Good afternoon everyone. I think this is a perfect place to spend a Friday afternoon hearing about the energy efficiency and renewable energy budget for for fiscal 2015 we are Grateful that we're able to put together this forum this afternoon to have once again a reprise of this annual Event to really take a look at particularly the Department of Energy's budget and What does that really mean with regard to? investments by the government in terms of efficiency and renewables and The implications of that and what that means for trends, etc. We've got a good panel to talk about all this and to provide a lot of perspectives and to to Kick off our our forum this afternoon I first want to turn to Ashley Johnson because with congressman reichert's office of Washington State because congressman reichert is one of the co-chairs of the Congressional renewable energy and energy efficiency caucus and This briefing is an annual event that the caucus is involved with with With EESI and so we're very very grateful that Ashley is here as well Thanks, everyone for being here today. The congressman definitely wanted to join but is back in Washington State and as Carol mentioned He is the co-chair with congressman van Hollen of the Congressional renewable energy and energy efficiency caucus, which is a bipartisan caucus that holds number of educational events such as this one and also helps facilitate the energy Renewable energy and energy efficiency expo, which will be happening in July Up on the hill and we're very excited about that and excited to hear from our panelists today and I know that my colleague in Van Hollen's office is on her way So I will just let our panelists kick it off starting with Jason Thank you. Thank you Ashley and thank you Carol. It's a pleasure to be here On a Friday afternoon This is actually there will be a lot of information to absorb for a Friday afternoon, so I'm impressed by all of you who made it here As Ashley said, my name is Jason Walsh. I'm a senior advisor and the director of strategic programs in the Office of Energy Efficiency and Renewable Energy at DOE Let me give you actually a little bit of background on the place where I work Because I think it's important context. EERE is the largest office in the federal government focused on developing clean energy solutions You can see up here on the screen our vision Which is a strong and prosperous America powered by clean affordable and secure energy In our mission, which is to create and sustain American leadership in the global transition to a clean energy economy I'm gonna talk a little bit more about that in a moment, but EERE is comprised of 10 technology offices Organized into three sectors sustainable transportation Renewable power and energy efficiency. We also have an office of strategic programs, which I run which aligns and leverages and Maximizes the impact of the work in our technology offices, but then also engages in a whole series of Cross-cutting activities that are not specific to particular technologies everything from from some of the energy finance work We do to techno-market work to policy and analysis Let me talk a little bit more about that mission statement because it's really a foundation for how we approach this work It's our belief that our nation stands Really at a critical point in time in terms of the competitiveness opportunity In the global clean energy economy In 2013 254 billion dollars was invested globally in clean energy Representing roughly a 450% increase since 2004 We know trillions more Probably tens of trillions will be invested in the years ahead China pulled ahead of the United States as the global clean energy investment leader in 2012. They extended that lead in 2013 Essentially what is happening is that the world is accelerating into what will be a decades-long transition to clean energy and that Is resulting from to what we believe to be unavoidable in very significant trends one a growing global population Up to roughly nine billion by 2050 that is hungry for energy energy that is affordable and reliable and to the need to to reduce carbon pollution in order to avoid The the what could be catastrophic consequences to our economy and society and environment of climate change And as that transition unfolds in the years ahead We believe the United States is really faced with a stark choice We can invent and manufacture the technologies of today and tomorrow here in the United States or we can surrender global leadership and Import those technologies from other countries. We can continue to waste Literally hundreds of billions of dollars on unnecessary energy costs Or we can increase our competitiveness and our productivity by investing in more efficient homes and buildings and factories these are really significant choices that we've got to make as a nation and I Take the time to say that because I'm hoping that you see Our budget requests very much in that context in that bigger context Okay Before I tell you what we're asking for let me tell you a little bit about what we've accomplished And and this is just a snapshot from the last couple of years and I'm not even go through all of these for lack of time But let me let me just mention a couple at the top. So first commercial say elastic ethanol plant Up and running and producing cellulosic at commercial scale in Vero Beach, Florida and actually last month our principal deputy assistant secretary went down to the NASCAR event at Sebring, Florida Where the cars were using fuel supplied? By the bio refinery down the road at Vero Beach, which not only to our minds was it's kind of a significant milestone Analogically, but just really cool to use the technical term Super truck that's second bullet We have a partnership with the four biggest manufacturers of heavy-duty trucks In the country who collectively represent about 90% of the heavy truck market The goal of super truck is to is to increase freight efficiency by 50% so really really significant numbers And last year Cummins Peterbill one of those four actually hit that 50% marker We expect the the other three to hit it This year. We actually had the Cummins super truck in town last month And there was quite a scene as the different Secretary Moniz and my boss assistant secretary clamored into the cab and got their pictures taken behind the wheel It was kind of a nice nice moment But the the more important point to make is that although commercial trucks only make up 4% of vehicles on the road They use 25% of the fuel consumed in the United States, right? So you make a dent there. You're making a very big dent on overall national fuel consumption and then battery cost We hit our cost reduction target of 325 dollars per kilowatt hour Last year we are on track to hit 300 this year and ultimately on track to hit 125 dollars per kilowatt hour by 2022 and and this you know translates into a trend that has has Just been accelerating right so since 2010 the cost of manufacture advanced electric vehicle batteries has dropped by more than 50% Right and not coincidentally last year Americans bought nearly 100,000 plug-in electric vehicles nearly twice as many as sold in 2012 right So this stuff has happened in now Right and it's scaling up in a really dramatic way and we think we can we can scale up even more dramatically in the years ahead So that's anecdote But there there is no substitute for Rigorous third-party performance evaluations of our impact and we take that very seriously because It is extremely important to us That we spend our precious taxpayer dollars in a way that maximizes impact at every point so what what this shows is an aggregated estimate of the combined ROI of The percentage of our portfolio, which is roughly a third that we have done Third-party evaluations for so we is actually the wrong pronoun others have done it And These involve counterfactuals and it's it's pretty it's pretty it's quite rigorous actually some of the most rigorous evaluations done in the federal government And we the parts of the portfolio that we have done these evaluations of cover PV solar wind energy vehicle combustion engines geothermal technologies and advanced battery technologies If you aggregate all of those results It finds that the total EER re taxpayer investment of 15 billion dollars Yield yielded an estimated economic benefit to the US of 388 billion dollars for a net ROI of more than 24 to 1 We think that's a pretty good investment and a pretty good payback on that investment Okay, so now now we turn to what we're asking for for FY 15, which is 2.317 billion dollars Which represents continued investment in our three major sectors again. They are sustainable transportation Renewable power and energy efficiency All of which remain key priorities of this administration It's worth noting that the the the total FY 14 budget request for ERE was 2.78 million dollars So this request is lower than that, but it is a little more than 400 million More than the enacted 2014 levels so This is the our budget summary table A lot of numbers here I'll flag that the largest increases are in our advanced manufacturing office Our weatherization and intergovernmental activities office and our vehicles technologies office With continued strong support pretty much across the board I'm now going to walk through the request for each of our technology offices for lack of time I can only highlight one or two items for each of these if I don't mention something that you care a lot about It doesn't mean we don't care about it and just means I don't have enough time And we can have a conversation in the Q&A about it or we can also have a follow-up conversation and answer any questions that I Can't answer up here and there will be many that I can't answer because there's a lot of detail here Okay, so let's start with sustainable transportation sector and let me start with our vehicle technologies office Which is leading the department's efforts to support the president's EV everywhere grand challenge and and will continue its emphasis on electric drive technologies and The accelerated development of advanced batteries With better performance and reduced system cost We are also going to be working on wide band gap devices for automotive applications These are advanced power electronics Which have enormous potential for a lot of different applications in the clean energy space and improved motor technologies with reduced or no rare earth Materials, which as many of you know We face constrained supply lines for many of those materials. We will also continue our support for advanced combustion work and Super truck, which I just mentioned is actually very much a centerpiece of that We're also going to be placing a lot more emphasis on ultra lightweight vehicle substructures and carbon fiber technologies the latter in particular Shows tremendous promise for the automotive industry I miss one bioenergy Let me flag in particular here our Demonstration and deployment sub program, which is that second bullet down Where we're really a lot of the focus is going to be on Drop in hydrocarbons Which is I think many folks know are compatible fully compatible with today's engines And fuel delivery infrastructure In particular, it's worth flagging our work here with DoD And USDA to demonstrate and deploy Military spec jet fuel, which we think is an enormous First market opportunity that we're really excited about and we'll also be making new investments to enable Some of our technologies to validate scale up And accelerating momentum for advanced biofuel production in the wake of Some of our successes in cellulosic ethanol. I mentioned the INEOS Biorefinery coming online last year. We expect two more to come online this year And so the more they scale up the more they can reduce their price and the more they can deploy out into the market and fuel cells The budget request for fuel cells remains almost identical to our FY 14 congressional appropriation Our our FY 15 Efforts will focus on reducing the cost and increasing the durability of fuel cell systems. So for example Reduction in the platinum group metal content of the fuel cell catalysts Will help to increase the power output to more than twice the 2008 baseline, which we think is a significant milestone to shoot for And let me move on to Renewable power And solar which is the subject I know that is near and dear to Scott's heart So look there is a ton going on in solar we can talk about this for the remainder of our time. Let me me actually flag that that that bullet at the bottom which is Is our innovations in the manufacturing competitiveness sub program Which has a substantially increased request for funding Look, here's here's the deal the u.s Currently manufactures less than 3% of PV cells and modules globally Right and as solar deployment takes off in this country and so to give you a sense of scale Since 2008 solar deployment has increased PV deployment has increased by a factor of over 13 right as it takes off in this country and globally, we really want to try to reverse the trend of off-shoring of component manufacturing And assembly and we think we can do that through technology and process innovations That that really create Or that are really linked to the competitive advantage of us-based companies. They're a high-value ad and high-tech I mean we did the bottom line here for us is that we think there is a clear opportunity For us businesses to capture a greater portion of the global solar value chain. I think there has been a Lot of assumptions made about where and and how us manufacturing can Compete in this state in this space based on some pretty comp on some pretty comprehensive analysis that we've done and NREL has done We think we can you just got to target it I will also mention the balance of system soft cost reduction work that really continues to be a focus of our SunShot initiative Even though we've dropped solar technology costs precipitously Since 2008 by roughly two-thirds that it's the soft costs that are really sticky right now and soft costs Encompass a lot right they encompass siting Permitting interconnection standards customer acquisition labor. There's a lot of work to be done there We through our rooftop solar challenge. We've done a bunch of it And we will continue to do a lot more particularly with state and local governments who can really Really pioneer some best practices in this space and and hopefully We can spread those best practices around the country as much as possible Wind power technologies I Would say the two major highlights of this request are Are the three offshore wind demonstration projects, which we're going to select this spring? They're not selected yet And the new atmosphere to electrons initiative I think many of you are familiar with the potential here offshore wind Could become a major source of clean energy for for the coastal and Great Lakes states That account for nearly 80% of us electricity demand, right? And in terms of resources, you know, we've got wind energy resources within 50 miles off off our coasts Equivalent to meet four times the nation's current annual electricity production, right? So so there's a lot of resource there We just got to be able to harvest it in an economical way The the funding in 15 will continue a five-year Initiative begun in 2013 with with multiple competed awards. We actually made seven I believe That began development of the first u.s. Offshore wind energy products excuse me projects and We don't we don't have a This is really where the sort of the federal government role comes in right because it is imperative for investors and businesses and Even contractors in this country to to get a clear demonstration this stuff can work and and a clear understanding of the challenges that need to be faced which is why we think these demonstrations are so important and really is our way of Well an opportunity at least to leapfrog global competition to advance the creation essentially a new u.s. Energy industry, right? Which has significant potential Let me talk about water And Carol if I'm running out of time, please let me know I'm trying to go fast that so the water power technology's office will undertake Actually a new initiative in 2015 called hide what we're calling hydro next And the purpose of hydro next is to expand the renewable generation of clean hydropower In the in the u.s. With the goal of enabling the doubling of hydropower generation by 2030 And we're gonna focus with this initiative on technologies and tools to improve performance and sustainably increase Generation at existing dams Existing infrastructure It's also going to focus on on lowering the cost and improving the performance and reducing the environmental impacts Of hydropower for new stream reach development Bottom line, we think we've got a lot more energy output from our existing Hydro power fleet that we can economically take advantage of and it's sitting there And we think we need to focus on it a lot more Geothermal technologies I will I will focus on the what I think represents the biggest effort for us in this space in FY 15 Which is the startup of the forge effort forge Is is stands for frontier observatory for research in geothermal energy, which will be a dedicated Field lab site for testing and validating Cutting-edged enhanced geothermal systems technologies and techniques Which in turn will accelerate the commercial pathway for large-scale EGS power generation the u.s For those of you unfamiliar with EGS that this is a really tremendous resource opportunity It's actually available in all regions of the country because you got if you go far enough down there hot rocks under all regions of the country and the the estimates coming out of the u.s. Geological service Are significant just in terms of what this represents is untapped resources they estimate anywhere between a 100 and 500 gigawatts, right? Which is enough to power millions of homes? Obviously we'll get a much more precise sense of how much of that is economically recoverable through through this kind of effort Okay, let me turn finally to our energy efficiency Sector and I will start with building technologies There is obviously a lot of work in this space Let me let me actually flag the that that bottom bullet equipment and bullets in buildings standards Where our goal really is to scale up our Assistance and collaborative work with states and localities in Adopting and complying with and then enforcing we don't do the enforcing the states do Building codes and and of course what we work on with them is model building codes For residential and commercial buildings, which will result in higher performing building higher performing buildings that maximize Cost-effective energy savings the numbers here of course are huge right if you if you do it, right? And so that's why we see it as a real opportunity for scale-up I'll mention as well our residential building integration Subprogram where we will continue to develop a cost-effective new technologies, but with more of a focus on Sort of individual systems that that are retrofitted one at a time. We've had done a lot of work on Sort of whole home approaches whole house approaches Over recent years and and we're taking a slightly different tack here and really trying to take a more granular approach which we think tracks a little bit better to how consumers behave in the marketplace Which is that they they typically do these one system at a time, you know HVAC here windows here roof there Advanced manufacturing again a lot to talk about here and One of our biggest Request increases from the previous budget request This request will support the creation of at least one new clean energy manufacturing innovation Institute And we'll continue to support to existing institutes one of which we just announced in January On advanced power electronics down at North Carolina State University We put out a funding opportunity announcement last month For one on on Composites which we're very excited about so so these are obviously part of the president's vision For a larger multi-agency national network of manufacturing innovation Which will be comprised of institutes like the ones I just described that are I mean They're really public-private partnerships that act as hubs for manufacturing innovation In in sectors where we really think US manufacturers can gain Competitive advantage and keep competitive advantage and then US manufacturing workers can get good Family supporting wages and in career jobs Weatherization and intergovernmental programs Let me focus here on The weatherization assistance formula grants Where we've requested an increase to really get it back to more of a normal level of program operations That that existed Before the Recovery Act which have enormous benefits for low-income families across this country We've also requested a an increase for our state energy program To support much more of a sort of a multi-jurisdictional approach to competitive awards where where High impacts can be achieved and then replicated across states And then our federal energy management program I'll speed up here Particular focus on Data center energy efficiency, which is I think many folks know as one of the fastest growing sources of electricity consumption in this country There's a lot we can do and pioneer at the federal level given how many data centers and server rooms we've got We will also continue the support of the president's performance contracting challenge. We've already awarded approximately $1.4 billion of awards towards the two billion in the first year of the challenge And and FEMP of course is is is the agency that works with The whole range of federal agencies to enact These energy savings performance contracts And then finally office of strategic programs an office near and dear to my heart Where we do a lot of cool stuff And I'll just highlight our technology to market work where really the focus here is to attract new investors To eere technologies and to bridge gaps in what I would call the US clean energy Ecosystem right and so we will be Continuing we actually just put out a funding opportunity announcement for clean energy incubators Earlier this year. We'll be continuing that funding will be funding a new initiative that we're going to start this year that I think will bring tech transfer out of our national labs to a new level So some really exciting stuff here in the tech to market space in particular Let me close by talking about a document that has certainly been a big part of my life over the last year, which is the first Eere strategic plan In 12 years. Yeah, so the last one we issue the last one in 2002 it occurs to us a few things have changed in the world of energy since 2002 and this is our chance to Define eere and and really clearly explain who we are and why we exist And to describe our our our vision for the future and the role we play in realizing it Which which includes I hope a very clear articulation of the problems we're trying to solve And how we're measuring our success in doing so and we also wanted to connect with our stakeholders. I mean we want to We ultimately want our stakeholders to see themselves in this plan, right? And and because so much of our work really I think can be accurately described as a public-private partnership in fact most of our work And it and it should resonate with all of you So look for that to come out in the next couple of weeks will Announce a webinar about it. Well, you'll you'll see more on this front and on that note. I will Turn it over to one of my colleagues a Lot of information, but I must say I think it's very very helpful to have a Jason walk us through this And I also encourage you to look at ESI's website so that you can see the PowerPoint in in Greater detail because I realize how small this print is so it means that you really do have to focus and concentrate But there are enormous opportunities as as you just heard And I think that it's also really important to to think about what this means as far as the the role of government and and the kinds of investments that are being made the kinds of Progress that's been made as Jason was was talking about and also how interconnected a lot of these things are and I was Also stuck in terms of looking at how many things are, you know Where there is also an integration element in terms of thinking about systems and the integration of those systems Because we really do need to make sure that things really work together So I now want to turn to someone who has become Another fixture at these annual budget briefings and that's to Fred's a scene who is this An energy policy specialist at the Congressional Research Service at the Library of Congress And I think this is is it very important and Fred is backed by popular demand Because he has to answer so many questions for Congressional offices on both sides of the of the hill and And therefore he has to think about the budget what this means the kinds of questions that are going to come up And what are kind of the key aspects in terms of thinking about themes and how and and providing some context for Policy makers and their staffs Fred good afternoon everyone I noticed a lot of you aren't smiling is that because this is such a terribly difficult topic or I'm not sure or just because it's Friday and Thanks Carol for calling me a fixture. I think Well, if you think Jason gave you the whole briefing book on the EER budget request then my comments aim to be a kind of Twitter version of the EER Request and I will focus mainly on the requested changes in funding both in dollars and percent So I won't talk a lot about the programs and what they do Jason's already done that But before I go into the data, I need to make a CRS disclaimer As all of you may know CRS was established by law to be a non-biased and non-partisan policy research agency Thus, I'm required to make an appropriate and dispassionate disclaimer before starting my comments Please know that any visual resemblance based on the size of my nose or my mustache That I'm not related to any media personalities including classic cowboy star Leo Carrillo Old-time comedian Ernie Kovacs nor TV newscaster Geraldo Rivera. Please no relation to any of them Well, clearly you see why I gave up on stand-up comedy and Instead opted for a more exciting career in policy analysis Okay, so let's get on with the CRS fact-checking and budget review Everyone should have a hard copy of the slides in the presentation. I will refer to the slides by number Which is shown in the bottom right hand corner of each slide now if those are shrunk down They may be really hard to so just count through them. It starts with number one and just goes straight through But you will be able to see it on the screen So also note that some slides have a dark blue background. Those are index slides Which lists a group of slides that follows immediately after it. So it's just kind of an organizing technique So let's start with slide to titled outline Which provides an ordered list of the blue index slides which can help you find different sections of the presentation quickly by kind of leafing through So for example slide 3 again one of these blue index slides identifies the five slides that are going to follow on the overview section and Within that section slide 4 on highlights shows that the proposed 716 million dollar increase for eere Accounts for more than half of the 716 million. That's the total DOE requested increase So that's a huge chunk of the change in what DOE is asking for Slide 5 lists the administration's goals for cutting oil imports and for advancing US leadership in global markets for clean energy equipment Unless specified otherwise, I believe these goals are stated relative to a 2010 baseline Slide 6 shows the key national interests addressed by eere's clean energy focus As Jason mentioned international competitiveness is a big one, but climate change and oil imports are also drivers Slide 7 stresses that the budget comparisons employ Differences between the FY 15 request and the FY 14 Appropriation and notes that most figures are rounded off for simplicity Slide 8 describes the four functional groupings or themes of major program accounts that DOE employs to organize the account lines in the FY 15 request Namely that sustainable transportation Renewable electricity generation energy efficiency and corporate management Slide 9 one of the blue slides outlines the section on funding changes by each of the four themes Slide 10 shows that DOE's sustainable transportation theme brings together the vehicles and bioenergy programs Historically these were separated vehicles came through the energy efficiency Appropriations which was a completely different Appropriations stream in the old years, but then later got merged with energy and water So it brings those two programs together with a combined increase of 90 million dollars Slide 11 lays out the 72 million dollar increase for the rest of the renewable energy programs Which are focused on electric power production? Slide 12 covers the major changes For the rest of the energy efficiency programs for which DOE seeks an increase of 241 million dollars Slide 13 lists the changes for corporate management. This is facilities Program direction and strategic programs Slides 14 through 16 describe the major funding changes for specific programs This is probably the level at which most of you will drill down and dig in on Note as Jason mentioned that manufacturing and vehicles would get the largest dollar share of the increases Slide 17 again a blue slide Introduces the next section which provides more details about specific programs Each of these slides covers both goals and funding Slide 18 shows the strategic elements and dollar increases for the manufacturing program As Jason mentioned, this is the big focus and the biggest changes in the budget are proposed for this area The main increases sought for advanced manufacturing facilities Also a small increase is sought for manufacturing R&D projects and of course the two do work together Slide 19 provides a breakdown of the increase requested for manufacturing facilities This is the big guy for this budget request. I think the increase requested is 109 million The largest share of the increase as Jason noted is for clean energy manufacturing Innovation institutes say that quickly five times in a row, please DOE says those institutes support the president's national network for manufacturing innovation I think I read there that four of these institutes are in place already not just Related to DOE, but other agencies five more due to open this this sometime this year and The total goal is for 45 of these institutes all together. So this is what's gonna bring United States into the future with competitiveness on a global scale not just in EERE programs, but many others Slide 20 notes that the main priority of the vehicles program is for plug-in electric vehicles to achieve parody with conventional cars The largest funding increases for battery and electric drive technologies Smaller, but still hefty increases are sought for outreach and deployment materials technology and fuels and lubricants technologies Slide 21 provides some details about the increases for those vehicle sub-programs Slide 22 breaks down the increase sought for buildings energy efficiency The largest increase for emerging technologies hardware would focus on new air conditioning technologies and computer models of building energy use and increases also sought for Rulemaking's on applying sufficiency standards and for general support for state and local efforts in that area as Jason mentioned earlier Slide 23 covers the wind energy request Energy production cost targets are cited for both land-based and offshore wind equipment Previous funding support for offshore wind farm Demonstrations is in process as Jason mentioned This request seeks to provide additional funding to support construction of the three demonstration projects Also an increase to address market barriers Would focus on offshore wind permitting environmental impacts and grid integration as well I want you to note that the last bullet is a mistake, so please scratch that out Slide 24 on solar energy identifies a sixth sense per kilowatt hour target for both utility scale solar technologies That is photovoltaics and conscious concentrated solar power, which in old days was called solar thermal this request emphasizes Manufacturing and the concentrated solar with a reduction for photovoltaics Slide 25 on bioenergy shows goals for drop-in fuels and algae fuels Funding would increase for bio refinery demonstrations and feedstocks would be cut back I think there's some transfer of effort to Department of Agriculture there Slide 26 on clean energy EDPs describes proposals for two new initiatives Sustainable shale gas growth zones and a local technical assistance program. I won't tell you about those you can ask Jason about those later 14 million dollars all together. I think 10 for one and four for the other Slide 27 notes that funding and was requested for two innovation hubs I get a fair amount of questions and so do my colleagues about these hubs from time to time Do e6 25 million for the critical materials hub which I believe mainly supports the manufacturing program and Also do e6 6 10 million dollars to continue funding at the current level for the buildings hub Which is now identified in the budget document as the PSU consortium for building energy innovation For all of you staff folks, I've included some additional reference material that starts after slide 28 And among these slide 29 provides some background on the innovation process and demonstration projects In general the developmental gap between R&D and commercialization of technology poses some key financial risks for private companies Demonstration projects try to help bridge that gap but tend to be expensive and thus very controversial in the budget process Slide 30 a blue slide introduces a section that puts energy efficiency R&D and Renewables R&D Funding in the context of spending for other DOE energy technology programs Slide 31 has a pie chart that shows a long-term view of the relative funding That has supported the four main energy technology programs namely nuclear fossil renewables and efficiency Slide 32 presents a table With the energy technology funding breakdowns for FY 13 FY 14 and the request for FY 15 And then slide 33 presents three pie charts for those same three FY 13 FY 14 and FY 15 Slide 34 a blue slide identifies key national interests that shake the framework of issues for policy debates and Slide 35 lists additional CRS resources that may be helpful to staff that work on these budget issues And finally Just one more CRS disclaimer Many of you know about the famous American commentator Will Rogers When asked about the extent of his knowledge on government policy, he famously remarked that All I know is what I read in the newspapers. I Am today in a direct parallel situation because All I know is what I read in the DOE budget documents So if you have any difficult or tricky questions about the eere budget Please Direct them to DOE's presenter Jason Walsh Thank you Thanks. Thanks so much Fred and now you know why Fred is here every year And I also think that What Fred has done is it provides another really really useful perspective for all of us in terms of looking at the material in the budget That Jason presented so well and but then what Fred does is is in terms of looking at some of these other Themes and I think it's also really interesting always to have it put in context in terms of what does this look like? Historically in terms of where investments have gone and so that we can really see that because I know that lots of times there are a lot of questions that come up in terms of What's being invested on the on the renewable efficiency side versus what's happening on the fossil or nuclear side? And it's really important to sort of make sure that we understand Where where those facts really are? So now we're going to turn for another perspective to somebody else who I don't know whether I'll call Scott a fixture or not but as someone who Has been a very important piece of that's right. He can be a fixture too and but Scott is the The the president of the Stella group which is all about the blending of technologies on the efficiency and renewable side and of course he has been involved in and the technology and policy arena for for many many years and he also is the chair of The sustainable energy coalition of which we both sit on this steering committee. So Scott. Thank you Well as you can see my company blends all these technologies all over the world and of course I work with a lot of new technologies and through the also with the Department of Defense and utilizing them I also am an adjunct professor at George Washington University teaching two interdisciplinary courses on sustainable energy Sponsored by the law school the business school the engineering school and the science part of the arts and science school and As well as chair the steering committee for the sustainable energy coalition Which is composed of the efficiency renewable trade groups the analytical groups and the advocacy groups here in Washington DC So I'm here though not to be a Nice guy. I'm here to be contankerous a little bit. So give me a little rope on that Let me just see. So I do want to cover again what Jason said We've had increasing investment as you can see in the when I started in this field in the 1970s working up here in the US Senate and Frankly the entire renewable energy Private sector investment was less than what the Pentagon may Spent for computer knobs on their mainframe computers That has surely changed now as you can see talking to 244 billion dollars worth of investment Some saying 269 billion of investment a private sector investment in these industries So I want to leave that this is a big set of industries Efficiency has about 300 billion dollars worth of investments a private sector investments globally also rising And if you want to look at the private sector side of their R&D budgets, which is about four or five percent We're still talking over ten billion dollars per Renewables and another over ten billion for efficiency. So these industries are spending Yeah, and in our D&D More than their respective governments. So you need to know it has changed very definitely from from the old days I also want to say that this is this was by put out by the business council But you know when you take a look at 2012 we in and at 17 gigawatts to the grid We are we are producing About equal or more than natural gas coming on as new electricity to the grid. So this is also Astounding from where we were in the old days. So I want you to be very clear on that This is this was just put out in January by the solar foundation and these are the job statistics just on the solar side and you can see an insulation and manufacturing and and and the percentage growth rates from 2012 to 2013 and you can see, you know 21% for over, you know, 21% insulation 23% sales Project development to get projects. So an overall 20% growth rate We're seeing similar things in the other renewable energy technologies and efficiency technologies. So and it is in the Solar side because obviously that we have sunlight in every state of the nation It is very geographically dispersed and I want you to be aware of that And then ACEEEE just put out this study Which I want you to be very aware of and this is really cost today deployed levelized cost of energy efficiency Compared to some of the renewables and traditional and as I if you took my class at GW would know It's always less expensive to save energy than produce it from any resource. This is the now the great chart I'm going to use But I want you to be aware of that that if you want really to increase the penetration rates of Some of the renewable technologies, whether it's electricity thermal or fuels If you're using less it will be far more cost-effective and it'll be far more quicker to do So if you want to make impact whether that's importing fuel or reducing clean air act emissions or climate Greenhouse gas emissions or use of water since energy the conversion extraction use of energy uses more water than irrigation It is our largest water user These are things you need to be aware of So here is the DOE budget and I want to say so Jason is not hurt that it's a good budget It's a thoughtful and good Budget, but I'm not here to compliment you on this budget So I'm going to want to talk to you and I just want to say the devil is in the details I'm going to go through a few of them just to give you some some meat for the this afternoon first of all on the GeoTher I went to every trade group and Said what do you think about this on the efficiency renewable side? And I got about eight answers again most of them support it But I picked the Geothermal one because I sort of liked it the most I thought it was a pretty insightful and they said You know The Geothermal budget's gone up used to be one of the things Department of Energy handed off both Republican and Democrats to you know that in the marine energy budget to get rid of so that was nice concert also concentrated solar and So that's good. It's going up and Jason talked about this new Research facility to to deal with GPS and to be better fine resource assessment of Geothermal resources Very important. If you took my class, you would know a great MIT study which showed conservatively Geothermal could meet 10% of us electricity Conservatively probably twice that amount with technology we have today and that's 24-hour power But I'm not here to talk about that what the Geothermal industry says is hey, you know Yeah resource assessments good and new ton of technology developments good, but the real Barrier in the market beyond tax policy is the fact that there's a lot of drilling risk Yeah, I can identify that resource But what's the risk to get to that resource? what are the tools and so they need better technical analytical market oriented tools and they need that Dialogue with the finance community the people who finance the drilling So we can accelerate drilling and the risks are clear So this is something where? Do we actually did a little more of a Decade ago and now has sort of walked away from that and looking at some other things So I want to say that each of these programs have some key issue barrier issues that need to deal with so that's a geothermal one I Also don't want you to look at budget numbers here. I want you to understand that most of the work is done by the National Labs partnership with the diversities and then requests for proposals The of what they want to industry and it is collaborative I have no problem, but I want you to highlight What I talking about here is the fact that I want you to think about something It takes a year to 18 months to conceive of a need within Department of Energy you need to get OMB sign off you need to get Hill sign off and that takes another year and Then you need to actually Develop the program once it's been approved and actually implement it that takes another year at best We're talking three years Well, this technology is changing very fast just like your laptop and your cell phone So what was a very good thought three years ago and what money is going out sometimes doesn't really touch the edge So we need smarter more agile ways There is one only one program that I really believe has dealt with that issue and that's this manufacturing initiative They have really developed a way to interdisciplinary with the different sectors make it very agile and very market oriented And you know I could see the same thing going with the glass industry and tinted glass and photovoltaics and thin and films and window films I could see the same thing going on with photovoltaics wind and storage systems I could see the same thing dealing with molten salts and combined heat and power and Solar thermal there are a whole range of blending of technology in more agile organic ways and the program needs to embrace more of that They do have sort of a non-invented here syndrome at some of the labs and that also needs to be changed The second issue is small business DOE programs are much better to work at With larger businesses because those are the ones that write wonderful proposals. God bless them And I like medium-sized and large businesses. I work with many of them But in fact in the United States most of the innovation actually comes from small businesses They also employ slightly more than half the people So there isn't the kind of ease and portals for small businesses to interact Unless you're playing the exact game that the lab or headquarters or the university feels is correct There needs to be better portals for the businesses that are in your different states To interact with this program in a much more user-friendly way. Let's put it that way Last oh, and by the way a great article a great report just released by the small business administration on Small businesses role and innovation in the green sector, and I hope you look at that in my presentation lastly While they have technology silos and they do have Some interdisciplinary things going on and the planning needs to be really Done. I think maybe through your strategic office in a different way I noticed that cybersecurity was went down in DOE yet a lot of these energy efficiency and renewable Technologies is exactly what folks like me are doing to have autonomous systems to deal with cyber security Issues and grid resiliency issues. I see a lot of the smart grid work with more on the technology side Not really looking at the resiliency the terrorism the human era the climate issues and change impacts So we need to figure out how to better team the wide and depth and breadth of the eere technologies to solve pressing issues that Other agencies are looking at but we supply the answer. I lastly want to point out that I Have tons of Studies I have the 26 I give to my class I'm happy to share with you that I consider are the critical clean energy studies of the moment We are having through the sustainable energy coalition and the renewable energy energy efficiency caucuses or caulk eye at the end of July our annual Expo here in the house caucus room and EES I will let you know But I hope you come to see the companies from around the country. We're gonna have maps on resources employment manufacturing I want to Disabuse you of the notion that you know everything is made in China You know, I just ribbon-cut a new photovoltaic manufacturing Plan in Miss Hattiesburg, Mississippi We have some of the most advanced efficiency and renewable manufacturing in the world going on here and And it is almost in every state of this country so I urge you to visit some plants come to the expo and Frankly dig in a little deeper and make sure your small businesses and your industries Can feel a part of these programs that I believe is a very good budget and a very good proposal. Thank you Well, I don't know about you, but I think there's a lot of exciting things going on and enormous potential It's hard to kind of have a grasp of all of these things and and how they work together but hopefully you will all feel free to talk to any of our speakers and follow up with us at EES I as well and And I must say that I think that as Scott was talking the The the more that we learn in terms of what is also happening across the country In terms of actions being taken by states by local governments by all sorts of of entrepreneurs and and small and large businesses It is really exciting and it's also important to recognize that If you are for example looking at a wind turbine or whatever, it's you know It's comprised of a lot of components that the supply chain goes across a lot of different states And that's true with regard to all sorts of these technologies and that makes the whole thing in terms of thinking about these maps that I think we all need to Do a better job of developing makes it absolutely Fascinating because everybody's got a stake in these investments and what's going on, but let's open it up for your discussion Obviously this whole area needs to be a continued Dynamic discussion because things are Changing so quickly. It's absolutely incredible. So let's open it up for your Questions comments and if you could just identify yourself, please. Hi, I'm Rachel Levin. I'm a reporter with Bloomberg B&A I was actually wondering if Jason could talk a little bit more about the strategic plan and What the timeline of that looks like for the webinar that's going to be announced Sure I expect that we will release our strategic plan probably the week of April 14th I can't make a commitment there. That's that's sort of an estimate at this point. It will be released in April And as I mentioned briefly in my remarks, I mean this is This is a strategic plan that not only describes what we're doing currently but what we Expect to be doing and focusing on over the next five years And so it it it lays out as I Suggested briefly in my earlier remarks Our mission our vision our strategic goals as an office Our success indicators how we measure success in terms of what we're doing and then really the bulk of it is laying out our strategies and We go into quite a bit of detail With with strategies that are designed to meet each of what our seven strategic goals It also will articulate. Hopefully quite clearly sort of how we go about Making investments We have a limited budget and so we actually have to have a logic model, right for how we invest In our portfolio and make decisions across different technologies, which which actually You know Evolve and come down a cost curve and and then that presents us with a whole set of new choices So that's a little bit more detail obviously When and I can't tell you right now when we're going to do a webinar because we don't have a date yet But we'll we'll be able to provide a lot more information about that and we should actually I should get your card before I'd leave today Yes, John Scheidler from Future Past in Arlington, Virginia Another question for Jason. I noticed In your discussion of bioenergy you mentioned drop-in fuels and this this term is Very important to a lot of people because it means that The supply chain can be used to distribute the fuel without a lot of modification and so on However What we're also learning from the experience that EPA has had with its renewable identification number Program that when there's a financial incentive to Produce biofuels you may get some bad actors Committing biofuel fraud and and not selling biofuel when they when they say that they're selling biofuel So my question to you is Have you considered? any Approach or initiatives to help Deal with the the need to track The sustainability information associated with bioenergy to prevent Fraudulent actors and also to have a good accounting of the extent to which bioenergy is integrated into this supply chain, I can't say that we have and And it's a little bit out of our our mission space in terms of our bioenergy technology office we actually We we play an enforcement role very rarely Within our office. I mean we basically have three buckets of work, right? It's the R&D work, which is all about Driving down cost improving performance It is the what I would call the testing and validation work, which is the demonstration some of which I told you about here The offshore wind demonstration being a classic example and then their whole set of market barrier reduction activities we engage in enforcement is typically handled by Our colleagues at EPA and in other agencies and they of course get a lot of love for for that You you pose an interesting question I don't know if my colleagues within the bioenergy technology office have ever considered whether we you know We can interpret our mission space accordingly I think you're raising a real issue, but it's not really something that we've considered part of our mission space Other questions comments Okay Sorry Jason you're getting bombarded, but Jordan Blackman from energy horizons clean energy clean technology consulting With regard to the clean energy manufacturing initiative What are you know, I know there's this national network of manufacturing institutes But what are some of the ways that you're you're getting the renewable energy technology programs to collaborate more with the advanced manufacturing office You know to work on planning and implementing competitive You know increasing the competitiveness of clean energy manufacturing Yeah, it's a good question and I Think there's quite a bit of work between our advanced manufacturing office and our other technology offices Primarily around what we would consider to be the Platform technologies right cross-cutting technologies that are applicable across a number of different Technology spaces and industry sector, so I actually I gave the example Of our carbon fiber work right which obviously our advanced manufacturing office does a lot of work on but that you know That is I mentioned the applicability within the automotive sector I mean our our our vehicle technologies offices pitching in money for a you know Carbon fiber demonstration facility that that we support at Oak Ridge National Laboratory, so We're doing some very similar things within our solar office where again our advanced manufacturing folks and Our solar folks are working together in a very collaborative way to look at ways in which we can In drive down technology cost in a number of different ways You you mentioned the clean energy manufacturing initiative, which is really an umbrella initiative that tries to pull together all of our manufacturing work across our technology offices to To kind of provide a coherent approach to how we're approaching these things And so that's very central to what we're doing with that particular initiative Yeah, if I may add to that since I work with the program is a Lot of the issues facing the renewables and particularly relate to material science and new ways to create new Materials and if you're looking at offshore wind and the marine energy side, you know water is a very unforgiving medium and You know seven hundred times more dense than wind and salt and acid in it among other things, so They are really developing these material science collaboratives with the industry At some of these centers same is true for battery research and same is true for Thin the newer kinds of the nanotechnology thin films that are coming out in photovoltaics So we're seeing these centers are going to be very important To to be able to take technology that's hidden or being pushed by one industry niche and and making it relevant and open to these other niches So what I was whining about in my presentation is exactly what this program is doing and doing potentially quite successfully Obviously all this is really critically important in terms of thinking about The the enormous challenges in terms of global competition Absolutely, and it really makes the whole area extraordinarily exciting and critical absolutely Okay, thank you. Thank you My name is George Hutchinson. I work with concurrent technologies corporation. I'm gonna try and fire off two quick questions Jason and Scott if you could follow up on it The question is you know, it looks like there's a pretty robust amount being asked for in the vehicle technology space and currently the Department of Defense is is executing a large vehicle to grid program across several DOD installations and There's some promising results burgeoning Which would show the effectiveness of electric vehicles being used in an ancillary Market sense to help premium eyes the the you know lessen the cost of the battery bring down the overall cost of the vehicle and then help advance Electric vehicle penetration into the into the states that are selling the electric vehicles So it looks like it was some promising results My question is is the vehicle technology's office with its portfolio. Will they be looking at any specific vehicle to grid? technologies And then for Scott Because you have experience with the DOD DOE interface and in the existing mo you do you see Promising developments in that space and could that be applied potentially in this area? Thank you I might answer unfortunately fairly short. We I mean we are interested in that We have not done a lot of work in this area There is an issue of what of no pun intended But what lane we drive in here in terms of very good Jason very good In in in terms of other what other what other federal agencies are doing in this space It's a great question and you know not only is it this collaboration a way to Reduce technology costs, but again it addresses other issues away The reason military is actually interested in it came out of September 11th. Frankly is that if you have a grid failure Can you keep the activities of the bases going and not only just driving around vehicles? but using it to stabilize and harden in some cases back up critical functions and We're just at there at the cusp of understanding the benefits of this But this answer is another problem and I'm not putting Jason on the spot for this this really has to go a little bit higher and and Something I've been doing with the quadrennial energy review that's also coming out of DOE and and dialogue with the White House is You know you have a whole Homeland Security agenda. You have a military agenda. You have a energy and technology agenda You have an environmental and emissions agenda and there are times and this kind of a grid connected vehicle issues Where all those issues? Merge very neatly together. How do you drive it? And how do you draw on the resources of the different agencies in a collaborative and Coordinated and supporting manner to get there faster not slower Now that's easier said than done, but is it very important? It is a critical issue and we really need to figure out a way to do that better and we actually we need some better understanding of that up here on the hill and Because you know and from both parties doesn't go against anything either party stands for to help drive this agenda a little further pun intended as well And this is also an area in terms of thinking about the whole office of Electricity and resilience absolutely where all of this comes together in terms of thinking about the value of ancillary services And I know that the certainly the former chairman of FERC of the federal energy Regulatory Commission was extremely interested in this whole area and that there has been a lot of work Under way on this too because you've got a lot of different players, but I know that PJM In terms of a local or I should say regional system operator Has been very very interested in that and doing a lot of work with Folks out of the University of Delaware for example in terms of really looking at that and how you can bring some of these things together And I think that's happening in a number of other places around the country as well So but a lot to do in a lot of moving pieces to Unintended there. There you go. Absolutely. We just can't help ourselves. We can't help ourselves Okay, go ahead. Sorry Emory You're getting a lot of exercise today. It's great. Good afternoon Roy Williams with future past We're of course talking about the worst constraint of all and that's the federal budget process But there were some mention of rares platinum and other raw materials that are part of our transition And I was just curious if the panel had any comments on other particular constraints either that there's not enough of That raw material on the earth or that they tend to come from countries that are difficult to get a Reliable source of those raw materials and how that impacts Well first I want to laud DOE for for looking at rare earths and other things But what we saw from that a few years back China announcing they were gonna curtail red earths and of course it had repercussions over the world that they didn't even expect and they sort of back down on it, but it was actually was a gift because all these metals and materials are in a global market and Even if it's not a willful withholding it could be just that there's a war going on or we there's a drought And we can't mine it. I mean there are a lot of reasons why there will be shortages at different times for critical materials Wouldn't it be smarter of us to? Anticipate that that's going to happen Educate our industries work with them get our national labs and our universities to say Let us confront this. Let's bring the best minds to bear and then and let's have options It's really having options Some of it may never be replaced per se Except in certain times and there are tradeouts and so just like drop-in fuels You want other kinds of drop-in materials into the manufacturing process whether it's turbine technology or anything else so DOE is aware of it, and they're starting the Department of Defense is very aware of this as well I get asked about this and the systems. I'm dealing with with DOD Supply chain not just where it's manufactured, but the materials for that manufacturer is on their mind every day That's what scares them. So This is going to be a very very critical issue and many of you in the audience From all your different perspectives have a lot to add to that dialogue and Preparing because a lot of these industries Except what strategic planners within companies like Jason at DOE Don't think about this stuff unless the price goes up. That's too late Yeah, so I'll just I'll answer that quickly in a couple of different ways I I spend most of my remarks in terms of our advanced manufacturing office budget request on on the national network of manufacturing innovation and some of our institutes related to that we also have a Critical materials hub Which is based at our relatively small national lab in Ames, Iowa Which has really hit the ground running over the last couple of years in terms of developing Some some alternatives to critical materials. I think they've they've already got something like nine patents for some of the R&D that they have worked I Will also just sort of echo what I said earlier I mean some of what we do in the R&D space is looking for alternatives within particular technology applications, right? So Are I mentioned the That our vehicle technologies office is looking for for alternatives particularly in the EV space for some of the critical materials that are used there So we try to come at it both from an R&D standpoint Well an R&D standpoint but coming at it from slightly different vantage points. I I would just add that That interests are or that topic has received quite a bit of interest up here on the hill There have been several hearings with regard to looking at rare earth What you know, what are the some of the geopolitical? Issues involved how do we you know, what are the options for moving forward and we've also done a couple briefings on that Because of congressional concerns that are raised. So there is information on a website from those briefings as well and Just a couple other points I would mention because I think that we had some of the folks from Ames at at one of these briefings, but but in addition to thinking about Increased production of rare earth Here in the US because that also has stepped up as a result of sort of the scare after China made those Comments several years ago and and in terms of looking for other kinds of alternatives at the same time There's also a very very important issue in terms of recycling the materials that are in all of this e-waste So that because it really can create a lot of damage let alone a huge Wasted of resources rather than reclaiming it and reusing it We'll take if there's one more question. Okay back here Hello, my name is prop and I wanted to know How tentative is do we in regards with hydropower making it as a renewable power or not? Cuz I see it at certain conferences that you know Do we states a hydropower as non renewable and at certain times they see it as renewables So has there been like a tentative decision made on hydropower being as renewable or as a wrong renewable in upcoming years? We are very unconfused about about whether hydropower is considered a renewable We it is a renewable energy resource and it's and it's a very important one because it is baseload power absolutely and the the focus of our initiative on hydropower is to Take advantage of the fact that we've got 80,000 dams in this country right only three percent of which Are actually generating hydroelectricity and so that there is a lot more we can do to Generate electricity from our existing infrastructure, which is a hell of a lot easier than building new stuff And there are ways of doing it I mean we've got a for example a fish friendly turbine that we have been developing with our private sector partners for a number of years That that we want to put out there in the field and and and start deploying in really significant ways, so We we we are not at all confused about hydropower It is an absolutely critical part of the renewable energy resource mix and DOE has also done turbines that are just more efficient meaning for the same Site you're just getting more power out of it. How great is that? Why wouldn't we want that and work under lower water conditions as we experience? Changes in climate and and have higher droughts so that you're still able to to get outputs with with lower Lower head in that behind the behind the dam, so it's very exciting as as well as being more fish friendly so that it's sort of a whole again Multiple benefits all coming out of that very very important research in development of these of these turbine We've also I mean I should mention stream reach as well and where we've been developing more modular systems Which have a lot of potential and very I mean we actually call it low-impact New development or Lynn which has I mean just the the resource potential in streams Of course, there are a lot of streams in this country is is is significant So we want to really be driving that more as well. Yeah a lot of interesting stuff in terms of marine kinetic And looking at different kinds of conduits that can also provide power It's just amazing when you start to look all of the different places that you can pick up energy that can be Tapped which just makes everything much more efficient. So I want to thank all of you for coming I want to thank our speakers very very much appropriation season is really underway now and There are a lot of appropriations hearings that are happening. I know that members have to get their requests in In fact this next week in terms of looking at their priorities So there is a lot of activity around budget asking questions I'm sure that Fred is probably getting a lot of issues raised Fred. Do you want to say something about this? There was a recent newsletter article that mentioned that And already there's some skepticism whether they can complete all the 12 appropriation That's a shot regular order, right, right So we will see because it is once again going to be quite a year So I want to thank all of you. That's very very helpful terrific job. Thank you all very very much. Thank you And the materials again will be up on EESI's website So please feel free to contact myself or or any of our staff with regard to questions that you've got or of course Any of our speakers. Thanks You


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It's the access that it gets us to important stakeholders that we would not have had an access to before. I think that in and of itself has been so huge and transformational for us in startup. You know that these are some of the top people in the world that you can connect with to try and identify people who get the paradigm shift and who've placed that at the heart of their strategy, whether as a business or a foundation, but really place that internet strategy and not as a peripheral thing. I think that's really where the value is for people like us at DeSolanator. I think the uplink connection has been huge for us because we always have international ambitions. You're always hoping to gain some connections with World Health Organization and get introduced to different health care systems and I think like uplink has done a great job with the excellent process. Being part of this cohort has been absolutely amazing in making sure that we are in touch with the right people again at the right time and ensure that our technologies and services are able to not only help with COVID-19 but in any way that we can impact the overall scientific and medical community. I really think that uplink has the opportunity to do a tremendous amount in connecting in supporting entrepreneurs who really are the vanguards, the entrepreneurs, the ones who are out there pushing for change and reimagining our world. It has to be important stakeholders that we would not have had an access to before. I think that in and of itself has been so huge and transformational for us at Sata. You know that these are some of the top people in the world that you can connect with to try and identify people who get the paradigm shift and who have placed that at the heart of their strategy whether as a business or a foundation but really placed that into their strategy and not as a peripheral thing. I think that's really where the value is for people like us at the Solonator. I think the uplink connection has been huge for us because we always have international ambitions. We are always hoping to gain kind of some communication connections with World Health Organization and get introduced to different healthcare systems and I think like uplink has done a great job with accelerating that process. Being part of this cohort has been absolutely amazing in making sure that we are in touch with the right people again at the right time and ensure that our technologies and services are able to not only help with COVID-19 but in any way that we can impact the overall scientific and medical community. I really think that uplink has the opportunity to do a tremendous amount in connecting in supporting entrepreneurs who really are the vanguards, the entrepreneurs, the ones. Welcome everyone. Today you're joining us for the Davos Agenda of the World Economic Forum and you're joining the panel called Building Crisis Resistant Healthcare Systems in a Post-COVID World. I lead the Access to Medicine Foundation and I'll be moderating the session today. Tomorrow we'll be launching some more results of the Access to Medicine Index on how the pharmaceutical industry has made enough steps to address some of the issues of access to health globally and how they enable or hurt health systems with their actions. But today we're going to discuss resilience of health systems so please join me in giving a warm welcome to our panelists. Let me introduce them real quickly. Jeff Martha, who's the chairman and chief executive officer of Metronic. Helen Clark, who's the Prime Minister of New Zealand from 1999 to 2008 and co-chair of the current independent panel for pandemic preparedness and response. Frances de Souza, president and CEO of Illumina and Mark Harrison, who's president and CEO of Intermountain Healthcare. Now many of you, welcome to all. So many of you would appreciate that the issue of importance of crisis resistance health system has been extremely acute in the past few months to a year. So today we're going to discuss a little bit more about what does it mean to build healthcare systems and strengthen them as we're learning from what COVID has done to our systems itself. So to kick off today, I wanted to kind of reflect a little bit about the parallel session we had this morning. Some parts of this morning covered key issues on how we need to see health as an asset, improve trust and collaborations and prevent the most vulnerable populations left behind. So carrying on in that front, we're going to discuss today a little bit more on some of the core elements that make systems resilient. So just to kick off, Helen, maybe tell us from your experience what do you think are the core elements that make health systems resilient and how can we invest in health systems differently to ensure that these are more crisis resistant? Thanks very much. And my first point was going to be that often discussions on resilience are quite theoretical discussions but sadly we have a very real life experience that we're all living through now where we see that our health systems weren't particularly resilient at all in so many cases but we also see that the situation we were confronted with needed much more than health systems per se to be performing to be able to respond well. So the key thing now and I think this is also central to the concept of resilience is to learn from what has happened so we can be better prepared if and when this happens again. Now investing in resilience in a system, investing in preparedness for what might happen is a bit like attending to the dog which may not have barked. This dog has barked very, very loudly but often I guess when health ministers are lobbying for scarce resources in a budget the attitude may be well it hasn't happened so why do you need to invest in this? Well we now know that being prepared is absolutely critical and part of being prepared for the kind of shock that our health systems and our societies and economies have been going through in recent times is we do need flexible planning around adverse events. In this case a pandemic we need foresight in our health systems and our governments to be able to envisage what the possible threats and risks are and to be able to plan and mitigate around those. In the case of this current pandemic the number one objective has really got to be to try to curb transmission but so many systems have got out of the way of talking about and communicating with publics about the most basic public health measures and to have a system that can really perform in these circumstances and engage public, consistent messaging, good communication, clear leadership. These are so important and they may not be health specific but your health system won't be able to perform if it's not reinforced by all of that. So I think one thing we've very much learned out of this pandemic is a resilient health system has to be one of those characteristics. It has to maintain other basic capacities to test, to trace, to quarantine and now we'll be faced with this huge exercise of mass vaccination on the scale not seen across age groups as well. So all of this I think has been very taxing for our health systems as well and don't have time to go into it now but we've seen in the response how important universal access to services is. Universal healthcare is important but insufficient in itself but if you don't have it and you're faced with circumstances like these, the most marginalised will miss out and that will impact then on the whole society because none of us are safe. None of us are safe until all of us are safe. I think we've also learned a lot during this pandemic about the need to plan for health system or health service continuity because when we go full trust after a pandemic other services can fall by the wayside including in the wealthiest of countries. So much to learn from that. We've learned that vulnerable populations need access to social protection otherwise it's hard to observe some of the strongest provisions like lockdowns. So as I said often we can have theoretical discussions about resilience but this real life experience has caused us to zero in on what are the whole range of factors which would make us more resilient to the kind of extraordinary shock that we've been living through. Great thanks Helen for this. I mean just a quick follow up on this. The panel has received numerous urgent requests from prioritising vaccine delivery and resource poor settings and issues like the lack of medical oxygen which is an essential medicine in name has been already a problem for many years exacerbated by the COVID-19 pandemic. From your experience how can governments engage the right partners to solve these issues when they're in the middle of a crisis? I mean becoming less dependent on goodwill of others and have more security of success. One of the learnings from this has to be to be prepared on an ongoing basis. I actually think every country should be doing the sort of review that the World Health Assembly has asked for of the internationally coordinated response because we just weren't ready in so many respects. It's very hard to build those relationships when you're on the run. What I would say is there has been a tremendous amount of goodwill from private sector, public sector, third sector, fourth sector to come to the party and help in the middle of a crisis. But it's been responses had to be very rapidly assembled. I think we need to go back and look at what's the long-term planning here? What relationships do we need to deal with the worst that life can throw at us? I think that you've touched on an important point that the agility is something that we've counted on in order to address this particular response. Jeff and Francis start with Jeff for addressing this. We've seen numerous initiatives that have emerged in response to COVID-19. How has the private sector engaged in this response, including your company? And how can we transform its to a more sustainable approach so that we're more future-proof when it comes to improving health systems? Sure. Well, I'll hit on a couple of points that I think are obvious. And there's some great examples. And then a few that may not be so obvious. The two that jumps out, you mentioned agility. I'd say agile innovation is one area where the private sector really helped. I mean, obviously the whole story about the vaccine is the multiple vaccines and the speed in which they were developed is truly amazing. Beyond that, in the sector that Tronic plays in medical technologies, there was again innovation played a big role in developing, I'd call it like remote and virtual capabilities and enhancing those very quickly. Whether it be for patient monitoring in and out of the hospital, device management, whether it be remotely managing ventilators which we manufacture from outside of the ICU. So health care workers don't have to enter the ICU to remotely managing patients that have medical devices to keep them outside of the hospital. So people with pacemakers and implanted defibrillators that normally would have to come into the healthcare system every couple months to get the devices checked or reprogramed to do that remotely, so to keep the hospitals free of these types of patients so they can be able to COVID patients. And also, remote training and medical education doing this virtually, and things like getting back to the ventilator example, creating training venues, virtual training venues so healthcare workers knew quickly how to work on all types of ventilators because they were working on new ventilators in many cases they weren't trained on. So I'd say Agile Innovation is a big one. Second one is supply chain working with, there's a lot of work that went on in the private sector, working with governments to keep supply chains open. Some of it was advocacy and explanation. For a while there, on the ventilator side of things, there was a period of time back in April-May where governments were considering not just behind states but also in Europe, some nationalistic moves that would have really hurt the movement of ventilators around the world and I think industry helped to keep those, through explaining the impact of what those would do, keep the supply chain about the borders open. And I think just collaborating across different industries to help the supply chain, to source critical parts that were in short supply or creating surge capacity like in the case of working with contract manufacturers to create surge capacity. And again as the Prime Minister said before, it's hard to do this when you're on the run and it would be better to do this in advance but we were able to quickly create not just improve the production of ventilators by five times in just a matter of months but within our own walls at Medtronic but working with contract manufacturers to increase the capacity of orders of magnitude. Or like working with companies that aren't healthcare related like SpaceX for example to source critical parts for ventilators. I mean they're definitely a unique bedfellow for medical technology but it worked. And so these are things, the innovation, the supply chain, not just ramping up the capacity but partnering with other companies even outside of healthcare to improve supply chain and provide surge capacity. And then areas that I think that weren't as well discussed during the pandemic was just even the allocation of supplies and equipment. Doing this based on need. I mean they're really during the pandemic even within countries it was difficult and working across countries was there was really no, they're really at least in the Medtech space there wasn't much in the way of help if you will from the international governments to help make these supplies. And so I think private sector is a good job doing this and doing it based on need and filling a gap that was there. And then finally distribution. We've got field representatives all around the world and every hospital and it may not be the most efficient way to do it but it is agile when you are in a crisis getting these critical supplies down all the way to the patient at the right time industry played a big role. So there's a lot of areas and I think going forward though and the Prime Minister started with this in her opening remarks was in a trust and collaboration to make this more resilient. I do think we need industry and public sector and the health systems need to work better together. And I think industry needs to be part of the conversation earlier on. We've got to break down what I would argue is still a bit of a trust barrier and really move to a short list of partnerships versus a list of long list of vendors because in a crisis the vendor transactional relationship doesn't work. And so look I think the different segments whether it be a hospital and an industry player like Metronic and we've got to start communicating on a more strategic level versus through RFPs. And finally I do think as we move forward we're talking about continuing to prove outcomes, continuing to lower costs and at the same time improve access. Technology is really the only way you can do this to do these what seem to be diametrically opposed forces sometimes. Technology has to be part of the answer. So I think going forward technology, partnerships with industry you fully leverage the technology to drive these three things at the same time. Great thanks Jeff for this. Francis what are your thoughts on this and how do you actually transform some of the efforts that you've been making into a more sustainable approach especially when you think of other companies around this sector? Yeah this pandemic has highlighted that a deep and effective partnership between the public, private and not for profit sectors are essential for successful global health. The private sector brings a number of things to the equation specifically innovation especially around technology, the agility in deploying that innovation expertise and also just experience. We had work in over 130 countries around the world. We have partnerships with health systems in those countries and that's really played out in this pandemic. We were called into Wuhan in December 2019 to work with the local health authorities to try and identify the causative agent behind what was then an ammonia of unknown origin and we were working then through January with the Shanghai Public Health Clinic to sequence and then publish the first viral genome of SARS-CoV-2 and since then we've been working with CDC's and health systems around the world to identify the mutations in the virus and watch how the virus is spreading. So we've played an important role in genomics has played an important role in the identification of this pandemic and then in the surveillance of how this pandemic is spreading. We've also played an essential role in the development of these new generations of nucleic acid vaccines and therapies. The Moderna team and the BioNTech team depend on genomic sequences to develop their mRNA vaccines. In fact, Stefan the CEO of Moderna talks about the fact that they've never really had a live virus on their campus. They've really relied completely on the genomic sequences coming off aluminum machines to develop these vaccines and so we've played the private sector has played an important role in terms of helping develop the therapies and the vaccines to fight this pandemic. There's an important surveillance need right now to watch how the virus is mutating. We're seeing the emergence of new strains and mutations around the world, you know 501 YV1 in the UK, V2 in South Africa and around the world and it's essential we monitor the mutations of this virus for a couple of reasons. One, it'll tell us whether the tools we're using to fight the pandemic, whether it's the diagnostic tools, the PCR tools or the therapies, the vaccines and the therapies will continue to be effective and that it's essential we know that and so we should watch how the virus is mutating and then test our tools and our vaccines against the new mutations and companies are doing that and you can only do that if you're monitoring the mutations. In addition, understanding how the virus is mutating and watching what strains you have in your community is essential to drive policy decisions and public health policy decisions so for example, if in your community you see that the infections are coming from the outside then an effective policy decision could be to actually shut travel for a while but if you're starting to see that the strains are local strains and that you have community-based transmission then stopping people from coming in isn't really going to help that much and so understanding the spread of this virus geographically is essential from a public health policy perspective and so it's a surveillance need that we've been able to help with as a private sector company. It's a therapy and vaccine development need. It's also a need around research and one of the things we are learning is that there's a big spectrum. It's very different how people react differently to COVID. For some people, there are almost no symptoms and for others, it's fatal and we're really doing research to understand what are the genomic drivers of that difference in reaction and that over time should help us prioritize people that need the vaccine first or need the protection or people who need hospitalization and scarce resources and so there's a lot of work around the research behind both the virus and its mechanism of operation but also human genomes and what causes susceptibility and then finally there's a huge need around testing and so whether it's PCR testing or sequencing based testing and private sector sort of stepped in to really drive a surge in testing capacity and help roll that out. Overall as we look at the stories of this pandemic we're seeing that there's a transition to a new model of healthcare that's more proactive, more targeted, more personalized and more connected than ever before and again it's going to be essential that there is a deep partnership between public, private and not-for-profit sectors to deliver on this. Great, thanks Francis for this. Mark, I think you've already can see that multiple people are talking about the power of technology to amplify access to healthcare and at least efficiency and cost. So how do we use technology better and invest in this in order to benefit global populations? Is this truly able to solve the global access to health challenge or only a few patients truly benefit from this? It depends Jay. First of all, thank you and boy am I in the unenviable position of following three really smart people at their great comments. I think that technology is just a tool in the toolbox. And you know, the great philosopher Mike Tyson said everyone's got a plan until they get punched in the face. And I think that the pandemic has really proven Mike to be right. Everyone had a plan for how they were going to deal with things and then all the rules got turned on their head. And what you've heard about private public partnerships and robust supply chains and nimbleness is extraordinarily true. And one of the things that's most impressive is how quickly things like evidence based medicine can change and how quickly and be incorporated into day to day practice and how quickly tele and digital and AI powered tools can be put into place. These work if incentives are aligned. If they're not they become tools for rich people who would probably do fine anyhow. And I think it's really important to make the distinction between health systems and health care systems. And if we focus too much on health care technology, whether it's hospital at home or whether it's remote monitoring or whether it's remote visits. They really become the benefit of the rich only. The pandemic has actually allowed us to understand how to touch poor people via technology much more effectively. And as our school based clinics here in the intermountain west got shut down because kids weren't in school anymore. We realize that the people who are particularly deeply affected were in our brown and black communities. And here in Utah a lot of these folks are Latinx. And what we've done instead now is we've we've tele-enabled these nurses clinics and families can come in and they can get even if they don't have their own Wi-Fi or cellular access and they can get distance help without exposing themselves to crowded waiting rooms etc. So to answer your questions succinctly, I do think that digital and tele AI powered tools become essential to the democratization of health care and more importantly preserving health. But you need to look upstream and understand whether the social determinants of health are met so that the most vulnerable people have access to these tools. Great, thanks for that. I'd like to tell everyone that they should stay on the session as we end the public live stream in about five minutes and we'll move to a private 30-minute discussion where I can take your questions and the panelists will be able to answer them. I think I wanted to put just one question back on the table back to Helen. It's clear that choices made at both national and sub-national levels and what policies and measures are meant to be implemented by whom and when have shaped the severity of the epidemic in every country. As co-chair of the panel, we know that the probability of new emerging infectious diseases to become pandemics is also a real threat. So could or should we develop accountability systems for nations and industry to prevent new pandemics? Helen, I think you're muted. Sorry, that was beyond my control. I lost track of the questions. I was flipping with that. So sorry, Jay, repeat it again. Yeah, sure. Should we develop accountability systems for nations and industry to prevent new pandemics? How do we make sure that we're ready for the future? Well, one of the things we're discussing is what changes you might need to the international health regulations and the obligations we accept for ourselves and the commitments we accept for ourselves as countries in the international system on these things. At the moment, it very much depends on countries doing the right thing. Reporting when they should act, when they should, following the best advice and so on, and clearly that doesn't always happen. The problem in the international system is, yes, you can try to negotiate stronger conventions and regulations, but if people are not of a mind to abide by them, will they sign up to them in the first place? The whole global health system has been a bit of a balance that WHO, for example, is quite underpowered to do the job expected of it. It can't inspect as a right, it doesn't have access as a right and so on, but would it ever get that right? Would nation states concede that sort of sovereignty that's the $64 question? Look, to cut to the chase, I think that this pandemic is for global health what Chernobyl was to the international controlled system over nuclear materials. Now, when Chernobyl happened, the IAEA got new powers, which were quite significant. Will this be this moment for the global health system? Will the WHO get the power and sovereignty that it needs to hold nation states to account? With respect to the private sector, well, the issues are a bit different, I think, but I think it has been fantastic the way the private sector has rallied, particularly around the innovation that we've been hearing about today. You know, the genomic sequencing, the innovation in testing, innovation in a whole range of treatment and vaccine development has been spectacular. Because this isn't going away any time soon, I think that advances in therapeutics need a lot of attention now and private sector innovation and drive is going to be extremely important in that. But we're all in it together, public and private, and I've seen my country including my own specific platforms put together to engage the private sector and just ensure that we're all rowing in the same boat to the end which we want, which is reducing transmission and trying to get our societies and economies back to some sort of normal. Great, thanks Helen for taking that up. So far we've actually spoken about how we need the right amount of foresight, going beyond the theoretical framework, looking at ensuring communication, leadership, and a continuity of a strong response. We've spoken a bit about the agility of the industry and the agility of governments to act when needed. Also, agile innovation, improvements in supply chains and distribution systems. We've spoken briefly about the value of collaborations and the ability to step up when needs to happen and how multiple public and private partners have rallied together in the response, including in testing and delivery of much needed products here. So I'd like to just put a few words here that the World Economic Forum has entered a partnership that's been initiated called the Partnership for Health Systems Sustainability and Resilience PHSSR and it's initiative out at London School Economics, the World Economic Forum and AstraZeneca and it's this will be used to identify transferable solutions of new models of care, innovative financing, with the greatest potential to support the reduction to the world. So if you'd like to hear more about this, please reach out to the World Economic Forum and follow the discussion.