Cos. representing 8000 manufacturing and efficiency jobs who support DSM and oppose SB 340 send letter to Sen. Merritt

Posted by Laura Arnold  /   March 05, 2014  /   Posted in 2014 Indiana General Assembly, Uncategorized  /   No Comments

Jim Merritt

Indiana Senator Jim Merritt (R-Indianapolis)

Majority Caucus Chair

State Senator - District 31


Legislative Assistant:
Dawna Smith
Phone: 317-232-9533


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.




Johnson Controls

Knauf Insulation



United Technologies



CC: Senator Denise Kruse

Senator Jean Leising

Representative Eric Koch

Representative Heath VanNatter

Representative Richard Hamm

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