashers,
  clothes washers, and refrigerators in 2006/2007.
• Builders get tax credits for high-efficiency new
  homes.

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EEI Energy Efficiency Principles

• Recognize the Opportunities
• Recognize the Positive Role of New Electric
  Technologies
• Make Energy Efficiency a Good Investment
• Make Energy Efficiency Sustainable

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EEI Energy Efficiency Principles

• Provide Customers With New Options to Take
  Advantage of Wholesale Price Variations
• Cost Effective National Appliance Efficiency
  Standards and Building Codes
• Efficiency is Everyones Business
• Recognize the Authority of the States