Efficient Energy Through Certified Technologies and Electricity Reliability (EFFECTER) Act of 2004

Efficient Energy Through Certified Technologies and Electricity
Reliability (EFFECTER) Act of 2004
S. 23ll / H.R. 4206

Senate Introduction: S. 2311 introduced 4/8/04.

• Sponsors: Senators Olympia Snowe (R-ME) and Dianne Feinstein (D-CA), along with Senator Jeff Bingaman (D-NM) and two others.
• Referred to: Senate Finance Committee.

House Introduction: H.R. 4206 introduced 4/22/04.

• Sponsors: Reps. Duke Cunningham (R-CA) and Ed Markey (D-MA) and two others.
• Referred to: House Energy and Commerce Committee and to the Ways and Means and
  Financial Services Committees.

Summary: The bill includes energy efficiency tax incentives based on provisions included in an
earlier bill by the same sponsors (S. 507); in the Senate energy tax bill (S. 1149), and in the
“comprehensive” energy bill (H.R. 6) conference report. It also includes some energy efficiency
policy provisions and electric reliability standards from H.R. 6.

Energy efficiency tax incentives
 

• New and existing commercial buildings: Provides a deduction up to $2.25 per square foot of
  building space for energy-efficient building systems that reduces energy costs 50% below the
  ASHRAE 90.1 model code. Expires 12/31/09. Similar to a provision in S. 1149.
• New homes: Provides builder credit of up to $1,000 for the construction of a new home that
  reduces energy use by at least 30% compared to the 2000 International Energy Conservation
  Code (IECC), and $2,000 for a home that saves 50% relative to the code. Applies 1/1/04-
  12/31/06. Similar to H.R. 6 conference report provision.
• Business equipment and rental buildings: (Not in any pending energy bills.)

  - Business equipment: Provides a tax deduction of $1 per kwh saved annually for a solar
  hot water heater, $4.50 per watt for photovoltaic solar cells, and $150 or $450 for a
  “Tier 1” and $900 for a “Tier 2” electric heat pump hot water heater, electric heat pump,
  geothermal heat pump, central air conditioner, natural gas or propane or oil water heater,
  or air circulating fan. Applies 1/1/04-12/31/05 (Tier 1) or 12/31/08 (other equipment)

  - Existing residential rental buildings: Also provides a tax deduction of $12,000 times the
  percentage reduction of energy costs for heating and cooling rental buildings (up to
  $6000). Applies 1/1/04-12/31/07.

• Residential equipment and improvements to existing homes: Provides tax credits for
  heating and cooling equipment, and for improvements to existing homes, equivalent to the
  business tax deductions above (credit amounts are one third of the deduction amounts).
  Maximum credit of $1000 for solar hot water heater and $6000 for photovoltaic cells.
  Expires 12/31/05 (Tier 1) and 12/31/08 (the rest). The equipment provision is more generous
  than a related one in S. 1149. The existing homes credit is based on efficiency improvement,
  unlike the energy bill provisions, which are based on cost.
• Combined heat & power systems: Provides a 10% investment tax credit for systems up to 15
  MW with better than 60% efficiency. Applies 1/1/04-12/31/06. Same as H.R. 6 conference
  provision.
• Appliances: Provides $100 and $150 credits for increased production of “Tier I” and “Tier
  II” refrigerators and clothes washers, which are more efficient than required by recently
  adopted standards. Expires 12/31/07. Capped for each manufacturer. Same as H.R. 6
  conference provision.

  Other energy efficiency provisions
   

• New appliance standards: Legislates standards for seven products and directs DOE
  rulemakings for four more. Also requires rulemakings on product labels. In addition to
  H.R. 6 conference provisions, adds a standard for ceiling fans.
• Federal energy management: Reauthorizes Energy Savings Performance Contracts
  (ESPCs), sets new energy performance standards for new federal buildings, and requires
  federal agencies to purchase Energy Star and FEMP-designated products. Provisions are
  very similar to some of those in the H.R. 6 conference report.
• Public housing: Includes several provisions, taken from H.R. 6, to improve the energy
  efficiency of public housing.

  Electric reliability standards

• Includes H.R. 6 provision that sets mandatory standards for electric utilities to improve reliability.

For more information please contact Alliance policy staff at (202)857-0666 or policyinfo@ase.org.

The Alliance to Save Energy is a coalition of prominent business, government, environmental and consumer leaders
who promote the efficient use of energy worldwide to benefit consumers, the environment, the economy, and
national security.

April 2004