[Congressional Record Volume 147, Number 22 (Thursday, February 15, 2001)]
[Senate]
[Pages S1493-S1495]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BINGAMAN (for himself, Mr. Daschle, Mr. Leahy, Mr. Dorgan, 
        Mr. Kennedy, Ms. Mikulski, Mr. Levin, Mr. Dodd, Mr. Schumer, 
        Mr. Breaux, Mr. Durbin, Mr. Kerry, Mr. Dayton, Ms. Cantwell, 
        Mr. Corzine, Mrs. Clinton, Mr. Reid, Mr. Akaka, Mrs. Carnahan, 
        Mr. Johnson, Mr. Conrad, Mr. Wellstone, Ms. Landrieu, Mr. Kohl, 
        Mr. Nelson of Nebraska, Mr. Reed, Mr. Lieberman, and Mr. Bayh):
  S. 352. A bill to increase the authorization of appropriations for 
low-income energy assistance, weatherization, and state energy 
conservation grant programs, to expand the sue of energy savings 
performance contracts, and for other purposes; to the Committee on 
Energy and Natural Resources.
  Mr. BINGAMAN. Mr. President, I rise today to introduce a bill to 
increase the authorization for low-income energy assistance, 
weatherization and state energy conservation grants and to increase the 
energy efficiency of federal facilities. I am offering this bill on 
behalf of myself, Senator Daschle, and many of my colleagues.
  Energy costs have been, and are expected, to remain especially high 
this year. We have had a long period of economic growth, enabled in 
part by extremely low oil and natural gas prices. But, we are finally 
experiencing the end of the excess capacity cushion that had kept the 
system functioning with low prices and relatively minor bumps along the 
way. Those extremely low oil and gas prices that consumers loved so 
much a few years ago devastated the domestic drilling industry. 
Drilling has recovered, so we will start seeing an impact on prices in 
the coming months as those supplies find their way to market.
  In the interim, unusually cold weather early in the winter has 
resulted in natural gas bills at least 70 percent-100 percent higher 
than last year. Heating oil and propane prices correlate closely with 
natural gas. Farmers, especially, are seeing huge increases in propane 
prices this winter and are looking at dramatically higher fertilizer 
prices this spring. Natural gas prices and tight generating capacity 
are driving up electricity prices around the country, and many people 
in the southern states with high air conditioning needs will be 
especially hard hit this summer.
  Applications for assistance have increased dramatically this year. 
Most states have already depleted the LIHEAP and Weatherization funds 
we appropriated for this year. Many states have laws prohibiting 
cutting off heating supplies during the winter, but when those 
prohibitions expire in March or April, the seriousness of the situation 
for low-income and working families will become harshly obvious. And 
assistance to low-income and working families for the summer cooling 
season will be impossible at current levels.
  Some will say we need to address these issues as part of some 
comprehensive energy bill, yet to be written. I disagree.
  We have immediate needs that cannot wait months, as we debate an 
ideal

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energy policy. The Administration has told us it will not even have its 
proposal to us for another two months. Individuals, families and small 
businesses are suffering today from energy bills they cannot pay. This 
bill authorizes changes to the LIHEAP program to help alleviate the 
financial burdens in the near term. The bill also focuses attention 
on investment in energy efficiency through the low income 
weatherization program, state conservation grants and the federal 
energy management program. This bill covers needed changes to existing 
authorizations. Next we need to ensure that full funding is forthcoming 
as soon as possible.

  Specifically, the base authorization for the Low-Income Home Energy 
Assistance Program to $3.4 billion for fiscal years 2001 to 2005. The 
base funding has been relatively flat at roughly $2 billion since the 
mid-1980's. This increase comes close to addressing the erosion in the 
program due to inflation, but does not take into consideration the 
increase in population.
  The bill provides states with additional flexibility on the income 
level for recipients, by increasing eligibility from 150 percent to 200 
percent of the poverty level. This change, which only applies for the 
remainder of this fiscal year, will give the states the flexibility to 
help working families.
  The bill also increases the authorization for the weatherization 
program to $310 million. The current appropriation is at $162 million, 
down from $300 million in the mid-1980s. The weatherization program is 
a long term investment in energy efficiency.
  A one-time investment in weatherization yields savings of $300-$470 
per household annually thereafter. The program requires trained staff, 
erratic and insufficient funding of the program has diminished its 
effectiveness in recent years. Increased energy efficiency is the least 
cost solution to meeting energy needs. Even at $310 million the program 
is still lower in real dollars than in the 1980's.
  The bill increases the authorization for grants to state energy 
programs to $75 million. This program funds state conservation and 
emergency planning. The low level of funding in recent years has 
diminished the states' ability to implement state level conservation 
plans and to plan for emergencies in coordination with the Department 
of Energy and neighboring states.
  Finally, Executive Order 13123 requires federal facilities to 
increase energy efficiency by 30 percent by 2005 and 35 percent by 2010 
relative to 1985. The Federal Energy Management Program requires 
federal facility managers to evaluate opportunities for energy and 
water efficiency improvements and opportunities for siting renewable 
projects. Federal agencies spend $4 billion per year to heat, coal and 
power facilities, we can and should do better.
  The bill includes several amendments to the program clarifying and 
enhancing the use of alternative financing tools to minimize the need 
for additional government outlays. The bill calls for a concerted 
effort by facility managers to meet those targets early, thereby saving 
taxpayer dollars, reducing stress on the power grid and demand for 
fuels.
  Companion measures, that I support, have been introduced by Senator 
Kerry, S. 295, Senator Feinstein, S. 286, to provide emergency loans to 
small businesses.
  There will be plenty of time in this Congress to consider the highly 
complex issues of U.S. energy supply and consumption. Senator Murkowski 
and I intend to proceed with a series of hearings to evaluate the 
different elements of our energy policy and systems. We need to focus 
on how we can ensure adequate fuel supplies and sufficient 
infrastructure to deliver those fuels, whether electricity, natural 
gas, or gasoline without degradation of environmental quality. We also 
need to look at issues of supply diversity and efficiency. Those 
efforts will require some time on the part of the Congress and the 
Administration, in consultation with the states and the various 
stakeholders.
  We should not allow that lengthy process, though, to prevent us from 
meeting clear and present needs. I urge my colleagues to support 
immediate passage of this bill and the small business bills.
  I ask unanimous consent that the text of this bill be printed in the 
Record.

                                 S. 352

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Energy Emergency Response 
     Act of 2001''.

     SEC. 2. FINDINGS AND PURPOSES.

       (a) Findings.--The Congress finds that--
       (1) high energy costs are causing hardship for families;
       (2) restructured energy markets have increased the need for 
     a higher and more consistent level of funding for low income 
     energy assistance programs;
       (3) conservation programs implemented by the States and the 
     low income weatherization program reduce costs and need for 
     additional energy supplies;
       (4) energy conservation is a cornerstone of national energy 
     security policy;
       (5) the Federal Government is the largest consumer of 
     energy in the economy of the United States;
       (6) many opportunities exist for significant energy cost 
     savings within the Federal Government.
       (b) Purposes.--The purposes of this Act are to provide 
     assistance to those individuals most affected by high energy 
     prices and to promote and accelerate energy conservation 
     investments in private and Federal facilities.

     SEC. 3. INCREASED FUNDING FOR LIHEAP, WEATHERIZATION AND 
                   STATE ENERGY GRANTS.

       (b) LIHEAP.--(1) Section 2602(b) of the Low-Income Home 
     Energy Assistance Act of 1981 (42 U.S.C. 8621(b)) is amended 
     by striking the first sentence and inserting the following: 
     ``These are authorized to be appropriated to carry out the 
     provisions of this title (other than section 2607A), 
     $3,400,000,000 for each of fiscal years 2001 through 2005.''.
       (2) Section 2605(b)(2) of the Low-Income Home Energy 
     Assistance Act of 1981 (42 U.S.C. 8624(b)(2)) is amended by 
     adding at the end the following:
       ``And except that during fiscal year 2001, a State may make 
     payments under this title to households with incomes up to 
     and including 200 percent of the poverty level for such 
     State;''.
       (b) Weatherization Assistance.--Section 422 of the Energy 
     Conservation and Production Act (42 U.S.C. 6872) is amended 
     by striking ``For fiscal years 1999 through 2003 such sums as 
     may be necessary'' and inserting: ``$310,000,000 for each of 
     fiscal years 2001 through 2005.''.
       (b) State Energy Conservation Grants.--Section 365(f) of 
     the Energy Policy and Conservation Act (42 U.S.C. 6325(f)) is 
     amended by striking ``for fiscal years 1999 through 2003 such 
     sums as may be necessary'' and inserting: ``$75,000,000 for 
     each of fiscal years 2001 through 2005''.

     SEC. 4. FEDERAL ENERGY MANAGEMENT REVIEWS.

       Section 543 of the National Energy Conservation Policy Act 
     (42 U.S.C. 8253) is amended by adding at the end the 
     following:
       (b) Priority Response Reviews.--Each agency shall--
       ``(1) not later than October 1, 2001, undertake a 
     comprehensive review of all practicable measures for--
       ``(A) increasing energy and water conservation, and
       ``(B) using renewable energy sources; and
       ``(2) not later than 180 days after completing the review, 
     implement measures to achieve not less than 50 percent of the 
     potential efficiency and renewable savings identified in the 
     review.''.

     SEC. 5. COST SAVINGS FROM REPLACEMENT FACILITIES.

       Section 801(a) of the National Energy Conservation Policy 
     Act (42 U.S.C. 8287(a)) is amended by adding at the end the 
     following:
       ``(3)(A) In the case of any energy savings contract or 
     energy savings performance contract providing for energy 
     savings through the construction and operation of one or more 
     buildings or facilities to replace one or more existing 
     buildings or facilities, benefits ancillary to the purpose of 
     such contract under paragraph (1) may include savings 
     resulting from reduced costs of operation and maintenance at 
     such replacement buildings or facilities being replaced.
       ``(B) Notwithstanding paragraph (2)(B), aggregate annual 
     payments by an agency under an energy savings contract or 
     energy savings performance contract referred to in 
     subparagraph (A) may take into account (through the 
     procedures developed pursuant to this section) savings 
     resulting from reduced costs of operation and maintenance 
     as described in subparagraph (A).''.

     SEC. 6. REPEAL OF ENERGY SAVINGS PERFORMANCE CONTRACT SUNSET.

       Section 801(c) of the National Energy Conservation Policy 
     Act (42 U.S.C. 8287(c)) is repealed.

     SEC. 7. ENERGY SAVINGS PERFORMANCE CONTRACT DEFINITIONS.

       (a) Energy Savings.--Section 804(2) of the National Energy 
     Conservation Policy Act (42 U.S.C. 8287c(2)) is amended to 
     read as follows:
       ``(2) the term `energy savings' means a reduction in the 
     cost of energy or water, from a base cost established through 
     a methodology set forth in the contract, used in either--
       ``(A) an existing federally owned building or buildings or 
     other federally owned facilities as a result of--
       ``(i) the lease or purchase of operating equipment, 
     improvements, altered operation and maintenance, or technical 
     services;

[[Page S1495]]

       ``(ii) the increased efficient use of existing energy 
     sources by congeneration or heat recovery, excluding any 
     cogeneration process for other than a federally owned 
     building or buildings or other federally owned facilities; or
       ``(iii) the increased efficient use of existing water 
     sources; or ``(B) a replacement facility under section 
     801(a)(3).''.
       (b) Energy Savings Contract.--Section 804(3) of the 
     National Energy Conservation Policy Act (42 U.S.C. 8287c(3)) 
     is amended to read as follows:
       ``The terms `energy savings contract' and `energy savings 
     performance contract' mean a contract which provides for--
       ``(A) the performance of services for the design, 
     acquisition, installation, testing, operations, and, where 
     appropriate, maintenance and repair, of an identified energy 
     or water conservation measure or series of measures at one or 
     more locations; or
       ``(B) energy savings through the construction and operation 
     of one or more buildings or facilities to replace one or more 
     existing buildings or facilities.''.
       (c) Energy or Water Conservation Measure.--Section 804(4) 
     of the National Energy Conservation Policy Act (42 U.S.C. 
     8287c(4) is amended to read as follows:
       ``The term `energy or water conservation measure' means--
       ``(A) an energy conservation measure, as defined in section 
     551(4) (42 U.S.C. 8459(4)); or
       ``(B) a water conservation measure that improves water 
     efficiency, is life cycle cost effective, and involves water 
     conservation, water recycling or reuse, improvements in 
     operation or maintenance efficiencies, retrofit activities or 
     other related activities, not at a Federal hydroelectric 
     facility.''.

  Ms. CANTWELL. Mr. President, I am pleased to cosponsor the Energy 
Emergency Response Act of 2001, which will help low-income residents 
cope with high energy costs brought on by the crisis in California. I 
thank Senator Bingaman and others on the Committee on Energy and 
Natural Resources for their leadership in preparing this valuable 
legislation. The current crisis in energy supply and costs is a crucial 
and immediate problem for the people of Washington state. I am working 
on several fronts to help alleviate these effects.
  The Energy Emergency Response Act of 2001 authorizes increased 
funding for the Low-Income Home Energy Assistance Program, LIHEAP. The 
program is a lifeline to many of our most vulnerable people, providing 
direct assistance to eligible households to pay for home energy. 
Because of the energy crisis, applications for LIHEAP assistance in 
Washington state have increased by more than 50 percent this year. We 
need to bolster the program, or it will fall short at a time when low-
income people need it the most.
  This bill also authorizes increased funding for the Weatherization 
Program that provides insulation for Washington state homes, educates 
families on energy conservation, tests furnaces and ovens for safety 
and efficiency, and makes homes safer and healthier places to live. An 
average household saves 20 percent in fuel and energy costs every year 
as a result of participating in the Weatherization program. In these 
times of soaring energy costs, those savings are especially important. 
That is why this bill authorizes increased funding and raises the 
eligibility to 200 percent of the poverty level.
  The bill requires Federal facility managers to evaluate opportunities 
to increase efficiency of energy and water use and installation of 
renewable energy projects at federal facilities. It also requires that 
the evaluation period be followed by implementation of energy and water 
savings within the 180 days.
  Energy Savings Performance Contract usage is enhanced by this bill. 
These are innovative financing methods that leverage private sector 
investment and expertise to accomplish energy savings and cost savings 
in federal facilities. The bill amends the Federal Energy Management 
Program to include savings realized from operation and maintenance 
efficiencies.
  This bill also authorizes a total of $75 million for state energy 
conservation. This is for energy efficiency and emergency planning at 
the state level. The bill also clarifies the definition of energy 
savings to include water conservation, excluding Federal hydroelectric 
facilities.
  We are going to push for the funding of this bill to be appropriated 
through a special supplemental appropriation for 2001, adding $1 
billion to base funding for LIHEAP, $152 million for weatherization, 
and $37 million for state energy conservation grants. We will also 
attempt to get forward funding for LIHEAP for 2002.
  I will be working with the Washington State delegation, Senator 
Bingaman, and the Energy and Natural Resources Committee to move this 
bill and to push for funding as soon as possible. The energy crisis 
will not be resolved easily, but we can and should make this investment 
a part of our overall response to this issue. I urge my colleagues to 
move quickly on this legislation, and I hope that the President will 
make LIHEAP a priority in his upcoming budget.
                                 ______