House Bill

• Sets consensus standards on six products - exit signs, traffic lights, building transformers, torchiere lighting fixtures, compact fluorescent lamps, and commercial unit heaters.
• Sets a very weak non-consensus standard on ceiling fans that preempts state standards.
• Calls for DOE to set efficiency standards via a rulemaking on three products - external power supplies, battery chargers, and refrigerated beverage vending machines.

Senate Bill

• Sets consensus standards on 15 products – the six in the House bill plus residential dehumidifiers, commercial refrigerators and freezers, large commercial air conditioners, commercial ice makers, commercial clothes washers, pedestrian signals, mercury vapor lamp ballasts, fluorescent lamp ballasts, and pre-rinse spray valves (used in restaurants).
• Calls for DOE to set efficiency standards via a rulemaking on four products – ceiling fans plus the three other rulemakings called for in the House bill.

ACEEE Recommendations

• Use the Senate provisions as they are newer and include additional consensus standards and also exclude the non-consensus standard on ceiling fans.

House Bill

• Existing homes – 20% tax credit up to $2000 for insulation, windows, and doors that meet model building code requirements and also for Energy Star metal roofs.
• Diesel vehicles – tax credit for cars and light trucks that meet fuel economy requirements and modest emissions standards; credit increases as fuel economy increases.

Senate Bill

• New homes – credit of $1000 for new homes that reduce heating and cooling energy use by 30% relative to model building code; $2000 credit for 50% savings.
• Commercial buildings – deduction of $2.25/sq.ft. for commercial buildings that reduce energy use by 50% relative to model building code. A portion of the deduction can be taken for achieving at least 25% lighting energy savings.
• Combined heat and power (CHP) systems – 10% investment tax credit for new systems up to 15 MW that meet performance requirements. There is also a separate provision that provides 20% credit for CHP systems in clean coke facilities.
• Appliances – credit to manufacturers for incremental sales of efficient refrigerators, clothes washers, and dishwashers.
• Residential heating and cooling systems and water heaters – consumer tax credit of $50 to $300 for advanced high-efficiency central air conditioners, heat pumps, furnaces, boilers, and water heaters.
• Existing homes – sliding-scale tax credit for reducing energy use in existing homes; $800 credit for reducing heating and cooling energy use by 20%, $2000 for savings of 50% or more.
• Hybrid and fuel cell vehicles – tax credit for cars, light trucks, and heavy trucks that meet fuel economy and emissions requirements; credit increases as fuel economy increases.

ACEEE Recommendations

• Use the Senate provisions as they are much more complete and achieve higher savings per dollar invested.

House Bill

• CHP – directs states to consider adopting model interconnection standards.
• Research and development – authorizes continued and new programs in many different sectors.
• Industrial voluntary commitments – directs DOE to set up a program to encourage and recognize industrial facilities that make voluntary commitments to improve energy intensity.
• Appliance labeling – directs the Federal Trade Commission to review and revise the Energy Guide labeling program to make it more effective.
• Federal facilities – updates savings goals for federal facilities and authorizes a variety of new and continued activities to achieve these goals.
• High performance public buildings – authorizes a grant program to states to assist local government with improving the efficiency of its buildings.
• Appliance rebates – authorizes a program to co-fund appliance rebate programs established by states.
• Air conditioner maintenance education – directs DOE to conduct an education campaign on the benefits of properly conducted maintenance.
• Public housing – continues and improves a variety of programs to reduce energy use in public housing.
• Real-time pricing – directs state utility commissions to consider establishing real-time pricing programs in their states.
• Daylight savings time – extends daylight savings time by two months (one in the spring, one in the fall).
• Dual fuel vehicles – extends loophole under which dual fuel vehicles receive fuel economy credit, even though they continue to run almost exclusively on gasoline; this provision reduces efficiency.

Senate Bill

• Includes same provisions as House bill except for the daylight savings time provision. Strengthens industrial voluntary commitments and federal facilities provisions relative to House bill. Extension of dual-fuel loophole is for a shorter period.
• Establishes a goal to reduce U.S. oil use by 1 million barrels per day by 2015; does not include any enforcement mechanism.
• Public awareness campaign – authorizes a major campaign on how to save energy and the benefits of doing so.
• Energy efficiency resource standards – authorizes a pilot program with states and calls for a study with the National Association of Regulatory Utility Commissioners on state and regional policies to promote energy efficiency.
• Building energy codes – expands an existing technical assistance program to states to include a component on code implementation.

ACEEE Recommendations

• Use the Senate provisions as they are updated and more extensive.
• Also include the House's daylight savings time provision.
• Pro-rate fuel economy credit for dual-fuel vehicles based on actual use of alternative fuels.