Energy Efficiency: Budget, Oil Conservation, and Electricity Conservation Issues Page: 3 of 19
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10-29-04
Energy Efficiency: Budget, Oil Conservation, and
Electricity Conservation IssuesSUMMARY
Energy security, a major driver of federal
energy efficiency programs in the past, came
back into play as oil and gas prices rose late in
the year 2000. The terrorist attack of Septem-
ber 11, 2001, and the Iraq war of 2003 height-
ened concern for energy security and raised
further concerns about the vulnerability of
energy infrastructure and the need for alterna-
tive fuels. Further, the 2003 northeast-mid-
west power blackout, the 2001 power short-
ages in California, and the high natural gas
prices in 2003 brought a renewed emphasis on
energy efficiency and energy conservation to
dampen electricity (and natural gas) demand.
Also, worldwide emphasis on environ-
mental problems of air and water pollution
and global climate change, and the related
development of clean energy technologies in
western Europe and Japan, may remain impor-
tant influences on energy efficiency policy-
making. Concern about technology competi-
tiveness may also remain a factor in the de-
bate.
In the 108th Congress, debate over energy
efficiency programs has focused on budget,
oil, natural gas, and electricity issues, and
provisions in the omnibus energy policy bill,
S. 2095, H.R. 6, and S. 14/S. 1149.
The Bush Administration's FY2005
budget request for the Department of Energy's
(DOE's) Energy Efficiency Program seeks
$875.9 million, including $543.9 for R&D and
$332.0 million for grants.The House-passed FY2005 Interior
appropriations bill (H.R. 4568) has $656.1
million for DOE's Energy Efficiency program,
including $611.0 million for R&D and $45.1
million for state grants. The House-passed
Labor appropriations bill has $238.0 millionfor Weatherization.
The Senate Appropriations Committee
reported the FY2005 Interior bill (S. 2804)
with $854.3 million. It has $580.5 million for
R&D and $273.8 million for grants, of which
$230.0 million is for Weatherization.
In the first session, the H.R. 6 conference
bill had several significant tax and regulatory
measures for energy efficiency. It did not pass
the Senate due to concerns about cost and an
MTBE "safe harbor" provision.
In the second session, S. 2095 was intro-
duced without the controversial MTBE provi-
sion and with a cost estimated at about half
that of H.R. 6. S. 2095 has key provisions
from H.R. 6: It would set an efficiency stan-
dard for "standby mode" energy use in battery
chargers and externalpower supplies;legislate
efficiency standards for certain equipment and
direct DOE to set a standard by rule for other
types of equipment; and set higher goals for
efficiency in federal buildings.
Also, S. 2095 would create several tax
incentives for energy efficiency measures in
home construction, home renovation, appli-
ances, residential equipment, commercial
buildings, fuel cells, and combined heat and
power equipment. Tax incentives for electric
vehicles and alternative fuels are also in-
cluded.
P.L. 108-357 provides tax-exempt bonds
for green buildings and reduces the tax deduc-tion for SUVs. P.L. 108-311 extends a tax
credit for electric vehicles and a tax deduction
for clean fuel vehicles. Neither law contains
any of the key energy efficiency tax provisions
in H.R. 6, S. 2095, or S. 1637.e The Library of Congress " CRS
Congressional Research Service
IB10020
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Sissine, Fred. Energy Efficiency: Budget, Oil Conservation, and Electricity Conservation Issues, report, October 29, 2004; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metacrs5870/m1/3/?q=%22energy%22: accessed July 17, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.