WASHINGTON, DC -The Subcommittee on Energy and Power, chaired by Rep. Ed Whitfield (R-KY), today continued its work to build the Architecture of Abundance with a review of discussion drafts to modernize the nation’s Strategic Petroleum Reserve (SPR) and to improve energy efficiency. The legislative concepts discussed today will be included in the committee’s bipartisan comprehensive energy bill.
“Both SPR and energy efficiency are two topics on which we should be able to agree on the path forward," said Chairman Whitfield.
Changes in global energy markets and lessons learned from the Department of Energy’s 2014 Test Sale have spurred the committee to take action to modernize the SPR to ensure that our strategic stockpiles of petroleum are kept safely and readily accessible in times of national emergency. The committee’s Strategic Petroleum Reserve mission readiness plan requires the Secretary of Energy to conduct a long-range strategic review of the SPR and recommend an action plan to achieve optimal capacity, location, composition, storage, and distributional capabilities.
Members discussed the committee’s SPR proposal with DOE Assistant Secretary for Fossil Energy Chris Smith. Smith agreed that a long-range review of the SPR is needed and pointed to the recent findings in the administration’s Quadrennial Energy Review. “The QER underscores the need for an effective SPR modernization program that reflects current global oil markets, U.S. market conditions, the nature of energy security in an interconnected world, and addresses SPR distribution infrastructure and life extension of key SPR infrastructure components," said Smith.
Next, members heard testimony from a panel of stakeholders on Title IV: Energy Efficiency and Accountability. The committee’s broad proposal seeks to maximize the federal government’s energy and cost savings and encourage the private sector’s development and use of innovative energy efficient technologies. The legislation takes steps to expand the federal government’s use of energy savings performance contracts and improve the efficiency of government data centers and information technologies. Title IV also includes provisions to improve energy use information for consumers and ensures that federal efficiency standards are economically justified and technically feasible.
Title IV builds upon the committee’s bipartisan success in energy efficiency. Today, the president signed S. 535, the Energy Efficiency Improvement Act, which the committee worked to advance. “We view S.535 as a strong indicator that the comprehensive energy legislation you are creating will include meaningful efficiency policies," Kateri Callahan, President of the Alliance to Save Energy, told the subcommittee.
Mark Wagner, Vice President at Johnson Controls, Inc., testifying on behalf of the Federal Performance Contracting Coalition (FPCC), praised the committee’s work to increase the use of energy savings performance contracts. “This legislation will help ensure that federal agencies are utilizing to the fullest extent possible all cost-effective measures for energy conservation," said Wagner.
Rona Newmark, Vice President at EMC Corp, testified on behalf of the Information Technology Industry Council. She commended the committee’s voluntary approach to energy efficient technology in the legislation, stating, “The bill does not bring a regulatory approach to energy efficiency. Rather, it stresses voluntary partnership between the private sector and the federal government, and it encourages greater federal government leadership in leveraging information and communications technology (ICT) for energy efficiency and productivity. ITI scores the bill as providing significant savings for the U.S. taxpayer - through reduced federal government energy use and through greater productivity per watt expended."
Christopher Peel, Chief Operating Officer at Rheem Manufacturing Company, testifying on behalf of the Air-Conditioning, Heating, and Refrigeration Institute, thanked the committee for including voluntary verification programs in the legislation. “The establishment of voluntary independent verification programs conserves DOE resources, reduces taxpayer costs and provides clarity for manufacturers bringing products to the market," said Peel.
Frank Thompson, President of Sweetwater Builders, Inc., testifying on behalf of the National Association of Home Builders, applauded the committee’s efforts to improve the building codes development process in the bill. “By requiring DOE to publish any proposed energy savings targets, code changes calculations, and methodology in the Federal Register, this section will increase transparency and guarantee that the public is heard. It would also prohibit DOE from advocating on behalf of certain products and technologies. This will help ensure a fair process that doesn’t advantage some businesses over others," said Thompson.
John Somerhalder, CEO of AGL Resources, testifying on behalf of the American Gas Association, expressed support for the legislation in addressing DOE’s stringent natural gas furnaces standard. “We commend the inclusion of elements that will remove barriers to the use of clean, energy efficient, cost-effective natural gas," said Somerhalder.
“Though we may not agree on all the provisions discussed today, this hearing continues a very useful discussion that I hope will lead to bipartisan energy legislation," concluded full committee Chairman Fred Upton (R-MI).
