Super Committee Must Preserve Energy Efficiency Programs to Strengthen U.S. Economy

Washington, D.C., Oct. 19, 2011 — Commissioned by Congress to slash U.S. debt, the “Super Committee” has the potential to drastically reduce federal funding for energy efficiency over the next decade. In response, energy efficiency advocates are calling on the Committee to preserve these investments, which can save Americans money and boost the U.S. economy.

Background on the Budget

In the months since the “debt ceiling crisis,” the federal government has been charged with enacting a proposal that would not only lower the deficit, but also strengthen the economy and create jobs. The Joint Select Committee on Deficit Reduction – a 12-member, bipartisan panel deemed the Super Committee – must issue a recommendation  by Nov. 23 for at least $1.2 trillion in additional deficit reduction to be undertaken over a 10-year period. 

The spending cuts that ultimately will be part of the budget plan are in addition to spending limits established under the Budget Control Act of 2011, a compromise forged in late July between President Barack Obama and Congress. The Budget Control Act imposes discretionary spending limits over the next 10 years in order to raise the debt ceiling and reduce the deficit by $917 billion.

If the Super Committee fails to agree on a package or the full Congress is unsuccessful in passing it by Dec. 23, at least $1.2 trillion in automatic discretionary spending cuts would be enacted. 

But whether or not Congress implements the recommendations of the Super Committee on time, deep reductions in discretionary federal spending are expected to affect all agencies, including the Department of Energy (DOE). In turn, programs that fund energy efficiency incentives and investments could be threatened.

Coalition Presents Benefits of Energy Efficiency to Super Committee

The Alliance to Save Energy and members of the Energy Efficiency (EE) Coalition – a group of environmental, businesses, public interest and faith-based organizations – has called on the Super Committee to consider the advantages of continuing to fund energy efficiency initiatives.

In a letter sent Oct. 7 to the Super Committee co-chairs, Sen. Patty Murray (D-Wash.) and Rep. Jeb Hensarling (R-Texas), the Energy Efficiency Coalition demonstrated how:

• Energy efficiency contributes more to the nation’s domestic energy needs than any other resource, including oil, natural gas, coal and nuclear power.
• Energy efficiency ensures the United States’ competitiveness in the global marketplace with rates of return that vastly compensate for its comparatively meager costs.
• Restricting funds for energy efficiency would undermine U.S. economic, environmental and security needs, both in the short- and long-term.

Recognizing the challenges that the Super Committee faces in solving the country’s deficit problems, the Alliance and the EE Coalition urged the Super Committee to bear in mind the full value of maintaining energy efficiency investments.

A Daunting Task Ahead for Congress and Agencies Alike

Super Committee members are not the only ones who have to find smart ways to reduce spending. Federal agencies already are working to shrink their budgets, and are doing so while supporting energy efficiency.

Agencies Must Cut Spending, Not Jobs

Following the debt ceiling agreement, the Office of Management and Budget (OMB) sent a memo to all federal agencies asking each of them to cut their 2013 budget requests by 5% from the previous year – which represents millions of dollars less for some agencies.

The memo also stipulates that agencies’ 2013 budget requests reduce waste while “investing in those areas critical to job creation and economic growth.”

Many departments have identified energy efficiency measures to help balance their budgets, save money and create jobs – strategies that demonstrate the value of preserving funding for energy efficiency programs, according to the Alliance and EE Coalition members. Two agencies in particular stand out:

DOE: Putting Energy Efficiency First

DOE’s September 2011 Quadrennial Technology Review indicated that “efficiency is the most cost-effective and near-term strategy for increasing the U.S. economy’s energy productivity” and promoting U.S. fiscal responsibility. That’s why the report features DOE’s plan to focus R&D on energy efficiency and invest in the Office of Energy Efficiency and Renewable Energy.

DoD: Saving Lives and Cutting Costs

The Department of Defense (DoD), which is the largest consumer of energy in the U.S. government, also uses efficiency to help address budget constraints. All service branches of the U.S. military – Navy, Army, Marine Corps, Air Force and Coast Guard – are making their facilities, vehicles and operations more efficient to lower costs and save lives. For instance, improved energy efficiency in the Army has reduced the number of fuel convoys, resulting in significant savings and fewer risks for soldiers in the field.

By Alliance Policy Intern Ali Levine