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Colorado Passes, Arizona Moves Ahead with Appliance
Efficiency Standards May 23, 2005
Colorado Governor Bill Owens vetoed House Bill (HB)
1162 on April 28 that would have established minimum energy efficiency
performance for 14 consumer products for which there are no federal
standards. These standards are in place in two states, and Arizona and
Washington adopted them this year (see below).
In his veto message Governor Owens said he did not
want to be responsible for increasing the initial cost of these items
for consumers. (The initial purchase price is usually higher for
energy-efficient products, which of course, pays back in energy
savings over the lifetime of the product.) He said the economy is
becoming more energy efficient and market forces, not government
actions, will best serve efficiency goals. See the governor’s veto
message.
http://www.colorado.gov/governor/press/april05/hb1162.html
The Southwest Energy Efficiency Project (SWEEP) in
Boulder, which was one of the bill’s proponents, responded in writing
to the governor’s veto. Noting that efficiency standards are precisely
the cause of much of the economy’s recent gains in efficiency, SWEEP
characterized it shortsighted to only consider initial cost and not
the total cost of operating appliances over their lifetimes. SWEEP
noted that every home or commercial building constructed in the United
States must already meet some type of state or local energy
performance standard. And every year consumers buy hundreds of
millions of products that meet energy efficiency standards to their
benefit and with no harm to industry. See SWEEP’s May 3 response to
the governor’s veto message (PDF 99 KB).
http://www.swenergy.org/legislative/colorado/Response%20to%20Owens%20Veto.pdf
While Owens punts on appliance efficiency, recent
legislation in New Mexico and Arizona addresses the energy equation
from both sides of supply and demand. In New Mexico, Governor Bill
Richardson signed the Efficient Use of Energy Act into law on April 5,
which requires utilities to establish programs that reduce energy
consumption. These programs must be shown to be cost effective by
passing a “Total Resource Cost” test that looks at all costs of
consumption, not just initial costs of equipment. See SWEEP’s fact
sheet on the bill (PDF 61 KB).
http://www.swenergy.org/legislative/newmexico/HB%200619%20Fact%20Sheet.pdf
Meanwhile, Arizona Governor Janet Napolitano signed
House Bill (HB) 2390 on April 25, which establishes energy efficiency
standards for 12 products beginning in 2008. In fact, these standards
are the same as those that Owens vetoed for Colorado.
SWEEP estimates the new standards will save
businesses and consumers in Arizona over $650 million and reduce water
consumption by 15 billion gallons between 2008 and 2020. The standards
passed with overwhelming and bipartisan support in the Arizona
legislature, several business groups and utilities, and enthusiastic
support from the governor. See SWEEP’s fact sheet for this bill (PDF
121 KB).
http://www.swenergy.org/legislative/arizona/HB%202390%20Fact%20Sheet.pdf
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