Financing Energy Efficiency

  • More than half the houses in the U.S. were built before 1970. (Photo courtesy of the National Renewable Energy Laborator)

Reducing your carbon footprint
by using less energy can cost
money. Efficient cars, energy
efficient homes, and energy-saving
appliances all take money. That’s
why some states are testing whether
homeowners would be willing
to borrow money to upgrade their
homes and, in turn, save a few
bucks in energy costs. In one
state, the plan is to get private
banks and credit unions to finance
energy efficiency. Peter Payette reports:

Transcript

Reducing your carbon footprint
by using less energy can cost
money. Efficient cars, energy
efficient homes, and energy-saving
appliances all take money. That’s
why some states are testing whether
homeowners would be willing
to borrow money to upgrade their
homes and, in turn, save a few
bucks in energy costs. In one
state, the plan is to get private
banks and credit unions to finance
energy efficiency. Peter Payette reports:

When you hear green building, you might think of a fancy new house with solar panels. But most homes are not new, so reducing the amount of energy communities use means doing something about old houses.

Max Strickland owns a business in Michigan that certifies green homes and buildings. He says more than half the houses in the U.S. were built before 1970.

“We had very little energy code requirements previous to that.”

But upgrades cost money that many homes owners don’t always have. And a lot of people saw whatever equity they had in their house disappear during the past couple of years.

Now, the State of Michigan is trying to help people find the money to make their homes more energy efficient. The program is called Michigan Saves. The state launched the pilot project in a rural area of the state. The pilot is a collaboration of a local credit union, an electric cooperative and a building supply company.
Borrowers will have their new payment tacked onto their monthly utility bill.

Trevor Williams is with Brown Lumber, the building supply company involved in the pilot. Williams says it’s likely most of the improvements will be in heating costs. He says to begin with, home owners will be encouraged to have an energy audit.

“The audit it would say things that need to be done, the top three things that are recommended. Furnace replacement, ceiling ducts and weatherizing the house those going to be the three most common items.”

But homeowners can also borrow money for new energy efficient appliances like refrigerators and hot water heaters. Sometimes loans like this are promoted as immediately paying for themselves. That is, it’s suggested the money you save on your utility bills will fully cover your new payment. That’s not necessarily the case.

Marc McKeller is with Members Credit Union which is financing the project. He says after a few years, people will be able to break even on the costs. Government tax incentives and other rebates will help that happen. But McKellar says people shouldn’t expect to take out a loan, retrofit their house and not have more to pay each month.

“The only way it could be was if a government was to give zero percent loans out and that they received tremendous rebates from the utilities and that they received a tremendous government credit.”


But, McKellar says it’s still a good deal. The interest rate for project’s loans will be a little bit better because the state is backing the loans.

And tight credit means not many banks are loaning people money to make their house energy efficient and not many people are putting money into a home that’s lost value because of the housing market bust. That’s one of the reasons they need to run a pilot project.

“They’re trying to determine through this study, how do you get a consumer to actually do this and what are the benefits?”

The directors of Michigan Saves hope to roll out a statewide program later this year. So far no banks have agreed to participate but there are other credit unions interested in the concept.

For The Environment Report, I’m Peter Payette.

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Massachusetts Election and Climate Bill

  • The Massachusetts election puts the passage of a climate change bill in doubt. (Photo courtesy of the Architect of the Capitol)

The Republican party gained
one seat in the Senate. But
Scott Brown’s win in Massachusetts
is apparently having a dramatic
effect on the Senate’s agenda.
Lester Graham reports:

Transcript

The Republican party gained
one seat in the Senate. But
Scott Brown’s win in Massachusetts
is apparently having a dramatic
effect on the Senate’s agenda.
Lester Graham reports:

For one, forget a climate change bill.

“Things are not looking good for this bill.”

Darren Samuelson is a reporter with GreenWire. He spent the day yesterday talking with Senators of every stripe.

A vote this year on a climate bill that included a cap-and-trade plan to reduce greenhouse gases was already in doubt. Now Senators say Massachusetts taught them it’s all about jobs and the economy.

So the climate change bill will become an energy bill – more drilling, offshore, in the Arctic National Wildlife Refuge, more natural gas leases.

Samuelson says, judging on what he’s hearing in the Senate, any chance for a climate change bill comes down to just a couple of things.

“It depends on how much of an emphasis President Obama puts on it in his State of the Union address and just how much the Democrats are willing to give the Republicans.”

But since the Republicans had already decided the climate bill was a jobs killer, the win in Massachusetts makes it unlikely the Democrats can give enough to the Republicans to get it passed.

For The Environment Report, I’m Lester Graham.

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Shutting Off the Heat

  • Four million homes had their heat or power turned off this year. (Photo by Elizabeth A. Sellers, courtesy of the National Biological Information Infrastructure)

Millions of families had their heat
or electricity shut off this year.
Rebecca Williams reports that happened
even though government assistance
for energy bills doubled:

Transcript

Millions of families had their heat
or electricity shut off this year.
Rebecca Williams reports that happened
even though government assistance
for energy bills doubled:

Record numbers of Americans are having trouble paying their heating or power bills.

Mark Wolfe is with the National Energy Assistance Directors’ Association. He represents the state agencies that help people pay their energy bills.

He says when families use up their allotment of energy assistance, things can get tough.

“It’s pretty awful – they go to payday lenders, pay high interest rates to get extra money, they borrow from relatives, they cut back on medicine, they turn the heat down to dangerous levels. These are families that’ve already gone from steak to chicken to rice. They don’t have a lot of choices.”

Four million homes had their heat or power turned off this year.


Wolfe says unless the economy improves next year, the number of families needing help with their bills could be even greater.

For The Environment Report, I’m Rebecca Williams.

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Companies for the Climate Bill

  • A big shift away from fossil fuels isn’t scaring off everybody. Some businesses are actually lobbying for climate change legislation. (Photo courtesy of the National Renewable Energy Laboratory)

As Congress begins debate on climate
change legislation, American businesses
are watching very closely. Some are
worried that a new law could bankrupt
them with energy costs. But others
see a bright future under carbon limits.
Julie Grant reports:

Transcript

As Congress begins debate on climate
change legislation, American businesses
are watching very closely. Some are
worried that a new law could bankrupt
them with energy costs. But others
see a bright future under carbon limits.
Julie Grant reports:

Jeff Holmstead is an environmental attorney and has been working on clean air issues for two decades now. He led the Air Division of the Environmental Protection Agency under the Bush Administration and has worked on some of the most significant environmental regulations in the nation’s history. But he says the current climate change bill is the biggest thing he’s seen.

“It’s a big deal. Much bigger than really any other environmental legislation or regulation than people have had to deal with in the past.”

Holmstead says the stakes are just so high. He says the costs could reach into the hundreds of billions of dollars for American businesses.

“And there’s just also enormous amounts of uncertainty as to how we would fundamentally change our society, which has really grown up largely using fossil fuels. Whether we can truly switch away from that in the kind of time frame that people are talking about.”

But a big shift away from fossil fuels isn’t scaring off everybody. Some businesses are actually lobbying for climate change legislation.

Commercial: “Climate change is real. But solving it is a real opportunity. If we build clean energy technologies in America, we’ll generate the jobs that will power the 21st century and jumpstart our economy. We need a can-do plan that caps greenhouse gas pollution and creates jobs here at home.”

This commercial is not made by a bunch of tree-huggers, liberals, or Al Gore. It stars the South Carolina Chamber of Commerce, and corporate CEOs from Deere and Company and the Eaton Corporation. Eaton makes everything from circuit breakers to hoses to hybrid trucks.

“Yeah, Eaton is a power management company that sales about
15-billion dollars and 70,000 employees worldwide.”

That’s Joe Wolfsberger. He’s in charge of environmental programs at Eaton. The company wants Congress to approve climate change legislation and to limit greenhouse gas emissions. Wolfsberger says it could be a great kick-start for the economy and help create jobs.

“We also see a very big opportunity for Eaton and other companies, especially in this power management area. We’ll be able to provide solutions for people to help reduce greenhouse gas emissions going forward, to help reduce the amount of fuel they consume on the road as part of their operations.”

The company has already created new hybrid transmissions for delivery trucks. They’re used in lots of UPS, Fed-Ex, and Wal-Mart trucks. Wolfsberger says it improves gas mileage 50% to 70%.

Wolfsberger says a lot of companies are still questioning whether climate change is real. He says Eaton CEO Alexander Cutler gets asked about it a lot.

“And his response to them is, ‘it doesn’t really matter if the data is good or not. It doesn’t matter if it’s a normal climatic cycle. The question is, if you as a company can do better, you should do better.’”

But that may be easy to say when your company will benefit from climate change legislation. It’s a lot tougher when your business is producing natural gas or making steel and depends on heavy use of fossil fuels.

Environmental attorney Jeff Holmstead says the price of reducing greenhouse gases is going to be a lot higher for these types of companies if a bill passes. He says that’s what the debate is all about.

“Should we be spending a hundred billion dollars a year, should we be spending a trillion dollars a year? I think most people believe we could significantly reduce our CO2 emissions, it’s just a question of how much we’re willing to pay, and also what we get for that.”

And this what Congress will be debating in the coming months – whether the possibility of higher energy bills is worth the chance to have a more stable climate and more energy independence.

For The Environment Report, I’m Julie Grant.

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Lobbyists Swarm the Climate Bill

  • The Center for Public Integrity finds there are at least five lobbyists on climate change legislation for every member of Congress. (Photo courtesy of the Architect of the Capitol)

According to new investigative reports,
lobbying efforts on climate change
policy are growing dramatically. Lester
Graham reports:

Transcript

According to new investigative reports,
lobbying efforts on climate change
policy are growing dramatically. Lester
Graham reports:

Washington, more than ever before, is crawling with lobbyists.

A journalistic project finds there are at least five lobbyists on climate change legislation for every member of Congress.

Maryanne Lavelle with the Center for Public Integrity heads up the project.

“It’s just astounding. If you just compare to six years ago when Congress first considered a really comprehensive climate bill, there has been a 40o% increase in lobbyists.”

Some are there to ensure greenhouse gases are reduced, some are there to shape climate change legislation to benefit their business interests, others are there to block it.

But the investigative journalists found big industry lobbyists and all the others out-gun lobbyists for environmental and alternative energy groups by an eight-to-one margin.

For The Environment Report, I’m Lester Graham.

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New Water Plan for California

  • Two-thirds of California’s rain and snow falls in the north, but two-thirds of its population lives in the south. (Photo courtesy of NASA)

One of the most drought-ridden
states says it’s finally found
a solution to its water problems.
Amy Standen reports:

Transcript

One of the most drought-ridden
states says it’s finally found
a solution to its water problems.
Amy Standen reports:

Two thirds of California’s rain and snow falls in the north. Two thirds of its population lives in the south. So who should get the water?

It took weeks of intense deal making and years of debate in the state capitol to find an answer. But the new law is not without its critics.

Peter Gleick is a water expert at the Pacific Institute. He says the measure fails to force users – especially farmers– to account for what they use.

” We will never ultimately, sustainably manage our water resources if we don’t know who is using how much water to do what. And we don’t, with any degree of accuracy. And that’s still not addressed in this bill.”

The deal calls for greater efficiency, especially in cities.

But nothing happens until voters agree to chip in for the plan, with an 11 billion dollar bond measure to pay for a new distribution system.

For The Environment Report, I’m Amy Standen.

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Climate Bill Moving Along

  • A lot of compromises and some arm-twisting are persuading moderate Democrats to support limiting global warming emissions. (Photo courtesy of the Architect of the Capitol)

Work on the climate change bill
in the Senate is progressing
despite the controversy surrounding
the bill. Lester Graham reports:

Transcript

Work on the climate change bill
in the Senate is progressing
despite the controversy surrounding
the bill. Lester Graham reports:

A Republican boycott and bitter wrangling between Democrats and Republicans over provisions in the climate bill in the Senate and, still, supporters say it’s going okay.

A lot of compromises and some arm-twisting are persuading moderate Democrats to support limiting global warming emissions.

Even the Chair of the Senate Finance Committee, Max Baucus, is now saying Congress will approve legislation this session.

Josh Dorner is with a group backing a climate bill, called Clean Energy Works. Dorner says getting moderate Democrats like Baucus on board moves a climate bill closer to reality.

“That coupled with the bi-partisan agreement amongst other senators, Senators Kerry, Graham and Lieberman to move forward, I think shows that we’re closer to a bi-partisan agreement on getting a bill done now than we ever have been before.”

“Bi-partisan” meaning only a couple of Republicans joining a lot more Democrats in support of the bill.

For The Environment Report, I’m Lester Graham.

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Senate Takes Up Climate Bill

  • The Senate held their first hearing on the climate change bill. (Photo courtesy of the Architect of the Capitol)

The Senate has started debate on
the climate bill. The Senate Committee
on Environment and Public Works heard
from cabinet members and others,
but Lester Graham reports it’s not
clear their testimony will matter:

Transcript

The Senate has started debate on
the climate bill. The Senate Committee
on Environment and Public Works heard
from cabinet members and others,
but Lester Graham reports it’s not
clear their testimony will matter:

It was the Senate’s the first hearing on the bill, but most of the Senators have already made up their minds.

For Republican Senator James Inhofe, the climate bill is a jobs killer and costs too much.

“We’re talking about somewhere between three and four-hundred billion dollars a year. That’s something the American people can’t tolerate and I don’t believe they will.”

That 300 to 400 billion is revenue from a cap-and-trade plan that would invest in renewable energy such as wind and solar and go to taxpayers to help with higher costs of fossil fuel.

One of the authors of the Senate climate bill, Democrat John Kerry, took issue with Senator Inhofe’s characterization of the bill.

“We need to move forward to deal with climate change and in doing so, Senator Inhofe, we will actually improve every sector of our energy economy.”

And Senator Kerry says that will mean energy independence and millions of new jobs.

The Senate climate bill makes a lot of compromises to win votes. But, it’s not clear they’ll actually sway any of the senators.

For The Environment Report, I’m Lester Graham.

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Recovery Through Retrofit

  • One of the main goals of the “Recovery through Retrofit” plan is to find ways to help people pay for energy efficient improvements. (Photo courtesy of the EPA)

The White House has released a plan that
intends to get more people to make their
homes and apartments more energy
efficient. Mark Brush reports:

Transcript

The White House has released a plan that
intends to get more people to make their
homes and apartments more energy
efficient. Mark Brush reports:

One of the main goals of the “Recovery through Retrofit” plan is to find ways to help people pay for energy efficient improvements. Some of these improvements can cost a bundle.

But, the White House says, there are ways to help. Christine Glunz is a spokesperson for The White House Council on Environmental Quality:

“We want to provide American homeowners with the opportunity to get this energy efficiency done, and get the retrofit done, without having to bear a major financial burden immediately.”

Glunz says the Obama Administration is pushing for new financing options. One they support is a local government loan program that is paid back through property taxes.

In addition to financing, the plan calls for an energy label for homes and apartments. It’s sort of like an Energy Star label, so renters and home buyers can figure out how efficient a building is.

The plan also calls for more trained workers to perform energy retrofits.

For The Environment Report, I’m Mark Brush.

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Connectedness of Climate and Healthcare

  • Pundits say President Obama is putting all his political chips in the fight for health care. And, if he loses, he'll have almost nothing left to spend on climate change. (Photo by Bill Branson, courtesy of the National Cancer Institute)

The health care debate is sucking
up most of the energy in Washington.
So it makes sense that the world is
concerned the US might show up at
global climate talks in December empty
handed. Conrad Wilson explains how
the heath care debate is threatening
the chances of a global climate treaty:

Transcript

The health care debate is sucking
up most of the energy in Washington.
So it makes sense that the world is
concerned the US might show up at
global climate talks in December empty
handed. Conrad Wilson explains how
the heath care debate is threatening
the chances of a global climate treaty:

European countries, along with China and other big global polluters, are wrestling with
how to deal with global warming. But as the world gears up for the climate change
conference in Copenhagen, Washington is focusing on health care.

The timing of Washington’s health care debate has many countries scratching their heads.
And it has environmentalists and climate folks nervous. All agree health care is
important; but globally, they say, it’s out of step.

And when you ask Americans what the President is working on, few mention climate
change.

Person 1: “Probably health care and fixing the economy.”

Person 2: “On the economy. And fixing the economy. Actually, no, I’ll change that.
Actually, what I think he’s focusing on is the health care issue.”

Person 3: “This week, Afghanistan. Last week, health care. The week before, the
economy.”

Person 4: “He’s focusing on health care primarily, which is very important. But he also
needs to maintain his focus on the economy.”

What’s not being talked about is climate change and the global talks coming up in
Copenhagen.

Dan Esty is a professor of Environmental Law & Policy at Yale University. He also has
experience as a climate negotiator. Esty predicts the health care debate will continue
through the end of the year.

“I think it’s going to be very difficult, given the political effort that’s going to be required
to achieve success on health care, to imagine that climate change can be taken on during
the same time period.”

Esty says there’s only so much President Obama and members of Congress can take on at
once. Climate change and health care are two major issues that can’t be resolved
overnight.

As time wears on, the talks are shaping up for an outcome that looks more like the failed
Kyoto climate agreement from a decate ago. After Kyoto, Congress refused to join the
rest of th eworld in capping carbon emissions. Esty fears that could happen again.

“The health care debate, at the present moment, is occupying all the political oxygen in
Washington and that means there’s really nothing left with which to drive forward the
response to climate change. And, as a result, our negotiator will go to Copenhagen
without any real game plan in place for how the United States is going to step up and be a
constructive part of the response of the build up of green house gases in the atmosphere.”

A lot of people say the US needs to pass a climate change law before going to
Copenhagen. But others say maybe not. They argue it’s not a bad idea for the US to go
into global climate talks without a law because it could allow negotiators to be more
flexible.

Regardless of how it’s done, cutting greenhouse gases is now more pressing than ever
before. With Washington paralyzed by the health care debate, the timing is just bad for
climate change.

“If there were ever a time. You can say that about health care and about climate policy.”

That’s energy analyst Randy Udall. He says President Obama has a lot of his plate and
should be ready to compromise.

“Obama’s not going to get nearly as much as many of us had hoped for in terms of health
care reform. And he’s not going to get nearly as much as many of us had hoped for in
terms of energy policy. He will get something. But it not going to be a half a loaf, it’ll be
a quarter of a loaf.”

Pundits say President Obama is putting all his political chips in the fight for health care.
And, if he loses, he’ll have almost nothing left to spend on climate change.

For The Environment Report, I’m Conrad Wilson.

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