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Policy Outlook 2012: Bipartisan Package Poses Best Prospect for Energy Efficiency

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Date: Jan 19, 2012

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Author(s): 
Rob Mosher

Election years are known for gridlock, but the threat of rising fuel prices and the need for economic recovery make Congress ripe for legislation that saves money and energy.

While several measures that promote energy efficiency are pending, Congress has the best chance of approving a bipartisan package that includes a broad energy efficiency proposal and an appliance standards bill. Such a package could drive consideration of other energy efficiency initiatives. 

Strong Bipartisan Energy Efficiency Legislation

The Senate Energy Committee has already approved by wide margins two energy efficiency measures that have bipartisan support and momentum – and thus the strongest likelihood of passage this year.  These measures include:

  • A bill (S. 1000) authored by Sens. Jeanne Shaheen (D-N.H.) and Rob Portman (R-Ohio) that would implement several energy efficiency measures to lower energy costs and create jobs in the commercial, residential and industrial sectors.
  • A proposal (S. 398) sponsored by Sens. Jeff Bingaman (D-N.M.) and Lisa Murkowski (R-Alaska) that would enact consensus appliance efficiency standards developed by manufacturers, efficiency advocates, states and consumer groups. 

Taken together as a package, the Shaheen-Portman bill and the appliance standards measure would save billions of dollars in energy costs over the next two decades, as well as provide tens of thousands of jobs by facilitating the production and deployment of domestic energy efficiency technologies.  Moreover, these legislative initiatives could serve as a vehicle to attach other efficiency proposals or act as the catalyst for further consideration or action on them. 

Initiatives with Potential

Other efficiency proposals with the potential to get attached to a larger package include two bills that would help homeowners finance improved energy efficiency and pay back the advance costs out of their utility bills savings:

  • Introduced by Sens. Michael Bennet (D-Colo.) and Johnny Isakson (R-Ga.), the SAVE Act (S. 1737) would help recognize the value of efficiency in mortgage caps.
  • From Reps. Nan Hayworth (R-N.Y.) and Mike Thompson (D-Calif.), the PACE Protection Act (H.R. 2599) would enable local governments to finance home energy efficiency projects with repayment through property taxes. 

Additionally, policymakers have authored bills that would monitor energy usage and offer new efficiency incentives:

  • Sponsored by Sens. Mark Udall (D-Colo.) and Scott Brown (R-Mass.), e-KNOW (S. 1029) would require utilities to provide customers and other third parties with their energy usage information. 
  • Sens. Olympia Snowe (R-Maine), Jeff Bingaman (D-N.M.) and Dianne Feinstein (D-Calif.) proposed a performance-based tax credit for deep home retrofits: Cut Energy Bills at Home Act (S. 1914).
  • Reps. Tom Reed (R-N.Y.) and Bill Pascrell (D-N.J.) in the House, and Sens. Ben Cardin (D-Md.) and Mike Crapo (R-Idaho) in the Senate have a bill that would incentivize energy-efficient commercial roof replacements: Roofing Efficiency Jobs Act (H.R. 2962/S. 1575). 

More on 2012 Energy Efficiency Policy

View our full list of the bipartisan energy efficiency initiatives under consideration in Congress right now, including bills that are likely to make the biggest waves in the second session of the 112th Congress.