Washington, DC – Senator Hillary Rodham Clinton joined several of her colleagues in pushing to reverse past reductions in funding to the Energy Efficiency and Renewable Energy (EERE) account by increasing funding as close as possible to the $3.8 billion authorized level from the Energy Policy Act of 2005. In a letter delivered to the Chairman and Ranking Member of the Budget Committee, the senators expressed concern that funding for energy efficiency has fallen nearly one-third since 2002, and that despite recent additions in funding more of an investment needs to be made in order to ensure that our nation’s energy resources remain secure and affordable. The lawmakers also urged the Committee to allow room in the FY09 budget resolution for multi-year extensions and enhancements for key energy efficiency and renewable energy tax incentives that are set to expire in 2008.

“As our nation faces the challenges of rising energy prices and global climate change, we should be doing everything possible to foster energy efficiency and renewable energy. Increasing our investment in energy efficient technology will not only create new jobs but will also provide affordable, clean energy to America’s homes and businesses and help move our nation toward energy independence,” said Senator Clinton.

Energy efficiency programs help save more energy than we can get from any other single energy source, yet efficiency funding has fallen alarmingly since 2002. Additionally, several energy efficiency and renewable energy tax incentives that are critical to investments in clean energy technologies expired in 2007, with many other set to expire in 2008. This is why we must take steps now to respond to the energy challenges that face our nation.

A copy of the letter to the Chairman and Ranking Member is attached -


The Honorable Kent Conrad, Chairman
The Honorable Judd Gregg, Ranking Member
Committee on the Budget
United States Senate
Washington, DC 20510

Dear Chairman Conrad and Ranking Member Gregg:

We respectfully request the fiscal year (FY) 2009 budget resolution provide increased funding in Function 270 for energy efficiency and renewable energy programs. Our nation faces significant challenges as we strive to ensure our energy security, reduce the economic and social risks of high energy prices, and address global climate change.

Energy efficiency is the nation's greatest energy resource. We now save more energy each year from energy efficiency than we get from any single energy source, including oil, natural gas, coal, and nuclear power. A 2001 National Research Council report found that for every dollar invested in a range of Department of Energy energy-efficiency programs, nearly $20 was returned to the U.S. economy in the form of new products, new jobs, and energy cost savings to American homes and businesses.

Efficiency funding has fallen alarmingly since 2002. The FY 2008 Omnibus Appropriations Bill provides $1.7 billion for the Energy Efficiency and Renewable Energy (EERE) account at the Department of Energy. The $265.3 million added in FY 2008 will help restore the cuts of recent years, but increased investment is necessary. The Energy Policy Act of 2005 and the Energy Independence and Security Act of 2007 authorize billions of dollars for the EERE account. We recognize the difficult fiscal constraints facing the Budget Committee as it crafts the FY 2009 resolution. Therefore, we request the Committee increase funding for these programs as close as possible to the $3.8 billion authorized level from the Energy Policy Act of 2005. This level of investment would allow these programs to make a real impact on reducing our nation's energy demand.

The Energy Policy Act of 2005 created several energy efficiency and renewable energy tax incentives that are critical to investment in clean energy technologies. Some of these incentives expired in 2007 and many more will expire at the end of 2008. We also urge the Budget Committee to allow room in the FY 2009 budget resolution for multi-year extensions and enhancements to these important tax incentives.

We look forward to working with you to rebuild the nation's capacity to respond to our critical energy challenges and make sound investments for the future. Thank you for your consideration of this request.

Sincerely,

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