 Now going to start our next panel discussion, which is going to focus on energy efficiency. You're going to hear more about that in this panel and we'll be hearing more about that on our next panel as well. And we have four speakers with us to talk about different aspects of efficiency in terms of different kinds of technologies, practices, policies. And our first speaker will be Jennifer Schaefer who is the Executive Director of the Federal Performance Contracting Coalition. Jennifer has long been engaged in energy efficiency on many, many different aspects and levels and doing a lot of work here with regard to thinking about this very important federal performance contracting. Jennifer? Okay, I think I'm just going to sit here even though I'm incredibly shrimpy in this chair. Is that, or would you rather? Feel free to come up here if that's okay. Maybe I will. Okay. It's a very small chair. So I represent the Federal Performance Contracting Coalition which is a coalition of energy service companies that do energy savings performance contracting in the federal government. Our members represent about 95% of the energy efficiency performance contracting that's done in the federal government. They're companies like Johnson Controls, Honeywell, Lockheed Martin, Chevron Energy Solutions, Siemens, Trane, Schneider. There are several companies who do this work. So I'm going to start with sort of what is an energy savings performance contract. It's a comprehensive energy water saving project that also can install renewables on site and work on operational energy savings within a federal building in this case. The contractor, which is the energy service company, does the audit of the building, figures out what the needs are, works with the customer, the federal facility on what they want and what their problems with their building or maybe they have a boiler that needs replacing and they've got other things they can do. And then they craft a project. They install the equipment. They pay for everything. They get financing if it's necessary. And then they measure and verify that the savings are accruing during the life of the project. And they guarantee that the savings will accrue. So it's sort of no money up front for the feds. And then it's paid back through energy savings, through utility bill savings. So imagine before an energy savings performance contract, your facility spent $100 a year on energy. You'd be really lucky if that were really the case. But let's say you did. Then after the work is done, the ESPC has completed and you've got the installs. Maybe you're giving $65 to the utilities. That's your water, your gas and your electric. You've got $35 to both pay back the energy service company, and most of the money would go for that. And maybe you get to keep a couple bucks for yourself. During the life of the contract, and energy savings performance contracts can be for the federal government, up to 25 years in length, which is a pretty long-term contract. The sweet spot with the feds right now is really between 12 and 17 years. But during the life of that contract, the energy service company does the measuring, and then guarantees that the savings are there. And then after the fact, your savings are all accrued to the customer. ESPCs are getting a lot of renewed interest right now, in part because there's just not a lot of money right now for any of us in Congress with the administration. But there is a lot of recognition that agencies can do more that's mission-related if they don't waste money on energy. So there's a recognition that your long-term savings can really help with the things you need to do if you're the Department of Homeland Security or whatever it is your mission is. So people are using private sector dollars to do that work. The other attraction is that they are guaranteed. So you know you're not going to end up paying some ridiculous amount that you had no idea when you got started in this project. Let's see, what else did I want to cover today? One of the things, you know, they are financed projects, which means you're paying for financing. Right now that's not a big major deal because financing is pretty inexpensive. Interestingly, back when financing was quite expensive, Oak Ridge National Laboratory did a study that found out that projects done with appropriated money actually end up costing the government more than projects done through performance contracting. And the reason for this is persistence of savings. When you spend your own money, what happens is you also use your own people to do the upkeep of the equipment and a lot of that falls by the wayside. Whereas the contractor being on site to make sure the equipment is working at peak performance, you get persistence of savings. And otherwise, under appropriated projects they can degrade very quickly. Some of the evidence of this renewed interest in ESPCs is in December the president made an announcement on the Better Buildings Initiative and part of that was an announcement of $2 billion, a commitment of $2 billion, not his money, private sector money, for energy savings performance contracting in the federal government. So agencies have now put in their proposals and their plans on how much they're each going to be doing. And there's been a lot of support from Congress for this announcement. We had a Republican-led letter and a Democrat-led letter in this House of Representatives commending the president for his announcement and basically saying, let's work together to make sure this is implemented in a way that bears out and that we really get that $2 billion invested and start saving money right away. That was sort of ESPCs in a nutshell. I'm happy to answer questions if anyone has them. Am I supposed to wait till the end for that? Why don't we wait till the end and see how we do. Hold those. All right. Next up will be Leslie McDowell, who is the director of marketing and communications with the Building Performance Institute, Inc. Thank you. First of it about BPI. We are the standard setting and credentialing organization for the home performance industry. Our industry is young that is growing gangbusters every year. And I just kind of wanted to get a sense from the audience how many of you know what home performance contracting is? Maybe a show of hands? Have you heard of home performance contracting before? Okay, good. Anyone want to volunteer to tell me what it means or what home performance means? I've got a stooge in the audience if you don't answer me. Well, what we call it is whole house as a system home performance contracting. It's the folks who go in on work in your house. Your whole house is a system rather than just its component parts. So imagine this scenario. You're uncomfortable in your house, so you reach for the thermostat, but the HVAC system just can't keep up. Your energy bills get higher. You notice condensation on your windows. You find mold in your basement even. Your kids seem to catch one cold after another. So you think, okay, I'm going to do something about this. You spend some money and maybe a weekend or two putting in new insulation into your attic. Maybe the problem gets a bit better, but it's not solved. You look at the condensation and think maybe I should buy new windows. You install a new thermostat. You think about replacing your furnace with a higher efficiency model. And meanwhile, you're still uncomfortable and your energy bills are still way too high. This is what we call the process of elimination strategy to home performance repairs. It can cost you a lot of money and time without ever achieving your goal of a more comfortable and a more energy efficient home. The alternative is working with your home performance contractor who looks at how all of these components interact together as a system to maximize energy savings for the homeowner and comfort and safety for the occupants. So how is BPI involved? BPI develops standards to make sure that this work is done right. We bring together building science experts from across North America to develop the standards using a consensus-based methodology. From our standards, we develop certifications for individuals and accreditation for contracting companies. These are the elite companies, the accredited contracting companies in our industry who commit to our third party quality assurance program which involves random inspections of their work to make sure that their work is conforming to our standards. In short, we provide risk management to energy efficiency programs. These are the federal, state, and utility programs around the country that provide incentives to homeowners to get this work done. To date, our standards and credentials are specified in over 120 of these programs around the country. Many of you will have heard of Home Performance with Energy Star. That's administered by DOE in conjunction with the EPA. And there's 50 such program sponsors, states, or utilities that sign up with this program around the country in 34 states with over 1,800 contractors participating in the program to get this work done for homeowners. And currently 44 of these programs in 30 states have chosen to specify BPI credentials for the contractors participating in the program. We're also proud that our standards and credentials have supported the Weatherization Assistance Program for 15 years. The program has weatherized over 7 million low-income homes since its inception, and it added 14,000 jobs to its roster with Recovery Act funds from 2009 to now. I just wanted to say that I'm very happy to be sharing this expo with partners in the renewables sector. We really feel that energy efficiency and renewables should go hand-in-hand. And too often we work in silos where we think about incentives just for energy efficiency or separately incentives for renewables. And those of you who are renewable advocates are used to arguing that renewables can reduce peak load and base load, coal power or nuclear power. But it's important to understand efficiency in the same way as a resource. I like to refer to Michael Hervey, who is the chief operating officer of the Long Island Power Authority, and he recently gave a keynote address to a home performance contractor at a conference, and he said, we are building now our next generation power plant of 500 to 600 megawatts and it's called energy efficiency. It's the work that all of you contractors do in this room every day. Some people call this form of energy savings negawatts, negating the kilowatts that would be there. Renewable and efficiency advocates need to have a combined approach, is what I'm saying, to make real progress. Ramping up your PV arrays, geothermal heat pumps and other technologies in America's homes is so important. But before you install those systems, you need to make the home more energy efficient. If you think of the house as one large load, it's critical that we reduce the plug loads and energy loss through the building envelope in order to size renewable systems and HVAC systems properly. So together we can build energy efficiency negawatts and renewable megawatts. That's my little sound bite. So speaking about doing efficiency first, I'd like to introduce all of you to Jay Murdoch. Jay, can you wave to everybody please? He is the Executive Director of Efficiency First, which is our trade association. They have chapters throughout the country. They represent us here in Washington and in state capitals throughout the country. So we're really proud to be working with Jay and I hope all of you will come by our booth and visit with Jay later in the day. So with residential energy efficiency, it comes down to having a properly credentialed workforce that can assess, install, and maintain the necessary improvements over the long haul. A challenge we find in a lot of areas is the obsession with energy auditors to perform the diagnostics of the work with no associated training for the supervisors, the QC inspectors, the installers who are actually doing the work. So that's why we're working right now with DOE and the National Renewable Energy Lab on a pilot program to develop four new advanced certifications for experienced professionals only. Called the Home Energy Professional Certifications. These are not entry-level credentials. They are tailored to the most common jobs in our industry. Energy auditor, retrofit installer, crew leader, and QC inspector. They were developed by industry subject matter experts based on job task analyses that went through two rounds of public comment throughout the industry in the country. So we're very proud of those. Do come over to our booth and talk with us about that, how you might want to be involved with our pilot. And also come over to learn how you can enjoy the important work of efficiency first. Thank you so much. Thank you. Like with everything, things are only as good as how they are really installed and they make sure that they're really working properly. And so it's really important to look at everything as we move efficiency technologies forward and really try to address energy overall. We'll now hear from Andy Kuntz, who is the... Well, I'm sorry, from Kelsey, from Kelsey Sutherland, who is the Executive Director of HEATIS Power. Thank you very much. So I love that you mentioned the renewable energy and energy efficiency coming together. I think most of us see that there's big crossroads there. And what I'm here to talk about is HEATIS Power, that our association is called the HEATIS Power Association, and we represent the waste heat to power industry, which is actually kind of in the very intersection of energy efficiency and renewable energy. Waste heat to power is the byproduct of industrial processing. So if you picture or think about big industries, like making cement or paper or chemicals or steel, these guys take a lot of energy and a lot of heat to make their products. And you'll often, if you happen to drive by, especially out in the kind of West States, you'll see smokestacks that are usually attached to these facilities because they require so much heat to make their product. An example might be a paper facility would take 3,000 degrees to 5,000 degrees to make some of their product, to dry some of the wood in the paper. When you finish making that product, there's still heat that's left over, but it's not hot enough to make any more product. So maybe it's 1,000 degrees or 800 or 700 degrees. It sounds very technical, but that 700 degrees is no longer valuable enough to make paper, but it still has 700 degrees in it. And our trade association, the HEATIS Power Association, has companies that would take that heat and generate emissions-free electricity from it. So that electricity could then be used on-site to reduce their utility bill, or it could be sold to the grid as traditional renewable energy so that utilities could meet their renewable portfolio standards. So it's kind of a little bit of both, the concept of generating electricity or reducing your current load. So backing up a little bit, the HEATIS Power Association, we are relatively new. We formally incorporated it in D.C. in January, but we've been around for a couple of years, and we represent or have companies that manufacture technology that would capture heat and turn it into power, who develop the projects. We've also got a pipeline company that's a member. So a couple of examples I mentioned, the paper or the chemical processing facilities, but also oil and gas pipelines or oil and gas processing. On pipelines, you've got pipelines going all across the country, and they've got compression stations that are compressing that gas to ship it down the pipeline. And those compression stations have engines, which have exhaust heat. And there's no need for that heat on a compression station. All they're trying to do is compress the gas. So that heat is just literally being wasted, which is where we get our name, Waste Heat. And so we could capture that heat, again, and generate emissions-free electricity that would then be sold to the grid. So kind of a little bit of an example of how that's done, we would take the heat and run it over some coils. I don't want to get too technical, but you go through a pressurization process where you pressurize the heat on a refrigerant or some kind of a working fluid and then expand it. And it's that expansion that runs a turbo-expander that makes power, which is different from, of course, traditional conventional power that would be a combustion process. And that difference is what is key, and it's why the Heat is Power Association exists to explain that taking heat and making non-combusted power, emissions-free power, is something that's very similar to our traditional renewables. Most of the people who want renewables are looking for clean, emissions-free power, and we want it to be renewable. And in an industrial world, unless all of our manufacturing does ship off to Mexico or China, we will continually have that waste heat, and so we should do something with it. So that's something that we're focused on, where we talk a lot about redefining renewable to see it more from a perspective of the product, rather than some, a lot of policies, federal and state, are very particular on if you are this type of technology, then you count, as opposed to saying, if you make emissions-free electricity, then we want you. So it's also neat not only to be on the intersection of energy efficiency and renewable energy, but also in today's environment, we've got folks who very much want clean, American homegrown electricity, and we've got manufacturers that we want to stay in the United States and keep jobs and not leave. And so right in that intersection is really where waste heat to power is. So the manufacturers have the opportunity for a new source of profit. They could sell their waste heat or sell the electricity that's made from that waste heat. And the environmental community and those of us who appreciate local American power, as well as clean air, have the opportunity to have more power. So market size, we estimate that there's about 10 gigawatts of power per year across the United States. There's an EPA paper that was just released that talks about that, and we've got a booth to take a look at the paper. But 10 gigawatts is about 10 million American homes, which is certainly sizable. And the technology exists in the United States, and a lot of American companies are making it in a modular form, which just means repeatable. And a lot of us are making it here in the United States and of course shipping it overseas where markets are a little bit better, which is painful because we should be capturing our own smoke sacks and turning them into emissions for electricity and making the profit from it. The association we worked with the federal government and we had a bill introduced on the House side by, it's a bipartisan group. Ron Paul's our fierce Republican. And we've got Jay Inslee, Paul Tonko, and Shelley Berkeley. And that bill effectively would give waste heat the same kind of tax credits as traditional resources, especially geothermal. Geothermal, interestingly, this technology just takes heat and makes power. So it doesn't really matter where that heat's coming from. If the heat's geothermal or solar thermal or waste heat, great. The machine will give you emissions free power. However, when my company makes that technology and sends it to Nevada for a geothermal facility, there's a 30% investment tax credit that comes off the cost of that technology. When we make the exact same device and we send it to North Carolina for a paper facility to make the exact same emissions free power, you get nothing. And so my company and many other companies are much more involved in the geothermal and solar thermal markets, which is good and great and we ought to develop that. We also should not overlook this other opportunity. So the Heat as Power Act was introduced. We don't know, obviously, within election year things are complicated on the Hill. And so we're working to continually educate congressional folks and try to get more cosponsors. But we've also taken a lot of our time and our resources now to the states. And there's actually 13 states now that recognize waste heat in some capacity of renewable, including Indiana, Colorado, Louisiana, Michigan, New Mexico, Nevada, North Dakota, Oklahoma, South Dakota, Utah, West Virginia, California. California recognizes it in their self-generation incentive program. Not yet in their cap-and-trade AB32. There's a lot of work in California. We're working on it. So if your state wasn't mentioned and you're interested, please come talk to me so we can work with you guys and see that change. And the last state that just added, actually last Monday, Governor Kasich signed a bill at one of our member companies facilities to add waste heat into their renewable portfolio standards. And it was actually added into the renewable program as well as our energy efficiency program. And so the developer would be able to, or the host site would choose which one was most effective. So it's a really exciting technology and resource. The biggest takeaway I would love to leave you guys with is in most cases, if you're driving down the road and you see a gas flare, gas processing flare, or you see a smokestack. In many of those cases, you're literally looking at dollars and emissions for electricity. So I would encourage you to knock on their door and ask them what's going on. Maybe not, make sure you have somebody with you in case. But the last thing I would say too, in order to make sure that it is in the renewable category, the waste heat that's eligible is something that's a byproduct of an industrial process. Not something that is off of an electricity generating process. And that's an important distinction for a lot of our environmental folks. But most of the industrial processing would be an eligible waste heat. So thank you. Great. Thank you. And I think this is another terribly important area that has been really overlooked for so long. It's an abundant resource and we shouldn't have waste. It is a resource. And so I think it's really, really exciting and that so make sure you stop by all these booths. And as with all of these things that we've been hearing, you know, it's really important and knowledge is really important. Knowing about these things is terribly important and policy is really important in terms of helping these things really move forward in terms of just setting that right environment to unleash all of this wonderful innovation and kind of just doing the right thing. So now we're going to turn to Andy Kunz, who's the president and CEO of the US High Speed Rail Association. And so we're looking a little bit at transportation finally. We've talked about it a little bit in some of our previous panels, but again there are enormous opportunities with regard to thinking about how we use transportation in this country and the different forms in which we can actually get better services and more efficient services. Andy? Thank you very much. Well, welcome everyone. Happy to be here. When we look at how Congress operates here, they look at energy and transportation as if they're two different things and there's no relation. And when you really look at where we use most of our energy, it's for transportation. We use something like 20 million barrels of oil a day and 70% of it goes right to transportation. So the best way to use energy crisis in our oil situation is to retool transportation and the most efficient by far we could cut our oil consumption in half in this nation by building a national rail system. And the good thing is it's powered by electricity which can be as renewable energy scales up, that can power the rail system. So then you have a completely sustainable form of transportation and it actually moves higher people than airplanes and cars and other forms of transportation just because the high capacity of the system. So I'll tell you a little bit about we started the association in 2009 right after the president launched the high speed rail program at the federal level. And our association is a non-profit and we're made up of members in the rail industry. We have rail manufacturers. We have rail operators. We broaden the membership a bit to include some other industries that directly relate to it which would include real estate developers and people who build compact developments at the rail stations that's called transit oriented development. And then we have also even some defense contractors that are interested in this and they're bringing some of their expertise in defense and communication systems to the rail system and also a lot of them are renewable energy so it's kind of a whole lot of planets that are all coming together here. What we do as the association we put on conferences. We testify here in Congress. We educate people. We are in the process now of launching a television series about high speed rail because around the world there's something like 20 or 30 countries that all have high speed rail and many of them have had these for 46 years. France has had high speed rail for 30 years so these are proven systems that have had enormous successes. Every country that's built them they're enormously successful. China has now built something like 8,000 miles of high speed rail in about the last four years. It's one of the most phenomenal, fastest projects on earth. Spain is building a massive system even the Middle East, Turkey is actually building high speed rail to save oil. So there's kind of an eye-opener. They're sitting on the world's oil and they don't want to use it all up in transportation. One thing we've just launched yesterday and I'll actually pass these around. We've launched an online promotion similar to the president's promotion of you win dinner with the president but in our case you win a free trip to Europe to ride the high speed train and what this is generating is the capital and the resources to help fund the TV series. So please join up and take your chance on that. So the big problems that America faces we really have a huge energy crisis coming our way. We use as all the oil as I mentioned a second ago and the prices are all rising and they've dropped a little bit now because of the recession and all but most experts say that oil is going to continue rising just because the global supplies are getting tighter and tighter while the demand is continuing to grow. Even Goldman Sachs came out recently with a report that said they expect oil prices to stay above $100 this year averaging and then the next five years to hit $200 a barrel and when that happens all of our airlines are going to stop running or they're all going to be bankrupt they're close now and gas could get to be $5 or $6 a gallon and if we don't build a rail system we don't have a whole lot of other options. Those are the only two forms of transportation we have so this is a there's kind of an urgency here to get moving on this. The other big problem we have is congestion which has reached epic levels all over the country. Every major metropolitan region in America has mind-numbing congestion. 10 or 20 lanes of just bumper to bumper traffic for 100 miles or more and so this is just wasting all of our time all of our energy stuck going nowhere so and then the third one is the deteriorating condition of our aviation system which I'm sure anyone in here has had problems with flight delays and cancellations and worse and worse conditions on the airplanes you have no more leg room you have to pay for everything next you'll be having to pay to use the bathroom and so the beauty of high speed rail is that you can build one system and it literally solves all three of these issues the energy crisis the congestion crisis and the deteriorating condition of aviation so when you look at it that way it's really the bargain of the century and then I have these brochures we'll pass these out as well this is a bit of information about the association it lists out all the benefits of high speed rail and then it has the map that we've launched right inside here and we have you can see a large version of that over at our booth and you also can see the animated version of it on our website and the idea with this map is that we start with a few little pieces around the country in the busy corridors and get some of those built first connecting say Sacramento, San Francisco, LA another one Dallas to Houston another one Chicago, St. Louis and you start there and get those working and using and then you begin to expand it and connect the next corridors and the next corridor and the next corridor and over a 20 or 30 year span we've built the system across the country and so there's lots of critics against this and the same ones who are against the renewable energy industry and all that who say oh it can't be done we can't afford it this that and the other but the real issue is we can't afford not to do this but with energy prices continuing to rise our economic situation as a nation is not ever going to improve until we lower our day to day use of oil and right now we use about 6 to 8 times more oil per person per day than a typical European and it's not because we have a higher standard of living it's because we are all in single occupant vehicles they're most of them are SUVs and all of our cities and neighborhoods are all spread out apart so you literally have to get in a car just to go get a gallon of milk or go somewhere or drive the average person drives 30 or 40,000 miles a year in that situation and now it's getting worse because of the congestion so you're spending more energy and more time just to do your day to day things so what this will do is sort of unlock a whole new realm of mobility for the country and at the same time stimulate a whole new real estate development sort of a revolution across the country it will stimulate new manufacturing because we really want this to create American jobs and retool American factories to build all the rail parts it saves us money by lowering our trade deficit that we buy foreign oil with it's energy saving it can be powered by renewable energy and it's also the safest form of transportation so I would encourage you all to visit our booth again log on to our website and also just tell your member of Congress that we expect a lot more funding for high speed rail and to get the project moving forward thank you very much we have time for one question well okay two but then we gotta get out of here okay gotta keep this train moving alright here first okay use the energy by the age of 0 to be the studies by God yeah I didn't have the time to get back to the grid but also that the entire system as it scales up across the country we're also scaling that renewable energy to power so in different parts of the country you can power it by ocean power when you're near the coast and wind power in the middle and solar in the south and all that and so we feel that you know as we have to scale both of them grid renewable energy sources and the rail system itself so that way you kind of get really efficient right so once again everything has to be looked at integrated way in terms of really getting the most efficient and the cleanest energy okay sorry go ahead well it varies depending on the market and the customer you can get an energy savings performance contract through even with the federal government which tends to be one of the slower customers in the sort of six to nine month range but there have been projects that have taken five years three years ago the average cycle time was 24 to 30 months so it can take a really long time and the presidents committed to two billion dollar of investment in a two year time frame that means we've really got to be on top of cycle time so most of the agencies are pushing for their commitments to be in and their projects identified and awarded almost by sort of the end of this year so that we can move it through the process in a way that make the goals does that help? Frankly it's it's not like buying a widget this isn't like when the government goes out and says I'm gonna procure some I need a new air conditioner I'm gonna go procure a new air conditioner I go to GSA schedule I get one oh good there's an efficient one that's what I'm gonna buy it's a different kind of contracting it's a very complicated kind of contracting in some sense because it's a service contract it's a widget contract you've got your contracting personnel your energy personnel there's a lot of help that's provided by the federal energy management program at the department of energy to help agencies get through the process but and they also do a lot of training of contracting personnel and energy personnel but it is a complicated type of contracting there are 16 approved escos on the DOE super contract they've been vetted for two years they were vetted there's another contract with mostly the same 16 by the Army Corps of Engineers if you're on those contracts you are approved to go through a fast track process government's not real good at fast track so you know in some sense a lot of it is just normal red tape delays but it's it can be done quickly it is being done a lot more quickly and we're encouraged by the commitment at the moment okay and that is the last word please feel free to follow up with all of our speakers lots of good information thank you all very very much and thank you for being here and we'll start our next panel and within five minutes thank you