Proposed House Legislation Would Reduce
Nationwide Energy Use 10%
Washington, D.C. - April 21, 2009
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,
according to a new analysis released today by the American Council for an
Energy-Efficient Economy (ACEEE). 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, and in turn will avoid about 661 million metric
tons of carbon dioxide emissions in 2020, the equivalent of taking 110
million cars off the road for a year.
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..
"These energy efficiency savings are very substantial and will go a long way
towards paying the cost of the cap-and-trade program in the bill," noted
Steven Nadel, ACEEE's Executive Director. "Our analyses indicate that energy
efficiency policies are a key cost-control element for climate change
legislation because the less energy we need, the fewer new power plants we
need, and the fewer existing power plants that need to be upgraded."
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.
- A new 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.
- 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. This provision could reduce emissions by
58 million metric tons of carbon dioxide per year. Nonetheless,
strengthening implementation of the transportation efficiency provisions
could greatly increase savings.
According to 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. "It is
important that some of these allowances are invested in energy efficiency,
including new programs authorized in the bill, as well as funding for state
and utility-based efficiency programs," stated Rachel Gold, the principal
analyst on this project. Second, the bill should include a provision to
improve industrial energy efficiency similar to S. 661, Restoring America's
Manufacturing Leadership through Energy Efficiency. To complement the
industrial centers provision in S. 661, the bill should also establish a
network of Building Training and Assessment Centers. In addition, the bill
could further maximize savings and help with energy costs in low-income
housing by including a provision to help fund retrofits to multifamily
housing.
Although these potential savings are dramatic, there are many additional
cost-effective efficiency opportunities available. 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.
Details on ACEEE's analyses of the House discussion draft can be found at
http://aceee.org/energy/national/index.htm#analysis.
###
About ACEEE: The American Council for an Energy-Efficient Economy is an
independent, nonprofit organization dedicated to advancing energy efficiency
as a means of promoting economic prosperity, energy security, and
environmental protection. For information about ACEEE and its programs,
publications, and conferences, contact ACEEE, 529 14th Street N.W., Suite
600, Washington, D.C. 20045 or visit http://www.aceee.org.
|