EFFICIENCY LEGISLATION GETS BIG ENDORSEMENT

Proposed House Legislation Would Reduce Nationwide Energy Use 10%, Doubles Savings From 2007 Act
April 21, 2009 (American Council for an Energy-Efficient Economy)

"Pending federal energy efficiency provisions could reduce U.S. energy use by 10.6 quadrillion Btu's, about 10% of projected U.S. energy use in 2020…These energy efficiency savings are more than the entire current energy use of the state of California, and are larger than the annual energy use of 49 of the 50 states. These savings are more than triple those of 2005 energy legislation and about double those of 2007 energy legislation…

"The analysis examines the energy efficiency provisions in the “discussion draft” of the American Clean Energy and Security Act (ACESA), authored by Representatives Henry Waxman (D-CA) and Ed Markey (D-MA). This bill includes a variety of energy efficiency and renewable energy provisions as well as a cap-and-trade program to reduce emissions of heat-trapping greenhouse gases…"

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"More than half of the savings in the bill comes from the inclusion of a Federal Energy Efficiency Resource Standard (EERS), which would require utilities to reduce electricity demand by 15 percent and natural gas demand by 10 percent by 2020. This provision alone will create 222,000 net jobs and prevent 262 million metric tons of greenhouse gas emissions, and is a key policy for achieving the savings possible from energy efficiency.

"The bill also includes major savings from a number of other programs…[1] Retrofit for Energy and Environmental Performance (REEP) program, to promote comprehensive energy efficiency retrofits for residential and commercial buildings, which would save consumers an estimated $5.9 billion dollars in 2020…[2] A provision requiring states to establish goals for transportation sector greenhouse gas emissions reductions to ensure an absolute decrease in emissions after a designated year…"

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"According to [THE American council for ACEEE an energy-efficient ecnomy (ACEEE)], there are a number of ways the bill could be improved to maximize efficiency savings. First, the current draft of the bill does not address allocation of income from sales of emissions allowances…Second, the bill should include a provision to improve industrial energy efficiency similar to S. 661…To complement the industrial centers provision in S. 661, the bill should also establish a network of Building Training and Assessment Centers. In addition…[and] further maximize savings and help with energy costs in low-income housing by including a provision to help fund retrofits to multifamily housing.

"…ACEEE’s studies of energy efficiency’s potential indicate that current technologies can cost-effectively save 25-30% of total energy use, and that new technologies could increase the available cost-effective savings."