Author Archives: Kate Zerrenner

Texas Picks Up The Clean Energy PACE

This commentary originally appeared on EDF's Energy Exchange blog.

Chairman John Carona’s Property Assessed Clean Energy (PACE) bill, Senate Bill 385 (SB 385), which was sponsored by Chairman Jim Keffer in the House, is headed to the Texas Governor’s desk!  Building upon successful legislation passed in 2009 to authorize “PACE districts” in Texas, SB 385 clears some of the hurdles that prevent commercial and industrial properties from taking advantage of new financing for water and energy conservation efforts.

PACE is an innovative, market-based approach that helps alleviate the steep, upfront costs property that owners generally incur for water and energy improvements by using loans that are seamlessly repaid through an additional charge on their property tax bills.  The loan is then attached to the property, rather than the owner, and can be transferred if the property is sold.  PACE loans can be issued by city or county financing districts or financial institutions, such as banks.  Property owners who participate will start saving money on their utility bills each month as a result of water conservation, energy efficiency and/or renewable energy improvements, while repaying the loan annually when they file their taxes.  In other words, they will see net gains despite increased property taxes.  The program is entirely voluntary.

In 2009, Governor Perry signed House Bill 1937 (HB 1937) by Mike Villarreal, which established PACE districts in Texas for the first time.  Although cities and counties across the state began the process of setting up PACE districts, the entire process was derailed when the Federal Housing Finance Agency (FHFA) created an obstacle for residential PACE programs.  FHFA expressed concerns about the senior lien—that is, if a homeowner with a PACE loan defaults, the repayment of the PACE obligation would take priority over settling the mortgage.  There were also some structural concerns which would have “required the Texas legislature to amend or replace the existing statute.”  This new bill, SB 385, addresses the structural problems and applies to commercial and industrial (rather than residential) property owners, thus removing the senior lien concern from the equation. Read More »

Posted in Energy efficiency, Legislation, Renewable Energy, Texas Energy Crunch | Tagged | Leave a comment

New Thinking Is Critical To Better Manage Water And Electricity Resources In Texas

Central Texas Workshop Discusses Opportunities For Resiliency During Extreme Weather Events

Last week, I attended a regional workshop that focused on adapting to extreme events, sponsored by the U.S. Environmental Protection Agency (EPA), the National Oceanic and Atmospheric Administration, the Water Environment Research Foundation, the Water Research Foundation, Concurrent Technologies Corporation, and NOBLIS. This workshop was the sixth in a series organized around the country to determine what is needed to increase the resilience of water utilities and communities in the face of extreme weather events. While the focus was on water, time and again, electricity was brought into the conversation—the two are closely linked, and in Texas, a state facing shortages of both water and power, this will require some creative thinking on our part.

This workshop focused on Central Texas, in particular our drought. But as the two-day workshop went on, it became clear to the organizers when local water utilities and other stakeholders spoke, that drought was only one extreme event that Texas has had to deal with…and continues to deal with. We are a state of extremes—weather, politics, personalities—and we not only have drought to handle, but also hurricanes, floods, tornadoes, wildfires, and just generally scorching heat. One of the first speakers was John Nielson-Gammon, the State Climatologist based out of Texas A&M University. He confirmed that while these natural phenomena are not new to Texas, we are experiencing more intense weather events. Last year was one of the hottest in Texas since we started recording temperatures, and we are heading into the third year of a pretty gruesome drought. Not being prepared for extreme events to get worse seems pretty foolhardy.

During the workshop, we heard from a variety of speakers from around the Central Texas region, including from the Barton Springs/Edwards Aquifer Conservation District, the Lower Colorado River Authority, rice growers, the University of Texas, the high tech industry, and individuals from Austin, San Antonio, and Bastrop. These people are dealing first hand with the impacts of the extreme events we’ve had in the past few years. They are simultaneously trying to manage the current situation while planning for what the changing climate means in the coming years. It’s a difficult balancing act.

As an outsider to the planning process, I was asked to report on the proceedings of a meeting at the end and to give an overview of my impressions of the workshop. My impressions were as follows:

It is crucial to balance short-term preparedness with long-term resiliency, and neither should be sacrificed at the expense of the other. Planners in Central Texas know how to handle floods, fires, and drought, but the intensity of these natural phenomena will likely increase with the effects of climate change. It’s also essential to ensure that we are protecting our water and electricity needs for the long-term.

There is tension between urban and rural needs. This is not a new concept, and it is particularly tense with regards to water needs. Often the decisions about water and electric needs are made in cities, and city dwellers may think of rural needs only in the abstract. But protecting the quantity of water available for farmers and ranchers is how we feed our urban populations. Some cities in Central Texas are, out of necessity, dealing with this issue. In the wake of the wildfires in Bastrop, planners in that area are taking a closer look at how homes are constructed and how the urban/rural interface affects the ability to provide water for its population and prevent future wildfires. Controlled burns are one way that wildfires are prevented, but you can’t do controlled burns in a subdivision built into a forest. Thinking about developing our communities in more thoughtful ways is critical.

Adapting to our changing climate necessarily includes water, but it also goes beyond water. Emergency preparedness must include ensuring adequate water supplies and electricity. We can envision extreme events in Austin because we’ve had them in the past: fatal flooding, tornadoes, wildfires, drought, and heat waves. These extreme events will likely intensify as climate change advances, and we need to be comprehensive in our planning. We know that we’re facing potential electricity shortages within the next three years, and water supplies are already stressed. We also have to take into consideration whether our current infrastructure can maintain our growing population, especially in the face of future extreme events, and what those events mean in terms of health impacts. Many evacuees from Hurricanes Katrina, Rita and Ike were dehydrated and fell sick, and healthcare workers across the state responded heroically. We should anticipate more vulnerable populations in the wake of extreme events in the future. Read More »

Posted in Climate change, Drought, Environmental Protection Agency, Extreme weather, Texas Energy Crunch | Leave a comment

Energy Crunch: Saving Energy In Texas Schools Is A Win-Win

The Texas Legislature is back in session, and there will be, as always, a lot of discussion about how to fund schools. The school system in our state seems to be chronically short of funds to meet the demands of our growing state and its children.

But while the state-level politicians discuss, some school districts are taking matters into their own hands where they can. In the summer 2012, the Houston Independent School District (HISD), the seventh largest school district in the U.S. and the state’s largest, hosted a student through the EDF Climate Corps program. The program trains graduate students to find energy savings in their host institutions or companies. The Climate Corps fellow at HISD found several potential projects to help save the district money. For example, HISD has approximately 1,000 temporary buildings. The fellow found that if all the trailer-type temporary buildings’ lighting and wall air conditioning units and box heaters were upgraded and had insulation installed, at an upfront cost of $453,000, the district would realize over $62,000 in annual savings, nearly 700 kilowatt hours in annual electricity savings, and an annual reduction of approximately 400 metric tons of carbon dioxide. And that’s just one project!

The student’s work built on the findings of an audit funded through the State Energy Conservation Office (SECO) in 2007, which estimated that with recommended upgrades, HISD could cut its annual energy costs by $15 million!

Since the 2007 audit was performed, Houston voters have approved two bonds to help upgrade their school district, including one in November 2012. In the last bond vote, they approved, by a margin of nearly 2:1, a $1.89 billion bond to replace and repair 40 schools in HISD. In recent years, HISD has committed to ensuring all new and future buildings meet Leadership in Energy and Environment Design (LEED) standards for green building.

In 2009, the Texas Legislature passed Senate Bill 300, which was signed by Governor Perry. It requires school districts to develop long-term energy plans. It leaves it up to the boards of trustees of the individual school districts to determine if they want to submit the plan to SECO to help finance measures for plan compliance. There is no way to determine which school districts have developed plans or are implementing them. This Legislature could require school districts to report to SECO or could establish some minimum standards for building new school facilities or renovating existing ones.

Nationwide, schools spend more than $6 billion on energy costs, and the US Department of Energy National Renewable Energy Lab estimates that most schools could save about 25 percent of that by implementing smart energy measures.  Those savings could pay 40 million new textbooks, 30,000 new teachers or 1.5 million new computers every year.

Some relatively simple measures such as daylighting (using windows and skylights to bring in natural light) have a double benefit—in addition to saving the average middle school tens of thousands of dollars in energy costs, daylighting technologies are also proven to improve students’ academic performance. One study in North Carolina showed that students who attended daylight schools scored up to 14 percent better on tests than the equivalent non- daylight school students. Smarter energy technologies and conservation measures lead to lower electricity costs, but also to lower maintenance costs, better indoor air quality, and free up money that can be used on other necessities, such as hiring teachers or buying more computers.

There is often an upfront cost to installing these energy efficiency technologies (although many conservation measures, such as turning off vending machine lights require no cost and only save money), but in most cases, school districts are in a good position to take advantage of several financing options. SECO operates the LoanSTAR program, which uses a revolving loan mechanism to fund energy efficiency projects for public buildings, including those in school districts. SECO also operates the Texas Cool Schools grant program, which helps Texas schools lower their operating costs by purchasing new and more energy-efficient heating, ventilation and air conditioning (HVAC) systems.

Performance contracting is another way to finance upfront costs for schools. Under performance contracts, contractors pay the upfront costs, which are recouped through a portion of the resulting savings, and even guarantee net savings for the building owner.

As we start this new Legislative Session in Texas, and parallel debates happen about our impending energy crunch and how to fund schools, doesn't it make sense to merge these two issues? Help our school districts reduce energy costs (and in the process improve indoor air quality, student performance, and water efficiency) and enable them to spend their money on improving education, and reduce stress on the grid. Don’t the schoolchildren of Texas deserve that?

Posted in Energy efficiency, Houston, Texas Energy Crunch | Leave a comment

A Texas Coalition for Water, Energy and Economic Security Briefing: The Drought Threatens Texas’ Power

(Source: www.businessinsider.com)

On Thursday, February 2, the Texas Coalition for Water, Energy and Economic Security (TCWEES), which includes Environmental Defense Fund and other stakeholders in the environmental and business community, held a legislative briefing discussing the impact that the drought could have on power in Texas. This is the first of a series of TCWEES-hosted, educational events focused on energy efficiency that will be held around the state during the legislative interim.

The speakers at the briefing included:

  • Dr. John Nielson-Gammon, Texas State Climatologist and Regents Professor of Atmospheric Science at Texas A&M University
  • Dr. Carey King, Research Associate at the Center for International Energy and Environmental Policy at the Bureau of Economic Geology at University of Texas at Austin
  • Mark Armentrout, President and CEO of Texas Technology Partners; former chair of ERCOT
  • Cris Eugster, EVP and Chief Sustainability Officer for CPS Energy (San Antonio)
  • Kevin Tuerff, Principal and President of EnviroMedia

In 2011, Texas experienced record heat and drought and the electric grid was stressed as a result. Though the Electric Reliability Council of Texas (ERCOT) took a proactive approach to dealing with the crisis, the potential still remains for economic loss caused by electric generation outages related to heat and drought. The drought is predicted to continue and action is needed to protect Texas’ power and economic viability. Given that it can provide the same amount of service while using less electricity, energy efficiency should be a significant part of the solution. Energy efficiency reduces waste, electric bills, emissions and water use needed for electric generation.

During the briefing, Dr. John Nielson-Gammon brought up the recent rain in Texas. He said that while the rain is great for taking people’s mind off the drought, it is not useful for setting us up for the summer of 2012 because it’s too little too late for our current situation. He added that climate change is an important enough factor in the drought that it must be considered in long-term water planning.

(Source: www.droughtmonitor.unl.edu)

Texas State Representative Donna Howard was in attendance and she posed a question about better coordination between state agencies. Though there is some coordination, there is no actual coordinated plan among and between state agencies to be thoughtful about planning for Texas’ future water and energy needs. Dr. Carey King pointed out that both the Texas Water and Development Board and the Texas Commission on Environmental Quality work on water issues, but it isn’t clear how power plants fit into water priorities. He stated that we don’t have an answer and that we need a better understanding of the breadth and depth of water issues.

The key takeaways from this briefing are that water and power are inextricably linked and the stress that the drought has had, and will continue to have, on our ecosystems and electric systems is a serious concern. This is not something that will go away as the climate will continue to change. Cleaner energy sources and greater energy efficiency will cut carbon pollution and help stabilize the climate, protecting our land, water, air and health. We need to find solutions now.

Posted in Climate change, Drought, Uncategorized | 1 Response