Senate Climate Bill - Letter to Senator Clean (D0069992)

Chairwoman Barbara Boxer Committee on Environment and Public Works SD-456 Dirksen Senate Office Building Washington, DC 20510-2602

Ranking Member James Inhofe Committee on Environment and Public Works SD-456 Dirksen Senate Office Building Washington, DC 20510-2602

Dear Chairwoman Boxer and Ranking Member Inhofe:

We hope that as the Environment and Public Works Committee considers the Senate’s climate change

Bill, you will include provisions that ensure that a share of allowances go to states for the purpose of enhancing the federal Weatherization (WAP) program and the State Energy Program (SEP). The House- passed ACES fails to assure that any of the proceeds will be used for the well-tested program that reduces both energy costs and carbon emissions in low- and moderate-income homes. The bill also does not specifically allocate funds for the highly effective State Energy Program. The Senate Energy bill

(S 1462) reauthorizes both SEP and WAP beyond 2012.

Weatherizing one million homes a year, the goal set by the President for the years during which the nation is transitioning to the low-carbon economy, will save at least 32.4MMT of CO2 for each program year of investment. That figure is the equivalent of shutting down three of the nation’s highest-emission coal generating stations plus the Capitol Hill power plant for an entire year. The Senate’s bill should ensure that a share of the public resources allocated for efficiency are dedicated to state enhancements to the already- effective program devoted to the energy consumers who are least able to make the investments needed to reduce the greenhouse gas emissions from their homes, through the

Weatherization Assistance Program. SEP targets energy efficiency in all sectors of the economy with a proven track record of producing over

$7 in energy savings for each federal dollar spent and leveraging almost $11 in non-federal funds for each federal dollar.

Our organizations represent, respectively, the Governors’ Energy Offices (NASEO), the state

Weatherization Assistance Program managers (NASCSP), and the local Weatherization delivery agencies

(NCAF).

We support a new provision that would designate: 1) 5% of the funding in the State Energy and

Environment Development Accounts (SEED) for the states to use exclusively in conjunction with their federal WAP; and 2) 5% of the funding in SEED specifically for SEP. In addition, our proposed language amends the House-passed Residential Energy Efficiency Program (REEP) provision by waiving the requirement for matching funds for any REEP project that is an extension of the federal WAP.

Our proposal would change the sections of the House-passed ACES bill Section 132 provisions by adding:

Sec. 132(c) - insert new (4) and (5)

"(4) Not less than 5 percent of the allowances shall be used exclusively in conjunction with the state's

Weatherization Assistance Program authorized in part A of title IV of the Energy Conservation and

Production Act (42 U.S.C. 6861 et seq.);

(5) Not less than 5 percent of the allowances shall be used exclusively in the state’s State Energy

Program authorized in Part D of title III of the Energy Policy and Conservation Act (42 U.S.C. 6321 et seq.)".

Renumber Section 132(c)(4),as Section 132 (c) (6) and in Section 132(c) (6) delete "47.5" and insert in lieu thereof"37.5" and renumber subsequent subsections.

In the section on REEP , Sec. 202 (i) (2) (A) - insert new subsection as follows in order to eliminate the

Weatherization match requirement:

“(iv) the limitations described above shall not apply to funding spent under or by grantees of the

Weatherization Assistance Program under Part A of title IV of the Energy Conservation and Production

Act (42 U.S.C. 6861 et seq.)”

We also support a substantial expansion of the share of allowances allotted to the SEED; ten percent of allowances should be a permanent allocation to these least cost energy measures. The House bil reduces these percentages over time to less than 5%. They should be fixed at no less than ten percent, reflecting the significant contribution these measures make in reducing energy costs for all Americans.

We look forward to working with you on this proposal, and would welcome the opportunity to discuss it in depth. Please contact Meg Power (NCAF), Arley Johnson (NASCSP) or Jeff Genzer (NASEO) with any questions you may have.

Contact information: [email protected] 202 842 2092; [email protected] 202 628 4900; jcg@ dwgp.com 202 467 6370.

David Bradley Executive Director NCAF

Tim Warfield Executive Director NASCSP

David Terry Executive Director NASEO cc: Members of the Environment and Public Works Committee The Honorable Harry Reid The Honorable Mitch McConnell The Honorable Jeff Bingaman The Honorable Lisa Murkowski The Honorable Max Baucus The Honorable Charles Grassley