By Nicole Gaudiano • Free Press Washington Writer • April 1, 2009
WASHINGTON -- Rep. Peter Welch's push for energy efficiency received a boost Tuesday when leaders on a key House panel included his proposal in comprehensive climate change legislation.
The Vermont Democrat's bill to provide incentives for homeowners and business owners to reduce energy use is now part of the American Clean Energy and Security Act of 2009, designed to bring global warming emissions 83 percent below 2005 levels by 2050.
"Whatever part of the country you come from, efficiency works to your advantage," Welch said. "It's going to cut down on the bills homeowners and businesses pay. It creates local jobs."
The clean-energy bill, released in draft form Tuesday by the House Energy and Commerce Committee, would establish tradable pollution allowances for each ton of pollution emitted. The draft postpones resolving how the allowances would be allocated.
The legislation also would promote renewable energy by requiring retail electricity suppliers to use resources such as wind, biomass and geothermal options to meet 25 percent of energy needs by 2025.
"This legislation will create millions of clean-energy jobs, put America on the path to energy independence and cut global warming pollution," said Rep. Henry Waxman, chairman of the Energy and Commerce Committee.
He released the draft with Democratic Rep. Edward Markey of Massachusetts, chairman of the energy and environment subcommittee.
House Speaker Nancy Pelosi of California called the legislation "a strong starting point."
"We will continue to hear the best ideas about how to tackle the challenge from a broad range of stakeholders, with the intention of having legislation on the House floor this year," she said.
The bill is sure to meet Republican opposition.
Sen. James Inhofe of Oklahoma, top-ranking Republican on the Environment and Public Works Committee, referred to the legislation as a "climate tax bill."
"It appears that this legislation is yet another version of the same story: a job-killing tax increase on American consumers that jeopardizes America's energy security while doing nothing to address climate change," he said. "In short, it's all economic pain for no climate gain."
Welch's efficiency proposal builds on the idea of Efficiency Vermont, a nonprofit created by the Vermont Legislature and Public Service Board in 2000. It has helped Vermonters reduce annual energy costs more than $31 million in their businesses and homes, according to the organization's Web site.
At a cost of $10 billion over four years, Welch's proposal would fund up to half the cost of retrofitting homes and businesses, with the goal of increasing energy efficiency by at least 20 percent nationally.
Homeowners and businesses could qualify for direct cash incentives, interest rate subsidies and credit support based on the percentage increase in energy efficiency they achieve. For those who qualify, the legislation would provide:
$1,000 to $3,000 in financial incentives for homeowners achieving a 10 percent to 20 percent increase in efficiency, with an additional $150 for every additional percentage point of energy savings achieved.
Fifteen cents per square foot for businesses for the first 20 percent to 30 percent increase in efficiency, with an increasing incentive of up to $2.50 per square foot for energy reductions over 50 percent.
"What's practical about this is that you have the homeowner who's putting some of his or her own money into the operation," Welch said. "So this is a situation where the folks who are going to benefit have skin in the game. And they're not going to want to make an expenditure if they don't get some benefit."