Policy Issues

The transportation sector is responsible for about 28 percent of U.S. energy consumption and about one-third of U.S. carbon emissions – more than any other end-use sector except for industry – and its share of consumption and emissions has grown steadily in recent decades.

With increasing demands for energy-intensive computing power and internet communications, commercial data centers have become significant consumers of electricity and companies are recognizing the need for efficiency in data centers and server equipment. But increased use of IT also has the potential to reduce energy expenditures in other sectors.

Rising consumption of electricity and natural gas is straining generation and transmission capacity and natural gas supplies in many regions of the country. Energy-efficiency investments are the cheapest, fastest, and cleanest way to respond to these challenges.

Appliance efficiency standards and building energy codes are two of the most important and effective government energy efficiency policies. Building energy codes apply to the building "shell," including components like insulation and windows, and to systems for space heating and cooling, water heating, and sometimes lighting—but only in new construction and significant renovations (e.g. those that require building permits).

The industrial sector accounts for more than one-third of total energy use in the United States and contributes 35.8 percent of domestic greenhouse gas emissions. While industry has demonstrated steady improvements in energy intensity (btu/GDP, or value-added GDP for individual subsectors) since the 1990s, significant opportunities to improve energy efficiency still go unrealized. Federal leadership, support, and legislation are necessary to capture the full potential of energy savings and innovation in our industrial sector.

The federal government is the nation’s single largest energy consumer and energy waster. Efforts over the last two decades to reduce energy use in federal buildings and facilities have resulted in significant energy and cost savings.