Senate Committee Considering Comprehensive Energy Bill that Includes Roundtable-Supported Measures

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A bipartisan, omnibus energy bill with provisions supported by The Real Estate Roundtable was prepared for debate in the Senate this week, as Republicans and Democrats negotiate a package of amendments that may be added to the base bill.  

  • The American Energy Innovation Act (S. 2657) – introduced on Feb. 27 by Senate Energy and Natural Resources Committee Chairman Lisa Murkowski (R-AK) and Ranking Member Joe Manchin (D-WV) [ above ] – is a compilation of more than 50 energy-related measures considered and individually reported last year.  (Bill Summary and text)
     
  • The AEIA focuses on energy efficiency, renewable energy, energy storage, carbon capture, grid modernization, and workforce development to build energy-related infrastructure.
     
  • The bill includes language supported by The Roundtable to improve the Commercial Building Energy Consumption Survey (CBECS) process. 
    • AEIA Section 1001 would require Congress to oversee coordination by federal agencies to gather and report higher quality CBECS data – the only nationwide government survey that estimates the number, location, age, energy consumption and other characteristics of the U.S. commercial real estate stock.
    • Significantly, CBECS data provides the underpinning for EPA’s ENERGY STAR scores – a key real estate performance “label” relied upon by building owners, investors, and tenants.
  • The Senate’s AEIA bill includes other sections of interest to real estate, including authorizations for:  
    • a “Federal Smart Building Program” to implement and demonstrate smart building technologies across the federal real estate stock; 
    • a nationwide survey of “Private Sector Smart Buildings” for study and evaluation by the U. S. Energy Secretary; 
    • codification of the U.S. Energy Department’s “Better Buildings Challenge” – a program that has attracted Roundtable members’ participation; and
    • a “CHP Technical Assistance Partnership” to provide project-specific engineering and economic assessments for combined heat and power systems.

     

  • Thus far, Senators have filed over 185 amendments for consideration as additions to the underlying bill.  Among them is one offered by Senators Rob Portman (R-OH) and Jeanne Shaheen (D-NH) to drive greater transparency and consideration of building owner costs in the process to develop model building energy codes.  (Roundtable Weekly, July 19, 2019).   The Roundtable has long-supported the Portman-Shaheen energy codes provisions, which Portman addressed this week on the Senate floor
  • ENR Chairman Murkowski said this week she was working on a “managers’ package” of certain, less controversial measures to be voted on in a block.  “I want to have a managers’ package, but it is entirely possible — we’ve seen it before — that that opportunity is spoiled,” she said.  (CQ, March 4) 

If Republicans and Democrats can agree upon the AEIA amendments eligible for a vote, the Senate will be poised to pass its first major piece of energy legislation in over 12 years, according to Murkowski’s press release.  The measure would then move to the House of Representatives, where the Democratic majority might append provisions that more aggressively address climate change.  (Roundtable Weekly, Feb. 7, 2020) 

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House Hearing Considers Roundtable-Supported Energy Efficiency Legislation

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In the lead-up to the November elections, Democrats continued to draw attention this week on Capitol Hill to energy and climate issues, as the House Energy Subcommittee heard testimony on a number of bills to advance efficiency in buildings and modernize the nation’s electric grid.  (Subcommittee hearing and memorandum, Feb 12.)

  • The Subcommittee’s review included the Energy Savings and Industrial Competitiveness (ESIC) Act (H.R. 3962), long supported by The Real Estate Roundtable.  The bipartisan bill is sponsored by Representatives Peter Welch (D-VT) and David McKinley (R- WV), and is the companion to a Senate version (S. 2137) championed by Senators Rob Portman (R-OH) and Jeanne Shaheen (D-NH).  The Senate measure passed its committee in Sept. [Roundtable Weekly, Sept. 27]
  • In The Roundtable’s Feb. 11 ESIC Act support letter to House leaders, President and CEO Jeffrey DeBoer noted that,  “[t]he U.S. real estate sector has made significant strides to improve the energy efficiency and reduce the carbon footprint of America’s building infrastructure over the last decade.”  He further described how H.R. 3962 would advance the industry’s energy efficiency efforts.  (Roundtable House ESIC Act letter, Feb. 11)
  • The ESIC Act would improve the current process to develop “model” building energy codes with new “open government” provisions. Real estate and other stakeholders would be provided a platform to comment on the federal government’s influential role in the codes process, compelling the U.S. Department of Energy (DOE) to consider cost effectiveness when the agency develops efficiency recommendations for new construction and major retrofits.  DOE would also be required to assess the small business impacts of its energy code recommendations.
  • The ESIC Act would further direct the U.S. Energy Information Administration (EIA) to coordinate with the Environmental Protection Agency’s ENERGY STAR program, when EIA periodically gathers significant nationwide data related to energy consumption in U.S. buildings.
  • In addition, the ESIC Act includes innovative provisions – known as the SAVE Act – to assist home buyers with financing energy efficiency improvements as part of the residential mortgage underwriting process.
  • Among the witnesses at the Wednesday House hearing was Lowell Ungar, senior policy advisor for the American Council for an Energy-Efficient Economy (ACEE), who  testified in support of H.R. 3962.  Mr. Ungar also spoke at the recent Sustainability Policy Advisory Committee (SPAC) meeting on January 29, regarding the estimated economic and environmental benefits of an accelerated depreciation tax strategy known as “E-QUIP” to motivate “retrofit” project installations of high performance HVAC, windows, lights, and other building equipment.  The Roundtable and coalition partners continue to work toward introduction of an E-QUIP bill in the coming months.  (E-QUIP Coalition Letter, May 8, 2019).
  • The ESIC Act’s building codes provisions – allowing for consideration of financial impacts on businesses and homeowners – contrasts to a recent climate framework released by Democratic leaders.

While the parties’ respective visions on energy and climate policy are coming into sharper focus in advance of next November’s elections, prospects for passing omnibus legislation that clears both the House and Senate this year are low.

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Senate Committee Advances Portman-Shaheen Energy Efficiency Bill

Senators Rob Portman (R-OH) and Jeanne Shaheen (D-NH)

The Senate Energy and Natural Resources (ENR) Committee passed a bill on Wednesday that emphasizes voluntary measures and incentives to drive energy efficiency improvements in U.S. buildings, manufacturing, and other economic sectors. 

  • The Energy Savings and Industrial Competitiveness (ESIC) Act (S. 2137)sponsored by Senators Rob Portman (R-OH), above left, and Jeanne Shaheen (D-NH), right, and long endorsed by The Real Estate Roundtable – was advanced by the panel, along with several other energy bills.
  • Senator Lisa Murkwoski (R-AK), chairman of the ENR Committee, noted during the hearing, “For several Congresses now, [S. 2137] has been the Senate’s flagship effort on energy efficiency.  I’m hopeful that we are going to be able to see this into law.”
  • The ESIC Act passed the committee by a substantial margin (14-6), although provisions regarding voluntary building energy codes failed to garner a majority of Republican votes.  Murkowski added that the codes sections still needed more work to gain fuller bipartisan support.  She was optimistic that the “prevailing concerns” of industry stakeholders could be resolved.  (Committee video, Sept. 25)
  • The ESIC Act would improve current laws by adding “open government” and transparency provisions that do not currently apply to the development of building energy codes.  Real estate and other stakeholders would be provided a platform to comment on DOE code proposals affecting the industry. The measure also includes a new requirement that would compel the U.S. Department of Energy (DOE) to consider costs and small business impacts as part of the codes development process.  (Roundtable support letter for S. 2137)
  • S. 2137 would also direct the two federal agencies that separately collect critical nationwide data on building energy use – namely, the Energy Information Administration and the Environmental Protection Agency – to coordinate on their respective programs and take steps to ensure higher quality, more consistent data.
  • The ESIC Act “is exactly the kind of smart, forward-looking policy that will help building owners respond to our modern, evolving economy” Roundtable President and CEO Jeffrey DeBoer stated in a Senate news release upon the bill’s introduction this summer.  (Roundtable Weekly, July 19) (Video of DeBoer’s statement)

Further negotiations to refine the ESIC Act are anticipated in the coming weeks before it might advance to the full Senate for a vote.  Companion legislation is pending in the House (H.R. 3962), sponsored by Peter Welch (D-VT) and David McKinley (R-WV).

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Portman-Shaheen Energy Efficiency Bill Considered In Senate Hearing

Senators Jeanne Shaheen (D-NH) and Rob Portman (R-OH)

The Senate’s Energy Subcommittee on Wednesday held a hearing that considered bipartisan legislation to help further advance energy efficiency in U.S. buildings without federal regulations – but through data-driven, voluntary measures.

  • The Senate panel assessed the Energy Savings and Industrial Competiveness (ESIC) Act (S. 2137) – co-sponsored by Senators Jeanne Shaheen (D-NH), above at left, and Rob Portman (R-OH), right,  –along with nine other energy policy bills at the subcommittee’s Wednesday hearing. The Roundtable is a strong supporter of the Portman-Shaheen bill.
  • Sen. Portman testified at the hearing, noting that the ESIC Act passed the Senate by an overwhelming margin in a prior session of Congress.  He remarked that the legislation contains no “heavy-handed mandates” and that its building code sections are “completely voluntary.”  He added that the measure would result in “greenhouse gas emissions reductions [that] are equivalent to taking about 11 million cars off the road.”  (Portman press release, Sept. 11.)
  • Sen. Shaheen’s testimony emphasized that “energy efficiency is the cheapest, fastest way to deal with our energy needs,” and that the bill would produce a policy trifecta to reduce emissions, protect the environment, and create jobs.  (Shaheen press release, Sept. 11.)
  • The Roundtable submitted a letter for the hearing’s record to reiterate its support for the bill.  Roundtable President and CEO Jeffrey D. DeBoer also spoke in support of the bill when it was announced at a press conference in July.  (Video of DeBoer’s statement on Portman-Shaheen)
  • The ESIC Act “is exactly the kind of smart, forward-looking policy that will help building owners respond to our modern, evolving economy” DeBoer stated in a Senate news release upon the bill’s introduction this summer.  “The needs of business tenants have changed dramatically since the turn of the century to power the data centers, IT, and communications systems upon which our workforce depends.  Building owners are meeting their tenants’ 24/7 energy demands while constructing and managing their assets more efficiently – and reducing their carbon footprints.” (Roundtable Weekly, July 19, 2019)  

Companion legislation to S. 2137 is pending in the House (H.R. 3962), sponsored by Peter Welch (D-VT) and David McKinley (R-WV).  As the next step in the Senate’s process, a mark-up of S. 2137 by the full Senate Energy Committee is expected this fall.

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