Will high energy prices give Americans more incentive
to conserve? Citizens will, invariably, reach their
limits. And a bill now pending in Congress aims to give
consumers and manufacturers a push so that they reach that
tipping point.
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Ken Silverstein
EnergyBiz Insider
Editor-in-Chief |
The goal of the bipartisan measure is to promote energy
efficiency in vehicles, buildings and consumer and
industrial equipment. To do this, the legislation would
promote the development and use of advanced lighting
technologies while expediting new efficiency standards for
appliances and industrial equipment. It would also
facilitate high efficiency vehicles that use advanced
batteries and set goals for cutting gasoline consumption.
"The Energy Efficiency Promotion Act will reduce
consumers' future energy bills by getting more from the
energy we produce," says Sen. Jeff Bingaman, D-N.M, author
of the bill along with Sen. Pete Domenici, R-N.M. "High
energy prices and the threat of global warming are very
much on Congress's agenda this year. This bill is an
effective step toward addressing both problems."
In the transportation area, for example, the bill sets
a goal of reducing gasoline use, compared with currently
projected levels, by 20 percent by 2017, 35 percent by
2025, and 45 percent by 2030. The bill also sets a goal of
improving the nation's overall energy productivity,
measured in gross domestic product per unit of energy
output, by 2.5 percent a year by 2012.
In the lighting area, the bill states that "national
policy can support a rapid substitution of new,
energy-efficient light bulbs for the less-efficient
products in widespread use" to achieve annual savings of
$18 billion, 158 million tons of emissions, and the amount
of electricity produced by 80 base load coal-fired power
plants.
On the appliance standards alone, the bill's proponents
say that it would provide the following savings:
- Electricity: At least 50 billion kilowatt hours per
year, or enough to power roughly 4.8 million typical
U.S. households;
- Natural gas: 170 million therms per year, or enough
to heat about a quarter million typical U.S. homes;
- Water: At east 560 million gallons per day, or about
1.3 percent of total daily potable water usage, and
- Dollars: More than $12 billion in net present
benefits for consumers.
"Advancing energy efficiency through federal policy is
a `win-win' for Americans, in that such measures can
deliver substantial monetary savings to consumers and
businesses -- both directly and by lowering
taxpayer-supported federal and state energy costs -- and
can substantially reduce global-warming emissions," says
Alliance to Save Energy president Kateri Callahan.
Government's Role
Greater conservation makes the most of national energy
resources, reduces the costly results of energy shortages,
lessens our reliance on energy imports, and minimizes the
impacts of pollution. But some question the role of the
federal government in this process, noting that the free
market should be the determinate of whether new products
with bells and whistles become commercially viable.
Sterling Burnett, with the National Center for Policy
Analysis in Dallas, says that if people want more
energy-efficient household appliances or insulation
systems, they can buy these products. He points to
Denmark, which mandated energy efficient appliances in the
late 1970s. While energy use in new washing machines and
new freezers dropped 25 percent and 31 percent,
respectively, from 1978 to 1986, he says that total
domestic consumption in electricity rose by 20 percent
during the same time period.
"Greater efficiency leads to increased energy
consumption, because increased efficiency lowers costs,
which makes goods more affordable -- increasing demand,"
the center says while Burnett adds: "I have problems with
government forcing these choices through tax policy,
subsidies or mandates."
But, the American Council for an Energy Efficient
Economy counters that conservation can be an effective
resource for reducing peak demand as well as overall load.
It has a study documenting how energy efficiency programs
can deliver savings during peak demand periods when the
power grid is most stressed.
Indeed, it emphasizes that everyone has a role to play
and oftentimes it involves simple steps such as turning
off lights when leaving a room. Other times, it may mean
adjusting energy usage so as to put less strain on the
generation and delivery system. The most sophisticated
energy users, meantime, have a strong incentive to employ
modern efficiency standards because their energy bills are
so high.
"Using energy efficiency to reduce peak demand is
especially attractive because such savings get built into
our energy systems; the savings occur every time an
energy-efficient device is used, whether that's a high
efficiency commercial lighting system, a more efficient
air-conditioner, or a high efficiency motor," says Martin
Kushler, utilities program director for the council. "With
energy efficiency, we not only get peak demand savings,
but also year-round or seasonal savings that yield lower
power plant emissions, including greenhouse gases, and
lower overall customer and utility costs."
Energy efficiency has traditionally taken a back seat
to energy production. But implementing conservation
standards is less controversial and less costly than
building new transmission, generation or distribution.
It's a meaningful cause as residential, commercial and
industrial users get a breather on their power bills while
utilities are able to avoid huge capital investments and
the deferral of maintenance.
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