Study of Americans’ Energy Conservation Views Reveals Misconceptions
Americans mistakenly believe that turning off or unplugging appliances are more effective ways to save energy than buying more efficient ones, accoring to a new study. (image: chicagopressrelease.com)
The good news is that Americans know how to save energy. The bad news is that they are pretty far off the mark when it comes to knowing the best ways to go about it. Both of these tidbits come from a recent study conducted by researchers at Columbia University, Ohio State University and Carnegie Mellon University that asked 505 participants about energy conservation. The results showed a lack of understanding of the relative effectiveness of different energy-saving actions, a post of the New York Times’ Green blog reported on Wednesday.
For example, the method of conservation most commonly cited in the study was turning off lights when leaving a room. While doing so consistently does save energy, the amount energy (and money) it saves is significantly less than the amount of energy saved by replacing incandescent light bulbs with compact fluorescent bulbs. In a similar example, the majority of participants believed that line-drying laundry saves more energy than changing washing machine settings, while the opposite is true.
The perception problem appears to boil down to a misguided focus on “curtailment rather than efficiency,” according to the study’s authors. That is, Americans seem to believe that using less energy is a more effective approach to conservation than using energy more efficiently, which is simply not the case. To apply this truism to heating oil use, investing in a more efficient heating system conserves considerably more oil than turning down the thermostat a few degrees. This misconception is somewhat understandable; people want to believe that small behavioral changes that cost nothing will save just as much energy as major, expensive changes like buying a new boiler or furnace. In the researchers’ words:
Relative to experts’ recommendations, participants were overly focused on curtailment rather than efficiency, possibly because efficiency improvements almost always involved research, effort and out-of-pocket costs (e.g. buying a new energy-efficient appliance), whereas curtailment may be easier to imagine and incorporate into one’s daily behaviors without any upfront costs.
To be clear, turning off lights and dialing down the thermostat are effective ways to conserve energy (so if you’re been doing both or either, don’t use this study as an excuse to stop). But they conserve a much smaller amount of energy than do more extensive measures like adding insulation to a home (which only 2.1 percent of the study’s participants cited). Many people simply can’t afford to buy new appliances or upgrade their home insulation, especially during these times of economic trouble. But it’s important to know that big energy savings require big investments—so when times are better, maybe we Americans will invest in that more-efficient heater or dishwasher instead of buying a gas-guzzling SUV.
Quincy, MA’s Energy Smart Program Helps Homeowners Save Money
A technician performs a blower door test, part of a home energy audit. A free home energy audit is the first step for homeowners who apply for the Energy Smart Quincy program. (image: austinqualitygreen.com)
Energy Smart Quincy is a new program designed to help the town of Quincy, MA reduce energy consumption and save money, the Boston Globe reported on Thursday. The program started in July, and provides homeowners and businesses with a free energy audit, during which a technician identifies ways to reduce energy use and informs consumers about available rebates and incentives for making energy-efficiency improvements.
The program is funded by federal stimulus money through an Energy Efficiency and Conservation Block Grant worth $881,000. That money will not go directly to homeowners, though; instead, it provides for the free energy audit and assistance in taking advantage of existing rebates and incentives. National Grid offers rebates of up to $2,000 and federal tax credits can take $1,500 off the cost of efficiency improvements. Those incentives can often help homeowners make the initial investment in projects such as adding insulation or sealing air leaks, which provide energy savings for years to come.
Home energy audits for the program are carried out by Next Step Living, whose chief executive, Geoff Chapin, heartily endorsed the program to the Globe:
“It’s an incredible deal. Not many people know about it,’’ Chapin said. “We help people access the rebates, fill out the forms. We make it easy.’’
Caryn Smith, a Quincy homeowner, spoke with the Globe about her efforts to reduce her energy costs. A home energy audit revealed that her 130-year-old home needed insulation in its roof and eaves. Through rebates and tax credits, what would have been a $5,500 job became a $2,000 job. That’s not exactly chump change, but Smith anticipates that the new insulation will save her $700 a year in heating costs, helping her pay off the investment in just under three years. After that, the improvement will continue to afford Smith the rewards of a more efficient home year after year.
Even a much smaller investment, combined with incentives, can substantially reduce energy bills. Larry Chretien, the executive director of Mass Energy Consumers Alliance, says that a $500 out-of-pocket expense can pay for $2,700 in insulation and air sealing, and usually saves consumers enough money that the initial investment pays for itself in just one year.
Quincy residents can apply today at the Energy Smart Quincy website. For those of you who live elsewhere, the example of Quincy might serve as inspiration. Find out what rebates or tax credits are available to you, and get a home energy audit to find out what improvements you can make to lower your heating costs. An upfront expense today could save you money for years to come.
Home Star Advances in Senate’s Limited Energy Bill
Home Star promises rebates and energy savings to homeowners who take up energy efficiency projects such as adding insulation. (image: betterinsulation.com)
Senate Democrats have cast aside many of their goals for energy and climate legislation in favor of a more limited bill that focuses on the oil spill and energy efficiency, Politico reported on Thursday. One program that party leaders say will make it into the final bill is Home Star (also known as cash for caulkers), a program that will give homeowners thousands of dollars to make their homes more energy efficient.
The Home Star program is a stimulus program, a job creation program, and an emissions reduction program all wrapped into one. By helping homeowners make improvements that will save them money on their energy bills, Home Star gives people more money to spend on goods and services instead of energy, helping to stimulate the economy. By encouraging people to add insulation, replace windows, and make other improvements, Home Star creates jobs for contractors and companies that perform these home improvements. And lastly, by making homes more efficient, Home Star reduces the amount of energy people use, which reduces emissions of carbon dioxide and other greenhouse gases.
Because of its myriad benefits, Home Star passed the House of Representatives with bipartisan support in a standalone bill (the Home Star Energy Retrofit Act) in May. In the House version of the program, homeowners could get up to $8,000 in rebates, depending on the extent of their retrofit, and the program planned to distribute $5.7 billion in rebates over the course of two years.
While the Senate program could differ in its details, the core of the Home Star program—paying homeowners to make improvements that will save them more money later on—will remain. Senate Democrats may try to push controversial programs such as a cap on carbon emissions later in the fall, but right now they have focused on creating a bill that will pass. If it does, Home Star could soon become a reality—maybe even in time to make your home more efficient for this winter.
Mass. Program to Upgrade Heating Oil Systems for Low-Income Homeowners
The Massachusetts Oilheat Council (MOC) and Conservation Services Group (CSG) are teaming up to bring high-efficiency heating systems to hundreds of Massachusetts homes. (image: chimneysweepnews.blogspot.com and csgrp.com)
Five hundred homes in Massachusetts could get new, high-efficiency heating equipment through a new program aimed at heating oil users with low or moderate incomes. Conservation Services Group (CSG) and the Massachusetts Oilheat Council (MOC) announced that they had secured $1.7 million in federal stimulus funds for the Oil Heat Efficiency Program (OHEP).
OHEP will give rebates of up to $4,000 for energy-efficient boilers, furnaces, and water heaters. CSG and the MOC will work with the Massachusetts Low Income Energy Affordability Network (LEAN) to determine eligibility for the program. In addition to upgrading heating systems, OHEP provides for training dozens of heating oil technicians to become specialists in home energy efficiency.
Michael Ferrante, president of the MOC, explained how the program would benefit low-income heating oil consumers and the state of Massachusetts:
Many of the state’s homeowners with older, inefficient heating equipment are paying only the most essential bills in this tough economic climate, so upgrading their heating system may not be a priority. Fortunately, this innovative and timely program will enable hundreds of residents to reap the benefits of higher efficiency equipment. They’ll see their energy bills go down, because they’ll use less fuel without compromising comfort. This program is also a boost for the local economy because it provides work for oil heat retailers and their technicians, due to increased demand for equipment installations. We will also need to train qualified candidates to become energy auditors, leading to even more jobs.
Many states have adopted rebate programs to encourage people to upgrade to energy-efficient appliances and heating equipment, but OHEP is unique in offering a rebate large enough that it could cover the entire cost of a heating system upgrade. Add on the savings from lower heating costs, and this stimulus program will continue to keep money in the pockets of hundreds of Massachusetts homeowners for years to come.
Massachusetts heating oil users can contact their heating oil dealer or the MOC (800-722-0623) to find out more about OHEP and to determine their eligibility for the program.
IEA: Growth in Oil Demand Will Slow in 2011
The IEA says that efforts to cut oil consumption are working and will slow the pace of oil demand growth through next year. (image: aug,ipp.mpg.de)
Economic growth will accelerate from 2010 to 2011, but that won’t translate into higher growth rates for oil demand, said the International Energy Agency (IEA) in its latest report on oil markets. According to the IEA, which advises the industrialized nations that make up the Organization for Economic Cooperation and Development (OECD), increased fuel efficiency in OECD nations will slow down oil demand growth even as global economic growth picks up. In other words, conservation and energy efficiency don’t just keep household bills down, they work on a global level.
The global economy is forecast to grow by 4.1 percent in 2010 and 4.3 percent in 2011. Faster economic growth would typically speed up oil demand growth, but changes in oil consumption in Europe and North America means that those economies are able to expand while they reduce the amount of oil they use. The news service AFP cited an example of increased efficiency from Germany, which made the transition to low-sulfur heating oil and became 15–20 percent more efficient in the oil it uses for home heating. This transition is under way in the US too, and will further curb global oil demand.
Global demand for oil in 2010 will be 86.5 million barrels per day (bpd), an increase of 2.1 percent from 2009 demand. Oil demand will rise again in 2011, but will do so at a slower rate; 2011 oil demand will reach 87.8 million bpd, according to the IEA’s numbers, for an increase of 1.6 percent. All of the increased demand in 2011 is expected to come from non-OECD countries, with China being the single largest driver of increased demand.
The changing relationship between economic expansion and oil demand growth could keep prices moderate through 2011, in contrast to some earlier forecasts that said oil prices would soar as the world pulled itself out of recession. If the global economy can grow faster than oil demand, then the supply of oil should be enough to keep up with demand and keep prices near current levels. Said the IEA:
Whisper it quietly, but we might, just might, be in for some market stability for a while longer.
The IEA predicted that the price of crude oil would average $79.40 in 2011, just a few dollars higher than the current crude oil price. But if oil consumption can be cut even more—whether through low-sulfur fuels, biofuels for transportation and home heating, or just plain old conservation—we might see even lower prices next year.
Department of Energy Caught Wasting Energy (Again!)
The US Department of Energy missed some easy opportunities to put its money where its mouth is and conserve energy at its facilities, an audit reported this week. (image: grunley.com)
About a year ago, an internal audit found that most US Department of Energy buildings were not using programmable thermostats to save energy on heating and cooling—the very same tool the agency had been recommending for American households. Apparently, that embarrassing bit of exposed hypocrisy wasn’t enough to get the DOE to clean up its act.
The New York Times reported on Wednesday that a recent audit showed DOE buildings using decades-old fluorescent lighting at most of its facilities, instead of opting for super-efficient LED lights (and other more efficient alternatives) that the department spent millions of taxpayer dollars to develop. In another finding, auditors discovered that one DOE building had installed timers to switch off lights in 1997, but had not purchased the central control unit needed to make the system work.
The Times’ Green blog also reported this week that auditors visited seven of the DOE’s 24 sites, and found inefficient incandescent light bulbs at all seven. The department tirelessly promotes compact fluorescent light bulbs (CFLs) over traditional incandescent bulbs, as CFLs use far less energy and last longer. In fact, a federal law banning 100-watt incandescent bulbs is slated to take effect next year.
What gives? Why is the DOE having so much trouble practicing what it preaches? According to the Times article, “Some said the lights were in high-security areas. And in some cases, the lighting that needs replacing is on very high ceilings and hard to get to, auditors were told.”
Apparently the Department of Energy can’t find professional light bulb changers with high enough security clearance and apparently is not familiar with the advent of ladders, scissor lifts, and other height-extending technology. Wow, they sure have a lot of work to do.
The results of the audit were met with little responsibility taking or plans to remedy the department’s lack of action. One bold spokeswoman did offer a vague hope that improvements will be made…eventually:
But a spokeswoman, Stephanie Mueller, said it would do better in the future. “Sometimes the first steps can be the hardest, but once you begin to take those steps, it’s easier to initiate change across a large organization,’’ she said.
Score this one slow, inefficient government agency 1, energy efficiency 0.
NJ Bill to Open Clean Energy Fund to Heating Oil Users
New Jersey’s state senate could give heating oil users the same incentives that are already available to residents who heat with natural gas or electricity. (image: nj.com)
New Jersey’s state senate is considering a bill that would expand energy-efficiency incentives financed by the state’s clean energy fund to heating oil users who want to upgrade their heating systems, reports NJSpotlight.com. The bill would ensure that any incentives available to natural gas users who buy heating equipment would be available to heating oil consumers who purchase similarly efficient oilheating equipment.
Heating oil users are currently blocked from benefiting from the money raised by the societal benefits charge, a surcharge on utility bills. The bill’s sponsors say that their legislation would help the state fulfill its energy master plan, which calls for a 20 percent reduction in energy use by 2020, by essentially leveling the playing field among different heating fuel consumers. Upgrading to a high-efficiency heating oil boiler or furnace lets consumers burn less oil, saving them money and cutting down on carbon emissions.
But the bill’s opponents say that the clean energy fund was not intended to finance upgrades of heating oil equipment. New Jersey’s Division of Rate Counsel, a state agency that represents utility consumers, said that only consumers who heat with natural gas and electricity should benefit from the clean energy fund since money is raised for the fund through a surcharge on natural gas and electric bills. The proposed bill would not expand the surcharge to heating oil purchases.
The New Jersey Utilities Association, an industry trade group that also opposes the bill, worries that expanding access to the fund will spread its resources too thin, and force the state’s Board of Public Utilities to make deeper cuts to its cash-strapped efficiency programs. Money set aside for clean energy has already been raided to fill gaps in New Jersey’s state budget. In March, Governor Chris Christie shifted $65 million from a Global Warming Solutions Fund to the state’s General Fund, and a total of more than $400 million marked for clean energy has been re-routed to patch up budgetary holes.
Supporters of the bill, such as New Jersey’s Sierra Club, are unconvinced by such arguments and think that if New Jersey wants to cut energy use it would be illogical and unfair to exclude heating oil users from energy-efficiency incentives. New Jersey state senator Robert Smith, one of the bill’s co-sponsors, told NJ Spotlight that the current incentive structure amounted to discrimination:
“These people [heating oil users] should not be discriminated against,” he said. “The bottom line is our energy master plan calls for us to reduce our carbon footprint and this will help us to achieve that goal”
Smith also pointed out that heating oil users are already paying into the efficiency fund, and will continue to do so whether or not they are granted access to it. “Show me a home heating customer who doesn’t use electricity,” he said. “There’s nothing in this bill that increases rates.”
The state senate expects to discuss the bill before their July recess. If it passes, New Jersey’s heating oil users will gain the same access to energy-efficiency funds that their neighbors who use other heating fuels already have, making it easier for them to upgrade to a high-efficiency boiler or furnace that will reduce their energy use and help them lower their heating bills for years to come.
Michigan Ups Rebates for Oil Furnaces and Other Appliances
Residents of Michigan can now get $200 more in rebates on an energy-efficient oil furnace like the one pictured above. (michiganenergyoptions.org)
Unlike some other states (I’m looking at you, Rhode Island), Michigan is having a hard time unloading its allotment of federally funded energy-efficiency rebates. With only 1 percent of its $2.2 million in rebates designated for furnaces and water heaters spoken for, the state has decided to increase the value of rebates to entice more customers to purchase new appliances and heating equipment, reports the Detroit News.
Oil furnaces, propane furnaces, and propane or solar water heaters will now be more affordable for consumers in Michigan. When the program began in February, the rebate on an energy-efficient oil furnace stood at $300, but now heating oil users will get back $500 for their purchase.
Speaking for the state, John Sarver cautioned that the additional rebates now being offered for furnaces and water heaters might not last if interest does not pick up. If the state’s rebate money remains unspent, the state could change tactics and hike up rebates for the refrigerators, dishwashers, and clothes washers that have so far attracted more interest from consumers.
So if you’re a heating oil user in Michigan, it just got a little easier to upgrade your oil furnace, but you might have to act soon to be sure the rebate is still available. Visit the Michigan Energy Options website to get started.
Don’t live in Michigan? You can always see what rebates are available in your state by visiting the Department of Energy’s Energy Savers website.
Heating Oil Weekly Roundup: Gulf of Mexico Oil Spill, Climate Bill Comparison, and a TV that Watches You
(image: Jeff Parker, Florida Today via cagle.com)
As the cartoon indicates, nature has some of its own methods for dealing with an oil spill. (Unfortunately, treating the oil slick like a birthday cake is not one of them.) For National Geographic, Christine Dell’Amore examines the microbes and chemical processes that the Gulf of Mexico’s ecosystem uses to defend itself.
One engineer says he knows how to clean up the oil spill, but he can’t convince anyone to try his plan. Mark Warren at Esquire has the story of the former Saudi Aramco engineer who says he used supertankers to suck up a 700-million-gallon oil spill in the Arabian Gulf.
Want to know the differences between the Waxman-Markey climate bill that passed the House and the American Power Act that Kerry and Lieberman proposed in the Senate? You could read the two climate and energy bills. Or you could look at Brad Johnson’s chart comparing them over at the Wonk Room.
Energy efficiency is good, but Sony’s latest advance is, well, a little creepy: a TV that watches you while you sleep. The UK’s Guardian explains that certain models of the Sony Bravia have facial recognition software that allows the TV to turn off if you fall asleep on the couch. This and a handful of other energy-saving innovations could cut electricity consumption by 30 percent. No word on whether or not the TV wakes you up if you’re snoring.
Cash for Caulkers Passes House, Would Give Homeowners $5.7 Billion in Rebates
The Home Star bill—or, Cash for Caulkers—could create more than $9 billion in energy savings. (image: csmonitor.com)
Making your home more energy efficient could soon be more affordable than ever. On Thursday, the House of Representatives passed the Home Star Energy Retrofit Act—more informally known as Cash for Caulkers—to help homeowners make upgrades to lower their utility bills, said the Associated Press. The program, slated to cost $5.7 billion over two years, would also create jobs in the construction industry and reduce carbon emissions, its supporters say.
The Home Star bill proposes two different rebate programs that consumers could choose from. The first, named the “Silver Star” program, would offer rebates of up to 50 percent on a variety of home improvement projects and purchases of energy-efficient appliances. From weatherstripping and insulation to window replacements and efficient furnaces, homeowners could get a combination of rebates up to a total of $3,000.
The second program, dubbed the “Gold Star” program, requires a more extensive retrofit but also yields greater rewards. Homeowners who undergo a home energy audit and make improvements that increase energy efficiency by 20 percent would get a $3,000 rebate, the same amount as the maximum rebate under the Silver Star program. But under the Gold Star program, homeowners can earn more upgrades when they increase efficiency beyond 20 percent. For every 5 percent increase in efficiency beyond the 20 percent mark earns another $1,000, up to a maximum total rebate of $8,000.
Consumers would get the rebates, or discounts, directly from vendors at the point of sale. Vendors would then apply to the government for Home Star funds. In this way, the program would be more streamlined than the weatherization program included in the stimulus package, which has been slowed down by bureaucratic hurdles, as Fox News points out.
The Home Star bill had bipartisan sponsorship—Rep. Peter Welch (D-VT) and Rep. Vernon Ehlers (R-MI) sponsored the bill—and received the backing of an unlikely coalition of environmental and business groups. However, when it came to the vote House Republicans mostly opposed the bill, citing concern over the high price tag when the House has not figured out a way to pay for the bill. John Boehner of Ohio succinctly summarized the Republican opposition:
We are going to authorize $6.6 billion of money we don’t have so we can caulk homes?
Home Star’s supporters counter that the program, expected to be used by 3 million households, would save $9.2 billion in energy costs over the next 10 years. With more money in their pockets, consumers could increase spending on other goods and stimulate economic recovery.
Don’t rush out and begin making purchases for your home retrofit just yet—the bill now moves to the Senate, which is still tangled up with a financial regulation bill and possible climate and energy legislation. But Home Star’s supporters think the bill could be on the legislative fast track, and Rep. Ed Markey (D-MA) has predicted that the bill will become law this summer, just in time for households to weatherize and prepare for the winter.
Rebates for Efficient Heating Oil Equipment Now Available in PA and NH
Purchasers of this oil-fired boiler would be entitled to maximum rebates under efficient appliance rebate programs in Pennsylvania and New Hampshire. (image: e-comfortusa.com)
Rebate programs for heating oil users who buy more efficient burners, boilers, or water heaters have kicked off in Pennsylvania and New Hampshire. The programs, both of which are funded by a $300 million allocation in the federal stimulus program and administered by state agencies, are intended to entice residents to invest in more efficient heating systems that will consume less energy and lead to lower bills. Both programs focus on climate control and water heating appliances, as they account for the largest portion of energy use in American homes. While consumers save money on future heating oil, natural gas, and/or electricity bills, the logic behind the rebate program says that the purchasing of new appliances will also help stimulate the still-sluggish economy.
In Pennsylvania, the rebate program applies exclusively to heating and water heating appliances, with rebates of $200 to $500 for oil boilers and burners (higher efficiency appliances qualify for bigger rebates). Television station WGAL of Pennsylvania’s Susquehanna Valley reported that some consumers and appliances retailers were disappointed at the rebate program’s exclusion of other appliances like washing machines and refrigerators. The decision to only offer rebates for home heating and water-heating equipment is aimed at making federal dollars go farther, as Department of Environmental Protection Secretary John Hanger explained:
This program is going to help as many as 30,000 Pennsylvanians have a lower home heating bill. And when they open that bill up and see that it’s lower, I think that they will appreciate this.
The New Hampshire Home Heating System Rebate Program, like its counterpart in Pennsylvania, offers rebates only for oil- or electricity-powered heaters and water heaters. The maximum rebate under the program is $1,000, awarded to purchasers of the highest-efficiency oil boilers. Program administrators in the Granite State offered a slightly different explanation for focusing on heating equipment, as the Nashua Telegraph reported on Wednesday:
The program says that targeting heating systems, rather than other appliances like washing machines, can save considerably more energy because “only 10 percent of the (house heating) systems installed are energy-efficient” whereas “approximately 70 percent of traditional household appliances sold in New Hampshire are energy efficient.”
Both programs began this week, but since they rely on a predetermined amount of federal funding, they will expire then those funds run out. So if you are in the market for a new heating oil furnace, boiler, or water heater and you live in either state, reserve your rebate ASAP, before making the purchase to be sure you’ll get what’s coming to you. A similar program in Rhode Island saw its funds exhausted in less than 24 hours.
For more details on the programs and to reserve your rebate(s), visit their respective websites for Pennsylvania and New Hampshire.
Maine Gets $30 Million for Energy-Efficiency Home Loans
Installation of insulating windows is just one of many home improvements that Mainers can invest in with federally backed loans from the state government. (image: windowswc via flickr.com)
The state of Maine, home to a sizeable portion of the nation’s heating oil users, will soon receive a $30 million grant from the federal government to fund energy-saving home improvements. The grant will come though the Recovery Act, and will be the source of loans to help homeowners pay for energy conservation retrofits like weatherization, installing better windows, and buying more efficient appliances. The loan payments would be added to property taxes, ensuring that the cost of energy improvements would remain tied to homes, the Maine Public Broadcasting Network (MPBN) reported on Wednesday.
The program follows a model outlined last month by Energy Secretary Steven Chu, who identified the intimidating up-front cost of many home efficiency upgrades as one of the main impediments to Americans investing in upgrades. According to Chu, rolling loan payments into property taxes eliminates homeowners’ concern that they may have to continue paying for energy-efficiency upgrades even after they have moved out of their house and stopped benefitting from the resulting lower energy bills.
But one analyst interviewed by MPBN said that the incentive to make energy upgrades provided by the loan program would be less influential on Mainers’ decision to invest in energy efficiency than heating oil prices:
John Dorrer, director of the state’s Center for Workforce Research for the state Department of Labor, says experience tends to indicate that it’s the high cost of fuel, rather than the availability of energy programs, that spurs Mainers to weatherize. At least that was what he saw when fuel prices spiked two years ago. “Once that price of home heating oil and gasoline dropped back down to $2.50, $2.70, $2.80, it caused people to sort of slow down in making those kinds of changes and innovations,” he says.
While the price of heating oil might be the most important factor in interest and investment in energy conservation in Maine and the rest of the Northeast, offering major financial incentives certainly couldn’t hurt. David Farmer, a spokesman for Governor John Baldacci, was quick to point out that Maine has been the one of the busiest and most successful states when it comes to energy-saving government initiatives.
“Maine has been recognized on a number of occasions by the U.S. Department of Energy for the groundbreaking work that we’re doing here on weatherization and energy efficiency,” Farmer says. “From the work at MaineHouse to the Efficiency Maine Trust and Efficiency Maine at the Public Utilities Commission, Maine has implemented its own policies that have weatherized more homes, created new jobs and reduced fuel consumption.”
Of course, whether or not the $30 million loan program leads to large-scale job creation and energy savings in Maine, as its proponents predict, remains to be seen. If the program does create jobs for contractors and save consumers money on their heating oil and electricity bills, it will likely spur the creation of similar loan programs around the Northeast and the rest of the country.
Energy-Saving, Rebate-Paying Home Star Proposal Moves Forward in House
Members of the House Energy and Commerce Committee, shown here in June of 2009, carried the Home Star program over its first legislative hurdle on Thursday. (image: scienceprogress.org)
The Home Star initiative, widely known as “cash for caulkers,” which was first considered by President Obama in November of last year, received its first legislative boost from the House of Representatives on Thursday. The Burlington Free Press reported that the Home Star Energy Retrofit Act of 2010 passed the House Energy and Commerce Committee by a bipartisan vote of 30 to 17. The bipartisan vote from the committee (28 Democrats and two Republicans voted to approve the measure) led some legislators to optimistically hope for swift passage of the bill by both houses of Congress in the near future.
The Home Star program would provide generous and immediate rebates to homeowners who invest in energy-conserving improvements to their homes such as installing better-insulating windows and buying more energy-efficient appliances. Supporters of the bill cite three-fold benefits of the two-year Home Star plan: the creation of 168,000 jobs for contractors to perform upgrades, savings on energy bills for consumers that would add up to nearly $10 billion over the next decade, and a vast reduction in nationwide energy consumption that would help cut down greenhouse gas emissions. The plan, which carries an estimated cost of $6 billion, would offer rebates of up to $3,000 per household for efficiency improvements, as announced in early March.
If passed, Home Star would provide a valuable new incentive for all Americans to invest in making their homes more energy efficient, particularly because the rebates would be paid out immediately, with the federal government reimbursing retailers and contractors at a later time. As HeatingOil.com has reported on many occasions (most recently, last Monday), improving home energy efficiency is the easiest and most cost-effective way for heating oil users to save money on their heating oil and electricity bills. According to one estimate published by Massachusetts RealEstateRama, “In 2011 alone…[Home Star will save] an amount of natural gas and home heating oil that is the equivalent of 6.8 million barrels of heating oil.”
Following up previous statements of support for a federal energy-saving program aimed at American homeowners, President Obama applauded the committee’s passage of the bill on Thursday, as reported by UPI:
“Today’s bipartisan committee vote is an important step forward in our effort to create jobs, save consumers money and increase energy efficiency,” Obama said in a statement released by the White House. “In my State of the Union address and in the months since, I have called on Congress to pass a program of incentives to homeowners who make their homes more energy efficient. The Home Star legislation approved today would do just that—providing consumers with up-front rebates on investments in things like insulation, heating, ventilation and air conditioning systems, and windows that have been proven to save energy.”
The Home Star bill will next move on to the House floor for a vote by the full chamber, followed by a Senate vote. Representative Edward Markey (D-MA), the bill’s sponsor, predicted widespread support for the measure that would lead to its implementation in just a few short months, as reported by ecohomemagazine.com on Thursday: “In the next couple months, I believe Home Star will go from an unheralded, small-budget program to become the summer blockbuster our economy needs.” Markey’s view could be considered overly optimistic, as his sponsorship of the bill makes him heavily invested in its success. However, the clear economic and environmental benefits of the Home Star program could prevent it from being bogged down in partisan battles and put it on the fast track to approval that Markey envisions.
For additional information on the Home Star proposal, visit efficiencyfirst.org.
This post was updated on Tuesday, April 20. Thanks to reader Kevin McCarthy for directing us to the sources of this update.
This Week In Heating Oil March 26, 2010: Rebates for Efficient Appliances and Heating Oil Legislation
EnergyStar-certified appliances qualify purchasers for rebates in some states. (image: wral.com)
Federal stimulus dollars have helped grow incentive programs that encourage Americans to buy energy-efficient appliances in dozens of states. One such program in Rhode Island was so popular that its funds had been snatched after just one day.
Several state legislatures are still considering mandates that would require less sulfur and more biodiesel in residential heating oil. This week, the debate over the coast and benefits of such a mandate heated up in Connecticut and the Maine Legislature passed a bill that lowers sulfur content but does not require biodiesel additives.
embedded by Embedded Video
YouTube Direkt
Rhode Island Rebate Funds Exhausted in One Day
Rhode Islanders, eager to save some money on energy-efficient appliances, have already reserved all the money allocated to the state’s rebate program. (image: blogs.courant.com)
On Thursday we reported that Rhode Island had initiated a program that offered rebates for the purchase of energy-efficient oil boilers, oil furnaces, dishwashers, refrigerators, and other appliances. Now we can tell you that all $822,000 of rebate funds have been reserved by Rhode Island residents who plan to buy an energy-efficient appliance, according to rirebates.com, the website devoted to the program. That’s right, Rhode Island’s rebate program only lasted one day.
The short duration of the program indicates that it sparked a high level of interest among Rhode Islanders for upgrading appliances and increasing the energy efficiency of their homes. Rebates ranged from $100 to $500; that’s not enough money to cover the costs of a new oil boiler, for example, but was apparently the incentive that many people were looking for.
Rebate holders have 15 days to purchase a new appliance. If rebates are unused, that money will return to the rebate fund. Rhode Islanders can still add their names to a waiting list, available at rirebates.com, when/if extra funds become available.
Rhode Island Begins Rebate Program for Energy-Efficient Appliances
Rhode Island’s rebate program for ENERGY STAR appliances is underway, and could help heating oil users save some coin. (image: energystar.gov)
Starting today, March 25, Rhode Island heating oil users can get a little extra help when they upgrade their heating oil furnace or boiler, reported the Providence Business News Wednesday. The state’s program takes advantage of federal funds allocated by the American Recovery and Reinvestment Act of 2009, more commonly known as the stimulus package. Each state decides how to distribute the rebates, and which appliances qualify. As it happens, Rhode Island chose to offer its largest rebate for the purchase of energy-efficient oil or gas boilers.
Several household appliances will be eligible for a rebate in Rhode Island’s program, including dishwaters, refrigerators, and freezers that meet the federal ENERGY STAR standards. Residents who purchase an oil or gas boiler with an Annual Fuel Utilization Efficiency (AFUE) of 85 percent or greater can receive a $500 rebate, the largest rebate offered. Rhode Islanders who use an oil or gas furnace won’t be so lucky, and will be eligible for a rebate of only $100.
Rhode Islanders must apply for the rebates, and the appliance must be purchased within 15 days of the approval of the rebate. Purchases made before March 25 are not eligible for rebate. To apply, residents can go to rirebates.com, which also has more information on the program.
The program will end as soon as its funds are exhausted, so interested consumers should act as soon as possible. According to rirebates.com, 64 percent of Rhode Island’s rebate funds have already been reserved; during the time it took to write this post, $49,470 in rebates were reserved. If this pace were to keep up, the program would be over in a matter of hours.
For more information on rebate programs across the nation, and in your area, see this article on HeatingOil.com.
Sec. Chu: DOE Making Multifaceted Effort to Encourage Home Energy-Efficiency Improvements
Energy Secretary Chu wants the US to pluck the low-hanging fruit of increased savings and reduced emissions offered by energy-efficiency upgrades. (image: mercblogger.com)
“Low-hanging fruit” has become something of a political cliché in recent years, used to refer to easily achieved goals that, once realized, produce substantial positive results.
For many, home energy-efficiency improvements are the perfect example of low-hanging fruit on the tree of cost savings for individual Americans and the government. Secretary of Energy Steven Chu has always believed this, and on Tuesday reiterated his belief and backed it up with some interesting evidence. In an article published on the Huffington Post, Chu described several studies undertaken by the Department of Energy that clearly show that, when done properly, energy-efficiency initiatives lower residential energy bills, reduce energy usage, and cut down greenhouse gas emissions. All of these positive results are usually realized within a year, and require minimal up-front investment.
Chu frames his argument as a response to “some economists” who say that if the benefits of energy-efficiency programs were so obvious, the market would have already sought them out and implemented them without government prodding or incentives. Chu identified five main market failures that stand in the way of widespread energy upgrades: “inertia, inconvenience, ignorance, lack of financing and ‘principal agent’ problems (e.g., landlords don’t install energy efficient refrigerators because tenants pay the energy bills).” He then enumerated steps the DOE would take to address those problems.
First, the Department plans to overcome inertia in the home energy retrofit business by looking into training programs for home energy auditors, developing technology to make audits easier and more accurate, and pushing for post-work inspections to ensure that improvements were done correctly and will deliver potential savings. The home energy audit has become a valuable first step toward energy savings—once a home’s energy deficiencies are indentified, they can usually be quickly and easily remedied. Even without major government initiatives, energy audits have already begun to grow as a necessary side-business for many energy and heating, ventilation, and air conditioning (HVAC) companies. Many heating oil service technicians now double as energy auditors.
To address the inconvenience of implementing home energy improvements, Chu pointed to the DOE initiative called “Retrofit Ramp-Up,” that will seek to provide efficiency upgrades to entire neighborhoods at once. According to Chu, “If we can audit and retrofit a significant fraction of the homes on any given residential block, the cost, convenience and confidence of retrofit work will be vastly improved.” The program also seeks to make efficiency upgrades a “social norm”—if most of a homeowner’s friends and neighbors know what energy audits are and are aware of the benefits of audits and efficiency upgrades, that homeowner would presumably be more likely to undertake such action his or herself.
To jump the cost hurdle that blocks some energy-efficiency improvements, the DOE has offered several tax incentives, rebates, and financing plans to encourage homeowners to invest in such improvements on their own. Chu offers the example of a program that would allow homeowners to pay back loans for efficiency improvement projects as part of their property taxes, which would tie the cost of energy upgrades to the home, along with their benefits.
To address the reluctance of disinterested parties in the real estate market to implement energy upgrades, Chu suggests making energy-efficiency inspections a required step in home sales. Just like structural and termite inspections, energy inspections would be considered in determining a home’s value, and the cost of improvements could be easily tacked on to a mortgage.
As Chu wrote, the evidence is clear that home energy audits and energy-efficiency upgrades are indeed low-hanging fruit that constitute a smart investment for individual Americans and government agencies alike:
-“a recent McKinsey report…found the potential to reduce consumer [energy] demand by about 23% by 2020 and reduce GHG emissions by 1.1 gigatons each year—at a net savings of US$ 680 billion.”
-“the National Academies found in 2009 that accelerated deployment of cost-effective technologies in buildings could reduce energy use by 25-30% in 2030,” with most improvements yielding a “a payback period of two to three years.”
-“improving the efficiency of buildings, which account for 40% of US energy use, is truly low hanging fruit.”
If Secretary Chu and his Department of Energy succeed in making audits and efficiency upgrades easier, cheaper, and more widely available, the savings will start rolling in sooner than many expect.
Heating Oil Weekly Roundup: Daylight Saving, Buying American, and Local Innovation
(image: iastate.edu)
It’s the first week of daylight saving, a practice which was initiated, among other reasons, to save energy. If you’re awake when the sun is out, then you won’t need to turn the lights on, and you’ll use less energy, right? As it turns out, no. Grist has Joseph Romm analyzing the results of a 2008 study that concluded that daylight saving actually wastes energy, as people use more air conditioning on hot afternoons and heating on cool mornings.
If you want to buy American, look no further than insulation. Or caulking, or replacement windows. According to Kate Galbraith of the New York Times’ Green Inc. blog, nearly all such efficiency materials are produced domestically. That helps explain why the push for energy efficiency is also hailed as a vehicle for job creation.
Legislation promoting energy efficiency has sparked another fight. As Jim Snyder at The Hill’s E2 Wire blog reported, it’s not between Republicans and Democrats this time—it’s between environmental groups and window makers. The stimulus package included a tax credit for buying energy-efficient products, like windows, that could go up to $1,500. But it also raised the eligibility requirements that windows would have to meet to qualify as energy efficient, as environmental groups had demanded, and now window makers and business groups are fighting back.
A group of Rhode Islanders took it upon themselves to develop alternative energy sources and founded the Energy Innovation Group to work on small-scale algae, biodiesel, and solar greenhouse projects, Gina Macris of the Providence Journal reported. The group has built a prototype greenhouse powered by sunlight reflected by mirrored panels, where vegetables—and algae that could be converted into biodiesel—can grow during the winter.
Generous Incentives Make Purchase of Efficient Heating Equipment More Attractive Than Ever
Right now, every state is flush with tax credits and rebates for energy efficiency upgrades. (image: dsireusa.org)
Despite the recession’s effect on many people’s disposable income, it may still be a good idea to buy that more efficient refrigerator—or oil heater. The year 2010 is a golden age of energy efficiency incentives.
In addition to the American Recovery and Reinvestment Act (the known more generally as “the stimulus”), which in 2009 renewed a federal personal tax credit for home energy efficiency improvements, state-level credits of the same type are also available and are meant to be used concurrently with federal perks. On top of these existing tax credits are the much-anticipated rebates through HomeStar, a proposal put forth by President Obama. Once known as “Cash for Caulkers,” the program plans to offer up to $3,000 to homeowners for upgrades and retrofits.
And on top of THIS is the Energy Star appliance rebate program offered through state energy offices and funded by the Department of Energy. We first reported on this program in Pennsylvania, where the state will soon offer $500 rebates for upgrades that include home heating oil equipment like furnaces and boilers. Under Energy Star, every state receives funding based on their population and decides on their own which appliances to make eligible for the program.
ICPA Calls For Conservation Funding Over Heating Oil Assistance
Expanding usage of high-efficiency heating oil systems not only achieves federal home energy conservation initatives; it also alleviates need for federal heating assistance, says the ICPA. (image: factoidz.com)
Last week, the New Britain Herald published quotes from Gene Guilford, president of the Independent Connecticut Petroleum Association, proposing that the heating oil-focused nonprofit known as the Connecticut Fuel Oil Conservation Board is optimally positioned to implement the green job and home efficiency improvement initiatives awaiting Congress approval. The article is a rewritten version of a press release posted on the ICPA website last Monday.
In the ICPA’s press release, Guilford emphasizes—with bold and underlined text—that oil heat conservation programs are not only a highly fruitful means of saving energy and creating jobs; they also reduce demand for federal heating oil assistance.
The oil heat industry is leading the nation with efforts to reduce energy consumption through energy conservation programs. For every $1 that is invested in energy conservation, taxpayers save $3 in government programs that help the neediest in our society pay their heating bills - we have the Green Collar jobs right here, right now.
The Connecticut Fuel Oil Conservation Board is a nonprofit founded in large part by the ICPA that promotes energy conservation by paying for the heating system upgrades of eligible low-income fuel oil users. Because high-efficiency burners are as much as twice as efficient as older burners, their installation alone can halve a user’s annual oil consumption and heating bill. Because installations require the expertise of contractors, they create jobs in the same manner as weatherization projects recently touted by President Obama. These facts alone make a compelling case for increased federal attention to the role of the heating oil industry in conservation efforts.
