UPDATED ACEEE ANALYSIS SHOWS SAVINGS OF $4,400 PER HOUSEHOLD BY 2030
FROM HOUSE CLIMATE CHANGE BILL
Energy Efficiency Provisions Will Create 770,000 Jobs by 2030
Washington, D.C.—The federal energy efficiency provisions included
in H.R. 2454, the American Clean Energy and Security Act (aka
Waxman-Markey), could save approximately $1,050 per household by 2020
and $4,400 per household by 2030, according to an updated analysis by
the American Council for an Energy-Efficient Economy (ACEEE). Changes
to ACEEE’s analysis come from an updated assessment of savings from a
number of provisions, as well as changes to the bill made in a Rules
Committee version of the bill released yesterday.
Changes to the efficiency provisions bill include the addition of
Smart Grid appliances in the Best-In-Class Appliance Deployment Program
and a new program operated by small rural electric cooperatives to
reduce customer bills and promote energy efficiency and renewable
energy. In addition, 10 percent of the SEED (State Energy and
Environmental Development) program is set aside for transportation
programs that reduce greenhouse gas emissions. The bill also changed
the distribution of R&D funds, 70 percent of which will go to
Advanced Energy Research and 30 percent of which will go to "Energy
Innovation Hubs" at universities.
The energy efficiency provisions in the bill will reduce the
transitional costs of capping carbon pollution. Savings from reduced
energy use will be reinvested locally, creating a multiplier effect
that will generate economic activity and jobs. ACEEE estimates that
approximately 305,000 jobs will be created by the energy efficiency
provisions in H.R. 2454 by 2020, with a total of 770,000 jobs generated
by 2030. Moreover, the transitional cost of cap-and-trade legislation
is reduced by investment in efficiency because fewer new energy
facilities are needed and fewer upgrades are needed in existing
facilities to help meet emissions ceilings—creating significant
additional consumer savings.
“This revised analysis directly underscores the important
contribution energy efficiency provisions make towards keeping the
costs of a cap-and-trade program to modest levels due to reduced energy
use and reduced need for expensive new power plants,” said Steven
Nadel, Executive Director of ACEEE. “The jobs created by the efficiency
provisions in the bill are also an important benefit," he continued.
In total, the energy efficiency provisions in H.R. 2454 could reduce
U.S. energy use by 5.4 quadrillion Btu's, which accounts for about 5
percent of projected U.S. energy use in 2020. This 5 percent savings in
2020 is about the same as what U.S. EPA estimated in a June 23
analysis. These energy efficiency savings are more than the annual
energy use of 47 of the 50 states, including New York State.
Furthermore, such savings will avoid about 345 million metric tons of
carbon dioxide emissions in 2020, the equivalent of taking 57 million
cars off the road for a year. By 2030, these energy efficiency savings
grow to 12.3 quadrillion Btu’s, accounting for about 12 percent of
projected U.S. energy use that year. ACEEE’s 2030 savings are larger
than EPA’s, in part because ACEEE’s efficiency analysis included
several provisions that EPA did not have time to model.
Details on ACEEE’s analysis of the House legislation can be found at: http://aceee.org/energy/national/index.htm.
