Alliance to Save Energy
Analysis of the Daschle-Bingaman Energy Legislation

The energy efficiency provisions of the Daschle-Bingaman bill would save millions of dollars and avoid the need to build hundreds of power plants by 2020. It is imperative that the Commerce committee recommend a substantial increase in vehicle fuel economy standards to help wean our nation from its growing dependence on foreign oil, and that the Finance committee include energy efficiency tax incentives that will stimulate the economy and strengthen electricity reliability.

The following provisions are not in the bill today:

• Vehicle Fuel Economy: No provision in the energy debate can decrease our dependence on foreign oil as much as vehicle fuel economy. Current studies show that we can increase fuel economy to 40 mpg and save nearly 2 million barrels of oil per day by 2012. Not only will this save consumers thousands over the life of their vehicle, but it will also reduce our oil dependence and help protect our environment.
  
  
• Tax Incentives: The tax title should include incentives for the construction of highly efficient new homes and commercial buildings, significant upgrades for existing homes, and the purchase of hybrid vehicles, household appliances, and other products. Tax incentives serve the dual purpose of speeding the use of energy-efficient products and practices as well as educating builders, home owners, businesses, and consumers about the economic benefits of greater energy efficiency.
  
  
• Electricity: Strong energy efficiency measures in the electric sector can reduce by as much as half the number of power plants we will have to build over the next 20 years to meet future demand. Beyond product energy efficiency standards, this bill does not include any significant provision to go after this huge potential for energy savings. While formulating an aggressive policy has snagged over federal-state jurisdiction issues, it is critical that the Congress continue to work this out before the bill comes to the Senate floor.
  

The following elements are in the bill as introduced:

• Product Standards: The bill expands energy efficiency standards by legislating standards or directing rulemakings on new standards for seven new classes of products, and it directs that the standard calling for a 30% increase in residential central air conditioners efficiency be implemented as published last January.
  
  
• Federal Energy Management: The federal government is the biggest energy user in the world -wasting over $1 billion annually on its inefficient energy consumption. By strengthening energy goals and accountability, ensuring that buildings and products purchased are energy efficient, and providing for a Federal Energy Bank to fund efficiency improvements. These provisions will save millions of taxpayer dollars a year.
  
  
• Other provisions: Additional savings are expected from other provisions promoting efficiency in schools, Energy Star labeling, and real time pricing.

For more information contact Dave Hamilton at the Alliance -- (202) 530-2216

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The Alliance to Save Energy is a coalition of prominent business, government, environmental, and consumer leaders who promote the efficient and clean use of energy worldwide to benefit consumers, the environment, economy, and national security.

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This page was updated December 5, 2001
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