by Elisa Wood, via Renewable Energy World

Why do some states avoid creating policies that encourage consumers and businesses to save energy? What’s the psychology of the laggards?

A new report by the American Council for an Energy Efficiency Economy sheds some insight as it examines the states that consistently fall behind in the organization’s annual energy efficiency ranking.

The bottom states are: Alabama, Kansas, Mississippi, Missouri, North Dakota, Oklahoma, South Carolina, South Dakota, West Virginia, and Wyoming. The good news is that even these laggards are beginning to adopt policies to save energy, according to the report, “Opportunity Knocks: Examining Low-Ranking States in the State Energy Efficiency Scorecard.”

But they still have a lot of catching up to do. And why did they fall behind in the first place?

The report authors, who interviewed 55 stakeholders, found one reason is a general lack of awareness about energy efficiency’s benefits. Another is an aversion to government mandates. But one of the most fascinating barriers is a misperception about energy costs.

Industry folklore says that consumers in states with low electric rates have no motivation to save energy. This folklore discourages policymakers from putting time and money into energy efficiency programs. In truth, these states have good economic reasons to  encourage consumers to insulate, install better lighting, and undertake other energy savings measures.  It turns out that even though electric rates are low in these states, consumers are paying high monthly bills.

This may sound counterintuitive. But consider these numbers. In Alabama electric utilities charge 10.67 cents/kWh and households pay an average $147.69/month for electricity. Similarly, in South Carolina rates are 10.5 cents/kWh and monthly bills are $137.59/month. Compare Alabama and South Carolina to Massachusetts and California, two states with aggressive energy efficiency efforts. Massachusetts’ electric rates are high, averaging $14.59 cents/kWh, but monthly bills are low, only $97.34. California, too, has high rates of 14.75 cents/kWh and low monthly bills of $82.85.

So electric rates are higher in Massachusetts and California, yet households in those two states pay less per month for power than households in Alabama and South Carolina. This is because they consume less power. Households in the efficient states have an edge; they need less electricity each month to secure the same level of comfort and service in their homes as those in Alabama and South Carolina. So there should be plenty of good motivation for households in the low-rate states to pursue efficiency measures.

Another point of confusion involves the cost to society of investing in energy efficiency.  Because it’s generally categorized with other ‘green’ initiatives, energy efficiency is perceived as boutique and expensive.  To the contrary, it is cheaper to avoid energy use than to make new electricity, according to ACEEE.  Energy efficiency measures cost an average 2.5 cents/kWh while building a new power plant cost 6 to 15 cents/kWh. Because of this cost differential several states now mandate that utilities institute cost-effective energy efficiency before building new generation.

These are arguments, unfortunately, that might get lost in the din of an election year, one in which energy is shaping up to be a major issue. However, as is often the case, the states are leading the way and not relying on federal policy. Even the laggard states are picking up their pace when it comes to energy efficiency, as the ACEEE report describes. More here.

Elisa Wood is a long-time energy writer whose work appears in many top industry publications. See her articles at RealEnergyWriters.com. This piece was originally published at Renewable Energy World and was reprinted with permission.

by Elaine Gallagher, via Rocky Mountain Institute

Where does your energy come from? Although I live in Colorado now, I grew up in East Tennessee, where many people still assume their power is fairly clean, dominated by 90-year-old hydroelectric plants. In truth, more than 50 percent of my family’s electricity was generated from coal, and still is. I didn’t think about it much.

What price are we paying for energy apathy? What price will our children pay? As a child, I watched coal-seamed mountaintops disappear in the face of an energy crisis. Potentially potable water now goes to the highest bidders for gas and oil extraction, despite recording-breaking drought. Last month marked the second anniversary of BP’s Deepwater Horizon Oil Spill, and the Gulf Coast ecology and economy are slowly recovering. Deforestation, now contributing more to greenhouse gas emissions than transportation, is increasing in previously protected areas as a result of oil and gas exploration and extraction.

n an age of anthropogenic deforestation and wetlands loss, with only about 61 trees per capita on Earth, can we really afford to pay the price that this industry demands? Can we guarantee that our descendants will inherit a thriving planet? A recent survey says that only 24 percent of Americans are knowledgeable about energy. We know more about Kim Kardashian than about the energy that directly affects us, whether we want to or not.

To overcome energy apathy, the best remedy is knowledge. Understand the evolution of energy and its path from conservation of limited natural fuels such as whale oil, to the height of conspicuous consumption throughout the industrial age, to the innovation of 21st century clean energy, and finally to efficiency—beautifully engineered systems, buildings, cities, and machines.

Efficiency is yet a relatively untapped energy source—often forgotten in the face of shiny solar arrays and wind farms. RMI’s research for Reinventing Fire reveals $5 trillion (with twelve zeros) in U.S. energy efficiency savings sitting on the table waiting to be claimed—more if we can move more quickly toward efficiency. That’s $3,205 per person in today’s dollars unrealized—a high fiscal price to pay for energy apathy and just the tip of the iceberg.

We can choose not to pay that price.

Energy efficiency is a powerful economic driver in the face of a slow recovery. It has the potential to generate many jobs in a struggling construction sector. Deep energy retrofits increase property values and revitalize neighborhoods, because this requires a comprehensive approach to reducing energy while improving the owner and occupant experience. Efficiency drives research and innovation, resulting in new technologies with potential for increased American manufacturing and continuous job creation.

Well-engineered, efficient buildings, cities, and systems reflect the highest evolution of energy. They are beautiful and simple, often emulating nature’s own processes and improving quality of life. Energy efficiency isn’t only about high-tech air conditioners; it’s not just batteries and electrons. It is manifested in living and work spaces turned to the outdoors, walkable cities, bike paths that keep us connected physically and culturally, eating fresh and delicious regional foods, daylight pouring into a workplace where ideas bloom like the trees that shade the building.

Some say energy efficiency isn’t sexy, so it’s a hard sell. I think it’s very exciting, and it’s why I come to work every day. It carries tremendous potential for good things, including the potential to cure the world of energy apathy.

Elaine Gallagher is a Senior Consultant with Rocky Mountain Institute. This piece was originally published at RMI’s Solutions Blog and was reprinted with permission.

by James Newcomb, via the Rocky Mountain Institute

Electric utilities and policymakers in Japan and Germany have been scrambling for months to find ways to compensate for nuclear power plants shut down in the aftermath of Fukushima.

In both instances, fossil fuels are part of the stopgap solution to offset the declines in nuclear generation in the short term, but longer-term energy policies are shifting definitively toward efficiency and renewables. Now, the unexpected and indefinite shutdown of both units at the San Onofre Nuclear Generating Station in Southern California has raised questions about California’s short-term electricity supply options and long-term contingency plans.

Not surprisingly, efficiency, demand response, and renewables could play a key role in helping to diversify and mitigate risks for Southern California’s electricity supply future. The solutions being pioneered in these three markets, while driven by different circumstances, all take advantage new smart grid technologies to manage and integrate distributed resources.

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by Bracken Hendricks, Adam James

This past February Fannie Mae initiated a pilot program in six of the hardest-hit metropolitan areas to offer pools of repossessed homes to eligible investors looking to rent them out.

The need for this program sprung out of the two mortgage finance giants Fannie Mae and Freddie Mac—both currently in government conservatorship—collectively owning about 230,000 foreclosed homes, mostly from mortgages they insured or securitized before the housing bubble burst several years ago.

Unfortunately, only a small subset of these foreclosed properties are in good enough shape and in strong enough markets to be sold directly to families looking for a place to call home. For the rest, low home prices and weak demand for owner-occupied homes mean that selling hundreds of thousands of them into that market will depress prices for a long time to come.

This pilot program followed most of the recommendations we made in an earlier paper, where we argued for a process we call “rehab-to-rent.” In this process a portion of these properties are removed from the glutted for-sale market and converted into affordable rental units. Yet the pilot program did not include a consideration of retrofit strategy as a part of the bidding process because those properties were occupied. This issue brief argues that bidders should present a strategy for retrofitting properties where it is cost effective, including labor provisions and proof of capacity to ensure quality of work. Here, we look at the wise economics of retrofitting some of these homes so they are made more energy efficient before being rented out, which would:

• Boost the value of the homes when federal government agencies eventually sell the properties
• Spur hiring in local construction markets in the meantime
• Help renters pay less for energy and more for other goods and services in their communities

How would this work? The Federal Housing Finance Agency, an independent agency that regulates the activities of Fannie Mae and Freddie Mac, could allow the two mortgage finance giants to sell a portion of their large portfolios of foreclosed homes to investors who would partner with them when appropriate to create a pool of energy-efficient rental housing that the federal government could eventually sell alongside their private-sector partners. We argue that the Federal Housing Finance Agency should capitalize on the rehab-to-rent process to promote more energy-efficient housing for renters and boost the long-term value of these properties for U.S. taxpayers.

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Arizona State Senator Judy Burges believes efficiency programs are a way to create a one-world government

Citing conspiracy theories about “a one-world order,” the Arizona Tea Party is attempting to slip a bill through the legislature that could strip programs designed to help residents in the state become more energy efficient.

The bill’s sponsor, Arizona State Senator Judy Burges, says her goal is to wipe out any environmental program administered or funded by the government to prevent “social engineering … including where we live, what we eat.”

Burges’ bill, Senate Bill 1507, is based upon an unfounded conspiracy theory about “Agenda 21,” a non-binding international plan for environmentally-sustainable development crafted by the United Nations. The plan was adopted in 1992 by 178 countries, including the United States under the George H.W. Bush administration.

Burges and other members of the Tea Party believe that clean energy programs in Arizona are a plot by the United Nations to create a single world government in order to control people’s lives. AZ Central reported on SB 1507:

The bill would bar the state and Arizona counties and cities “from adopting or implementing the United Nations Rio Declaration on Environment and Development.”

Under the provisions of Burges’ bill, the state, counties and cities could not accept funds from, spend funds from or give funds to “certain non-governmental organizations,” including non-profit groups and contractors, for any of the declaration’s initiatives.

Wes Harris, a Phoenix resident and tea-party member, also testified with Burges, repeating theories about the declaration that have been floated among conservative organizations such as the John Birch Society, which refer to the declaration as “Agenda 21.”

Harris claimed the declaration “is an attempt to implement a one-world order. It’s been going on for 20 years. It has not been ratified by the U.S. Senate. It has been snuck around the back door by the Clinton administration.”

The Arizona conspiracy bill has already moved through the Senate, through a House committee, and is now set for discussion on the House floor. If passed by the House, the bill could block state and municipal programs that help home and business owners invest in energy efficiency improvements.

Chad Campbell, the Democratic House Minority Leader called the legislation “the most ludicrous … I’ve seen in six years…. You could pretty much shut down any form of government sustainability” program.

An onlooker with the Sierra Club called it “wacky.”

The bill was crafted through a “strike-everything” amendment, which allows a legislator to re-write an existing law with limited scrutiny. Burges has substituted language in an unemployment bill with the Agenda 21 wording that would severely limit Arizona’s ability to adopt efficiency and clean energy programs.

This isn’t the first conspiracy theory Judy Burges has been involved in. She is also a fierce “birther” who questions President Obama’s citizenship, despite being presented with a certificate of live birth.

Her previous attempts to pass legislation demanding Obama’s long form birth certificate have failed. But this latest conspiracy-laden bill actually has momentum in the Arizona legislature — threatening to derail the state’s valuable clean energy programs in the process.

by Frank Alsup, via Rocky Mountain Institute

Momentum is building around the nation for deep energy retrofits of buildings—which have a critical role in transforming our energy system and ending the use of fossil fuels.

For example, President Obama has ordered $2 billion worth of federal building retrofits and has partners for another $2 billion of work in the private sector. U.S. Senator Al Franken of Minnesota has kicked off a “Back to Work Minnesota” retrofit initiative. New York City, to spur retrofits, requires owners of buildings larger than 50,000 square feet to audit their property’s energy use every 10 years and report their annual gas, oil, and electricity consumption by May 1.

Now, in California, state Controller John Chiang is pushing for legislation to jump-start retrofits.

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As the saying goes, “you can’t manage what you can’t measure.”

And if you can’t measure it, you can’t make money from it.

If we want to get serious about making this country more energy efficient, we need better measurement tools to help us understand how much our buildings are consuming. After all, buildings account for 40% of energy use in the U.S.

One of the simplest tools is the energy disclosure law — a requirement that all buildings over a certain size make their energy consumption public. The law may also include a rating system for ranking the performance of buildings online or in real estate dealings.

By making the information public and setting up a rating system, it provides an additional incentive for building owners to make efficiency upgrades.

There are currently five cities and two states that have passed such laws for commercial and multi-tenant buildings. Around four billion square feet of buildings are covered under these areas — double the number of LEED buildings in the U.S.

However, there’s still no serious push for the policy on a national level. And that could be preventing building owners from saving tens of billions of dollars in energy costs.

Two new reports from the Institute for Market Transformation illustrate how this straightforward policy could break the energy efficiency retrofit market wide open, potentially unlocking $18 billion in energy savings and 59,000 jobs by 2020.

The energy disclosure laws covered in the report would cover commercial buildings 25,000 square feet and greater. It would also cover multifamily residential buildings 20 units and greater.

Here’s how researchers describe the tool:

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Sadly, America’s wildly successful energy efficiency standards have fallen victim to politics in recent years. Despite being used over the decades as a way to encourage innovation, increase customer choice, and reduce pollution, efficiency targets have been bizarrely branded as a government tool to control people’s lives.

Well, here’s more evidence that energy efficiency standards for equipment and lighting actually help consumers: A new report from the American Council for an Energy Efficiency Economy shows that these standards reduced energy consumption by 7% in 2010 — and could help consumers save $1.1 trillion in energy costs by 2035.

Assuming that 11 new standards being considered for computer equipment, electric motors, fans, and pumps get established, the U.S. could see a 14% reduction in annual electricity use by 2035 compared with current projections. According to the ACEEE report, assuming household appliances are updated every 15 years through 2040, the average American household could save 180 megawatt-hours of electricity and over 200,000 gallons of water. Translated into understandable figures: Roughly $30,000.

Here are some other interesting factoids on energy savings from these standards:

• Annual natural gas savings in 2035 of about 950 trillion British thermal units (TBtu), or enough to heat 32% of all natural-gas-heated U.S. homes.
• Peak demand savings in 2035 of about 240 gigawatt (GW), saving about 18% of what the total generating capacity projected for 2035 would have been without standards.
• The CO2 savings from existing standards in 2010 were 203 million metric tons, an amount equal to the CO2 emitted by 51 coal-fired power plants. By 2025, the CO2 savings grow to 448 milion metric tons, an amount equal to the emissions of 112 average-sized coal-fired power plants.
• Annual emissions reductions in 2035 of around 470 million metric tons of carbon dioxide (CO2), an amount equal to the emissions of 118 coal-fired power plants.

Since they were established in the 80′s, efficiency standards have clearly worked. They are a no-brainer for helping reduce peak demand, save consumers money and reduce global warming pollution. They also help drive innovation in business through consistent national standards.

Why would such common-sense measures get dragged into politics?

by Virginia Lacy and Victor Olgyay, reposted from Rocky Mountain Institute

Big Hairy Audacious Goals. Jim Collins and Jerry Porras described them in their book Built to Last as a success strategy of visionary companies. What exactly is a big hairy audacious goal (BHAG)?

A BHAG is an “audacious 10- to 30-year goal to progress toward an envisioned future… A true BHAG is clear and compelling, serves as unifying focal point of effort, and acts as a clear catalyst for team spirit. It has a clear finish line … people like to shoot for finish lines.”

In 2008, the California Public Utility Commission established a few BHAGs of its own: By 2020, all new residential construction in California will be zero net energy (ZNE). The regulators defined zero net energy as a project that “employs a combination of energy efficiency design features, efficient appliances, clean distributed generation, and advanced energy management systems to result in no net purchases of energy from the grid.” By 2030, all new commercial construction will meet the same goal.

California calls its ZNE goals Big Bold Energy Efficiency Strategies, or BBEES, “not only for their potential impact, but also for their easy comprehension and their ability to galvanize market players.” Indeed, ZNE captures the imagination and inspires action. A goal to achieve zero net energy provides a tangible benchmark with an ostensibly clear finish line—at least on the building or community level.

But what about the system level? Does a world of zero net energy buildings make for a sustainable energy future?

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Even the least expensive white roof coating reduced peak rooftop temperatures in summer by an average of 43°F

by Patrick Lynch, re-posted from NASA

On the hottest day of the New York City summer in 2011, a white roof covering was measured at 42 degrees Fahrenheit cooler than the traditional black roof it was being compared to, according to a study including NASA scientists that details the first scientific results from the city’s unprecedented effort to brighten rooftops and reduce its “urban heat island” effect.

A new study of how different white roofing materials performed “in the field” in New York City over multiple years found that even the least expensive white roof coating reduced peak rooftop temperatures in summer by an average of 43 degrees Fahrenheit. If white roofs were implemented on a wide scale, as the city plans to do, this reduction could cut into the “urban heat island” effect that pumps up nighttime temperatures in the city by as much as 5 to 7 degrees Fahrenheit in the summer, said the study’s lead scientist, Stuart Gaffin of Columbia University. Image credit: Patrick Theiner, Creative Commons

The dark, sunlight-absorbing surfaces of some New York City roofs reached 170 degrees Fahrenheit on July 22, 2011, a day that set a city record for electricity usage during the peak of a heat wave. But in the largest discrepancy of that day, a white roofing material was measured at about 42 degrees cooler. The white roof being tested was a low-cost covering promoted as part of Mayor Michael Bloomberg’s effort to reduce the city’s greenhouse gas emissions 30 percent by 2030.

On average through the summer of 2011, the pilot white roof surface reduced peak rooftop temperature compared to a typical black roof by 43 degrees Fahrenheit, according to the study, which was the first long-term effort in New York to test how specific white roof materials held up and performed over several years.

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