Majority Caucus Chair
State Senator - District 31
Senator James Merritt
Indiana State Senate
200 W. Washington Street
Indianapolis, IN 46204
March 5, 2014
Dear Senator Merritt:
The undersigned companies represent 8,000 manufacturing and efﬁciency jobs in Indiana. We respectfully write to express our opposition to SB 340 in its current form, and to request that you hold a dialogue with businesses in your state who support Demand-Side Management (DSM) programs before taking any further action on this bill.
Indiana's bi-partisan efﬁciency program, established by former Governor Daniels, represents a common-sense solution to Indiana's high energy costs. The House-passed version of the bill would essentially eliminate Indiana's energy efﬁciency standard, ending programs well beyond industrial efﬁciency. Energy efﬁciency programs in Indiana create jobs. Indiana is home to businesses who manufacture energy efﬁcient equipment such as chillers, air-conditioners, and heaters, and to companies that make industrial facilities more efﬁcient. Further, many Indiana businesses assist state, municipal, and other public buildings become more energy efﬁcient while reducing energy bills for taxpayers. Many small Indiana businesses serve as contractors on job sites and parts manufacturers tied to energy efﬁciency. For example, consider the Core Programs that specially serve the residential, low income and small commercial customer market – not the large industrial customers. Ending these programs would eliminate approximately 381 direct program jobs, over 1200 indirect jobs and over $500 million of economic investment each year that the programs are not operating.
Reductions in industrial manufacturers' energy use through energy efﬁciency programs should be encouraged by everyone. These programs cut waste and are a ﬁscally responsible way to address the state's energy needs.
- Energize Indiana's beneﬁts far outweigh its costs 2:1 An independent evaluation of 2013 showed energy savings beneﬁts exceeded costs by nearly a 2:1 margin, fulﬁlling the goal of producing energy savings, cutting air pollution and reducing the need to build more power plants. Source: 2012 Energizing Indiana EM&V Final Report June 20, 2013 reports total portfolio of TRC 1.71
- Energy Efﬁciency is the lowest cost kWh investment– Energy efﬁciency is the lowest cost kWh investment that can be made and provides system wide beneﬁts; thus beneﬁting all customers.
- Role of Industrials is Crucial- some of the least expensive energy efﬁciency projects come from industrial customers and they are vital to include in programs. When the lowest cost kWh is procured through energy efﬁciency programs, all customers beneﬁt.
If there are concerns about the current program, we stand ready to work with you and your colleagues on improvements to the program standards. We urge you not to eliminate efﬁciency from the state's energy plan hastily, and to allow for a dialogue with Indiana businesses who believe that such a standard is a solution for wasteful energy spend and high costs.
Should you have questions, please, have your staff reach out to the point person for this letter, Anna Pavlova with Johnson Controls at 202-368-8323.