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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Taking Down Levees in Louisiana

  • The Mollicy Farms River Forest Levee (Keith Ouchley, Louisiana Nature Conservancy)

Man made levees line the banks
of the Mississippi River and its
tributaries. They protect towns
and they allow farmers to plow
the bottomlands. But levees come
at a price: habitat destruction
and worse flooding downstream.
Now, more people are calling for
taking down levees and returning
floodplain areas to their natural
state. Samara Freemark
reports from Louisiana – the end
of the line for the water that
drains from the middle of the nation:

Transcript

Man made levees line the banks
of the Mississippi River and its
tributaries. They protect towns
and they allow farmers to plow
the bottomlands. But levees come
at a price: habitat destruction
and worse flooding downstream.
Now, more people are calling for
taking down levees and returning
floodplain areas to their natural
state. Samara Freemark
reports from Louisiana – the end
of the line for the water that
drains from the middle of the nation:

The Mollicy Farms site in Northern LA provides a striking example of just how dramatically a levee can remake a landscape.

“Here comes the river down through here.”

Keith Ouchley is with the Nature Conservancy, and he’s showing me an aerial photo of Mollicy Farms. The site is split in half by a river. On the west side, there’s 30000 acres of primeval forest. On the east side, a swath of cleared land.

“Once, it was forest in the lower area of tupelo and in the upper areas of sweet gum. And every year the river would overflow and flood the forest.”

In the late 1960s, soybean farmers cleared the area built levees to hold back the annual floods – giant earthen walls, 150 ft wide at the base and 30 feet tall. Ouchley grew up in the area. He remembers the first time he saw the site after the clearing.

“I thought at the time you could almost see the curvature of the earth, looking across this massive clearing up there.”

Levees protect a lot of land for farming. But some people are starting to wonder if they’re worth the cost – not just the money it takes to build and maintain them, but the damage they do to ecosystems.

Denise Reed is a geologist at the University of New Orleans. She says hundreds of species depend on floodplain habitats- and without flooding, those habitats vanish.

“The river is the lifeblood of floodplain and delta ecosystems. When you build levees and you cut it off, we cut off those habitats from the river. And essentially they just degrade and die. Putting it back would definitely be a good thing.”

Levees might also raise the chances of truly catastrophic flooding downstream. Whenever there’s a lot of water in the river – say, there’s heavy rain upstream – that water shoots straight down the channel with enormous force. And it sometimes breaks through downstream levees that protect homes.

If you take down levees upstream some of that water has somewhere else to go – out into the forest or wetlands, where it spreads out across thousands of acres.

All of which is why Denise Reed says, instead of building more levees, it might be a good idea to take some down.

“Just because we’ve had levees on the river for the last hundred years or so doesn’t mean to say we’re always going to have levees on the river. The challenge for us is letting nature do its thing while still allowing us to navigate on the river and bring ships in, and that kind of things, and for us to live places where we’re not going to be flooded out. We can do that.”

After catastrophic flooding in 1993, the federal government started buying up levee-protected land along the Mississippi and its tributaries with an eye towards restoring floodplains. But the memory of that flood faded and funding for the program fell off.

That left private groups like the Nature Conservancy to take up the effort.

This summer they’ll punch holes in the levee at Mollicy Farms. As the water rises in the spring, it will gradually seep out onto the landscape, restoring the floodplain.

“50 years, 100 years, you’ll be able to take a boat out through nice, mature, bottomland hardwood floodplain forest. You know, see water moccasins and catch bluegill brims and alligators floating on logs and that kind of thing.”

Ouchley says he’d like to see the program replicated in floodplains all over the country.

For The Environment Report, I’m Samara Freemark.

Related Links

Repairing Backyard Rivers

  • The Conservation Resource Alliance works with property-owners to repair their rivers from problems such as erosion (Photo courtesy of the Conservation Resource Alliance)

American rivers have gone
through a lot in the last century.
Their twists and turns have been
turned into straight channels.
Their banks have been washed away.
And pollution is still flowing off
farm fields and city streets. Fixing
these rivers is a big challenge. A lot
of the land that rivers run through is
privately owned. So that means – to
fix a river, you often have to work with
landowners. Rebecca Williams has the story
of one group that thinks they’ve found
the secret to winning people’s trust:

Transcript

American rivers have gone
through a lot in the last century.
Their twists and turns have been
turned into straight channels.
Their banks have been washed away.
And pollution is still flowing off
farm fields and city streets. Fixing
these rivers is a big challenge. A lot
of the land that rivers run through is
privately owned. So that means – to
fix a river, you often have to work with
landowners. Rebecca Williams has the story
of one group that thinks they’ve found
the secret to winning people’s trust:

(bird sound)

Di Rau is the fourth generation of her family to farm this land in Northern
Michigan. Her grandpa homesteaded the land and set up a sawmill.

“It was the primary industry – I mean there was logging camps just
everywheres you turned.”

Back then the rivers were the only way to get those logs downstream. But
years of rolling logs down the bank into the river were causing serious
erosion. Huge trees were crashing into the water.

Rau says she didn’t know any of her family’s legacy until one day, when a
local group gave her a call. The more she learned about the problems, the
more she felt, well…

“Guilt! (laughs) Because of my ancestors. It’s like practicing medicine. It’s
always evolving and you don’t really know lots of times what you’re doing
wrong until another generation comes along and tells you this is what
you’ve created. Then it’s like okay let’s do something about it.”

So Rau let construction workers on her land. And now, ten years later, she
says it’s beautiful.

“Go down and just listen to creatures. You have deer come splashing
through, we have a bear around here, he likes to visit, couple bobcat.
There’s a lot of wildlife – it’s pretty cool.”

The woman who won Di Rau over is Kim Balke. She’s a biologist with the
group Conservation Resource Alliance. She says working with Di Rau was
pretty easy. But not everyone opens their doors so quickly.

There was the divorced couple who still owned land together, the fighting
brothers, the neighbors who nobody liked.

“Other people have said you know don’t go to their house they’ll greet you
with a shotgun!”

So far, no shotguns. Balke says she’s learned not to listen to what neighbors
say about each other. She approaches each person one by one, and talks to
them about what’s at stake. Her sales pitch? We’re just here to help – and
hey, we’ll pay most of the bill.

“You know a lot of our projects are erosion control, when banks are
completely falling into the stream – landowners, it’s not hard for them to
realize they’re losing property.”

But Balke says, still, you can’t just rush in and tell people what to do. She
says it can take months or even years to warm homeowners up to the
project.

That’s because fixing rivers is serious work. If a riverbank is eroding or an
old bridge is falling into the water, we’re talking about heavy construction
equipment. You have to be willing to have bulldozers and port-a-johns on
your lawn for a long time. And you might have to lose a tree.

“Things can look a little rough when you’re doing construction and some
people are a little worried about change.”

Balke says she just takes her time. She sends letters, sits down for coffee,
lets people think it over.

And it’s not just homeowners who Balke’s group needs to win over. There
are road commissions, tribes, sportfishers, and environmentalists. People
who sometimes just don’t trust each other.

Amy Beyer directs Conservation Resource Alliance. She says her group has
gotten all those people together.

“Yes they have been historically mortal enemies and that doesn’t mean all of
the baggage falls away but I can tell you it feels awfully good to go around
the circle when we complete a project and hear all the different voices and
how they’re celebrating that success.”

Beyer says this is not a quick and easy process – it can take years to get
people to actually find some little thing to agree on. But she says you can
fix a river without ever going to court.

For The Environment Report, I’m Rebecca Williams.

Related Links

‘Land Bank’ Reinvests in Inner City

  • Heavy cleanup crews from the Genesee County Land Bank use chain saws, wood chippers, tractors and brute force to move piles of debris on the lot of an abandoned house on the north side of Flint, Michigan. (Photo by Chris McCarus)

One community is fighting its problems of abandoned lands and unpaid property taxes. Those problems have led to a decaying inner city and increased suburban sprawl. The new tool the community is using is called a “land bank.” It uses a unique approach to try to fix up properties that otherwise often would be left to deteriorate. The Great Lakes Radio Consortium’s Chris McCarus reports:

Transcript

One community is fighting its problems of abandoned lands and unpaid property taxes.
They’ve led to a decaying inner city and increased suburban sprawl. The new tool the
community is using is called a “land bank.” It uses a unique approach to try to fix up
properties that otherwise often would be left to deteriorate. The Great Lakes Radio
Consortium’s Chris McCarus reports:


(sound of work crews operating wood chipper)


Cleanup crews are sending downed branches through a wood chipper on a vacant lot.
They’re also removing tires, used diapers, car seats, sinks, old clothes and dead animal carcasses.
The workers are from the Genesee County Land Bank in Flint, Michigan. They’re trying to
make abandoned property useful again. Dan Kildee is the Genesee County Treasurer and the brains
behind the land bank. He thinks this new approach can recover unpaid property tax money and help
improve the Flint Metro area.


“The community gets to make a judgment on what we think we should do with this land. We get
to take a deep breath.”


Empty lots and rundown homes have been multiplying for a generation. That’s left the city of
Flint in a terrible economic state. But the land bank is beginning to change things.


Until just three years ago, Michigan was like most other states. No one had come up with
a solution. The state would auction off a city’s tax liens. Then conflict between the tax
lien buyer and the property owner could go on for up to seven years. In the meantime,
properties were left to neglect and often vandalized.


Under this new program, the treasurer’s office forecloses on a property and hands it over
to the land bank, which acts as the property manager. The land bank might then demolish
a house; it might throw out the owner and let a tenant buy it; or it might auction it off
to the highest bidder. A private investor can’t just buy a tax lien. He has to buy the
property along with it and take care of it.


The land bank is financed in two main ways: through fees on back taxes and through sales
of the few nicer homes or buildings the land bank acquires that bring in relatively big
profits. Treasurer Dan Kildee says it makes sense to take that revenue to fix up old
properties and sell them to people who deserve them.


“There is no system in the United States that pulls together these tools. Both the
ability to quickly assemble property into single ownership of the county, the tools
to manage it and the financing tools to develop that property.”


The land bank program hopes to change the perception of Flint. As thousands of abandoned
homes, stores and vacant lots become eyesores, people and their money go other places,
usually to build more sprawling suburbs. The perception that people are abandoning the
inner city then speeds up that abandonment. Many people who can afford to leave the city do.
And those who can’t afford to move are left behind.


According to data gathered by the research group Public Sector Consultants, Flint has the
state’s highest unemployment and crime rates and the lowest student test scores.


Art Potter is the land bank’s director. He thinks the downward spiral can be stopped.
When it is, those folks in the central city won’t have to suffer for still living there.


“Even though the City of Flint has lost 70,000 people in the last 30 years, the people who
are still here deserve to have a nice environment to live in. So our immediate goal is to
get control and to clean these properties now.”


Urban planning experts are watching the land bank approach. Michigan State
University’s Rex LaMore says Flint is typical of Midwestern cities whose manufacturing
base has shrunk. Private owners large and small have left unproductive property behind.
As the land bank steps in, LaMore says it’s likely to succeed and become an example that
other municipalities can follow.


“They can begin to maybe envision a city of the 21st century that will be different than
the cities of the 20th century or the 19th century that we see around the United States.
A city that reflects a more livable environment. So its an exciting opportunity. I think
we have the vision; the challenge is can we generate the resources? And the land bank model
does provide some opportunity to do that.”


But the land bank is meeting obstacles. For example, the new mayor of Flint who took over
in July canceled the city’s existing contracts. A conservative businessman, the mayor is
suspicious of the city’s past deals. They included one with the land bank to demolish 57
homes. This has slowed the land bank’s progress. Its officials are disappointed but they’re
still working with the mayor to get the money released.


(sound of kids chatting, then lawn mower starts up)


The weeds grow rampant in a neighborhood with broken up pavement and sometimes
no houses on an entire block. It’s open and in an odd way, peaceful. Like a
century-old farm. It’s as if the land has expelled the people who invaded with their bricks,
steel and concrete.


In the middle of all the vacant lots, Katherine Alymo sees possibilities.


“I’ve bought a number of properties in the auctions from the land bank and also got a side
lot acquisition from them for my house. My driveway wasn’t attached to my house when I
bought it. And it was this huge long process to try to get it from them. But they sold it
to me for a dollar. Finally.”


And since then, she’s hired people to fix the floors, paint walls and mow the lawns.
She’s also finding buyers for her properties who want to invest in the city as she has.
Together, they say they needed some help and the land bank is making that possible.


For the Great Lakes Radio Consortium, I’m Chris McCarus.


(lawn mower fades out)

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