March 24, 2008

Senator Clinton Urges Support for Key Energy Efficiency Programs

Washington, DC – Senator Hillary Rodham Clinton today joined a bipartisan coalition of her colleagues to urge Senate leaders to support key energy efficiency programs. In a letter to the Chairman and Ranking Member of the Senate Appropriations Subcommittee on Energy and Water Development, the lawmakers called for Fiscal Year 2009 funding for a wide range of important energy efficiency programs run by the U.S. Department of Energy, including the Weatherization Assistance Program, the State Energy Program, energy efficiency deployment programs, the Equipment Standards and Analysis Program, the Building Program, the Industrial Technologies Program, the Federal Energy Management Program, the Distributed Energy Program, and the Energy Information Administration. These programs help critical communities like low-income families, the elderly, and the disabled by improving the energy efficiency of low-income housing. The programs also work to improve the energy efficiency of schools, hospitals, small businesses, farms, homes and industries, and support research into new energy efficiency technologies.

“As we grapple with the twin challenges of soaring energy costs and global climate change, promoting energy efficiency must be a top national priority.” Senator Clinton said. “I am pleased to join my colleagues in supporting these important programs which will benefit hard working families, businesses, and communities struggling with ever bigger energy bills.”

The text of the Senators’ letter is below.


March 24, 2008

The Honorable Byron L. Dorgan, Chairman
The Honorable Pete V. Domenici, Ranking Member
Subcommittee on Energy and Water Development
Committee on Appropriations
United States Senate
Washington, DC 20510

Dear Chairman Dorgan and Ranking Member Domenici:

We request your support for key energy efficiency programs at the Department of Energy for fiscal year 2009, including the Weatherization Assistance Program, the State Energy Program, energy efficiency deployment programs, the Equipment Standards and Analysis Program, the Building Program, the Industrial Technologies Program, the Federal Energy Management Program, and the Distributed Energy Program. In addition, we request your support for funding for the Energy Information Administration, which provides the necessary information energy markets need to operate effectively.

Our nation faces significant challenges as we strive to ensure our energy security, reduce the economic 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. As oil prices have broken records -- over $109/barrel -- and natural gas prices have increased 24 percent since January 1, energy efficiency and renewable energy programs that improve technologies for our homes, our businesses, and our vehicles are even more critical.

The Weatherization Assistance Program (WAP) helps low-income families, the elderly, and the disabled by improving the energy efficiency of low-income housing. We urge you to fund WAP at no less than $300 million in FY 2009. Each year the program has exceeded its target and weatherized approximately 100,000 homes. Increased funding would allow WAP to expand quickly to reduce energy usage by approximately 25 percent in each assisted home. This represents savings that families can use to pay for other necessities, while reducing the nation’s energy demand by the equivalent of 18 million barrels of oil every year.

The State Energy Program (SEP) improves the energy efficiency of schools, hospitals, small businesses, farms, homes and industries. In addition, state energy offices handle the crucial energy emergency preparedness functions for states, including planning for potential terrorist attacks. We urge you to fund SEP at no less than $75 million for the base program in FY 2009 to enable states to meet the demands of increased security and to continue and expand their invaluable work to promote energy efficiency programs for all Americans. SEP provides significant energy savings – for every dollar invested in the program $7.22 is saved in energy costs (based on 2002 date, when energy prices were lower). SEP leverages $10.71 in non-federal funding for every federal dollar spent and provides hundreds of millions of dollars in direct energy cost savings annually.

Within the Building Technologies program we urge you to fund the Commercial Buildings initiative at no less than the $20 million authorized by the Energy Independence and Security Act of 2007 (EISA), in order to enable this important effort to reach the ambitious goal of zero energy new commercial buildings in the United States by the year 2030. Energy efficiency deployment programs including Rebuild America, Building Codes training and assistance and DOE ENERGY STAR provide critical support for commercializing energy-efficiency technologies and increasing their use, often through matching grants to states. We urge you to provide at least the funding levels noted below for each of the following programs in FY 2009: Rebuild America ($5 million), Building Energy Codes ($10 million), and DOE Energy Star ($10 million). Funding for the Vehicle Technologies Deployment program (formerly Clean Cities) should be at funded at the FY08 level of $12.5 million. In addition, funding should be provided for the public information and media campaigns on energy efficiency authorized by the Energy Policy Act of 2005 (EPACT 2005) and EISA.

The Equipment Standards and Analysis Program has enabled huge energy savings despite its small cost by setting appliance standards and test procedures. As of 2000, appliance standards had already reduced U.S. electricity use by an estimated 2.5 percent (88 billion kWh/year) and reduced peak power demand by approximately 21,000 MW. This is projected to grow to 6.9 percent by 2010. But the program has a backlog of standards to work on, with additional requirements stemming from EPACT 2005 and EISA. We urge you to provide at least the FY 2008 level of $22 million in FY 2009.

The Industrial Technologies Program partners with industry and the states to fund research, technology development, and deployment that enhance energy efficiency and productivity. Industry consumes 36 percent of energy used in the United States. Through the development and use of more efficient technologies, manufacturers can increase productivity and competitiveness while reducing their impact on the environment. We urge you to fund this program at no less than $64.4 million – level funding – in FY 2009, including $2.4 million for the inventions and innovations program and to provide funding for the Energy Intensive Industries program authorized by EISA.

The Federal Energy Management Program has helped cut federal building energy waste by 24 percent from 1985-2001 – a reduction that now saves federal taxpayers roughly $1 billion each year in reduced energy costs. But funding has decreased for this program, even though large savings remain untapped, and EPACT 2005 and EISA impose expanded responsibilities on the program. We urge you to provide this program with at least the President’s request of $22 million in FY 2009, in addition to any funds the department is seeking for federal fleets and DOE infrastructure.

The Distributed Energy Program helps increase the use of distributed generation technologies that protect air quality and deliver much-needed power without further taxing the overstretched transmission and distribution system. This program funds research and development of new efficient distributed energy technologies, including combined heat and power initiatives, while encouraging their deployment. We urge you to fund this program at no less than $60 million in FY 2009. As recent analyses have shown, accelerated deployment of highly efficient combined heat and power technologies can help alleviate both supply and demand pressures in tight natural gas and oil markets.

The Energy Information Administration (EIA) plays a critical role in providing unbiased data to Congress, states, private businesses, and the public so they may understand and respond to changes and fluctuations in the energy markets and determine long-term capital investments in energy infrastructure. Congress and state officials need this data to prepare for and respond to local and regional energy emergencies, track patterns of energy consumption and production and develop effective energy policies. As energy price volatility becomes increasingly problematic, this timely data becomes even more critical to help calm markets. We urge you to fund the EIA at $120.6 million – $10 million above the President’s requested level – for FY 2009.


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