Energy efficiency group to reignite legislative efforts with new plan

Washington (Platts)--7Feb2013/339 pm EST/2039 GMT


A group of energy efficiency advocates, comprised of utility executives, lawmakers, business leaders and environmentalists, Thursday said they wanted to jumpstart legislative efforts in Congress with a new plan that could double US energy productivity by 2030.

The Alliance Commission on National Energy Efficiency Policy say their plan would save US households, businesses and government agencies $327 billion in energy costs, grow US economic output by 2% and create 1.3 million jobs by 2030.

The plan, unveiled at a news conference in Washington, involves providing financing for energy efficiency projects, boosting funding for energy research and creating a "Race to the Top" style competition for states and local communities to earn federal grants for conservation measures, among other recommendations.

Article continues below...


Sign up for Megawatt Daily Megawatt Daily
Megawatt Daily

Megawatt Daily provides detailed coverage of power prices in major US and Canadian electricity markets, up-to-date information about solicitations and supply deals, and information about complex state and federal power regulations.

Purchase a subscription to Megawatt Daily Request More Information

Commission members said that by rebranding energy efficiency as "energy productivity," they hope to signal that investments in conservation can lead to real gains in gross domestic product, jobs and national security.

"This is such common sense, and it's doable," said Senator Mark Warner, a Virginia Democrat who co-chaired the commission. "Energy efficiency has always been viewed as a stepchild or a second part of a national energy plan. We needed a new way to think of this -- energy efficiency as a means of increasing energy productivity."

Warner said he has been meeting with lawmakers in both the Senate and the House to advance some of the recommendations through legislation that would use a bill introduced in 2011 by Senators Jeanne Shaheen, Democrat-New Hampshire, and Rob Portman, Republican-Ohio, as its base.

A few of that bill's provisions, including energy efficiency measures for federal agencies, were passed in a separate bill that President Barack Obama signed into law in December. But the remainder of the Shaheen-Portman bill, which included an overhaul of building codes and loan guarantees for energy efficiency projects, has met objections from some Republicans.

IMMEDIATE INDUSTRY ACTION

Kateri Callahan, president of the Alliance to Save Energy, which spearheaded the formation of the commission, said her group would be meeting later Thursday with officials from the White House Council on Environmental Quality, the Department of Energy and the Environmental Protection Agency to pitch their plan.

"This is something we've been in conversation with policymakers about, and we're hopeful there'll be one or more bills and regulatory action," she said.

Tom King, the president of National Grid US and who also co-chaired the commission, said there were several recommendations in the 2030 energy plan that do not require legislation, which industry can act on immediately.

Banks can work together to create revolving loan funds or other financing mechanisms for efficiency projects, for example. And the buildings industry could develop more effective energy ratings.

"We're increasing the nation's GDP by reducing energy waste and consuming energy in the most efficient way possible," King said. "It fundamentally increases the nation's global competitiveness."

Callahan said rebranding energy efficiency as energy productivity was important from a messaging standpoint. The commission wanted to relay that energy efficiency did not necessarily mean that consumers would have to sacrifice comfort or performance, she said.

"When you talk about saving energy, people think it harkens back to President Carter and turning down the thermostat and being cold," she said. "It doesn't have to be like that. We've come so far with energy technology, and we want people to understand that intuitively. It's not about saving energy for saving energy's sake."

--Herman Wang, herman_wang@platts.com
--Edited by Richard Rubin, richard_rubin@platts.com