Loading...
HomeMy WebLinkAboutStaff Report 316-06City of PMo Alto C ty Manager’s Report TO:HONORABLE CITY COUNCIL FROM: DATE: SUBJECT: CITY MANAGER DEPARTMENT: UTILITIES AUGUST 7, 2006 CMR:316:06 ENDORSEMENT OF A MEMORANDUM OF UNDERSTANDING TO SUPPORT THE STATEWIDE ADOPTION OF THE NATIONAL ACTION PLAN FOR ENERGY EFFICIENCY (NAPEE MOU) This report is for the Council’s information only. No action is required. BACKGROUND The National Action Plan for Energy Efficiency brings together leading energy sector organizations representing different stakeholder perspectives to determine how best to promote greater investment in energy efficiency by the customers of electric and gas utilities - covering most of the energy used in American homes, buildings and industries or about 60 percent of the natural gas and electricity used nation-wide. As part of the Action Plan, leading organizations are committing to make more use of energy efficiency. A broad consortium of energy officials and organizations in California, including the Governor, the California Public Utilities Commission, the California Energy Commission, investor-owned utilities presidents, the General Managers of the Sacramento Municipal Utility District and Los Angeles Department of Water and Power, and the National Resources Defense Council, developed a Memorandum of Understanding (MOU) to support the National Action Plan for Energy Efficiency (NAPEE). Other public utilities, including Palo Alto, were invited to join in supporting the plan by signing the MOU. The City Manager, on behalf of the City of Palo Alto Utilities, signed the Memorandum of Understanding Pledging the Support of the State of California for the National Action Plan for Energy Efficiency on July 31, 2006 (attached). DISCUSSION The MOU includes the following pledges to actively support the development, promotion and implementation of the NAPEE, including: Supporting the ongoing development of the NAPEE by reviewing the working group reports and considering their recommendations for adoption; CMR:316:06 Page 1 of 3 Participating in the national roll-out of the NAPEE (scheduled for July 31, 2006, at the NARUC Summer Committee meetings in San Francisco) by issuing a press release on that date stating the signatory’s support for recommendations of the NAPEE and pledging specific continuing and expanded commitments to the promotion, funding and implementation of energy efficiency in California; Providing resources to promote recommendations of the NAPEE at speaking engagements and other educational opportunities, including participation in "buddy system" outreach efforts in which the signatories engage fellow political leaders, regulators, utilities and other stakeholders to inform them about the NAPEE’s best practice findings and recommendations; and, As appropriate for each signatory, continuing to model California’s best practices and policies identified in the NAPEE, including: []designation of energy efficiency as a high priority resource optiow, []adoption of targets for energy efficiency; []pursuit of energy efficiency resources under a long-teirn resource planning and procurement framework; [] institution of a regulatory framework that encourages utility investment in energy efficiency; and []sharing California’s successes with others interested in energy efficiency and learning from others’ successes in the planning and delivery of cost-effective energy efficiency programs. Additional background information regarding NAPEE is included in a Fact Sheet from the US Department of Energy and Environmental Protection Agency (Attachment B). RESOURCE IMPACT The resource impacts of signing the MOU will be minimal in allocating staff time to supporting the organization. POLICY IMPLICATIONS The MOU pledges are consistent with and complement the Objectives and Guidelines of the ,C°uncil-appr°ved Long-term Electric Acquisition Plan (LEAP), and Gas Utility Long-term Plan (GULP). NAPEE activities will help leverage City efforts in the. energy efficiency arena as described in the LEAP Implementation Task #2 (CMR 169:06, April 17, 2006), which states, "Enhance the existing efficiency programs by developing a long-term integrated resource efficiency portfolio plan that recognizes cost-effective energy efficiency and load management as priority resom’ces in the "loading order" for energy resources. Design efficiency programs to account for the combined benefits of electric, gas, and water efficiency savings (e.g. a horizontal clothes washer saves electricity, water, and gas). Leverage joint efforts with other public power providers via NCPA’s efficiency initiatives and Public Benefits Committee. Enhance system efficiency through generation efficiency improvements and electric distribution system enhancements to lower system losses. As appropriate, additional funding for cost-effective efficiency programs will be recommended to complement and enhance the existing Public Benefits programs. Develop retail rate options that provide price signals to customers that encourage efficiency." CMR:316:06 Page 2 of 3 The MOU also supports the City’s Sustainability Policy Statement adopted April 2, 2001 (CMR 175:01), the Green Government Pledge adopted July 19, 1999 (CMR 284:99), and elements of the Comprehensive Plan, specifically: 1.GOAL N-9: A clean, efficient, competitively-priced energy supply that makes use of cost-effective renewable resources, and Policies. 2.POLICY N-44: Maintain Palo Alto’s long-term supply of electricity and natural gas while addressing environmental and economic concerns. ATTACHMENTS A. Memorandum of Understanding Pledging the Support of the State of California for the National Action plan for Energy Efficiency B. National Action Plan for Energy Efficiency Fact Sheet PREPARED BY: DEPARTMENT APPROVAL: CITY MANAGER APPROVAL: Karl E. Knapp, Senior Resource Planner Girish Balachandran, Assistant Director ~~~~r a]ile Services EMII_~ HARRIS~ON- - Assistant City Manager CMR:316:06 Page 3 of 3 ATTACHMENT A MEMORANDUM OF UNDERSTANDING PLEDGING THE SUPPORT OF THE STATE OF CALIFORNIA FOR THE NATIONAL A CTION PLAN FOR ENERGY EFFICIENCY WHEREAS, Cost-effective energy efficiency, conservation and demand response resources are reliable, least cost, energy resource options with proven capability for helping meet the country’s energy needs. Significant investment in cost- effective energy efficiency, conservation and demand response resources can help to stabilize energy prices, enhance electric system reliability, reduce pollution emissions from power plants, reduce natural gas demand, and provide significant cost savings to customers. Despite these Substantial benefits, energy efficiency, conservation and demand response options remain critically underutilized resources in much of the nation’s overall energy portfolio; Recognizing that a great portion of the country’s energy efficiency potential remains untapped, the United States Environmental Protection Agency and the United States Department of Energy joined together to sponsor the development of a National Action Plan for Energy Efficiency; The goal of the National Action Plan for Energy Efficiency is to create a sustainable, aggressive commitment to energy efficiency by gas and electric utilities, utility regulators, and partner organizations to help meet the nation’s energy needs; To kick-off the development of the National Action Plan for Energy Efficiency, the United States Environmental Protection Agency and the United States Department of Energy brought together representatives from more than 50 leading organizations representing key stakeholder perspectives in setting policy for electricity and natural gas services to form a Leadership Group for the National Action Plan. The members of the Leadership Group join with each other to promote increased national investment in energy efficiency resources and the widespread adoption of best practices through the development and implementation of the collaboratively-created National Action Plan for Energy Efficiency; When forming the Leadership Group, the United States Environmental Protection Agency and the United States Department of Energy invited the California Energy Commission, the California Public Utilities Commission, the Natural Resources Defense Council, Pacific Gas & Electric Company, Sacramento Municipal Utility District, and Southern California Edison Company to join other stakeholders from around the country to collaboratively develop the National Action Plan. By signing this MOU, Anaheim Public Utilities, Burbank Water & Power, Los Angeles Department of Water & Power, Northern California Power Agency, City of Palo Alto Utilities, Pasadena Water & Power, San Diego Gas & Electric Company and Southern California Gas Company, City of Shasta Lake Electric Utility, and Silicon Valley Power now also join with their energy efficiency Leadership Group colleagues from California, the other western states and across the nation to participate in the ongoing collaborative development, roll-out and implementation of the National Action Plan. In addition, the Governor of- the State of California signs on to this MOU demonstrating the State of California’s strong commitment to energy efficiency at the highest level of State leadership; []The Leadership Group for the National Action Plan for Energy Efficiency: Recognizes that utilities and regulators have critical roles in creating and delivering energy efficiency programs to their communities; Understands that success requires the joint efforts of the customer, utility, regulator, and partner organizations; Commits to work across their organizations’ spheres of influence to remove barriers to cost-effective energy efficiency and to take action within their own organizations to increase attention and investment in energy efficiency; and, Supports policy recommendations for creating a sustainable, aggressive national commitment to energy efficiency through electric and gas utilities and partner organizations; At the same time that the National Action Plan for Energy Efficiency was being developed, California’s energy leadership was also working with its counterparts in the Western Governors’ Association to develop the Western Governors’ Clean and Diversified Energy Initiative; In its January 2006 Energy Efficiency Task Force Report, the Clean and Diversified Energy Advisory Committee found that it would be feasible to cost effectively reduce electricity use 20% from projected levels in 2020 through full deployment of best practice policies and programs. The best practices identified in the Western Governors’ Clean and Diversified Energy Advisory Committee report include many of the same policies and practices identified in the National Action Plan for Energy Efficiency, and already adopted or currently under consideration in California. These best practices include the integration of cost effective energy efficiency into resource planning and procurement, the establishment of energy Savings targets, and the decoupling of energy sales and revenues in combination with the creation of performance incentives that reward utilities for implementing effective DSM programs; Consistent with its participation in these national and regional initiatives, the energy policy leadership of the State of California has steadfastly demonstrated its commitment to the pursuit of cost-effective energy efficiency, conservation, and demand response options as the resource of first choice for meeting the State’s energy needs, including through the following actions: California Law - The Governor and Legislature recently codified energy efficiency as the State’s top priority resource, requiring that each electric and natural gas utility "first meet its unmet resource needs through all available energy efficiency and demand reduction resources that are cost effective, reliable, and feasible"; California’s Energy Action Plan - In California’s Energy Action Plan, the California Public Utilities Commission and the California Energy Commission have designated cost-effective energy efficiency and demand response options as first in California’s "loading order" of resources to meet the State’s growing energy needs. The California Energy Action Plan affirms the value of integrating energy efficiency, conservation, and demand response programs (as well as renewable resources) into overall resource planning and procurement; Green Building Action Plan Executive Order - Governor Schwarzenegger’s 2004 Executive Order S-20-04 calls for aggressive action to: reduce State building energy usage by undertaking all cost- effective measures described in the Green Building Action Plan in facilities owned, funded or leased by the State, and to encourage cities, counties and schools to do the same, []reduce grid-based energy purchases for State-owned buildings by 20% by 2015, adopt Department of General Services guidelines to enable and encourage schools built with State funds to be resource and energy efficient, []provide California Public Utilities Commission support for investor-owned utilities’ information and commercial building efficiency programs, []propose a benchmarking methodology and building commissioning guidelines by the California Energy Commission, []undertake all California Energy Commission actions within that agency’s authority to increase efficiency in new construction, [] target resource efficient buildings for California Public Employees Retirement System and State Teachers Retirement System real estate investment, and []request participation by State government entities not under the Governor’s direct executive authority; California’s Building and Appliance Codes and Standards - The California Energy Commission has set the nation’s strongest energy efficiency codes and standards for new buildings and appliances. California keeps these codes and standards updated approximately every three years through a public process; California’s Statewide Marketing and Outreach - Under the oversight of the California Public Utilities Commission, California’s investor-owned utilities promote and support a statewide marketing and outreach campaign that educates consumers about energy efficiency, conservation and demand response opportunities. California’s statewide marketing and outreach efforts are designed to support the U.S. Environmental Protection Agency and Department of Energy’s "ENERGY STAR" efforts and provide information about programs available for California consumers. California’s current statewide marketing and outreach campaign offerings include the "Flex Your Power" and "Flex Your Power Now" general awareness campaigns, as well as associated Spanish-language media and rural community outreach campaigns; California’s Investor-Owned Utilities’ Investment in Cost-Effective Energy Efficiency and Demand Response Resources - California’s investor-owned utilities (Pacific Gas & Electric Company, San Diego Gas & Electric Company, Southern California Edison Company, and Southern California Gas Company) continue their longstanding commitment to pursuing all cost-effective energy efficiency, conservation, and demand response resources by working collaboratively with the California Public Utilities Commission to adopt decoupling mechanisms and other best practices that align the utilities’ resource procurement practices with California’s energy policy. Under this framework, the investor-owned electric utilities have placed demand-side resources first in their resource planning and procurement "loading order" for meeting their customers’ energy needs and the gas utilities are pursuing all cost-effective energy efficiency resources to reduce natural gas demand. As a result, California’s investor-owned utilities have secured the nation’s highest program funding levels to mount the most aggressive energy efficiency and demand response campaign in California’s - and the country’s - history, which will save enough energy over the next three years to equal the output of three 500 MW power plants and reduce greenhouse gas emissions equivalent to taking 650,000 cars off the road; California’s Municipally-Owned Utilities’ Demonstrated Commitment to Energy Efficiency, Conservation, and Demand Response Resources - California’s municipally-owned utilities (represented in this MOU by Anaheim Public Utilities, Burbank Water & Power, Los Angeles Department of Water & Power, Northern California Power Agency, City of Pal© Alto Utilities, Pasadena Water & Power, Sacramento Municipal Utility District, City of Shasta Lake Electric Utility, and Silicon Valley Power) have sustained their commitment to energy efficiency, conservation and demand response resources over many years as a key resource strategy and customer service value, and that commitment will continue as municipal utilities pursue with renewed vigor all opportunities for cost effective investment in innovative programs and technologies to meet customers’ energy and service needs, accelerate market adoption of emerging technologies, and potentially develop new measures which may be considered for future adoption into California’s energy efficiency codes and standards; As a direct result of California’s wise energy policies, aggressive actions and long-standing commitment to the pursuit of capturing the benefits of energy efficiency, conservation, and demand response resources, California’s per capita energy use has remained approximately flat over the past 30 years, while per capita electricity consumption in the U.S. has increased by nearly 50 percent. This remarkable accomplishment is attributable to the combination of the State’s continued progress in cost-effective building and appliance standards and the ongoing success of the energy efficiency programs of California’s utilities and other entities. California’s results have been validated through careful analyses of program potential and cost-effectiveness, as well as rigorous measurement, verification and reporting of program results to substantiate that consumers are receiving the benefits of their investment in demand-side resources; NOW, THEREFORE, THE SIGNATORIES TO THIS MEMORANDUM OF UNDERSTANDING PLEDGING THE SUPPORT OF THE STATE OF CALIFORNIA FOR THE NATIONAL ACTION PLAN FOR ENERGY EFFICIENCY DO HEREBY PLEDGE: []Active support for the development, promotion and implementation of the National Action Plan for Energy Efficiency, including: Supporting the ongoing development of the National Action Plan for Energy Efficiency by reviewing the working group reports and considering their recommendations for adoption; Participating in the national roll-out of the National Action Plan for Energy Efficiency (scheduled for July 31, 2006, at the NARUC Summer Committee meetings in San Francisco, California) by issuing a press release on that date stating the signatory’s support for recommendations from the National Action Plan for Energy Efficiency and pledging specific continuing and expanded commitments to the promotion, funding and implementation of energy efficiency in California; Providing resources to promote recommendations from the National Action Plan for Energy Efficiency at speaking engagements and other educational opportunities, including participation in "buddy system" outreach efforts in which the signatories engage fellow political leaders, regulators, utilities and other Stakeholders to inform them about the National Action Plan for Energy Efficiency’s best practice findings and recommendations; and, As appropriate for each signatory, continuing to model California’s best practices and policies identified in the National Action Plan for Energy Efficiency, including: []designation of energy efficiency as a high priority resource option; []adoption of targets for energy efficiency; []pursuit of energy efficiency resources under a long-term resource planning and procurement framework; [] institution of a regulatory framework that encourages utility investment in energy efficiency; and []sharing California’s successes with others interested in energy efficiency and learning from others’ successes in the planning and delivery of cost-effective energy efficiency programs. IN WITNESS WHEREOF, WE, THE UNDERSIGNED, AS ENERGY LEADERS IN THE STATE OF CALIFORNIA, PLEDGE OUR INDIVIDUAL AND COLLECTIVE SUPPORT FOR THE NATIONAL ACTION PLAN FOR ENERGY EFFICIENCY. Arnold Schwarzenegger Governor of the State of California IN WITNESS WHEREOF, WE, THE UNDERSIGNED, AS ENERGY LEADERS IN THE STATE OF CALIFORNIA, PLEDGE OUR INDIVIDUAL AND COLLECTIVE SUPPORT FOR THE NATIONAL ACTION PLAN FOR ENERGY EFFICIENCY. Michael R. Peevey President California Public Utilities Commission Geoffrey F. Brown Commissioner California Public Utilities Commission Dian M. Grueneich Commissioner California Public Utilities Commission John Bohn Commissioner California Public Utilities Commission Rachelle Chong Commissioner California Public Utilities Commission IN WITNESS WHEREOF, WE, THE UNDERSIGNED, AS ENERGY LEADERS IN THE STATE OF CALIFORNIA, PLEDGE OUR INDIVIDUAL AND COLLECTIVE SUPPORT FOR THE NATIONAL ACTION PLAN FOR ENERGY EFFICIENCY. Jackalyne Pfalmenstiel Chair California Energy Commission James D. Boyd Vice Chair California Energy Commission Arthur H. Rosenfeld Commissioner California Energy Commission John L. Geesman Commissioner California Energy Commission Jeffrey Byron Commissioner California Energy Commission IN WITNESS WHEREOF, WE, THE UNDERSIGNED, AS ENERGY LEADERS IN THE STATE OF CALIFORNIA, PLEDGE OUR INDIVIDUAL AND COLLECTIVE SUPPORT FOR THE NATIONAL ACTION PLAN FOR ENERGY EFFICIENCY. Marcie L. Edwards General Manager Anaheim Public Utilities IN WITNESS WHEREOF, WE, THE UNDERSIGNED, AS ENERGY LEADERS IN THE STATE OF CALIFORNIA, PLEDGE OUR INDIVIDUAL AND COLLECTIVE SUPPORT FOR THE NATIONAL ACTION PLAN FOR ENERGY EFFICIENCY. Ronald E. Davis General Manager Burbank Water & Power IN WITNESS WHEREOF, WE, THE UNDERSIGNED, AS ENERGY LEADERS IN THE STATE OF CALIFORNIA, PLEDGE OUR INDIVIDUAL AND COLLECTIVE SUPPORT FOR THE NATIONAL ACTION PLAN FOR ENERGY EFFICIENCY. Mary D. Nichols President Los Angeles Department of Water & Power IN WITNESS WHEREOF, WE, THE UNDERSIGNED, AS ENERGY LEADERS IN THE STATE OF CALIFORNIA, PLEDGE OUR INDIVIDUAL AND COLLECTIVE SUPPORT FOR THE NATIONAL ACTION PLAN FOR ENERGY EFFICIENCY. Devra Wang Director, California Energy Program Natural Resources Defense Council IN WITNESS WHEREOF, WE, THE UNDERSIGNED, AS ENERGY LEADERS IN THE STATE OF CALIFORNIA, PLEDGE OUR INDIVIDUAL AND COLLECTIVE SUPPORT FOR THE NATIONAL ACTION PLAN FOR ENERGY EFFICIENCY. James H. Pope General Manager Northern California Power Agency IN WITNESS WHEREOF, WE, THE UNDERSIGNED, AS ENERGY LEADERS IN THE STATE OF CALIFORNIA, PLEDGE OUR INDIVIDUAL AND COLLECTIVE SUPPORT FOR THE NATIONAL ACTION PLAN FOR ENERGY EFFICIENCY. Thomas B. King President and CEO Pacific Gas & Electric Company IN WITNESS WHEREOF, WE, THE UNDERSIGNED, AS ENERGY LEADERS IN THE STATE OF CALIFORNIA, PLEDGE OUR INDIVIDUAL AND COLLECTIVE SUPPORT FOR THE NATIONAL ACTION PLAN FOR ENERGY EFFICIENCY. Frank Benest City Manager City of Palo Alto Utilities IN WITNESS WHEREOF, WE, THE UNDERSIGNED, AS ENERGY LEADERS IN THE STATE OF CALIFORNIA, PLEDGE OUR INDIVIDUAL AND COLLECTIVE SUPPORT FOR THE NATIONAL ACTION PLAN FOR ENERGY EFFICIENCY. [Name] [Title] Pasadena Water & Power IN WITNESS WHEREOF, WE, THE UNDERSIGNED, AS ENERGY LEADERS IN THE STATE OF CALIFORNIA, PLEDGE OUR INDIVIDUAL AND COLLECTIVE SUPPORT FOR THE NATIONAL ACTION PLAN FOR ENERGY EFFICIENCY. Jan Schori General Manager Sacramento Municipal Utility District IN WITNESS WHEREOF, WE, THE UNDERSIGNED, AS ENERGY LEADERS IN THE STATE OF CALIFORNIA, PLEDGE OUR INDIVIDUAL AND COLLECTIVE SUPPORT FOR THE NATIONAL ACTION PLAN FOR ENERGY EFFICIENCY. Edwin A. Guiles Chairman and CEO San Diego Gas & Electric Company Southern California Gas Company IN WITNESS WHEREOF, WE, THE UNDERSIGNED, AS ENERGY LEADERS IN THE STATE OF CALIFORNIA, PLEDGE OUR INDIVIDUAL AND COLLECTIVE SUPPORT FOR THE NATIONAL ACTION PLAN FOR ENERGY EFFICIENCY. Jennifer Sparacino City Manager, City of Santa Clara Silicon Valley Power IN WITNESS WHEREOF, WE, THE UNDERSIGNED, AS ENERGY LEADERS IN THE STATE OF CALIFORNIA, PLEDGE OUR INDIVIDUAL AND COLLECTIVE SUPPORT FOR THE NATIONAL ACTION PLAN FOR ENERGY EFFICIENCY. Paul H. Eichenberger Electric Utility Director City of Shasta Lake Electric Utility IN WITNESS WHEREOF, WE, THE UNDERSIGNED, AS ENERGY LEADERS IN THE STATE OF CALIFORNIA, PLEDGE OUR INDIVIDUAL AND COLLECTIVE SUPPORT FOR THE NATIONAL ACTION PLAN FOR ENERGY EFFICIENCY. John R. Fielder President Southern California Edison Company ................ATTACHMENT B National Action Plan for Energy Efficiency Fact Sheet The National Action Plan for Energy Efficiency presents policy recommendations for creating a sustainable, aggressive national commitment to energy efficiency through gas and electric utilities and partner organizations. Such a commitment could save Americans many billions of dollars on energy bills over the next 10 to 15 years, contribute to energy security, and improve our environment. The Action Plan was developed by more than 50 leading organizations representing key stakeholder perspectives. These organizations pledge to take specific actions to make the Action Plan a reality. Leadership Group The Leadership Group consists of over 50 leading private, public, and cooperatively-owned electric and gas utilities, utility regulators, state agencies, large end-users, consumers advocates, energy service providers, and environmental/energy efficiency organizations. The goal of this group is to create a sustainable, aggressive national commitment to energy efficiency through gas and electric utilities, utility regulators, and partner organizations. The Leadership Group agreed on this goal recognizing that utilities and regulators have critical roles in creating and delivering energy efficiency programs to their communities and that success requires the joint efforts of the customer, utility, regulator, and partner organizations. The Leadership Group is co-chaired by Diane Munns, Member of the Iowa Utilities Board and President of the Natural Association Regulatory Utility Commissioners, and Jim Rogers, President and Chief Executive Officer of Duke Energy. The U.S. DOE and U.S. EPA facilitate the work of the Leadership Group and the National Action Plan for Energy Efficiency. National Release The National Action Plan for Energy Efficiency will be released on July 31, 2006 as part of the opening plenary session of the National Association of Regulatory Utility Commissioners Summer Meeting in San Francisco. During the release, Leadership Group members will announce a set of recommendations and their own commitments for action. During Winter 2006-07, the Leadership Group plans to report on their progress and identify next steps for the Action Plan. Draft Leadership Group recommendations currently include: Recognize energy efficiency as a high priority energy resource Make a strong, long-term commitment to implement cost-effective energy efficiency as a resource Broadly communicate the benefits of and opportunities for energy efficiency Promote sufficient and stable program funding to deliver energy efficiency where cost-effective Review and adopt policies to align utility incentives with the delivery of cost-effective energy efficiency and modify ratemaking practices to promote energy efficiency investments Tools and Resources To assist the Leadership Group and others in making and fulfilling their commitments to energy efficiency, a number of tools and resources are being developed, as listed below: National Action Plan for Energy Efficiency Report. This report details the key barriers to energy efficiency in resource planning, utility revenue requirement mechanisms, rate design and the design and implementation of energy efficiency programs. It also reviews and presents a variety of policy and program solutions that have been used to overcome these barriers as well as the pros and cons for many of these approaches. Energy Efficiency Benefits Calculator. This calculator can be used to help educate stakeholders on the broad benefits of energy efficiency. It provides a framework for analyzing the business case for energy efficiency from the perspective of the consumer, the utility, and society. It can be adapted and applied to a range of utility structures, policy mechanisms, and energy growth scenarios. Experts and resource materials on energy efficiency. A number of educational presentations on the potential for energy efficiency and various policies available for pursuing the recommendations of the Action Plan will be developed drawing upon the National Action Plan for Energy Efficiency Report. In addition, lists of policy and program experts in energy efficiency and the various policies available for pursuing the recommendations of the Action Plan will be developed. Background Energy efficiency is already a key component in the nation’s energy resource mix in many parts of the country. Utilities, states and others across the United States have decades of experience in bringing energy efficiency to their customers upon which more states, utilities, and others can build. Experience shows that energy efficiency programs can lower customer energy bills, cost less than and help defer new energy production, contribute energy savings to consumers, provide environmental benefits and spur local economic development. Energy efficiency is likely to continue to be available in relevant quantities and at low costs in the future. Many state and regional studies have found that adoption of economically attractive, but as yet untapped, energy efficiency could yield more than 20% savings in total electricity demand nationwide by 2025. These savings could help cut load growth by half or more compared to current forecasts. Savings in direct use of natural gas could similarly provide a 50% or greater reduction in natural gas demand growth. However, across the nation, we do not have the programs and policies in place to capture the full benefits of energy efficiency. The current underinvestment in energy efficiency is due to a number of well recognized barriers to energy efficiency, including ones present in the policies used to govern electric and natural gas utilities, such as market, customer, public policy, utility and state energy planning, and program design and implementation barriers. Leadership Group Members and Observers Leadership Alliance to Save Energy American Council for an Energy- Efficient Economy American Electric Power Austin Energy Baltimore Gas and Electric Bonneville Power Administration California Energy Commission California Public Utilities Commission Connecticut Department of Environmental Protection Connecticut Department of Public Utility Control CT Consumer Counsel District of Columbia PuNic Service Commission Duke Energy Entergy Corporation Environmental Defense Exelon Food Lion Great River Energy ISO New England Inc. Iowa Utilities Board Johnson Controls MidAmerican Energy Company Minnesota Public Utilities Commission Natural Resources Defense Council New Jersey Board of Public Utilities New Jersey Natural Gas Group New York Power Authority North Carolina Air Office North Carolina Energy Office Office of the OH Consumers’ Counsel Pacific Gas and Electric PJM PNM Resources Sacramento Municipal Utility District Santee Cooper Seattle City Light Servidyne Systems, LLC Southern California Edison Southern Company State of Maine Tennessee Valley Authority Texas State Energy Conservation Office The Dow Chemical Company Tristate Generation and Transmission Association USAA Realty Company Vectren Corporation Vermont Energy Investment Corporation WAL-MART Stores, Inc Washington Utilities and Transportation Commission Waverly Light and Power Xcel Energy Observers American Gas Association American Public Power Association Consumer Energy Council of America Council of Energy Resource Tribes Demand Response Coordinating Committee Edison Electric Institute Electric Power Research Institute North American Insulation Manufacturers Assoc. National Association of Regulatory Utility Commissioners National Association of Energy Service Companies National Association of State Energy Officials National Association of State Energy Officials National Council on Electricity Policy National Energy Assistance Directors’ Association National Rural Electric Cooperative Association Steel Manufacturers Association Co-Sponsors The U.S. Department of Energy DOE, through a number of voluntary programs, works with building owners, industry, state public utility commissions, regional bodies, and state policy makers on energy efficiency technology and policies. Programs include the Electric Markets Technical Assistance Program, Energy Star, Building America, Federal Energy Management Program, Weatherization, State Technical Assistance, and Industrial Technologies. Current program initiatives also include "Save Energy Now" and the Secretary’s "Easy Ways to Save Energy" campaign. The U.S. Environmental Protection Agency EPA, through a number of voluntary programs, works with businesses, organizations, governments, and consumers to reduce emissions of the greenhouse gases that contribute to global climate change by promoting greater use of energy efficient and other cost-effective technologies. One of these voluntary programs, ENERGY STAR (operated with DOE, www.energystar.gov), has helped utilities and others over the past decade to implement low- cost energy efficiency programs that deliver energy bill savings to their customers. Through 2004, with the help of ENERGY STAR, Americans have reduced national electricity demand by almost 4 percent, saving about $10 billion annually and avoiding the greenhouse gas emissions equivalent to emissions of 20 to 40 million vehicles.* For More Information For more information about the Action Plan contact: Stacy Angel U.S. Environmental Protection Agency Office of Air and Radiation Climate Protection Partnerships Division Tel. (202) 343-9003 Email angel.stacy@epa.gov Larry Mansueti U.S. Department of Energy Office of Electricity Delivery and Energy Reliability Tel. (202) 586-2588 Email lawrence.mansueti@hq.doe.gov Or visit www.epa.gov/cleanenergy/eeactionplan * U.S. Environmental Protection Agency, Protecting the Environment--Together: ENERGY STAR and Other Volunta~ Programs 2004 Annual Report (2005) (PDF, 58 pp., 1,758 KB, About PDF).