Energy Subcommittee Discusses the Value of Energy Efficiency and Renewable Energy Investments at DOE
(Washington, DC) – Today, the Committee on Science, Space, and Technology’s Energy Subcommittee held a hearing to discuss the Department of Energy’s (DOE) work in energy efficiency and renewable energy. DOE’s Office of Energy Efficiency and Renewable Energy (EERE) conducts a wide range of research to accelerate the development of new clean energy technologies, and also plays a major role in setting efficiency standards for buildings and appliances. The Assistant Secretary for EERE, Dr. David Danielson, testified before the subcommittee.
Ranking Member Alan Grayson (D-FL) of the Energy Subcommittee said in his opening statement, “Every year, for the past two generations, energy imports have cost us hundreds of billions of dollars. Unfortunately, there are also massive hidden costs that aren’t reflected in the prices Americans actually pay for energy. One recent study estimates that the U.S. has spent about $8 trillion from 1976 through 2010, merely defending access to oil supplies in the Persian Gulf. Not producing, not acquiring, not transporting – but defending access to oil. That’s $25,000 for every man, woman, and child in America. Continuing to pursue a business-as-usual energy portfolio clearly costs not only American dollars, but American lives.”
He continued, “The renewable energy sector has benefited immensely from EERE-supported research and development. Since 2010, photovoltaic system costs have been cut in half. DOE’s SunShot program, which has the goal of making solar energy cost-competitive with conventional sources by 2020, is already more than 60% of the way to achieving its cost target.
“Efficiency standards enacted by the Department of Energy since 2009 are projected to save consumers hundreds of billions of dollars in their utility bills through 2030, and EERE-supported research in advanced lighting technology has helped reduce LED costs by 90% since 2008.
“Overall, third-party evaluators estimate that from 1976 to 2008, EERE investments of $15 billion have resulted in an estimated economic benefit to the United States of $388 billion—a net return of more than 24 to 1. That is an impressive track record, and it is one we should continue to support.”
In his written testimony, Dr. Danielson said, “The United States has world-class innovation capacity, a unique culture of entrepreneurship, well-developed capital markets, and the finest scientists, engineers, and workers in the world. However, despite this tremendous opportunity, the U.S. energy industry is systematically underinvesting in research and development. Furthermore, the U.S. is investing significantly less in clean energy, on a percentage of GDP basis, compared to major trading competitors like China and Japan by a factor of nearly three.”
Democratic Members voiced support for continued, robust investments in EERE. Specifically, the Democrats highlighted the work of EERE in advancing the development of batteries, electric cars, and wind turbines among other technologies. There was also discussion of the value of diversifying the energy sources powering the electric grid. And in response to questions from Democratic Members, there was broad acknowledgement from the panel that externalities like pollution are often not reflected in the price that consumers pay for fuel and electricity, and thus the energy market is not really a “free” market and never has been.
Ranking Member Eddie Bernice Johnson (D-TX) said in her prepared statement, “Renewable energy plays a critical role in the future of our country. I would like to remind my colleagues that we have seen how government-supported research can pay off when it comes to energy development.”
She continued, “If DOE’s proposed budget is adopted, EERE would receive a much-needed boost. Beyond SunShot, the geothermal and marine energy research programs would establish important new test sites to help advance next generation technologies, and the Department’s important advanced manufacturing program would expand considerably.”
The subcommittee also heard testimony from several witnesses from outside organizations including Ms. Ruth McCormick from the Business Council for Sustainable Energy, Mr. Nick Loris from the Heritage Foundation, and Dr. Veronique de Rugy from the Mercatus Center at George Mason University.
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