The Virtual Office of Congresswoman Jane Harman

HARMAN AND ROGERS INTRODUCE BIPARTISAN BILL TO PROVIDE INCENTIVES TO TRADE-IN INEFFICIENT “CLUNKER” APPLIANCES

Bill to be included in draft clean energy legislation

March 31, 2009

Washington, D.C. – Reps. Jane Harman (D-CA) and Mike Rogers (R-MI), members of the Energy and Commerce Committee, introduced bipartisan legislation that will help Americans replace their older, energy-wasting washing machines, refrigerators and other household appliances with newer, super-efficient versions, while providing incentives to manufacturers and retailers to develop and market more efficient appliances.  Their legislation will be included “as is” in Section 214 of the discussion draft of the House’s comprehensive clean energy bill.    

“Removing ‘clunkers’ from circulation will go a long way toward cutting energy consumption and reducing greenhouse gas emissions,” said Harman.  “This legislation -- the product of extensive discussions between leading environmental groups, manufacturers and retailers -- will result in massive savings.”

“Energy efficiency is one of the best ways for every American family to save money and to use less electricity.  Our legislation is an important step toward a modern, smart, energy efficient future,” said Rogers.

HR 1786 tasks the DOE with creating a “Best-in-Class” appliance program to provide “bonuses” to retailers for every Best-in-Class product sold (defined as the top 10% of models in the product class, in terms of efficiency), and to manufacturers that mass produce Best-in-Class appliances. 

“At a time when Americans are looking to reduce their energy costs, this legislation will make it easier for manufacturers and retailers to sell smarter, cleaner, and cheaper appliances,” said Jim Presswood, Federal Energy Policy Director for NRDC. “Offering business incentives to make super efficient appliances will decrease our nation’s global warming pollution as well as people’s electricity bills. Congresswoman Harman is a recognized leader for her dedication to halting global warming, and this bill will benefit both the planet and American consumers.”

According to the Department of Energy (DOE), appliances are currently responsible for about 20% of energy bills in a typical household.  Many of these “clunkers” are the products of another era – manufactured years (sometimes decades) ago, when technology was antiquated and efficiency a low priority. 

Retailers who participate in the program must provide a government-funded “bounty” (a reduction in price for a new, more efficient appliance) to consumers who surrender old appliances.  Experience shows that many consumers hoard “clunkers” – perhaps moving them from the kitchen to the basement – eliminating the potential energy savings resulting from the purchase of a newer appliance.  This trade-in feature will help take these old appliances completely out of circulation, substantially accelerating our transition to an energy-efficient economy. 
 
In 2007, Harman introduced bipartisan, bicameral legislation – which became law as part of the Energy Independence and Security Act – that bans the famously inefficient 100-watt incandescent light bulb by 2012, phases out remaining inefficient light bulbs by 2014, and requires that light bulbs be at least three times as efficient as today’s 100-watt incandescent bulb by 2020.  The Alliance to Save Energy estimates that the 2007 provisions will eventually save $18 billion in energy costs every year, and prevent the emission of 100 million tons of carbon dioxide annually by 2030 – the equivalent of taking 20 million cars off the road.

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