Putting Energy into the Economic Stimulus Bill

The Alliance has been developing a set of energy efficiency policy recommendations for a potential economic stimulus bill, which we believe will be the one of the first legislative priorities of the new Congress in January. As it appears now, the bill will focus on investments in infrastructure rather than direct payments, thus creating a perfect opportunity for the federal government to promote energy efficiency while creating jobs and saving consumers money.

In developing recommendations for the stimulus bill, we have been working extensively with the Taxes and Appropriations Group (TAG), a coalition we created five years ago to bring industry and environmental groups together to work on federal funding and tax incentives for programs that support energy efficiency. The group; whose members range from Owens Corning, Dow Chemical and Whirlpool to the Natural Resources Defense Council, Environment America and the American Council for an Energy Efficient Economy has been instrumental in achieving key legislative victories on the Hill. Now TAG is concentrating on developing a comprehensive and evolving set of recommendations that would help to save businesses and residents money on energy costs while creating jobs, reducing carbon emissions and investing in the long-term viability of American's infrastructure.

In recognition of the need for the legislation to have an immediate effect on the economy, these recommendations focus on funding for already-authorized programs, rather than new programs that will take months to create and ultimately defeat the purpose of a stimulus bill. Although the proposals are still being fine-tuned, we would like to share a few excerpts from the evolving document. Among TAG's recommendations are:

• A $40 million appropriation for the Public Information Initiative (PII), which was authorized in Energy Policy Act of 2005. PII is a one-year consumer education campaign that would help consumers to lower their utility bills. The campaign would emphasize energy-saving actions, like energy efficiency home improvements, that could deliver work and jobs to contractors, retailers and manufacturers while also helping consumers manage their energy costs.

• Funding for job training, including $125 million for the Green Jobs Act and $25 million for existing training programs administered through DOE's Office of Energy Efficiency and Renewable Energy.

• $300 million in additional funding for the Weatherization Assistance Program, which would create jobs for contractors, retailers and manufacturers while helping low-income households to meet rising energy bills.

In the coming weeks the Alliance and its coalition partners will be meeting with the Obama Administration's transition team and with key Congressional offices to build support for the TAG stimulus package. We are confident that in a time of mounting uncertainty about economic and energy policies, our energy efficiency recommendations will be well-received.