Pallone Blasts Republican Resolution Gutting Efficiency Standards and Raising Americans’ Energy Bills

Washington, D.C. – Energy and Commerce Committee Ranking Member Frank Pallone, Jr. (D-NJ) delivered the following remarks on the House floor today in opposition to H.J. Res. 20, a resolution that invokes the Congressional Review Act (CRA) to gut a Department of Energy (DOE) efficiency rule on gas instantaneous, or tankless, water heaters:

Thank you Mr. Speaker, I yield myself as much time as I may consume.

I rise in strong opposition to H.J. Res. 20, the second Republican resolution in two days that will raise energy prices on Americans. This harmful resolution guts a Department of Energy efficiency rule on gas instantaneous, or tankless, water heaters.

Energy efficiency standards – like the one Republicans are going after today – are a popular, commonsense tool to save Americans money on their energy bills. President Trump ran on a promise to cut energy costs in half in his first year, but now Republicans and their billionaire friends are only making themselves richer while sending Americans’ utility bills through the roof.  

Unfortunately, I guess it should not come as a surprise considering earlier this week Republicans moved forward with a budget that includes devastating cuts to Medicaid and food assistance for our kids, our seniors, and our veterans, all so Republicans can give tax breaks to their billionaire buddies.

Let me start off by dispelling a few myths about the water heater standards targeted by this resolution.

First, these standards do not ban gas water heaters. Regardless of what the right-wing media and fossil fuel groups say, DOE cannot ban appliances based on their fuel type.

Second, these standards do not remove consumer choice. American families can still walk into a store, pick out a gas tankless water heater, and have it installed in their homes. In fact, these standards preserve consumer choice. They ensure that all products on the market meet a certain level of energy efficiency, so consumers can shop with confidence.

The standards impact less than 10 percent of the gas water heater market. And right now 60 percent of all models on the market already meet these standards. This isn’t an effort to pull products from shelves – instead it is an effort to raise the quality of products on the shelves.

Third, and most importantly, these standards do not increase costs for consumers. They reduce total costs over the life of a water heater and save $3.1 billion for consumers over 30 years. They are also projected to reduce carbon dioxide emissions by 32 million metric tons over 30 years. So, to summarize, these standards allow gas tankless water heaters to stay on the market, they preserve consumer choice, and they lower costs for Americans and reduce emissions.

It’s no wonder that these efficiency standards are supported by consumer advocates and American manufacturers, who want to preserve the standards.

The Republican resolution before us today completely nullifies these energy efficiency standards. It steals $3.1 billion in savings from Americans. And because it’s a Congressional Review Act resolution, it goes one step further and prevents DOE from ever issuing substantially similar standards in the future.

Why are Republicans pursuing something that’s bad for consumers? Because it’s good for the gas industry. The American Gas Association and foreign manufacturers are on the side of this Republican resolution that will terminate the standards. Why? Because inefficient appliances mean that gas companies sell more gas.

And if you look at where the manufacturers stand on this, three out of four major water heater manufacturers are in favor of the standards and are opposed to this resolution. All three of the manufacturers that support the efficiency standards are American manufacturers, and they have factories in many Republican districts across the country. 

Foreign manufacturers, however, are lobbying against these standards because they don’t want to spend a comparatively small amount of money to retool their factories to produce more efficient water heaters. I understand that companies are reluctant to spend money, but what I don’t understand is why Republicans are willing to rob Americans of $3.1 billion in savings, all to help multi-billion dollar foreign companies save a few million dollars. 

Republicans have made their choice. They have sided, unsurprisingly, with their oil and gas friends and they have sided with foreign manufacturers.

For the sake of American families, American manufacturers, and our climate, I urge my colleagues to oppose this resolution, and I reserve the balance of my time.