[Congressional Record Volume 155, Number 123 (Friday, August 7, 2009)]
[Senate]
[Page S9075]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             EXPAND BUILDING ENERGY EFFICIENCY ACT OF 2009

  Ms. SNOWE. Mr. President, I rise to speak about legislation that I 
introduced, the Expanding Building Efficiency Incentives Act of 2009, 
which would expand the tax incentives for building and put our country 
on course to reduce energy consumption in a sector that currently 
consumes 40 percent of our total energy. I am pleased to have worked 
with Senator Feinstein and Bingaman, two longtime leaders on energy 
efficiency, on this proposal and look forward to discussing this bill 
with my Finance Committee colleagues.
  One inexcusable legacy of this housing crisis is that the vast 
majority of homes constructed over the last 10 years during the housing 
boon have been inefficient. While an inefficient vehicle purchased 
today may guzzle gasoline for an average of 10 years, an inefficient 
building will require elevated levels of energy for as long as 50 
years. Therefore, whenever we create inefficient buildings, generations 
to come will be saddled with our wasteful energy decisions. Last week 
McKinsey and Company in a report, ``Unlocking Energy Efficiency in the 
US Economy,'' concluded that a major investment in energy efficiency 
could save $1.2 trillion and cut consumption 23 percent by 2020. This 
legislation serves as a cornerstone to realizing these opportunities.
  The Expanding Building Efficiency Incentives Act builds on current 
tax incentives that have worked to move the market toward energy 
efficiency. While the marginal costs of constructing an energy-
efficient building may be higher than an inefficient building, the 
long-term energy savings have environmental and energy dividends, as 
well as ultimate cost savings. These tax incentives provide an 
incentive to correct this market failure and obtain these long-term 
benefits.
  Specifically, the bill includes an extension of the current energy-
efficient new homes tax credit for 3 years, which requires new homes to 
be 50 percent better than current code with respect to heating and 
cooling. In addition, this bill will create a new tier for a $5,000 tax 
credit if a building consumes 50 percent less total energy than a 
comparable building. The current tax credit system for new homes has 
been very successful. According to the Residential Energy Services 
Network, 4.6 percent of all new homes met these rigorous standards in 
2008, which adds up to nearly 22,000 homes being at the cutting edge of 
energy efficiency. This tax credit is working and not only should we 
extend this tax credit, but we must build on this to encompass 
additional energy consumption in a new home.
  In addition, the bill would provide a $500 tax credit for individuals 
to become professional energy auditors, experts that can reduce our 
country's demand for oil, reduce carbon emissions, and save our 
struggling families money on their energy bills. In addition, a $200 
tax credit is established for homeowners to hire these professional 
energy auditors and analyze the deficiencies of an existing home and 
propose investments that will save the taxpayer money. As we move 
forward with dedicating significant resources to energy efficiency in 
this legislation it is critical that we ensure that this funding is 
utilized effectively by a professional energy efficiency industry and 
this amendment will accomplish this critical goal.
  Finally, the amendment increases the tax credit for energy-efficient 
commercial buildings by increasing the deduction from $1.80 cents per 
square foot to $3.00 per square foot. The original version of the 
commercial buildings tax deduction as passed by the Senate set the 
deduction to $2.25 per square foot, with the critical support of the 
current Finance chairman and ranking member. Adjusting for inflation, 
this corresponds to $3.00 per square foot today with partial compliance 
increased to $1.00 per square foot. These changes would return the 
deduction to viability as it was originally designed and ensure that 
commercial building developers are provided an adequate incentive to 
pursue energy efficiency.
  Earlier this year, a New York Times editorial pointed out that we are 
an extremely energy inefficient economy--the 76th best country in the 
world. This must change if we are to retain our leadership in this 
world, and I look forward to working with my colleagues to improve our 
ranking and increase our country's energy efficiency.

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