End Game for the 111th Congress: Prospects for Post-Election Session and Beyond

Policy and Programs Committee

October 4, 2010

Brad PenneyDirector of Government Relations

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;

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

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;

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 StatusSenate $5 billion grant

program included in Reid’s Oil Spill Bill Not passed

Bingaman RES doesn’t include Home Star

Lame Duck?

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?

PACE Current StatusWhat 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.

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.

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

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

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.)

Thank You!

Brad Penney

bpenney@ase.org

202-530-4348