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E-M:/ New Report Finds Senate Bill that Sets Energy-Savings Appliance Standards Would Save Michiganders over $2.5 Billion



News Release

March 15, 2006                                                                         Contacts:   Mike Shriberg, PIRGIM, 734-662-6597

                                                                                                                        Senator Liz Brater, 517-373-2406

                                                                                                                        Andrew deLaski, ASAP, 617-363-9470

                                                                                                                                                                                                               

Energy-Saving Appliance Standards Would Save Michigan Consumers’ over $2.5 billion, New Report States

Senate Bill Would Capture Savings by Setting Standards for 15 Appliances

 

Ann Arbor, Michigan (March 15, 2005): From light bulbs to office water coolers to DVD players, new appliance energy efficiency standards could save the state’s consumers and businesses millions of dollars, ease pressure on high natural gas prices, improve electric system reliability, and cut global warming pollution, according to a report released today by PIRGIM and authored by the American Council for an Energy-Efficient Economy (ACEEE) and the Appliance Standards Awareness Project (ASAP).

 

“Energy efficiency standards are a win-win-win policy,” said PIRGIM Director Mike Shriberg.  “They save money, cut pollution and help wean us from imported energy sources.”

 

The report is being released on the same day as Senator Liz Brater (D-Ann Arbor) announced her sponsorship of a bill that would set standards on 15 common appliances.  Michigan needs to reduce its energy consumption and bring down prices.  Setting standards for these appliances is a commonsense step to reach this goal, and I invite my colleagues in the Legislature to join me in saving energy by supporting appliance standards,” said Brater.

 

According to the report, passing this bill in Michigan would result in annual savings reaching about 9.5 billion cubic feet natural gas (enough to heat approximately 130,000 typical households) and 2160 million kilowatt hours of electricity (equivalent to meet the electricity needs of approximately 235,000 typical homes) by 2020.  Electricity savings from the standards would cut peak electric demand by 359 megawatts in 2020, helping to stop the need for new coal-fired power plants that electric utilities are currently calling for.  Altogether, the energy savings from new standards would net energy consumers more than $2.5 billion in savings over about twenty years.

 

“Advances in technology keep giving us opportunities to cut energy waste,” said Shriberg.  “Standards that improve the energy efficiency of common consumer products and commercial equipment are a cornerstone of a sensible energy policy.”

 

Since 2004, ten states (AZ, CA, CT, MA, MD, NJ, NY, OR, RI and WA) have established new energy-saving standards covering between five and thirty products, most through new state legislation.  In August 2005, Congress took its cue from the states and made 15 of these state standards federal law.  For the new report, the authors looked beyond those products addressed by Congress in 2005 and found another 15 products for which near-term state standards make sense.  Most of these newly-recommended standards have already been adopted in one or more states.

 

“The states are ‘leading the way’ when it comes to energy-saving standards,” said Andrew deLaski, Executive Director of ASAP and co-author of the report, referring to the new report’s title.  “With consumers and businesses getting hammered by high energy prices and persistent worries about our nation’s addiction to imported energy, state policy-makers are looking to energy efficiency.  It’s the cheapest, fastest, and safest way to meet our energy needs.”

 

By lowering natural gas use, the standards could help lead to lower energy prices.   In a separate 2005 study, ACEEE found that a 2 to 4% reduction in natural gas use can reduce natural gas prices by 20% or more in tight market conditions.  The recommended appliance efficiency standards would start saving natural gas immediately.  If adopted nationally, the savings levels would grow to 340 billion cubic feet per year by 2020, about 1.3% of the U.S. Department of Energy’s projected national consumption for that year.

 

Products for which the report recommends state efficiency standards include: bottle-type water dispensers; DVD players, certain audio products and external power supplies for electronics (a.k.a., “energy vampires”); reflector light bulbs and certain commercial light fixtures; swimming pool pumps and heaters; hot tubs; and walk-in refrigerators.  Strong standards for home furnaces and boilers, a product covered by an out-of-date federal standard, would yield the biggest savings.  The new report provides details on each of the products for which new state standards make sense.

 

According to Shriberg, standards are a “proven successful” way to curtail energy waste.  New standards can be set at the state or federal level, but states have nearly always acted first.  States first set appliance and equipment efficiency standards in the 1970s and 1980s, leading eventually to federal standards for more than two dozen products.  Based on U.S. Department of Energy data, these already existing standards will cut U.S. electricity use by nearly 8% by 2020. 

 

The report relied on clear criteria for selecting recommended standards.  Each recommended standard would result in significant energy savings and be very cost-effective (i.e. purchasers of the affected products would earn back any incremental cost to improve efficiency within one to three years for most products).  In addition, products meeting the recommended standards are readily available today from multiple manufacturers and existing technical standards ease state implementation of such standards.

 

“The Legislature has the opportunity to take immediate, strong action to save energy through appliance efficiency standards,” said Brater.  “Given our high energy prices, flagging economy and the fact that we import nearly all of our energy resources, the time is right to significantly reduce our energy use by adopting appliance efficiency standards.”

 

Leading the Way: Continued Opportunities for New State Appliance and Equipment Efficiency Standards including an online appendix of state-by-state impact data is available for free download at www.standardsASAP.org. 

 

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PIRGIM is a non-profit, non-partisan public interest organization.  With over 10,000 members across the state and offices in Lansing and Ann Arbor, PIRGIM has worked since 1972 to represent the interests of Michigan’s consumers and the environment.

 

The American Council for an Energy-Efficient Economy is an independent, nonprofit organization dedicated to advancing energy efficiency as a means of promoting both economic prosperity and environmental protection. For information about ACEEE and its programs and other publications, visit http://aceee.org.

 

The Appliance Standards Awareness Project (ASAP) is a coalition group dedicated to advancing cost-effective energy efficiency standards for appliances and equipment.  ASAP works at both the state and federal levels and is led by a Steering Committee with representatives from consumer groups, utilities, state government, environmental groups, and energy efficiency groups.  For information about ASAP, contact ASAP, 20 Belgrade Avenue, Suite 1, Boston, MA  02131 or visit  http://standardsASAP.org.