Motivating Consumers to Embrace Energy Efficiency

Susan Shuckra, Director of CommunicationsRonnie Kweller, Director of Media Relations

Alliance to Save EnergyOctober 13, 2010

Presentation Overview A few words about the Alliance Why energy efficiency? Why Now? Motivating Consumers – What Will It Take? Energy Efficiency Resources and Tips

What is the Alliance to Save Energy?

The Allianc

e to Save

Energy

Mission: To promote energy efficiency

worldwide to achieve a healthier economy, a cleaner environment, and greater energy security.

Vision: Staffed by 60+ professionals 32 years of experience Recognized as the premier

energy efficiency organization in the world

What is the Alliance to Save Energy?

Non-profit organization headquartered in U.S.; operations world-wide Led by Senator Mark Pryor (D-Ark.) and Peter Darbee, Chairman, President

and CEO of PG&E Corporation 170+ Associate Members Includes 10 Members of Congress – Bi-Cameral; Bi-Partisan Also includes environmental, consumer, and trade associations heads, state

and local policy makers, corporate executives

What is Energy Efficiency?

Energy Efficiency is… Energy efficiency is the quickest, cheapest, cleanest way to extend our

nation’s energy supplies and protect the environment, our nation’s economy and our national energy security – and for consumers to save money on their energy bills at home and on the road.

Energy efficiency is the nation’s largest energy resource, delivering more energy than we get from any other single source: oil, natural gas, coal, nuclear power.

Since 1973, energy efficiency has reduced U.S. energy usage by more than a third compared to projected energy use without efficiency measures.

Why Energy Efficiency?America’s Greatest Energy ResourceReducing energy use, saving money, and powering the domestic economy for over 30 years:

Geothermal, Solar and Wind

Conventional Hydroelectric

Biomass

Nuclear Electric Power

Coal

Natural Gas

Petroleum

Increased Efficiency (Compared to 1973)

0 10 20 30 40 50 60

1

3

4

8

19

23

35

53

America's Greatest Energy Resource Sources of U.S. Energy in 2009

in Quadrillion British Thermal Units

Increased Efficiency (Compared to 1973) 2009 Domestic Production Net Imports

Alliance to Save Energy, June 2010

Why Energy Efficiency?US Oil Use, Population, Oil Reserves According to the U.S. Energy Information

Agency (EIA):The U.S. has 4.5% of the world’s population,1.6% of the world’s oil reserves -- and accounts for 22% of the world’s oil

demand.

But, how do we compare to others?

19801982

19841986

19881990

19921994

19961998

20002002

20042006

0

50

100

150

200

250

300

350

400

United StatesEuropeJapan

Million Btu per Person

Table: Total Primary Energy Consumption per Capita

EE can take us there!

Today’s Environment: Opportunities

Activities that should drive consumers toward more energy efficient behavior …

High energy prices Faltering economy Increasing worldwide energy demand Growing concerns about air pollution & global

warming

The Harsh Reality Americans don’t want to be educated about their consumption Americans don’t want to change their behavior Americans aren’t interested in spending a lot of money to make

their homes more energy efficient Americans want to plug stuff in Americans want their homes to be comfortable They don’t want to spend a lot of money for EE

What motivates you to save energy?

What Motivates Consumers When It Comes to Energy Efficiency? Saving Money Blackouts/Brownouts High energy/gasoline prices Neighbors who are saving energy What they do affects the bigger picture – “the

butterfly effect”

2010 Household Energy Costs Average U.S. household home energy costs this year: About $2,150, slightly

lower than in 2009.

Average U.S. household vehicle energy costs: About $2,625, up from about $2,375 in 2009, but much less than $3,750 in 2008, when gas prices peaked.

Total for 2010: about $4,775 per household.

So saving 5, 10 or 20 percent with energy efficiency means real money – potentially hundreds of dollars – available for other essential household needs!

**Alliance projections based on EIA data

Motivating Consumers : Federal ApproachesTax Incentives for EE Home Improvements

Existing Homes: 30% tax credit up to $1500 for a combination of products through 2010

Eligible Products Category 1: “building envelope,” -- windows, storm

windows, storm doors, certain types of roofs, and insulation and sealing products (e.g., caulking, weather stripping, and foam sealants)

Category 2: Heating and cooling equipment -- furnaces, boilers, heat pumps, water heaters, and central AC systems.

Energy Efficiency – A Consumer Resource Today’s readily-available energy-efficiency technologies can help consumers save

money without inconvenience or discomfort.

Energy efficiency actually increases the indoor comfort of your home.

Many energy-efficient products, such as compact fluorescent light bulbs (CFLs), materials to seal energy leaks and programmable thermostats, are very affordable.

Energy efficiency also includes cost-free smart energy practices such as simply

turning off electronics that are not in use and allowing the sunshine to warm your home during the winter.

On the road, smart driving habits, as well as proper vehicle maintenance, can improve your fuel economy and reduce the number of costly trips to the pump.

The Six Degree Quiz Energy use of the average U.S. home creates almost twice the greenhouse gas emissions as the average

car. True or False?

A compact fluorescent light bulb (CFL): A: Uses half the energy of a comparable incandescent bulb and lasts up to four times longer. B: Uses about one-third the energy of a comparable incandescent bulb and lasts up to 10 times longer. C: Costs more because of the design swirls. D: Uses one-tenth the energy of a comparable incandescent bulb and lasts up to 20 times longer.

The ENERGY STAR label designates: A: Companies that save the most energy. B: The newest planet - replacing Pluto. C: A product featured in a home improvement TV show. D: The most energy-efficient products that can cut energy bills by up to 30 percent.

Driving faster than 60 miles per hour: A: May put you and your passengers in danger and increase wear and tear on your vehicle. B: Could result in a speeding ticket. C: Is like spending 20 cents more for each gallon of gasoline. D: All of the above.

For each degree you lower the temperature in your home, you can cut your winter heating bills by _____ percent, depending on your climate region and how many hours day you turn down your heat. A: 1 to 2 percent. B: Up to 10 percent. C: Up to 5 percent D: Up to 7 percent.

Many appliances and electronics continue to use energy when switched "off," producing "energy leaks" that account for five percent of total U.S. residential electricity use. True or False?

Efficient Driving Saves Gas & $$$ Gas prices are again on the upswing – the national average price for regular

gas today, according to AAA, is $2.820 per gallon, up from $2.478 a year ago and $2.709 a month ago.

But drivers can save at the pump with proper vehicle maintenance and smart driving habits – typically hundreds of dollars a year.

See how much at www.drivesmarterchallenge.org

The Drive $marter Challenge is one of the Alliance’s campaigns to help consumers lower their energy costs while helping the environment and U.S. energy security.

Efficient Driving Saves Gas & $$$ Vehicle maintenance steps include:

- Proper tire inflation.- Regular tune-ups and air filter changes.- Using the right grade of motor oil.

Smart driving habits include:- Curbing “road rage” and driving sensibly on the highway and around

town.- Cutting miles driven by combining trips, walking, biking or taking

public transportation – also good for your health!- Ditching "junk in the trunk." An extra 100 pounds in the trunk cuts a

typical vehicle‘s fuel economy by up to 2%.

Efficient Driving Saves Gas & $$$ Slow down -- speeding is expensive! Each five miles per hour over 60 mph is like

paying an additional 24 cents per gallon for gas.

Avoid idling. Idling gets 0 mpg. Cars with larger engines typically waste even more gas while idling than cars with smaller engines.

Combine errands/trips. If you combine errands into one trip, you drive fewer miles and use less fuel.

In addition, several short trips taken from a cold start can use twice as much fuel as a longer, multipurpose trip when the engine is warmed up and runnng efficiently.

Use Overdrive and Cruise Control. Overdrive reduces engine speed to save gas and reduce engine wear. Cruise control cuts fuel consumption by maintaining a steady speed during highway driving.

Take the Drive $marter Challenge

In Conclusion…. Energy efficiency empowers you to take more control of

your energy use and costs while you improve the environment and make our nation less dependent on foreign sources of energy.

Energy efficiency creates home-grown jobs to unleash the power of a home-grown resource.

Energy efficiency is a win-win-win for the environment, your wallet and energy security!

Thank You Questions?

To learn more www.ase.org

Susan Shuckra, Director of Communications, 202.530.2257 or sshuckra@ase.org

Ronnie Kweller, Director of Media Relations, 202.530.2203 or rkweller@ase.org