ACEEE PRESS BRIEF
NEW ANALYSIS FINDS DASCHLE ENERGY BILL A
"GOOD START" ON ENERGY EFFICIENCY BUT "CRUCIAL PROVISIONS
MISSING"
For further information, contact: Harvey Sachs or Ed Osann at 202-429-8873,
ext. 724
FOR IMMEDIATE RELEASE
December 6, 2001
WASHINGTON, D.C. -- Now that Senate Majority Leader Tom
Daschle (D-SD) has released his long-awaited energy bill, an initial
analysis by the American Council for an Energy-Efficient Economy
(ACEEE) finds that the bill's energy efficiency provisions are
"promising but incomplete."
"The Daschle bill contains sound proposals that will help
Americans save energy," noted ACEEE Executive Director Steven Nadel,
"but several of the most crucial efficiency measures under
consideration are either still in preparation or are missing from
the bill."
The efficiency of U.S. energy use will benefit from
several of the bill's provisions, including:
- new minimum efficiency standards for a variety of consumer and
commercial products;
- a program to obtain voluntary commitments from industry to
improve energy efficiency in manufacturing;
- a program to assist in the design and construction of
efficient schools; and,
- a directive to evaluate and improve the yellow ENERGY GUIDE
label now found on many new home appliances.
Taken together, these provisions are notably stronger than
similar provisions contained in the energy bill approved by the
House of Representatives in August.
Major Gaps Remain
The bill does not yet contain either tax credits for
advanced energy-efficient technologies or improvements to passenger
vehicle fuel economy standards. The Senate Finance Committee is
reportedly still working on the tax credit provisions, and a
passenger vehicle fuel economy provision is still under discussion.
"The fuel economy of new passenger vehicles is at its lowest
point in 20 years, " Nadel stated. "Action is needed now to help
stem the growth in oil use and U.S. oil imports."
Another major omission is in the bill's electricity restructuring
title, which lacks any significant provision to restore utility
investments in energy efficiency, a gap that Nadel called a "major
disappointment."
"More than a dozen states have included significant energy
efficiency provisions in their electric utility restructuring bills
in order to address cuts in energy efficiency efforts caused by
restructuring," Nadel noted. "The federal government should follow
these leaders."
Less Savings than the House-passed Bill due to Key
Omissions
As part of its analysis of the Daschle bill, ACEEE developed an
estimate of the energy savings of the bill's provisions. Overall,
ACEEE estimates that the Daschle bill will reduce U.S. energy use by
more than 25 quads over the 2002-2020 period, a reduction of about
1.2% in projected consumption over this period. [Editors note: A
'quad' is a quadrillion British thermal units - or BTUs, a measure
of energy use. The U.S. used 98 quads in 2000].
Senate approval of likely tax credits for energy efficiency would
nearly double the savings of the Daschle bill, and inclusion of
strong passenger vehicle fuel economy standards and electric
industry efficiency provisions could each add an additional 2 to 3%
to the savings total. The Daschle bill, plus the missing tax credit,
fuel economy, and electricity efficiency provisions, could reduce
U.S. energy use by 8% over the 2002-2020 period, ACEEE concluded.
[See attached
tables.]
In comparison, a previous ACEEE analysis of the energy bill
passed by the House of Representatives in August found significant
shortcomings. The House efficiency provisions that correspond to
those in the Daschle bill will save about 7 quads of energy over
the 2002-2020 period, just over 1/4 the savings of the comparable
provisions of the Daschle bill. However, the House bill does contain
significant tax credits for efficient technologies and requires a
slight improvement in passenger vehicle fuel economy, issues that
remain unaddressed in the Daschle bill, bringing total savings from
the House bill to 28 quads, somewhat more than the Daschle bill as
introduced.
"The Senate needs to augment this bill in order to reduce
America's dependence on fossil fuels, improve the reliability and
security of our energy supplies, and save consumers and businesses
money. The Senate may yet produce a bill that would save from 4 to 6
times as much energy as the House-passed bill, but the Daschle bill
is only a start in that direction," concluded Nadel.