Statements on Introduced Bills and Joint Resolutions S361

STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

By Mrs. LINCOLN (for herself, Mr. Allard, Mr. Grassley, Mr. Harkin, Ms. Stabenow, Mr. Hagel, Mr. Levin, and Mr. DeWine):

S. 361. A bill to amend the Internal Revenue Code of 1986 to allow for an energy efficient appliance credit; to the Committee on Finance.

Mr. GRASSLEY. Mr. President, I rise to voice my strong support for legislation introduced today by Senators LINCOLN and ALLARD, entitled "The Resource Efficient Appliance Incentive Act of 2003." I'm proud to be an original cosponsor.
This legislation will provide a valuable incentive to accelerate and expand the production and market penetration of ultra energy-efficient appliances. By providing a tax credit for the development of super energy-efficient washing machines and refrigerators, this legislation creates the incentives necessary to increase the production and sale of these appliances in the short term and ultimately lead to a dramatic change in consumer purchasing decisions.

Under this proposal, manufacturers would be eligible to claim a credit of either $50 or $100, depending on efficiency level, for each super energy-efficient washing machine produced between 2003 and 2007. Likewise, manufacturers would be eligible to claim a credit of $50, $100, or $150, depending on efficiency level, for each super energy-efficient refrigerator produced between 2003 and 2007. It is estimated that this tax credit will increase the production and purchase of super energy-efficient washers by almost 200 percent and the purchase of super energy-efficient refrigerators by over 285 percent.
Equally important is the long-term environmental benefits of the expanded use of these appliances. Over the life of the appliances, over 200 trillion Btus of energy will be saved. This is the equivalent of taking 2.3 million cars off the road or closing 6 coal-fired power plants for a year. In addition, the clothes washers will reduce the amount of water necessary to wash clothes by 870 billion gallons, an amount equal to the needs of every household in a city the size of Phoenix, Arizona for two years. And, the benefits to consumers over the life of the washers and refrigerators from operational savings is estimated at nearly $1 billion.

In my home State of Iowa, this legislation would result in the production of 1.5 million super energy-efficient washers and refrigerators during the next five years. I also expect Iowans to save $11 million in operational costs over the life span of the appliances, and 9 billion gallons of water—enough to supply drinking water for the entire State for 30 years.
As Chairman of the Senate Finance Committee, I look forward to working with Senators LINCOLN and ALLARD as we continue to promote energy conservation and efficiency.