Skip to main content

Energy Efficiency Standards Could Save Bay State Over $2.6 Billion

Massachusetts businesses and consumers could save over $2.6 billion in retail energy and dramatically reduce harmful air emissions if the state were to enact minimum energy efficiency standards for 15 available residential and commercial products, according to a new report.

Massachusetts businesses and consumers could save over $2.6 billion in retail energy and dramatically reduce harmful air emissions if the state were to enact minimum energy efficiency standards for 15 available residential and commercial products, according to a new report.

The report, titled “Energy Efficiency Standards: A Low-Cost, High Leverage Policy for Northeast States,” was co-authored by Northeast Energy Efficiency Partnerships Inc. of Lexington and the Appliance Standards Awareness Project of Boston. Joining those groups to make today's announcement were several supporters of the standards project, including the Massachusetts Public Interest Research Group, Environment Northeast and National Grid, the parent company of Massachusetts Electric Co. and Nantucket Electric Co., which serve 1.2 million customers in 169 Bay State communities.

Among the businesses supporting the enactment of minimum energy efficiency standards is Harmony Lighting of Hingham, Mass., which distributes energy-efficient torchiere lamps, one of the 15 products identified in the standards report. Compared to a conventional halogen torchiere lamp, which uses approximately 300 watts of electricity, the Harmony Lighting torchiere lamps use as little as 58 watts of electricity, while giving off the same amount of light, according to Jim Ouellette, president and CEO of Harmony Lighting. Based upon average electricity costs, a Harmony Light torchiere lamp can save some $33 per year in operating costs, and pay for itself in approximately seven months.

"When we talk about minimum energy efficiency standards, we're not talking about products that are still in development; we're talking about products that are available today, providing consumers with considerable savings," explained Jim O'Reilly of Northeast Energy Efficiency Partnerships. "By enacting minimum efficiency standards, Massachusetts will help bring those savings to all of its businesses and consumers."

Further, noted Tim Stout, Director of Energy Efficiency Services for National Grid, minimum energy efficiency standards will help ensure the reliability of the state's energy supply by lowering energy use.

"We see energy efficiency standards as an important part of ensuring the delivery of electricity to this region," Stout said. "Standards will `lock in' the progress that has been made in energy efficiency programs over the last decade, helping to reduce peak demand and to maintain a reliable, dependable energy delivery system."

And, by virtue of the need to generate less energy, fewer harmful chemicals -- such as carbon dioxide, nitrogen oxides and sulfur dioxides -- will be emitted by coal- and oil-fired power plants, helping to slow global warming and improve air quality, explained Frank Gorke of MASSPIRG.

"Much of our state's over-consumption of energy is the result of unnecessary waste," noted Gorke. "This report shows that by adopting easily achievable standards based on these products that are currently on the market today, we can save consumers billions of dollars, improve the reliability of our electric system, and get significant reductions in harmful air emissions. It is the smartest, cheapest, fastest and cleanest step we can take."

Carbon dioxide is a greenhouse gas that contributes to global warming; nitrogen oxides, when they interact with sunlight, produce ground level ozone smog, which is harmful when inhaled; and sulfur dioxide both produces acid rain and contributes to respiratory and cardiovascular disease, explained Daniel L. Sosland, Executive Director and Senior Counsel of Environment Northeast, and a NEEP Board member. "By enacting minimum energy efficiency standards, Massachusetts will not only save itself considerable money, but improve the air quality as well," Sosland said.

If Massachusetts were to enact minimum energy efficiency standards for the identified residential and commercial use products, the state would by 2020:
  • Conserve nearly 41 trillion BTUs of energy - equal to the annual energy use of over 8% of the state's households in 2000.
  • Save consumers and businesses some $ 2.6 billion, which is equal to more than 25% of state personal and corporate income tax collections for the year 2000.
  • Reduce the projected growth in peak energy demand by 1,123 megawatts.
  • Reduce carbon emissions by 545,000 metric tons.
  • Reduce emissions of nitrogen oxides by 614 metric tons (equal to 12% of the 2000 emissions from the Salem Harbor power plant) and of sulfur dioxide by 1,800 metric tons (equal to 10% of the 2000 emissions from the Salem Harbor plant).
Following the prompting of several states throughout the 1970s and `80s, federal energy efficiency standards were established in 1987 through the National Appliance Energy Conservation Act. In the years since, however, the federal standards program has failed to keep up with technological progress and the development of many energy-saving products, missing the opportunity for energy savings to be attained through updated standards, O'Reilly explained. With recent volatile world events, and a need to achieve independence from foreign energy sources, "Energy policy is prominent once again, and enacting minimum energy efficiency standards can help Massachusetts lead the way," he said.

Included among the residential product types identified in the report are: central air conditioners and heat pumps; ceiling fans; consumer electronics; furnace fans; and torchiere lamps. Included among the commercial product types identified in the report are: beverage vending machines; building voltage transformers; coin-operated clothes washers; exit signs; ice makers; packaged air conditioners and heat pumps; refrigerators and freezers; traffic signals; and unit and duct heaters.

"Most consumers don't realize how much electricity these appliances use," commented Deirdre Manning, Commissioner of the Massachusetts Department of Telecommunications and Energy. "Buying energy efficient products will save consumers money and the widespread use of these products will help avoid the need to build more power plants."

In addition to identifying the economic, energy and environmental savings available through minimum efficiency standards, the report also recommends that Massachusetts:
  • Adopt a set of standards for ten of the identified products types -- none of which is preempted by federal law - either through legislation or administrative proceedings.
  • Upgrade Massachusetts's commercial building energy code to apply the standards to products that are installed during construction (e.g., exit signs).
  • Establish state procurement specifications for targeted products.

More on this topic