Alliance to Save Energy Hails Efficiency-Focused Senate Energy Bill, But Laments Lack of Tax Incentives | Alliance to Save Energy

Alliance to Save Energy Hails Efficiency-Focused Senate Energy Bill, But Laments Lack of Tax Incentives

The Alliance to Save Energy News

Alliance to Save Energy Hails Efficiency-Focused Senate Energy Bill, But Laments Lack of Tax Incentives

Release Date: Friday, June 22, 2007

Washington, D.C., June 22, 2007 – The Alliance to Save Energy today hailed the Senate’s adoption of a bipartisan, energy-efficiency-focused energy bill that includes the first fleet-wide increase in fuel economy standards in some 20 years. At the same time, the Alliance expressed disappointment that the Senate failed to include the consumer and commercial energy-efficiency tax incentives approved by the Finance Committee earlier this week.

“Consumers need relief from spiraling energy prices, and the measure adopted by the Senate is a significant first step in providing that relief,” said Alliance President Kateri Callahan. “The Senate’s action begins to move us from a ‘dig and drill’-powered economy to one fueled by innovation and sustainable energy resources.”

H.R. 6, the CLEAN Energy Act of 2007, would increase Corporate Average Fuel Economy, or CAFE, standards from the current 25 miles per gallon for passenger cars, light trucks, and SUVs to 35 mpg by 2020. “By agreeing to increase fleet-wide CAFE standards for the first time in decades, the Senate has demonstrated its commitment to harnessing the power of energy efficiency to combat climate change,” Callahan said. She noted that according to the Union of Concerned Scientists, the new standards would curb U.S. oil consumption by 1.2 million barrels per day in 2020 (more than 10 percent of the oil used by all cars and light trucks) and reduce greenhouse gas emissions by the equivalent of taking 30 million cars off the road.

The Alliance worked closely with senators to ensure inclusion in the bill of key energy-efficiency provisions: appliance standards, permanent authorization of Energy Savings Performance Contracts (an innovative financing tool for upgrading the energy efficiency of federal buildings) and other measures to increase energy efficiency in federal buildings, oil-saving targets for federal and state vehicle fleets, and improved energy efficiency in commercial buildings.

The Alliance estimates that the provisions for increased energy efficiency in federal buildings, combined with provisions for federally-insured mortgages, would save about 10 billion kilowatt-hours (kwh). And if the commercial buildings initiative were fully funded, it could result in savings of 5 quadrillion btu in 2020, about 5 percent of all energy use and 25 percent of commercial building energy use. The new appliance standards will save about 40 billion kwh in 2020, which represents about 1 percent of all U.S. electricity use, according to the American Council for an Energy-Efficient Economy.

Regarding the tax incentives for energy efficiency – largely extensions of those in the Energy Policy Act of 2005, Callahan said, “We call on senators concerned about our nation’s energy security and the health of our environment to reconsider and adopt the Senate Finance Committee’s tax incentives to help consumers, developers, and building owners make their properties more energy efficient and to encourage appliance manufacturers to make more energy-efficient products.”

Callahan also called on members of the House of Representatives to pass energy legislation expeditiously so that a bill can be sent to the president for signature as soon as possible.




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