Position: FAVORABLE
Energy efficiency can be designed into new products and equipment as they enter the marketplace. When energy-saving features cost less than the energy they save, everybody wins -- the manufacturer, the consumer, and the environment.
The energy efficiency of several products (i.e., cars, refrigerators) is regulated exclusively by the federal government, but states are free to establish efficiency standards for most other products.
Maryland has been a leader among the states, enacting the first wave of efficiency standards for a number of products in 2004 over the veto of Governor Ehrlich. The following year the federal government enacted Maryland’s standards nationwide, clearly demonstrating how statewide policy can drive national policy.
Energy efficiency technology is constantly advancing and the time has come for Maryland to pass the next wave of efficiency standards.
SB 674 contains efficiency standards for 9 types of new products sold or installed in the state. While the up-front cost of more efficient appliances may be higher than less efficient models, the energy savings pay for the difference early in the life of the product. In fact, by 2020, consumers will save $171 million in energy use if this bill is passed.
Maryland would be the first state to pass standards for all 9 products included in this bill, but the individual appliance standards have all been passed in other states. In fact, California, the world’s sixth largest economy, has passed standards for all of the products except gas furnaces, so availability shortages for the energy efficient products are unlikely.
SB 674 also sets a requirement for the Public Service Commission to adopt a rule to ensure that electric utilities will purchase more efficient liquid-immersed distribution transformers. Transformers reduce electricity voltage from the high levels at which power is sent over utility transmission lines to the lower voltage levels required to power equipment and machinery. Transformers often last 30-40 years and by requiring utilities to use life-cycle cost rather than up-front cost in their purchasing, less energy will be lost and Maryland consumers will save over $17 million by 2020.
Furthermore, SB 674 gives the Maryland Energy Administration authority to adopt regulations to establish minimum energy efficiency standards for new products sold in the State. This provision eliminates the need to pass new legislation each time advances in technology warrant an adjustment in appliance standards.
If enacted, this bill will reduce peak summer electric use by over 150 megawatts in 2020 and save consumers over $170 million dollars in energy costs. The electricity saved in 2020 alone will be enough to meet the needs of over 75,000 typical Maryland households.
In light of the savings to consumers and the reduced demand on our strained electric system, Maryland PIRG urges the committee to issue a favorable report on SB 674.
