A New ARRA for Energy Efficiency?
by Joel on November 10th, 2009
Like many in the energy efficiency industry, I believe the United States is on the cusp of a major transformation in how we think about energy, but not for the reasons usually given. To paraphrase Thomas Jefferson, “every [industry] needs a new revolution” – and I believe the American Recovery and Reinvestment Act (ARRA) may just do the trick!
My sense is that one of the most important impacts of ARRA will be the expansion of the participants in, and beneficiaries of, energy efficiency funding and programs. These new actors and interest groups, I hope, will bring needed changes that will make the industry more effective, broad-based, and transformational.
As I referenced in my blog post last month, my concerns reflect very deep seated reservations about the governance and oversight of efficiency programs and funding – especially, in regards to how the goals, evaluation metrics, and allocation processes are determined.
My hope is that ARRA funds will radically transform the equation because:
- A primary goal of ARRA programs is job growth, not to the exclusion of energy savings, but certainly valued equally to the Kwh and BTUs saved.
- ARRA has led to a proliferation of new actors within the energy efficiency industry. In the world of finance, for instance, there are now non-profits, community development financial institutions (CDFIs) (such as our affiliate, ShoreBank Enterprise Cascadia), utilities, governmental agencies, and many others that offer novel types of loans for energy saving improvements.
These unconventional lenders bring new energy and new concerns to the field of energy efficiency. For instance, for my colleagues in Portland, while reducing energy consumption is a priority, so too are creating social equity, job opportunities for disadvantaged populations, and proliferation in access to responsible credit for under-served communities. Reconciling this larger set of goals against the historical focus on energy savings alone will be an important challenge going forward.
My hope is that all of the energy unleashed by ARRA funding will lead to a radical transformation in the energy efficiency space. Underserved communities will be better represented in the sector and, in turn, begin to demand greater inclusion in utility sponsored programs. By doing so, they could become allies for the energy efficiency community and greater advocates for these programs and funding. That would be a welcome change, indeed!
Tags: American Recovery and Reinvestment Act, green banking, ShoreBank, ShoreBank Enterprise Cascadia, triple bottom line
