C H A P T E R F O U R

Using Energy Wisely

Increasing Energy Conservation and Efficiency

E
nergy efficiency is the ability to policy. Improved energy efficiency is the
use less energy to produce the result of many decisions, including those of
same amount of lighting, heating, individual consumers; manufacturers of
transportation, and other energy cars and appliances; home builders; and
services. For a family or business, state, federal, and local government offi­
conserving energy means lower energy cials. The federal government can promote
bills. For the country as a whole, greater en­ energy efficiency and conservation by in­
ergy efficiency helps us make the most of cluding the dissemination of timely and ac­
The Department of Energy U.S. energy resources, reduces energy curate information regarding the energy
has installed two low-sulfur shortages, lowers our reliance on energy use of consumers’ purchases, setting stan­
light bulbs as a test at its imports, mitigates the impact of high energy dards for more energy efficient products,
Forrestal Building headquar­
prices, and reduces pollution. Improve­ and encouraging industry to develop more
ters in Washington, D.C. The
two golf ball-sized bulbs, like ments in efficiency can be particularly ef­ efficient products. The federal government
those on the opposite page, fective in reducing energy demand when en­ can also promote energy efficiency and
are at each end of a 240-foot, ergy is most expensive. conservation through programs like the
10-inch-wide reflective Conservation and energy efficiency Energy Star program, and search for more
plastic “light pipe.” are important elements of a sound energy
U.S. DEPARTMENTOF ENERGY
innovative technologies that improve effi­
ciency and conservation through research
and development.
Since 1973, the U.S. economy has
grown nearly five times faster than energy
use (126 percent versus 26 percent). Had
Americans continued to use energy as in­
tensively as in 1970, the U.S. would have
consumed about 177 quadrillion Btus of en­
ergy last year, compared to about 99 qua­
drillion Btus actually consumed.

British Thermal Unit (Btu)

A British thermal unit is the amount of
heat required to raise the temperature of
one pound of water one degree Fahren­
heit at sea level. Put another way, it is
approximately the same amount of en­
U.S. DEPARTMENTOF ENERGY

ergy contained in a wooden match head.

4-1 NATIONAL ENERGY POLICY

Figure 4-1 Improving Efficiency through gies offer expanded opportunities to im­
New Refrigerator-Freezers Innovative Technologies prove our energy efficiency. For example,
are Using Less Energy advanced sensors and controls enable more
One measure of energy efficiency is
Consumption per Unit for efficient operation of buildings and facto­
energy intensity—the amount of energy it
New Shipments
takes to produce a dollar of gross domestic ries, and allow equipment and lights to be
(Kilowatt-Hours per Year)
product (GDP). While about half of the turned off or dimmed when not in use. Hy­
1,800
long-term decline in energy intensity can be brid vehicles use power electronics and
1,600 attributed to changes in the economy, espe­ battery storage to get more out of every gal­
cially the shift from manufacturing to ser­ lon of gasoline consumed, and provide the
1,400 ability to double vehicle mileage. Cogenera­
vices, the other half reflects improved en­
1,200 ergy efficiency. Gains in energy efficiency tion of electricity and heat and combined
over the last three decades were built on a heat and power allow for the productive
1,000 use of much of the waste heat from elec­
combination of technological improve­
800 ments, better management practices, and tricity production, which accounts for
learning to put these technologies and prac­ about two-thirds of the energy used to pro­
600 duce electricity.
tices to their best use in automobiles,
400 homes, offices, factories, and farms. In
many areas the results have been quite im­ District Energy St. Paul—

200 A Combined Heat and Power Plant

pressive. New home refrigerators use about

0
one-third of the electricity they used in 1972 District Energy St. Paul, Inc., is a com­

1972 80 85 90 95 01 bined heat and power plant that can

(Figure 4-1). Compact fluorescent lights use

Over the last thirty years, the energy
efficiency of refrigerator-freezer appli­ about 25 percent of the electricity of the in­ operate on natural gas, oil, or clean­

ances has increased by approximately candescent bulbs they replace. Automobiles burning coal that is mixed with wood

70 percent. use roughly 60 percent of the gasoline they chips. These wood wastes come from

________

Sources: AHAM 2000 Major Home

did in 1972 per mile driven. These individual downed trees, trimmings, and

Industry Fact Book and BTS appliance

branches. District Energy has been

standard.

technological improvements have resulted

in significant reductions in energy use (Fig­ able to keep its rates stable because it

ure 4-2). is able to rely on a diverse fuel supply.

Several new and innovative technolo- District Energy serves about 75 per­

cent of all building space in the city.

Figure 4-2 Nearly 150 large buildings and 3,200

The U.S. Economy Has Become More residential units use the system. It is

Energy Efficient the largest system of its kind in the

(Thousands of Btus) nation.

20

Recommendation:

18
★ The NEPD Group recommends that

the President direct the Secretary of

16
Energy to conduct a review of current

funding and historic performance of

14 energy efficiency research and devel­

opment programs in light of the rec­

12 ommendations of this report. Based

on this review, the Secretary of En­
10 ergy is then directed to propose ap­
propriate funding of those research
1973 77 81 85 89 93 97 99 and development programs that are
The amount of energy used by the United States in relation to performance-based and are modeled
its economic output has steadily declined since the early as public-private partnerships.
1970s.
________

Source: U.S. Department of Energy, Energy Information Administration.

4-3 NATIONAL ENERGY POLICY

Consumer Choices
The two most important factors in
consumers’ decisions about purchasing an
energy efficient product are price and the
life of the product. When energy prices are
high, consumers tend to weigh energy effi­
ciency more heavily. Unless consumers are
informed about the price of energy, they
may not have the incentive to select the
most energy efficient product.
Consumers do not receive timely sig­
nals about rising electricity costs in order to
make adjustments to their energy use and
efficiency. When consumers’ peak costs are
averaged with off-peak costs, the higher
cost of peak electricity supplies is masked.
As a result, consumers may not recognize
the benefits of investing in technologies that
best target peak consumption.
Some energy efficiency improve­
ments are easiest and most cost effective ances with modern ones can save money. Some efficiency improve-
to undertake when first building new facto­ The federal government established a ments are easiest and most
ries, cars, equipment, appliances, and mandatory program in the 1970s requiring cost-effective to undertake
buildings. Some energy-using equipment, when first building new
that certain types of new appliances bear a
factories, cars, equipment,
like computers, are used for only a few label to help consumers compare the energy appliances and buildings.
years before being replaced. Other equip­ efficiency of various products. Under this
ment is used from five to twenty years, program, all refrigerators, freezers, clothes
such as home appliances, home electron­ washers, and dishwashers are sold with yel­
ics, and lighting systems. Some capital low Energy Guide labels to indicate their en­
stock, such as buildings and boilers, can ergy efficiency. These labels provide an esti­
last a half a century or more. mated annual operating cost of the appli­
The average car now lasts fourteen ance, and also indicate the cost of operating
years, and newer cars have even more lon­ the models with the highest annual operat­
gevity. Vehicle efficiency improvements re­ ing cost and the lowest annual operating
quire significant technological changes. De­ cost. By comparing a model’s annual operat­
velopment of new-car production models ing cost with the operating cost of the most
requires at least three to four years, which efficient model, you can compare their effi­
limits the rate at which new technologies ciencies. This labeling program ensures that
can enter the market. Making fundamental consumers have the information they need
changes, such as switching to the use of a to make the right decisions when they pur­
fuel cell, would take even longer. Once chase major home appliances. However, En­
those new vehicles are in the showroom, it ergy Guide labels are not currently required
then takes several more years before they for some products, such as kitchen ranges,
constitute any sizable percentage of total microwave ovens, clothes dryers, on–de­
vehicles. mand water heaters, portable space heaters,
In a typical U.S. home, appliances and lights.
are responsible for about 20 percent of the The federal government not only en­
energy bills. Refrigerators, freezers, clothes sures consumers have information on the
washers, dryers, dishwashers, and ranges energy efficiency of major home appliances.
and ovens are the primary energy-using ap­ It also promotes the most energy efficient
pliances in most households. Taking steps products through the Energy Star program,
to save energy while using these appli­ a joint program run by the Department of
ances, and replacing old inefficient appli­ Energy and the Environmental Protection

Chapter 4 • Using Energy Wisely: Increasing Energy Conservation and Efficiency 4-4
 pliances, and services.
• Strengthen Department of Energy
public education programs relating
to energy efficiency.

Energy efficiency can also be im­

proved by the establishment of minimum
energy efficiency standards. Congress en­
acted legislation in 1987 and 1988 to estab­
lish minimum energy efficiency standards
for many major appliances. These standards
apply to manufacturers, not consumers. Ap­
pliance manufacturers must produce prod­
ucts that meet the minimum level of energy
efficiency. These rules do not affect the
marketing of products manufactured before
the standards went into effect, and any
products made beforehand can be sold. The
new standards will stimulate energy savings
that benefit the consumer, and reduce fossil
fuel consumption, thus reducing air emis­
sions.
A 48-story skyscraper at the corner of Broad­ These laws established minimum en­
way and 42nd Street in New York City has a ergy efficiency standards for many appli­
photovoltaic skin that uses thin-film PV panels ances, including refrigerators, refrigerator­
to replace traditional glass cladding material. freezers, freezers, room air conditioners,
The PV curtain wall extends from the 35th to
the 48th floors on the south and east walls of
fluorescent lamp ballasts, and incandescent
the tower, making it a highly visible part of the reflector lamps, clothes dryers, clothes
New York City skyline. washers, dishwashers, kitchen ranges, and
U.S. DEPARTMENT OF ENERGY, NATIONAL RENEWABLE ENERGY ovens, pool heaters, and water heaters. The
In April 2001, the Sustain­ LABORATORY
able Buildings Industry Energy Policy Act of 1992 added standards
Council showcased a net­ Agency. Energy Star is only awarded to ap­ for fluorescent and incandescent reflector
zero-energy home featuring pliances that significantly exceed minimum lamps, plumbing products, electric motors,
passive solar design strate­ energy efficiency standards. The Energy and commercial water heaters, and heating,
gies, an integrated photovol­ ventilation, and air conditioning systems.
Star program does not extend to all prod­
taic system, domestic solar
ucts. Energy efficiency would be further Under current law, the Department of En­
hot water, high-efficiency
lights and appliances, and a promoted if the Energy Star program were ergy can raise the minimum energy effi­
host of sustainable, market­ expanded to a broader range of products. ciency standards for these appliances if cer­
ready components and tain criteria are met, such as cost, techno­
systems. Recommendation: logical feasibility, and the impact on compe­
SUSTAINABLE BUILDINGS INDUSTRY COUNCIL
tition among appliance manufacturers. In
★ The NEPD Group recommends that
addition, the Department can set energy ef­
the President direct the Secretary of
ficiency standards for appliances not cov­
Energy to promote greater energy
ered by these laws.
efficiency.
• Expand the Energy Star program be­
Recommendation:
yond office buildings to include
schools, retail buildings, health care ★ The NEPD Group recommends that
facilities, and homes. the President direct the Secretary of
• Extend the Energy Star labeling Energy to take steps to improve the en­
program to additional products, ap­ ergy efficiency of appliances.

4-5 NATIONAL ENERGY POLICY

 • Support appliance standards pro­ State and local governments have
gram for covered products, setting unique opportunities for energy savings in
higher standards where technologi­ schools, transportation, state buildings,
cally feasible and economically jus­ and building codes. For example, the Texas
tified. School Energy Management Program could
• Expand the scope of the appliance save school districts as much as $100 mil­
standard program, setting stan­ lion in energy costs every year by helping
dards for additional appliances school districts evaluate their energy needs
where technologically feasible and and resources. Similarly, Wisconsin’s En­
economically justified. ergy Initiative is working with utilities to
make basic changes to public buildings. By
installing new lighting fixtures and taking
Energy Efficiency other steps, Wisconsin estimates that it will
Government Agencies save $60 million in state spending on en­
ergy over ten years.
As the largest energy consumer in the
nation, the U.S. government’s cost- and en­
Residential and Commercial Buildings
ergy-saving opportunity is enormous. In
There are significant opportunities to
1999, the government consumed nearly 1.1
improve the energy efficiency of buildings
percent of all U.S. energy and spent nearly
and homes through technologies and better
$8 billion for its vehicles, operations, and its
practices. For existing homes, immediate
nearly 500,000 buildings.
options for improving efficiency include re­
The federal government has reduced
ducing air infiltration with caulking and
its energy use in buildings by about 30 per­
weather stripping, installing modern ther­
cent from 1990 levels, largely by installing
mostats, sealing ductwork, and adding in­
energy efficient technologies (Figure 4-3). It
sulation. These steps can reduce the 40 per­
has reduced its energy use for vehicles and
cent share of residential energy bills that
equipment by 35 percent. Some of these im­
provements are attributable to the Depart­
Figure 4-3
ment of Energy, whose Federal Energy Man­ The U.S. Government is Reducing
agement Program helps government agen­ Its Energy Consumption
cies reduce their energy and water use, man­ (Trillions of Btus)
age their utility costs, and promote renew­ 1,500
able energy.
1,400

Recommendations: 1,300
★ The NEPD Group recommends
1,200
that the President direct heads of ex­
ecutive departments and agencies to
1,100
take appropriate actions to conserve
energy use at their facilities to the 1,000
800
maximum extent consistent with the
effective discharge of public responsi­ 1990 91 92 93 94 95 96 97 98 99

bilities. Agencies located in regions During the 1990s, energy use in federal buildings decreased by
where electricity shortages are pos­ about 30 percent.
________

sible should conserve especially dur­ Source: U.S. Department of Energy, Energy Information Administration.

ing periods of peak demand.

• Agencies should report to the Presi­
dent, through the Secretary of En­
ergy, within 30 days of the conserva­
tion actions taken.

Chapter 4 • Using Energy Wisely: Increasing Energy Conservation and Efficiency 4-6
 go toward heating and cooling. Additional
savings are possible when efficient appli­
ances are purchased or major home reno­
vations are undertaken. Installing a new,
more efficient gas furnace can save up to
20 percent annually on natural gas. New
buildings offer the greatest energy effi­
ciency opportunities and can be designed
to be both more comfortable and more effi­
cient, cutting heating and cooling costs by
close to 50 percent.
In commercial buildings, typically the
quickest, most cost effective way to in­
crease energy efficiency is to replace the
PULTE HOMES
lighting systems. Sensors help to avoid 24­
Building America—Pulte Homes hour operation of lights and equipment that
are only used for a portion of the day. As
Pulte Homes Southwest Division
with homes, advances in windows, heating
has used technical assistance from
and air conditioning systems, overall build­
the Department of Energy’s Build­
ing designs, and equipment and appliances
ing America program to create
present significant energy saving opportu­
what one residential expert calls
nities.
“the best production house in the
Many families and businesses can
world,” which won the 2001 Na­
face obstacles to realizing energy cost re­
tional Association of Home Build­
ductions.
ers’ Energy Value Award. In Tuc­
son, Phoenix, and Las Vegas, Pulte
Homes has worked with the De­ Insufficient Information
partment of Energy to redesign the Monthly energy bills generally report
energy features of its basic models. only total electricity or natural gas used,
leaving families and businesses unsure
Using advanced insulation tech­ about which energy services are most re­
niques, highly efficient equipment sponsible for their energy use, and which
and windows, and right-sized heat­ investments could best help them reduce
ing and cooling systems, the homes their costs. In addition, consumers may be
look the same, but perform so well unsure about the credibility of the energy­
they use half the energy for heating saving claims of individual manufacturers,
and cooling at virtually no increase salesmen, and designers. This incomplete
in construction costs. information causes imperfections in the
marketplace that hinder purchases of effi­
The whole building/systems engi­ cient technologies that would actually save
neering approach used in the families and businesses money.
Building America program allows
builders to add more insulation Lack of Availability
and more efficient windows while Frequently, the most energy efficient
reducing the size of the heating and products cost more and are not widely
cooling equipment. The trade-off available, especially in smaller communi­
means no added cost to the ties. Builders who would like to construct
builder, better value for the buyer, more efficient homes and businesses face
reduced electric load for the utility, the same problem at the wholesale level.
and improved affordability. For example, to keep costs down, builders
are less likely to install top-of-the-line,

4-7 NATIONAL ENERGY POLICY

highly efficient products. The less expen­
sive and generally less efficient products
are heavily stocked and deeply discounted
due to volume ordering. The decisions
made about the energy efficiency of build­
ings and homes are not usually made by the
consumer who will ultimately pay the en­
ergy bills. The incentive is for the builders
to choose the material that poses the least
cost to the builder, which is not necessarily
the most energy efficient choice.

Lack of Automation
People often walk out of their offices
and homes with the lights on and the air improved efficiency of motors (motors ac- High energy prices during
conditioner running. Turning off unused ap­ count for 54 percent of electricity use in the 1970s and early 1980s
pliances, electronics, and lights is not al­ manufacturing) and from improved steam caused many farmers to find
and hot-water systems. Many companies ways to reduce their energy
ways easy. Lack of automation (e.g., day­ costs, such as by switching
light sensors) means that conservation can reduce energy needs further by
from gasoline-powered to
mostly depends on people turning off cogenerating their electricity and heat for more fuel efficient diesel­
switches. Some appliances and electronics, steam. powered engines and by
such as stereos, video tape players, and Energy use for U.S. agriculture grew dur- adopting conservation tillage
ing the 1960s and 1970s, peaking in 1978. High practices.
televisions, continue to use electricity even
after they are turned off. energy prices during the 1970s and early 1980s
caused many farmers to find ways to reduce
their energy costs, such as by switching from
Higher Initial Costs gasoline-powered to more fuel-efficient diesel­
Efficient products often cost more powered engines, adopting conservation tillage
than less efficient versions, especially when practices, shifting to larger multiprocessor ma­
they are first introduced to the market. Un­ chines, and using energy saving methods for
less consumers can verify the resulting sav­ drying and irrigating crops. These measures
ings, they may be reluctant to pay the addi­ helped farmers reduce their energy use by 41
tional costs. Businesses that adopt labeling percent from 1978 to 1998, while agricultural
programs that spell out energy savings may output grew by about 40 percent over the same
be more successful in selling a more effi­ period.
cient, yet initially more expensive product. Farmers can reap additional energy
Higher initial costs can be particularly diffi­ savings as they replace old machinery with
cult for the purchaser or builder of a new more energy efficient equipment. Further­
home or office building. more, farmers can adopt more advanced
practices, such as precision farming, that
optimize the use of machines, chemicals,
Industry and Agriculture
and fertilizers to achieve energy savings.
Six industries consume three-quarters New seed varieties can also reduce energy­
of all industrial energy: lumber and paper; intensive chemical requirements.
chemicals; petroleum refining; primary met­ Despite the opportunity for increased en­
als; food processing; and stone, clay, and ergy efficiency, the industrial and agricultural
glass. Improved energy efficiency in these sectors face several obstacles. Because many
energy-intensive industries yields even manufacturing and farming operations are
larger improvements in overall productivity, highly specialized, they need specific informa­
product quality, safety, and pollution pre­ tion on energy-saving opportunities to effec­
vention. Manufacturing companies gener­ tively respond to energy price signals and sup­
ally obtain their largest savings from ply problems.

Chapter 4 • Using Energy Wisely: Increasing Energy Conservation and Efficiency 4-8
 In order for manufacturing or agriculture Transportation
Cogeneration
to switch to more efficient energy products and Transportation plays a key role in a
In 1998, Malden Mills growing U.S. economy, comprising 16 per­
practices, significant costs are incurred due to
Industries, a textile cent of GDP in 1998, 10.5 percent of total
production delays, waste and spoilage, and la­
manufacturer em­
bor costs. As a result, manufacturers and farm­ employment, and 27 percent of total U.S.
ploying 2,300 workers
ers tend to use readily available and reliable energy consumption. Trucks and automo­
in Lawrence, Massa­
equipment when upgrading, instead of untested, biles account for over three-fourths of the
chusetts, installed a
newer products and approaches. sector’s petroleum use, with the remainder
state-of-the-art com­
Because of their large needs for both attributable to rail, ship, air, and pipeline
bined heat and power
(CHP) facility. The heat and electricity, businesses find com­ systems. Mass transit ridership has in­
system uses two 4.3 bined heat and power (CHP) systems par­ creased by 21 percent since 1996. Automo­
MW industrial gas tur­ ticularly attractive. However, replacing old, biles today use roughly 60 percent of the
bines, retrofitted with inefficient boilers with highly efficient CHP gasoline they did in 1972 per mile driven,
ceramic combustion systems may add a number of new regula­ due in part to new technology, such as bet­
liners, that were de­ tory requirements (such as air permits), but ter engine and design controls, improved
veloped as part of the does not offer the same tax depreciation in­ transmission, weight reduction, and im­
Department of centives the tax code grants to power proved aerodynamics. Despite the adoption
Energy’s Advanced plants. of more efficient transportation technolo­
Turbine Systems pro­ gies, average fuel economy for passenger
gram, and that enable Recommendations: vehicles has remained relatively flat for ten
higher operating tem­ ★ The NEPD Group recommends that years and is, in fact, at a twenty-year low, in
peratures and lower the President direct the Secretary of large part due to the growth and popularity
emissions. The CHP the Treasury to work with the Con­ of low-fuel-economy pickup trucks, vans,
system saves Malden gress on legislation to encourage in­ and sport utility vehicles (Figure 4-4).
Mills more than $1 creased energy efficiency through
million annually. The Recommendation:
combined heat and power (CHP)
liners have accumu­ projects by shortening the deprecia­ ★ The NEPD Group recommends that the
lated more than 9,500 tion life for CHP projects or providing President direct the Secretary of Transpor­
hours of successful an investment tax credit. tation to:
operation and have • Review and provide recommenda­
cut emissions of ni­ tions on establishing Corporate Av­
★ The NEPD Group recommends that
trogen oxides and erage Fuel Economy (CAFE) stan­
the President direct the Administrator
carbon monoxide to dards with due consideration of the
of the Environmental Protection
less than 15 parts per
Agency (EPA) to work with local and National Academy of Sciences
million.
state governments to promote the use study to be released in July 2001.
of well-designed CHP and other clean Responsibly crafted CAFE stan­
power generation at brownfield sites, dards should increase efficiency
consistent with the local communities’ without negatively impacting the
interests. EPA will also work to clarify U.S. automotive industry. The deter­
liability issues if they are raised at a mination of future fuel economy
particular site. standards must therefore be ad­
dressed analytically and based on
★ The NEPD Group recommends that sound science.
the President direct the EPA Adminis­ • Consider passenger safety, eco­
trator to promote CHP through flex­ nomic concerns, and disparate im­
ibility in environmental permitting. pact on the U.S. versus foreign fleet
of automobiles.
• Look at other market-based ap­
Conservation can be improved by car pooling, proaches to increasing the national
telecommuting, increasing public transit average fuel economy of new motor
choices, and pricing highway use during vehicles.
periods of peak demand.

4-9 NATIONAL ENERGY POLICY

 Figure 4-4
Opportunities for reducing oil demand in Higher Initial Production Costs
Fuel Efficiency of Light
the transportation sector include increasing con­ Because of the large economies of Vehicles Has Remained Flat
servation, vehicle efficiency, and alternative fu­ scale in automobile manufacturing, new (Miles per Gallon)
els. Conservation can be improved by car pool­ technologies with limited early production 30
ing, telecommuting, and increasing transit runs often enter the market at higher initial New Cars
choices. For example, an increase in the av­ costs. In this highly competitive interna­ 25
erage fuel economy of the on-road vehicle tional market, higher initial production Combined
fleet by three miles per gallon would save costs can be a significant impediment to the in­ 20
one million barrels of oil a day, or about troduction of new technologies. Unless U.S. New Trucks
half of the global shortfall between supply automakers can remain competitive with their 15
and demand that triggered the oil price in­ overseas counterparts, it is unlikely they will in­
creases since 1998. In addition, fuel conser­ vest in new, more efficient technologies. Vehicle 10
vation can be further improved by tech­ efficiency technologies, such as advanced en­
nologies to reduce congestion. gines, fuel cells, and cutting-edge electronic
5
A recent analysis indicates that the drive-train technologies, will become widely
0
fuel economy of a typical automobile could available only when component costs are re­
1980 85 90 95 00
be enhanced by 60 percent by increasing en­ duced or demand is increased.
gine and transmission efficiency and reduc­ Despite the adoption of more effi­
cient transportation technologies,
ing vehicle mass by about 15 percent. Sev­ U.S. average fuel economy has been
eral promising efficiency technologies are flat for 10 years. In large part, this is
being presented to the U.S. market. For ex­ Hybrid Vehicles due to the growth of low-fuel­
economy pickup trucks, vans, and
ample, some automobile manufacturers The engine of a conventional gasoline sport utility vehicles.
have already introduced hybrid vehicles, vehicle is typically sized for the small ________

amount of time the driver spends ac­ Source: U.S. Department of Energy, Energy

and others have announced that they will in­ Information Administration.

troduce hybrid vehicles within the next sev­ celerating to enter the freeway, to
eral years. Advanced lightweight materials pass another car, or to climb a hill.
offer up to 6 percent improvement in mile­ Most of the time it operates at less
age for each 10 percent reduction in body than 20 percent efficiency. An attrac­
weight. Although promising, it may be many tive alternative is to use a hybrid sys­
years before hybrids become a substantial tem that allows the engine to operate
part of the automotive fleet. at peak efficiency, and get a boost
from a battery when entering the
Recommendations:
freeway or climbing a hill. Not only
★ The NEPD Group recommends that
does this system allow improved per­
the President direct the Secretary of
formance from a smaller engine, but
Transportation to review and promote
the energy usually lost in stopping the
congestion mitigation technologies
car can be recovered and stored in
and strategies and to work with the
the battery.
Congress on legislation to implement

these strategies.
What does this mean to the average
American? Significantly improved fuel
★ The NEPD Group recommends that
economy and reduced emissions.
the President direct the Secretary of

the Treasury to work with Congress on

legislation to increase energy effi­

ciency with a tax credit for fuel-effi­

cient vehicles. The NEPD Group rec­

ommends that a temporary, efficiency­

based income tax credit be available

for purchase of new hybrid or fuel cell

vehicles between 2002 and 2007.

Chapter 4 • Using Energy Wisely: Increasing Energy Conservation and Efficiency 4-10
 Summary of Recommendations
Using Energy Wisely: Increasing Energy Conservation and Efficiency

★ The NEPD Group recommends that the President direct the Office of Science and Technology Policy and the
President’s Council of Advisors on Science and Technology to review and make recommendations on using the
nation’s energy resources more efficiently.

★ The NEPD Group recommends that the President direct the Secretary of Energy to conduct a review of current fund­
ing and historic performance of energy efficiency research and development programs in light of the recommendations
of this report. Based on this review, the Secretary of Energy is then directed to propose appropriate funding of those re­
search and development programs that are performance-based and are modeled as public-private partnerships.

★ The NEPD Group recommends that the President direct the Secretary of Energy to promote greater energy effi­
ciency.
• Expand the Energy Star program beyond office buildings to include schools, retail buildings, health care facili­
ties, and homes.
• Extend the Energy Star labeling program to additional products, appliances, and services.
• Strengthen Department of Energy public education programs relating to energy efficiency.

★ The NEPD Group recommends that the President direct the Secretary of Energy to improve the energy efficiency
of appliances.
• Support the appliance standards program for covered products, setting higher standards where technologically
feasible and economically justified.
• Expand the scope of the appliance standards program, setting standards for additional appliances where tech­
nologically feasible and economically justified.

★ The NEPD Group recommends that the President direct heads of executive departments and agencies to take ap­
propriate actions to conserve energy use at their facilities to the maximum extent consistent with the effective dis­
charge of public responsibilities. Agencies located in regions where electricity shortages are possible should conserve
especially during periods of peak demand. Agencies should report to the President, through the Secretary of Energy,
within 30 days on the conservation actions taken.

★ The NEPD Group recommends that the President direct the Secretary of the Treasury to work with Congress to en­
courage increased energy efficiency through combined heat and power (CHP) projects by shortening the depreciation
life for CHP projects or providing an investment tax credit.

★ The NEPD Group recommends that the President direct the Administrator of the Environmental Protection Agency
(EPA) to work with local and state governments to promote the use of well-designed CHP and other clean power gen­
eration at brownfields sites, consistent with the local communities’ interests. EPA will also work to clarify liability is­
sues if they are raised at a particular site.

★ The NEPD Group recommends that the President direct the EPA Administrator to promote CHP through flexibility
in environmental permitting.

★ The NEPD Group recommends that the President direct the Secretary of Transportation to:
• Review and provide recommendations on establishing Corporate Average Fuel Economy (CAFE) standards
with due consideration of the National Academy of Sciences study to be released in July 2001. Responsibly

4-11 NATIONAL ENERGY POLICY

 crafted CAFE standards should increase efficiency without negatively impacting the U.S. automotive industry.
The determination of future fuel economy standards must therefore be addressed analytically and based on
sound science.
• Consider passenger safety, economic concerns, and disparate impact on the U.S. versus foreign fleet of automo­
biles.
• Look at other market-based approaches to increasing the national average fuel economy of new motor vehicles.

★ The new NEPD Group recommends that the President direct the Secretary of Transportation to review and pro­
mote congestion mitigation technologies and strategies and work with Congress on legislation to implement these
strategies.

★ The NEPD Group recommends that the President direct the Secretary of the Treasury to work with Congress on
legislation to increase energy efficiency with a tax credit for fuel-efficient vehicles. The NEPD Group recommends
that a temporary, efficiency-based income tax credit be available for purchase of new hybrid fuel cell vehicles be­
tween 2002 and 2007.

★ The NEPD Group recommends that the President direct all agencies to use technological advances to better pro­
tect our environment.
• The Administration remains committed to investing in Intelligent Transportation Systems (ITS) and encour­
ages the private sector to invest in ITS applications. This Department of Transportation (DOT) program funds
the development of improved transportation infrastructure that will reduce congestion, such as traveler infor­
mation/navigation systems, freeway management, and electronic toll collection. ITS applications reduce fuel
associated with travel.
• The Administration remains committed to the DOT’s fuel-cell-powered transit bus program, authored by the
Transportation Equity Act for the 21st Century (TEA-21). This program demonstrates the viability of fuel-cell
power plants for transit bus applications.
• The Administration remains committed to the Clean Buses program. TEA-21 establishes a new clean fuel for­
mula grant program, which provides an opportunity to accelerate the introduction of advanced bus propulsion
technologies into the mainstream of the nation’s transit fleet.

★ The NEPD Group recommends that the President direct the EPA and DOT to develop ways to reduce demand for
petroleum transportation fuels by working with the trucking industry to establish a program to reduce emissions and
fuel consumption from long-haul trucks at truck stops by implementing alternatives to idling, such as electrification
and auxiliary power units at truck stops along interstate highways. EPA and DOT will develop partnership agree­
ments with trucking fleets, truck stops, and manufacturers of idle-reducing technologies (e.g., portable auxiliary
packs, electrification) to install and use low-emission-idling technologies.

★ The NEPD Group recommends that the President direct the Secretary of Energy to establish a national priority
for improving energy efficiency. The priority would be to improve the energy intensity of the U.S. economy as mea­
sured by the amount of energy required for each dollar of economic productivity. This increased efficiency should be
pursued through the combined efforts of industry, consumers, and federal, state, and local governments.

★ The NEPD Group recommends that the President direct the EPA Administrator to develop and implement a strat­
egy to increase public awareness of the sizable savings that energy efficiency offers to homeowners across the coun­
try. Typical homeowners can save about 30 percent (about $400) a year on their home energy bill by using Energy
Star-labeled products.

Chapter 4 • Using Energy Wisely: Increasing Energy Conservation and Efficiency 4-12