 Good morning, everyone. My name is Carol Werner. I'm the executive director of the Environmental and Energy Study Institute. Very, very happy to welcome you here today for this briefing entitled Energy Efficiency, a Win-Win, because that is truly what it is all about. And we are very glad that this briefing is also being held in cooperation with the House Renewable Energy and Energy Efficiency Caucus. We have a special treat for this briefing today in that we are going to kick it off hearing from two very important leading voices in the House, talking about one of their favorite topics, as well as one of all of ours, in terms of energy efficiency, what it really means, what we can accomplish, why we should be excited and committed and dedicated to truly making it a reality to really bring this country to what it really can be. And Congressman Peter Welch and Congressman Corey Gardner have been leaders in the House. They have been very, very important voices in terms of galvanizing action in terms of ensuring that this is a topic that receives attention in providing bipartisan leadership in congressional caucuses focused on energy and energy savings performance contracts, and all of which really help us become a more efficient economy, a more efficient society, which is good for all of us. So I'd now like to turn to Congressman Gardner and Welch to see which one is going to be the dog and which one is going to be the pony in our little dog and pony show. Well, I'd say good morning. I guess we've got 15 minutes of morning left, so how's everybody doing? I'm Corey Gardner from the great state of Colorado. How many of you vacationed in Colorado? Just out of curiosity. You've probably never been to my district. It's on the east side of the state and not the west side. So I have the Great Plains, the High Plains area of Colorado, so it's north, south and east of Denver. And it's a great district that represents some tremendous energy opportunities for this country, particularly in areas of not only traditional energy, but renewable as well. It's a district that has home-to-wind energy manufacturing, turbine manufacturing, solar manufacturing, renewable fuels, biofuels, and it's exciting to be here to talk about energy efficiency. Because nothing says fun like energy savings performance contracts, right? It just rolls off the tongue. And then you can get even to more fun and talk about USCOs, and that's a fun thing to talk about with utility savings contracts as well. But it's been an honor to work with Peter Welch from Vermont as we talk about ways to really get excited about what we can do in energy efficiency. You know, I know it's hard to believe, but we've had a rough time here in Washington the past couple of months. And it's not gained that much attention, some of the things that have happened. Nobody's talked about it, I'm just kidding. But one of the things that Peter and I are so excited about when it comes to energy efficiency is the ability to bring Republicans and Democrats and people of all kinds across this country together to talk about something that we know is good for the nation's taxpayers, for our environment, for our economy. It is a situation that we find ourselves in where we can bring people around the country together through good policy to talk about energy efficiency and energy savings. And Peter and I together have started a caucus here in Congress called the Energy Performance Caucus, I forget the actual name of the caucus, but it's focused on energy savings performance contracts where we have a number of members on both sides of the aisle that are simply focused on doing just that. How can we take advantage of performance contracting to drive energy savings in government buildings, we know the government's the largest user of energy in this country, to drive those savings, to save taxpayers money, to create private sector jobs and end up with something that's good for the environment. That's a pretty doggone good outcome in a city that sometimes can't even figure out how to lock the doors at night. And so we've got to figure out how to make Washington function when you have good policies that people on both sides of the aisle can work on together. And I think this is a prime example and we ought to start here. We ought to figure out how to do just that. This past week we led a letter where we had 117 of our colleagues sign on to it to encourage the administration to continue the good work that they are doing when it comes to energy efficiency, energy savings and performance contracts. And 117 colleagues from both sides of the aisle and when we can put Fred Upton and Henry Waxman on the same letter together, we are making things happening. So it's an exciting opportunity that we have and tomorrow we'll be introducing a bill on the utility side of energy savings. Right now there's some restrictions on utilities who can only enter into a performance contract for 10 years. And we'll be introducing a bill tomorrow that allows that to go up to 25 years to take greater advantage of how we can make this energy efficiency program truly work. Now I haven't told Congressman Welch this yet, but as a member of Congress from Colorado I've really come up with another great energy savings idea. We know the Broncos are going to go to the Super Bowl so we'll just cut the season short here. Now save that energy and play the Super Bowl right now so that we can just go ahead and go to the game. So that's the bill that we'll be, and I'm kidding, but it is exciting to be here with you and exciting for what you're doing. I hope that you understand how important your role is in this debate. As you reach out to your member of Congress, as you go to their offices to meet with a member of their staff, to engage them and talk about how this is something that everybody agrees to. That we are stewards of our resources, that when we use less of something it's good because we're conservationists and we can actually promote economic development by making sure we're harnessing private sector innovation. So with that in mind, as you go forward today, be excited about what you're doing because I certainly am. I know Peter is, but I appreciate the passion that you bring and the commitment that you bring to this cause as we work for ways to make Washington function in a way that actually benefits the American people. So with that I'll turn it over to Peter Welch from The Great State of Vermont. Thank you. Corey, thank you. You know, he started out by asking you a question, how many people vacation in Colorado, and I'm going to ask you how many, like, vacation in a real vacation state. You know, we've been working at this a long time, and what's really pleasing in a way is that Corey just gave my speech, and he gave your speech, and he spoke for your experience. I mean, we know a couple of things. Number one, the best way to produce energy is to save it. Any kilowatt that we can save, whether it's produced by solar or geothermal or coal or oil is a kilowatt that is, do we keep in the local economy? And what you guys know too is that we can accomplish this in a way that builds our economy. I mean, if you're going to be energy independent, and if you want to reduce carbon emissions, 40% of the goals can be achieved through energy efficiency. And energy efficiency means you have to have good engineers, you have to have good mechanics, you have to have good tradespeople, good plumbers. You've got to have good entrepreneurs that can figure out about financing and the allocation of resources. All of that is homegrown. It's all local. It's all good. I mean, Corey and I have been getting such support among our colleagues, because when we talk to them about this, and then some of you who have businesses in their districts go talk to them, and they see, hey, there's folks that are working, they're getting jobs done, homeowners who save money, business owners who save money, that's a good thing. So just more, you've got to keep it up, and it really works. But the other thing, and you touched on it, Corey, you know, Congress is a mess. And it is so important that we get the institution of Congress, which was created by our founders, as an institution that is to serve the people of Colorado, of Vermont, of your district and mine, to get it to function. And that's to make decisions that allow folks back home who are doing hard work and want to do good things to be able better to do their job. And we have debates about how to do it, what's the best policy, but there isn't any debate about our obligation to you to create opportunities that you can be successful in your community. You're doing the work. And what is really kind of inspiring to me is that while we've been having our hard times here in Congress, you've been going about your business, trying to keep it going. And all of us have had to depend on leadership at the local and the state level as the glue that keeps us together. But what Corey and I see in our efforts with you is that if we can be successful in getting bipartisan cooperation to do practical, sensible things in energy efficiency, it's a stepping stone to making Congress work even better on other issues that are more contentious. It's about trust building. It's about seeing that we can emphasize where we have common ground and decide, hey, let's take a few steps forward on the things we agree on. And we'll hold an abeyance to things that we disagree on. Corey and I disagree on a lot of things. But you know what? We understand that we agree on this. I mean, I'm not kidding. Everything he said, he said better than I could say. But I endorse every word of what he said. So this is really important. You've been providing leadership. Our responsibility to you is to give you policies that you can A, count on, and then B, double down and intensify the efforts you're making back in your communities. And our responsibilities to one another, Corey to me and me to Corey, is that we as members of Congress who represent all of America find a way to emphasize where we agree and where we agree make concrete steps forward so that this can be a functional institution, a stronger country and a stronger economy. So thank you so much for what you're doing. And Corey and I are very excited about the prospects of this legislation and the other things we're working on moving ahead in this Congress. Thank you. You got to tell them why we started working together. Oh yeah. Corey, this is the thing we do have in common. We're both cheap. And we like saving money. So let us save more money. Thanks a lot. This is your chance because we want to get behind this kind of leadership and really push them, right? Okay. Do you want to use the microphone? I'm always going to put a damper on something. I grew up in Denver as a matter of fact. But I don't want to put a damper on things. What you're saying certainly makes a lot of sense. But when you tell us to get to our member of Congress and tell them how we feel about it, I ought to say that I'm now in retirement for 21 years without any voting representation in Congress because I live in Washington, D.C. There are 600,000 of us here, which is a whale of a lot more than in Washington. About the same number is in Alaska, North Dakota and Vermont. We just heard you. Yep, we did. Thank you. Okay, anything? You mentioned the letter that was sent out. Any expectations or progress? What should be expected from the administration? I think the plan is to make a decision on extending it in the next couple of months. By the end of December, we should have an idea of what they're going to do. I feel very confident that they will. Our experience has been to not just say, hey, how are we doing with what we have, but let's figure out how to even do more and do better. Peter did a great job leading some meetings this past year with the White House. He invited the White House myself to his office and you want to talk about that, but I feel very good about it. The White House supports this. We're giving congressional support for it. We want to have even legislation expanded more. We have an issue that we've got to resolve on scoring with OMB or the CBO. There are problems that come up along the way and we're working on them. The fact that you've got 117 members that really span the ideological spectrum in Congress. There's a desire on the part of the Republican leadership you saw with Mr. Canter the other day when he opened up the agenda and said, what are some of the constructive things that we can work on so that we're not just talking about health care all the time. And I'm sensing on your side and on our side, a real desire on the part of members to find some common ground where we can move ahead. And we've laid the foundation when it comes to energy efficiency. I think everybody in the room here is pro-energy efficiency. In terms of Congress, do you hear much of the way of con contentions on energy efficiency? And if so, what are they and what can we do as a group to kind of mute those contentions? Well, I think that a couple of years ago there was some apprehension on the part of some of the energy sectors that those who advocated for energy efficiency were using it as kind of a stocking horse to oppose a particular energy production source that they favored. And I think we've gotten past that. You know, there's a different point of view about what energy and how to get energy and what are the better forms of energy. But I think there's been now everyone from Joe Barton who's a very solid carbon guy to Peter Welch who probably is much more associated with renewables saying, hey, efficiency can be evaluated on its own terms and it's not coming down on one energy sector or the other. That's my sense. And you've got so much experience with so many different forms of energy in Colorado. Right. And I think one of the challenges that I'd add to that is you do have some pushback because people automatically assume you're talking about a mandate or a standard that they may not want to be for or have some concern about. But what we're talking about is a way that you can do it with the private sector, that you're doing it with private sector innovation and know-how and just doing it through the target of the private sector. So, you know, if there's pushback, a lot of times we can work through that simply by explaining what we are trying to do. And I, for one, have been going back to my days in the state legislature as a Republican saying, hey, just because we talk about clean energy or renewable energy, don't let the hair on the back of your neck stand up every time we say that. There's ways to make this work that we can all agree to and make a brighter future of energy because of it. So I think that's probably, we may have to cut it off there, but I want to thank everybody for Peter and I coming here. Thank you very, very much. Thank you very, very much Congressman Welch and Congressman Gardner. I really, really appreciate your being here and also the leadership. And so I think so much is now also up to us in terms of really understanding what efficiency is truly all about, how it manifests itself in so many different ways, how do we best explain it, how do we help figure out problems that are being raised just like you heard in terms of this legislative proposal that will be introduced. And there are several bipartisan bills that are currently pending action here in the House as well as in the Senate and I think that all of that is encouraging. I often think of energy efficiency since there are so many opportunities for us to save so much more BTUs in every sector of the economy that I often think about it as kind of like the Hallmark card. It's the gift that keeps on giving because once we save that, we keep saving it over and over again. Which I think is such an important thing for us to be able to convey as we help really look at it as its own energy resource. A very, very important and powerful one that we know has made a huge difference over the last several decades in terms of really reducing the amount of energy over all that is used in our economy. And in terms of thinking about how does this make us more competitive, what more can we do, what are the stories, what are the examples that we should be looking to, whether they come from the state, the local level, internationally, etc. And that's why I think in terms of thinking about what we're going to hear from our panel today, it'll be important to listen to the kind of examples and experiences that they have had and how we can then act upon those. And so I'm very pleased to introduce our first speaker on our panel, Ross Eisenberg, who is the Vice President for Energy and Resources Policy with the National Association of Manufacturers. And of course, NAM is the largest industrial trade organization in the United States, representing over 13,000 small, medium, and large manufacturers across all of our 50 states. And these are all very, very important aspects of how our economy runs. And so I am very pleased that we have Ross here today to talk to us about what is happening in terms of manufacturing, what we need to do in terms of making sure that we help bolster that and the role that it is currently playing in our economy, Ross. Thanks very much. Thank you for the introduction. Thanks for having me here. I'm Ross Eisenberg. I'm with the National Association of Manufacturers. We are the trade association representing the manufacturing sector at large. And that is everybody from, we've got 12,000 members, that's everybody from Fortune 5 companies to the three-person machine shop in Skokie, Illinois. And we operate as a democracy, so they all have a voice, they all have an equal voice within our organization. And we bring that perspective to Washington. I mean, our job is to essentially advocate in Washington, advocate with the federal government as to what matters for manufacturing. And that's why I'm glad to be here today. I mean, this matters to manufacturing. We just a little bit of background about the way we view the world. We believe we're on the cusp of a manufacturing resurgence. We've had a couple tough years there, but manufacturing is back. We're stronger than ever and we think with the right policies we can be even better. So our goals as an organization are these four right here up on the screen. Number one is that the United States will be the best place in the world to manufacture and it'll attract foreign direct investment. Number two will be the world's leading innovators and that's something that matters significantly with respect to energy efficiency. Number three, we will expand access to global markets to enable manufacturers to reach the 95% of consumers who live outside of our borders. And goal four, we will have access to the workforce that the 21st century economy requires. So that is what colors everything that we do. And that colors, again, is a big reason why we're for energy efficiency. Now we like to say, and we've got a study that supports this, we like to say that it's 20% more expensive to manufacture here relative to our nine largest trading partners. And that's because of a whole mess of things that go on here that make it difficult to manufacture. Policies on torts, on trade, on taxes, just make it more expensive to manufacture here. And that puts us at a significant disadvantage. Now, baked into that number, we actually have a slight competitive advantage relative to those same countries vis-a-vis energy. And it's kind of easy to see why, right? I mean, we have everything and we have a ton of everything. We've got the Saudi Arabia of coal. We're quickly becoming the Saudi Arabia of oil and gas. We have 20% of our energy fleet coming from 100 nuclear power plants. We've got renewables growing by the day, by the hour, I mean, taking up an increasingly large market share. And we've got energy efficiency. We are becoming significantly more efficient even as the economy grows. I think just recently the manufacturing sector is another 3% as the economy grows. So, you know, we think that with the right policies here in Washington, we can widen that gap. We can make it even more attractive for manufacturers to come here because of this advantage we have from energy. We like to say that we're for an all-the-above policy. And we really mean all of the above. We want all of it. You know, you can't eliminate everything. It all matters. I would say weekly, maybe monthly argument with my grammar people at the office when I write, we want all of the above and I list it all out and I add energy efficiency at the end. They say, well, energy efficiency isn't a source of energy. They say, yes it is. This is the argument we're all having here. But we view it as part of the package, a very robust and important part of the package. With the right policies in place, we can get there. Manufacturing has the highest multiplier effect of any sector of the economy. So investments in manufacturing, especially in energy efficiency, will multiply across the economy. So in addition to saving the energy, you will create manufacturing multiplier type jobs, creating jobs, economic growth in other sectors. Frankly, manufacturing makes America strong. Now, getting into efficiency specifically, this is literally cut and pasted from our policy statement. They're available online. We've got about 25 other paragraphs on this. But these are the high points. You know, we support energy efficiency policies. These were made, we redo them every four years. They are made exclusively by the members. A few of them are in the room. I mean, this is what our members want. This is where we are in energy efficiency. So if I can read a tiny little print. We are committed to reducing energy intensity and producing more energy efficient consumer products. And the last two paragraphs are basically, it matters in the industrial space too. So we make the things that make us more efficient as manufacturers. We also need efficiency to help keep ourselves competitive as manufacturers. And in the industrial sector, that matters a lot. We as manufacturers use about a third of the energy produced in the United States. A number of the real energy intensives and iron and steel and chemicals and pulp and paper and places and sectors like that. Energy is generally their largest expense. So the more we can do to keep those costs down, both through increasing our sources of energy, but also making efforts to conserve it and be more efficient, matters significantly. So going into the past year, we saw the same opening that everybody else saw, right? We said, we've got a Congress that's relatively gridlocked and we need to find an opening to do something important on energy. And this was where we arrived as the place that really we thought could be nonpartisan enough and could get agreement across the board that we could actually make some noise and maybe get Congress talking and actually pass something that would help. And so I convene our Energy Efficiency Task Force. We spent a couple months drafting the principles on the left as really a sort of a picture as to, and these are going to be posted on the ESI website, but it was a picture into sort of what we thought would make a real big difference for manufacturers, but that could actually be done in this Congress. And that are essentially noncontroversial, nonpartisan enough that you could get 60, 70, 80 votes in the Senate for it. You could get a critical mass of Republicans and Democrats in the House on board for these measures. And we've talked to leadership on both sides. We've had them up on the Hill since February or March whenever we finished these things. And a lot of these concepts have made it into legislation. Some good examples. So the SAVE Act, which deals with residential sector energy efficiency. You know, that's, I don't want to say it's in here. SAVE Task Force, or no, it's in there. You know, things, you know, just basically consumer transparency type issues, things that just make a lot of sense. We are up here lobbying day in, day out to make sure that they happen. The building codes language, things like that that made an issue in Portman, these are also things that the NAM is for the manufacturers writ larger for. You know, and this is not just a couple of companies here and there. The, you know, when I put this out to my members, hey, should we do something on energy efficiency? It was a resounding yes. And it was a resounding yes from companies across the manufacturing space. Companies that you never really thought would have an opinion on energy efficiency said yes. You know, and that's because they're all kind of doing it. The stories are, are, are significant. You know, I just wrote down a couple that I have, or my heroine, I sort of write it down so I can share some of them with you. So Rockwell Automation is one of my members. They're a Fortune 500 company. They're a board member of the NAM. They recently helped steelcase the world's largest furniture manufacturer reduce energy consumption by 15%, providing significant energy cost savings across the organization, and reducing the overall carbon footprint by 25% by replacing the outdated boiler control systems implementing real time tracking and monitoring system and enabling them to make the necessary changes to their efficiency improvements. Baldor Electric Company. They're an Arkansas manufacturer. They make a wide range of motors and drive products, and they can help save energy and reduce downtime in industrial and commercial locations. They had one application where an old motor in a gearbox was removed and they put a new one in there. It saved energy by about 70%. I mean, this made a big difference to their clients' business. Orion Energy Systems. They're a Wisconsin manufacturer. They specialize in energy efficient lighting, energy management control, solar PV, and other technologies. They do business with 148 of the Fortune 500, and they have tally total savings of more than 2 billion for them since 2001. Schneider Electric. They have stories galore. This is what they do. I mean, this is what they do. They are a perfect example of what manufacturers do and why we care about it. So, in terms of what we are trying to do between now and, well, the end of next year, but certainly this Congress and others, we want to see Shaheen Portman done. We strongly support this bill. My CEO stood next to the senators when they introduced it. We are doing everything in our power within the scope of the NAM's abilities to try to get members to move this thing through the Senate and get it to the floor of the house and eventually to the president's desk. We support it strongly. We see this bill as a very smart, bipartisan, sensible way to do, frankly, exactly what Congressman Welch said, which is to make some serious gains in the efficiency space for industrials and for residential sector and for commercial spaces, but in addition to get Congress talking again, get them talking about energy and use it as a building block to a lot of other meaningful things. I hear, I would say daily, weekly from members, when's this thing going to get going? Will it get past the gridlock? We're doing what we can. We really, really, really, and I cannot underscore this enough, want to see this bill done. It's a humongous priority for us. It's a top priority for us as an organization. In addition, we are strongly supportive of ESPCs and UESCs, the performance contracting initiatives that Congressman Gardner and Welch were talking about. This is a map that our members put together of where the components of an ESPC are manufactured. And you can see it's just about everywhere, right? I mean, this is something that goes, you know, really kind of spans the country. And what's really interesting about this is it's not just the big guys. So much of this is being done by small and medium-sized manufacturers, really sort of the backbone of our country. It is the small and medium-sized manufacturers that are making a lot of this really interesting, really unique and really advanced equipment that is going into these ESPCs and these UESCs. So we are, this is something that we have been pushing significantly, both in the legislative space and in the executive space. The $2 billion program that the federal government has in place to the goal to get $2 billion of the ESPCs and UESCs done, they're almost finished with that. So that will be the end of this year. We want to see it re-upped. We want to see it five more years, $5 billion. Why not? These, you know, over time ESPCs and UESCs seem to be more or less driven by goals. If the goal is not there, they don't get done. We've seen tremendous, tremendous improvement out of the federal government to utilize what is essentially a common-sense sort of mandate-free, you know, mandate-free federal grant-free program. You're basically leveraging the public, the private sector to save energy and as you can see create a ton of jobs across the economy. So we are all in on this as well and we're calling on the administration to re-up these for five years and $5 billion. Heck, it would be great if they could do it indefinitely. So that in a nutshell is our presentation. I'm happy to talk. I guess we're going to do questions after the panel. Looking forward to any questions we have, any discussion we can have. Just know that manufacturers are here to lobby for efficiency to promote efficiency across Washington and across the country. You know, we believe that our elected leaders need to choose policies from a better country, a better place to invest, a better place to innovate, and a better place from which to export. Energy efficiency is definitely one of these policies. So I'm very pleased and honored to be with you guys today. Let's get that bill done. Thanks. Thank you, Ross. Thanks so much, Ross. I always love to hear the specific examples of how much savings people are able to get which just so improves their bottom line and actually creates more jobs in terms of the companies that are helping other companies find these savings. And in so many cases, it really does help companies become world-class competitors. And so the more that we understand all of this and can see the potential for these terrific kinds of stories, I think, hopefully it will help really bring people together to realize these gains. And so, as Ross said, Schneider Electric is a perfect example of a company that is making huge strides and for which energy efficiency is a major priority. And in 2006, energy efficiency was established as a core business initiative for Schneider Electric. And our speaker, Paul Hamilton, who had been with the company since 1998, was tapped to lead this whole energy efficiency company program. And in so doing, he has represented Schneider Electric across the country globally because of the whole scope of Schneider Electric's business. And we are so glad to hear from Paul today, who is the senior VP for energy efficiency with Schneider Electric. Paul. Thank you. So today what I'd like to do is take what Ross did there and put a little more perspective on it and talk about some very specific examples to kind of drive down a little more and give you how that worked. How did you work this thing? You guys do everything. You can't figure out how to use a question. There we go. So first off, a little bit about Schneider. We are now about a $30 billion company. That's in euros up there. 40% of our business is in new economies. There are 140,000 people. We're in about 130 countries around the world. Basically, our business is energy management, all aspects, and building, industry, data centers, IT, residential. As you can see, it's pretty distributed across the globe where our business is. But that just gives you a little bit about the scope. In the U.S., we're about 7 billion, just over 20,000 people and 50 factories in the U.S. So what I want to talk about a little bit is about the opportunity. Ross kind of talked about some very specific examples, but I want to talk about the Schneider company program that we embarked on in 2004, saying that because we're in the business, that we have to walk the talk and do exactly what we're asking our customers to do. First off, the energy efficiency, this is not something new. You can see from the ACEEEE reports, this really came from Steve Leitner, that from 1970 to 2008, 70% of our energy gains came from efficiency. In other words, we avoided the need to build new power plants because of engagement and efficiency. And yet you say, well, that's a lot, but they would also say that still there's about 25% to 30% available in the market today. So even though we've gained a lot, there's still another 30% available in the market today that we have not tapped. So there's a huge way to go, and as Ross said, it is a large, untapped energy source. The possibility, so again, I started out by saying this is the Schneider Electric program. It's called Schneider Energy Actions. We started this in 2005, and it started out with 18 US sites. We expanded to 51 sites in 2009. We joined the Better Buildings Initiative at the DOE, which commits you to 2.5% per year, which was easy for us to join because our internal goal is 4% per year. So Schneider Electric set an internal goal 4% per year on our sites. What happened with that? Every plant had to have an energy leader. There was an energy action plan at every facility. Every plant had to install metering to raise the awareness of what the energy was at that facility, and then there were quarterly reviews and annual assessments of those plants. So basically make a commitment, put a plan in place to execute to that commitment. And that's a lot about what energy efficiency is. As part of that, we developed what we call a standard practice manual, which we published in the US, and now is represented globally in Schneider. So there's a standard practice that says, here's what you do as a plant manager, here's how you behave, here's the kind of projects you see and what's required. Here's the results. You can see that from 2005 to 2012, we have reduced our energy consumption by 30%. 30% across the 51 plants that we have engaged here. That's $30 million in cost savings, 500 million kilowatts, and 260,000 tons of CO2 avoided. So you can see that energy efficiency has a huge impact on the bottom line. Now that's all in the face. That's not Schneider shrinking the business. We grew our business substantially during that time period. So a lot of times they say, oh, you shrink the business, you save energy. That's true, but that's not what the case is here. Down below you can see just some actual, this was from some actual savings across the years, across both electric and gas, and then the dollar savings that represented. As part of the DOE program, we also participated in one plant where we made a commitment to a deep retrofit and deep energy savings. This was our Smyrna, Tennessee, which is just outside Nashville. Again, this is a plant that has 50% growth from when we started. It's a, we make substation, assembled equipment there, so it's electric substations where we custom assemble them. And here you can see that the savings were, I can't read the numbers now. I can't read them on my sheet, and I can't see them there. 60% savings and we've gone from about 7 megawatts to 3 megawatts. On the bottom here, what's interesting, you see that we, this is a combination of both energy efficiency and we installed a 1 megawatt solar farm that we, a dual voltage solar farm that we share with TVA, that we build it and then we sell back to TVA and we use the energy ourselves. So the green represents the savings from the renewables. The green represents the savings from the energy efficiency measures and the blue is the baseline. And the hard line is what would have actually been spent had we not, you know, had we not done anything. So this is just a good example of the kind of achievement that's available and what's out there. Now, the next thing is kind of what was available. There's a big question about when you do these projects, what are they, what's there. The top is kind of from the 50 plants, the type of projects, the big projects we did. You can see building management systems was a large one. This is just the management of all the facility, all the controls in the system. Lighting projects, energy efficiency compressors, variable speed drives. Speed drives are simply, you know, putting some controls on a motor so they don't start. The analogy I like to use, it's the difference between the way I drive a car and press on the gas pedal when I'm having to pay for the gas and the way my 17 year old drives the gas when he doesn't have to pay for the gas. So a drive is how I drive it. Normally, if you don't have a drive, you just turn the motor on, it goes hard until it hits the speed and that's waste energy. So that's all a drive is when you hear that. Is that okay, Robert? Occupancy sensors, compressed air, leak detection, power factor, very simple projects and the other thing you see on the bottom here, this is actually a list of things from an actual project. So very specific but chilled water temperature reset, install, clogged V-belts, you know, and what you see here is we spent basically about, to save $50,000, we spent $50,000. These things were about one year payment. A lot of simple things, a lot of this is standard ongoing maintenance in the plant to make sure the plant is running properly. So this is just now some generic things to give you an idea and I want to, this is really a lot of times when you hear energy efficiency you don't know exactly what the specifics are but small building management system you see there's a PC, there's a lot of control components depending on what you're trying to control. There's boxes and devices that are manufactured at all those sites that Ross showed you around the world around the U.S. Monitoring and control, this type of system can save up to 20% in an energy and in a building. This is compressor, so when you go into a building these compressors actually compress the fluid that helps you chill the building and run the air conditioning and again simply putting drives and controls but what you see here what I want to show you with the drive is there's a drive, that big grey box that's just a computer control device and then there's some wires and some contactors, there's a panel so somebody has to put all that together so basically we sell the drive we manufacture the drive in our facility that ships to somebody else they have to put it in a panel then you have all the contactor people the wiring people, all these people all the supply chain that makes all this stuff how are you such data centers so we do a lot of data centers and a lot of this is simply reorienting the data centers so that you you're cooling one side and pulling it's a hot isle cool isle so rather than just cooling the building you cool the isles you push the hot air into one isle and you pump it out the building just to make it more efficient again a lot of infrastructure some cooling, some power a lot of local integration industrial logistics we do a lot of logistics things for Wal-Mart, Target, UPS conveyor systems, a lot of motors again drives, control systems turning the lights out in buildings when they're not using them so a huge opportunity here up to 50% energy savings we've seen in some of these sites and we also talked about ESCO so this is an ESPC that we've done ESPCs basically we go in and we identify the energy savings we guarantee that savings for 20 years and we use that guarantee as a way to finance the capital project up front so there's a utility bill we find the savings we use that savings to pay the bank for a financed loan we give some of the savings back to the user and at the end of after the payment is made the user gets all those savings the Virginia Community College System you can see it's $315 buildings it was a $60 million project over four years what's in there water, retrofit, thermal storage, lighting this is all a contractor project at a local facility using local people so exactly where are the jobs and where do they come from so this gives you an example of I don't think people understand when you hear a factory and a factory builds something and that's good for energy here's kind of what the business really looks like so you have at the bottom a bunch of factories that are making stuff whether it's a drive or a lug nut or a piece of wire and that stuff is the manufacturers but most of that stuff goes to a distributor which are regional these are big places that warehouse all this stuff then they go from there to panel builders to build you a panel example I said these are typically small small job shops, electricians from there you have contractors, integrators and OEMs who make this equipment from there it goes to the main contractor who might be managing the Virginia Hospital Center the Virginia Community College Center and then to end users so there's a huge food chain of people that are involved in these projects so when Ross says manufacturer you have to expand that as it goes up and the closer you get to the end user the more local that becomes because those jobs cannot be outsourced they're local people doing local work so I wanted to give you a sense that when you hear about all this in factories it's more than just the factory and lastly just some perspectives where is the future, where do we see the future of energy efficiency what's going to be required to move this forward the big thing about energy efficiency is people you know one is it's people who are trained, people who have the right skills to do things, the right knowledge to be aware, it's management and leadership as we told you with the plant, every plant had to have a manager and a plan that's key, I mean because energy efficiency is a dynamic thing that you have to manage on a continuous basis processes like 5001, SEP these are COE processes being driven right now visibility, energy is invisible you have to give it visibility, this requires metering performance, reporting tools, better ways to validate and measure energy is key the utilities still have a big problem especially with complex systems validating that the savings are actually there technology data enabling, everything has to be data enabled that allows you to collect the information, report it, make it visible and then challenge the savings so inhibitors still low awareness and inadequate skills we see as a big part of the problem limited incentives for designers, there's still a lot of mixed incentives where building owners don't necessarily incentivize to invest energy efficiency because they're short term focused comparative usage, benchmarking basically system solution integration measurement and verification we talked about financing incentive misalignment, we still have to align incentives so all aspects of the supply chain are incentivized to invest in energy efficiency regulation implementing all the codes and policies that are out there, there's a lot of states that are still not running at the current code level or certainly don't enforce the current code level so there's still a lot of opportunity just in implementing a lot of the things that were out there and lastly what's needed, again this is really just addressing the last list, some policy intervention around where the misplaced incentives are where we have distorted regulations around utility engagement distributed generation, demand response unpriced cost of goods this is the cost of services education, environmental cost that are not cost into the hard cost of energy savings let's look at things that exist today where they can be improved state programs that are good a lot of states have great programs a lot of states have nothing utility, decoupling, energy efficiency, resource standards equipment standards, where can these be improved energy star is a great one that's out there how do we continue to drive that make it better so what we need to do today is putting policy in the right place not all policies at the federal level things need to be implemented where they can be most impactful in control whether it's local, state or federal so that's it thank you very much so Paul it sounds like we still have a lot of work to do in terms of problem solving a lot of these important areas that Paul illustrated in terms of thinking about first of all all of the things that have been unlocked through improvements in resource efficiency but still a lot of hurdles that we need to problem solve and that would be really good for all of us working together to come together and do that we're not going to hear from Maria Kingery who is the CEO and co-founder of Southern Energy Management she and her husband founded this firm in 2001 it draws upon her many years of experience in sales, marketing and business development so she's bringing these skills to bear in terms of looking at business development through sustainability and sound energy practices located in North Carolina she is very very active in many state sustainable energy organizations and alliances so we're anxious to hear from you Maria alright thank you Carol and I have to say I know Paul and Ross you guys do this all the time I don't do this very often and so you know it's really interesting and I'm honored to be here to talk about energy efficiency especially within the context you know from a small business owner but also as a citizen I mean the possibility that this could be something that could generate bipartisan support and that we could make some real progress is just really exciting so I'm really excited to be here I am mainly going to talk about my experience and the experience of our customers so we are we also do rooftop solar so we do energy efficiency and solar work founded in 2001 today we're a team very small company 60 team members we serve homeowners builders developers real estate developers and business owners in the southeast and there are people who love what they do so what do we do so we provide building energy efficiency and renewable energy solutions to residential and commercial markets we do residential PV and solar water heating we do integrated planning for both homeowners and builders and developers somebody comes to us and says I want to build a more energy efficient home I want to build a more energy efficient neighborhood more sustainable we do a lot of green building consulting we can do all of those things we do for end users for homeowners at this time we do residential solar and we also do some diagnostics and some hers ratings their hers ratings is home energy rating system we talk about that a little bit and then commercial we do solar work we're currently not heavily involved except lighting we're very excited about the opportunity to help combine lighting and renewables to really drive those cost savings down so now I put a slide in here how we do it so we aspire to improve the way people make and use energy that's what gets us up in the morning it's gotten us up in the morning for the last 12 years and I work with my husband he's my business partner some days it's more challenging than others and just on a personal note the reason we started this company we both came out of a company called Burt's Bees and we saw it just enjoyed tremendous growth and we saw what an entrepreneur could do Roxanne, Quimby and Burt Chavitz when they started their company natural personal care products did not exist now it's a multi-billion dollar worldwide industry so we were inspired by that and we said, well hey what can we do and we actually had a child on the way September 11th occurred and we recognized that energy was a big challenge and what could we do so this really is it's a labor of love we are very serious about what it is that we're doing and being the best that we're doing but we're serious about transforming the way people make and use energy and we want to do it as a business in a way that also benefits our stakeholders our team members we believe in all of those things and we see energy efficiency as a tremendous opportunity to create these wins so we've been a national energy star partner of the year for seven years in a row that is something that our team is really proud of we have really enjoyed being the partnership with the energy star program and I like to think it says there we have won a market transformation award when we started our business in 2000 and 2001 there were very very little market penetration and now we're at about 35% so we're really proud of that work with others so in our business we talk about walk jog run and have for many many years is a way to really connect with home builders primarily and also homeowners about what do we do so everybody wants to live in a more energy efficient home everybody wants to save money every month but how do we do it and so from our we talk with folks about you start with energy efficiency that is the foundation and then we add on more green building and if you want to progress and you want then eventually running is taking on more renewables and really driving your dependence on traditional fuels down this I also think is a really good metaphor for what we're looking to accomplish here we're talking about walking let's start walking this is not a heavy big reach so we do third party verification so our people go out into the field and one of the main things that they do now with energy codes improving one of the main things that they do is go out now we're not inspectors we don't work for the government we don't work for any regulatory agency but what we do is we go in and we verify for the builder that the standards that they have set that they want to create for their customer is being met this is very market driven the builder sets the level that they want to achieve and then we help them to make sure that they do that so I started this out with we're talking about when when I think this is a win for everybody everybody wins in this and again just concentrating on the residential sector the home buyer wins because the home buyer gets a more affordable comfortable durable valuable home the builder and the seller win because as you'll see on my next slides they sell more homes faster for more money real estate agents win because they have a new selling point appraisers win because they are able to communicate the value of these homes and lenders win because then they are able to they are able to evaluate the the cost that it's going to actually cost people to live in a home so we talk about what a mortgage price is a piece of what it costs to own a home you also have to think about what it costs to actually live in that home so these are the things that the home owners get right and it's interesting the national association of home builders did a study recently and found that energy efficiency was rated number one as what home builders home buyers want they want this stuff and that is a tremendous accomplishment and sellers and real estate agents get this is some data that I took from the triangle MLS 36% of the homes that were sold were energy rated in quarter one of 2012 of those homes there were roughly 11% higher sales price and they spent 21% less time on the market so again more homes faster for more money for lenders this is a recent study that was done by the UNC institute for market transformation they discovered that energy rated homes have a 32% lower default rate and a 9% greater value versus unrated homes so that's these are the different parts of the value chain and again you know I wrote up here what's next one of the things that and what the other thing I think is really interesting about all of us we're all aligned I mean we've got everybody from you know large multinational to somebody representing all manufacturers to me who's representing a small company and then home builders we're all aligned in that we agree that we need standards the SAVE Act was mentioned that is one that we believe will really help to set standards that everybody knows understands can agree on and can move forward with and we also need market signals we need consistency so that people who want to innovate in this space can comfortably and confidently make investments so what's next for our company an example of us so we have we're looking constantly to innovate and find new ways to add value for our customers we work with builders everyone from the very small custom home builder who may build three or four homes a year to large national builders really where our sweet spot is is in the regional builders who may build two or three hundred homes a year and with some of those builders we actually found that they increased their business during the recession so a lot of builders did not enjoy that experience but many of our again this is a specific part of our market but the regional builders that were able to they had a good infrastructure built they were able to increase their their business and not by a lot of course now the market is picking back up in North Carolina and so they're growing at a much more rapid pace but we believe that we need a consistent easy to understand for the consumer awareness for what does it mean so even energy star rating they know the energy star they know that that is something that they want they're asking for it but we feel that there's a real need to gather around and get consistent around a standard that everyone can understand and we believe we're advocating that should be the hers rating the home energy rating system that then multiple multitudes of programs and different organizations can create programs around that we are working on one called eco select which would has the ability to encompass whatever program that any locality may want to build to and we're launching this on a national basis with other people who do what we do for a living and we're really excited about that so I put these slides in here so you guys could see so here's where we started and then we grew a little bit and then we grew a little bit more and then we grew a little bit more and then we really grew and then we decided that we had grown to the point where we wanted to divest part of our company so I say we matured and this is our current team and going back to them you can't I don't know how well you can see their faces the thing that is great about getting to go to work every day is that these people love what they do and let me tell you a lot of them they do hard work they come up on roofs they come around in crawl spaces I mean snakes, spiders, you know they've seen it all but they believe that they're making a difference and they believe that they are not only helping their own families something they can be proud of but they're helping other families and the last slide I put on here is that everyone deserves to live and some of the work that I'm the proudest of is work that we've done within the affordable housing community because those homeowners are the ones where saving energy really makes a difference for them. One of our team members came back he had gone to a ribbon cutting for a multifamily project that we worked on where we did some energy efficiency standards I believe it was built to the energy star standard and he came back and he said how's your day? and he had tears in his eyes because he said that an elderly woman had come up to him with her energy bill in her hand and said my energy bill at the last place I lived was a couple hundred dollars I just got my first energy bill and it was like thirty eight dollars for her she said it made the difference between being able to afford a certain medication and we hear those types of sound bites our people experience that every day and so things that this is really something that we can get behind that touches people on a very very human level and it's good for our country it helps us to be more energy independent everybody wins so thank you Thanks so much Maria and I think it is very very powerful when you see what a difference it makes for individual citizens for individual home owners and what it means in terms of having something that's affordable and much more comfortable healthy etc and so we've really kind of looked at across a broad spectrum today and so that you can see how each of these really do relate to each other and in terms of sort of the the web that connects things because in each case there is also a very important supply chain, a value chain that is also involved but let's open it up for your questions or comments we have about fifteen minutes do we have any? Okay go ahead Els Do you want to go to the microphone? So there is a nationwide network of people who do what I do for a living and we're called home energy raiders of course you can find me and my information at www.southern-energy.com if you're interested in what we're doing with EcoSelect which is again really helping to educate and communicate very clearly with the consumer you can look at getecoselect.com www.resnet.com is also another resource for you there are companies like ours across the nation that do this work and I'm sure word of mouth makes a big difference it really does yes I think that that's really really a critical thing that should not be underestimated okay over here come out Ross so in the growth agenda in terms of how the four goals that I set out so that's a very good question and luckily I'm the energy guy not the IP guy you know I again this is a sort of set of policy goals you know we want to see innovation happen we want to see the right policies that will make innovation happen you know a lot of it's going to be anecdotal I frankly don't know the kind of measurement that you can do for that kind of stuff but you kind of you can kind of see it so natural gas let's use natural gas as an example innovation brought the vast amounts of natural gas and the very very serious discussions we're having over the policy our nation's policy over natural gas because of the innovations that led to hydrocfracturing and horizontal drilling you know a lot of discussions we're having on you know ESPCs or because of the innovations that led to that led to the technologies that allow for this significant energy savings more so than the federal government's even paying in ESPCs so to answer your question honestly like they're aspirational documents the goal document is this is what we, is the manufacturing agenda and what we want to see done you know it's an excellent question but I don't know that I have a very easy answer for you on sort of how we're going to measure whether or not we're getting there on innovation so I'll just address it from a company standpoint I mean I think one of the things that we measure inside a company as far as innovation is IP and patents that's clear that's fairly straightforward and easy to do but it does not really reflect exactly what happens in the market so really from a business perspective innovation for us is around the core strategy what new offers or products do we have and how much business does that generate for the company so that's the way we measure it so when we're looking at energy management as a strategy for Schneider Electric it's where new opportunities and what things have we created that have generated new business or growth revenue for the company and that's the way it's measured Dave Carl from there in only two states not mandatory but for a recent term so I think Maria will be happy to hear that in the 2015 International Energy Conservation Code the HERS rating will be one of the ways to achieve compliance and it's great what you're doing with the builders you're working with but unfortunately around the country the home builders are some of the most active groups opposing the adoption of the new energy codes and so hopefully this new provision which adopts the HERS rating as a way to get to you know to demonstrate compliance will get some of those home builders to support that hopefully folks like you at the state level will also like your voices because North Carolina there's a big battle going on right now yeah HERS rating is based on the O6 thank you for bringing that up this is a national organization that I actually work with called the Green Builder Coalition so this is not universal there are lots of builders out there who really would like to see these adopted and we're working on that every day so thank you for that and we're going to make the fight we're going to work on it North Carolina for sure okay back here I'm sorry can you raise your question please deployment and development are you talking from a governmental policy perspective so that's a very interesting question so our policy basically says there's an important federal role in both we've got an important federal role in policy in R&D and there's an important federal role in deployment it's hard to kind of differentiate where you should be spending your money our position is both we really need both and this kind of applies broadly to all energy systems yeah I mean so it's a good question for the appropriators I don't necessarily know that I would have an easy answer other than we want to see a way that both of these things have both private sector investment and to the extent we can get a federal investment so we have an opinion on that but and what I would say I would agree with what Ross said I think that right now there's a tendency especially some of the key agencies that are involved in this to focus on advanced R&D certainly advanced R&D is very necessary things like you know new materials that will make cars more efficient 3D manufacturing 3D printing which could reduce manufacturing process so very advanced things where companies on their own cannot invest in that's a good great role for the government as far as the government selecting short-term technologies I think that's the role of private industry and that's where we think that the government's role should be more about breaking down barriers to deploy those things whether those things are the financial incentives the code the codes that we talked about policy or programs to encourage deployment like the better plants and better buildings initiatives so I think that's where the government can help move markets forward but allow the companies and the end users to select and innovate in those areas to compete for that business and bring the best offers forward so there's a core balance that balance is very important I mean certainly with respect to all sort of energy policy we know the government's not particularly good at picking winners and losers in the energy space and when it decides that we should do X as a matter of law they're usually wrong so there's a long list of times that they've been wrong no matter what the administration and what the congress so yeah I think Paul's sort of balance is really actually where we need to be there should be some some federal element and that's really why you see a lot of this legislation still kind of percolating up because there is a place for the federal government here to help break down those barriers and let the market work and let it work well and I would say one of the things from a policy of tax just talk about tax incentive we've been working with NEMA specifically on some performance based tax incentives so you could look at instead of allowing even the incentives to pick a particular technology find ways to make things technology neutral and more performance based this is why we like standards like ISO 50,000 one some of the better buildings the BEQ these are performance based initiatives that say that I'm here I improve to here and let the owner decide how to do that let the companies innovate and bring technologies that are going to bring the best practice so for us we would prefer to see much more performance based solutions rather than technology selection obviously if we say select technology we're going to say select ours but he's going to say select his and he's going to say select his and then you end up with a tax code that looks like this you know so does that have anything to do with all of the above I don't know okay back here yes yeah I mean absolutely why don't you both talk about that so we along with several other companies in this room Siemens here GE others a huge business for us is water wastewater treatment and water wastewater treatment is simply a lot of motors running a lot of pumps with a lot of electrical control so the management of water is critical there's a huge amount of energy use in the transportation movement and treatment of water and we see great opportunities there in Europe the UK for instance has mandated all municipal water plants have a set reduction so both from a carbon perspective which really drives them back to efficiency so I think there's an interest the water market is a very disaggregated markets today it's very challenging because it's typically municipal run and as you know municipals are not cash rich today so it's a dilemma where they know there's an opportunity but they don't have the money or the financial stability to create bonds to invest so it's a challenge but the opportunities there I think people recognize the opportunity both in the treatment at the big plants and the usage which brings you back to the appliances whether it's shower heads or toilets or whatever yeah I mean and certainly in the congressional lobbying context we were active behind the scenes of the department in trying to get suggest some policies to them in the water space that actually could fit well into that bill and could make a difference along the lines of what they did on energy we absolutely see an excess there and all the same reasons that we support energy efficiency as good for the manufacturing agenda we feel that way on water too they haven't learned to frack water yet yeah and I was just I mean at our scale as well one of the things we did with EcoSelect we felt like Energy Star didn't address that and there's a WaterSense program that's separate we feel like they should be together I mean this is all about resource management and stewardship so great so you're also addressing that in your work terrific okay over here go ahead point well taken I think that there is not terrific appreciation about the enormous nexus in terms of water and energy and is something that we're very very interested in looking at in considerable more detail and I know that there are a number of congressional offices that are very concerned about this too particularly as we look at all sorts of water constraints across the country and that the issue is becoming ever ever greater any other last comments okay then I want to thank our panel very very much and also encourage you if you can to head over to the Canon Caucus room for the Alliance to Save Energy great energy efficiency day because there will be another great group of people that will be talking speaking about energy efficiency opportunities there as well and thank you to our wonderful wonderful panel really appreciate it