Although landlords are ultimately responsible for a building’s energy efficiency, there are a number of steps which environmentally-friendly renters, some of whom pay their own utility bills, can take to reduce energy costs and consumption. So I am going to share with you some of the easy and convenient steps that we share with our ShoreBank customers and encourage building owners to pass along to their tenants.
*P.S. Many of the tips also apply to anyone owning or inhabiting a home, apartment, or condo.
1. Turn off unused lights and computers and replace incandescent light bulbs with compact fluorescent bulbs (CFLs).
2. Caulk and weather-strip windows and outside doors. For older windows, place a sheet of plastic over them and use two-way tape to affix it. The greatest source of heat loss in a home comes from the windows.
3. Remember to use the storm windows which help insulate the home and keep heat inside it.
4. Keep your drapes open in the winter to let sunlight naturally warm the room and home. And in the summer, keep them closed to prevent the place from getting too warm.
5. For each degree lower or higher you set the thermostat, you will save potentially two to 10 percent on heating or cooling costs. In the winter, keep the temperature set at 68 degrees during the day and 55 in the evening. Wearing a sweater or layered clothing will make the temperature more tolerable, especially on days when the bill arrives in the mail.
6. Clean the coils on the back of the refrigerators which contribute to about 15 percent of the total monthly electrical bill. This can help persuade your landlord to finally get around to replacing the old one with an ENERGY STAR model.
7. Get an electric blanket. Besides the joy and comfort that comes from getting into a bed at night with warm sheets, it is less expensive than heating your bedroom.
8. Move your furniture away from the exterior walls to create space between you and the cold walls. This will make space for the air to move around, making the air warmer.
9. Keep your radiator and heating vents clean from dust. Dust and dirt prevents heat from flowing into the rooms where you need it. It’s “no fun” to clean, but being cold and paying more for it can be even more painful.
10. Select ENERGY STAR appliances and products, and check efficiency ratings prior to purchasing.
Whether you own or rent, energy efficiency is everyone’s concern. Please share this information with friends, family and / or your landlord. It might even help some renters get a faster response to a lingering maintenance issue when the building owner understands how it will reduce their monthly costs while adding comfort and value to the property.
In fact many of the improvements are eligible for tax deductions and may help lower income taxes. With the April tax deadline fast approaching, I will explore the tax benefits of buying a home and incorporating energy saving improvements in your 2009 tax return in my next blog entry.
I can’t think of many better New Year’s resolutions than one promising to make 2010 the time for improving your home’s energy efficiency. While the cold weather has descended on most regions of the country, making sure your home is well insulated and reducing energy costs never goes out of season. To help save you 25 to 45% per month on your utility bills, while protecting the planet and making your home more comfortable, I have some inexpensive and easy tips for going about it.
Getting Started: An Energy Audit
Winter is the ideal time for a certified auditor to perform a Blower Door Test which will determine how airtight your home really is.
From our experience with the ShoreBank Home Energy Conservation Loan Program, I suggest contacting a professional to perform an in-home inspection for air leaks, checking insulation and the overall efficiency of your home’s mechanicals and appliances to help determine which improvements offer the best value and environmental impact.
Insulate Your Attic
Be certain the attic hatch is well insulated. Heat loss due to poor insulation forces the furnace to work overtime, costing you more to heat your home.
Furnace
Have the furnace serviced and change its filters on a monthly basis to ensure maximum efficiency. Clogged air filters can make the heating system work harder and is more costly.
Install a Programmable Thermostat
A programmable thermostat will enable you to lower the temperature when the home is empty or in the evening while you’re asleep. And it can be adjusted for comfort when you are at home.
Check Windows
Quality storm windows not only improve energy efficiency, but also are eligible for a $1,500 tax credit in 2009 and 2010 from the federal government, thanks to the America Recovery and Reinvestment Act signed into law by President Obama last February. Plus you can include the cost of installation for these products.
Older windows can be repaired and continue to be efficient by sealing gaps with caulk, applying new glazing compound, replacing broken panes and repairing loose parts and installing weather stripping.
Decorate
One of my personal favorites, using lined draperies, working shutters or insulated shades, helps cut heat loss.
More information about energy-efficient improvements and tax credits is also available from the Alliance to Save Energy at www.ase.org.
Close Fireplace Dampers
When not in use, an open damper allows nearly 10% of the heat in your home to escape, according to “Preservation” magazine.
Caulk Opening and Holes
For areas around mail chutes, outdoor faucets, cable television and utility entrances, use exterior-grade caulking on the outside of your home.
Ceiling Fans
Set your fans to the lowest speed so the direction of rotation and the blades push the warm air down from the ceiling.
Bathroom Fans
Ensure the fans have functioning dampers to keep the cold air from coming in.
Finally, let’s make it happen in 2010. Remember, one-third of all dangerous greenhouse gas emissions released into the environment emanate from our homes. The small investment we make in improving our home is not only a good return on investment but also helps to stimulate local economies and supports good paying jobs.
It wasn’t long ago developers thought “green” design made sense only in upscale markets, not in the low to moderate income neighborhoods where we at ShoreBank focus. Thankfully, much has changed in the past few years.
When we began planning for our application for a New Markets Tax Credit allocation–a federal tax credit for commercial investments in low income communities–we had numerous discussions internally about how to use the program to promote green projects in Chicago, Detroit, and Cleveland. Eventually, we made the controversial decision to focus exclusively on financing/supporting projects involving green buildings, alternative energy installations, and energy efficiency retrofits. The assumption was that we could use the subsidy provided by the tax credits to incent borrowers to pursue LEED certification or capital intensive but cost effective green technologies and design features. We were convinced that we would have to tussle with potential investees about the requirements and hold fast to our commitments in the face of significant push-back from the project sponsors.
Interestingly, now that we have been awarded a $35 million allocation of the tax credits, we are discovering a vastly different landscape. Our growing pipeline of potential projects consists of a wide array of building types: retail, hotel, mixed-use, industrial, education, and office. Perhaps the only commonality among them is their intent to achieve at least a LEED Silver certification and inclusion of alternative energy systems and technologies. More telling, all of the sponsors were committed to achieving a LEED rating prior to reaching out to us about tapping our New Markets Tax Credits allocation. We did not have to push the developers or even initiate the conversation about choosing to build green. LEED certification was part and parcel of their plans from the outset.
There are a variety of reasons for the decisions to build green. In many cases, doing so is required for other types of public subsidy, such as TIF assistance, Enterprise Zone benefits, or allocations of low income housing tax credits. But reasons extend beyond these governmental requirements. In some cases, the developers believe “green” offers a competitive advantage. In other cases, sustainability is a fundamental component of the developers’ “triple bottom line” objectives. An example of the latter is the redevelopment project planned for a vacant commercial building on Chicago’s southeast side, not far from some of the planned Olympic venues. For the developer, this green project offers a profitable way to promote development in this very needy tract–the tract is under 20% of the area median income and has a poverty rate above 40%, making it one of poorest in the city. Yet, this project is about bringing not only 100 new jobs to this underserved community, but also healthy food options to residents of this food desert through the opening of an organic produce store.
We are pleased to see this progression in the marketplace and excited to help further the green economy by helping these great projects get off the ground (none could move forward without the subsidy provided by these tax credits). With developers more open to green requirements than we expected, we can push further by catalyzing creation of new types of financial modes involving third party ownership of alternative energy systems, being more stringent around energy efficiency requirements (as well as “green” design), and promoting greater opportunity for residents.
Last week, I attended an invite-only discussion coordinated by the Department of Energy’s Energy Efficiency and Renewable Energy (EERE) group about the business models needed to exponentially expand energy efficiency within the residential sector. This sector is clearly a priority for the Department of Energy and President Obama. Given how inefficient most homes are and the potential for a residential energy efficiency initiative to drive significant job creation, the government will be directing billions in the coming months on this sector.
The discussion covered the usual issues such as the lack of uniform standards; inadequate processes for verification of savings; problems in the credit markets; and ineffective marketing approaches and messages. A more interesting facet of the discussion related to the philosophical differences among the attendees. One critical question centered on the marketing messages needed to catalyze consumer behavior. One school of thought focused on the need to improve how we communicate the financial benefits of energy efficiency to homeowners. A second approach suggested that emphasizing other types of benefits, such as safety, comfort, etc., may be more effective than sticking to the usual economic rationale. While I can see merits in both, I find myself siding with the latter approach. In particular, I look with envy at the way the organic food sector has just exploded – and this is a product that typically costs more than the alternatives, not less.
The second philosophical question reflects whether the large governmental influx of funds will help catalyze the marketplace or stymie its development. In particular, there is some question about whether the government will let the marketplace lead the way or will overly direct how it develops. Personally, I am fearful that in their haste to get stimulus funds into the community quickly, DOE will rely heavily on old models and existing programs. While many, such as the ENERGY STAR brand, have proven quite effective, we need to create and deploy new models, most of which don’t exist today. Moreover, due to the public ire about waste and fraud, officials are rightly concerned about demonstrating success. Yet, experimentation, and, indeed, failure, are critical for market development and expansion. Neither is likely to be seen by DOE as a measure of success, nor a milestone to be touted to the public.
The City of Chicago recently released its comprehensive and innovative Chicago Climate Action Plan. Chicago now has a very good baseline of existing emissions and a blueprint for its goals of reducing Chicago’s greenhouse gas emissions to 80% of 1990 levels by 2050. Thanks to the leadership of Mayor Daley and tremendous efforts by the City’s Department of Environment, the Center for Neighborhood Technology, and others, such as ShoreBank Corporation board member and former head of the MacArthur Foundation, Adele Simmons, the City now has a clear understanding of what it will take to achieve its ambitious goals.
The steps required to meet the goals are staggering. For instance, the plan calls for retrofitting 400,000 units of housing by 2020. Currently, approximately only 6,000 residences are weatherized annually. This figure should rise substantially given the programs authorized in President Obama’s stimulus package. Even so, the ramp up is considerable.
Interestingly, while the plan offers a great deal of detail on many facets, nowhere does it quantify the expected costs and capital needs for meeting the objectives. Indeed, the capital needs are likely significant. While the exact figures are difficult to calculate since each building will have a different level of capital investment, assuming $7,000 per unit of housing (the estimate used for weatherization costs in the stimulus bill), the housing portion comes to $2.8 billion, and this doesn’t even include the additional costs of more expensive items, such as windows, let alone, higher cost technologies, including geothermal, solar thermal or photovoltaic systems. More likely, given the costs of these items, the capital needs, just for the housing portion (and not including the costs to retrofit the 23,000 commercial buildings), exceeds $4-5 billion.
Such a level of investment would be a huge boost to the region’s economy – indeed, the spending on these retrofits is likely to create tens of thousands of good paying jobs directly, and indirectly support many times that number in the manufacturing, retail and ancillary industries. All told, the investment could support nearly 500,000 jobs regionally. And considering the highest unemployment in 25 years, the dividend on the investment will be an enormous one.
We have seen firsthand how these types of investments impact individuals, families and communities. From the drillers being hired by a geothermal company such as Indie Energy, to the energy raters and installers, active in our Homeowners’ Energy Conservation Loan program, we know that every dollar makes a huge difference reducing energy costs, creating jobs, and protecting the planet, whether its in Chicago, or in any other densely built area of the nation.
To learn more about the Chicago Climate Action Plan’s environmental impact, check out my colleague Karen’s earlier post here.
Guest Contributor: Ryan Schommer, Project Manager, ShoreBank Building Services
We hear a lot about the environmental impact of cars in the aftermath of record gas prices and global warming. What we do not hear about are the actual parking lots. As a member of the Building Services department, I am responsible for building and redesigning our physical locations to make them more sustainable and energy efficient. We want our designs to serve as models for future upgrades to any physical component of our 35 year history. So, when the bank decided to construct a new parking lot, I was excited to explore options to make it more sustainable.
We wanted our parking lots to provide an environmental impact for those for whom public transportation to our locations is not a viable option despite its accessibility. And fewer parking lots features impact our safety, security, and environment more than out lights - and after careful analysis, LED (light emitting diodes) outdoor lights were clear financial and environmental winners. That is why ShoreBank decided to initiate a pilot program to install outdoor LED lights in the parking lots at one of our branch campuses. In doing so, we became one of the first companies in Chicago to install exterior LED lighting.
LED outdoor lights use 65% less energy and last 7 years longer than either HID or florescent fixtures. For ShoreBank, this energy efficiency will result in an annual reduction of 73000 kilowatt hours, $6000 in energy expenses, and 134000 lbs of carbon emissions or the equivalent of 13 cars (leaving extra space in those lots for you to park). They have a useful life of 12 years, so that also means less waste for landfills.*
Of course, we still want our neighborhoods to be lit enough to deter crime but not so much that our neighbors complain! The icing on the cake is that LED is Dark Sky compliant. That means it provides a truer light designed with control shields to prevent lighting upward or shining into neighbors’ homes. So they keep the light where we want it-aiding in the restoration of the night sky while still helping security cameras and overall area visibility.
Thanks to this project, we now have a sustainable model for 3 more lots to be converted to exterior LED lighting in 2009! This will reduce operating expenses and our carbon footprint. This visible example of ShoreBank’s efforts only illuminates the surface of what we can do, and will do, in being truly sustainable. And while we may have only a few parking lots remaining to receive new lighting, together they can provide a big impact and payback, one LED light at a time. And we are proud to have paved Chicago’s way.
On yet another freezing day in Chicago, it might seem odd to contemplate days when the temperature is over 100 degrees. But that is a great metric for what we are facing with climate change. Chicago currently has about two days a year with temperatures above 100 degrees. If we do nothing about greenhouse gas emissions, by the end of the century, Chicago is projected to have 31 such days. Essentially, each year we would have a month of extreme heat. And while I may not like the cold, I really don’t like extreme heat.
Thinking about roasting in the future is no fun and considering the broader impacts on buildings, ecosystems, and other structures is even less pleasant. However, I recently attended a summit by the Chicago Climate Action Plan, and it had some uplifting news. The City of Chicago has broken down the challenge of addressing climate change into specific tactics, and at the meeting they gave updates on actual progress.
Take housing, for example. Buildings overall are the key issue for Chicago; 70% of emissions come from this sector. This is often a surprise for people because so often we focus only on the emissions associated with transportation. (Transportation is also huge, but only 21%.) Within buildings, you have the housing sector. The city has actually documented retrofits to over 6,000 units of residential housing that have been completed in the past year. Completed! These units are seeing double-digit reductions in energy use – preventing emissions and saving money.
Now 6,000 units may sound like a lot, but the goal is to complete 400,000 by 2020 to mitigate the 1.5 million metric tons of carbon dioxide that need to be offset. So there is huge growth to come. While many organizations will be driving some of these changes, ShoreBank looks forward continuing to encourage more property owners to incorporate energy saving improvements by offering the financial services and technical assistance that make it possible. We like summer – we want to keep it livable!
Although it’s terribly cliché to do so, given that change in the air and the fact that uncertainty clouds any economic prognostication, I will take this opportunity to offer a few predictions for 2009. I must admit, however, that as a Cubs fan, my DNA is programmed for eternal optimism:
1. The acronym PPA (Power Purchase Agreement) will become common parlance throughout the country, not just on the coasts. With President-elect Obama pronouncing the doubling of alternate energy a central goal of his administration and financing for any project still difficult to obtain under nearly any circumstance, specialty financial vehicles such as the PPA will be the preferred mechanism for getting solar projects off the ground. 2. Within the green building industry, interest in existing buildings will take precedence over the previous focus on new construction. As new projects have trouble getting off the ground, more attention will be paid to making our existing homes, offices and community facilities more efficient and environmentally sound.
3. This focus on existing buildings will lead to a fundamental shift in how we evaluate “green” buildings. We will no longer look to LEED Platinum as the preeminent standard, but instead to specific gains in energy and water efficiency. We can only hope that in 2009, when homeowners are asked about their HERS rating, there will no longer will be that awkwardness reminiscent of high school days gone by.
4. Because overall construction levels will fall significantly, green building’s share of total construction activity will exceed 10% – the level projected by many to be reached in 2010.
5. Interest in energy/water efficiency and sustainable practices may finally catch on with the general public, altering even kitchen and bath remodeling decisions.
6. The US will finally come to grips with its most pressing construction problem – the fact that construction practices are evaluated almost entirely on completion metrics (“on-time” and “on-budget”) and only rarely on performance metrics. Indeed, by far the most common concern raised by small contactors about green practices is not their lack of “expertise” in this area. It is the fact that their work is evaluated against design, product and performance specifications. Until we realize that we have never truly evaluated the performance of most contractors, we will not see significant reductions in energy consumption, nor I believe, come up with a pragmatic mechanism for promoting green collar job opportunities for smaller, under-capitalized firms that must now “guarantee” performance over the long term.
An energy efficiency financing option receiving a significant amount of attention in policy discussions is “on-bill” financing. On-bill financing involves providing a utility-extending credit for various energy efficiency improvements, and then adding the ensuing loan payments to the beneficiaries’ utility bills. Proponents of the approach point to several benefits. For one, utilities already have elaborate billing systems, so transaction costs are limited – it’s just one more line item on an established customer’s bill. For another, there exists a notion that consumers are leery of having another bill to pay, so households may be more willing to undertake the improvements if the ensuing payments are simply added to an ongoing bill. Finally, there is a sentiment that customers will go out of their way to make payments if they are part of the household’s utility bill since failing to do so could result in “shut-offs” or cessation of utility service.
While I see potential value in the on-bill financing notion, I think we should critically examine the underlying rationale before moving too quickly to implement this concept.
Clearly, there is some validity to the notion that on-bill financing would have low transaction costs – especially for smaller projects, such as those costing less than $5,000. Yet, I am not convinced these costs are less manageable for other types of institutions, such as credit card companies, that routinely extend credit for even lower amounts.
Secondly, I am skeptical that very many efficiency projects have been derailed because of consumers’ concerns about having another bill to pay. With the average household possessing seven different credit cards, and with over-leveraged consumers being one of the key drivers of the current financial meltdown, it seems hard to imagine consumers running from any form of credit.
Most of all, however, I am reluctant to believe utilities will have lower losses than other lending institutions. If foreclosures are at record levels, utility payments must be faltering as well. Certainly, local press reports here in Chicago have indicated that shut-offs have risen dramatically at both the natural gas and electric utilities.
Given that utilities will charge all rate-payers for any losses that ensue, it would seem prudent to carefully analyze the risks and realities of the approach. My concern is that if on-bill financing is not implemented carefully, it could easily become a regressive tax on low income households that act responsibly and manage their financial obligations appropriately.
To ensure households have access to appropriate and responsible financing options for energy efficiency projects, ShoreBank continues to explore ways to use private capital to underwrite these critically important investments.
Green Festival™, a joint project of Global Exchange and Co-Op America, kicks off a three day festival today in San Francisco. ShoreBank will be there, and is very excited to sponsor tonight’s After Green Festival Party at Mars Bar. If you’re in San Francisco, we invite you to join other green leaders at the event to network and discuss how we can encourage environmental sustainability to change the world. But of course, exciting green innovation and dialogue should not be limited to one location. For example, the story of our clients Tim and Charles Heppner reminds us all that you don’t have to be in San Francisco to implement a ‘do-it-yourself’ approach to ‘greening’ the world.
Brothers Tim and Charles Heppner are rebuilding a 100 year-old wood frame single family residence on the South Side of Chicago, and are implementing energy efficiency improvements that will make it the greenest home in the city! Many DIY projects focus on interior finishes or fixtures while missing the energy basics, but here they are addressed head-on. In addition to the usual insulating strategies, triple-glazed windows with deep overhangs will be used for passive solar heating. The home will have no incandescent lights (perhaps a first in modern Chicago renovation). A shallow hydronic earth-loop will preheat or precool air entering the energy recovery ventilator – this simplified take on a ground-source heat pump (minus the heat pump) may also be a first in Chicago. Rough-ins for future solar electric or hot water panels will make it easy for the brothers to add these features over time.
Tim and Charles began work on this project by deconstructing the internal structure of the original house, reclaiming hundreds of linear feet of old growth forest wood framing, hardwood flooring, sub-flooring and joists. They also recycled all the metal, concrete, glass blocks and windows with the assistance of a local scrapper. All their new materials are required to meet at least one of the following criteria: sustainable, durable, recycled/recovered content, produced locally, low or no VOC, formaldehyde free, plantation grown, rapidly renewable, or FSC certified. They intend to utilize the reclaimed materials for framing up window openings, reinstalling hardwood flooring and building custom kitchen cabinets.
The home takes advantage of the ample property surrounding it by including a large rain garden and bioswale in addition to a vegetated garage roof. Crushed limestone will be used in place of concrete for all sidewalks, addressing both stormwater management and urban heat island. A new reflective metal roof will be installed – a rarity in the shingle-loving Midwest.
We are really proud to be a part of Tim and Charles’ project. Watch and listen to their story and let it inspire you to change the world.
Although landlords are ultimately responsible for a building’s energy efficiency, there are a number of steps which environmentally-friendly renters, some of whom pay their own utility bills, can take to reduce energy costs and consumption. So I am going to share with you some of the easy and convenient steps that we share with our ShoreBank customers and encourage building owners to pass along to their tenants.
5. For each degree lower or higher you set the thermostat, you will save potentially two to 10 percent on heating or cooling costs. In the winter, keep the temperature set at 68 degrees during the day and 55 in the evening. Wearing a sweater or layered clothing will make the temperature more tolerable, especially on days when the bill arrives in the mail.
I can’t think of many better New Year’s resolutions than one promising to make 2010 the time for improving your home’s energy efficiency. While the cold weather has descended on most regions of the country, making sure your home is well insulated and reducing energy costs never goes out of season. To help save you 25 to 45% per month on your utility bills, while protecting the planet and making your home more comfortable, I have some inexpensive and easy tips for going about it.
Interestingly, now that we have been awarded a $35 million allocation of the tax credits, we are discovering a vastly different landscape. Our growing pipeline of potential projects consists of a wide array of building types: retail, hotel, mixed-use, industrial, education, and office. Perhaps the only commonality among them is their intent to achieve at least a LEED Silver certification and inclusion of alternative energy systems and technologies. More telling, all of the sponsors were committed to achieving a LEED rating prior to reaching out to us about tapping our New Markets Tax Credits allocation. We did not have to push the developers or even initiate the conversation about choosing to build green. LEED certification was part and parcel of their plans from the outset.
The second philosophical question reflects whether the large governmental influx of funds will help catalyze the marketplace or stymie its development. In particular, there is some question about whether the government will let the marketplace lead the way or will overly direct how it develops. Personally, I am fearful that in their haste to get stimulus funds into the community quickly, DOE will rely heavily on old models and existing programs. While many, such as the ENERGY STAR brand, have proven quite effective, we need to create and deploy new models, most of which don’t exist today. Moreover, due to the public ire about waste and fraud, officials are rightly concerned about demonstrating success. Yet, experimentation, and, indeed, failure, are critical for market development and expansion. Neither is likely to be seen by DOE as a measure of success, nor a milestone to be touted to the public.
Interestingly, while the plan offers a great deal of detail on many facets, nowhere does it quantify the expected costs and capital needs for meeting the objectives. Indeed, the capital needs are likely significant. While the exact figures are difficult to calculate since each building will have a different level of capital investment, assuming $7,000 per unit of housing (the estimate used for weatherization costs in the stimulus bill), the housing portion comes to $2.8 billion, and this doesn’t even include the additional costs of more expensive items, such as windows, let alone, higher cost technologies, including geothermal, solar thermal or photovoltaic systems. More likely, given the costs of these items, the capital needs, just for the housing portion (and not including the costs to retrofit the 23,000 commercial buildings), exceeds $4-5 billion.
We hear a lot about the environmental impact of cars in the aftermath of record gas prices and global warming. What we do not hear about are the actual parking lots. As a member of the Building Services department, I am responsible for building and redesigning our physical locations to make them more sustainable and energy efficient. We want our designs to serve as models for future upgrades to any physical component of our 35 year history. So, when the bank decided to construct a new parking lot, I was excited to explore options to make it more sustainable.
Take housing, for example. Buildings overall are the key issue for Chicago; 70% of emissions come from this sector. This is often a surprise for people because so often we focus only on the emissions associated with transportation. (Transportation is also huge, but only 21%.) Within buildings, you have the housing sector. The city has actually documented retrofits to over 6,000 units of residential housing that have been completed in the past year. Completed! These units are seeing double-digit reductions in energy use – preventing emissions and saving money.
