Industrial Energy Efficiency Legislative Update: H.R. 4850 Passes Senate

Even as many legislative priorities remain sidelined, energy efficiency has seen recent advances with the passage of the Enabling Energy Saving Innovation Act of 2012 (H.R. 4850) by unanimous consent in the Senate on Sept. 22, 2012. The bill was introduced in the House of Representatives by Rep. Robert Aderholt (R-Ala.) and passed on June 26, 2012. Originally, the bill only included a standards alteration to the Energy Policy and Conservation Act of 1975 (Pub.L. 94-163). After the bill reached the Senate, Sens. Jeff Bingaman (D-N.M.), Jeanne Shaheen (D-N.H.), and Rob Portman (R-Ohio) added amendments focused on energy efficiency in federal agencies and the industrial sector.

Enabling Energy Saving Innovations Act of 2012

The content of the amendments added by Shaheen and Portman are provisions related to the Energy Savings and Industrial Competitiveness Act (S.1000), while amendments from Bingaman are related to appliance standards in the Implementation of National Consensus Appliance Agreements Act of 2011 (S.398). H.R. 4850 is currently pending in the House for final approval of the Senate amendments.

As passed in the Senate, the bill includes a variety of provisions designed to enhance the federal government’s promotion of industrial energy efficiency. Importantly, the bill amends the federal minimum purchasing requirements of renewable energy to include thermal and self-generated energy (as opposed to only electricity). Renewable sources generating thermal energy include municipal wastewater treatment which can generate biogas through anaerobic digestion. The bill also requires the Department of Energy (DOE) to establish an Industrial Technologies Steering Committee composed of “national trade associations representing energy-intensive industries or energy service providers.” The committee would also provide DOE with recommendations on planning and implementation of the Advanced Manufacturing Office.

The bill also requires the creation of two reports focused on industrial energy use. The first will study the barriers to deployment of industrial energy efficiency and provide policy recommendations to address them. Net metering, exit fees, standby fees, and energy market structures are all mentioned as areas of study for the report. The study will also provide examples of foreign and domestic (both state and federal) policies in addition to private-sector initiatives which have worked to improve industrial energy performance. Finally, the study will include an analysis of how an energy efficiency matching grants program for the industrial sector will affect energy use, job creation, and the sector’s output.

The second report will be provided to DOE by the National Academy of Sciences and will focus on supply chains, including an analysis of energy intensity throughout the supply chain and potential for energy efficiency enhancements. In addition, the study will include an analysis of the domestic manufacturing’s potential for adopting emerging energy efficient technologies and recommendations on disseminating energy efficiency best practices throughout the manufacturing sector.

Outlook

Because energy efficiency is a significant resource for U.S. industry, appropriately tailored legislation can facilitate implementation of energy management and adoption of energy efficient technologies. Bipartisan action offers the possibility to generate the sort of legislation that can facilitate energy efficiency implementation in U.S. industry.

Additional Resources

• Bill Text
• Expanding Industrial Energy and Water Efficiency Incentives Act of 2012

Alliance Industrial Intern Evan Perkins was a major contributor to this article.