Energy Efficiency: Budget, Oil Conservation, and Electricity Conservation Issues

Publication Date: January 2006

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Energy

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Abstract:

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 in 2001 and the Iraq war have heightened concern for energy security and raised further concerns about the vulnerability of energy infrastructure and the need for alternative fuels. Further, the 2001 power shortages in California, the 2003 northeast-midwest power blackout, and continuing high natural gas and oil prices have renewed emphasis on energy efficiency and energy conservation to dampen oil, electricity, and natural gas demand.

Also, worldwide emphasis on environmental problems of air and water pollution and global climate change, the related development of clean energy technologies in western Europe and Japan, and technology competitiveness may remain important influences on energy efficiency policymaking.

The Energy and Water appropriations bill for FY2006 (P.L. 109-103, H.R. 2419) provides $1,185.7 million for the Department of Energy’s (DOE’s) Energy Efficiency and Renewable Energy Programs, $468.5 million of which funds five energy efficiency research and development programs (Hydrogen, Fuel Cells, Vehicles, Buildings, and Industries). This amount is $10.4 million (2.2%) less than was appropriated in FY2005. Further, funding committed to congressionally earmarked energy efficiency projects grew by $51.7 million to $85.7 million.

P.L. 109-102 (H.R. 3057) provides $100 million for clean (renewable) energy and energy efficiency programs in developing countries. P.L. 109-97 (H.R. 2744) provides $23 million for farm-based energy efficiency (and renewable energy) grants and loans. H.R. 2862 has telecommuting provisions for federal agencies, and P.L. 109-54 (H.R. 2361) provides $112.5 million for the Environmental Protection Agency’s (EPA’s) Climate Protection Programs.

P.L. 109-58 (H.R. 6) authorizes or reauthorizes several energy efficiency and conservation programs. It also establishes several new commercial and consumer product efficiency standards, sets new goals for energy efficiency in federal facilities and fleets, broadens the Energy Star products program, expands programs for hydrogen fuel cell buses, and extends daylight savings. However, it does not include Senate-proposed provisions for oil conservation or a broader range of legislated standards for equipment efficiency.

P.L. 109-59 (H.R. 3) contains several provisions for energy conservation and fuel savings, including sections 1121, 1307, 1807, 1808, 1952, 1954, 3005, 3016, 3045, 4149, 5301, 5502, 6001, and 9002. Sections 1301 and 1402 of the Deficit Reduction Act (S. 1932/H.R. 4241) would terminate certain energy efficiency (and renewable energy) programs at the Department of Agriculture (USDA).