|
Statement by Kateri Callahan, President, Alliance to Save Energy
Before the Senate Committee on Energy and Natural Resources Conference on Climate Change
April 4th, 2006
Witness List &
Testimony of Others
Good afternoon, my name is Kateri Callahan and I am the President of the Alliance to Save Energy, a non-governmental, bi-partisan organization dedicated to advancing energy efficiency worldwide. Before beginning, I would like to commend the Chair and Ranking Member for organizing this conference, and to thank the Committee for including the Alliance to Save Energy in this discussion on the potential design of national policies to reduce greenhouse gas emissions.
The Alliance to Save Energy has two overriding recommendations. First, we urge that any national climate strategy employ energy efficiency to the greatest extent practicable since an impressive body of study suggests that such technologies and practices are the most cost-effective means to control greenhouse gas emissions. And further, we urge the Congress to immediately adopt policies that will drive energy efficiency in all energy end-use sectors while we undertake what could prove to be a protracted national debate on climate policy. Such measures likely will complement any national scheme finally enacted and will reduce carbon emissions immediately while growing the economy.
We already have solid evidence that energy efficiency can and is delivering tremendous carbon savings to our country: Our research indicates that energy efficiency policies, building and appliance codes, incentives and technology improvements in the U.S. since the mid-1970s are now allowing us to avoid the use of approximately 40 quadrillion Btu—roughly 40 percent of the energy currently consumed—and the emission of more than 2 billion tons of CO2 per year. The impressive savings we have realized from energy efficiency to date have not yet come close to tapping the full potential for savings.
For example, modeling undertaken in support of the Northeast Regional Greenhouse Gas Initiative (RGGI) showed that doubling the region’s energy efficiency policy impacts could cut electricity demand growth by 2/3 in 2024 (equivalent to 30 300MW power plants) and would keep carbon emissions flat [—all at the modest cost of about 3 cents per kWh]. {And, importantly, the RGGI model also suggested that the modest costs of deploying the efficiency resource (approximately 3 cents/kWh) would actually reduce the region’s energy and carbon prices and improve the economy.}
To reap the promise of energy efficiency in any national climate strategy, we urge the Congress to make explicit provisions for such technologies and measures. For example, should Congress adopt an upstream cap and trade program, we would urge that you follow the lead of RGGI and allocate a significant portion—at least 25 percent—of the allowances, or revenue from auction of such allowances, directly to support end-use energy efficiency and other public benefits.
Again, as stated earlier, we believe it is critical to move forward today—in front of any agreement on a national climate strategy – to reduce greenhouse gas emissions. This can be done cost-effectively and in a manner that complements any final national strategy by deploying energy efficiency. The Alliance recommends full and rapid implementation and funding of the important efficiency measures included in the Energy Policy Act of 2005. We also urge the Congress to immediately adopt additional measures including policies to improve the fuel economy of our light duty vehicle fleet, to extend and expand the current suite of federal energy efficiency tax incentives; and to institute a national energy efficiency resource standard and/or public benefits fund modeled on states where such programs are cost-effectively driving investment in energy efficiency.
The Alliance believes that the dialogue beginning here today is critical to the development of a sustainable energy future for the U.S. and that energy efficiency represents the cheapest, quickest and cleanest mechanism [ that likely will be considered in this debate.] We also believe, however, that we can take action now—a “no regrets approach” to reducing greenhouse gas emissions through energy efficiency—as we debate broader programs.
Thank you for your time and I look forward to answering your questions.
|
