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All states not created equal when it comes to energy efficiency, but they can be

By | September 1, 2010, 5:53 AM PDT

There’s a new report out from the Center for American Progress and Energy Resource Management (EnergyRM) that takes a stab at listing the top states when it comes to policy leadership on energy efficiency. The big push by the report’s co-authors, who include the Senate Majority Leader Harry Reid, is that the United States should treat the idea of energy efficiency as another potential source of power generation.

“Energy efficiency IS energy,” says Bill Campbell, the chair of Energy Resource Management and another report co-author.

The report is being released to help encourage the development of what Reid calls “compact” legislation to help drive energy efficiency efforts across the United States. Since other legislation intended to help American’s innovation in renewable energy keeps getting stalled by old-school political agendas and a lack of bipartisan support, Reid figures that focusing on initiatives that can produce results more quickly might be more fruitful.

Considering that the average time it takes to build a new power line is 19 years (19 years!), he probably has a point. That is the major, major challenge that the United States faces with respect to renewable energy: We can produce all of it we want, but if there’s no way to get it to people, what’s the point? We keep getting bogged down in procedure, policy and practices of the past.

So, what does the report say? Pointing to certain states as trailblazers, American Progress calls for a national effort to help retrofit homes, offices and industrial locations for energy efficiency. Over the next decade, such a program could help create 625,000 sustained full-time jobs, the authors figure. The cost savings? Up to $64 billion per year for U.S. ratepayers.

And that’s just for retrofitting 40 percent of the existing buildings in the United States.

From the executive summary:

“Investing in energy efficiency provides economic benefits in other ways as well. Increasingly, efficiency means state-of-the-art buildings, enhanced comfort, better health and improved economic value. Highly efficient ‘green’ buildings use less energy, attract higher rents, spend less time vacant, and command higher prices at the time of sale. Energy cost savings and well-designed financing structures also reduce net building operating costs permanently.”

According to the report, these states are pioneers in energy efficiency markets:

  1. Connecticut
  2. California
  3. Maryland
  4. Massachusetts
  5. Pennsylvania
  6. New York
  7. Texas
  8. North Carolina
  9. New Jersey
  10. Ohio

And these are the states with the most “high market potential for future energy efficiency development”:

  1. Virginia
  2. Hawaii
  3. Michigan
  4. Maine
  5. Nevada
  6. Delaware
  7. New Mexico
  8. Florida
  9. Illinois
  10. Utah

The report does a great job of outlining the specific elements that energy efficiency policies should include, such as guidelines for renewable energy usage and penalties for failing to meet energy efficiency guidelines.

I am personally a big proponent of renewable energy, but I know that the United States is handicapped by its successful past in this regard. It takes years to approve construction projects. Years to lay new powerline infrastructure. So, intuitively, I do believe that a focus on energy efficiency from a national perspective is a great first step that could have an enormous impact. We definitely need something of this magnitude to really kickstart our progress. We Americans are a cynical, skeptical lot by nature. Show us the money, and maybe we’ll starting believing more in the future of energy innovation — in the form of smart grid, electric vehicles, renewable energy, microgrids and so on.

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Heather Clancy

About Heather Clancy

Heather Clancy is a contributing editor for SmartPlanet.

Heather Clancy

Heather Clancy

Contributing Editor

Heather Clancy has written for United Press International, ZDNet, Entrepreneur, Fortune Small Business, the International Herald Tribune and the New York Times. She holds a degree from McGill University. She is based in New Jersey.

Follow her on Twitter.

Heather Clancy

Heather Clancy

I am fascinated about how businesses of all sizes can transform their operations through technology -- not just to make themselves more efficient, but to rise above their competitors. That's the theme for my two ZDNet blogs, Small Business Matters and Next-Gen Partner. For SmartPlanet, I'm focused on profiling inspirational and controversial business leaders who have great leadership lessons to share. I also write regularly and passionately about corporate social responsibility and sustainability issues for GreenBiz.com.

Occasionally, I will pop up at an industry conference in some sort of speaking capacity. In cases where an engagement involves a sponsor that may be covered in this blog, that fact will be disclosed in coverage as appropriate.

My corporate writing work usually consists of crafting research white papers about some aspect of technology or moderating Webcasts. In the event that my commentary (in written, audio or video form) mentions a company for which I have provided consulting advice, I will disclose that fact. However, there is no connection between these projects and topics that I cover in my blogs.

She writes for SmartPlanet and is not an employee of CBS.

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RE: All states not created equal when it comes to energy efficiency, but they can be
How about building huge wind farms off the coastlines. That's a good source of renewable energy.

How about that company that makes oil fuels from algae. That is renewable.

Atomic energy is a great way to get electricity, though it is not popular with the left wing environmentalists.
Posted by Albee_Freeoneday
1st Sep 2010
0 Votes
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RE: All states not created equal when it comes to energy efficiency, but they can be
We can very easily produce all the renewable energy we want AND get it to the people TODAY - it is called distributed power generation or DPG. However it typically cuts the utilities and state energy commissions/PUCs completely out of the picture thereby eliminating all sorts of revenue and tax streams,

Solar could and most likely should be installed on virtually every viable and available rooftop in the nation. (excluding of course those overshadowed by trees/building/etc) but they aren't for several important reasons including the revenue/tax issue above and the fact that solar is still far from being economically viable.

Case in point, California. California certainly has an enormous influence on our national energy policy. In examining California?s program for ? a million solar rooftops ? one finds several flaws as the laws of physics and finance are not easily refuted.

We at Emerson Network Power are actively engaged in energy and efficiency initiatives in California and around the globe. We encourage a simple, practical review of the current solar power industry to ensure we are driving manufacturing, engineering, and design jobs in America along with proper incentives that encourage the necessary business investment in America to meet these objectives. This includes policies that promote financially sound business models.
In order to make consumer/residential level solar PV financially viable we need a national policy that:

1. Establishes a fixed rebate schedule of $5 per watt declining 1 for 2 based upon a total installed cost starting at $10 per watt. (i.e. - $8/W installed nets a $4/W rebate)
2. All solar PV installations are exempt from sales tax
3. All solar PV installations are excluded from the building property tax basis
4. Establish a local - State, County, City, Municipal ten-year bond funding program for Solar PV, Wind, small-scale Hydro, and Natural Gas refueling infrastructure with bonds being sold at 4% and funds made available at 5%. (this provides a positive cash flow to the agency for a change!)
5. Enable all such funds to be repaid via a ten-year property tax levy on the property where the assets are permanently attached.

Without the above there it is doubtful will see a million rooftops of PV in less than 10 years.
Posted by jpouchet
1st Sep 2010
0 Votes
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RE: All states not created equal when it comes to energy efficiency, but they can be
Good to see that the commenters were paying no attention to the discussion.

The article is trying to bring forth the benefits of reducing energy usage and all the commenters can talk about is generating more power. How very American.
Posted by JohnCBriggs
1st Sep 2010
0 Votes
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RE: All states not created equal when it comes to energy efficiency, but they can be
JohnCBriggs "The article is trying to bring forth the benefits of reducing energy usage and all the commenters can talk about is generating more power. How very American."

First, use a spell checker.
Second, if you want to reduce your standard of living... by all means go do it.

Third... the title of the article is...
"All states not created equal when it comes to energy efficiency, but they can be"

Here is how they can be

How about building huge wind farms off the coastlines. That's a good source of renewable energy.

How about that company that makes oil fuels from algae. That is renewable.

Atomic energy is a great way to get electricity, though it is not popular with the left wing environmentalists.
Posted by Albee_Freeoneday
1st Sep 2010
0 Votes
+ -
Reduce your standard of living?
The article makes it very clear that increased energy efficiency will improve your standard of living.

Energy efficiency is the low-hanging fruit when it comes to reducing fossil fuel dependence. More renewable energy is needed, of course, but we can reduce the need for fossil fuel energy much faster through improved efficiency than we can replace it with renewables. That is the point of this article - but it's not an either/or, we should be doing both as fast as we can.
Posted by Greenknight_z
2nd Sep 2010
0 Votes
+ -
RE: All states not created equal when it comes to energy efficiency, but they can be
Atomic energy is a great way to get electricity, though it is not popular with the left wing environmentalists.

It has been my expeirence that a lot of people who were heretofore right wing consevatives all of a sudden become 'left wing environmentalists" when someone proposes building a neclear power plant anywhere near them.
Posted by jrbowler
8th Sep 2010
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