A Bill to Track – Energy Efficiency Legislation

The likelihood of carbon legislation with the 113^th U.S. Congress will require a bipartisan effort that has minimal chance of materializing at this point.  However, energy efficiency does enjoy bipartisan support and will likely prove to be the most successful approach to regulating carbon emissions, albeit in an indirect fashion.  Currently there are energy efficiency bills in both the Senate and the House of Representatives.  The Senate Bill 1392, which was introduced in July, is called the “Energy Savings and Industrial Competitiveness Act of 2013”.  It is being sponsored by Senator Jeanne Shaheen, Democrat from New Hampshire and has 18 co-sponsors including nine Republicans, eight Democrats, and one Independent.  Senate Bill 1392 is related to Senate Bill 761 and House Bill 1616, both energy efficiency bills which were introduced in early Spring 2013.  The National Association of Manufacturers has endorsed the Senate Bill 1392.

The Senate Bill 1392 offers ALL4 clients a couple of opportunities to benefit in the investment for energy efficiency.  In addition, the Bill includes provisions to increase the rate at which government developed technologies and practices are shared and utilized to increase the energy efficiency and efficiency of the manufacturing process.  Specifically, the Bill proposes to coordinate Department of Energy (DOE) technology improvements with the needs of industry and manufacturing.  By coordinating the emerging technologies being developed, greenhouse gas (GHG) emissions will be reduced and small and medium manufacturing sectors will benefit.  The Bill also includes a proposal to provide economic incentives for advanced motor and drive systems.  The Bill would authorize a rebated fund of $5,000,000 in 2014 and again in 2015 for industry to install more efficient motors and drive systems.  Similarly, upgrading transformers would also qualify for a separate rebate, with this program also being funded for $5,000,000 per year 2014 and 2015.  Finally, the Bill would authorize additional spending for the Energy Independence and Security Act of 2007 to the amounts of $200,000,000 for 2013/2014; $150,000,000 for 2015; and $100,000,000 for fiscal years 2016 through 2018.

Senate Bill 1392 seems to be a reasonable approach for improving manufacturing efficiency with the end result of reducing the amount of pollutants generated and the amount of GHG emitted.  Companies should remain aware of the Bill’s status and if it becomes law, be prepared to take advantage of the rebate program or emerging technologies developed by the DOE.