National Coalition Applauds Passage of Landmark Energy and Climate Legislation

Energy Efficiency Improvements in Senate Will Save Consumers Money, Create Jobs

(WASHINGTON, D.C.) – Following passage of the historic American Clean Energy and Security Act (H.R. 2998) in the House of Representatives, the Campaign for an Energy-Efficient America called on the Senate to strengthen the House bill’s energy efficiency provisions, to fully capitalize on consumer savings and job creation potential.

“This bill lays the foundation for good-paying jobs here at home, lower energy bills, and a more secure energy future,” said Steven Nadel, Executive Director of the American Council for an Energy-Efficient Economy (ACEEE). “But we can do even more to maximize those benefits – now we look to the Senate to take up the reins.”

The energy efficiency provisions could save households more than $1,000 in energy costs between 2012 and 2020, increasing to more than $4,450 per household by 2030. These savings directly reduce any costs of implementing the carbon cap-and-trade program, to the tune of $590 billion over the 2012-2030 period, according to analysis by ACEEE. (1)

These savings would effectively offset the nominal cost of the cap and trade provisions, estimated at $175 per household in 2020 by the nonpartisan Congressional Budget Office. ACEEE estimates that the energy efficiency provisions included in Title I and Title II of H.R. 2998 would lead to annual net consumer savings of more than $200 per household in 2020 and more than $450 in 2030. Furthermore, ACEEE estimates the energy efficiency components of the bill will create more than 305,000 jobs by 2020.

“While excuses were flying around the capital from those who voted no, we commend those members of Congress who stood up to coal, oil, and the head-in-the-sand naysayers,” said Rob Kelter, Senior Attorney for Environmental Law and Policy Center. “This vote was about the future of our planet – nothing less.”

Specifically, the coalition recommends two key methods of improving energy efficiency provisions during Senate debate:

• Save an additional $50 billion by reducing overall electricity demand by 10 percent through strengthened renewable electricity and energy efficiency resource standards. (2)
• Save an additional $250 billion by modeling the electric utility allocation on that of the natural gas utility allocation, by requiring that one-third be used for energy efficiency improvements. 

“While there is much more we can do to tap the environmental and economic benefits of energy efficiency and clean energy, the first step is always the hardest and Congress deserves tremendous credit for putting us squarely on the path to a clean energy economy,” said Rob Sargent, Energy Program Director for Environment America. “We look forward to building on this progress to harness the nation’s vast untapped reserves of wasted energy and homegrown renewable energy to reduce pollution, create jobs and keep dollars in our local economies.”

(1) http://aceee.org/energy/national/WMSavingsUpdate0624.pdf Please note this analysis does not take into account the bill’s manager’s amendment.

(2) ACES allows petitioning under a 20 percent RES for up to 8 percent to come from efficiency measures. The United States is already on track to achieve a total of 5 percent electricity savings without any federal requirement. A “hard” 10 percent requirement would push utilities to use the cheapest and quickest resource, energy efficiency, first.