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Greater energy efficiency – the focus of energy and climate protection policies in Baden-Württemberg, Germany
By Bernd Reuter, Department of Ecology, Research, Climate Protection,
Ministry for the Environment Baden-Württemberg
The State of Baden-Württemberg, which lies in the south-west of Germany and has a population of almost 11 million, is a successful economic region and home to international companies such as DaimlerChrysler, Bosch and SAP, as well as numerous mediumsized enterprises. Baden-Württemberg’s long tradition of inventiveness and engineering expertise has led to an energy productivity level that is 33% higher than Germany as a whole.
Baden-Württemberg intends to increase its energy efficiency still further to reduce its dependence on fossil fuels and make a positive contribution to climate protection. We have seen that climate protection policies can have a positive effect on the economy as investments in energy efficiency measures reduce energy costs for local consumers and businesses. For instance, it is estimated that savings of 30% in electricity consumption will be possible by 2020. Upgrading the energy efficiency of existing buildings will bring energy savings of 40 to 50%. The aim of our energy policies is to provide a support framework for such potential savings.
Climate Protection Plus Program
The initiative "Klimaschutz Plus" [Climate Protection Plus], started in 2002, provides support for the refurbishment of small and medium sized buildings, such as school buildings. Appropriate upgrading measures and the use of renewable energies has resulted in 85,000 tonnes per annum reductions in CO2 emissions. The efficiency of the financial support program is between $22 and $33 per tonne of CO2 for corporate and communal energy users respectively. Specifics of the program are detailed below:
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Funding of $39 million has been provided to date, and has triggered investments for construction and technical measures to reduce CO2 emissions of approximately $240 million.
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Set-up of over 900 unit-type cogeneration stations with an output between 3 kW and 900 kW (in total approx. 17.8 MW) and support for innovative technologies such as Stirling motors, fuel cells and trigeneration.
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Information on the energy upgrading of private residential buildings, an energy diagnosis service “EnergieSparCheck“[Energy Savings Check], and further financial support measures are provided to consumers.
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700 applications for financial support were submitted in 2005 for earth heat probes for residential buildings. In addition, individual pilot projects are planned for the use of deep geothermal resources, for which the geology of Baden-Württemberg is particularly suitable.
 Public-Private Partnerships
The State of Baden-Württemberg supports companies in their efforts to improve energy efficiency at their facilities. A total of 17 companies participated in the State’s first pilot project and achieved a 6% increase in energy efficiency and a 9% reduction in specific CO2 emissions in just 3 years. These reductions in CO2 emissions did not generate increased costs for the plants in most cases. In fact, savings were made through the reductions, with a gross savings of $72-120 per tonne less of CO2. The knowledge gained from such economic savings is passed on to others through networks. Over the past 12 months Baden-Württemberg, together with economic organizations, has started an education initiative to help businesses avoid unnecessary energy consumption. In addition, Baden-Württemberg offers targeted advisory programs for environmental protection and presents awards to companies for outstanding performance.
Case Study: Müller Weingarten AG
An example of a successful company initiative is the Müller Weingarten AG energy reduction plan. This company uses innovative energy efficiency measures at their plants to produce metallic materials with less energy. Since the inception of the program in 2001 its overall annual electricity consumption has been reduced by approximately 6.5 million kWh (28%). The energy savings are around $300,323 per annum. Individual measures included the coupling of buildings and plants to an integrated building management technology, improvements to the energy efficiency of roofs and windows, as well as modernization of the heating systems and the compressed air lines. Müller Weingarten AG was awarded a federal energy efficiency prize in 2004.
Engaging Schools
 Schoolchildren are a major target group for the communication of climate protection and energy awareness, In addition to a comprehensive Internet site (www.klimanet.baden-württemberg.de), Baden-Württemberg offers numerous materials for teaching purposes and runs several school projects. A competition has been launched for schoolchildren this year on fuel cells. A total of 37 schools participated in the model project "Klima-freundliche und energiesparende Schule" [Climate-friendly and energy-saving school] to reduce their energy costs by an average of 10%. Building on such project experience, a joint initiative is planned to promote energy saving models in schools to a greater extent.
Focussing on R&D
Baden-Württemberg is a leading European region in terms of innovation and is devoting considerable resources to the research and testing of efficient technologies such as fuel cells technology and renewable energies. Efficient building technologies are used in specific projects with countries, such as China, to raise awareness of such technologies. This technology transfer is key for promoting sustainable development in emerging economic regions of the world.
Baden-Württemberg has made considerable progress on the road to a more energy efficient economy, but it has not yet reached its target. The current rate of energy efficiency increase of 1% per annum may increase further because of the rising energy prices. The new climate protection concept of Baden-Württemberg, which will be available in English soon, (www.um.baden-württemberg.de) embraces important policy approaches and envisions a twofold increase in the contribution of renewable energies by 2010.
For more information please contact Bernd Reuter at Bernd.Reuter@um.bwl.de.
 California Launches Groundbreaking
Energy Efficiency Effort
By Kerry Quinn, Senior Program Associate,
Education Team, Alliance to Save Energy
Last month the California Public Utilities Commission (CPUC) unanimously approved the investor-owned utilities’ (IOU) energy efficiency program plans for 2006 through 2008, launching the most aggressive energy efficiency campaign in the history of the utility industry. The plans are expected to provide over 2,000 GWh in annual savings for the state. At this level, the utilities’ annual electricity savings will exceed 1 percent of annual load.
“What this plan does is help us meet our growing needs, first and foremost, with the cleanest most cost effective energy of all – greater efficiency,” commented Susan P. Kennedy, the Commissioner leading the efficiency proceeding. The approval of energy efficiency funding is part of a larger effort by Governor Schwarzenegger, the CPUC, and the California Energy Commission (CEC) to secure California’s energy future and reduce the consumption of fossil fuels linked to global climate change. California’s Energy Action Plan, endorsed by the Governor, CPUC, and CEC, establishes energy efficiency as the state’s top priority procurement resource. Commissioner Kennedy continued, “This decision puts into action the resource acquisition goals of the state’s Energy Action Plan – namely, that energy efficiency be required first before all other resources.”
The utilities are investing $2 billion in energy efficiency over the next three years to achieve these savings. The majority of the funding will come from the utilities’ resource procurement budgets and less than half from the state’s public goods charge, demonstrating the powerful impact of the CPUC’s requirement that utilities invest in energy efficiency whenever it is cheaper than procuring power. Roughly $3 million will be invested in natural gas efficiency programs and $1.7 billion in electric efficiency programs.
CPUC President Michael R. Peevey emphasized that, “$2 billion is a significant expenditure, but the benefits clearly outweigh these costs and consumers gain in a multitude of ways. These programs will cut energy costs for homes and businesses by more than $5 billion, eliminate the need to build three large power plants over the next three years, and reduce global warming pollution by an estimated 3.4 million tons of carbon dioxide by 2008, which is equivalent to taking about 650,000 cars off the road.”
The utilities’ plans for 2006-2008 include a diverse mix of energy efficiency and conservation programs. Examples include incentives for construction of green buildings, innovative rebate opportunities, such as “point of purchase” rebates given at the store when the item is purchased, and online “E-rebates,” online energy audits for homes, and more. The plans also include continued and new partnerships with local governments, universities, and schools. The Alliance to Save Energy’s Green Campus and Green Schools Programs are expected to be part of the mix of programs.
For more information on the CPUC and the energy efficiency program plans, please visit www.cpuc.ca.gov.
California 
Senate Bill 1037 Passed the Assembly 8/30/05, Passed the Senate with Assembly Amendments 9/6/05, Sent to Governor 9/8/05, approved by Governor 9/29/05, Filed with Secretary of State 09/29/05
SB 1037 would require the Public Utilities Commission to establish electricity efficiency savings targets based on an evaluation of all plausible cost-effective savings, and would require electrical corporations to first acquire all available energy efficiency and demand reduction resources that are cost-effective and reliable when implementing their procurement plans.
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Massachusetts
House Bill 4299 Referred To Senate Committee on Ethics and Rules 09/29/05
HB 4299 would amend various provisions of the Massachusetts appliance efficiency standards act. The Bill would provide for the inclusion of products, including but not limited to commercial refrigerators, freezers and refrigerator-freezers, residential furnaces, torchieres and traffic signal modules. The bill also would promote the use of alternative fuels in the Commonwealth by allowing hybrids and alternative fuel vehicles to travel in HOV lanes.
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Senate Bill 2211 Passed 09/29/05, Printed-as-Amended version of Bill 09/29/05
SB 2211 would require the Commonwealth when purchasing new motor vehicles to purchase hybrid or alternative fuel vehicles to the maximum feasible extent at a minimum rate of 5% annually for all new motor vehicle purchases. The bill would require a minimum of 50% of the motor vehicles owned and operated by the Commonwealth to be hybrid or alternative energy vehicles by the year 2010.
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Senate Bill 2220 Referred to Joint Committee on Ethics and Rules 10/03/05
SB 2220 would promote funding for the Energy Independence Grant Fund for the purpose of encouraging cities and towns, school districts and regional transit authorities to purchase or lease hybrid and alternative energy vehicles, including heavy, medium and light duty vehicles that utilize either a single fuel or dual fuel.
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Michigan
House Bill 5223 Referred to Committee on Tax Policy 09/27/05
HB 5223 would allow consumers to exclude the difference in the sales price between an alternative energy vehicle and a comparable motor vehicle powered by motor fuel in the calculation of sales tax starting in January 2006.
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New York
Senate Bill 5970 Passed Senate 09/20/2005, Delivered to the Assembly 09/20/05, referred to Assembly Ways and Means 09/21/05
SB 5970 would amend the tax law to provide a sales and compensating use tax exemption for Energy Star appliances.
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Senate Bill 5986 Introduced and referred to Committee on Senate Rules 09/30/05
SB 5986 would extend the expiration of the personal income tax credit for alternative fuel vehicles and alternative fuel property. The bill also would revise and extend the repeal date of the sales and use tax exemption for new alternative fuel vehicles, and property and service related to alternative fuel vehicles.
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North Carolina
Senate Bill 1149 Signed by Governor 09/20/05, Chartered Session Law 2005-413 09/20/05
SB 1149 establishes a banking and selling program for credits issued under the federal Energy Policy Act in order to generate funds for the use of alternative fuels and alternative fueled vehicles by state departments, institutions, and agencies and to extend and expand the credit for investment in renewable energy property.
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Pennsylvania
House Bill 1964 Referred to Environmental Resources and Energy Committee 09/26/05
HB 1964 would authorize a renewable energy investment tax credits for qualified alternative energy business that design, manufacture, distribute, operate, service or maintain alternative or renewable energy projects or equipment, including hybrid vehicles.
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The Responsible Energy Codes Alliance (RECA)
RECA continues its work to promote adoption of the International Energy Conservation Code (IECC). In September, RECA and its members were active in North Carolina, Ohio, and Virginia. States to watch for code developments in the months ahead are Indiana, Iowa, Massachusetts, and New York.
Click here to visit the RECA website for more information.
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