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Energy Efficiency and Alternative Fuel Vehicles Hearing Committee on Energy and Natural Resources United States Senate

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Energy Efficiency and Alternative Fuel Vehicles Hearing Committee on Energy and Natural Resources United States Senate S. HRG. 112–273 ENERGY EFFICIENCY AND ALTERNATIVE FUEL VEHICLES HEARING BEFORE THE COMMITTEE ON ENERGY AND NATURAL RESOURCES UNITED STATES SENATE ONE HUNDRED TWELFTH CONGRESS FIRST SESSION ON S. 963 S. 1000 S. 1001 JUNE 9, 2011 ( Printed for the use of the Committee on Energy and Natural Resources U.S. GOVERNMENT PRINTING OFFICE 72–950 PDF WASHINGTON : 2012 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–0001 COMMITTEE ON ENERGY AND NATURAL RESOURCES JEFF BINGAMAN, New Mexico, Chairman RON WYDEN, Oregon LISA MURKOWSKI, Alaska TIM JOHNSON, South Dakota JOHN BARRASSO, Wyoming MARY L. LANDRIEU, Louisiana JAMES E. RISCH, Idaho MARIA CANTWELL, Washington MIKE LEE, Utah BERNARD SANDERS, Vermont RAND PAUL, Kentucky DEBBIE STABENOW, Michigan DANIEL COATS, Indiana MARK UDALL, Colorado ROB PORTMAN, Ohio JEANNE SHAHEEN, New Hampshire JOHN HOEVEN, North Dakota AL FRANKEN, Minnesota DEAN HELLER, Nevada JOE MANCHIN, III, West Virginia BOB CORKER, Tennessee CHRISTOPHER A. COONS, Delaware ROBERT M. SIMON, Staff Director SAM E. FOWLER, Chief Counsel MCKIE CAMPBELL, Republican Staff Director KAREN K. BILLUPS, Republican Chief Counsel (II) C O N T E N T S STATEMENTS Page Bingaman, Hon. Jeff, U.S. Senator From New Mexico ........................................ 1 Book, Mr. Kevin, Managing Director, Research, Clearview Energy Partners, LLC ........................................................................................................................ 64 Callahan, Ms. Kateri, President, Alliance to Save Energy .................................. 7 Coons, Hon. Christopher A., U.S. Senator From Delaware ................................. 39 Crasi, Tony, President, the Crasi Company, Inc., Cuyahoga Falls, OH ............. 18 Damiano, Philip, Chief Operating Officer, Velcro USA, Manchester, NH .......... 28 Hogan, Kathleen, Deputy Assistant Secretary for Energy Efficiency, Office of Energy Efficiency and Renewable Energy, Department of Energy ............. 2 Karr, Shane, Vice President, Federal Government Affairs, Alliance of Auto- mobile Manufacturers .......................................................................................... 54 Murkowski, Hon. Lisa, U.S. Senator From Alaska ............................................... 35 Portman, Hon. Rob, U.S. Senator From Ohio ....................................................... 38 Rusco, Frank, Director, Natural Resources and Environment, Government Accountability Office ............................................................................................ 57 Scripter, Jay, Vice President, Sustainability, Owens-Illinois, Perrysburg, OH . 32 Shaheen, Hon. Jeanne, U.S. Senator From New Hampshire .............................. 36 Silver, Jonathan, Executive Director, Loan Program Office, Department of Energy ................................................................................................................... 72 APPENDIXES APPENDIX I Responses to additional questions .......................................................................... 89 APPENDIX II Additional material submitted for the record ........................................................ 113 (III) ENERGY EFFICIENCY AND ALTERNATIVE FUEL VEHICLES THURSDAY, JUNE 9, 2011 U.S. SENATE, COMMITTEE ON ENERGY AND NATURAL RESOURCES, Washington, DC. The committee met, pursuant to notice, at 9:34 a.m. in room SD– 366, Dirksen Senate Office Building, Hon. Jeff Bingaman, chair- man, presiding. OPENING STATEMENT OF HON. JEFF BINGAMAN, U.S. SENATOR FROM NEW MEXICO The CHAIRMAN. We’ll go ahead and get started. Senator Mur- kowski is on her way, but asked us to proceed. Our hearing today will relate to 3 bills. The bills are the Reduc- ing Federal Energy Dollars Act of 2011, that’s introduced by Sen- ator Carper, S. 963; the Energy Savings and Industrial Competi- tiveness Act of 2011, introduced by Senator Shaheen and Senator Portman, this is S. 1000; and the Alternative Fuel Vehicles Com- petitiveness and Energy Security Act of 2011, S. 1001, introduced by Senator Wyden. S. 963 focuses on improving energy efficiency within the Federal Government. S. 1000 is a multi-title efficiency bill, includes strengthening building codes, energy efficiency financing options for buildings and for manufacturers, as well as business-oriented energy initiatives from the 111th Congress, such as the Supply Star program. S. 1001 consists of several proposals to help address some of the challenges with bringing alternative fuel vehicles to the wider mar- ket. We’ve worked aspects of this problem in the past. I hope the testimony today will help guide us as we work to integrate these bills into a complete policy. One point I’d like to raise early on is that I do have concerns about the proposal to sell oil from the Strategic Petroleum Reserve to fund other projects, even when those are worthwhile projects. So, that’s a subject we’ll undoubtedly get a chance to debate and dis- cuss. We look forward to hearing the testimony. Why don’t we go ahead. We have 2 panels today, and let me introduce the first panel, and we will hear from them, and then have questions for them. Then we will move to the second panel after that. (1) 2 On the first panel, Ms. Kathleen Hogan, who is the deputy as- sistant secretary in the Office of Energy Efficiency and Renewable Energy in the Department of Energy. Thank you for being here again today. We appreciate it—you are a regular and welcome testifier to our committee. Kateri Callahan is the President of the Alliance to Save Energy. Thank you very much for being here. Mr. Tony Crasi is the President of Crasi, the Crasi Company in Cuyahoga Falls, Ohio. Thank you for being here. Did I foul-up your name? Was it OK? Mr. CRASI. No, the name’s good. The CHAIRMAN. OK. I mispronounced the town. [Laughter.] The CHAIRMAN. Tell me the right pronunciation. Mr. CRASI. Cuyahoga Falls. The CHAIRMAN. Cuyahoga. It’s not spelled Cuyahoga though. [Laughter.] The CHAIRMAN. OK. All right. Mr. Damiano, Philip Damiano is the Chief Operating Officer with Velcro USA in Manchester, New Hampshire. Thank you very much for being here. Mr. Jay Scripter is Vice President for Sustainability with Owens- Illinois in Perrysburg, Ohio. Thank you very much for being here. So, why don’t we start and have each of you take about 5 min- utes and give us your views on these bills, or whatever else you think we need to understand, and we will include your entire state- ment in the record as if read. Dr. Hogan, why don’t you go ahead? STATEMENT OF KATHLEEN HOGAN, DEPUTY ASSISTANT SEC- RETARY FOR ENERGY EFFICIENCY, OFFICE OF ENERGY EF- FICIENCY AND RENEWABLE ENERGY, DEPARTMENT OF EN- ERGY Ms. HOGAN. OK. Good morning, Chairman Bingaman, Ranking Member Murkowski, and members of the committee. Thank you for the opportunity to discuss the Department of Energy’s energy effi- ciency and advanced vehicle program. The administration is still reviewing the draft legislation for this hearing, and does not have a position at this time, so my statement will really provide you with information on the DOE programs and opportunities to spur investment in efficiency and advanced vehi- cles. As we know, energy efficiency is the fruit already on the ground—a fast, low-risk, economical way to address climate change and energy security concerns, build domestic jobs that cannot be exported, and help businesses and homeowners save money. We also know we need to aggressively pursue advanced clean energy technologies and advanced manufacturing to meet these objectives and enhance U.S. global competitiveness. Ensuring the Federal Government leads in clean energy is im- portant to this effort. Due to its sheer size, the Federal Govern- ment offers taxpayers significant savings in energy bills through greater efficiency, as well as a test bed for advanced technologies. 3 The Federal Government has made substantial progress against sustainability goals mandated in EPAct 2005, EISA 2007, and the Executive Order 13514 as signed by President Obama in October 2009. For example, the Federal Government has reported meeting its 15 percent statutory goal for improving facility energy intensity, and surpassing its 5 percent goal for renewable electric energy pro- duction. So, we continue to work toward a 30 percent intensity goal by 2015, and a 7.5 percent renewable energy goal by 2013, as well as other goals. To meet these goals, energy service performance contracts will be highly critical, even given the very good year we had in fiscal year 2010, with contracts totaling more than $560 million. In addition, allowing non-electric renewable energy, thermal en- ergy, to count toward the renewable goal would let the Federal Government count some of the most cost-effective means to dis- place fossil energy as they make progress. Building codes also provide energy bill savings. Taxpayers lock- ing in the best in cost-effective energy efficiency at the time of building construction lowers the overall cost of home or building ownership. Critical to effective building codes is sound analysis of code proposals, timely adoption practices, effective training and compliance. DOE is working in each of these areas, including with a number of states and other jurisdictions, developing model train- ing and compliance programs to improve overall savings from codes. Energy-conserving appliance standards are another important step the administration
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