 Thank you everyone for being here. This is our last panel for the afternoon. However, this whole topic of energy efficiency is absolutely fundamental to everything that this whole expo and forum is about because no matter what we do with regard to thinking about alternatives, thinking about the whole host of renewable energy technologies, if we are not really energy efficient in every sector of the economy, we have really missed the boat and won't be able to achieve those clean energy goals. And there is the other thing that is so exciting about thinking about efficiency is that the potential that we still have that is untapped across every sector of the economy is quite astounding and therefore it is also very exciting when you look at the kinds of technologies the way things can be put together that we can improve our efficiency so much. So that's what we're going to hear about in this panel and to start us off we're going to turn to Bruce Quinn who is the vice president for government affairs for Rockwell Automation and is a part of the industrial energy efficiency coalition and is also active in national electrical manufacturers. Great. Good afternoon and thank you very much for allowing me to be here this afternoon and speak with you. It is a big topic. Nine minutes is probably not going to give it a fair shift but I'll do my best and they'll probably have to drag me off kicking and screaming at twelve minutes so we'll see. Let me start out by giving a couple of facts and figures about industrial energy efficiency and why I think it's a pretty topical issue today. Industrial energy consumption makes up about one-third, thirty-one odd percent of all energy consumed in the US and that number actually gets a bit larger when you look at it globally. When you think about industrial energy efficiency you have to think about manufacturing or factory energy efficiency is a big piece of that and global manufacturing actually today accounts for about thirty-six percent of all CO2 emissions around the world but let's not attack manufacturing and make it the evil person in global warming because again particularly if you look at the United States how important manufacturing is and how critical it is to our economy as well as our national security. In fact last year NAMM tells us that manufacturing contributed two trillion dollars to our economy which equals about twelve point five percent of our overall GDP and they also point out that one dollar spent on manufacturing in the United States has a multiplying factor that allows that has an additional one dollar and thirty-two cents in additional spending around that manufacturing so it's very important to us. Finally the OECD has estimated that although we have over the last twenty years made significant gains in energy efficiency around the world we're leaving way too much on the table today. In fact they mentioned in a recent report that there are twenty-five exajoules that would be a big number of potential annual technical energy savings just utilizing the application of proven technologies the technologies that we have today and best practices that again we have today. So what am I talking about when I'm talking about industry or industrial energy efficiency? Simply put we're talking about applying better practices technological innovation to reduce our energy utilization while at the same time be able to do as much or hopefully even better than we've done before from a business standpoint but if you look at industrial energy efficiency in the broad spectrum if you try to look at it from steel plants mining cement glass pulp and paper and on the other hand you try to look at it from food and beverage manufacturing or automobile manufacturing or pharmaceutical manufacturing it's very hard the application is going to be very different across that spectrum and so it's tough to get your arms around from a big picture standpoint but the way that Rockwell Automation approaches all of our projects around the world we look at it broadly in two ways one we're going to go in and do an assessment and hopefully look at it at some sort of a comprehensive power and energy management solution these things include as I said assessment tools extensive smart metering monitoring systems load management specialized software applications modeling simulations etc etc looking at the plant as a as a whole plant and trying to see what we can do from a holistic standpoint these are normally done and characterized in a way that's highly customized solution for that particular plant that particular industry or that particular application the other way that we would look at it second broad area if you will is to take a systems approach to it one thing that you may or may not know is if you look at fans pumps compressors and the motors that run those those pieces of equipment are the most ubiquitous equipment in all factory or industrial automation setting or industrial settings there's literally anywhere from a dozen to hundreds even thousands of these pieces of equipment in a given factory or industrial environment and in fact this equipment as you can imagine with as much as they have in a given factory uses anywhere from fifty to sixty five percent of the total electricity that that plant's going to utilize and so when we look at it from a systems point of view we're going to almost always attack those areas that are most energy intensive in a particular factory how do we do that well I should say first let me say that we can look at it we obviously are looking to bring in the future those two areas together we really want to do look at it from a comprehensive standpoint and I would say that today that the idea is to integrate smart technologies into into machines but then extrapolate that on out into the plant wide area move that into the to the corporate structure as well and ultimately we want to drag in the supply chain also into that and so that's what the future holds and energy efficiency will play a huge role in that that more integrated approach but again we we take both those approaches one of the reasons again we would go for that that systems approach is cost it's cheaper to go after those fans pumps and compressors than the entire factory downtime for the facility takes a lot of time to actually bring the operation down put the equipment in there titrate it get it working all right and then till we finally get back up to the right position with a comprehensive approach to it so again the systems approach works very well what is the systems approach include I include includes what we call controls it includes sensors and a key product what we call a variable frequency driver or a VFD I just want to give one quick example of what a VFD is and why it's so important a VFD connects to a motor and it's a it's almost a bolt on application if you will it's an electronic electronic box and it connects to the motor that electronic box then also connects through sensors through sensors to whatever that motor is trying to to work with so if it's a fan a prompt or a compressor whatever that motor needs to do it needs to the fan needs to blow and cool a and to cool something down the sensors from that VFD will be connected to that end use item to that that final use item that needs to be cooled and the VFD will determine where is that at in the cooling process at this point and it will tell the motor how much energy is actually necessary in a second by second operation or minute by minute operation how much energy needs to be applied to that fan in order to keep that vessel let's say at that optimum temperature and so that's how a VFD works and that's why it's so cost effective I have a lot of stats here on some real world examples suffice to say we can in addition to utilizing a high performance motor along with the VFD we can take that we can drop your energy consumption by 40% in some applications 50% in other applications about a year 18 months turn around as far as return on investment is concerned so again these are extremely cost effective they've been around for 20 or 30 years and are well proven technologies they work and they work very well I don't have the numbers on carbon emissions to go along with all this for you today but we're we're starting to put that together and working with NEMA we're doing it because obviously that's important these days but if you think about by reducing our energy consumption in an industrial environment on the scale that we're talking about we're also going to stop emitting that we're going to have to start stop we will be able to reduce the amount of resources that we're actually extracting from the ground and utilizing and that's we're going to be able to reduce the amount of emissions that these factories are putting out in the long run. Let me just give you a couple of examples of what we need to look at very quickly. I encourage Congress to take a look at establishing comprehensible national strategies around both energy policy as well as manufacturing policy. I will point out why that's important ACEE or how many of you are familiar with that but it's the American Council on energy efficient economy. Well known think tank around this area. They recently came out with their global rating for energy efficient the world's most energy efficient countries and like at the World Cup Germany came in number one this last month. They looked at 16 countries the top 10 had six from Europe notably number four was China and India and South Korea were all above the U.S. that lagged in at number 13 on that list. Why is that important because all the countries in the top 10 have a national strategic framework that they follow in order to be successful and to meet these energy efficient goals. Let's continue to fund fully our important department of energy, NIST and Commerce Department programs, key programs under the advanced manufacturing office, industrial technologies program, industrial assessment centers and others. These are all very important and they continue to work but with some titrated leadership we need to drill down to what's most important. And finally tax policy obviously huge and important I know other speakers in the last session talked about that I can't go into detail at this point I'm out of time but regardless it's important we need to have a balanced combination of education incentives and regulation to move this forward. Let me leave you with a last thought, one last point that also came from ACEEEE. In the five year period from 2008 to 2012 new efficiency improvements from utility programs and appliance standards in the U.S. have avoided the need for more than 275 power plants. And ACEE analysis shows that energy efficiency could help states offset the need for nearly 500 power plants reducing carbon pollution by 26%. This means that we can make companies and our nation more competitive, make more money but at the same time meet our national goals around the environment. So I know I'm out of time, I know I was a little disjointed but thank you very much for your attention. Great, thank you Bruce. A lot of food for thought there and I think it's always useful to put things in the context too and vis-a-vis other countries because it becomes part of the whole competitiveness equation as well in many ways. So we're now going to turn to John Poland who is the Vice President for Government Affairs and Solutions with Phillips Lighting and certainly Lighting is an area that has been changing in a very, very exciting ways and very quickly. Thank you. Who was here this morning when Congressman Tonko gave his brief remarks? Who was able to hear him? I think he pretty much knelt at the sentiment of many of us who are frustrated by the inaction and by the continued discussion. I know this conference is both about alternative energy as well as energy efficiency and obviously there's a lot of discussion around climate change and related issues. It's amazing that we're still having the discussion, it's amazing that we're still having the debate but that's the price we pay in a democracy. Apparently you can have a point of view no matter how ill-informed it may be and you have the right to express it repeatedly. But when it comes to energy efficiency you would have thought that the debate would be over, that the talking had been done. There is nothing that is faster, better and cheaper to get this country to reduce our carbon emissions but to also strengthen our economy than energy efficiency. Now we're a lighting company and we're the world's largest lighting company. Only the sun produces more light than Phillips and we will team with the sun when given the opportunity. We are moving to LED as are all of our competitors. In fact some of our most competitive companies now started with LED. They didn't begin like we did 120 years ago with the incandescent light but 10 years from now 93% of the lights that are outdoors on your streets will be LED. The buildings currently make account for about 22% of the energy burn in this country. I mean excuse me lighting accounts for about 22% of the energy burn in buildings. Just transitioning to LED would reduce that consumption by two-thirds. It is obviously a no-brainer you would think as are so many other issues you would think. The transition to LED is occurring much like the transition from the rotary phone to the handheld you have today. It is rapid. It is driving prices down dramatically while quality is improving. What used to be a $1 light bulb that would last a couple of months and cost you 100 watts in terms of the light it would burn now can last 20 years. You have to actually consider leaving your lamps or light bulbs in your will now if you're my age because you're not going to or certainly you want to mark them before you move. You want to take them with you because the lights will outlast you. Imagine lights for 20 years. It won't be long before lights will be embedded in the fixtures. You won't actually go buy a bulb. You will buy a lamp fixture in a house or in a commercial application. The light will be a part of it and it will last as long as the fixture. The problem we have in most of our buildings that have been built in the last 20 years is especially if they're government buildings they were built by a process that was called design bed build which equals to cheap stuff. It's price driven and the lighting in these buildings is extremely cheap therefore it's very inefficient. The opportunities to transition the lighting and buildings in this country and government buildings especially to LED is enormous and the opportunity for saving significant. If LEDs were we were to transition to LEDs in this country would be the equivalent of getting about 40 percent of our automobiles off the road in terms of carbon emissions. Significant impact. Something immediate. The prices of LEDs are going down. This lamp that is on sale now for less than ten dollars. You can also use it as a ping pong paddle. As last for over 20 years produces the same light as a 60 watt and even though it's a flat or it's called slim style a flat lamp it produces a light that appears the same as your traditional lamp. It produces it is a 60 watt equivalent for 10.5 watts. It is a at five dollars it hits the tipping point among consumers that will rapidly reach saturation in the market probably within three to five years it will be at that price. LED prices are dropping. The efficacy or the ability of each LED to produce more light is improving dramatically again much like the cell phone analogy getting smarter getting smaller getting cheaper. Every state that has rebates currently seeing an uptick in adoption by consumers main this sells for $1.97 with a rebate. A lot of the states it's a $5 rebate and you're seeing a lot of consumers moving to it obviously the energy consumption will be going down. Oddly California doesn't offer a rebate on this so they're one of the leading states in terms of the environment and energy efficiency strangely is lagging behind on LED adoption. I want to give a couple of quick examples of some of the products or some of the programs that we're doing. One those of you that ride WMATA and if you park in one of the garages will within the next year see a difference in the lighting. We're trying we're changing all of the lighting at WMATA's garages to an LED lighting with a control system much like Bruce was talking about it's an integrated system and it's a system approach. Putting in a lamp is a great improvement but when you can put in the controls that harvest daylight that dimmed down when when there's no activity and you can manage the energy efficiency there we're going to reduce the consumption of energy at the WMATA garages by over 65 percent. 70 percent would be a reasonable target. Little different model we're not selling WMATA lamps or fixtures we're selling them light light as a service that is the next wave of how lighting will be done it will be just like a water or a telecommunication service you won't buy the product you will it as a commercial entity you will buy the actual light lumens on the surface. Why buy the electricity and then buy the lamp when you can just buy the light that's all if you're running a garage and you're running a transit system you're not really trying to run a lighting system you're just trying to keep your customers happy. We've installed systems at several DoD installations 16 Air Force bases and complex new innovative control system at Fort Irwin an outdoor lighting system in partnership with a actually in partnership with a competitor Siemens at Fort Sill as well as at Fort Bliss. Those of you that are interested in learning more about what we do obviously we have a booth but if you're interested in learning more about what Congress is doing to impede this process I would be more than happy to discuss it with you there was a time when we had energy efficiency like I say as a national agenda we were concerned about energy independence we were concerned about jobs and we were concerned about involvement in parts of the world where maybe the energy costs were a little high. Recently the Congress has decided to backtrack on the ESA the energy and independent security act of 2007 passed by a Republican president from oil producing state who has an accent a lot like mine and he still supports that but there are members of his party now that think it's a bad idea to move away from the traditional energy inefficient and condescent to the LED so I'd love to visit with you about it because we could sure use help here on the hill in not repealing the impediments that Congress have placed on what would be a more energy efficient economy thank you thank you thank you very much John and I must say I've had the occasion to talk to a few mayors recently who have been very excited about all the street lighting projects that are going on across the country that cities are doing in terms of putting in LED street lighting because it makes such sense as in terms of improving quality in terms of safety and dropping their electricity consumption hugely so now we want to turn to Greg Johnson who is the president of great name blue penguin corporation good afternoon thank you very much I am the president of blue penguin corporation we are a different sort of company we're extreme energy management what extreme energy management is is the use of mega data and statistics to manage monitor manage and control energy the results that you can achieve with mega data are surprising where we can reduce at a minimum a total buildings energy consumption by 20% in 12 months typically the payback that a client can achieve is under 18 months the big problem though is that no one knows where to turn when it comes to energy efficiency a client of mine actually a couple days ago when we just finished one of their projects he turned to me and said you know the cheapest BTU of energy that you could possibly buy is the one that you don't use and that sums up everything that we're doing here and everything that we're talking about here what this mega data approach of blue penguins is it helps identify where to turn for that next energy efficiency dollar for example when we gather data we collect data on a one-minute interval the master meter is very good it's a very first good step but to really look at energy efficiency you need tremendous amounts of data throughout a building construction where you can gather data on in some cases down to the circuit or with a data center down to individual rack to know exactly where all the energy is going you then collect that and statistically analyze that with that level of detail we can determine where the best investment is for the next energy efficiency dollar when we first start a project the clients usually ask us a couple questions do I need new windows do I need to insulate do I need better mechanical equipment what we tell them is you don't need any of that you need data you need new data we have one building so far where we have found a financial argument to install windows there's snow blowing in the winter in this house this building that's a good indicator we have not found any building thus far where an improvement in efficiency you know replacing one piece of equipment that's per operating correctly with another one will increase the efficiency significantly to give a payback just does not happen like an excuse of course when we approach data centers we can divide out and identify how best to manage the energy within the data center the what we have found is that the only way to manage energy and create this efficiency is through the mega data with some of the examples of how we can apply this and the results we're getting we have a 40,000 square foot building we have reduced their total energy consumption by 47% they used to burn 14,000 gallons of fuel oil they now burn for there's a few fuel oil dealers are very unhappy with me we have a building that burns natural gas for heating we now have a plan in place they're implementing it now it will completely eliminate the natural gas burn completely we have a propane fired building it at a minimum it burns four gallons a day of propane to heat their building every day of the year we started the project a month ago so far they have not burned one gallon of propane and they if our statistics hold out they will not fire their boilers again and start burning propane until mid-october that's the power of mega data and statistics it allows you to take a look at a building and make a decision where are you going to spend your money now we all have a very finite budget here we all have to understand where the biggest bang for the buck is with this approach we can then identify how to do that lighting is very easy to implement is very low cost threshold very low disturbance now reinstallating buildings is a very high cost very low return there are some buildings that needed we did a project we electrical energy was reduced by 24 percent in this case their heating was only reduced by 6 percent it's a 25,000 square foot building what they didn't realize is is that of that 25,000 square feet of floor space they have a hole in their building approximately equivalent of 400 square feet they're losing a lot of heat energy efficiency requires data statistics and a very good dose of common sense which brings up an interesting point the term common sense it isn't very common you would think that if you had a hole in your roof which was visible you would probably try to plug it but with data with common sense with statistics we can identify how to approach energy efficiency what the best target is what the financial return is to make this a viable concern where we can with this reduction in energy reduce our dependency on fossil fuels both domestic and foreign we can reduce or have a significant impact on the economy 20 percent of the energy in America that's 36 billion dollars would anyone like that back in their budgets furthermore we can eliminate tremendous amounts of carbon the normal building that we are seeing as a carbon reduction elimination of over a hundred tons in a year that's how we're going to address the global warming that's how we can address our budgets and that's how we can address the burning and use and mining and refining of fossil fuels so I suggest that with common sense and data and economics we can determine where the best money to spend is in energy efficiency how to spend it and we can actually turn things around very very quickly thanks and I think that we've heard from others today and we're going to hear additionally from from other speakers on the panel again how important it is to really monitor and to watch what it is that we're using and what is using what so that because it is that knowledge that gives us unbelievable power in and smarter decision-making and as you said common sense so we're now going to turn to Tom Herron who is the senior manager for communications and marketing with the National Fenestration Rating Council. Well fenestration of course refers to windows doors and skylights and one of the most important things to know about NFRC is that the organization serves the public and not the industry and one of the main things that we do is empower consumers who are in the market for energy efficient windows and they can come to us to get objective unbiased information that they can use to compare products before they actually make a purchase and our work extends across the country and we've even assisted with developing international fenestration ratings programs so under our program windows are independently tested certified and then labeled so when a consumer sees our label on a product that's their assurance that it's going to perform the way it's been advertised to perform our ratings also help the EPA the Environmental Protection Agency of course determine which windows are going to be eligible for its energy star program and we were established back in 1989 and we came about because following the oil embargo of the late 1970s there were some window manufacturers making some outlandish claims about how much energy that their products could actually save and it reached a point where something needed to be done about it and fenestration industry leaders got together and created NFRC and this did a couple of really important things it established standards testing standards that protect consumers and also hold manufacturers accountable for the energy performance claims that they're making in addition to serving consumers NFRC also has a ratings program that helps building energy code officials verify compliance for windows in commercial buildings and this is an enormous area where the U.S. can realize considerable energy savings in fact Lawrence Berkeley National Laboratories estimates that the energy loss through inefficient windows in general residential and commercial amounts to about 50 billion dollars annually so talk about putting money back into your budget and one of the big keys to improving this is increased and greater code enforcement particularly with commercial buildings and this is really widely overlooked across the U.S. today probably fewer than 30 percent of our commercial buildings are using high performance windows and one of the reasons that this has been such an ongoing challenge is that window energy performance often takes a backseat to health and safety issues and another is lack of awareness a lot of people just overlook the vital role that windows really play in contributing to green building and sustainability in fact there's a tug of war going on all the time you know we have this area this building air conditioning but the sun is coming through the window and this is causing the flow of heat to affect how much energy we use day in and day out you know during the winter we're turning on the heat and if our windows are inefficient some of that heat is escaping and similarly during the summer the inefficient windows sun is penetrating and that's causing occupants to spend more money on cooling so why should policymakers care about all this well first of all it's the fifty billion dollar a year problem that we can begin to chip away and reduce that number and another reason is the buildings are using about forty one percent of the total energy in the U.S. and about seventy two percent of the total electricity consumption and in addition to contributing to sustainability policymakers really should address this issue because better performing windows and commercial buildings can actually stimulate the economy and it can do this by reducing operating and maintenance costs increasing building value and improving the productivity of occupants which of course leads to increased profits and better performing windows they can also improve indoor air quality and minimize the strain on the local utility infrastructure and they enhance occupant health and comfort that's also a really big issue in fact many of you are probably aware but there are a lot of studies that show that day lighting has an enormous impact on health and human performance there's research that shows that children in schools learn more effectively recovery times at hospitals are reduced and even retail sales improve when there's better lighting in stores beyond that windows can assist with better ventilation which of course reduces the impact of VOCs volatile organic compounds on building occupants and of course these are fumes that are often given off by carpet aerosol sprays or paints but policymakers really should set an example by requiring code enforcement in federal buildings and assisting and encouraging to educate code officials and in this kind of a strategy would really reinforce the importance of the role that fenestrations playing in our commercial buildings and it would trickle down to local governments and also reinforce the this idea throughout the private sector and these actions would also provide a layer of protection ensuring the buildings are creating a healthier environment in indoor environment and also contributing to energy efficiency at the same time and beyond that if businesses are spending less money for heating and cooling they have more money to spend on improving their businesses which also could include investments in greater employee benefits and the improved energy efficiency the savings that result from that put business owners in a position to put more money back in the pockets of consumers which allows them to spend more money on other goods and services and additionally policies that encourage this kind of code enforcement can create jobs as the codes evolve we're going to need more codes experts building commissioning experts and compliance officers so while many people believe that the transportation industry is actually the biggest consumer of energy in the U.S. it's actually the building industry and that's what makes this issue more important than it's ever been before unless we address this we're never going to be able to realize all the kind of benefits that we came to this conference to talk about and they can begin to pay off as you said immediately and also well into the future thank you great and I must say I certainly wish we weren't using as much energy in this room to cool this room and and thank you for all these great examples and everything and now we're going to turn to our final speaker to learn a little bit more about how we all kind of affect what happens with energy use and for that we're going to turn to Harrison Godfrey who is the manager for national policy and partnerships with opower thanks Carol and thanks to ease ESI for allowing us to come here today and speak on this really I think important topic it's something that we can really find a lot of consensus around so just before I get started also came in with a couple of slides as well after the presentation is done feel free to come up and grab these and ask any questions you might have about opower we're a little bit different in terms of what we do so over the next few minutes I'd like to tell you about opower who are we you know what do we do and where do we work I'll discuss a couple of our sort of core products home energy reports and behavioral energy efficiency I'll talk a bit about both what we're already doing and what we have the potential to do and then I'll wrap up by talking just a little bit about where I think sort of federal policymakers come into play here so who are we in a nutshell opower is a behavioral energy efficiency firm we're actually headquartered right across the river in Arlington Virginia although we also have offices in San Francisco London and Singapore our 500 plus employees work with 93 utilities in 35 states and eight countries around the world in a nutshell we combine the latest research into behavioral science with big data analytics to help utilities better communicate with their customers about how to save energy to really understand what we're all about though you need to go back to our roots so about a decade ago researchers at Arizona State University and Cal State ran an experiment in the San Diego suburbs they identified roughly 1200 households and they randomly assigned them to receive one of four different types of door hangers now the essential message on these door hangers was the same across the board it was turn off your ac and turn on your fan in order to go about saving energy what differed about these door hangers was the reason why so about a quarter of the door hangers said you know turn on you know save energy in order to save money another quarter said save energy in order to help the environment and yet another quarter said save energy in order to be good citizens don't overload the grid turns out none of those messages worked the only message that worked was the one on the fourth door hanger and it said when pulled three out of four of your neighbors turn off their ac and turn on their fan in order to save energy it turns out that keeping up with the johnson's is really what we're all about that insight that there's a normative message and it's much more influential than a financial one than an environmental one than a than one about being a good citizen really lies at the heart of our approach and because i think it's a particular interest where we are today and with this audience we did a little bit of polling to see whether or not there was a partisan breakdown this as well where democrats more receptive to normative messaging than republican this work no there's no difference whatsoever across the board this is actually effective so today we're in eight million homes they're receiving our home energy reports although they're designed to look like they're coming from your utilities we use big data analytics to generate graphs and stats which allow you to compare your household energy consumption with that of similar households we include tips from changing your thermostat set point to recycling your old fridge that encourage greater energy efficiency and increasingly with more data especially from the sort of rapid rollout of smart meters across the country and increasingly advanced analytics we're now able to target tips down to specific consumer classes micro targeting that anybody in politics has heard a lot about while we're using in behavioral energy efficiency as well this allows us to work across the income spectrum to make certain that we're doing energy efficiency not just in you know sort of upper middle-class households but really from low-income users all the way up to sort of the biggest possible energy users from our start in 2008 working with just sort of a handful of utilities we've grown now to span the U.S. and beyond to date along the way we've saved over 3.4 terawatt hours of power and just to put that into context that's enough energy to power the city of Las Vegas for a year and we're only just getting started there are roughly 110 million households in the U.S. our analytics team has sat down and done some quick numbers on this and we estimate that if home energy reports could be cost effectively deployed to 79 million of those households and to be clear because when we throw around in terms of cost effectiveness and politics and elsewhere we often have differing definitions what I mean by cost effectiveness is that those households could save more money on those reports than at cost to develop and deliver them in essence behavioral energy efficiency cost effectively applied can be a cost neutral solution we're all 79 million of these households to receive these reports we could save we estimate about 18 gigawatt hours of power every single year that equates to about 10 million metric tons of carbon dioxide or about 2.2 billion in customer bill savings that's real money back in the pockets of families for gas groceries school supplies you name it or if we were to take all of that money and pull it together we could buy the Seattle Seahawks twice well we continue to make progress around behavioral energy efficiency we're also pursuing new innovations in residential demand response demand response for anybody who isn't already familiar is a process by which utilities dial back customer energy use during peak times think of sort of a hot August day not wholly unlike what we have outside to avoid overloading the grid the traditional residential demand response process requires the utility go and install basically a switch on your AC or your pool pump and that's a really capital and labor intensive process what behavioral demand response BDR as we call it does is utilizes our behavioral insights big data analytics and multi-channel communications to encourage residential customers with smart meters to reduce their energy use during peak hours we debuted BDR with peak time rebates at Baltimore Gas and Electric BGE last summer and just to give you a better sense of here's how it works about 24 hours a day before a peak day or a peak event customers with smart meters are going to receive a message via text via email or robocall and it's going to tell them that tomorrow is going to be a peak day event they should go about reducing their energy use and for every kilowatt hour they save they'll get a buck 25 off their next energy bill the next day they can choose to do so or not nobody's flipping a switch or forcing them to do anything but the following day maybe 24 or 48 hours later they're going to receive a report probably via email that tells them here's how much energy you save relative to your neighbors not unlike our home energy reports just delivered more immediately and about that specific day and here's how much money you saved the response we've seen to date has been very positive over the course of four events last year we delivered about 3.2 million communications to BGE customers 93 percent of participants 93 percent of those who received these reports actually participated in the program which in a utility framework is a tremendous participation rate and that allowed BGE to reduce generation and save capacity they in turn passed those savings of course along to their customers the average customer earned about nine dollars per event this summer in addition to doing this again in Maryland we're also expanding to Michigan and Vermont utilities in Michigan and Vermont as well and we're experimenting to see whether we can actually use sort of the pure behavioral messaging that we've done before without sort of the peak time rebates in order to go about changing behavior we just actually had our first peak events of this year last week so we don't have any results back immediately but I think sort of some of the very early and preliminary evidence seems really encouraging so that all said much of the policy that influences efficiency especially the sort of efficiency that we do happens at the state level but there's definitely a role for federal policy makers to play last month in case anybody in this room didn't already know the EPA released a clean power plan proposal it's an effort to establish carbon pollution standards on existing power plants there are easily as many opinions about the EPA's proposal as there are members of Congress but hopefully leaders on the hill and the administration can agree on two points first as many on this panel have already said energy efficiency is one of the most reliable and cost effective ways to go about mitigating pollution in the clean power plan and EPA outlined a series of building blocks to go about reducing greenhouse gas emissions amongst them energy efficiency and there's a good reason for this the AEC triple A the American Council for an energy efficient economy that's already been mentioned has found that through energy efficiency we could actually go about reducing CO2 emissions by 26 percent below 2012 levels while increasing GDP by 17.2 billion dollars and creating 611,000 new jobs and the second thing we'd really hope we could find consensus around states need the flexibility established under the EPA proposal look America's energy resources are vast and the energy systems that have been created to sort of go about harnessing these are equally diverse the more options that states have from reducing plant heat rates to fuel switching to renewables to efficiency the better they're going to be able to meet EPA targets in a cost effective manner so as we go about debating these provisions let's make certain that we're continuing to keep states and allow them to have that sort of flexibility we think that's a common sense solution that's both going to help grow our business and the economy as a whole so thanks great thank you very very much and I would presume that all of you are submitting comments to EPA on the clean color planet and in terms of sort of thinking about the whole enormous role that energy efficiency plays that each of you has has so co-tently expressed in terms of thinking about the great examples you know that we've heard about from Greg you know in terms of looking at what's happened in different buildings to the dramatic stuff that Opower has seen in terms of people comparing themselves and how powerful that has been so let's open it up for your questions and we'll go from there if we're not all too frozen right any questions okay go to the back here and then we'll come up here a question for Opower on the residential demand response program how do you establish the baseline from which the residential customer gets rewarded for responding to a peak event that's a great question and one that we've worked very carefully to deal with and each of our utility partners obviously we have to work through the regulatory system that's there and the preferences of that utility partner but by and large what we've done is and I'm not an expert by any stretch of the imagination on this particular technical aspect but in essence it's a you do a look back over the course of five five to six prior event days to see what that individual household's behavior would look like you establish an average baseline of what that usage would be and then you measure against that baseline okay and there was a question over here over right over here okay thanks also for Opower is it sounds like although there are you know lots of kilowatt hours to be saved by sort of day to day efficiency it sounds like the real bang for the buck is really peak shaving is that a correct understanding in terms of you know it depends upon whether we're talking about whether we're talking about overall capacity whether we're talking about capacity savings or whether we want to look at sort of a long-term one it really depends upon where you want to look at that debate but we think in terms of capacity savings then yes peak shaving where we're able to start taking power plants up the grid when you know you have your hottest days of the year that seems like a really important area for us and one we continue to look at okay thanks any other questions or comments okay if anybody looked into things like the Japan's program for what is it green biz or low energy biz where the prime minister showed up with a short sleeve shirt and raised the temperature in the room for example of for example we've had comments that this room is cold on a hot day on you know in the summer day and lowering the temperature in the winter that's a behavioral type thing it's certainly we have a vast tip library that we sort of provide people with and so when we think about sort of targeting particular consumers and what might work I don't know that we're going to go quite to that level of specificity but certainly thinking about sort of behavioral alternatives in order to save energy is something broadly we tackle I don't know if that got your question and something you would mentioned earlier when they when you look at building efficiencies you can generally speaking reduce or improve the efficiency of a building just by 20 percent just through behavioral changes lighting is a little over 20 percent to other systems but behaviors are important and that's certainly one of them this is one of those deals I think the generational change occurring in this country is going to take care of when you go to a workplace of people half my age you don't see them dressed like me and I think that's that we're going to actually that's going to actually occur without any type of I guess process other than just the removal of us dinosaurs that wear suits we always go extinct you have a nice suit on though we don't work with behavioral changes we actually just use the data and the existing equipment we don't replace equipment we look at data controls things like that in regards to your question it is well behavior is can be a factor we've been able to reduce the energy consumption between 20 and 50 percent in these buildings while actually improving the comfort so we don't ask people to turn the heat up in the summer and to turn it down in the winter we ask them what the temperature is that they want then using the data and statistics we can actually deliver that using the lowest energy footprint so while it looks great in the press and maybe they have to given how their energy grids are set up and their energy consumption their buildings are set up and I also like to wear short sleeves in the summer you don't actually have to be uncomfortable in your hearing room or your office we can and have very successfully been able to eliminate the electric resistive heaters underneath people's desks the sweaters I once watched a woman who was a computer programmer trying to type with mittens on it was not very successful the what you are feeling in this room for example the uncomfortable conditions of the temperature is actually the misapplication of energy it is they're spending a lot of money cooling this room when they don't need to using the data you can actually identify that and eliminate that again I agree with the behavioral changes except for my teenage son most of that generation does learn how to turn off the lights and take short showers or what I've heard we're working on maybe he's evolving we can hope did anybody else want to add to that okay go ahead so this is a question for Phillips the business model how is the business model going to work when you sell the last LED fixture and if we don't get into the lighting as a service business we won't be in business actually we'll be in the healthcare and we'll still be selling erasers and sonic care toothbrushes but we won't be in the lighting business nor will anyone else when lighting becomes a permanent part of a building and when lighting becomes something that lasts 20 years whether it's outdoor or whether it's the road lights on the highway system or the lights in a building you better be providing a total range of services the controls necessary and the you know the guarantees the upgrades our process also provides that as we improve the efficacy of the efficiency essentially of LEDs we will replace those because the more energy we save the more money we make so our profit model will be driven by driving down energy use in lighting and that's how we'll make money or we won't be in lighting sort of so interesting I'll never forget going through well actually it was when the Boeing Dreamliner first came out but in terms of looking at what they were doing with LEDs in the plane that it was incredible to me to learn both in terms of the energy savings there but also the amount of manpower savings because they said that they were having to replace all of those little passenger lights above your seat those were having to be replaced every week and by putting in LEDs it was going to just so revolutionize the whole situation so I think in terms of what you all have been saying about the enormous amount of savings how that it compounds and affects so many things and in terms of thinking about the mechanics the whole role of data that you've all been talking about and behavior when you put it all together it's simply astounding what we could do on the road lights for instance we've all annoyed when they're replacing a road light on the road we're going down and they've closed a line if you can imagine that you can put a light in that last 10 times to 20 times as long as that one unless you're in the business of unless you have the contract to replace those lots that's a really good deal and it's going to really it's going to change you know the maintenance cost is probably the biggest savings from the transition to LED yeah and several of you will also mentioned in terms of improvement of overall quality and comfort and I would also add public safety because when you think of also in terms of all of those in terms of how much of our time we spend inside buildings and then I also have been struck in terms of thinking about the whole public safety aspect of for example changing lighting and parking garages it changes everything when you put in LEDs there so I want to thank you all very very much for being here thank you to another wonderful panel and we really really appreciate everybody being part of this whole expo and forum today and thank you all for being here and hopefully you've all learned a lot met a lot of wonderful new people and thank you very very much