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Brad p&p presentation 10.06.10
1. End Game for the 111th
Congress: Prospects for Post-
Election Session and Beyond
Policy and Programs Committee
October 4, 2010
Brad Penney
Director of Government Relations
2. Demise of climate legislation and
slim prospects for energy bills
Alliance advocacy for energy bill priorities
in July and early August;
Introduction in July of the “oil spill” bill by
Senator Reid --- (S.3663) Clean Energy Jobs
and Oil Company Accountability Act of
2010
Reid announcement in early July that comprehensive energy &
climate legislation would not be considered this year;
Partisan gridlock & pending mid-term elections; WH did not
press the issue;
Earlier shift in Alliance messaging to stress urgency of passing
an energy bill this year with RES/EERS; codes; appliance
standards and other key provisions;
3. At least three weeks for “lame duck” – possibly longer;
Implementation of National Consensus Agreements (appliances)
Bi-partisan RES bill (S. 3813), requiring utilities to generate 15% of
their electricity from renewable sources by 2021 (up to ¼ of the
requirement can be met by EE);
27 co-sponsors, but questionable whether 60
votes are there;
Bill is identical to the ACELA RES
Reid wants no amendments;
Graham alternative bill has nuclear and clean coal provisions;
Crowded agenda for lame duck session – floor time is a problem.
Outlook for Post-Election
session: RES bill + standards
4. Other Lame Duck Candidates
for Floor Action
Bingaman & Snowe energy
efficiency tax bill (S. 3935)
Bingaman wants new DOE
loan guarantee program;
Extension of clean energy
manufacturing tax credit
Rockefeller bill (S. 3072)
delays EPA regulation of
stationary sources for
two years (not vehicles)
Reid bill on natural gas
vehicles and electric
vehicles (S.3815);
Tax bill/extenders;
5. House
$5 billion grant
program passed in May
MTR stripped out
loan program
$5 billion loan program
passed House with
Rural Star Bill in
September
Two House-passed bills
present two options
for the Senate.
Home Star Current Status
Senate
$5 billion grant
program
included in Reid’s
Oil Spill Bill
Not passed
Bingaman RES
doesn’t include
Home Star
Lame Duck?
6. Roadblock for PACE Funding
• Fannie and Freddie issued a statement on May
5th reminding lenders that PACE programs place
a superior lien in the property, a practice they
do not allow.
• Federal Housing Finance Agency supported the
position in a July 6th statement.
• On August 31st, Fannie Mae and Freddie Mac
issued additional lender requirements:
• PACE loans issued prior to July 6th would
need to be paid off prior to refinancing.
• The lenders would not accept PACE senior
liens issued after July 6th.
What happened with Fannie and Freddie?
7. PACE Current Status
What are the effects?
• Limited credit in areas where PACE financing has occurred.
• Existing PACE participants and PACE programs that do not place
superior liens on property are exempt.
• Municipalities suspending existing programs and recommitting
Recovery Act funding to other activities.
Pending Legislation:
• Legislation in House (H.R. 5766) and Senate (S. 3642) would override
objections of Fannie, Freddie and FHFA.
• Litigation filed by California Attorney General, Babylon, New York, the
Sierra Club and others would oppose the authority of the agencies in
municipal tax assessments.
• Efforts are ongoing. Proposed a pilot program for 300,000 homes for PACE
projects. This exceeds the number of homes currently participating.
8. EE Coalition
Weekly conference calls with 25-30 advocates;
Regular letters to the Senate on issues ranging from tax
priorities to Home Star to efficiency priorities, followed up by
Hill meetings;
Close coordination with Home Star, Building Star coalitions
and other groups to harmonize “messaging”;
EERS Coalition joined Alliance EE Coalition for balance of this
year.
9. Continuing Resolution &
Omnibus Funding bill
CR funds agencies at FY 2010 levels through December
3rd;
DOE/EERE (FY 2010 appropriated levels)
- Building Technologies: $ 222 million
(equipment standards, codes, R&D, CBI, Energy Star)
- Industrial Technologies: $96 million
- FEMP: $32 million
- EE total within the EERE budget: $921 million
EPA
- Energy Star: $53 million
10. American Recovery and
Reinvestment Act
$26B for core efficiency programs
Money obligated, but not fully spent in five key programs:
State Energy Program
Appropriated: $3.1 billion
Spent: $0.5 billion (16%)
Energy Efficiency and
Conservation Block Grants
Appropriated: $3.2 billion
Spent: $.4 billion (12%)
Weatherization Assistance
Program
Appropriated: $5.0 billion
Spent: $1.5 billion (31%)
Appliance Rebates
Appropriated: $300 million
Spent: $187 million (63%)
Smart Grid Grants and
Demonstration
Appropriated: $4.2 billion
Spent: $.3 billion (8%)
*This data is through Sept. 17th 2010
11. ARRA EE spending to date
Of these programs, only about $3 billion has been spent
as of September 17:
- Low estimate: only funds associated with completed projects
can be counted as “spent.” Also does not account for private
investment in stimulus funded projects.
- DOE has overcome major federal hurdles
(NEPA, Davis-Bacon, etc.)
BenefitsHomes: 3.3 millionJobs: 168 thousandHomeowner Savings $10 billion over 10 years
As Home Star was building momentum, Rebuilding America thought there was great need for a commercial complement. Not only is there vast potential for energy savings and need for ee retrofits in the commercial building sector (46% percent of the building energy consumption comes from commercial buildings sector), it would also give an additional shot in the arm to the suffering construction and manufacturing industries.For commercial and multi-family (5+ units). Run out of DOE, a two year program Rebate ProgramLike Homestar, Building Star’s most significant component is its rebate program – bulk of funding goes to it. Qualifying products include ee insulation, windows, HVAC like H*as well as audits, energy management systems, training of building manager, tune-ups etc (different from Home Star in this regardAdditional to other rebates and existing federal and state incentives.
In addition to the appropriations through ARRA, Congress has given substantial budgets to DOE and EPA for EE programs and research.[CHP is not listed under ITP in Lowell’s matrix.]Energy STAR – Alliance has been very active in the process of working towards greater appropriations In 2008, Energy STAR homes saved an annual 15 trillion BTUs of NG and represented 17% of the new home market (McKinsey&Co, July2009)
The first of the administration’s indications that EE is a priority. $26 billion specified for EE in “core” funding, but up to $65 billion counting provisions that include EE as an eligible use (among many) of funds, eg. school modernization under the State Fiscal Stabilization Fund. All of these, unless otherwise noted, are run through DOE’s EERE. SEP: provides grants to states and directs funding to SEOs for EE and RE programs. Additional funding conditional on state’s commitment to 1) adopt utility regulatory reform that removes utility disincentives to invest in energy efficiency programs; 2) adopt and enforce the most recent residential and commercial building codes (ASHRAE Standard 90-2007 and IECC 2009); and 3) prioritize existing state programs when distributing funding for SEP. Eligible activities under the grant include the EE capital investments, pursuit of building retrofit standards and regulations, etc.EECBG: grants to states, local governments, and tribes. Eligible activities include municipal building retrofits, establishing ee finance incentive programs (loan and rebate programs). Retrofit Ramp-up is the majority of the $400 competitive. WAP: grants to states who pass to community action agencies, non-profts,and local gov’ts to complete low income retrofits.Appliance rebates: grants to states for consumer purchases of residential Energy Star appliances, in addition to existing rebate programs GSA: to convert federal facilities to “High-Performance Green Buildings.” An additional $400 million is appropriated to establish the Office of Federal High-Performance Green Buildings.ARPA-E: research to improve the energy efficiency of all economic sectors. Though ARPA-E was created two years ago, this is the first funding it has received