Energy Efficiency Key to Upcoming U.S. Climate Legislation

"We can and we must make our buildings, appliances, and transportation systems more energy efficient," he said Thursday, as a coalition of business, professional, energy, and environmental organizations offered their views on the role of energy efficiency in federal climate change legislation that is now beginning to wend its way through the legislative process.

"Energy efficiency can slash greenhouse gas emissions at low cost and in large quantities. A carbon cap is essential to getting those savings but we don't use all cost-effective energy efficiency now and we still won't with a price on carbon," said Joe Loper with the Alliance to Save Energy. "We need to design the program right to wring carbon from our homes, offices, industrial plants, and vehicles," he continued.

Currently, the United States does not have a federal greenhouse gas reduction requirement, although, in recent years, there have been various bills proposed to require reductions.

Both the House Energy and Commerce and Senate Environment and Public Works Committees are poised to revisit cap-and-trade legislation to limit greenhouse gas emissions this session, with Energy and Commerce Chairman Henry Waxman, a California Democrat, hoping to push such legislation through the committee by Memorial Day.

The passive down-draft cooltowers in the Visitor Center at Zion National Park release cool air into the building in the summer without the use of electricity to run air conditioners. (Photo by Robb Williamson courtesy NREL)

"Including energy efficiency in a cap-and-trade bill is essential because energy efficiency provides 'avoided tons' of greenhouse gases at the lowest cost," said Steven Nadel, the coalition's coordinator and also the executive director of the American Council for an Energy-Efficient Economy.

"Energy efficiency reduces the cost of cap-and-trade because fewer new power-producing facilities are needed and because a smaller portion of existing facilities need to be upgraded to help meet emissions ceilings," he said.

Other participants in the coalition are the Environmental and Energy Study Institute, Environment Northeast, Johnson Controls, Inc., National Association of Energy Service Companies, Natural Resources Defense Council, Sierra Club, and Real Estate Roundtable.

The coalition recommends two main approaches - providing funding for energy efficiency using revenue from carbon credits and adopting a set of complementary policies in an energy efficiency title to the legislation.

They estimate about $15-20 billion will need to be invested each year for energy efficiency deployment programs and policies in the residential, commercial, and industrial sectors.

This is in addition to the more than $6 billion each year needed for low-income energy efficiency programs, $8 billion for transportation policies and programs, and $3 billion for clean energy research and development.

"Energy efficiency is an essential component of a comprehensive energy and climate policy anchored by a cap on global warming pollution," said Jim Presswood with the Natural Resources Defense Council.

"The level of investment recommended by this broad-based coalition builds on the huge boost the economic recovery bill gives to energy efficiency programs, which have been ramping up over the past several years," he said.

The group also recommended complementary energy efficiency policies such as:

• setting utility energy saving targets
• establishing advanced building energy codes and appliance standards
• extending and enhancing current federal energy efficiency tax incentives
• establishing programs to promote comprehensive energy retrofits to existing buildings including homes,
• commercial buildings, multifamily buildings, and assisted housing
• achieving an average of at least 42 miles per gallon for cars and light trucks by 2020. Derek Murrow with Environment Northeast said, "The recommended policies and programs reinforce how critically important energy efficiency is to any cap-and-trade program that seeks to reduce environmental impacts while enhancing the nation's economy."

  The cap-and-trade program will also produce a major boost in employment. "We have seen a dramatic growth in energy efficiency jobs during the past decade," said Donald Gilligan, president of the National Association of Energy Service Companies. "The industry today employs more than 1.5 million people. We can continue that growth with this legislation, and make energy efficiency a cornerstone of the American economy in the 21st century."

  Click here to read the report, "Reducing the Cost of Addressing Climate Change Through Energy Efficiency."

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