Brad p&p presentation 10.06.10


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Brad p&p presentation 10.06.10

  1. 1. End Game for the 111th Congress: Prospects for Post- Election Session and Beyond Policy and Programs Committee October 4, 2010 Brad Penney Director of Government Relations
  2. 2. Demise of climate legislation and slim prospects for energy bills  Alliance advocacy for energy bill priorities in July and early August;  Introduction in July of the “oil spill” bill by Senator Reid --- (S.3663) Clean Energy Jobs and Oil Company Accountability Act of 2010  Reid announcement in early July that comprehensive energy & climate legislation would not be considered this year;  Partisan gridlock & pending mid-term elections; WH did not press the issue;  Earlier shift in Alliance messaging to stress urgency of passing an energy bill this year with RES/EERS; codes; appliance standards and other key provisions;
  3. 3.  At least three weeks for “lame duck” – possibly longer;  Implementation of National Consensus Agreements (appliances)  Bi-partisan RES bill (S. 3813), requiring utilities to generate 15% of their electricity from renewable sources by 2021 (up to ¼ of the requirement can be met by EE);  27 co-sponsors, but questionable whether 60 votes are there;  Bill is identical to the ACELA RES  Reid wants no amendments;  Graham alternative bill has nuclear and clean coal provisions;  Crowded agenda for lame duck session – floor time is a problem. Outlook for Post-Election session: RES bill + standards
  4. 4. Other Lame Duck Candidates for Floor Action  Bingaman & Snowe energy efficiency tax bill (S. 3935)  Bingaman wants new DOE loan guarantee program;  Extension of clean energy manufacturing tax credit  Rockefeller bill (S. 3072) delays EPA regulation of stationary sources for two years (not vehicles)  Reid bill on natural gas vehicles and electric vehicles (S.3815);  Tax bill/extenders;
  5. 5. House  $5 billion grant program passed in May  MTR stripped out loan program  $5 billion loan program passed House with Rural Star Bill in September  Two House-passed bills present two options for the Senate. Home Star Current Status Senate  $5 billion grant program included in Reid’s Oil Spill Bill  Not passed  Bingaman RES doesn’t include Home Star  Lame Duck?
  6. 6. Roadblock for PACE Funding • Fannie and Freddie issued a statement on May 5th reminding lenders that PACE programs place a superior lien in the property, a practice they do not allow. • Federal Housing Finance Agency supported the position in a July 6th statement. • On August 31st, Fannie Mae and Freddie Mac issued additional lender requirements: • PACE loans issued prior to July 6th would need to be paid off prior to refinancing. • The lenders would not accept PACE senior liens issued after July 6th. What happened with Fannie and Freddie?
  7. 7. PACE Current Status What are the effects? • Limited credit in areas where PACE financing has occurred. • Existing PACE participants and PACE programs that do not place superior liens on property are exempt. • Municipalities suspending existing programs and recommitting Recovery Act funding to other activities. Pending Legislation: • Legislation in House (H.R. 5766) and Senate (S. 3642) would override objections of Fannie, Freddie and FHFA. • Litigation filed by California Attorney General, Babylon, New York, the Sierra Club and others would oppose the authority of the agencies in municipal tax assessments. • Efforts are ongoing. Proposed a pilot program for 300,000 homes for PACE projects. This exceeds the number of homes currently participating.
  8. 8. EE Coalition  Weekly conference calls with 25-30 advocates;  Regular letters to the Senate on issues ranging from tax priorities to Home Star to efficiency priorities, followed up by Hill meetings;  Close coordination with Home Star, Building Star coalitions and other groups to harmonize “messaging”;  EERS Coalition joined Alliance EE Coalition for balance of this year.
  9. 9. Continuing Resolution & Omnibus Funding bill CR funds agencies at FY 2010 levels through December 3rd; DOE/EERE (FY 2010 appropriated levels) - Building Technologies: $ 222 million (equipment standards, codes, R&D, CBI, Energy Star) - Industrial Technologies: $96 million - FEMP: $32 million - EE total within the EERE budget: $921 million  EPA - Energy Star: $53 million
  10. 10. American Recovery and Reinvestment Act  $26B for core efficiency programs  Money obligated, but not fully spent in five key programs:  State Energy Program  Appropriated: $3.1 billion  Spent: $0.5 billion (16%)  Energy Efficiency and Conservation Block Grants  Appropriated: $3.2 billion  Spent: $.4 billion (12%)  Weatherization Assistance Program  Appropriated: $5.0 billion  Spent: $1.5 billion (31%)  Appliance Rebates  Appropriated: $300 million  Spent: $187 million (63%)  Smart Grid Grants and Demonstration  Appropriated: $4.2 billion  Spent: $.3 billion (8%) *This data is through Sept. 17th 2010
  11. 11. ARRA EE spending to date  Of these programs, only about $3 billion has been spent as of September 17: - Low estimate: only funds associated with completed projects can be counted as “spent.” Also does not account for private investment in stimulus funded projects. - DOE has overcome major federal hurdles (NEPA, Davis-Bacon, etc.)
  12. 12. Thank You! Brad Penney 202-530-4348