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City Conference – Federal Energy Update Rob Mosher – Director of Government Relations

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NLC: Congressional City Conference – Federal Energy Update Rob Mosher –

Director of Government Relations

Political Analysis

Current Political Climate Partisan gridlock

• Even lower approval ratings

• Presidential/congressional election cycle politics Focus on jobs/economic impacts, broad tax reform &

austerity/spending cuts

• Fallout of Payroll Tax deduction talks & Keystone pipeline decision

Further attacks on regulatory implementation & federal programs (loan guarantees & EERE appropriations)

No appetite for comprehensive energy packages

• Window to legislate on smaller energy efficiency measures

Retiring Members in the 112th CongressHouse of Representatives House of Representatives (cont.)

Rep. Burton (R-IN) Rep. Kildee (D-MI)

Rep. Ross (D-AR) Rep. Myrick (R-NC)

Rep. Miller (D-NC) Rep. Dreier (R-CA)

Rep. Woolsey (D-CA) Rep. Dicks (D-WA)

Rep. Boren (D-OK)

Rep. Hinchey (D-NY) SenateRep. Platts (R-NY) Sen. Bingaman (D-NM)

Rep. Lewis (R-CA) Sen. Conrad (D-ND)

Rep. Herger (R-CA) Sen. Akaka (D-HI)

Rep. Gallegly (R-CA) Sen. Lieberman (I-CT)

Rep. Austria (R-OH) Sen. Kohl (D-WI

Rep. Davis (R-KY) Sen. Webb (D-VA)

Rep. Frank (D-MA) Sen. Nelson (D-NE)

Rep. Gonzalez (D-TX) Sen. Kyl (R-AZ)

Rep. Olver (D-NA) Sen. Hutchison (R-TX)

Rep. Cardoza (D-CA) Sen. Snowe (R-ME)

Rep. Costello (D-IL)

Rep. Shuler (D-NC)

Members Departing the 112th CongressRunning for Senate

Running for Governor

Running for President

Running for Mayor

Resigned

Rep. Mack (R-FL) Rep. Inslee (D-WA) Rep. Paul (R-TX) Rep. Filner (D-CA) Rep. Wu (D-OR)

Rep. Flake (R-AZ) Rep. Pence (R-IN) Rep. Giffords (D-AZ)

Rep. Baldwin (D-WI) Rep. Weiner (D-NY)

Rep. Donnelly (D-IN) Rep. Lee (R-NY)

Rep. Berkeley (D-NV) Rep. Harman (D-CA)

Rep. Hirono (D-HI) Sen. Ensign (R-NV)

Rep. Akin (R-MO)

Rep. Berg (R-ND)

Rep. Heinrich (D-NM)

Rep. Rehberg (R-MT)

Rep. Murphy (D-CT)

Energy Efficiency Legislation

Proposals in the 112th Congress Shaheen-Portman (S. 1000) Bass-Matheson (H.R. 4017) INCAAA (S. 398) PACE Protection Act (H.R. 2599) SAVE Act (S. 1737) e-KNOW (S. 1029)

Efficiency Tax Incentives

Efficiency Tax Incentives Expired tax credits:- Home improvements consumer credit (25C)- Appliance manufacturer credit (45M)- New homes builder credit (45L)- Alternative fuel vehicle refueling property credit (30C)- Higher exclusion from income for mass transit benefits

(132 (f)) Expiring tax credits:- Commercial building deduction (179D) available

through 2013

Legislative Proposals Cut Energy Bills at Home Act (S. 1914)

- Provide performance based tax credit for residential whole-home energy consumption.

Roofing Efficiency Jobs Act (H.R. 2962/S.1575) - Accelerate depreciation for new roofs with cool roof coatings good insulation.

Efficiency Appropriations

Fiscal Year (FY) 2013 Appropriations - EEREProgram FY 2011

FinalAllocation

FY 2012 Final Allocation

Change from FY 2011 to FY 2012

President’s FY 2013 Request

Building Technologies

$210.5 M $220 M 5% $310 M

Vehicle Technologies

$300 M $330 M 10% $420 M

Advanced Manufacturing

$108.241 M $116 M 7% $290 M

Federal Energy Management

$ 30.402 M $30 M -1% $32 M

Weatherization $174.3 M $65 M -63% $139 M

State Energy Program

$50 M $50 M 0% $49 M

Total Above $873.443 M $811 M -7% $1.24 B

Total EERE $1.825 B $1.825 B 0% $2.3 B

FY 2013 + Super Committee Sequestration Debt ceiling budget deal cut domestic programs 8%

in 2012 & 11% in 2013 (from baseline) Sequester (in lieu of Super Committee savings) to cut

$1.2 trillion from the budget for 2013-2021- $109 billion/year split evenly between defense &

non-defense- Cuts domestic programs an additional 8% in 2013

Overall cut is 18% from baseline or about 10% from FY 2012 level

What’s possible the remainder of 112th Congress? FY 2013 budget & appropriations Senate floor consideration of energy package E&C action on Bass/Matheson efficiency bill Rollbacks: BULB Act, riders Hearing on Bingaman’s CES bill Introduction of the HOMES Act Extension of tax incentives Transportation bill Farm bill Fannie Mae/Freddie Mac reform

Thank You!Rob Mosher

Email: [email protected]

Phone: (202) 857-0666