Nonprofit Energy Efficiency Act: Upgrading Nonprofits to Benefit the Environment and Communities6/22/2021 The Nonprofit Energy Efficiency Act was introduced in the Senate on February 3, 2021 by Senator Amy Klobuchar [D-MN], on behalf of herself and Senators John Hoeven [R-ND], Debbie Stabenow [D-MI] and Joni Ernst [R-IA]. The Bill was read twice and referred to the Committee on Energy and Natural Resources. This Bill was introduced in the 112th Congress as S.3535, and in the 113th Congress as S. 717, but did not receive a vote either time. A provision of this Bill did pass the Senate in 2016 as part of a bipartisan energy bill. On May 18, 2021, a similar Bill was introduced in the House of Representatives by Brian Fitzpatrick [R-PA] and Matt Cartwright [D-PA].
THE BILL: S.196 “By helping nonprofits become more energy efficient, they will be able to allocate more resources to their core missions. This bipartisan legislation is a win-win—it’s beneficial for the environment, nonprofits, and the communities they serve.” -- Senator Amy Klobuchar “These upgrades will enable these organizations to improve their energy usage and lower operating costs so they can invest more of their limited resources into providing valuable services to their communities.” -- Senator John Hoeven What does the Bill do? This bipartisan Bill would require the Secretary of Energy to establish an energy efficiency materials pilot program to provide grants to nonprofits in order to help them make their buildings more energy efficient. Nonprofit buildings are operated and owned by tax exempt organizations, and for the purposes of this Bill refer to hospitals, youth centers, schools, social welfare program facilities, faith based organizations and other nonresidential and noncommercial structures. Energy efficient materials in this case encompass products, equipment or systems that reduce the use of energy or fuel, and can include a roof lighting system, windows, doors, heating, ventilation, or air conditioning systems (1), and renewable energy generation or heating system (2). Grants will be awarded to applicaticants based on the energy savings achieved, the cost-effectiveness of the use of efficient materials, effective plans for evaluation including measurement and verification of energy savings, and the applicant’s financial need. The Bill would provide $10 million for the fiscal years 2021-2025 and individual grants awarded would not exceed $200,000. Why was it proposed? Nonprofits play a large role in society, providing a diversity of services to their communities, yet many nonprofits are in financial trouble. One study found that demand for nonprofit services has increased during the pandemic by 10.2%, but funding has decreased by 29.5%, and volunteer hours have decreased by 50% in some cases (3). Many nonprofits were already on a tight budget prior to the pandemic, and this is often reflected in the state of the buildings they reside in. Many nonprofits exist in drafty, old, poorly insulated buildings, and divert a significant amount of money to operational and energy costs, which takes away from their ability to fund their missions. The US federal government does incentivize energy efficiency improvements for building owners and tenants through tax credits and rebates, but because nonprofits are tax-exempt entities, they often cannot benefit from these programs. Due to this, nonprofits often cannot afford to upgrade, as they have to divert their funds to pay a higher energy bill each month. Additionally, poorly insulated, drafty buildings require more energy to keep them at a stable temperature, which not only increases costs, but in significant quantities can also greatly increase the amount of greenhouse gases being emitted. Benefits This program would help nonprofits fund energy upgrades to reduce operating costs significantly so that they could use more resources to support their organizational missions. Energy efficient materials such as those proposed in the Bill, can greatly enhance energy efficiency and cut down on greenhouse gases being released into the environment as a result of using excess energy (4). Challenges As nonprofits upgrade their infrastructure, outdated and inefficient technology will be thrown away. Considerations for the recycling of old technology is essential. This Bill would provide federal funding to tax-exempt entities, and it is possible that people may not want tax dollars put toward a group that doesn’t pay taxes, even if they do help the community. Focusing on non-profit upgrades does not seem to be a major government priority. Not only is there a larger focus on working to emerge from the COVID-19 pandemic, but also there are other pressing environmental issues that would have a greater impact on reducing greenhouse gas emissions for the same amount of government spending. This is an important consideration as the US works towards addressing the climate crisis. The reality of Congress According to Govtrack.us, this Bill has a 1% chance of being enacted. Republicans and Democrats: This Bill was intentionally introduced in both the Senate and House as bipartisan legislation. This Bill has been noted by both parties as directly helpful for local communities. This Bill coincides with the Democratic party platform to combat the climate crisis, and the Republican party platform to support building the future through technology, fostering innovation and growth, and improving America’s electric grid. Want to Advocate? Do these bills resonate with you? Do you want to see them become a law? Have concerns or thoughts you would like to discuss? This Bill currently has five co-sponsors in the Senate: Amy Klobuchar [D-MN], John Hoeven [R-ND], Debbie Stabenow [D-MI], Joni Ernst [R-IA], and Jacky Rosen [D-NV]. In the House, additional co-sponsors include: Jake Auchincloss [D-MA-04], Sean Casten [D-IL-06], Gerry Connolly [D-VA-11], Dwight Evans [D-PA-03], Chrissy Houlahan [D-PA-06], Ro Khanna [D-CA-17], Jim Langevin [D-RI-02], Alan Lowenthal [D-CA-47], Doris Matsui [D-CA-06], Grace Meng [D-NY-06], Mark Pocan [D-WI-02], Kathleen Rice [D-NY-04], John Sarbanes [D-MD-03], Adam Schiff [D-CA-28], Mark Takano [D-CA-41], Paul Tonko [D-NY-20], Del. Eleanor Holmes Norton [D-DC-At-Large], Albio Sires [D-NJ-08], Bill Pascrell [D-NJ-09], Tom Suozzi [D-NY-03], Madeleine Dean [D-PA-04] and Susan Wild [D-PA-07]. Do you see your Congresspeople listed above? If not, you can email your policymakers by finding their emails at https://www.congress.gov/members?searchResultViewType=expanded or call their offices to voice your thoughts. This legislation has been endorsed by: Association of Art Museum Directors, General Conference of Seventh-day Adventists, Interfaith Power & Light, The Jewish Federations of North America, New Evangelical Partnership for the Common Good, Union of Orthodox Jewish Congregations of America, United States Conference of Catholic Bishops, YMCA of the U.S.A., Independent Sector, New Evangelical Partnership for the Common Good, Habitat for Humanity, National Council of Churches, and The Henry Ford Foundation (5). Remember to use our Resources page for more information, templates and guidance when reaching out! 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