March 8, 2010

Democrats will turn the focus to energy efficiency standards and incentive programs this week with hearings in the Senate and House energy panels.

Rep. Ed Markey, chairman of the House Energy and the Environment Subcommittee, has been a major advocate of "clean energy" jobs and made several speeches last week touting the potential for jobs in the energy efficiency and renewable energy sector.

Markey in particular has been interested in the potential for digital "smart grid" technology that could provide energy efficiency to homes and the electricity grid. A massive rebate program like Home Star that would replace millions of older appliances could help accelerate the installation of new energy-efficient appliances with wireless communication capabilities.The technology would enable the appliance to communicate with a "smart meter" or network that could make sure appliances run during low electricity demand periods or even briefly cut unnecessary power use during peak demand times.

This ability could add to the millions of tons of greenhouse gas emission reductions already expected from the more energy efficient products by reducing the need to build new power plants or to use "peak" natural gas plants.The price tag may raise some eyebrows, especially for Murkowski and other Republican lawmakers. Murkowski last week advised caution about adding new energy programs in jobs bills.

The other two bills under consideration at the Senate hearing could encounter similar protests. S. 1320 (pdf), introduced by Sen. Jon Tester (D-Mont.), would provide up to $7,500 in rebates for an Energy Star-qualified manufactured home for a low-income household.

Legislation for "Building Star," introduced last week by Sens. Jeff Merkley (D-Ore.) and Mark Pryor (D-Ark.), would offer rebates for up to 30 percent of the cost of upgrades to energy-related equipment including energy audits, lighting, energy management and insulation for commercial buildings.

The program could create as many as 150,000 jobs in the next two years, save building owners more than $3 billion on their energy bills and cut greenhouse gas emissions the equivalent of almost 4 million cars, Merkley's office said in a statement.

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