Saturday, August 14, 2010

Stimulus money helps states reduce energy costs



[caption id="attachment_11036" align="alignleft" width="200" caption="fluorescent light bulb"][/caption]

Carol Forsloff - While the recession has impacted
the country, the different states are looking towards ways of reducing
energy costs and saving money.
 

From Boston to the Pacific Northwest projects are under way to utilize energy efficiently.

A college in Boston, for example, started "going green" when it opened up a new center on the North Shore
Community College with geothermal heating and cooling.  It also has roof
solar panels.



A number of colleges are switching to compact fluorescent light bulbs,  as is
North Shore, installing new thermostats and chillers and moving from
electric heat to natural gas.


A simple outlay upfront of money, and the college stands to save more.

Massachusetts is reported to be on the move to upgrade the energy efficiency
throughout the state, at various facilities, partly funded with federal
stimulus dollars as well as the sale of state bonds to be made up and
paid back with the savings in energy.


“The Commonwealth is slated to invest more in energy efficiency at its own
facilities over the next four years than it has in the past two
decades,” says Energy and Environmental Affairs Secretary Ian Bowles. 
Massachusetts estimates the savings for the state will be $22 million in energy costs annually, with a $6 million cut in utility bills coming in the first 12 months.

The American Recovery and Reinvestment Act of 2009 is part of the impetus of utilizing resources through the State Energy Program,
adding $3.2 billion on top of regular annual funding of about $500 million that goes to states for energy efficiency and alternative energy
projects.

Massachusetts, Arizona, Kentucky and other states are initiating projects in their
states that had been stagnant for lack of funding.  The additional funds
from the stimulus dollars are going toward energy upgrades.

In many cases, states are using stimulus money in order to better utilize
private investments.  It creates revolving credit that allows for the
payment of energy-reducing projects.  This is helping to rebuild the
state's infrastructures.

“In Arizona, we were the only game in town,” says Jim Arwood, who until
recently headed the Arizona Energy Office. “There was no shortage of
projects and plenty of companies were ready to do the work and put their
own money into the pot.”  The problem was the money and with it states
can take action.

Arizona has been using stimulus grants on making schools more energy efficient,
using stimulus dollars as a down payment, then attracting private
contractors to pay for the improvements.  Schools then pay back the
money through saving on energy bills.

What is being found is energy-efficiency projects are among the best ways of
using the federal stimulus money that can result in immediate in
immediate reductions in states’ utility bills.

Even in states where generating power is relatively inexpensive, stimulus
funds are making a difference.  That has been true in Kentucky, where
coal has been the energy source.  Still Governor Steve Beshear dedicated
$14 million in stimulus funds to a financing program for
energy-efficient upgrades.

Chuck Guinn, Northeast regional coordinator for the National Association of
State Energy Officials, says the work going on now represents a rare
opportunity for states. “The federal government gets excited about
energy efficiency about every 20 years, especially when oil prices are
high,” Guinn says. “Then politicians tend to drop the idea.”

Guinn hopes that states will be able to keep up the momentum. “States have a
number of interests in energy efficiency,” he says.  “It cuts their
utility bills, improves the environment and it is low risk. The savings
are guaranteed by the contractors. But the biggest draw is job
creation.”





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