Building efficiency retrofits serve the triple benefits of mitigating global warming emissions, reducing energy bills, and creating good, local jobs. Residential buildings alone account for 21percent of total U.S. greenhouse gas emissions, and substantial efficiency savings are obtainable through easy and proven techniques. Yet if energy-efficiency retrofits offer such obvious environmental, economic, and employment benefits, why have they been so slow to materialize? The answer lies in a host of market failures, and developing viable, scalable solutions has proven challenging—until now.
“Green Jobs/Green Homes New York” outlines a policy roadmap for New York State to achieve mass-scale energy-efficiency improvements—or retrofits—of 1 million housing units over the next five years. “We know from the past 30 years of weatherization that with a relatively small investment in changing an existing structure you can save 30 to 40 percent in home energy,” said Gelman. “In New York, that will amount to about $1 billion per year if 1 million homes are weatherized.”
The policies outlined in this report can help stimulate the economy and lay the foundation for long term growth, but not without leadership from government, as well as engagement from local community groups and other stakeholders. “Free markets are not going to fix these problems without strong policy and real leadership,” said Hendricks.
Encouragingly, clean-energy policies were part of the economic stimulus package passed earlier this year. President Barack Obama outlined a plan last March to invest $59 billion from the stimulus in direct spending and tax incentives to promote clean energy and energy efficiency. Over the next two years, this federal investment will pour into state energy-efficiency programs and expand their capacity. “Those humble, hard-working energy-efficiency dollars work over time; they work double and triple time,” said Jones. These dollars can help cut home energy bills and poverty by creating jobs; reducing emissions, pollution, and asthma; and even making homes more valuable.
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The Green Jobs/Green Homes NY program will make retrofits available to owners of any type of housing in New York State and at any level of income as long as owners are utility customers in good standing and live in targeted geographic areas. Retrofits can also be made available to renters of single-family homes who own the utility meter account and have sole physical control of the housing unit. The program plans to use an array of innovative financing, community outreach, and community partnership strategies to make it all happen. “New York has one of the largest weatherization programs in the country, retrofitting 25,000 to 26,000 homes per year. This report would increase the number of homes 12 times the current rate,” said Dyen.
The report estimates that the Green Jobs/Green Homes NY plan will directly create 60,000 job-years related to the expansion of retrofit work and another 60,000 job-years indirectly through additional economic activity. The program will employ 14,000 long-term, full-time skilled retrofit workers, providing an opportunity to reach out to groups that have been previously disenfranchised in the job market. “We need to consider not only how to make access to jobs for people who don’t have a lot of work experience or don’t come to it with a lot of skills, but also how to make good jobs,” said Donner. “We need to treat these as complimentary goals rather than contradictory.”
Organization on the community level will be crucial to educate local groups and homeowners about the importance of investing in retrofitting. Also, environmentalists and unions will jointly benefit from the report’s proposed policies. “If these groups can join together and replicate the New York model across the country,” said Chambers, “then ‘yes we can’ becomes more than a chant, it becomes a way of life.”
Showing posts with label policy. Show all posts
Showing posts with label policy. Show all posts
Sunday, 31 May 2009
Sunday, 1 March 2009
Preparing for a Flood of Energy Efficiency Spending
By KATE GALBRAITH
Published: February 25, 2009
KNOXVILLE, Tenn. — To the casual eye, the basement of this city’s Firehouse 9 looks like a jumble of old hydrants, Dr Pepper cartons, rakes and random gear. To specialists in energy efficiency, the 1960s-era building is a mess of a different sort: wasteful hot water heaters for the firefighters’ showers, ancient refrigerators and outdated lights.
Wrapping up an elaborate energy audit, Knoxville is about to find out which of 99 city buildings are wasting the most energy. It hopes to begin repairs this summer, just in time to catch a tsunami of federal stimulus money earmarked for such unglamorous tasks as replacing light bulbs and fixing leaky insulation.
Knoxville’s timing is excellent. The city began the arduous work of cataloging deficiencies before the stimulus bill passed, and it is well along in planning its next steps. But experts worry that other beneficiaries, especially cities, are not ready to oversee the huge sums of energy-efficiency money about to come their way.
The money in the bill is enough to pay for a tremendous expansion of efficiency efforts across the country. But as with other parts of the stimulus package, the efficiency plan is creating tension between spending the money quickly, to get rapid economic stimulus, and spending it well, to do the most good over the long run.
“There’s enormous opportunity here for expansion of energy efficiency in this country,” said Lowell Ungar, the policy director for the Alliance to Save Energy, an advocacy group. “But there is certainly the potential for waste.”
President Obama signed the stimulus package into law on Feb. 17, hailing it as a shot of money big enough to help shake the economy from its lethargy while advancing many of his campaign priorities. Accelerating the country’s energy transition is at the top of his list. Many experts in the field agree with him that carefully chosen investments in efficiency will ultimately save more than they cost, by cutting energy bills.
At least $20 billion in the stimulus bill was earmarked for programs like improving the efficiency of government buildings and the homes of poor people, and trying to find better ways to save energy. That is far more, advocates say, than any bill in history. Within a few months, the money is likely to start landing in the bank accounts of thinly staffed state and city agencies that are accustomed to scraping for a dime here, a dollar there.
Utah expects that its state energy office will receive $40 million for energy efficiency, renewable energy and related programs — 123 times the size of the office’s current budget, said Jason Berry, who manages the four-person unit. He is about to go on a hiring spree.
The package contains $5 billion to weatherize low-income homes through the Department of Energy, enough to give the state programs that manage that work 10 to 30 times the money they received last year, said Christina Kielich, a department spokeswoman.
For advocates of this relatively obscure program, “it’s like they finally got to the other side of the desert and it’s pouring rain,” said Seth Kaplan, a vice president of the Conservation Law Foundation, an environmental group.
The stimulus package also contains $4.5 billion to modernize federal buildings and $2.5 billion for research into energy efficiency and renewable energy. The biggest chunk, $6.3 billion, will be distributed by the Energy Department in grants to state and local governments, which can spend the money on things as diverse as thicker window panes for state capitols and rebates for homeowners who change their light bulbs.
Homes and commercial buildings account for 39 percent of national energy consumption. Experts say that improving their efficiency is not only cost-effective but also a good way to reduce the nation’s emissions of the greenhouse gases that cause global warming.
But figuring out how to spend the money effectively — learning which university buildings need their doors caulked, for example, or which firehouse walls have insulation that is too thin — can involve time-consuming, tricky analysis by skilled technicians.
“People are very conservative about their buildings,” said Donald Gilligan, the president of the National Association of Energy Service Companies, a trade group. “Nobody wants to put a failed technology into the school buildings or have the lights not work.”
In Knoxville, a team of auditors hired by the city is spending six months peering into the grimy nooks of fire and police stations and even the convention center, where one employee referred to the downstairs boiler area as a “money-eating room.”
Knoxville — which says the stimulus money may help accelerate or expand its program — hopes to reduce the city’s energy bills as much as 25 percent, and the city is “definitely on the front end of the wave as far as efficiency and municipalities addressing efficiency,” said John Plack Jr., a director of project development for Ameresco, which is conducting the Knoxville energy audit.
In the Southeastern region of the country, where Mr. Plack works, low electricity prices have often made saving energy an afterthought, unlike in California and much of the Northeast. For example, Nashville, nearly 200 miles west of Knoxville, has not conducted an energy audit of its city buildings, though it hopes to use stimulus money to look through its own stock of fire stations and libraries.
“There’s a lot of municipalities out there who are completely unaware this is moving forward,” Mr. Kaplan said, referring especially to smaller cities. “They just don’t have the infrastructure in place to deal with this.”
The Energy Department, which is doling out most of the grants, has been assailed on Capitol Hill for delays in disbursing other types of assistance for clean energy. Ms. Kielich said in an e-mail message that the department hoped efficiency grants would begin flowing to city and state energy offices within 120 days, and that it planned to begin disbursing weatherization money “expeditiously and responsibly.”
On the receiving end, absorbing the huge increase in money for weatherization could be particularly challenging, said Ian Bowles, the secretary of energy and environmental affairs for Massachusetts. Though he contends it can be done, “the weatherization folks are going to have to quintuple their effort in order to put that money out,” he said.
In some cases, the managers of efficiency programs may not need to look far to find ways to spend the money.
In Knoxville, the Community Action Committee, whose operations include helping poor people weatherize their homes, works from a building with a $14,000 monthly utility bill — some of it because of an enormous skylight that lets in too much blistering Tennessee sunshine in the summer.
“It’s embarrassing,” said Barbara Kelly, executive director of the committee. “We do better for our clients than we do for us.”
Published: February 25, 2009
KNOXVILLE, Tenn. — To the casual eye, the basement of this city’s Firehouse 9 looks like a jumble of old hydrants, Dr Pepper cartons, rakes and random gear. To specialists in energy efficiency, the 1960s-era building is a mess of a different sort: wasteful hot water heaters for the firefighters’ showers, ancient refrigerators and outdated lights.
Wrapping up an elaborate energy audit, Knoxville is about to find out which of 99 city buildings are wasting the most energy. It hopes to begin repairs this summer, just in time to catch a tsunami of federal stimulus money earmarked for such unglamorous tasks as replacing light bulbs and fixing leaky insulation.
Knoxville’s timing is excellent. The city began the arduous work of cataloging deficiencies before the stimulus bill passed, and it is well along in planning its next steps. But experts worry that other beneficiaries, especially cities, are not ready to oversee the huge sums of energy-efficiency money about to come their way.
The money in the bill is enough to pay for a tremendous expansion of efficiency efforts across the country. But as with other parts of the stimulus package, the efficiency plan is creating tension between spending the money quickly, to get rapid economic stimulus, and spending it well, to do the most good over the long run.
“There’s enormous opportunity here for expansion of energy efficiency in this country,” said Lowell Ungar, the policy director for the Alliance to Save Energy, an advocacy group. “But there is certainly the potential for waste.”
President Obama signed the stimulus package into law on Feb. 17, hailing it as a shot of money big enough to help shake the economy from its lethargy while advancing many of his campaign priorities. Accelerating the country’s energy transition is at the top of his list. Many experts in the field agree with him that carefully chosen investments in efficiency will ultimately save more than they cost, by cutting energy bills.
At least $20 billion in the stimulus bill was earmarked for programs like improving the efficiency of government buildings and the homes of poor people, and trying to find better ways to save energy. That is far more, advocates say, than any bill in history. Within a few months, the money is likely to start landing in the bank accounts of thinly staffed state and city agencies that are accustomed to scraping for a dime here, a dollar there.
Utah expects that its state energy office will receive $40 million for energy efficiency, renewable energy and related programs — 123 times the size of the office’s current budget, said Jason Berry, who manages the four-person unit. He is about to go on a hiring spree.
The package contains $5 billion to weatherize low-income homes through the Department of Energy, enough to give the state programs that manage that work 10 to 30 times the money they received last year, said Christina Kielich, a department spokeswoman.
For advocates of this relatively obscure program, “it’s like they finally got to the other side of the desert and it’s pouring rain,” said Seth Kaplan, a vice president of the Conservation Law Foundation, an environmental group.
The stimulus package also contains $4.5 billion to modernize federal buildings and $2.5 billion for research into energy efficiency and renewable energy. The biggest chunk, $6.3 billion, will be distributed by the Energy Department in grants to state and local governments, which can spend the money on things as diverse as thicker window panes for state capitols and rebates for homeowners who change their light bulbs.
Homes and commercial buildings account for 39 percent of national energy consumption. Experts say that improving their efficiency is not only cost-effective but also a good way to reduce the nation’s emissions of the greenhouse gases that cause global warming.
But figuring out how to spend the money effectively — learning which university buildings need their doors caulked, for example, or which firehouse walls have insulation that is too thin — can involve time-consuming, tricky analysis by skilled technicians.
“People are very conservative about their buildings,” said Donald Gilligan, the president of the National Association of Energy Service Companies, a trade group. “Nobody wants to put a failed technology into the school buildings or have the lights not work.”
In Knoxville, a team of auditors hired by the city is spending six months peering into the grimy nooks of fire and police stations and even the convention center, where one employee referred to the downstairs boiler area as a “money-eating room.”
Knoxville — which says the stimulus money may help accelerate or expand its program — hopes to reduce the city’s energy bills as much as 25 percent, and the city is “definitely on the front end of the wave as far as efficiency and municipalities addressing efficiency,” said John Plack Jr., a director of project development for Ameresco, which is conducting the Knoxville energy audit.
In the Southeastern region of the country, where Mr. Plack works, low electricity prices have often made saving energy an afterthought, unlike in California and much of the Northeast. For example, Nashville, nearly 200 miles west of Knoxville, has not conducted an energy audit of its city buildings, though it hopes to use stimulus money to look through its own stock of fire stations and libraries.
“There’s a lot of municipalities out there who are completely unaware this is moving forward,” Mr. Kaplan said, referring especially to smaller cities. “They just don’t have the infrastructure in place to deal with this.”
The Energy Department, which is doling out most of the grants, has been assailed on Capitol Hill for delays in disbursing other types of assistance for clean energy. Ms. Kielich said in an e-mail message that the department hoped efficiency grants would begin flowing to city and state energy offices within 120 days, and that it planned to begin disbursing weatherization money “expeditiously and responsibly.”
On the receiving end, absorbing the huge increase in money for weatherization could be particularly challenging, said Ian Bowles, the secretary of energy and environmental affairs for Massachusetts. Though he contends it can be done, “the weatherization folks are going to have to quintuple their effort in order to put that money out,” he said.
In some cases, the managers of efficiency programs may not need to look far to find ways to spend the money.
In Knoxville, the Community Action Committee, whose operations include helping poor people weatherize their homes, works from a building with a $14,000 monthly utility bill — some of it because of an enormous skylight that lets in too much blistering Tennessee sunshine in the summer.
“It’s embarrassing,” said Barbara Kelly, executive director of the committee. “We do better for our clients than we do for us.”
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