Energy Efficiency: Understanding the Urgency

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Energy Efficiency Understanding the Urgency
Paul von Paumgartten Director Energy
Environmental Affairs
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Johnson Controls Energy Credentials

• 30 Years Track Record of Energy Efficiency
  Projects
• 500 Million In Annual Revenue
• 100,000 Projects
• 1,000 Energy Professionals
• 3.3 Billion In Outstanding Guarantees
• ENERGY STAR Partner/Ally of the Year
• World Energy Center Gold Medal

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Understanding the Urgency

• Federal Mandates
• SB 459
• Governors Task Force on Renewable Energy/Energy
  Efficiency
• Mayor Barretts Green Team
• Six Wisconsin Cities in Mayors Climate Challenge

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Energy Efficiency Starts With Sustainability
Dow Jones Sustainability Index
Energy Efficiency
Economic
A Business Approach That Creates Long-Term
Shareholder Value by Embracing Opportunities
and Managing Risks deriving from Economic,
Environmental and Social Developments Or Changes
Environmental
Social
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Managing Risks
Economic

• High energy bills
• High operating costs
• Outdated equipment
• No funding for projects

• Mandates/regulations
• Air pollution
• GHG emissions
• Nuclear waste

• Health care issues
• Poor indoor air
• Productivity
• Community concerns

Environmental
Social
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Embracing Opportunities
Economic

• Lowers energy bills
• Funds savings/investment
• Economic development

• Creates jobs
• Improves building comfort
• Better worker productivity

• Reduces air pollution
• Reduces GHG emissions
• Reduces nuclear waste

Environmental
Social
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Path to Sustainability Newly Defined Best
Practices
Gain Support
Prioritize
Communicate
Implement
Sustainability Navigator
Energy Environment Footprint
Green Solutions
SEEC
Leedspeed ROI Planner

• Strategic Sustainability plan for Organization
• Business Case development
• Economic
• Environment
• Social

• Utility Bill Processing Payment
• Benchmarking
• Energy Star
• GHG Emissions management

• Education
• Internal Comm.
• External Comm.
• Impact Reporting
• LEED
• ENERGYSTAR
• GHG
• Footprint
• Sustainability

• Assessment
• Financial Evaluator
• Project Management
• Certification
• Portfolio Management

• Energy Efficiency
• Operational
• Alliance Solutions

A Comprehensive Facility-Based Approach to
Sustainability
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Innovative Projects

• Covenant Healthcare
• Optimize energy, capital and operational budgets
  related to their facilities.
• Tie to Mission of providing exceptional and
  compassionate health care service
• Five-year savings 6.9M in Energy, Operational
  and Capital Cost Avoidance

• Miller Park
• Metasys Building Automation System
• Keep stadium comfortable
• Monitor/manage utility costs

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Performance Contracting

• Finance energy efficiency through savings to
  energy bill
• Existing statute 16.858
• Widely adopted throughout the country
• New utility rate costs have changed the economics
  of the past

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Performance Contracting

• Germantown Schools
• 149,954 in energy savings 2003-05 with no school
  investment
• Marquette University
• Invested 4.9 million to improve lighting
  systems, upgrade HVAC systems in 19 facilities
• Reduced annual electricity, steam and water
  consumption costs by 410,000 in the first year.
• Wisconsin Energy Initiative
• State buildings
• 60M of self-funded energy projects installed
• 12 reduction in energy use 1996-2005
• Wisconsin jobs created

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Green Buildings

• USGBC National coalition representing entire
• building industry.
• Promotes design, construction, operation of
  environmentally responsible, profitable, healthy
  places to live and work.
• Launched Leadership in Energy and Environmental
  Design (LEED) in 2000.
• Rating system to guide sustainable project
  development

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LEED Certification

• Sustainable Sites
• Materials Resources
• Water Efficiency
• Energy Atmosphere
• Indoor Environmental Quality
• Innovation
• Brengel Technology Center
• Schlitz Audubon Nature Center
• Other local projects

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Next Steps

• Plan and implement SB 459
• Consider legislation for White Tags
• Promote the National Energy Efficiency Action
  Plan

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White Tags

• Measures of GHG reductions associated with energy
  efficiency projects
• Each White Tag equates to a measurable amount of
  energy avoided
• Each White Tag 1-MWh of electricity avoided
• Converted to GHGs per EPA protocol.
• Green tags are related to using renewable power
• How it Works
• Invest in energy efficiency projects
• Make upgrades to lighting, motors, fans, pumps,
  chillers, steam traps, HVAC controls, boilers,
  operational/behavioral changes.
• Use White Tags to offset GHG emissions within the
  US
• White Tag Marketplace
• Sold to utilities to meet mandated portfolio
  standards
• Sold to corporations and institutions to meet GHG
  emission goals.  
• Connecticut, Pennsylvania, and Nevada
• have passed legislation for White Tag programs
• and begun implementation

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National Energy Efficiency Action Plan

• Goal Create a sustainable aggressive national
  commitment to energy efficiency through gas and
  electric utilities, utility regulators, and
  partner organizations.
• Announce at July 2006 NARUC meeting
• Recommendations
• Utilities and commissions agree that Energy
  Efficiency is the First Priority
• Energy efficiency best practices, including
  utility rate design, technologies, policy action
  and funding mechanisms
• National energy efficiency conferences
• http//www.epa.gov/cleanrgy/eeactionplan.htm

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Economic
Environmental
Social