INTRODUCTION OF THE ENERGY EFFICIENT BUILDINGS INCENTIVES ACT -- HON. RANDY ``DUKE'' CUNNINGHAM (Extensions of Remarks - September 29, 2000)

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HON. RANDY ``DUKE'' CUNNINGHAM OF CALIFORNIA IN THE HOUSE OF REPRESENTATIVES Friday, September 29, 2000

Mr. CUNNINGHAM. Mr. Speaker, today I introduce the Energy Efficient Buildings Incentives Act. I am joined in this effort by a substantial and diverse coalition of my colleagues including Mr. MARKEY of Massachusetts, Mr. BILBRAY of California, Mr. LEWIS of California, and Mr. FARR of California, as well as Mr. SMITH of New Hampshire in the Senate, and many others. This bill is supported by a strong coalition of industries and organizations. I have submitted a list of supporters below.

My constituents in San Diego have been suffering from outrageously high-energy prices for the entire summer. Our citizens and city have been forced into a crisis by the State legislature's deregulation of the electricity market. While I and my colleagues from San Diego are seeking solutions to this terrible crisis, I am introducing this bill in an effort to formulate a long-term energy plan.

The Energy Efficient Buildings Incentives Act will provide tax incentives for the construction of energy efficient buildings. Structures of this nature could potentially cut energy usage by as much as 50 percent. This would result in a nearly 6 percent reduction in air emissions over the next 10 years--equivalent to taking 40 percent of the automobiles off the road.

The bill will offer tax incentives to encourage the production and sale of technologically advanced, energy-efficient buildings and equipment. The legislation is structured to promote the creation of competitive markets for new technologies and designs that are not widely available today, but have the possibility of
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being cost effective to the consumer in the future. The incentives will apply to:

Efficient new residential buildings that save 30% to 50% in energy costs compared to national model codes, including a higher incentive for higher savings. Efficient heating, cooling, and water heating equipment that reduce emissions and peak electric loads by about 20% (lower incentives) and 30%-50% (higher incentives) compared to national standards. Efficient commercial buildings with 50% energy and power cost savings. Residential-scale solar hot water and photovoltaic equipment.

The design and administration for these energy efficient structures is based on the track record of successful state programs over the past decade. Buildings account for some 35% of air pollution emissions nationwide, and cost their owners over $250 billion a year in energy costs. They also contribute to well over half of peak electric power demand. If enacted promptly the incentives in this bill will begin to mitigate electric peak reliability problems by the summer of 2001.

This bill will help both families and businesses reduce annual energy costs, saving over $80 billion in present value over the next decade. Energy costs of businesses are tax deductible under current law, so reductions in energy costs means billions of dollars in saving to the Federal government.