Potential Energy Legislation

Major Energy Efficiency Issues likely to come before Congress in 2008 or 2009

• For additional details on the House RES and its inclusion of energy efficiency, click here.
• New ACEEE report: Assessment of the House Renewable Electricity Standard and Expanded Clean Energy Scenarios

Energy Efficiency Tax Incentives. In 2007, the House and Senate both developed provisions to extend and update current energy efficiency tax incentives and to add several new incentives. This provision passed the House but fell one vote short of the 60 required to end a filibuster in the Senate.  The provisions had broad support, but there was opposition to the mechanism proposed to pay for these tax incentives (rescinding a tax break for large oil companies). Congressional leadership has said they will look for opportunities to move this provision in 2008. 

• Click here for details on current Congressional action regarding the tax incentive provision.
• For additional details on tax incentives in the August 2007 House and June 2007 Senate Energy Bills, click here.

Building Codes.  The 2007 House bill contained two provisions - one calling for DOE and states to update energy codes for new buildings and another calling for updating energy codes for manufactured housing.  The first provision directed DOE to support efforts by model code organizations to update building codes to reduce energy use of new buildings by at least 30% by 2010, and 50% by 2020. The 30% target is based on a goal set by the American Society of Heating Refrigerating and Air-Conditioning Engineers (ASHRAE) for the pending 2010 update of their model commercial building code. The 50% goal is a qualification level for energy efficiency tax credits adopted by Congress in 2005. As new codes are finalized, states were directed to either adopt these model codes or their own state-specific equivalents. Funding and technical assistance to states was authorized. The second provision moved authority over energy codes for manufactured housing to DOE (HUD has done little with its current authority) and called for these codes to generally be based on the model codes for standard housing.  In order to meet long-term energy goals, it is important that new buildings be as energy-efficient as is economically justified, since it will be much more expensive to retrofit these buildings after they are completed. This provision was dropped during conference negotiations due to opposition from some Senators.

Oil Savings Targets.  The 2007 Senate bill contained a provision directing the Office of Management and Budget to develop an action plan, consisting of requirements and standards to be adopted by various agencies, that will reduce U.S. oil use by 2.5 MBD in 2016, 7 MBD in 2026, and 10 MBD in 2031 relative to oil use in a business-as-usual scenario. OMB was directed to provide regular reports on progress and to revise the plan if we are falling short of the target. Policies that can be employed to help meet this target include increased use of alternative fuels, improved vehicle fuel economy, increased use of substitute feedstocks in industry, and improved efficiency in oil- and propane-heated homes and buildings (propane often comes from oil). The provision did not include an enforcement mechanism to ensure these goals were met. The provision was dropped at the last minute from the final bill.

For more information contact:
Steven Nadel, Executive Director

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