 It's Not Too Late
Energy affordability and security are top public concerns as the Northeast region prepares for the most expensive winter heating season ever. With home heating oil at $3 a gallon, natural gas prices double what they were last year, and electric distribution companies seeking rate increases of 20-30 percent to recover the higher cost of fuel, there is no doubt that more people than ever will face the difficult choice of heat, eat or pay the rent or mortgage. Businesses, too, will be impacted. With higher energy bills draining revenues, the ability to afford expansion, and, in some cases, maintain current employees, many businesses, too, will face hard choices.
Unfortunately, like the Gulf Coast communities recovering from the destruction of a record-breaking hurricane season, the Northeast cannot avoid the pain of record-breaking energy prices that threaten our economy. But we have tools to blunt the blow- chief among them increased energy efficiency. We can:
- Weatherize homes and businesses.
- Tune-up heating and cooling systems.
- Replace outdated heating, ventilation and air conditioning equipment with high efficiency equipment.
- Seal and balance leaky duct systems.
- Replace inefficient commercial refrigeration systems with new efficient ones.
- Replace incandescent bulbs with quality compact fluorescent lamps.
- Systematically re-commission or tune-up building energy systems.
- Replace old inefficient appliances with new ENERGY STAR appliances.
- Manage computer systems and other office plug loads to minimize wasteful energy use.
- Prepare facility maintenance staff to use best practices to operate and maintain buildings for comfort and efficiency.
Most homes and businesses can use these efficiency improvements to reduce energy use by 10 to 50 percent, with benefits lasting for years. Fortunately, the Northeast- no stranger to severe winter weather - has a broad, if under-utilized, infrastructure to provide these products and services.
However, we also need policy and political leadership to set a clear direction and remove barriers to realize the public benefits of increased energy efficiency. Oddly, for a region already shouldering higher than average energy prices, few states have assumed that mantle of leadership necessary to make increased efficiency a priority. Other than Maine and New York, Northeast governors do not have a cabinet level position to develop and direct the implementation of a comprehensive state energy plan. Indeed, earlier this year, the Massachusetts state energy office came within a whisper of being written out of business altogether. This leadership vacuum leaves state agency leaders- as well meaning and aware as some may be- wondering, "What are the priorities? Who has the ball? Where are the resources?"
This lack of leadership for clean and affordable state energy policies has not gone entirely unnoticed by some legislatures, which took action this year to help move their states towards energy independence (i.e., away from such a dangerous dependence on fossil fuels). The states of Rhode Island, New Jersey and New York this year joined Connecticut and Maryland in setting new appliance efficiency standards for a host of residential and commercial products. Connecticut also passed legislation to establish an energy efficiency portfolio standard and direct the states Department of Public Utility Control to open proceedings regarding rate reform for energy efficiency investment, as well as order the state's gas utilities to develop conservation plans.
In Vermont, a broad energy bill included, among other things, a least cost planning requirement and some ordered studies regarding a potential energy efficiency credits trading system. In Massachusetts, just last week, legislative leaders unveiled a package of emergency home heating assistance measures that included some efficiency tax credits. And, to their credit, several states have adopted climate change action plans that propose a substantial role for energy efficiency.
But more is needed to blunt the economic blow of soaring energy prices and to meet future energy needs in a manner that balances economic, environmental and quality of life concerns. So what can Northeast governors and legislatures do?
For the near-term:
- Adopt emergency tax incentives to help residents and businesses afford increased capital improvements to make homes and businesses more efficient (insulation, air sealing, HVAC system replacement, window replacement).
- Significantly increase funds for low-income weatherization and fuel assistance.
- Increase ratepayer-funding for gas and electric efficiency programs with a focus on programs that can provide immediate as well as long-term energy savings.
- Commit to programs to increase efficiency in state and local government.
For the longer-term:
- Set long-term energy policy goals to reduce dependence on high-risk, costly energy resources (e.g., offset energy growth with cost-effective efficiency).
- Adopt a state efficiency plan with coordinated policies that:
- Allocate carbon emission credits to energy efficiency.
- Establish efficiency portfolio standards to meet a growing percent of load.
- Maintain or expand societal benefit funds for efficiency.
- Remove regulatory barriers to increased efficiency.
- Require efficiency in transmission and distribution planning and cost-recovery.
- Require and support transmission system operators to include energy efficiency in transmission planning and resource solicitations.
- Adopt and support strong appliance efficiency standards.
- Maintain up-to-date building energy codes, and achieve high level of compliance.
- Lead by example in state and local government facilities.
- Establish a high-level clean energy policy coordinator to direct plan implementation and track results.
- Coordinate efficiency and clean energy policies within the state and across the region.
I suggest we take a lesson from the Gulf Coast disasters. Our federal government listened to those who said we couldn't afford to reinforce the levees in New Orleans or to develop more realistic disaster plans for the very likely occurrence of a devastating hurricane. That turned out to be a very tragic and costly mistake. Similarly, Northeast government leaders need to look past arguments that we can't afford to increase energy efficiency and other clean energy resources. To not plan for a future of spiraling fossil fuel prices is something we simply cannot afford do. Fortunately, it's not too late. But we need leadership now!
|
|
|
