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HOUSEHOLD ENERGY EFFICIENCY

HOUSEHOLD ENERGY EFFICIENCY. What you and the U.S. should be doing to help reduce energy consumption By Amy Lynn Strege astrege@kentlaw.edu. Why worry?. The less energy we use, the less that will have to be created (AKA “sixth fuel”)

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HOUSEHOLD ENERGY EFFICIENCY

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  1. HOUSEHOLD ENERGY EFFICIENCY What you and the U.S. should be doing to help reduce energy consumption By Amy Lynn Strege astrege@kentlaw.edu

  2. Why worry? • The less energy we use, the less that will have to be created (AKA “sixth fuel”) • Small changes can add up to big benefits if everybody does their part • The change must begin at home before others will jump on board

  3. Sixth Fuel • Energy efficiency is often called the sixth fuel • The less energy you use, the less that will have to be created by some other energy source • Energy Efficiency can improve the overall energy picture no matter what the underlying energy source is

  4. Efficiency Measurements • Obviously, the more energy efficient something is, the better it is • But how can I tell what efficiency is? • There are several ways to measure efficiency; but there are also some problems

  5. Measurement Problems • The more data collected, the more expensive it is to analyze • Some data hard to obtain: Respondent burden leads to non-participation or inaccurate data • Global differences means difficulty in comparisons

  6. Energy Efficiency Defined • Measurement relates to policy goal: Different measurement indicators for different goals: • Higher productivity • Resource conservation • Economic well-being • Improved environmental quality

  7. Examples • If goal is Global Warming abatement, then look at absolute Carbon emissions • If goal is Economic Productivity, look at energy expenditure per dollar of GDP • If goal is Environmental Quality, then look at Carbon emission intensity

  8. Intensity as Surrogate • Energy Intensity is ratio of energy consumption to some measure of demand • Choice of demand measure is critical, as it is connected to the policy goal • Transportation- either gallon per passenger mile or gallon per vehicle mile would be appropriate, depending on goal

  9. Most data is based on Intensity • Have to look at the underlying structure of the indicator • Energy intensity improvements may mask structural or behavioral trends that actually lessen true energy efficiency • America’s average mile per gallons have reduced, but an increasing trend away from small cars and towards SUV’s means that better efficiency has been avoided

  10. U.S. Expenditures per GDP

  11. Increased Demand

  12. Statutes • Energy Policy and Conservation Act (EPCA) of 1975: voluntary minimum efficiency standards for ordinary appliances like freezers, TV’s, etc. • National Appliance Energy Conservation Act (NAECA) of 1987: made these standards mandatory

  13. How History Helps • In order to understand what we need to do in the future, we have to understand how America has worked in the past • Luckily, data exists to see what America’s energy trends have been like, historically

  14. Residential Energy Consumption Survey (RECS) • Every 3 years by the EIA • National sample survey of more than 5,000 residential housing units and their energy suppliers • Only comprehensive source of national-level data on energy consumption for the residential sector

  15. RECS Trends

  16. Appliances • Every item that is plugged in to the wall in your home is an appliance- and America is addicted to them • Every year, we get a new Foreman Grill or Smoothie Machine- and they all take electricity to run

  17. Lighting • 24-hr economy means more work done at night • Think about how late you were up for your last major project- and how many hours your lights were on • Now multiply that by the number of law school students in America • Compact Fluorescents are a good solution

  18. What Can the Law do? • Shouldn’t we be helping subsidize energy efficient upgrades? • Should energy audits be required with home inspections? • What about smart thermometers in every home? • What about energy assistance grants? • What are we doing right now?

  19. EPAct 2005 • There are several provisions in the Energy Policy Act of 2005 directed at improving residential energy efficiency

  20. Federal Efficiency • § 102: 20% Reduction in Congressional buildings by 2015 • § 104: Requirement to obtain energy-efficient products • § 111: Energy efficiency increase on federal lands: “To the extent practical”

  21. Weatherization • § 122: Increased Funding: $500,000,000 for fiscal year 2006, $600,000,000 for fiscal year 2007, and $700,000,000 for fiscal year 2008 • For low-income households only

  22. Public Energy Education Program • § 133: Conference of: • (1) industrial firms; • (2) professional societies; • (3) educational organizations; • (4) trade associations; and • (5) governmental agencies

  23. Public Energy Education Program • § 133: Goals: national public energy education program to examine and recognize interrelationships between energy sources • (A) conservation and energy efficiency; • (B) the role of energy use in the economy; and • (C) the impact of energy use on the environment.

  24. Efficient Public Housing • §§ 151-154: • Variety of programs to increase efficiency in public housing: • Lighting • Appliances • Building Standards • Space Heating

  25. Subtitle A: Energy Efficiency • § 911: OBJECTIVES: research, development, demonstration, and commercial application of the following goals: • (A) Increasing energy efficiency of vehicles, buildings, and industrial processes • (B) Reducing demand for energy, especially energy from foreign sources • (C) Reducing cost of energy; making economy more efficient and competitive • (D) Improving energy security • (E) Reducing the environmental impact of energy-related activities

  26. Unanswered Questions • Are these goals good goals? • Is there any goal left out? • Can one meet all these goals at the same time, and if not, which one should be preferred?

  27. How to Meet these Goals? • § 911: PROGRAMS: • (A) advanced, cost-effective technologies to improve the energy efficiency and environmental performance of vehicles • (B) cost-effective technologies, for new construction and retrofit, to improve the energy efficiency and environmental performance of buildings, using a whole-buildings approach, including onsite renewable energy generation;

  28. How to Meet these Goals? • (C) advanced technologies to improve the energy efficiency, environmental performance, and process efficiency of energy-intensive and waste-intensive industries; and • (D) advanced control devices to improve the energy efficiency of electric motors, including those used in industrial processes, heating, ventilation, and cooling

  29. How Much $ • (1) $783,000,000 for fiscal year 2007; • (2) $865,000,000 for fiscal year 2008; and • (3) $952,000,000 for fiscal year 2009

  30. How is Money Spent? • (1) § 912. Next Generation Lighting Initiative: $50,000,000 for each of fiscal years 2007 through 2009 • (2) § 915: Electric Vehicle Battery Program: $7,000,000 for each of fiscal years 2007 through 2009

  31. How is Money Spent? • (3) § 911: Energy Efficiency of Vehicles: • (A) $200,000,000 for fiscal year 2007; • (B) $270,000,000 for fiscal year 2008; and • (C) $310,000,000 for fiscal year 2009 • (4) § 911: Energy Efficiency of Electric motors, $2,000,000 for each of fiscal years 2007 and 2008

  32. § 912. Next Generation Lighting Initiative • OBJECTIVES: To develop advanced solid-state organic and inorganic lighting technologies based on white light emitting diodes (“LED’s”) that, compared to incandescent and fluorescent lighting technologies, are longer lasting, are more energy-efficient and cost-competitive, and have less environmental impact

  33. Where’s the Money? • Research Grants • Industry Alliance formation & administration • Development & demonstration projects • Approved by Industry Alliance • Conducted in a cost-sharing method

  34. Other Incentives • Tax Credits: § 1332: For construction of new energy efficient homes: • Has to be constructed by a qualified contractor • Has to be acquired for residential use within the same tax year • Includes substantial reconstruction and rehabilitation • Must save at least 50% of average consumption of comparable units • Building envelope responsible for at least 1.5 of that 50% savings

  35. Other Credits • Tax Credits: § 1332: for new energy efficient “Manufactured” homes: • Same as constructed homes except: • Must save at least 30% of average consumption of comparable units • Building envelope responsible for at least 1.3 of that 50% savings • Meets Energy Star labeling provisions

  36. Other Credits • Tax Credits: § 1333: Certain Nonbusiness Energy Property: • Tax credit amount equals the sum of: • (1) 10 percent of the amount paid or incurred by the taxpayer for qualified energy efficiency improvements installed during such taxable year, and • (2) the amount of the residential energy property expenditures paid or incurred by the taxpayer during such taxable year

  37. What is it? • Tax Credits: § 1333: an energy-efficient nonbusiness property is: • (A) an efficient electric heat pump water heater • (B) an efficient electric heat pump • (C) an energy efficient geothermal heat pump • (D) a central air conditioner which achieves the highest efficiency tier, and • (E) an efficient natural gas, propane, or oil water heater

  38. Limitations • Tax Credits: § 1333: nonbusiness energy property: Limitations: • (1) LIFETIME LIMITATION: No more than the excess (if any) of $500 over the aggregate credits per taxpayer per year • (2) WINDOWS: No more than the excess (if any) of $200 over the aggregate credits per taxpayer per year

  39. Limitations • (3) LIMITATION ON RESIDENTIAL ENERGY PROPERTY EXPENDITURES: • (A) $50 for any advanced main air circulating fan, • (B) $150 for any qualified natural gas, propane, or oil furnace or hot water boiler, and • (C) $300 for any item of energy-efficient building property

  40. Other Credits • Tax Credits: § 1334: Energy Efficient Appliances: Depends on type of appliance: • (A) DISHWASHERS. Equal to the energy savings amount; if: • (i) Model Year 2006 or 2007, and • (ii) Energy Star 2007 • (B) CLOTHES WASHERS. $100 if: • (i) Model Year 2006 or 2007, and • (ii) Energy Star 2007 • (C) REFRIGERATORS. Based on amount of energy Savings

  41. Other Credits: Fridges • (i) 15 PERCENT SAVINGS. $75 if: • (I) Model Year 2006, and • (II) consumes between 15% and 20% less kilowatt hours per year than 2001 energy conservation standards • (ii) 20 PERCENT SAVINGS. $125 if: • (I) Model Year 2006 or 2007, and • (II) consumes between 20% and 25% less kilowatt hours per year than 2001 energy conservation standards • (iii) 25 PERCENT SAVINGS. $175 if: • (I) Model Year 2006 or 2007, and • (II) consumes at least 25% less kilowatt hours per year than 2001 energy conservation standards

  42. Limitations • Tax Credits: § 1334: Energy Efficient Appliances: Limitations: • Total aggregate tax credits shall not exceed $75,000,000 minus the other credits received under the statute. • Other limitations may apply, based on type of appliance

  43. Other Credits • Tax Credits: § 1334: Residential Energy Efficient Property: • Tax Credit of an amount equal to the sum of: • (1) 30 percent of the qualified photovoltaic property expenditures made by the taxpayer during such year, • (2) 30 percent of the qualified solar water heating property expenditures made by the taxpayer during such year, and • (3) 30 percent of the qualified fuel cell property expenditures made by the taxpayer during such year

  44. Limitations • Tax Credits: § 1334: Residential Energy Efficient Property: Limitations: • No more tax credit than: • (A) $2,000 with respect to any qualified photovoltaic property expenditures, • (B) $2,000 with respect to any qualified solar water heating property expenditures, and • (C) $500 with respect to each half kilowatt of capacity of qualified fuel cell property

  45. So Where Does That Leave Us? • Most of the Government’s programs go to efficiency in vehicles, industry, or other sectors– NOT residential • Most of the real work of Energy Efficiency is left up to the Consumer or Taxpayer • The future is up to us as a society, and as individuals

  46. So, What Can You and I Do? • UNPLUG (don’t just turn off) appliances when not in use: a small amount of energy is being used even when not plugged in • When you get new light bulbs, appliances, etc., look for the Energy Star label and compare efficiency • Caulking and Insulation means inside air stays in and outside air stays out

  47. What Can I Do? • Use cool water when washing clothes, brushing teeth, etc. • Take shorter showers and turn off the faucet when brushing teeth • Limit use of hair dryers and curlers, mechanical toothbrushes, etc. • Don’t leave computers running- shut them off (and UNPLUG) when not in use • Try to limit use of everything during peak hours

  48. What Can I Do? • Limit the use of power tools, yard lights, and other household electricity drainers • Turn off nightlights and decorative lighting • Unplug radios, speakers, electronics, and gaming systems when not in use • Think about what is plugged into every outlet in your home, and get rid of the stuff you don’t use

  49. What Can I Do: Space Heating • Wear a sweater in the winter and set the thermostat lower • Drink lots of lemonade instead of blasting your air conditioning • Don’t leave air conditioning on overnight • Smart/Programmable thermostats

  50. Listen to your Mother • Keep any air registers, grills and radiators clean and clear. Furniture, drapes, dirt or other obstructions block heat • If you have a steam boiler and there is noise coming from one of the radiators, or it isn’t producing heat, then you probably need to bleed trapped air from the line • If you have a furnace, regularly clean or replace the air filter. Do this whenever you can see dust buildup, about once a month during the heating season. If fan is also used for air conditioning, then service throughout the year

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