STIMULATING A GREEN ENERGY ECONOMY

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STIMULATING A GREEN ENERGY ECONOMY

• Mark Hopkins
• United Nations Foundation
• June 2009

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POLICY ELEMENTS
A comprehensive policy approach provides the
foundation to grow a new economy based on a
commercial market for clean energy.
Result New business and job opportunities
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MAKING A DOWN PAYMENT
To control our own destiny, America must develop
new forms of energy and new ways of using it.
This is not a challenge for government aloneIt
is a challenge for all of us. President
Barack Obama, December 15, 2008
The economic stimulus jumpstarts a fundamental
change in energy strategy.
Additional policy changes extend and enhance the
benefits of the stimulus.
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REBUILDING AMERICA

• American Recovery Reinvestment Act includes
  about 30 billion for clean energy
• 11B for smart electric grid
• 6B renewable energy loan guarantee to leverage
  60B in private sector financing
• 10B for school energy retrofits
• 8.5B for federal building retrofits
• 5B to weatherize a million low income homes
• 6.3B for state municipal energy programs
• 8.2B for research, advanced batteries and CCS
• 500M for a Green Jobs Retraining Program

• Stimulus especially targets the building sector

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STIMULUS BENEFITS

• Energy efficiency is the largest supply resource
  in the US the stimulus builds on that success
  by
• Retrofitting 4 million buildings, leading to the
  retrofit of 50 million by 2020
• Directly creating 100,000 new jobs and
  stimulating many more though indirect economic
  effects
• Creating new business activity in the hard-hit
  construction industry
• Bringing renewable energy to scale to lower per
  unit cost of production to make it more
  affordable
• Lowering energy costs for millions of families
  and small businesses

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THE COALITION APPROACH
Utilities and Building Trades
IT , Utilities, Business
Labor
Government
Environmental, Religious, Consumer Groups
IT Sector, National Labs, Universities
Financial Institutions, Insurance, Investors
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REBUILDING AMERICA PARTNERS
Stimulus was supported by a diverse
coalition labor, construction, business, and
environmental organizations
AFL-CIO -- AFL-CIO Building and Construction
Trades -- Allianz of America -- Associated
Builders Contractors -- Associated General
Contractors of America -- Building Owners and
Managers Association -- Change to Win -- Center
for American Progress Ceres -- Con Edison --
Consumer Federation of America -- Copper
Development Association -- Council on
Competitiveness -- Edison Electric Institute --
Energy Future Coalition Intel -- Jones Lang
LaSalle -- National Wildlife Federation --
Natural Resources Defense Council -- North
American Insulation Manufacturers Association --
Pacific Gas Electric -- Polyisocyanurate
Insulation Manufacturers Association -- The Real
Estate Roundtable -- Sacramento Municipal Utility
District -- United States Green Building Council

• The breadth of this coalition reflects the very
  strong public support for energy efficiency
  investments. Rebuilding America will pay off
  with an immediate economic stimulus as well as
  being a good long-term investment in the economy.
  A failure to include a major investment in
  energy efficiency in the economic recovery
  package would be a tremendous mistake.
• Tim Wirth, UN Foundation President and former US
  Senator

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WHY ENERGY EFFICIENCY?

• Its Cheaper Programs deliver energy
  efficiency for 3 to 4 cents per kWh as compared
  to 10 cent or more per kWh cost of new power
  supply
• Its Cleaner No GHG emissions and eliminates
  the need for hundreds of new polluting power
  plants.
• Its Faster A new power plant takes 6 to 12
  years to approve and build energy efficiency
  can be deployed immediately.
• Its Bigger Energy efficiency can supply most
  or all electricity demand growth through 2030.
• Its Better Consumers save billions of dollars
  in utility bills and it drives sales of energy
  efficient products and creates thousands of new
  jobs.

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ENERGY CLIMATE LEGISLATION

• US House of Representatives
• Establishes a National Cap and Trade Emissions
  Reduction Market
• Includes an energy efficiency and renewable
  energy standard and provisions on Smart Grid
• Approved by House Energy and Commerce Committee
  and is now awaiting full approval by full House
  of Representatives
• US Senate
• Deploys clean-energy technology and improves
  energy efficiency
• Increases energy innovation and makes energy
  markets more transparent
• The bill awaits Senate Energy Committee approval.
• Once the two bills are approved they will be sent
  to a House/Senate Conference Committee that will
  prepare final compromise legislation once
  approved it will be sent to President Obama to
  sign.
• This legislation is the critical to establish the
  US position at Copenhagen Climate Negotiations
  this December