When the Alliance was formed thirty years ago, the “hot button” environmental issues were air and water quality – global climate change was largely not understood or discussed.  Notwithstanding a lack of focus on this critical area, through the work of the Alliance, investment and advancements in technology, and enactment of sound public policies, energy efficiency was hard at work helping to tackle climate change and today contributes significantly to lowering greenhouse gas emissions.  Our studies indicate that energy efficiency deployment over the past three decades is helping the U.S. to avoid the release of 2.5 billion tons of CO2 annually, as well as saving American consumers and businesses over $400 billion in avoided energy costs every year.  So, it is true that we were an active participant in addressing global climate change even before efforts on this key environmental front were organized in the U.S. and we remain so today.

In the six-plus years that I’ve been with the Alliance, I’ve watched the U.S. “wake up” to the urgent need to tackle climate change –  a need that was already long-recognized by other key players in the global economy.   A “perfect storm” of high energy prices; unprecedented growth in global energy demand; and concerns about an over-reliance on imported energy resources also helped to fuel the appetite for U.S. policy makers, businesses and consumers to take action.  Our job at the Alliance was to use this important opportunity to advance energy efficiency as the cheapest, quickest and cleanest means for achieving not only climate goals but also to enhance our security and improve our economy.  And, I believe the Alliance and other energy efficiency advocates have been hugely successful in this effort.  The proof?  Two major pieces of federal energy legislation in the past five years, one of which represents the most significant energy efficiency legislation ever enacted in the U.S., the Energy Independence and Security Act (EISA).  The vehicle and appliance efficiency standards and other energy efficiency measures in that act will result in a projected 7% decrease in energy use in the U.S. by 2030 and a 9% reduction in CO2 emissions.  But much, much more can and must be done.  And so we continue to advance energy efficiency as the cheapest, quickest and cleanest way to tackle global climate change and create a new, clean energy economy.

We continue to work hard toward enactment of comprehensive federal legislation that advances energy efficiency as the foundation upon which we will build a new clean energy economy.  And, we take this work well beyond the border of the U.S., pushing for meaningful energy efficiency policies and programs in places as far flung as Mexico, India, South Africa and across Europe.  The potential for energy efficiency to be the world’s greatest energy resource is clear; the job is to turn the potential into reality.

We’ve come a considerably long way in the past two decades.  The Alliance was founded and co-chaired by Senators Charles H. Percy (R-Ill.) and Hubert Humphrey (D-Minn.) in 1977 — on the heels of the energy crisis created by the Arab oil embargo and American consumer’s apparent return to energy-wasteful lifestyles.  Since that time, the nation’s energy demands have increased steadily and will continue to do so in the years ahead.  As a result, we at the Alliance have supported the deployment of many new energy technologies, made considerable strides in improving the energy efficiency of appliances and national model building codes, and educated consumers on how to save money and energy in their daily lives.  These efforts have made energy efficiency America’s truly “first fuel,” as homeowners and businesses increasingly realize that the return on investments in energy efficiency is real and significant.  Americans are now reaching for compact fluorescent lightbulbs (CFLs), instead of incandescents; they are looking for the Energy Star label on the products that they buy.  Homeowners and businesses owners nationwide are participating in government-sponsored programs to ensure that they maximize the use of our existing resources.  Americans are becoming a great deal more in tune with their energy consumption, with great benefits for our country and economy.  As the Digital Age progresses each year, exciting opportunities — such as those associated with the Smart Grid and other electronic control devices — will provide even greater efficiencies, while also minimizing carbon emissions and other pollutants from power-generating operations.  It truly is an exciting time for energy efficiency.

We believe that there is a great deal of agreement in America right now in terms of the urgency of reducing energy use and improving energy efficiency.  Policymakers have spoken publicly about the benefits of energy efficiency for the economy, as well as for national security.  When Americans use less energy, the result is fewer energy imports and an overall safer country.  Senators Richard Lugar (R-Ind.) and John Kerry (D-Mass.) – two of the countries key leaders on foreign relations -- have devoted a staggering amount of time to promoting energy efficiency, highlighting the fact that energy efficiency is a bipartisan issue and one upon which everyone can agree. 

One of the main reasons that energy efficiency has advanced so rapidly across our economy has been a result of ICT.  Sensors, automated feedback and controls, modeling tools, robotics and other ICT that reduce energy and material waste are increasingly used in manufacturing to enhance productivity and quality.

At a paper mill in Jackson, Ala., for instance, we have seen a laser ultrasonic sensor demonstrated with the potential to save American paper makers $200 million in energy costs and $330 million in materials annually. [Ref. “Energy-Saving Paper Sensor passes Major Milestone” http://www.physorg.com/news4221.html ]

In farming, there’s a growth in what’s called precision agriculture. Sensors, global positioning systems (GPSs), and geographical information systems (GISs) allow farmers to monitor and apply fertilizer and pesticides only where and when needed.  As a result, farmers can save energy and materials expenses while reducing environmental impacts and costs.

Most cars have computerized control of fuel injection, engine timing, transmissions and other components — all of which lead to greater efficiency without drivers having to think about it.  Of course, hybrid and new electric drives bring even more computing horsepower under the hood while saving gas.

We’re seeing major growth in building energy management systems, lighting controls and other ICT-rich systems to improve the energy efficiency in buildings, which accounts for 40 percent of U.S. energy consumption.

Many may not appreciate the role of bar codes, radio-frequency identification (RFID) tags, logistics software, GPS and GIS, and other ICT in increasing the efficiency — including energy efficiency — of shipping, distribution and inventory controls for all kinds of products and industries.

Individuals can increasingly take advantage of ICT advances to reduce their energy bills, while also enhancing their well-being and quality of life.  A simple example is the programmable thermostat that can save as much as 10 percent of heating and cooling costs by adjusting one’s thermostat automatically.  It’s easy to install and, more importantly, it won’t break the bank.  More sophisticated energy feedback and control systems are starting to enter the residential market to allow households to better control and optimize their energy use, and save money. We believe that one day these systems will become commonplace in every household nationwide and give consumers much more control over their daily energy consumption, as well as their household budgets.

We are starting to see advances in smart grid technologies that may also offer consumers cost-saving benefits.  For instance, some utilities (such as PEPCO in Maryland and Washington, D.C.) offer significant summer bill discounts for customers that allow the utility to moderate thermostats on high electricity use days.  This control alleviates grid stresses and the chance of blackouts and brownouts, while also saving energy and money for the consumer.

As I mentioned, the country is moving toward electronic transactions, including pay by phone, pay by computer, electronic shopping, e-mail, e-tickets, e-books, and so forth. This trend saves postage, paper and time. Simultaneously, the growth of telework and telecommuting can reduce the energy and time-cost of commuting and business travel, while also reducing companies’ overhead costs.

Certainly, consumers should look for the most energy efficient products — whether they’re ICT products themselves, such as EnergyStar home computers and TVs, or whether they incorporate ICT to perform other functions efficiently, from EnergyStar appliances to high fuel-economy and hybrid cars.

Yogi Berra said, “It’s tough to make predictions, especially about the future.”

That said, I hope that in five years the United States will have comprehensive climate and energy legislation on the books and that we will be talking about is implementation and the opportunities for energy efficiency in the clean energy revolution that will come about as a result of strong and effective public policy.

We will recognize that the energy efficiency advances I mentioned above — in industry, agriculture, buildings, transportation, and households — in which ICT will have a foundational role -- are just the tip of the iceberg relative to their potential.  We’ll see energy efficiency as a means to reduce waste and improve productivity and economic competitiveness.  Economic competition will grow as the ranks of emerging economies grow.

We will be charting the next courses for technology advancement — in energy, ICT, materials, transportation, health care, biotechnologies, and so on — and we will be talking about and discovering the ways to continue to accelerate such advancements.

I believe we will still have the profound challenge of meeting the needs and aspirations of growing human populations on a planet of finite natural resources but with infinite potential for human ingenuity. How we manage energy will be a key determinant in whether we can meet the challenge.