The Energy Savings and Industrial Competitiveness Act: S. 385 and H.R. 1443

Summary

Energy efficiency—providing the same or an improved level of service with less energy—has been of interest to some Members of Congress. Proponents of increased energy efficiency see an untapped “resource” that can mitigate the demand for additional energy supplies. Perceived benefits of energy efficiency include lowered energy bills, reduced demand for energy, improved energy security and independence, and reduced air pollution and greenhouse gas emissions. Challenges to energy efficiency include market barriers that do not incentivize builders or developers to invest in energy efficiency, customers’ lack of information or awareness of energy saving opportunities and investment returns, and policy barriers that focus on energy supply rather than investment in energy efficiency.

S. 385—the Energy Savings and Industrial Competitiveness Act—and its House companion bill, H.R. 1443, address energy efficiency in buildings, industry, and federal agencies, and various regulatory measures. Energy savings through increased efficiency can be significant. Estimates by the Department of Energy (DOE) and the National Academies of achievable energy savings using available cost-effective technologies are about 20% for the buildings sector and range from 14% to 22% for the industrial sector. Combined, these sectors consume 72% of all U.S. primary energy. Further savings can be realized through efforts to improve energy efficiency across the federal government, which is the single largest energy consumer in the United States.

The Congressional Budget Office (CBO) estimated that S. 385 would increase direct federal spending by $17 million between 2017 and 2027. Enacting the bill would not affect revenues. CBO estimated that implementing the legislation would cost the government $198 million over the next five years, assuming appropriations actions that fulfill all provisions of the legislation.

Supporters of S. 385/H.R. 1443 state that the bills can improve competitiveness, save consumers money, and increase energy security while reducing air pollution and greenhouse gas emissions. Provisions identified as potentially controversial include directing DOE to establish aggregate energy saving targets for commercial and residential buildings, determining cost-effectiveness of conservation measures over the lifetime of the building, and removing the requirement to eliminate fossil fuel use by federal buildings.

S. 385 was reported without amendment by the Senate Committee on Energy and Natural Resources (SENR) on May 10, 2017. H.R. 1443 was referred in the House on March 9, 2017, to the following committees: Energy and Commerce; Budget; Financial Services; Science, Space, and Technology; Transportation and Infrastructure; and Oversight and Government Reform.

On June 28, 2017, S. 1460, the Energy and Natural Resources Act of 2017, was introduced. Title I of the bill addresses energy efficiency and includes many provisions related to S. 385/H.R. 1443. A comparison of the provisions identified several differences between S. 1460 and S. 385/H.R. 1443 that may be of interest to Congress.