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Introduction I thank the Subcommittee for the opportunity to testify on behalf of the members and Board of the Alliance to voice our strong support for increased federal funding to the Environmental Protection Agency's Energy Star program in fiscal year 2005. The Energy Star program is an entirely voluntary program that is yielding significant economic returns to our nation's consumers and significant environmental benefits to our nation as a whole. Increased investment in the Energy Star program will translate to increased energy savings by taxpayers across the country. Studies estimate that every federal dollar spent on the Energy Star program results in an average savings of $75 or more in consumer energy bills; the reduction of about 3.7 tons of carbon dioxide emissions; and an investment of $15 in private sector capital in development of energy-efficient technologies and products. The Alliance has a long history of advocacy, as well as research and evaluation, of federal efforts to promote energy efficiency. Congress has enacted important measures, and the Administration has adopted meaningful regulations and standards that are yielding energy savings through energy efficiency; the Energy Star program is of particular note, however, as it testifies to the important achievements that can be made through cooperative partnerships between government and businesses. The Climate Protection Division at EPA, which operates the Energy Star program, works closely with manufacturers, retailers, building owners, and energy service providers, as well as state and local governments, nonprofits, and other organizations to promote energy-efficient products and buildings. Through this important and impressive program, business and government -- working in lockstep -- are achieving national environmental, energy security, and economic goals. Energy efficiency is an investment. By purchasing more efficient, smarter technologies, there is often a modest additional cost, but that additional cost is paid back many times to the consumer through lower energy bills. Energy Star helps consumers understand and realize these benefits. Last year alone, Americans, with the help of Energy Star, saved $9 billion on their energy bills. Consumers can use these significant savings to invest in the economy, their families, and their future
Energy Efficiency is America's Greatest Energy Resource Mr. Chairman, energy efficiency is America's greatest energy resource. It makes a larger contribution to meeting our energy needs than petroleum, natural gas, or even coal. The Alliance to Save Energy estimates that energy efficiency gains since 1973 are now saving at least 39 quadrillion BTUs of energy each year, or about 40 percent of our actual energy use. 1 The energy savings we are enjoying from energy efficiency far exceed consumption of natural gas or coal, and far outpace energy produced using oil, nuclear, and other sources.
Every BTU we save is one less BTU that needs to be generated. What's more, increasing America's energy efficiency is the quickest, cleanest, and cheapest way of increasing our energy supply. Without these enormous savings, our difficulties in meeting energy demand would be far, far worse than they are today. For example, in 2003, Energy Star helped Americans save enough energy to power 20 million homes and avoid greenhouse gas emissions equivalent to removing 18 million cars from the road. Getting more for less is the American way, and Energy Star meets this goal by helping millions of Americans get the energy they need, while saving money and pollution. Despite the introduction of new technologies and the integration of energy efficiency into the nation's energy policies and economy, we barely have scratched the surface of energy efficiency's potential. It seems that every year technological developments bring more and better measures for reducing electricity demand and for making homes, buildings, and the devices we use, from washing machines to computers, more energy-efficient. Mr. Chairman, Energy Star is an important tool for educating American consumers about these emerging, efficient products. Consumers are learning to “look for the Energy Star label” as they comparison shop for appliances, homes, electronic devices, and other products. 1. Energy efficiency savings estimated by Alliance to Save Energy. Production quantities from Energy Information Administration, Monthly Energy Review, January 2004.
How Energy Star Capitalizes on this Resource Mr. Chairman, EPA's Energy Star program has proven to be an extremely effective way for this nation to capitalize on the potential of energy efficiency as a resource. Energy Star's voluntary partnership program – which includes Energy Star Buildings, Energy Star Homes, Energy Star Small Business, and Energy Star Labeled Products – works by removing marketplace barriers to existing and emerging technologies; by providing information on technology opportunities; by generating awareness of energy-efficient products and services; and by educating consumers about life-cycle energy savings. Consumers know that a product with the Energy Star label is among the most energy-efficient in the market . Last year, the Alliance to Save Energy undertook an extensive public opinion survey and found that the name recognition of the Energy Star program is very high – 86 percent among U.S. homeowners. Approximately one-third of U.S. consumers report using the Energy Star label as an information tool for making purchase decisions; and an even higher number report using Energy Star as an information tool to help them save energy. Most consumers who are aware of the Energy Star label correctly understand that products bearing the Energy Star label use less energy and can save them money on energy bills. Mr. Chairman, as you may be aware, your state of New York has a program to promote, actively, the Energy Star label with consumers. This effort has yielded very positive results. Our research indicates that New York residents are significantly more likely to have purchased an Energy Star labeled product than consumers outside the state. New York's efforts are an impressive example of how, by using the Energy Star label, government can reduce overall energy use while at the same time assuring lower utility bills for constituents. About the Energy Star Partnerships Energy Star is composed entirely of voluntary partnerships, and these have grown since the early 1990s to include thousands of product manufacturers, private and public building owners and operators, homebuilders, small businesses, utilities, and retailers. The sheer number of these partnerships demonstrates clearly that energy efficiency delivers “pollution prevention at a profit.” Energy Star serves broad constituencies in every state in the country. Energy Star includes over 1,250 manufacturing partners who make and market over 18,000 different models of Energy Star qualifying products. Energy Star assists over 8,000 small businesses with their efforts to maximize the energy efficiency of their facilities. Energy Star counts more than 3,000 builder partners and partners who supply products and services for energy-efficient home construction. To date, more than 100,000 Energy Star Homes have been built – locking in financial savings for homeowners of more than $26 million annually. Energy Star includes more than 12,000 commercial and industrial participants representing more than 15 percent of the nation's total commercial, public, and industrial markets and estimated savings of more than 47 billion kilowatt hours of energy. As you may know, for the last four years, the Alliance has asked many of Energy Star's partners to join us in our request for a significant increase in funding for the program. The response has been remarkable. Earlier this month we issued a call for support to the Energy Star partners, and in the first week alone we received approximately 400 offers of help and support for increasing federal funding of the program. Once we have all of the replies, each member of this subcommittee will receive a copy of the letter, along with the list of supporting businesses and partners.
Much Has Been Accomplished, but Huge Potential Remains Untapped The Energy Star program has made a significant contribution to reducing consumer energy use, but a wide array of important, additional opportunities to use the program to promote energy remain untapped. Energy Star is a success, poised to provide more savings and enhanced environmental protection as soon as the government is ready and able to invest more. |
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