ShoreBank Blog

Be Careful What You Wish For

by Joel on February 2nd, 2009

Better keep those energy drinks close by, ‘cause we’re going to need ‘em

With record amounts of funding for energy efficiency and alternative energy likely to be included in the federal stimulus package, the practical implications of all of this money are beginning to set in.  Indeed, at the recent Midwest Energy Solutions conference, sponsored by the Midwest Energy Efficiency Alliance, discussion of the impending federal funding appeared to spark both euphoria and panic among industry professionals.

Clearly, the volume of spending will lead to a lot of new green collar jobs – the requisite number of knowledgeable contractors, program administrators, architects, and financiers simply doesn’t exist.  The amount of spending under discussion is many times (some say upwards of 30 times) the level currently deployed annually.  To put this in perspective, according to Sheree Dallas Branch, program manager with Wisconsin’s Department of Administration, approximately 100,000 homes are weatherized annually under existing DOE programs – and 10% of those are in Wisconsin alone.  The President’s plan calls for 2,000,000 homes to be weatherized.  For the mathematically challenged, that’s a very large increase.

I believe the funding offers an even more compelling opportunity.  Because most energy efficiency programs are tied to utility sponsored initiatives, evaluation centers almost exclusively on “cost effectiveness.”  This analysis looks at the costs to save the kWh or therm as compared to the cost to produce or procure them.  The analysis completely ignores other benefits, such as employment, social equity, carbon savings, or reductions in other harmful emissions.  The analysis also is completely detached from metrics the public cares most about – ones focusing on how individual households or communities are better off.  It is no wonder we have such trouble engaging public support for energy efficiency programs.

In contrast, the stimulus package, as the name implies, is focused on stimulus – economic output and job creation.  These are metrics that the public cares deeply about.  It is my sincere hope that the federal funding not only catalyzes the industry and marketplace, but even more fundamentally, alters the way we evaluate energy efficiency programs and how we communicate their benefits to the wider world.

Tags: community development, energy conservation loans, green banking, green jobs, Midwest Energy Efficiency Alliance, ShoreBank, triple bottom line

This entry was posted on Monday, February 2nd, 2009 and is filed under Green Collar. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.