States make strides in efficiency

US Energy Efficiency

Its romantic to think that all people need is the thought of contributing to the preservation of our planet for them to invest in climate change. But the reality is that people need incentives - some form of remuneration as recognition for their efforts.

This is clearly evident in the way states are beginning to invest heavily in energy efficiency programs, inspired by the possibility that this will drive down down heating and electricity bills in addition to cutting GHG emissions.

Ironically, energy bills have surged in order to help fund these energy efficiency projects that aim to assist customers prepare their homes and install new lighting systems, as told by the WSJ. The figures a pretty impressive, especially considering the story ran by NGP&E back in October, asking why many states are failing to meet renewable energy goals.

Spending will rise from $3.1 billion to $12.4 billion by 2020

Total annual spending on the efficiency programs is expected to rise from $3.1 billion in 2008 to $7.5 billion to $12.4 billion by 2020, according to a study released this month by the Lawrence Berkeley National Lab.

In fact, the rise in the volume of programs has been so steep that there has been a significant shortage of "trained professionals to design the programs, measure results and do the actual work of retrofitting buildings," according to Galen Barbose, a staff research associate at the national lab.

Although the recession has distorted consumer demand a little, the fact that it has fallen in consecutive years for the first time since WWII is encouraging.

A report carried out by the American Council for an Energy-Efficient Economy (ACEEE) last month looked at at six measures, including spending by utilities on energy efficiency programs, state transportation policies, state building codes and appliance efficiency standards. It used 2007 data, the last year for which complete data are available from all states.

Energy savings goals

California, Massachusetts, Connecticut, Oregon, New York, Vermont, Washington, Minnesota, Rhode Island and Maine were the states which have established the strongest programs. All of which have recognized that it's far cheaper to invest in energy efficiency than to build new power plants.

Elsewhere, Michigan, Pennsylvania, Ohio and Delaware recently approved programs calling for utilities to set energy savings goals. Delaware Democratic Gov. Jack Markell said his state wants to cut energy use 15 percent by 2015. But even the long-standing leading light in energy efficiency, California, are preparing to expand their policies further.

For example, California utility regulators approved a program last month authorizing utilities to spend $3.1 billion from 2010 through 2012. What's more, California only represents about 12 percent of the US population, but it now accounts for about a third of all energy efficiency spending.

Despite the states lingering at the bottom of the rankings, still without the necessary mechanisms to compensate utilities for revenues lost as a result of efficiency programs, many are making great strides in energy efficiency. And one would hope that Washington won't let states like Louisiana, Georgia and Alaska lag behind for too long.

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