House Energy Committee Discusses Energy Efficiency and Storage Bills

The House Energy and Commerce Committee reviewed a series of bills on energy efficiency and energy storage in a Subcommittee on Energy hearing held on February 12. The hearing, Saving Energy: Legislation to Improve Energy Efficiency and Storage, consisted of two panels and evaluated numerous bills, including the Storage Technology for Operational Readiness and Generating Energy Act (S.T.O.R.A.G.E Act, H.R.1744), Promoting Grid Storage Act of 2019 (H.R. 2909), Energy Savings and Industrial Competitiveness Act of 2019 (H.R. 3962), Expanding Access to Sustainable Energy Act of 2019 (H.R. 4447), Federal Energy and Water Management Performance Act of 2020 (H.R. 5650), and the Ceiling Fan Improvement Act of 2020 (H.R. 5758). Full Committee Chair Frank Pallone (D-NJ) emphasized that these bills are part of the committee’s broader “work to combat the climate crisis by improving energy efficiency and investing in battery storage infrastructure.”

Subcommittee Chair Bobby Rush (D-Ill.) opened the hearing by reviewing the main goals of the Committee and Subcommittee regarding the current energy system, which include boosting energy savings, making sure energy supply always meets energy demand, reducing air pollution, and creating jobs.

For the first panel, Under Secretary of Energy for the U.S. Department of Energy (DOE) Mark Menezes testified on behalf of the Administration, while the second panel consisted of industry professionals from a variety of organizations that deal with energy efficiency and storage.

Panel I: Department of Energy Perspective

Subcommittee members emphasized the need for better energy storage technology with more capacity. In his opening statement, Energy and Commerce Chair Pallone noted that energy storage helps energy supply meet energy demand, and eliminates “the need for [energy] generation” during peak periods. This is because energy can be generated and stored during off-peak times and then sold to the grid by distributors during peak demand times (See EESI’s fact sheet, Energy Storage). Expanding energy storage technology would also lower utility bills for consumers, reduce transmission congestion, remove voltage variation in supply, and provide backup power in the event that portions of the grid fail. Many subcommittee members also expressed the need to strengthen grid cybersecurity and resilience along with any updates to grid technology.

Under Secretary Menezes promoted the DOE’s recent launch of the Energy Storage Grand Challenge, the Battery Recycling Prize program, as well as research conducted by the Pacific Northwest National Laboratory on battery material and cybersecurity. Menezes recognized the importance of batteries for energy storage but made it clear the DOE wants to explore all options.

According to Menezes, these initiatives demonstrate the DOE’s goal to shift its role from applied research to basic R&D, which the Under Secretary made clear throughout the hearing. Despite this sentiment, many subcommittee members questioned the Administration's proposed budget cuts for the Advanced Research Projects Agency-Energy (ARPA-E), a major component of the department’s R&D efforts. Chair Pallone expressed additional dissatisfaction, commenting on how the President’s FY2021 budget proposal “cuts clean energy research” and “guts funding for the Office of Energy Efficiency and Renewable Energy by an appalling 75 percent.”

Menezes also testified that Energy Star is good for consumers and shows a cohesive national commitment to energy efficiency. Despite his praise for Energy Star, funding for the program was excluded in the President's 2021 budget proposal. Rep. Robert Latta (R-OH) expressed his confidence in the Energy Star program. Rep. Mike Doyle (D-PA) added that energy efficiency reduces the need for additional infrastructure and lowers energy bills.

Panel II: Industry Perspectives

Panel II speakers consisted of Kelly Speakes-Backman, CEO of the Energy Storage Association, Bryan Howard from the U.S. Green Building Council, Julie Hiromoto on behalf of the American Institute of Architects, Lowell Ungar from the American Council for an Energy-Efficient Economy, Arn McIntyre on behalf of the National Association of Home Builders, and Jennifer Schafer from the Federal Performance Contracting Coalition.

All speakers acknowledged the need for more energy storage research and capacity as well as increased energy efficiency. They said that most of the bills in question included provisions that would help achieve those goals.

During their review of H.R. 3962, sponsored by Reps. Peter Welch (D-VT) and David McKinley (R-WV), both McIntyre and Ungar noted their support for Section 424, commonly referred to as the SAVE (Sensible Accounting to Value Energy) Act. McIntyre highlighted the SAVE Act’s incentive for consumers to buy homes that are energy efficient and that the bill ensures more accurate mortgage underwriting. Ungar said that the SAVE Act could help homeowners make more frequent mortgage payments by helping them save money on energy bills.

In contrast, there were different views about the building energy code provisions of H.R. 3962. The National Association of Home Builders has consistently argued against energy codes code and portions of McIntyre’s testimony echoed these sentiments. ACEEE's Lowell Ungar countered that building codes are one of the best ways to make housing more affordable by reducing monthly utility bills. Unger noted in his testimony that the code provisions in the Welch-McKinley bill would- “yield a large majority of...total savings [from the bill]...saving consumers over $40 billion.” Energy-efficiency building codes make homes safer and more comfortable than less efficient homes and are the most effective way this bill can reduce greenhouse gas emissions from commercial and residential building emissions.

Hiromoto was the only panelist to mention that provisions in the Welch-McKinley bill could help combat climate change. According to her testimony, “the building sector alone accounts for almost 40 percent of greenhouse gas emissions,” thus, reducing emissions from this sector is crucial to combat the effects of climate change. 

Energy and Climate

Energy efficiency and energy storage technology are critical to addressing climate change, increasing resilience, and increasing social equity by helping consumers save money on their energy bills. The growing bipartisan effort to achieve these goals is apparent through this hearing and other legislative action, such as the February introduction of the American Energy Innovation Act (S. 2657) by Sen. Lisa Murkowski (R-AK) and Sen. Joe Manchin (D-W.Va.).

 

Author: Uma Atre