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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Interview: A Pound of Coal

  • Coal train. (Photo courtesy of the Energy Information Administration)

When you turn on the lights,
there’s a pretty good chance
you’re burning coal. Almost
half of the nation’s electricity
comes from coal. Burning coal
causes the greenhouse gas,
carbon dioxide. But, have you
ever wondered how much?
Lester Graham got a pound of
coal, and then talked to Ezra
Hausman. He’s
the Vice President of Synapse
Energy Economics in Cambridge,
Massachusetts. The first question –
how long would a pound of coal
light up a hundred-watt incandescent
light bulb?:

Transcript

When you turn on the lights,
there’s a pretty good chance
you’re burning coal. Almost
half of the nation’s electricity
comes from coal. Burning coal
causes the greenhouse gas,
carbon dioxide. But, have you
ever wondered how much?
Lester Graham got a pound of
coal, and then talked to Ezra
Hausman. He’s
the Vice President of Synapse
Energy Economics in Cambridge,
Massachusetts. The first question –
how long would a pound of coal
light up a hundred-watt incandescent
light bulb?:

Ezra Hausman: Well, you haven’t told me where you got that pound of coal. Uh, it makes a big difference if it’s from the Appalachian region or the Western region, such as Wyoming in the United States. The Appalachian coal, Eastern coal, would burn a light bulb for about, uh, 10 or 12 hours. A pound of Western coal would only burn it for about 5 or 6 hours.

Lester Graham: There’s that much difference?

Ezra: There’s a big difference in the energy content of the coal, that’s correct.

Lester: And coal, a good portion of coal, is pure carbon. What kind of CO2 omissions would we expect from this one kind of coal?

Ezra: Well, a pound of coal is, let’s say, it’s about half carbon. So that would be a half a pound of carbon, but for every atom of carbon you add two atoms of oxygen from the air. So, you get for every 12 grams of carbon, you get 44 grams of carbon dioxide. That’s basically just how the chemistry works out when you burn carbon and oxygen; it produces carbon dioxide in that ratio.

Lester: So, this one pound of coal, would admit, by weight, more CO2 than I have in my hand here?

Ezra: That’s right; it would end up admitting about two pounds of CO2. Depending again on where the coal came from and how much carbon is in it.

Lester: Now my environmentalist friends would like to see no more coal plants built, no more coal burning power plants built, simply because of the CO2 emissions. The coal industry tells me they’re working on clean coal; there are experiments going on right now to find ways to sequester CO2 and other experiments going on how to store it underground. What do you think is the future of coal?

Ezra: Well, first of all, I think it’s important to say that there is no such thing as clean coal today. So in the first place, coal mining is an extremely environmentally damaging and dangerous process. The high volumes techniques that are now in use including strip-mining and mountain top removal have devastating consequences on mining regions. And secondly, while there are techniques in place that eliminate many of the regular pollutants such as sulfur and nitrogen from coal combustion, there is no current technology that can significantly reduce the amount of CO2 emitted from power plants.

Lester: What do you see as the future of coal and power generation from coal in America in the future?

Ezra: Well, I think we really have no option but the phase out the use of coal for power generation over the next several decades. The problem with coal is not that each pound has so much carbon; the problem is that there is just a vast reservoir of carbon and potential carbon dioxide in the coal reserves under ground in the United States.

Ezra Hausman is Vice President of Synapse Energy Economics.
He talked with The Environment Report’s
Lester Graham.

Related Links

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.

Related Links

The Status of the Smart Grid

  • A smart grid diagram from the US Department of Energy (Photo courtesy of the US Department of Energy)

Your power bill likely will change
in the next few years. Lester Graham
reports there’s a good chance you’ll
be thinking about how much electricity
you use and when you’ll use it:

Transcript

Your power bill likely will change
in the next few years. Lester Graham
reports there’s a good chance you’ll
be thinking about how much electricity
you use and when you’ll use it:

The Smart Grid will mean changes. Electric companies we’ll be able to monitor power use better and deliver electricity more efficiently. That should help avoid brown outs and black outs.

But it’ll also be tell you in real time how much power you’re using.

Brian Seal is with the non-profit Electric Power Research Institute. He says, eventually, you’ll be charged different rates at different times of the day.

“Consumers would be aware of that so that they can program their appliances and other equipment to consume energy when the price is low rather than when it’s high.”

But you’ll need Smart Appliances to work with a Smart Grid. GE is the first to announce a product line – right as the government released $3.4 billion in grants to power companies for the Smart Grid.

For The Environment Report, I’m Lester Graham.

Related Links

Keeping It Close to Home

  • Baylor Radtke bags up anemometers for the climbers to carry up the tower. The student crew placed three anemometers at different heights, along with two wind direction indicators. The data is recorded and analyzed to estimate average wind speed. Researcher Mike Mageau is getting detailed information on several towers up and down the North Shore of Lake Superior. (Photo by Stephanie Hemphill)

People concerned about energy are
getting more and more interested
in producing their own. Stephanie
Hemphill reports on an effort to
harvest the wind, and other natural
resources, to power a community:

Transcript

People concerned about energy are
getting more and more interested
in producing their own. Stephanie
Hemphill reports on an effort to
harvest the wind, and other natural
resources, to power a community:

(sound of climbing)

Three students are getting ready to climb a TV tower on Moose
Mountain on the north shore of Lake Superior. They’ll put up three
anemometers – little cups that spin in the wind and measure how fast
it’s blowing.

As they deploy their climbing equipment, their professor, Mike
Mageau, keeps asking if they have enough safety gear. He seems a
little anxious.

“Two of them are mountain climbers. So they seem to think this will
be no big deal.” (laughs)

Mageau teaches at the University of Minnesota Duluth. He’s been
measuring the wind on the high ridge that runs along the Lake
Superior shoreline.

“If you look at the statewide wind maps, they don’t give us credit for
having any wind along the North Shore of Lake Superior. But Grand
Portage was interested in wind, and they did some monitoring and we
helped them. This was years ago.”

That’s the Grand Portage Band of Ojibway Indians. Mageau got a
grant to install monitoring equipment up and down Lake Superior
shoreline.

“And we found 15 to 20 mile-an-hour average wind speeds at the
sites.”

That’s about the same as the best wind sites in Iowa, where huge
wind farms spread across the landscape.

Mageau doesn’t advocate a big wind farm here. Instead, the idea is
to put up one windmill for each community along the shore. One big
turbine could supply roughly half the electricity each town uses.

He knows some people are nervous about this. The North Shore of
Lake Superior is beautiful, and no one wants to ruin the scenery. It’s
also an important route for migrating birds. There’s concern that
birds could fly into the spinning blades. A separate group of
researchers is studying the migration routes.

“Are they flying close to the lake, along the peaks, just inland or
lakeside of the peak, where are they flying? So hopefully when we
pick a wind site we’ll stay away from the birds.”

If a wind tower is ever built here, the power would go to the town of
Grand Marais Minnesota, 20 miles north. And it would fit in with other
projects local folks are working on, to become more energy self-
sufficient.

Buck Benson owns the local hardware store. He says he and his
friends, George and Lonnie, hatched the idea while they were fishing.

“We were grumbling about all this stuff, ‘what can we really do.’ And,
when we came back home, George kept prodding us, ‘you know what
we talked about,’ so we formed a little group. And I think we’ve done
good work since we started this organization.”

The group has been researching various ideas about how to produce
energy locally. One team is pursuing that windmill idea we heard
about. Another project is a little closer to being built: they want to
burn the wood chips from a local sawmill in a central heating system
for the town.

(sound of buzzing)

The chips would come from Hedstrom Lumber mill. Howard
Hedstrom says the mill sells bark chipped off the trees. But he has to
haul it miles away to sell it.

“By the time you pay the freight, there’s not much left. And if it could
be used locally, why not use it locally and save all that transportation
cost.”

The city of Grand Marais has applied for a federal grant to pay for half
the cost of the boiler.

Communities across the country are looking to use what they’ve got
around them, instead of importing energy from a big coal or nuclear
plant miles away.

It helps keep money close to home, and it could be better for the
earth.

For The Environment Report, I’m Stephanie Hemphill.

Related Links

Greenovation: Low-Flow Toilets

  • Rudy Wilfong, on the left, distributes Coroma toilets. Matt Grocoff, right, is with Greenovation TV. (Photo by Thore Bergman)

The Environmental Protection Agency has
a new water saving program called Water
Sense. It’s similar to the Energy Star label
for electronics. To get the Water Sense
program’s endorsement, toilets must use less
water. But, people have been complaining
about the old style low-flow toilets since they
were first required in the mid-1990s. Lester
Graham reports on what’s changed since then:

Transcript

The Environmental Protection Agency has
a new water saving program called Water
Sense. It’s similar to the Energy Star label
for electronics. To get the Water Sense
program’s endorsement, toilets must use less
water. But, people have been complaining
about the old style low-flow toilets since they
were first required in the mid-1990s. Lester
Graham reports on what’s changed since then:

The problem with those old low-flow toilets is the companies didn’t really re-design them – they just made the tank smaller. Some of them just didn’t do the job.

Hugh Maquire has one in his home. He’s had a bad experience with his.

Maquire: “I had to flush my low-flow toilet six or seven times. What is that saving you?”

Graham: “ Doesn’t save you much water that way does it?”

Maquire Doesn’t save you much water at all. Plus it’s annoying. It’s embarrassing, ‘cause everybody’s hearing you flush the toilet six or seven times, wondering what the heck’s going on in there.”

So, we asked Matt Grocoff with Greenovation TV to set up a demonstration for us. Behind the Bgreen Retail Store in Ann Arbor, Michigan three different models of these new Water Sense low flow toilets are set up on five-gallon buckets so we can see what gets flushed… and what comes out.

Grocoff: “I always joke there were three things that set back the environmental movement: there was the original low-flow shower head, the original low-flush toilet and Jimmy Carter’s sweater. ‘Cause what that said to everybody was ‘You’re going to pay more for it; it was going to be less comfortable and you were going to have to sacrifice and it wasn’t going to perform as well.’ And with these new generations of redesigned toilets, you’re getting a higher quality product than even the existing one-point-six gallon or even a three gallon per flush toilet”

Graham: “Let’s see it.”

These toilets all have dual flush capabilities. A full flush is 1.28 gallons. A half flush – just 0.8. To prove how well they work, he’s just using the point-eight gallon flush. Matt’s got tennis balls, potatoes, and little rubber duckies.

Grocoff: “We got three duckies.” (flush sound)

Graham: “ Well, that seemed to work. No duckies. What’d you think of that, Hugh?”

Maquire: “I felt sorry for that ducky, but it was a great demonstration.”

And, again, that was the half-flush at 0.8 gallons, half of what the old low-flow standard was. Matt upped the ante.

Grocoff: “Two tennis balls and two potatoes. This is going to be the real challenge.” (flush sound)

Then more potatoes.
(flush)

And more duckies.
(flush)

Now, Matt’s demonstration is hardly scientific, but of the three brands we tested – a Kohler, a Toto and a Coroma – it appeared to me the Coroma worked best, at flushing duckies and potatoes anyway.

Rudy Wilfong is a dealer for Coroma. The toilet is made in Australia. He says Australia has had one-gallon-per-flush restrictions for 30 years, so they’ve designed them to work.

Wilfong: “And they don’t plug. They flush better than the 1.6 gallon toilets with half the water.”

And compared to the old low-flow toilets, you can expect to save about 1,000 gallons, per person, per year. They do cost more, but the pay back compared to a regular low-flow is about 2 to 2.5 years. If you’ve got one of those three-gallon-per-flush models, or even an old 6 gallon model, your payback will be a lot faster.

Graham: “Alright, Matt, I’m going to give you one more chance to impress me. What have you got here?”

Grocoff: “Alright. So, here we’ve got a full t-shirt. (flush) Very nice.”

Maquire: “Hey, Matt. I had a black t-shirt. Do you see it anywhere?” (laugh)

Graham: “Well, this was pretty impressive. Where can I get some more information about this?”

Grocoff: “Of course, you can go to Greenovation-dot-TV and you can see a video and some photographs of some of these toilets.”

Graham: “ Alright. Matt Grocoff of Greenovation-dot-TV. Thanks very much.”

Grocoff: “Alright. Thanks, Lester.”

For The Environment Report, I’m Lester Graham.

Related Links

Stimulus Funds for Home Weatherization

  • A fan is sized to the front door so they can de-pressurize the house. This helps them see where air is escaping - and where insulation may be needed. (Photo by Julie Grant)

The government stimulus package
included billions of new dollars
for home weatherization programs.
The money is used to help low income
folks make their homes more energy
efficient. But some critics say
it’s not a good use of federal tax
dollars. Julie Grant reports:

Transcript

The government stimulus package included billions of new dollars for home weatherization programs. The money is used to help low income folks make their homes more energy efficient. But some critics say it’s not a good use of federal tax dollars. Julie Grant reports:

Chris Graham spends his days checking the energy efficiency of people’s homes.

Today he’s at Sandra Richards’ in Mogodore, Ohio.

Graham: “Hi Sandra.”

Sandra: “How are ya?”

Graham: “Wonderful. And you?”

Sandra: “Better.”

Graham: “Better?”

Sandra is 55. Her house is clean and neat. She was a nurse for many years, but today she’s sitting on the couch, watching TV. A broken foot spiraled into problems with her knee and hip – and other health problems.

“I mean I’ve just had so many things go on in such a little time. I was working 12 hour days, and one month later, I couldn’t work at all.”

Sandra qualified for the home weatherization program because she doesn’t have much in the way of income anymore.

Chris Graham says he’s been to a lot of homes where people are far worse off. They can’t get around, they don’t have money coming in, and their houses get cold in the winter.

Graham heads to the basement.

“The first thing we have to make sure is that the heating unit is not in terrible, dilapidated shape. And that it does not have more than a specified amount of carbon monoxide in the flu gasses.”

He turns on the furnace and sticks a probe into the flu pipe.

(sound of a tester)

Grant: “Looks like a receipt came out.”

Graham: “It kind of is. It tells you exactly what was going on there.”

Looks like Sandra’s furnace is running pretty well. 81% efficiency.

But Graham sees evidence of carbon monoxide on her old water heater.

“It’s 17 years old and it just plain needs changed. It’s got burnt, scorch all over it. So we’re gonna do that.”

That could cost more than $1,000.

But the home weatherization program can afford it these days. The stimulus packaged included $5-billion for this kind of work – compared with less than a quarter of a billion dollars last year. The new money has to be spent within two years.

And some people think that’s just too much money – too fast. Leslie Paige is with a taxpayer watchdog group called Citizens Against Government Waste.

“There’s always a lot of waste in government spending anyway, but when you spend it quickly and there’s very little oversight, that’s almost a prescription for seeing a lot of that money go for waste and fraud and losing to abuse.”

That kind of criticism is shocking to David Shea. He’s director the Community Action Council of Portage County, Ohio – the organization that hires inspector Chris Graham.
The weatherization program has been around since 1976 and Shea says they have to report their spending in about a hundred different ways.

“It’s not like money is being thrown out at agencies and just say, ‘oh go out and do it.’ There are volumes and volumes of written regulations that have been around for a long time. We do so much sophisticated reporting; they know how every dollar is being spent. Always. Always.”

Shea’s office used to have one crew out weatherizing homes around the county. Since the stimulus money’s come in, he’s hired a second crew. But there are so many people wanting their services, the waiting list is still years long.

(sound of a fan)

Back at Sandra Richards’ house, inspector Chris Graham has sized a big fan into the front door. He’s depressurizing the house – so he can see where air is escaping. Graham says she’s going to need some doors sealed and new insulation in the attic.

He says Sandra will feel more comfortable, so she won’t need to turn up the heat in the winter. That means she’ll save on energy costs, and will use less fossil fuels.

That’s the whole idea of this project – to use less energy in the future, and to help millions of families that couldn’t afford to improve things on their own.

For The Environment Report, I’m Julie Grant.

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The Energy Hog: You or Your Neighbor?

  • Some power companies are sending out charts and graphs that compare you to your neighbors. (Photo courtesy of the National Renewable Energy Laboratory)

Air conditioners are running full-blast
in much of the country right now.
Shawn Allee reports some
utilities are sending out info that might
get you to turn them down a bit:

Transcript

Air conditioners are running full-blast
in much of the country right now.
Shawn Allee reports some
utilities are sending out info that might
get you to turn them down a bit:

Ever wonder if you’re an energy hog compared to your neighbors?

Well, some power companies are sending out graphs and charts to tell you.

Commonwealth Edison is a utility in Illinois.

It’s sending energy comparison letters to 50,000 customers this August.

Val Jensen runs the company’s program.

Jensen hopes competition will get people to conserve, because power bills alone don’t work.

“Despite pretty compelling economic reasons for customers to become more efficient at using energy, a lot of them don’t do it. Despite what they teach you in Economics 101, most customers don’t behave in the traditional, rational way.”

Jensen says, if enough people conserve energy, utilities can avoid building expensive new power plants.

Commonwealth Edison is just the latest utility to try energy comparison reports.

Power companies in New York and other eastern states will try them this year.

For The Environment Report, I’m Shawn Allee.

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Legislation to Make More Efficient Homes

  • The bill would require new homes to immediately be 30% more energy efficient. (Photo courtesy of the National Renewable Energy Laboratory)

This session of Congress has pledged to take on
the issue of climate change. A bill in the Senate
is already awaiting action. But the House has
already passed the sweeping Clean Energy And
Security Act. One piece of that bill could change
the way homes are built in this country. In short,
they’d use a lot less energy. Tamara Keith has more:

Transcript

This session of Congress has pledged to take on
the issue of climate change. A bill in the Senate
is already awaiting action. But the House has
already passed the sweeping Clean Energy And
Security Act. One piece of that bill could change
the way homes are built in this country. In short,
they’d use a lot less energy. Tamara Keith has more:

The bill would require a re-write of building codes. New homes would immediately have to be 30% more energy efficient. And the requirements would keep getting tougher from there.

The idea is controversial. But for Alex Dean, building efficiently is just the way he does business.

“It’s building to a higher standard. And we really enjoy building fine projects for people who want it done right.”

Dean is the CEO of the Alexander Group, a home design, build and renovation firm in Maryland. He’s showing me around a green remodel.

(sound of key in door)

“This is the entry from the garage into the new addition.”

Dean and his team are putting an addition on a home in an upscale Washington, DC suburb.

He’s designed every detail with an eye to energy efficiency, starting with the insulation. He used a spray foam. It costs about twice as much as the insulation required by current building codes.

“You know, it’s worth it, and in the overall scheme of building the house, it’s not that much money.”

On this hot humid day, you can feel the difference the fancy insulation makes.

Keith: “It’s cooler than it is outside.

Dean: “Yeah, yeah.”

Keith: “And there’s no AC running in here right now.”

Dean: “No, not at all. And this building is directly in the sun. But that’s how effective this is. This is keeping some of the coolness from last night when it was in the 60s.”

That means he can install smaller heating and air conditioning units that use less energy.

The windows are double paned. The lights, all compact fluorescents or super efficient LEDs.

It’s projects like this one that make Bill Fay confident home builders will be able to handle greener building codes. Fay is the executive director of the Building Energy Efficient Codes Network.

“We know it’s achievable. And we know it’s achievable using affordable technologies. It’s just now a matter to have the resolve to do it.”

Past efforts at greening the building codes met with stiff opposition from home builders and failed to make it through congress.

Koteri Callahan is president of the Alliance to Save Energy and she says the stakes are high. Buildings are huge energy wasters.

“Every house and every office building that goes in the ground today is going to be around for decades and decades and in some cases centuries.”

But these days, the ground isn’t being broken on very many homes. The industry is in a serious slump.

Bill Kilmer is the head of advocacy for the National Association of Home Builders and he doesn’t want members of congress to forget about the industry’s struggles.

“Consumers certainly in the last year are stepping back and said, ‘what can we afford.’ And so we’re trying to take a mainstream, if you will, that says, ‘people want this.’ How can we get to that point, and how can we get there reasonably, and take afford-ability into account.”

Kilmer says the building industry is taking environmental issues seriously, and recently created a voluntary green building certification program.

But, he says the House bill moves too far too fast. He says builders would like until 2012 to meet the 30% efficiency goal.

“You really don’t have the equipment or the materials that are ready and ramped up to make the adjustments in the marketplace to bring those things to bear, without a tremendous cost burden that’ll be added on to the production of the housing and that obviously is going to be passed on to someone, and that’ll be the consumer.”

This question of affordability is a big one. And it seems like everyone has a statistic to make their point.


For The Environment Report, I’m Tamara Keith.

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Report Says Conservation Saves Big

A new national report from a business

consulting group says energy efficiency

could be a better solution to meeting our

energy needs than building new power plants.

Shawn Allee reports that new finding

supports the Obama administration’s call for more

energy conservation:

Transcript

A new national report from a business

consulting group says energy efficiency

could be a better solution to meeting our

energy needs than building new power plants.

Shawn Allee reports that new finding

supports the Obama administration’s call for more

energy conservation:

The McKinsey consulting group crunches all kinds of numbers for corporations.

It’s latest report suggests its cheaper to improve efficiency in heaters, homes, and electronics than it is to build new power plants.

It’s a welcome message to Lisa Jackson.

Jackson heads the US Environmental Protection Agency.

“I’m optimistic about Americans, who have so much common sense, saying, listen, the best energy is the energy we never have to use. It’s cheaper, it certainly means that we can invest in ourselves.”

The McKinsey report finds energy efficiency is economical in the long run, but it’ll take millions of consumers and businesses to boost power efficiency all at once to make a difference.

The authors recommend government and banks find new ways to finance home improvements.

They also recommend stronger efficiency labels on household electronics.

For The Environment Report, I’m Shawn Allee.

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