ENERGY DEMAND ACTIONS
In 1990, the United States consumed nearly 85 quadrillion Btus of energy, which produced 1,367 million metric tons (MMTs) of carbon. Fossil energy consumption is responsible for more than 85 percent of U.S. greenhouse gas emissions.
Investing in energy efficiency is the single most cost-effective way to reduce CO2 emissions. The Action Plan combines an array of public/private partnerships to stimulate the deployment of existing energy-efficient technologies and accelerate the introduction of more advanced technologies. These programs will cut CO2 emissions while enhancing productivity at home and our competitiveness abroad. It is an aggressive agenda, and it is backed up with the resources necessary to get the job done.
Technical studies have consistently shown that profitable energy efficiency investments exist in residential, commercial, and industrial sectors, yet many of these opportunities go unrealized. This observation neither refutes the technical studies nor suggests that people or firms behave irrationally -- energy analysts have identified the information, regulatory, financial and institutional barriers that impede this investment. Many private sector efforts successfully address these barriers. For example, utility sponsored conservation programs and energy service companies are able to exploit opportunities for profitable energy savings.
Programs that enhance and accelerate these trends can help reduce greenhouse gas emissions and increase U.S. competitiveness. The Action Plan is a comprehensive strategy that applies innovative solutions to these investment barriers -- from financial reforms in residential mortgages to agreements between motor manufactures and users. This plan will align market forces with the environmental imperative to reduce greenhouse gas emissions.
In the past, many Federal programs have been a confusing patchwork of competing activities that were not coordinated effectively with utility or state and local efforts. By expanding existing successful programs, combining them with new and complementary initiatives, and linking programs with state, local, and private sector efforts, the Action Plan will maximize the energy-saving impact of Federal programs.
Commercial Energy Efficiency Strategy
In 1990, commercial buildings accounted for nearly 11 percent of total end-use energy consumption. However, commercial buildings consumed over 30 percent of all electricity, primarily for lighting, heating, cooling, and air handling. Including the fossil fuel used to generate the electricity, the commercial sector accounts for over 15 percent of U.S. CO2 emissions.
Across America, companies are investing in energy efficiency in order to improve their energy performance, lower overhead, and increase their competitiveness. The EPA Green Lights program continues to help firms reduce lighting bills by forging agreements with corporate partners, utilities, lighting equipment suppliers and by offering state-of-the-art technical assistance. DOE and EPA sponsor research programs in commercial energy technologies. Expanding these programs into new technologies and markets will further cut greenhouse gas emissions while improving competitiveness.
PRESIDENT CLINTON IS DIRECTING:
- EPA and DOE to launch new coordinated initiatives, Energy Star Buildings and Rebuild America, for efficient heating, cooling, and air handling.
- These programs will bring the most up-to-date technical knowledge to the people who need it, through coordinated marketing and technical support.
- EPA and DOE will complete the design phase of the programs and establish pilot partnership efforts by the end of 1994, and will expand the program nationwide in 1995.
- EPA to redouble Green Lights efforts to reach untapped portions of the commercial lighting market. Since its inception in 1991, the Green Lights program has entered into more than 1,000 partnership agreements to analyze and, where profitable, to upgrade lighting equipment with more energy-efficient systems.
- The expanded Green Lights will include new partnerships with electric utilities, a new marketing effort targeted to attract non-profit partners, and expanded technical support for program participants.
- DOE to create a State Buildings Energy Incentive Fund that includes state revolving funds for public buildings. The Administration will provide seed money of $10 million per year over five years to States to fund design and start-up of energy management programs for public buildings.
- DOE to initiate cost-shared demonstrations of emerging technologies in Federal, State or local government as well as private buildings. This action will help overcome the lack of confidence in new technologies, a major barrier to their acceptance.
Eli Lilly & Company to save $3 Million Each Year with Green Lights
Residential Energy Efficiency Strategy
In 1990, America's homes consumed 15 percent of all U.S. end-use energy, and accounted for 34 percent of U.S electricity demand. Including the fossil fuels used to generate electricity for homes, the residential sector contributed 19 percent of U.S. CO2 emissions in 1990. Key targets for improvement include heating and cooling, home appliances, lighting, and the design of the building exterior itself. An energy-efficient new home that meets today's best design criteria consumes 50 percent less energy than a poorly designed alternative, while offering a lower lifecycle cost. A typical home built 15 years ago can be upgraded to save 20 percent of energy use, at a profit to homeowners.
The Action Plan targets key opportunities in the residential sector, and includes a mix of partnerships with business and utilities, economic incentives, and new standards and building codes. The plan will also count on homeowners to embrace the many money-saving options available, as local governments and utilities reach out to assist in this effort.
PRESIDENT CLINTON IS DIRECTING:
- EPA and DOE to form new "Golden Carrot" partnerships with non-profits, utilities and environmental groups to accelerate the commercialization of advanced energy efficient appliances. The Golden Carrot describes a combined financial incentive for the development of more efficient appliances. For example, some utilities offer rebates to customers who purchase efficient appliances because the efficiency investment "on the consumer side of the meter" (i.e., the rebate) can help the utility avoid building an expensive new powerplant. Under a Golden Carrot, several utilities pool their rebates to provide a clear market signal (a guaranteed pool of rebate money) for appliance manufacturers to commercialize advanced energy efficient appliances.
- DOE to issue new residential appliance standards for eleven product categories: central air conditioners, furnaces, refrigerators, room air conditioners, water heaters, direct heating equipment, mobile home furnaces, kitchen ranges and ovens, pool heaters, televisions and fluorescent lamp ballasts. Cost-effective energy standards ensure that consumers find appliances that are both energy efficient and affordable.
- DOE to work with Department of Housing and Urban Development, Veterans Administration, and other agencies to lead a new national effort to market Home Energy Rating Systems (HERS) and Energy-Efficient Mortgages (EEMS). These programs allow home buyers to finance investments in energy improvements through their mortgage lender when the monthly energy savings are greater than increased mortgage payments. Current federal and state programs are fragmented and not readily accessible to lenders or borrowers and their use is not widespread. Federal agencies will coordinate an effort involving financial institutions, utilities, and contractors to ensure that a uniform EEM program reaches the intended market.
- DOE to assist States in updating and enforcing residential building codes beginning in 1994. Code enforcement, which lags in many regions, is an effective tool to increase the energy efficiency of homes.
- DOE, USDA, and DOD and their industry partners to take Cool Communities beyond the pilot stage. This program uses a simple idea -- that shade trees can reduce air conditioning loads -- and promotes urban tree planting where the energy saving benefits are highest. This program can also help commercial buildings save energy.
DESIGNING TOMORROW'S KITCHEN TODAY:
The Golden Carrot Super Efficient Refrigerator Program
Industrial Energy Efficiency Strategy
The nation's industries consumed 39 percent of the nation's end-use energy in 1990, including 35 percent of electricity generated. Since two-thirds of the sector's electricity use is for motors, industrial motors use over 20 percent of all U.S. electricity generation. Including the emissions from electricity generation, the industrial sector accounted for 33 percent of U.S. CO2 emissions in 1990. A small number of major manufacturing groups -- primary metals, petroleum refining, chemicals, pulp and paper -- account for about 70 percent of industrial energy use.
Since the 1970's, the Federal government has funded a large research and development program for energy efficiency and waste-reduction technologies in the industrial sector. The Action Plan establishes working partnerships with American industry to help get those improvements off of the drawing board and on to the factory floor.
PRESIDENT CLINTON IS DIRECTING:
- DOE to mount the Motor Challenge -- an industry-driven collaborative program to test, verify, and disseminate information on the cost saving potential of industrial motor systems -- and to get commitments from American industry to use them.
- DOE will prepare 25 showcase demonstrations within the next nine months.
- The Department will initiate a nationwide marketing effort following evaluation of the showcases, beginning in 1996.
- DOE to create "Golden Carrot" programs for industrial equipment. By helping to pool financial incentives and purchasing power, these programs can stimulate rapid commercialization of new energy efficient equipment.
- These programs are modeled on the successful utility/government collaborative that brought the super-efficient refrigerator to market,
- DOE will prioritize candidate technologies this year and help launch individual Golden Carrot challenge programs by the end of 1994.
- EPA and DOE to expand voluntary source reduction and product recycling programs targeted at industrial producers. Using recycled or waste materials consumes less energy than manufacturing products from virgin materials.
- EPA and DOE to launch the Climate-Wise program, a performance-based recognition program based on the premise that government can spur innovation by establishing goals and allowing individual firms to identify the most cost-effective means to achieve them. Through Climate-Wise, EPA and DOE will recognize and encourage a broad array of emission reduction measures, including industrial process changes, raw materials and fuel substitutions, and innovative transportation programs.
THE MOTOR CHALLENGE:
Linking Industrial Competitiveness with Environmental Objectives
 A quadrillion Btu (quad) is 10 exponential 15 Btu.
 All 190 energy figures are derived from Annual Energy Outlook 1993 Energy Information Administration). "End-use" energy does not include the generation and distribution losses in electric generation, which on average account for almost 70 percent of the fuel input used in powerplants.
 The emission figure assumes that the sector's electric utility CO2 emissions are proportional to its share of electric demand.