Energy Policy Modernization Act of 2015
Floor Speech
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Mrs. SHAHEEN. Madam President, I am thrilled to join my partner in efficiency, Senator Portman, in addressing the energy efficiency provisions of the Energy Policy Modernization Act.
Before I get to those, I congratulate Chair Murkowski and Ranking Member Cantwell for everything they have done to move this Energy bill forward. At a time when I think most of us thought this Energy bill was gone for this Congress--again, for the third time--they have been able to rally to bring people together to get consensus to move a bill that not only deals with the energy efficiency provisions that Senator Portman and I have championed but also improves a broad array of energy policies for this country, and it would permanently reauthorize the Land and Water Conservation Fund. I congratulate them on giving us yet a third opportunity--hopefully--to vote on this bill and to finally be able to pass it. As Senator Portman said, the third time is a charm, hopefully. For 5 years, he and I have worked to advance the Energy Savings and Industrial Competitiveness Act, or what was known initially as Shaheen-Portman, which has now become Portman-Shaheen in this Congress. Many of the provisions in that original legislation are in this Energy Policy Modernization Act. While over the last 5 years we have been able to get some of the original provisions in the legislation through, the fact is, most of the significant provisions are in this current bill. I thank Senator Portman for being such a great partner on energy efficiency and for helping to advance this legislation in a way that gives us another chance to hopefully vote successfully on the bill.
I have been a huge fan of energy efficiency since my years as Governor of New Hampshire because I believe that energy efficiency is the cheapest, fastest way to reduce our energy use. Energy savings techniques and technologies reduce carbon pollution. They lead to substantial energy savings that allow for businesses to expand, for us to create jobs, and for our economy to grow.
In a Congress that is too often divided along partisan lines on so many issues, energy efficiency is one priority that can bring us together on a bipartisan, bicameral basis because energy efficiency is beneficial to everyone, regardless of what part of the country they live in and regardless of their energy source. We can all benefit from energy efficiency. And those are the provisions that are in this legislation.
I will try not to repeat too much of what has already been said by Senator Portman, Senator Murkowski, and Senator Cantwell about the bill, but I did want to go through a couple of the energy efficiency provisions that are in the legislation because it reduces the barriers to efficiency in a number of ways.
First, in buildings, it would strengthen outdated, voluntary national model building codes to make new homes and commercial buildings, which account for more than 40 percent of U.S. energy consumption. These provisions are especially important in this legislation because much of the savings in efficiency come from these national model building code provisions. Again, as Senator Portman has said, these are not done through mandates, they are done through incentives, through our encouraging States to adopt these model building codes.
The energy efficiency provisions also deal with industrial efficiency. They assist the industrial manufacturing sector, which consumes more energy than any other sector of the U.S. economy. They help that sector implement efficient production technologies and would encourage the private sector to develop innovative energy-efficient technologies for industrial applications, to invest in a workforce that is trained to deploy energy efficiency practices to manufactures.
Finally, the other major section of the efficiency provisions from Portman-Shaheen deals with the Federal Government. We encourage the Federal Government--which is the Nation's largest energy consumer--to adopt more efficient building standards, to adopt smart metering technology, and to look at our data centers and see how we can reduce costs and energy use. Through doing that, not only can we save energy, but we can save taxpayers millions of dollars.
Just the energy efficiency provisions from Portman-Shaheen in the legislation would create nearly 200,000 jobs by 2030--a significant job creator in the bill. It would reduce carbon emissions by the equivalent of taking over 20 million cars off the road, and it would save consumers over $16 billion a year. There are significant benefits to this energy efficiency.
Again, as Senator Portman has said, these are provisions that have brought together a very diverse group of stakeholders, everyone from the American Chemistry Council, to the National Wildlife Federation, as Senator Portman said, the NRDC, the National Association of Manufacturers, and the U.S. Chamber of Commerce. This is a broad group of trade associations, labor organizations, and environmental groups who have come together because energy efficiency is something on which we can all agree.
Hon. Mitch McConnell, Majority Leader, U.S. Senate, Russell Senate Office Building, Washington, DC. Hon. Harry Reid, Democratic Leader, U.S. Senate, Hart Senate Office Building, Washington, DC.
Dear Majority Leader McConnell and Democratic Leader Reid: We are writing to express our priorities for energy efficiency provisions in S. 2012, the Energy Policy Modernization Act of 2015. As you know, S. 2012 was approved by the U.S. Senate Committee on Energy and Natural Resources (ENR) with strong bipartisan support on July 30, 2015, under the leadership of Chairwoman Lisa Murkowski and Ranking Member Maria Cantwell. We encourage the Senate to take up S. 2012 with the following priorities in mind to help maintain bipartisan support and pass a bill that can be enacted into law.
First, S. 2012 should preserve and strengthen the role of the U.S. Department of Energy (DOE) in supporting and propagating updated building energy codes at the state and local level. In terms of energy and cost savings, as explained in more detail in the enclosed analysis prepared by the American Council for an Energy-Efficient Economy (ACEEE), U.S. homeowners and businesses stand to realize tremendous gains from state and local adoption of current building energy codes. U.S. DOE's role in code adoption is critical and S. 2012 (as reported) would lead to even greater savings over time. We support the building energy codes language currently included in S. 2012 and encourage in the strongest terms its inclusion in any comprehensive energy legislation considered by the Senate.
Second, we encourage the Senate to adopt provisions that would permit and encourage the inclusion of energy efficiency in the residential mortgage underwriting process. These provisions were first articulated in the Sensible Accounting to Value Energy (SAVE) Act, first introduced by Senators Johnny Isakson and Michael Bennett, and currently included in legislation that was also favorably reported by the Senate ENR Committee with strong bipartisan support. The SAVE Act would allow the commonsense consideration of energy efficiency during mortgage underwriting, which would help homeowners realize the true value of home improvements that improve comfort and generate savings. We would support an amendment to add the SAVE Act provisions to S. 2012.
Third, we urge the Senate to approve an amendment that would replace the current provisions relating to residential furnace standards in S. 2012 with language that matches Sec. 3123 of H.R. 8, the North American Energy Security and Infrastructure Act of 2015, which was approved by the House of Representatives on December 3, 2015. Unfortunately, at the last minute, apparently due to the time-crunch that typically accompanies a committee business meeting, language was added to S. 2012 that did not reflect a consensus reached by stakeholders. We would support an amendment to replace the current non-consensus furnace standard language in S. 2012 with the House-adopted consensus language that was developed over time and is broadly supported by stakeholders.
And fourth, we also support the retention of reauthorizations of the Weatherization Assistance Program and the State Energy Program in S. 2012. These provisions are critical for low-income Americans in all parts of the country and generate benefits across all sectors of the economy.
Energy efficiency is an energy resource--available to all homeowners and businesses--that is essential to our country's energy independence. More than half of the energy used today to power our economy is wasted, which represents an enormous opportunity for achieving savings and extracting gains in the energy productivity of our economy. The Senate now has an opportunity to pass comprehensive legislation, which currently enjoys strong bipartisan support, that would improve the energy efficiency of homes and commercial buildings in every town, city, county, and state; help consumers and businesses manage their energy consumption and realize returns on their investments; and generate meaningful savings for all Americans. Thank you for your consideration. Alliance to Save Energy, American Council for an Energy- Efficient Economy, ASHRAE, Association of Energy Engineers, Big Ass Solutions, Efficiency First, Energy Future Coalition, Environmental and Energy Study Institute, Home Performance Coalition, Institute for Market Transformation, International Association of Lighting Designers, International Copper Association, Ltd., Large Public Power Council, National Association of Energy Service Companies, North American Insulation Manufacturers Association, National Association of State Energy Officials, Sacramento Municipal Utility District, Schneider Electric, Seattle City Light, The Stella Group, Ltd., U.S. Green Building Council. ____ NAIOP, Commercial Real Estate Development Association, Herndon, VA, January 27, 2016. Hon. Mitch McConnell, Majority Leader, U.S. Senate, Washington, DC. Hon. Harry Reid, Minority Leader, U.S. Senate, Washington, DC. Re support for ``The Energy Policy Modernization Act of 2015'' (S. 2012).
Dear Majority Leader McConnell and Minority Leader Reid: On behalf of NAIOP, the Commercial Real Estate Development Association, I write to express our strong support for ``The Energy Policy Modernization Act of 2015'' that passed the Energy and Natural Resources Committee with a bipartisan vote.
NAIOP is the leading organization for developers, owners, investors and related professionals in office, industrial, retail and mixed-use real estate, and comprises 18,000 members and 48 local chapters throughout the United States.
Specifically, we support the language that was drafted by Senators Rob Portman (R-OH) and Jeanne Shaheen (D-NH) and included in the energy efficiency title for buildings in the bill. We have worked with staff for a number of years on this issue, and we commend Senators Portman and Shaheen for facilitating the numerous discussions that took place with a variety of stakeholders. The latest version of this bill reflects a broad compromise on a host of efficiency measures that has increased support for this bipartisan legislation.
In order to create responsible building codes, economic feasibility and initial costs need to be considered with a realistic payback to the developer in order for energy efficiency gains to be viable. This legislation ensures that the Department of Energy will consider the recoupment of investment costs when developing efficiency targets, and allows for comment on those targets through a formal rulemaking.
We are thankful for the opportunity to represent the interests of the commercial real estate development industry throughout this process and feel strongly that this legislative approach is the best way for the federal government to promote energy efficiency in the built environment.
I respectfully urge you and your colleagues to pass this important legislation. Sincerely, Thomas J. Bisacquino, President and CEO, NAIOP. ____ January 27, 2016. Hon. Mitch McConnell, Majority Leader, U.S. Senate, Washington, DC. Hon. Harry Reid, Democratic Leader, U.S. Senate, Washington, DC.
Dear Leaders McConnell and Reid: We the undersigned businesses and trade associations are writing to express our strong support for the policies included in Energy Policy Modernization Act of 2015 (S. 2012) that promote energy efficiency in industrial, commercial, and residential applications and urge full Senate consideration early this year.
We support low to no-cost, no-mandate bills that advance energy efficiency, while preserving the critical role of government oversight. American taxpayers save money on their energy bills and businesses thrive when we reduce regulatory burdens, increase transparency, and focus on the federal government as a first mover. We believe that the energy efficiency provisions in S. 2012 will have a positive impact on the U.S. economy.
Our businesses, along with many trade associations, companies and advocacy organizations, have long supported common sense energy efficiency legislation, such as those sponsored over the last two Congresses by Senators Portman and Shaheen. We commend Chairman Murkowski and Senator Cantwell for including these provisions in S. 2012. We believe that the energy efficiency title of S. 2012, which passed out of Committee on an 18-4 vote, is a win-win approach that will reduce energy consumption, advance the adoption of new technologies, produce energy savings for businesses and families, and encourage private-sector job creation creating a stronger and more durable American economy.
Some of the sections we are most enthusiastic about include the federal energy related provisions and the building codes section, which was developed through a bipartisan, transparent process and does not include state mandates. We urge lawmakers to retain the current language supporting strong, updated model building energy codes. Several of the provisions we support have also been introduced as stand- alone legislation such as S. 869, the All-of-the-Above Federal Building Energy Conservation Act of 2015; S. 1046, the Smart Building Acceleration Act; S. 1054, the Smart Manufacturing Leadership Act; and S. 858, the Energy Savings Through Public Private Partnership Act. We would further ask that you include S. 1038, the Energy Star Program Integrity Act and the SAVE Act, which was included in The Energy Savings and Industrial Competitiveness Act (S. 720) reported out by the Energy and Natural Resources Committee last year, and is a voluntary means to improve residential energy efficiency and thereby save homeowners money.
We urge you to bring S. 2012 to the Senate for a vote early this year. It includes pragmatic, reasonable energy policies. Energy efficiency policies that enjoy strong bipartisan support, do not rely on an outlay of taxpayer dollars, and do not impose mandates on consumers deserve prompt consideration by Congress. Sincerely, A.O. Smith Corporation, ABB Inc., Accella Performance Materials, American Chemistry Council, BASF, Big Ass Solutions, Bosch Group, Composite Lumber Manufacturers Association, Copper Development Association, Covestro, LLC, Danfoss, Dow Chemical Company, Extruded Polystyrene Foam Association, Federal Performance Contracting Coalition, Honeywell, Ingersoll Rand, Johnson Controls, Inc., National Association of Manufacturers, National Electrical Manufacturers Association, North American Insulation Manufacturers Association, Owens Corning, PPG Industries, Quadrant Urethane Technologies Corp., Roof Coatings Manufacturers Association, Schneider Electric, Siemens Corporation, Society for Maintenance and Reliability Professionals, SPI: The Plastics Industry Trade Association, The Brick Industry Association, U.S. Chamber of Commerce, United Technologies, Whirlpool Corporation.
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Mrs. SHAHEEN. In closing, in a little while this afternoon, we will have a series of votes on amendments to the Energy Policy Modernization Act, and we will have a final vote for passage of the bill. I believe and it is certainly my hope that the broad package will pass. I think it has been far too long since Congress passed a comprehensive energy bill. It is time for us to work together to pass this important piece of legislation to improve our Nation's energy policies and to help grow our economy.
I believe there is support in the other Chamber, in the House, to take up this energy package and hopefully to pass it this year because it will improve our economy, it will improve our national security, and it will improve our environment. This is legislation we should all get behind.
Again, I thank my colleague Senator Portman and applaud Senators Cantwell and Murkowski for all of the work they have done to bring this legislation to the floor.
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