Energy Exchange

America’s Schools On The ABCs Of Energy Efficiency

As part of my role at EDF, I keep track of stories about the benefits of energy efficiency. By that, I don’t just mean data and figures, rather stories about the real, tangible and positive impacts saving energy can have on everyday people. We live in a data-driven world, especially those of us who work on energy and climate issues, but it’s the stories about people that really stay with us. In the past few months, I’ve noticed a quite a few stories from local papers around the country discussing the benefits that schools have seen from implementing customer, or demand-side, solutions – such as energy efficiency, on-site renewables, like rooftop solar, and demand response (DR) initiatives – which allow customers to voluntarily reduce their high electricity use and receive a payment for doing so in the process.

For example, a story from the Louisville, Kentucky National Public Radio station WFPL covering the nation’s first net-zero school recently caught my attention.  To be considered a true “net-zero” building is an impressive feat, because it means the facility’s net annual energy consumption, AND its carbon footprint, is zero.

The featured school, Richardsville Elementary in Warren County, has made some impressive improvements, from installing geothermal heating and cooling, bamboo gym floors, solar panels on the school rooftop and in the parking lot, efficient cooking technologies in the cafeteria to using a ton of natural lighting. As a result, the school receives zero utility bills. But the two most compelling pieces of this story are the energy costs and the educational opportunities.

Kentucky has some of the cheapest electricity prices in the country. Many states, particularly in the southern U.S., also have low electricity prices—meaning, the cost incentive is not as powerful for energy efficiency. But I would argue that, regardless of electricity prices, schools always have an incentive to save money. With schools, for every energy dollar saved, one more dollar goes to good teachers, textbooks and computers. And the non-monetary incentives are extra important when talking about children, whose developing lungs need the cleaner, indoor air and more natural lighting that come with efficiently-designed schools, as detailed in my previous post on schools. Read More »

Posted in Energy Efficiency, Renewable Energy / Read 2 Responses

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

Central Texas Workshop Discusses Opportunities For Resiliency During Extreme Weather Events

This commentary was originally posted on our Texas Clean Air Matters blog.

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 Nobilis. 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.

Read More »

Posted in Energy Efficiency, Energy-Water Nexus, Texas / Comments are closed

When We Save Energy In Texas, We Also Save Water

Last week, the Texas Coalition for Water, Energy and Economic Security (TCWEES), of which EDF is a member, held a legislative briefing at the Texas Capitol titled Energy & Water, Dollars & Sense: Improving security and maximizing benefits to Texas businesses and residents. The briefing focused on the nexus of water and energy, and furthered the idea that where you save energy, you save water too. The briefing included a panel discussion and a question and answer session.

State Representative Lyle Larson from San Antonio welcomed attendees, a speaker that is well-suited to talk about water issues. Before becoming a state legislator, he served on San Antonio’s City Council, a city with one of the best water conservation programs in the country. Representative Larson started with an interesting point: In addition to the physical issues of water scarcity, we also need to resolve the psychological issues of water resources.

People simply do not think of water as a scarce resource, despite the multi-year droughts we’ve seen in Texas. Addressing water scarcity has been done in much the same way as system-wide power shortages: in a short term, reactive way, rather than a long term, proactive way. And we will never be able to meet our energy or water needs of our growing populations by being short-sighted.

Representative Larson said that water is the number one impediment to business no matter where you are in the world. Water-rich countries will take American jobs if we can’t address our scarcity, and water-rich states will take Texan jobs. We don’t deploy best management practices in this state when it comes to water. And calling for more water infrastructure is great, but conservation is going to save significantly more water than new infrastructure will. Read More »

Posted in Energy Efficiency, Energy-Water Nexus, Texas / Tagged | Comments are closed

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

This commentary was originally posted on EDF’s Texas Clean Air Matters blog.

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, Texas / Comments are closed

On-Bill Repayment: A Way To Eliminate The Upfront Costs For Energy Efficiency Projects

When a state is facing electric resource shortages, like Texas is, it’s just common sense to explore all the ways to make our electric use more efficient. We know efficiency makes sense – in terms of grid reliability, lower emissions, and reduced costs to ratepayers. But there is a barrier to some ratepayers in implementing more energy efficiency: upfront costs. Several options currently exist to finance efficiency, such as home equity loans and incentive programs through utilities. But what about creating a market to allow private investors to invest in the market by offering lower rates for utility customers by ensuring some security through repayment on the utility bill? That’s what on-bill repayment aims to do.

On-bill repayment (OBR) offers an opportunity for home and building owners to finance energy efficiency and renewable electricity generation projects through cost-saving loans from third-party investors. The loans are repaid through customer’s utility bills.  The money comes from private sector lenders at no cost to ratepayers or taxpayers.  OBR also allows for longer term loans with lower interest rates.

The general concept of OBR is not new. Several utilities around the country have instituted on-bill finance programs. However, there is a key difference. On-bill finance programs use utility money to finance the program, thus creating an additional cost for the ratepayers. On-bill repayment would use new money from third parties, such as banks, to create a new market that is secure, cost effective, and enables more bang for the buck in terms of what the ratepayer receives.

OBR is a flexible program that works for a wide variety of properties and vendor business models.  In some programs, contractors are told what solutions can be offered to each customer.  OBR, on the other hand, allows each contractor or vendor significant latitude to design solutions that meet the needs for their customers.  This could include everything from insulation upgrades for residential customers or lighting upgrades for restaurants all the way to deep retrofits of commercial or industrial properties.  All of these would be delivered by the private sector and would be completely voluntary to each property owner.

Benefits of OBR include:

  • Job growth: We estimate that it could generate 100,000 new jobs to install energy efficiency and renewable electricity.
  • New market creation: We estimate that OBR could generate $13.5 billion over a decade in private sector investments in energy efficiency, renewable generation, and demand response projects.
  • Ratepayer and state savings: OBR would promote energy efficiency and distributed energy resources that avoid the cost of expensive new power plants and other high-cost generation—saving ratepayers $4.8 billion in energy bills.
  • Flexibility for contractors and vendors: Program participants would have considerable discretion to design product offerings and go-to-market strategies to meet their customers’ needs.

In a state like Texas that prides itself on making its economy attractive to investors and creating markets, especially in the energy sector, OBR could be an effective tool to opening up the state to a private sector solution that can ameliorate our Texas energy crunch. Efficiency is an investment that makes sense for Texas. As utilities face increasing demands on their energy resources, and fewer dollars to spend on efficiency for their customers, giving them another tool, energized by funds from the private market, will benefit the entire state.

Posted in Energy Efficiency, On-bill repayment, Texas / Read 1 Response

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

(Source: www.businessinsider.com)

This commentary was originally posted on the Texas Clean Air Matters Blog.

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, Energy-Water Nexus, Texas / Comments are closed