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Energy efficiency, on the other hand, is widely viewed as a mandatory part of all future energy policies. Former Secretary of Energy Samuel Bodman summarized the role of energy conservation: “As most of you know, the largest source of immediately available ‘new’ energy is the energy we waste every day. Indeed it is the cheapest, most abundant, cleanest, most readily available source of energy Americans can access...” The United States uses nearly $1 million worth of energy every minute and, though less than 5 percent of the world’s population, consumes close to 25 percent of the world’s energy resources. Further, the average American consumes six times more energy than the world average.4 The United States must confront its excessive energy use and make the changes necessary to decrease energy consumption, thereby providing a model for other developed and developing nations in how best to foster a growing economy and a healthy environment. Energy Consumption The DOE categorizes national energy use into four sectors: residential, transportation, commercial, and industrial. The residential, transportation, and commercial sectors account for almost 66 percent of total U.S. energy consumption.5 Space heating and cooling account for more than half of energy use within the residential sector, followed by lighting/appliances and water heating. As wealth gradually increased in the United States, so too did the demand for appliances, which resulted in an ever increasing need for energy. Thanks to federal programs like Energy Star and Zero Energy Homes, the promotion of more efficient appliances and building guidelines has resulted in falling energy use over time, both per capita and per household.6 Electricity use for lighting is also expected to decline due to increased sales of highly efficient compact fluorescent light bulbs and requirements that inefficient incandescent light bulbs use less wattage. While water heating typically accounts for around 14 percent of a utility bill, using less water, adjusting temperature requirements, and insulating the water heater and pipes can help reduce costs.7 The transportation sector includes all vehicles for personal and freight transportation. Fuel economy targets for passenger vehicles (cars and light trucks) were initially set in 1975 in reaction to the 1973 Arab Oil Embargo. Although the average fuel economy of cars almost doubled following the establishment of these targets, fuel economy standards have not significantly changed in the last 20 years.8 Cars and light trucks, under the Corporate Average Fuel Economy (CAFE) standards, are considered separately and are held to different standards. Additionally, CAFE standards do not apply to vehicles with gross vehicle weight ratings over 8,500 pounds. Manufacturers can also choose not to comply with CAFE standards and instead pay penalties (in the 2006 model year this included BMW, DaimlerChrysler, Volkswagen, Ferrari, Porsche, and Maserati).9 Overall, due to new fuel economy standards, slower economic growth, and higher recent fuel prices, the rate of growth in energy consumption is expected to decrease for cars and 86PDF Image | Shaping Energy Technology Transition
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