GEED 2009 - Panel Two: The Business Response: Are We Ready to ‘Ramp Up’ EE to its Full Potential?

With stimulus funding in the pipeline set to accelerate energy efficiency programs by some $20 billion, the question arises: are all sectors of the economy prepared to shift gears and make energy efficiency our leading source of fuel? What kind of framework is needed to support a 'full steam ahead' strategy?

Stephen Harper, Digital Energy Solution Campaign & Global Director of Environment and Energy Policy at Intel Corporation , opened the session by defining the ways that energy efficiency features in both the micro and macro elements of the information technology (IT) sector. First, it increases the efficiency with which chips are produced (micro); it then resurfaces when these chips are implemented in energy-efficient technology (macro), such as smart grid technology. Currently the largest purchaser of renewable energy in the world, according to Harper, Intel welcomes the funding for R&D and new technologies in the stimulus bill as a way to cultivate a greener economy.

Offering a positive example of energy efficiency in demand-side management was Paula Gant, vice president of Regulatory Affairs at American Gas Association (AGA). For the past thirty years, the gas utility companies of AGA have witnessed how strong energy efficiency programs can help customers reduce their consumption and decrease carbon emission while also maintaining profit growth for gas utilities. Moving forward, Gant suggested continued funding for end-use technologies that help customers improve their consumption, and progressive policies such as carbon footprint labeling on appliances.

Present to address the ways in which states can leverage stimulus funding towards energy efficiency objectives was Raymond Scheppach, executive director of the National Governors' Association (NGA). The substantial influx of stimulus funds – which must be spent in a relatively short time – presents a huge challenge for states, said Scheppach. Among the many projects eligible for funding, Scheppach supports long term investments such as broad band build-out and alternative energy.

And how will stimulus money affect the current 'green collar' workforce? Stephen Cowell is chairman and CEO of the Conservation Services Group (CSG), which designs, develops, and delivers energy efficiency and renewable energy programs to key groups across the U.S. Regarding stimulus funding for these kinds of projects, Cowell reports that CSG's position in the supply chain will require additional labor to implement the programs they design. The challenge lies in convincing their business partners to hire new employees in a capital-constrained economy. Part of the solution to this problem rests in long-term, stable policy support at state and federal levels, as well as a ramp-up of green collar training.

David Karmol, vice president of Federal and External Regulations at the International Code Council (ICC), spoke of the gains for buildings codes in the new stimulus package. He emphasized three things needed to move from the concept of higher efficiency, to buildings that actually use less energy: strong codes, adoption and enforcement. Training, too, is essential for translating the new 2009 IECC code into energy-efficient and renovated buildings. Indeed, the new stimulus requirements for building codes include a plan for active training enforcement, as well as annual measurement of percent compliance to reach 90 percent by 2017.

This issue of improving building codes and standards segued to an insider's view of the commercial building industry offered by Sally Wilson, AIA, LEED AP, global director of Environmental Strategy and senior vice president of CB Richard Ellis, who reports that her industry is facing a similar slump to that currently experienced by the residential sector. In a capital-constrained economy, the focus for real estate has shifted to the value of materials and the quality of new buildings. In this regard, LEED certification has jumped. Wilson posited that educating tenants about energy efficiency as well as amassing utility support for energy efficiency and onsite generation in commercial buildings could help to alleviate some of the challenges currently faced by this sector, such as the infamous split-incentive.

President of the American Public Transportation Association (APTA) William Millar presented a revealing analysis of America's transportation sector, which, in terms of population density and growth, is underused compared to other countries. But the rising price of gasoline presents an opportunity to reduce emissions in this sector (which accounts for 90 percent of all the petrol used in the States), in that prices will persuade people to look for cheaper alternatives. Improving public transportation and greening up operations are ways to offer citizens more and better choices.

Once a stable framework and sound policies are in place, many in the private and public sectors are looking forward to ramping up energy efficiency to its full potential through the use of new stimulus funds.