Senators Dianne Feinstein and Bob Smith
Introduce Legislation to Increase Energy Efficiency

Washington, DC - U.S. Senators Dianne Feinstein (D-Calif.) and Bob Smith (R-NH) introduced legislation last night that would provide tax incentives to encourage the production and sale of technologically advanced, energy-efficient buildings and equipment.

"One key to solving the energy crisis in California is to increase power supplies and reduce demand." Senator Feinstein said. "This legislation is designed to address the demand side of the equation. It creates economic incentives for business owners to make their properties more efficient. It is my hope that the Senate will take up this legislation quickly and begin the process of reducing the demand for energy in the State."

Specifically, the Energy Efficient Building Incentives Act would promote the creation of competitive markets for new technologies and designs that are not widely available but are, or would be, cost effective to the consumer.

The bill's incentives would apply to efficient residential, commercial and public buildings which save 30 percent to 50 percent of energy costs compared to national model codes. Efficient heating, cooling and water heating equipment can reduce emissions and peak electric loads by about 20 percent and 30 percent to 50 percent compared to national standards.

Buildings account for 35 percent of air pollution emissions nationwide, and cost their owners over $300 billion a year in energy costs. They also contribute to well over half of peak electric power demand. The incentives in the legislation would begin to lessen electric peak reliability problems by the summer of 2002.

###