President Obama issues executive order promoting industrial energy efficiency; targeting 40GW of CHP capacity by 2020, up 50% form today
US President Barack Obama issued an Executive Order to facilitate investments in industrial energy efficiency, including combined heat and power (CHP) systems. The Order establishes a new national goal of 40 gigawatts of new combined heat and power capacity by 2020, a 50% increase from today.
Meeting this CHP goal would save energy users $10 billion per year, result in $40 to $80 billion in new capital investment in manufacturing and other facilities that would create American jobs, and would reduce emissions equivalent to 25 million cars, according to the Obama Administration.
The Executive Order directs the Departments of Energy, Commerce, and Agriculture, and the Environmental Protection Agency, to coordinate actions at the Federal level while providing policy and technical assistance to states to promote investments in industrial energy efficiency and CHP.
The Executive Order also directs the agencies to foster a national dialogue through ongoing regional workshops to encourage the adoption of best practice policies and investment models that overcome barriers to investment, provide public information on the benefits of unlocking investment in industrial energy efficiency, and use existing Federal authorities that can support these investments.
The order directs the agencies to utilize their respective relevant authorities and resources to encourage investment in industrial energy efficiency and CHP, such as by:
providing assistance to States on accounting for the potential emission reduction benefits of CHP and other energy efficiency policies when developing State Implementation Plans (SIPs) to achieve national ambient air quality standards;
providing incentives for the deployment of CHP and other types of clean energy, such as set asides under emissions allowance trading program state implementation plans, grants, and loans;
employing output based approaches as compliance options in power and industrial sector regulations, as appropriate, to recognize the emissions benefits of highly efficient energy generation technologies like CHP; and
seeking to expand participation in and create additional tools to support the Better Buildings, Better Plants program at the Department of Energy, which is working with companies to help them achieve a goal of reducing energy intensity by 25% over 10 years, as well as utilizing existing partnership programs to support energy efficiency and CHP.