No place like home for energy savings

By Elisa Wood

November 12, 2009

Apparently there is no place like home, even when it comes to fulfilling lofty wishes like fixing our energy supply.

A recent White House task force on the middle class finds that our homes generate more than 20% of the nation’s carbon dioxide emissions. If we make our houses more efficient, we can significantly cut emissions and reduce energy use by 40%, a move that could lower our bills by $21 billion annually.

But who has the extra cash in this economy for better windows and an updated heating system?

The report recommends leveraging some of the $80 billion in energy and environment stimulus funds to set up financing mechanisms that let homeowners pay over time and avoid the upfront hit.

Already, to that end, several states have created low-interest revolving loan funds. Nebraska has set aside $11 million. Florida is offering $10 million, particularly for solar hot water installations. And yes, Dorothy, you can go home again. Kansas has gotten into the act with $34 million in efficiency loans.

In addition, the task force encourages federally funded pilot programs using ‘Property Assessed Clean Energy’ financing. Now available in a handful of cities, these programs finance clean energy efforts on property tax bills. Ideally, the efficiency retrofits will reduce energy bills at least as much as property payments rise, so that the homeowner faces no net increase in expenses. Particularly interesting, the loan stays with the property – not the owner. So if the homeowner decides to sell, the new owner, who reaps the benefits of the efficient home, also pays any remaining costs of the retrofit.

Similarly, the report calls for making energy efficiency mortgages more available. The US Dept. of Housing and Urban Development needs to work with Fannie Mae and Freddie Mac to establish uniform procedures for such mortgage products, the report says. In addition, the home appraisal industry must develop methods to evaluate a home’s energy efficiency.

And finally, the report says the housing industry deserves the same opportunity given to the appliance industry with Energy Star labels. Americans saved $19 billion on their utility bills last year with Energy Star appliances, according to the report. A similar label for homes would help buyers in their shopping and provide a benchmark for auditors, retrofitters, lenders and realtors.

To realize these recommendations, the report calls for creation of an interagency ‘Energy Retrofit Working Group,’ chaired by the Department of Energy, HUD, the Department of Agriculture, the Department of Labor, and the Environmental Protection Agency.

Is the White House doing more than tapping its shoes together to bring the initiative home? Monitor these two sites for progress:http://www.whitehouse.gov/strongmiddleclass/blog

http://www.whitehouse.gov/strongmiddleclass

Visit Elisa Wood at http://www.realenergywriters.com/ and pick up her free Energy Efficiency Markets podcast and newsletter.

Efficiency stimulus will lower energy bills, says federal report

By Elisa Wood

April 30, 2009

Depending on your position, the federal stimulus money is either a jobs builder or a national budget buster. The Energy Information Administration offers another take. In a recent analysis, the EIA finds that stimulus money should reduce what consumers and businesses pay to heat, cool and light buildings.

The federal agency this month updated its annual energy outlook to compare how energy costs would fare with and without the American Recovery and Reinvestment Act. http://www.eia.doe.gov/oiaf/servicerpt/stimulus/index.html.

The stimulus package delivers about $12.5 billion for energy efficiency improvements in homes and buildings. Those upgrades should cut homeowner bills an average of $64 annually (in real 2007 dollars) over the next two decades. Homeowners will reduce use of heat 1.7%, and air conditioning 3.4% by 2030, the report says. Likewise, commercial buildings should see energy costs drop by an average of $5.7 billion, or 2.7% annually between 2010 and 2030. In all, the report pegs cost cuts for home and building owners in 2020 at $13 billion, or 2.6%, and in 2030 at $21 billion, or 3%.

In addition, expect to see a lot more solar panels and small wind turbines powering stores and offices very soon as a result of significant tax credits and loan guarantees. The stimulus funds should lead to 121 MW more of solar units on commercial buildings by 2011, a 15% jump, and 120 MW in distributed wind turbines by 2016, a 527% jump.

The EIA does not typically update its annual outlook after it is published. But the federal agency decided to do so this year because it was clear that the stimulus money, approved in February, would significantly alter its 2009 outlook, which was released at the end of last year. Indeed, the information may help inform national policy as Congress debates ways to avert higher energy costs under new programs being contemplated, such as carbon cap-and-trade and a renewable energy standard.

Visit Elisa Wood at www.realenergywriters.com and pick up her free Energy Efficiency Markets podcast and newsletter.

How US businesses can access federal stimulus money

By Elisa Wood

March 11, 2009

I thought that “federal stimulus” would be high on Google’s hit list. But alas, when I checked its analysis of hot trends yesterday, I discovered that “Rockin’ Robin” is number one.

Thanks to American Idol this 1950s song dominates the search engine. Bringing more music to the ears of business owners, however, is the $20 billion made available for energy efficiency through the American Recovery and Reinvestment Act of 2009. While it is easy to find information about homeowner opportunities (www.energystar.gov), it is difficult to ferret out how Joe-business USA can take advantage of the act’s benefits.

I did, however, find a few valuable sources. Linked-in brought me to a paper by law firm K&L Gates that advises companies with early stage projects on how to apply for money. The paper focuses on renewable energy, but also touches on efficiency, and includes guidance on how to approach government fund managers. Applicants need to make the case that their projects are “game changing” to win priority. They also must be “shovel-ready” – able to begin in 90 days. The paper is available by contacting fred.greguras@klgates.com.

Energytaxincentives.org, a coalition of public interest groups, offers detailed information on existing incentives for commercial buildings, appliance manufacturers and combined heat and power. But the site appears to be still updating to include the ARRA, not surprising considering how many funding details are yet to be worked out, particularly at the state level.

The old standby, Dsireusa.org, is quickly updating information to include ARRA offerings. Those who manufacture certain energy saving and renewable energy products will find details about the 30% tax credit at the site. The program offers $2.3 billion in credits for projects certified by the US Treasury. Preference will go to those projects that are commercially viable, and are best at producing jobs, reducing air pollution, deploying commercial technology and getting off the ground quickly. The Treasury also will look at the applicant’s costs for generating energy, saving energy or reducing greenhouse gases. Additional guidelines will be available in August.

Please post here, or email lisawood@aol.com, with other sites, papers or reports that offer details about how businesses can access incentives through the ARRA 2009.

Visit Elisa Wood at www.realenergywriters.com and pick up her free Energy Efficiency Markets podcast and newsletter.

Who gets the EE stimulus money?

By Elisa Wood

February 19, 2009

The ink is dry on President Obama’s signature to the federal stimulus bill and word is out that energy efficiency receives more than $20 billion. How will homeowners and businesses benefit?

Two sources offer an excellent break-down on the incentives: the Alliance to Save Energy and the Office of Energy Efficiency and Renewable Energy, a unit of the US Department of Energy. EERE goes so far as to give the page numbers in the bill that address certain incentives.

Here is a snap shot of where some of the energy efficiency funds will go.

Housing & Buildings

• $5 billion for low-income weatherization assistance, plus an expansion of people who are eligible. An increase in the funding level to $6,500 per home.
• About $4.75 billion to Housing and Urban Development for public, low-income and Native American housing
• Tax credit for existing homes extended and increased to 30 percent of cost, up to $1,500 for 2009 and 2010
• About $8.9 billion for federal buildings, including $4.5 billion for green buildings and $3.6 billion for Department of Defense energy efficiency initiatives

Appliances

• $300 million for the Energy Star Program and for matching grants to states that offer rebates to consumers for buying Energy Star appliances.

Technology

• $4.5 billion for smart grid projects
• Up to $2.3 billion allotted for a 30 percent investment tax credit given to those who manufacture renewable energy, energy storage, energy conservation, efficient transmission, and carbon capture and sequestration items.

Transportation

• $400 million to encourage the use of plug-in hybrids
• $17.7 billion for public transportation and rail
• $2 billion for the manufacture of advanced batteries

Other

• $3.1 billion for state energy programs and $3.2 billion in block grants for local governments
• $500 million to prepare workers for jobs in renewable energy and energy efficiency
• $9.75 billion for public safety and other government services, including renovation to “green” schools

Further details are available at http://ase.org/content/article/detail/5388 and http://apps1.eere.energy.gov/news/enn.cfm

Visit Elisa Wood at www.realenergywriters.com and pick up her free Energy Efficiency Markets podcast and newsletter.