[Senate Report 111-332]
[From the U.S. Government Publishing Office]
Calendar No. 618
111th Congress Report
2d Session SENATE 111-332
=======================================================================
10 MILLION SOLAR ROOFS ACT
_______
September 27, 2010.--Ordered to be printed
_______
Mr. Bingaman, from the Committee on Energy and Natural Resources,
submitted the following
R E P O R T
[To accompany S. 3460]
The Committee on Energy and Natural Resources, to which was
referred the bill (S. 3460) to require the Secretary of Energy
to provide funds to States for rebates, loans, and other
incentives to eligible individuals or entities for the purchase
and installation of solar energy systems for properties located
in the United States, and for other purposes, having considered
the same, reports favorably thereon with an amendment and an
amendment to the title and recommends that the bill, as
amended, do pass.
The amendments are as follows:
1. Strike out all after the enacting clause and insert in
lieu thereof the following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``10 Million Solar Roofs Act of
2010''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Eligible participant.--The term ``eligible participant''
means--
(A) an owner of a home;
(B) a business entity;
(C) a local educational agency; and
(D) any other individual or entity that the Secretary
determines to be appropriate.
(2) Indian tribe.--The term ``Indian tribe'' has the meaning
given the term in section 4 of the Indian Self-Determination
and Education Assistance Act (25 U.S.C. 450b).
(3) Installed nameplate capacity.--The term ``installed
nameplate capacity'' means the maximum output of a solar
electric system under specific conditions designated by the
manufacturer of the solar electric system.
(4) Local educational agency.--The term ``local educational
agency'' has the meaning given the term in section 9101 of the
Elementary and Secondary Education Act of 1965 (20 U.S.C.
7801).
(5) Secretary.--The term ``Secretary'' means the Secretary of
Energy.
(6) Solar energy system.--The term ``solar energy system''
means rooftop or ground-mounted solar equipment--
(A) that is used to generate electricity or heat
water; and
(B) with an installed nameplate capacity not
exceeding 1 megawatt or the thermal equivalent of 1
megawatt.
SEC. 3. REBATES, LOANS, AND OTHER INCENTIVES FOR PURCHASE AND
INSTALLATION OF SOLAR ENERGY SYSTEMS.
(a) In General.--As soon as practicable after the date of enactment
of this Act, the Secretary shall establish a program under which the
Secretary shall provide competitive grants to States, Indian tribes,
and local governments to provide rebates, loans, or other incentives to
eligible participants for the purchase and installation of solar energy
systems for properties located in the United States.
(b) Implementation.--
(1) Competitive grants.--
(A) In general.--For each fiscal year, the Secretary
shall provide competitive grants to States, Indian
tribes, and local governments to be used in accordance
with this section.
(B) Requirements.--The Secretary shall adopt and
implement criteria for awarding competitive grants
under subparagraph (A) to States, Indian tribes, and
local governments that would--
(i) provide the maximum leverage of Federal
funds;
(ii) provide for the maximum deployment of
solar energy;
(iii) ensure that grants are awarded to a
diversity of geographic locations and
recipients with different population sizes;
(iv) provide not less than 2 percent of the
funds available to Indian tribes and consortia
of Indian tribes; and
(v) provide a preference for grant recipients
that have established and maintained, or agree
to commit to establish and maintain, standards
and policies to overcome barriers to
distributed generation (including
interconnection and net metering) in a manner
consistent with the legal authorities of the
grant recipient.
(2) Authorized use of funds.--Subject to subsection (c),
competitive grants provided under this section may be used to
expand an existing, or establish and fund a new--
(A) solar rebate program;
(B) solar loan program;
(C) solar performance-based incentive program; or
(D) solar incentive program, solar deployment program
or project, or innovative solar financing program not
described in subparagraphs (A) through (C), as
determined by the Secretary.
(3) Program requirements.--For each fiscal year during which
a grant recipient uses funds provided under this section, the
grant recipient shall--
(A) certify to the Secretary that the funds will be
used--
(i) to supplement, expand, or create new
programs or projects and will not supplant
existing programs as to maximize program
participation; and
(ii) to deploy an increased quantity of solar
energy systems; and
(B) submit to the Secretary an implementation plan
that contains--
(i) projections for solar energy systems
deployment;
(ii) data regarding the number of eligible
participants that are assisted under existing
applicable State and local programs; and
(iii) projections for--
(I) additional solar energy system
deployment; and
(II) the number of additional
eligible participants who will be
covered by the annual implementation
plan.
(c) Solar Energy System.--With respect to grant awards in any
fiscal year under this section, the Secretary may specify the type and
capacity of the solar energy system and type of deployment or incentive
program for which the grant funds are made available.
(d) Non-Federal Share.--Each eligible entity that receives funds
under this section shall be responsible for an amount equal to 20
percent of the amount of the provided funds.
(e) Administrative Expenses.--
(1) In general.--Not more than 5 percent of the amounts made
available for each fiscal year under this section may be used
to pay the administrative expenses of the Department of Energy
that the Secretary determines to be necessary to carry out this
Act (including expenses arising from monitoring and
evaluation).
(2) ELigible entities; other grant recipients.--Grant
recipients may use amounts made available for each fiscal year
under this section to pay for administrative expenses in
accordance with section 545(b)(3)(A) of the Energy Independence
and Security Act of 2007 (42 U.S.C. 17155(b)(3)(A)).
(f) Relationship to Other Law.--An eligible participant that
receives a rebate under this section shall not be eligible for a rebate
under section 206(c) of the Energy Policy Act of 2005 (42 U.S.C.
15853).
(g) Coordination; Consultation.--To the maximum extent practicable,
the Secretary shall consult with the Secretary of the Treasury and the
Chief Executive of each grant recipient that receives funds under this
section to ensure that each program carried out by each grant recipient
through the use of the funds is coordinated with each other applicable
incentive or financing program of the Federal Government or any other
applicable program.
(h) Maximum Incentive.--
(1) In general.--With respect to each rebate, grant, and tax
credit provided to an eligible participant under this section,
the aggregate value of the grants, rebates, and tax credits may
not exceed 50 percent of the cost to the purchaser of the
purchase and installation of the solar energy system.
(2) Effect.--Nothing in this subsection affects any solar
loan or financing program under this section or any other law
(including regulations).
(i) Goal.--It is the goal of the United States, through this Act
and any appropriate incentive or research and development program, to
install distributed solar energy systems on not less than 10,000,000
properties located in the United States by December 31, 2021.
(j) Report Regarding Additional Recommendations.--Not later than
270 days after the date of enactment of this Act, the Secretary shall
submit to the Committee on Energy and Natural Resources of the Senate
and the Committee on Energy and Commerce of the House of
Representatives a report that contains additional recommendations that
the Secretary determines to be necessary to achieve the goal described
in subsection (i), including any modification to the program
established under subsection (a).
(k) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary to carry out this section--
(1) for fiscal year 2012, $250,000,000; and
(2) for each of fiscal years 2013 through 2021, such sums as
are necessary.
Amend the title so as to read: ``A bill to require the
Secretary of Energy to provide competitive grants to States,
Indian tribes, and local governments for rebates, loans, and
other incentives to eligible individuals or entities for the
purchase and installation of solar energy systems for
properties located in the United States, and for other
purposes.''.
PURPOSE
The purpose of S. 3460 is to require the Secretary of
Energy to provide funds to States, Indian tribes, and local
governments to provide rebates, loans, and other incentives to
eligible participants for the purchase and installation of
solar energy systems for properties located in the United
States.
BACKGROUND AND NEED
Despite the various state and federal financial incentives
available to homeowners, such as the 30 percent federal tax
credit in place through 2016, financing the cost of a
residential photovoltaic (PV) and solar hot water heating
systems remains challenging. Like other renewable energy
technologies, the cost structure of solar energy systems is
front-loaded with a high initial investment, followed by modest
maintenance expenses, and essentially zero fuel costs. While
the tax credit provides a significant consumer incentive by
reducing the overall system price, it does not fully address
the key barrier to adoption--high upfront capital cost.
Proponents of the bill believe that if the proper incentives
and structures can be put into place, the opportunity for
residential PV and solar hot water heating is significant.
According to Navigant Consulting, the nation's residential and
commercial rooftop space could accommodate up to 710,000
megawatts of solar electric power. For comparison, total
electricity-generating capacity in the U.S. today is about
950,000 megawatts.
LEGISLATIVE HISTORY
S. 3460 was introduced by Senator Sanders on June 7, 2010,
and is cosponsored by Senators Specter, Cardin, Whitehouse,
Kaufman, Gillibrand, Stabenow, Leahy, Boxer, Casey, Harkin,
Lautenberg, Menendez, Merkley, Kerry, Cantwell, and Shaheen.
The Subcommittee on Energy held a hearing on S. 3460 on June
15, 2010. At its July 21, 2010, business meeting the Committee
on Energy and Natural Resources considered the bill, agreed to
an amendment in the nature of a substitute, and an amendment to
the long title, and agreed to the bill, as amended, on July 21,
2010, but lacked a sufficient quorum to report the bill. At its
business meeting on August 5, 2010, the Committee ordered S.
3460 to be favorably reported, as previously amended.
COMMITTEE RECOMMENDATION
The Committee on Energy and Natural Resources, in open
business session on August 5, 2010, by a unanimous voice vote
of a quorum present, recommends that the Senate pass S. 3460,
if amended as described herein.
COMMITTEE AMENDMENTS
During its consideration of S. 3460, the Committee adopted
an amendment in the nature of a substitute, as described in the
section-by-section analysis, and an amendment to the title.
Significant changes from the original bill language include
directing the Secretary to establish a competitive grant
program to award funds to States, Indian tribes, and local
governments instead of using the State Energy Program formula
to award funding to States only. The amendment also adds the
additional requirement that the Secretary design criteria for
awarding competitive grants that: provide for the maximum
leverage of federal funds as well as the maximum deployment of
solar energy; ensure geographic and population diversity;
provide at least 2 percent of the available funds to Indian
tribes; and provide a preference for grant recipients that have
established and maintained or agree to establish and maintain,
standards and policies to overcome barriers to distributed
generation in a manner consistent with the legal authorities of
the grant recipient. Lastly, the amendment requires that with
respect to each rebate, grant, and tax credit provided to an
eligible participant under the program established by this Act,
the aggregate value of the funding may not exceed 50 percent of
the cost to the purchaser of the purchase and installation of
the solar energy system.
SECTION-BY-SECTION ANALYSIS
Section 1 sets forth the short title.
Section 2 defines key terms used in the bill.
Section 3(a) directs the Secretary to establish a program
to provide competitive grants to States, Indian tribes, and
local governments to provide rebates, loans, or other
incentives to eligible participants for the purchase and
installation of solar energy systems for properties located in
the United States.
Subsection (b) directs the implementation of the program
described in subsection (a). Paragraph (1) requires the
Secretary to design criteria for awarding competitive grants
that would: provide maximum leverage of federal funds; provide
for the maximum deployment of solar energy; ensure geographic
and population diversity in grants awarded; provide not less
than 2 percent of the available funds to Indian tribes; and
provide a preference for grant recipients that have established
and maintained or agree to establish and maintain, standards
and policies to overcome barriers to distributed generation in
a manner consistent with the legal authorities of the grant
recipient. Paragraph (2) authorizes competitive grant funds to
be used to expand an existing or to establish and fund a new:
solar rebate program; solar loan program; solar performance-
based incentive program; or other solar deployment incentives
or innovative solar financing programs as approved by the
Secretary. Paragraph (3) requires that for each fiscal year,
grant recipients must submit an implementation plan for the
funds to the Secretary of Energy. The grant recipient must also
certify to the Secretary that the awarded federal funds will
expand or supplement, but not supplant, any existing solar
programs, and will deploy additional solar energy systems.
Subsection (c) authorizes the Secretary to specify the type
and capacity of the solar energy system and type of deployment
or incentive program eligible for grant funds.
Subsection (d) establishes a non-federal cost match of 20
percent for grant recipients.
Subsection (e) authorizes the Department of Energy to use
up to five percent of the funds made available for each fiscal
for administrative expenses. Grant recipients are permitted to
use funds for administrative expenses consistent with the
administrative expense requirements of the Energy Efficiency
and Conservation Block Grant program, set forth in section
545(b)(3)(A) of the Energy Independence and Security Act of
2007 (42 U.S.C. 17155(b)(3)(A)).
Subsection (f) states that an eligible participant that
receives a rebate under this section shall not be eligible for
a rebate under section 206(c) of the Energy Policy Act of 2005
(42 U.S.C. 15853).
Subsection (g) directs the Department of Energy to consult
with the Department of the Treasury and grant recipients to
ensure that each program carried out by the grant recipient is
coordinated with other applicable incentive or financing
programs of the Federal Government or any other applicable
program.
Subsection (h) requires with respect to each rebate, grant,
and tax credit provided to an eligible participant under the
program established under subsection (a), the aggregate value
of the grants, rebates, and tax credits may not exceed 50
percent of the cost to the purchaser of the purchase and
installation of the solar energy system.
Subsection (i) establishes the national goal of achieving
through this Act and any appropriate incentive or research and
development program to install distributed solar energy systems
on not less than 10,000,000 properties located in the United
States by December 31, 2021.
Subsection (j) requires that the Department of Energy issue
a report to Congress detailing recommendations necessary
through this and other programs to meet the goal established in
subsection (j) within 270 days after enactment of this Act.
Subsection (k) authorizes appropriations of $250 million
for fiscal year 2012 and such sums as are necessary for fiscal
years 2013 through 2021.
COST AND BUDGETARY CONSIDERATIONS
The following estimate of costs of this measure has been
provided by the Congressional Budget Office.
S. 3460--10 Million Solar Roofs Act of 2010
Summary: S. 3460 would authorize the appropriation of $250
million in 2012 and whatever sums are necessary in each of
fiscal years 2013 through 2021 for the Department of Energy
(DOE) to make grants to states to support installations of
solar energy systems for eligible homes, businesses, and other
structures. Assuming appropriation of the authorized and
necessary amounts, CBO estimates that implementing S. 3460
would cost $617 million over the 2011-2015 period. Enacting S.
3460 would not affect direct spending or revenues; therefore,
pay-as-you-go procedures do not apply.
S. 3460 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA).
Estimated cost to the Federal Government: The estimated
budgetary impact of S. 3460 is shown in the following table.
The costs of this legislation fall within budget function 270
(energy).
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
--------------------------------------------------
2011 2012 2013 2014 2015 2011-2015
----------------------------------------------------------------------------------------------------------------
CHANGES IN SPENDING SUBJECT TO APPROPRIATIONEstimated Authorization Level................................ 0 250 254 259 264 1,027
Estimated Outlays............................................ 0 75 150 183 209 617
----------------------------------------------------------------------------------------------------------------
Basis of estimate: S. 3460 would authorize the
appropriation of $250 million in 2012 and whatever sums are
necessary over the 2013-2021 period for DOE to make grants to
state and local governments to provide rebates, loans, and
other incentives to homeowners, businesses, and other eligible
participants that purchase and install solar energy systems.
(By comparison, DOE reports that the agency's funding for
research and development related to solar energy technologies
in 2010 totaled about $230 million.)
For this estimate, CBO assumes that funding levels over the
2013-2021 period would remain at the $250 million level
specified for 2012, adjusted for anticipated inflation.
Assuming appropriation of those amounts and spending patterns
consistent with similar DOE grant programs, CBO estimates that
resulting outlays would total $617 million over the 2012-2015
period. Under the bill's authorized funding through 2021, such
spending would continue after 2015, with annual outlays
averaging about $275 million a year for several years after
2015. Based on information from DOE, CBO estimates that those
amounts would support the installation of at least 100,000
solar energy systems annually.
Pay-as-you-go considerations: None.
Intergovernmental and private-sector impact: S. 3460
contains no intergovernmental or private-sector mandates as
defined in UMRA. State, local, and tribal governments would
benefit from grants authorized by the bill. Any costs to those
governments would be incurred voluntarily as a condition of
federal assistance.
Estimate prepared by: Federal Costs: Megan Carroll; Impact
on State, Local, and Tribal Governments: Ryan Miller; Impact on
the Private Sector: Amy Petz.
Estimate approved by: Theresa Gullo, Deputy Assistant
Director for Budget Analysis.
REGULATORY IMPACT EVALUATION
In compliance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee makes the following
evaluation of the regulatory impact which would be incurred in
carrying out S. 3460.
The bill is not a regulatory measure in the sense of
imposing Government established standards or significant
economic responsibilities on a private individuals and
businesses.
No personal information would be collected in administering
the program. Therefore, there would be no impact on personal
privacy.
Applying for grants authorized by S. 3460 may impose some
additional paperwork on the States, Indian tribes, and local
governments applying for the grants, and will require grant
recipients to submit implementation plans and certify how the
funds will be used. The Committee does not expect these
additional paperwork burdens to be substantial in either time
or financial cost.
CONGRESSIONALLY DIRECTED SPENDING
S. 3460, as ordered reported, does not contain any
congressionally directed spending items, limited tax benefits,
or limited tariff benefits as defined in rule XLIV of the
Standing Rules of the Senate.
EXECUTIVE COMMUNICATIONS
The views of the Administration on S. 3460 are included in
the testimony from the Department of Energy received by the
Committee at its June 15, 2010, hearing, which is set forth
below:
Statement of Steven G. Chalk, Chief Operating Officer and Acting Deputy
Assistant Secretary for Renewable Energy, Office of Energy Efficiency
and Renewable Energy, Department of Energy
Madam Chairman, Ranking Member Risch, and Members of the
Subcommittee, thank you for the opportunity to appear before
you today to discuss proposed clean energy legislation.
The Department and the Subcommittee share common goals of
strengthening our economy, enhancing our national security, and
protecting our environment. As part of the Recovery Act, the
Office of Energy Efficiency and Renewable Energy (EERE),
oversees a total of $16.8 billion in investments. To date, EERE
has obligated 96 percent, or $16.07 billion, of its Recovery
Act funds. The funds are putting America to work laying the
foundation for our clean energy future. The Department also
appreciates the authorities you have provided in recent years
in the Energy Policy Act of 2005 (EPAct) (P.L. 109-58) and the
Energy Independence and Security Act of 2007 (EISA) (P.L. 110-
140). This year, the Committee has proposed further investment
and we thank you for all your hard work in reporting the
American Clean Energy Leadership Act (S. 1462).
Today, I am pleased to offer the Department's perspective
on five pending pieces of legislation related to energy
efficiency and renewable energy. Note that many of the
authorities outlined in the bills would simply reinforce
existing authorities, and may not be necessary for the
Department to carry out the activities in question. I will
discuss them in the order listed in the hearing invitation
letter I received from the Subcommittee. These include the 10
Million Solar Roofs Act of 2010 (S. 3460), the Supply Star Act
of 2010 (S. 3396), the Improving Energy Efficiency and
Renewable Energy Use By Federal Agencies Act of 2010 (S. 3251),
the Heavy Duty Hybrid Vehicle Research, Development, and
Demonstration Act (S. 679), the Gas Turbine Efficiency Act of
2009 (S. 2900).
s. 3460--10 million solar roofs act of 2010
We thank the subcommittee and the sponsor of this
legislation for your strong leadership on solar technologies
over the years. The Department's goals for solar electric
technologies are to be cost competitive in their respective
markets by 2015 and to reach a high penetration of solar
installations. The Department is investing $232 million in 2010
to support solar research across the development pipeline, from
basic photovoltaic (PV) cell technologies to manufacturing
scaleup to total system development. Within the $232 million,
DOE is investing up to $50 million in concentrated solar power
technology development and deployment related activities and
$23 million to understand how solar technologies can be better
integrated within existing electricity generation and
transmission systems. In solar hot water heating, DOE is
investing approximately an additional $6.5 million in 2010.
The proposed legislation incorporates several significant
features. We believe that rebates, loan programs, and
performance based incentives are all effective means of
stimulating demand. Allowing states to choose between these
incentives will enable the Act to expand existing state
programs that have been effective in promoting solar
installations. In addition, the states' matching funds
requirements will leverage available federal appropriations and
increase the resulting deployment of solar technologies, both
of which are high priorities for the Department.
To maximize the effectiveness of the proposed legislation,
we would recommend two changes. First, while we support the
state match requirement, we propose that the cost share be set
at 50 percent to increase the potential leverage of federal
funds. Second, the Secretary should be given the ability to
reduce this as necessary to increase the overall effectiveness
of the program. We also believe the program could be designed
in a creative way such as working with municipalities to
promote photovoltaic installations through innovative local
programs.
We note that by our estimates, the $250 million authorized
for FY 2012 would yield roughly 100,000 rooftop solar systems,
and may not be sufficient to put us on a trajectory to meet the
goal of 10 million solar roofs. With these changes, the
legislation could be an effective tool in increasing deployment
of solar electricity technologies Nationwide. We note that
existing authorities, such as the competitive portion of the
state energy program, would allow DOE to undertake such a
program already.
s. 3396--supply star act of 2010
Supply chain energy efforts can make an important
contribution to overall industrial efficiency and the
competitive position of domestic suppliers. Analysis suggests
that a large part of the carbon footprint for many consumer
products can be attributed to the supply chain--from raw
materials, transport, and packaging to the energy consumed in
manufacturing processes--on the order of 40 to 60 percent.\1\
---------------------------------------------------------------------------
\1\Source: Climate Change and Supply Chain Management, McKinsey
Quarterly, McKinsey & Company, July 2008.
---------------------------------------------------------------------------
The Supply Star legislation seeks to build upon existing
best practices in the industrial community by establishing a
voluntary recognition program that supports and promotes
products and companies with highly energy- and resource-
efficient supply chains.
DOE and the Environmental Protection Agency (EPA) both have
existing initiatives that address supply chain efficiency, such
as Save Energy Now' at DOE and the Smart Way
Transport\TM\ program at EPA. The legislation should coordinate
with and leverage these programs as a structure through which
Supply Star activities could be conducted. For example, through
its national Save Energy Now' initiative, DOE
encourages manufacturing companies to engage their supply
chains in energy and carbon management. Specifically, DOE
develops processes and resources to assist companies in
promoting energy management to their industrial suppliers and
customers. Save Energy Now' LEADER Companies make a
voluntary commitment to reduce their energy intensity by 25
percent in 10 years. Many of these companies are interested in
improving the efficiency of their supply chains as well.
The Supply Star bill also builds upon Superior Energy
Performance (SEP), a voluntary certification program working to
provide industrial facilities with a roadmap for achieving
continual improvement in energy efficiency while maintaining
competitiveness. A central element of SEP is implementation of
the forthcoming International Organization for Standardization
(ISO) 50001 energy management standard, with additional
requirements to achieve and document energy intensity
improvements. DOE is working through SEP to bring ISO 50001 to
the U.S. Upon its expected publication in 2011 this American
National Standards Institute-accredited program will provide
companies with a framework for fostering energy-efficiency at
the plant level and a consistent methodology for measuring and
validating energy efficiency and intensity improvements. This
new framework will be an important tool to integrate into
supply chain efforts.
s. 3251--improving energy efficiency and renewable energy use by
federal agencies act of 2010
On October 5th, President Obama signed Executive Order
13514 requiring Federal agencies to set GHG emission reduction
targets, increase energy efficiency, reduce fleet petroleum
use, conserve water, reduce waste and promote environmentally-
responsible produce purchases by federal agencies. With this
action, the President directed agencies to demonstrate the
Federal government's commitment, over and above what is already
being done, to reducing emissions and saving money.
As a whole, the Federal government has made significant
progress in meeting the energy requirements of EISA 2007 and
EPAct 2005. Further progress on these efforts would be
bolstered by S. 3251. The Department is particularly supportive
of provisions clarifying the definition of allowable
``renewable'' energy sources, and authorizing the creation of a
revolving fund for Federal facility energy efficiency and
renewable energy projects.
The Department looks forward to working with the
Subcommittee on legislation that would provide agencies with
the flexibility to purchase renewable energy for appropriate
time periods, that do not exceed asset life, create appropriate
risk sharing between project developers and taxpayers, and that
recognize the importance of fiscal responsibility and
Congressional Budget Office scoring of contracts. This
authority would provide opportunities for more on-site
renewable power at Federal agencies and would provide strong
support for growing our domestic clean energy economy.
The Department's recommended definition of renewable energy
follows the definition in section 203 of EPAct 2005, with an
additional recommendation to allow for both electric energy and
thermal energy from renewable sources. It is very important to
allow thermal energy to count as renewable energy, particularly
because renewable thermal energy sources such as ground source
heat pumps are often the lowest-cost option for displacing
purchased energy and are already widely deployed. This approach
contrasts with the current definition which is limited only to
``renewable electricity,'' a definition that reduces incentives
for this valuable and cost-effective form of renewable power.
The Department fully supports the creation of a revolving
loan fund based on best practices and subject to appropriate
interest rates for Federal facility energy efficiency and
renewable energy projects. There is considerable experience and
success at the state and local level with using revolving loan
funds to assist innovative projects to improve energy
efficiency. In addition, there is Federal experience with a
similar concept within the General Services Administration
(GSA) that funds agency relocations, and agencies reimburse the
fund at slightly above costs to gradually increase the amount
of funds available for lending.
Federal agencies are already responding to the requirements
of EISA Section 432 to survey their facilities for potential
energy efficiency and renewable energy upgrades, as well as to
complete energy audits and to report on measures taken. The
Department recommends that the renewable energy facility
surveys called for in S. 3251 Section 5 should be included as a
modification of EISA Section 432.
DOE's Federal Energy Management Program is already at work
implementing provisions similar to the Federal energy
management and data collection standard called for in S. 3251
Section 7. As required under EISA Section 432, DOE will publish
overarching guidance for implementation of all Section 432
requirements in 2010. The Department is also developing a web-
based tracking system for facility-level energy data and
identified or implemented energy conservation measures per
EISA. Tasking the GSA to deploy a similar publicly-available
resource with facility-level energy data would create
redundancy as the Department's compliance tracking system will
be deployed for use by all agencies in July 2010.
s. 679--heavy duty hybrid vehicle research, development, and
demonstration act
The program authorized by S. 679 would complement several
of the Department's current activities focused on increasing
vehicle energy efficiency. One of those programs is the
SuperTruck Program, in which DOE is seeking to improve the
freight hauling efficiency of Class 8 trucks by 50 percent.
Other complementary efforts underway include: (1) the
development of hybrid school bus technology; (2) research,
development, and demonstration of medium-duty utility bucket
trucks and passenger shuttles using a plug-in hybrid electric
system; and (3) other medium and heavy duty truck deployment
activities supported by our Clean Cities program. S. 679 has
the potential to increase the fuel economy attainable by
vehicles in this sector.
There are several technical definitions and reporting
requirements about which we would like to seek clarification,
and the Department looks forward to working with the
subcommittee on those provisions.
s. 2900--gas turbine efficiency act of 2009
The Gas Turbine Efficiency Act would establish a research,
development, and technology demonstration program to improve
the efficiency of gas turbines used in combined cycle and
simple cycle power generation systems.
The Department believes that industry has economic
incentives to invest in research, development and demonstration
to increase the efficiency of gas turbines. To the extent that
the private sector underinvests in basic research, DOE has
sufficient authority and existing programs to improve high
temperature materials applicable to a range of energy
technologies.
The bill is similar to an existing successful program
within DOE. The Advanced Turbine Systems Program, a research,
development and demonstration collaborative between the
Department's Offices of Energy Efficiency and Renewable Energy
and Fossil Energy, successfully developed and deployed advanced
turbine material and coating leading to today's turbine
efficiencies.
The legislation outlines activities DOE already performs.
For example, through its Industries of the Future
(crosscutting) investments, DOE's Industrial Technology Program
(ITP) aids the development of advanced manufacturing processes
for the expanded use of lightweight materials such as titanium.
Those breakthroughs help to drive production cost down and
market impact up. In other efforts, ITP promoted advanced
alloys of steel to support many of the new clean energy
products being developed today. Nanocoating technologies are
still another group of innovations developed with the
assistance of ITP that now extend the life of tooling systems
and provide wear resistance to reduce the cost of manufacture
and extend the useful life of products. All of these efforts
support the overarching objective of reducing the energy
intensity of Industry to help advance the Administration's
energy security and environmental performance goals.
The Department is committed to continuing research of high
temperature materials which will help industry develop more
efficient energy technologies. Meanwhile, the private sector
has economic incentive to invest in the development and
demonstration of efficient gas turbines. Therefore, private
sector work on later stages of efficient natural gas turbine
development and demonstration will likely be conducted without
the need for additional funding authorizations beyond that
already in place.
In conclusion, the Department of Energy thanks the
Subcommittee for the opportunity to comment on these proposed
initiatives. We look forward to working with Congress to
develop strong, effective clean energy policy to ensure U.S.
leadership on these global issues and in the clean energy
economy.
CHANGES IN EXISTING LAW
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, the Committee notes that no
changes in existing law are made by S. 3460, as ordered
reported.