Secretary of Energy Moniz Keynote (Text Version)

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Below is the text version for the Keynote: The Honorable Ernest J. Moniz, U.S. Secretary of Energy Video.

DAVID DANIELSON:  With that in mind, it is my great pleasure to introduce a great energy and manufacturing leader and our first keynote speaker of the day, Secretary of Energy, Ernest Moniz.

As the U.S. Secretary of Energy, Dr. Moniz is charged with implementing the Department of Energy’s critical missions in support of growing the economy, enhancing security and protecting the environment. This encompasses advancing the President’s all of the above energy strategy, maintaining the nuclear deterrent and reducing the nuclear danger, cleaning up the legacy of the Cold War and promoting American leadership in science and clean energy technology innovation. That is all before breakfast. Prior to his appointment, Dr. Moniz was a professor of physics and energy systems at MIT where he served as chairman of the Physics Department, the Director of the Laboratory for Energy Environment and most recently the Founding Director of the MIT Energy Initiative. This is the Secretary’s second tour of duty at the Department, having previously served as Undersecretary of Energy from 1997 to 2001 in the Clinton Administration, prior to that he served in the White House as Associate Director for Science in the Office of Science and Technology Policy from 1995 to 1997. Please join me in welcoming to the podium, my friend, the 13th Secretary of Energy, Dr. Ernie Moniz.


DR. MONIZ:  Well, thanks to both Deborah and Dave for the introduction, but also for the invitation to be here. I hadn’t thought I would be here again since I was here last year. There is just so much happening that the opportunity to come here was irresistible. I also wanted to add to – Deborah and Dave also – I don’t know if she is here at the moment, but our friend Kateri Callahan and say that these are three real thought leaders in terms of our national productivity and competitiveness, agendas and as you know, we will all be collaborating going forward and I will come back to that.

I also want to thank at least two members of Congress that I have met this morning. Congressman Fleishman and Tonko, they are also great champions of the agenda that we are here to talk about today. Congressman Tonko certainly he and – frankly in New York State, is doing a tremendous job in moving forward this agenda, centered in many ways in this district and Congressman Fleishman has been a great colleague, from Tennessee, a very enthusiastic – he’s standing here, actually, in terms of – for example I work with the Oak Ridge Laboratory in many dimensions and will return today to some really – probably many of you already know, but some really interesting news in terms of pushing the application of 3-D printing. I might also add – and I will come back today to say a few more words about our national laboratories and I believe five of our lab directors in fact are on today’s program. That is just an indicator of the way that we in the department are amplifying our commitment to advanced manufacturing, as you all know, this is a very, very high priority of the President and we are very pleased the DOE is actually one of the lead agencies for implementing these issues.

So again, it’s great and I’m very pleased to be here and to thank you, not simply for coming here, but you for also being at the front lines of our competitiveness agenda. Today as you know and Deborah emphasized, we are clearly at a time of significant progress on both the energy efficiency and the energy supply sides in the United States. On a scale it creates some fundamental shifts; shifts in the global energy markets, shifts in our competitiveness, especially in the manufacturing sector, growing the economy, but also especially the success of the demand side, really challenging business models. Be it in the utility sector, the fuel sector, it’s really a very, very dynamic time. I might note that just recently Fortune Magazine came out with its 100 fastest growing companies and 26 out of those 100 directly connected to what is happening in the energy sector. Twenty three of those 26 from the oil and gas boom, others in the transmission area, etcetera. But I want to emphasize those were not companies simply who were producing more hydrocarbons, more gas and oil, but also suppliers, people who make barges and railcars and compressors and other kinds of equipment. So this is really a very dynamic period clearly in our energy history.

Dave Danielson unkindly referred to this being my second tour of duty at DOE, you know the old joke about the triumph of hope over experience as the description of second marriage, but in my first go around, you know, it couldn’t have been more different in terms of the picture and certainly in terms of oil and gas production. It was in decline, imports climbing and on the natural gas side, preparing to import large volumes and of course now you know that – I guess in the spirit of no good deed going unpunished, now we have an exciting discussion around exports of these commodities.

But we are also building the first new generation nuclear power plants. We are seeing tremendous progress on renewable energy, just in the last few years, tripling of wind deployment. Ten fold increase in solar deployments. Last year, renewables generated 13% of our nation’s electricity with more gains to come. In fact, wind surpassed 4% of our electricity and with a more regional focus certainly, solar in May produced roughly 6% of California’s electricity.

So these are big things that are happening, as I say, they are challenging business models really across our energy sector and to a certain extent across our economy. Best of all, all of this good news on the supply side has been very, very importantly complimented by greater efficiency than ever before as industry and government partnered in drafting and implementing new standards as well as new investment programs. On the vehicle side, as you well know, President Obama brought together the auto companies and regulators to agree on new fuel economy standards; 54.5 miles per gallon by 2025 for light duty vehicles. And this combination of increased production and increased efficiency have really combined to slash imports and our imbalance of trade. Of course to continue on the pathway to meet these kinds of goals, we also need new technology and that is clearly a big role of the Department of Energy. For example, lightweight materials, one of the stories that you have seen undoubtedly and I alluded to it earlier, is this very interesting demonstration at Oak Ridge recently with the 3-D Manufacturing Center in terms of printing an automobile frame in 44 hours. Other things we have done, loans for example. Our loan program. Helping Ford to retool ten factories. All kinds of developments including this year taking 700 pounds out of the F150. Again, a tremendous increase in energy efficiency.

We will of course be also moving towards standards, new standards for very heavy trucks. Another kinds of technology initiative at the Department – the super truck initiative, where we have seen Class 8 vehicles with efficiency now above ten miles per gallon. That doesn’t sound like a lot, but that is a 75% improvement for a major consumer of fuels.

So in addition to that sector, the Department has issued final efficiency standards for more than 30 household and commercial appliances. Dishwashers, refrigerators, water heaters, industrial electric motors, you can go on and on. But what I want to emphasize is that with the issuance by the President of the Climate Action Plan last June, we were then challenged to up our game and I have to say that this is a great example where working together within the government, working with important organizations in the private sector, like the Alliance, that we were able to essentially clear bottlenecks that had kind of held up some of the standards and this year we will issue ten final standards. Final efficiency standards and to put that into context, that is twice as many in half the time of the proceeding two years. So this remains a very, very strong commitment of the administration. It starts with the President and we intend to run through the tape in the January 2017 continuing to advance these efficiency standards.

When you take these standards and all the standards that we have and expect to issue during this administration’s time, we are talking about a cumulative avoidance of over three gigatons of CO2. So this really adds up one piece at a time. Not to mention saving consumers about 450 billion dollars estimate over that time period.

So the President’s all of the above approach to energy, while still being focused on greenhouse gas emissions reduction, I just want to emphasize, really has the demand side as a very, very important part of that agenda.

We still have to accelerate energy productivity gains and through the American Energy and Manufacturing Competitiveness partnership, you have helped to inform the clean energy manufacturing initiative. You have helped to identify ways that the public and private sectors can join together to increase our clean energy manufacturing competitiveness, take hold of this unique moment in our energy history, again to drive economic growth and American leadership or I include American leadership in the very important climate discussions that we need to be driving internationally over this next – particularly over this next year on the road to Paris. Now to help keep this momentum going, today we are really pleased to announce that we are launching the accelerate energy productivity 2030 initiative with DOE, the Council on Competitiveness and the Alliance to Save Energy. So that is again a partnership that we are really very, very pleased to strengthen as we all tried to move towards the shared goal that we have of doubling energy productivity by 2030. This builds on the Council on Competitiveness long history of advancing U.S. productivity, growth by examining our challenges and opportunities, shaping the strategies needed to make the most of those opportunities. And it builds on the Alliance to Save Energy’s current Energy 2030 campaign in the private sector and in all levels of government as well, to implement the recommendations of the National Commission on Energy Efficiency. As the Alliance has pointed out, we would be using 50% more energy today had we not made efficiency improvements over the last 40 years and now we have to get that next factor of two over these next 15 years. I might just say, as you know, these were essential to meet our economic, environmental and security goals, but just note; for example, sometimes we also forget the way efficiency pervades all over attempts at reaching these important objectives. For example, yesterday there was, I would say, deservedly on the front page of The Washington Post, a story about the campaign to replace HFC’s, very powerful greenhouse gases. There was a significant major summit yesterday at the White House with the private sector where we saw many, many commitments being made to address this important program – important goal. HFC’s being viewed as in many ways the lowest hanging fruit for a short term impact in terms of lowering the global warming potential, if you like, of our emissions. But what also was emphasized over and over again by the private sector and again we believe quite correctly, is that that discussion about lowering the greenhouse gas emissions from the cooling sector – air conditioning, refrigeration, etcetera, can only be discussed sensibly in the context of efficiency as well. It’s really combining efficiency and the replacement of refrigerants that has to be looked at together. So this productivity agenda, this efficiency agenda, is absolutely critical.

Next month, in the context of this initiative, we will kick off a dialogue at DOE with stakeholders, CEO’s, followed by three two day regional dialogue events during the rest of the year. The first day, this dialogue will be structured by topic and region to share industry best practices and map the pathway for energy productivity. The second focuses on specific state and local activities culminating in endorsing action goals and making some tangible commitments. So we will disseminate energy productivity, accomplishments throughout the year and then next September we intend to release a national road map to achiever our energy productivity doubling goal.

So again, meeting this goal of course obviously means by definition essentially achieving twice the production, using the same amount of energy and other speakers today will share their ideas on how American manufacturers are already transforming factories, supply chains, to be more competitive, adding to our GDP, but using less energy. And what lies ahead, more efficient energy production and electricity generation, more efficient energy transmission and distribution, more efficient use of energy in homes, buildings and factories, streamlining distribution chains to increase manufacturing competitiveness and bring more product to market per unit of energy.

So we are counting on those here today to innovate really how all of that will come to pass specifically in achieving our goal. Now, doubling US productivity – energy productivity by 2013 obviously requires investments every year in buildings, transportation and industrial equipment, but the savings from those investments certainly outweigh the costs and I quote from a recent Rhodium group, consulting firm study, overall energy use would drop by 18% compared to 2011. Many of their estimates come from analysis on factory floors and not just from the kind of high level modeling. For that investment, our nation would enjoy an almost 500 billion dollar annual savings by 2030. According to Rhodium, businesses would save about 170 billion a year on energy bills, families 145 billion a year on home energy use and transportation, roughly a thousand dollars a year per household. And tax payers about 13 billion dollars from reduced energy budgets of government agencies.

Other benefits, annual bill, American’s pay to import energy fall by 100 billion as they shrink to only 7% of our total use. And much more resilient to global energy price and supply shocks. Today, we are deeply engaged in an energy security discussion as well as the climate discussion. The former of course driven to a large extent or highlighted, I should say, by the situation in Ukraine. Our military would become more reliably supplied, more self-sufficient in the field, reducing vulnerability. The nations C02 emissions would fall significantly, manufacturers more competitive and finally, according to Rhodium, these productivity investments helping create about 1.3 million good jobs.

Now, let me just finish by turning back to the DOE, to help achieve these benefits, certainly the President expects us all to work together in the public and private sectors, both federal and state governments and he’s directed DOE and other agencies in the administration to try to provide a full range of research development and market ready tools to use as well as financial help to enable the nation to save energy and grow our economy’s output. We launched the clean energy manufacturing initiative last year. And since then, expanded it to involve practically every program office in the department. This all started in our energy efficiency and renewable energy program, but that program and Dave have taken leadership to engage other programs in our department. And today, I can announce 23 million dollars for 12 cost shared projects in the third round funding under our innovative manufacturing initiative. These projects range from low cost bio based carbon fiber for high temperature manufacturing electric furnaces for the steel industry and more efficient municipal and industrial water purification systems. I’m also pleased to announce some of the year end results of the better plants challenge, which grew to 2300 participating manufacturers. Participants achieve cumulative cost savings of 1.7 billion dollars, up 70% from the year before and part of that came from two new pilot initiatives on water savings and supply chain energy efficiency.

Underlying the success of DOE programs like this is our aggressive cost cutting energy and manufacturing research throughout the department. I mentioned earlier that I think five lab directors will be on the program today, emphasizing how they are engaged in this strong focus for the department. Our 17 national laboratories provide the must fundamental research, a fact that we celebrated yesterday on our national lab day on the Hill where we displayed some of their project results in the Dirksen Senate Office Building. It was kind of like a science fair for grownups and I had a great time there, I gotta say, but – and a number of members did as well, I will look for collaboration to one of our members here in the front row and – but I have to say, one of the important messages was clearly the strength of our laboratory system in contributing across our mission space and our mission space now includes advancing the manufacturing and competitiveness agenda, but another part of that message that was very important is that in the sense of working with the private sector, we are open for business and we are looking for new partners and new ways to partner to help our economic development. The laboratories clearly are important, basic science. Our national lab scientists have earned a remarkable 80 Nobel prizes for example, but we are equally emphasizing that we have to deliver scientific advancements to the marketplace as strongly as we can, again for boosting the economy and creating good jobs.

We have a large system of rather unique multi disciplinary research capabilities, large scale scientific tools and teams of scientists and engineers spanning disciplines in partnership with universities, corporations and non-profit organizations and yesterday’s demonstration again, showed that one example of how, for example, weapon’s lab technologies has spun out to create a company with extremely refined and important technology for early breast cancer detection. So we really need to see the opportunities in these technologies that we are developing for multiple applications.

So this will help certainly save energy and improve competitiveness and another example I will give. At Livermore Laboratory with kind of an open campus, we have a deep computing center in partnership with IBM, which is specifically there to help match companies to opportunities to use high performance computing in their business models. So gain, we are looking for multiple pathways to work with the private sector and we welcome your ideas and your partnership.

Another example I will just give – I have already mentioned the 3-D printing of the car, but also we have a super critical CO2 tech team. This sounds very technical, but what its about is trying to develop, demonstrate and move out a new thermodynamic cycle for all kinds of thermal power plants. January, with the President, we were North Carolina University to announce a new institute focused on wide band gap semi conductors. Multiple applications across the energy and other sectors. Again, I could go on, but it’s really the message that we have tremendous technology capacity and we are looking for ways, if anything, to increase our interaction with the private sector to find ways into the marketplace for these technologies and their applications.

So I think that really is the main set of messages I wanted to convey, so again, repeat one more time, our absolutely commitment to continue to focus on manufacturing and energy productivity. This administration has got two years and four months left, we would like to use those very effectively with our partners to advance that agenda.

So thank you again for attending this Summit, but even more for the important work that you have done and will do on our competitiveness and energy productivity agendas, thank you very much.