Efficiency standards set by Northeast states impact Energy Policy Act of 2005
Signed into law in August, the Energy Policy Act of 2005 is the first major piece of federal energy legislation to be enacted since 1992. The Act contains 18 titles dealing with issues including renewable energy, oil and gas, nuclear power, ethanol and motor fuels, and research and development and tax incentives. Of the several sections addressing energy efficiency, there are over 50 pages covering efficiency standards for 16 products.*
The energy efficiency standards included in the Act will reduce electricity consumption in Northeast states by 9,500 gigawatt-hours by 2020, which is equivalent to the electricity use of 1.5 million households. Peak electricity demand will be reduced by 2,500 megawatts (8 mid sized power plants) and natural gas consumption will go down by 18,000 billion BTUs (quarter million households). These savings will translate into economic benefits of over 11 billion dollars.
Over the past three years, several states including Maryland, Connecticut, New Jersey, Rhode Island and New York have enacted efficiency standards. Organizations like the State Public Interest Research Groups (PIRGs), Environment-Northeast, and the Natural Resources Defense Council (NRDC) lobbied individual state legislatures very successfully. NEEP and the Appliance Standards Awareness Project and NEEP provided technical support and guidance to states to help ensure successful passage of these laws. By setting an example and leading the way toward energy savings, the efforts across the Northeast were instrumental in securing a place for standards in the federal energy bill.
As the project made progress across the region, trade associations opposed to state efficiency standards realized they would be facing standards in several states. As a result, they began negotiating with energy efficiency advocates, in many cases reaching consensus standards acceptable to both sides. Agreements were reached on commercial refrigerators and freezers, commercial air conditioners, dehumidifiers, commercial clothes washers, and automatic ice makers. These agreements with trade associations helped expand the number of standards in the federal energy bill, as legislators had insisted only standards agreed to by all sides would be included in the legislation. Nine additional standards were added this year, several as a result of trade association agreements.
Despite the many new federal efficiency standards, significant opportunities remain for states to act. The federal bill did not cover all of the efficiency standards that are included in the state bills, such as those for metal halide lamp fixtures, incandescent reflector lamps and medium voltage dry-type transformers. In addition, the federal bill did not set a standard for external power supplies, but rather instructed the Department of Energy to determine the standards. If the Northeast states enact the efficiency standards that have not been preempted by the federal energy bill, the region would realize an additional reduction of 6,000 gigawatt-hours.
More importantly, during a time when natural gas and heating oil prices are rising, states can also address home heating issues by setting standards on residential furnaces and boilers. These standards would reduce natural gas consumption by an additional 20,000 billion BTUs and heating oil use by 5,000 billion BTUs. These additional savings would mean another $7.5 billion in economic benefits, reduce annual carbon emissions 1.5 million metric tons, and lower peak electricity demand by 800 megawatts.
Work continues in the states to take advantage of these additional savings. For example, the Massachusetts House of Representatives has passed a standards bill, which is now being actively considered in the Senate. Massachusetts would become the sixth Northeast state to adopt standards legislation and the first state to set standards on residential furnaces and boilers.
For more information about The Northeast Energy Efficiency Standards Project, please contact Isaac Elnecave, Standards Project Manager at 781-860-9177, ext. 23 or ielnecave@neep.org .
* The Energy Policy Act of 2005 includes standards on automatic commercial ice makers, ceiling fans and their light kits, commercial clothes washers, commercial pre-rinse spray valves, commercial refrigerators and freezers, high intensity lamp ballasts, exit signs, large packaged air conditioners, low-voltage dry type transformers, torchiere lamps, traffic signals (both pedestrian and vehicular), dehumidifiers and unit heaters.
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