Can Energy Efficiency Save the US?

Energy Efficient Economic Plan 

It looks like America may be getting a whole lot more energy-efficient as part of a new, ‘green’ stimulus package. The energy-saving plan is expected as part of a stimulus package from lawmakers set for early January that could top $800 billion and include everything from tax breaks to road repairs.

Conservation is thought to be the first big energy-component of U.S. President-elect Barack Obama’s long-term energy plan, for a couple of reasons.

First of all, it can be done relatively quickly using existing state and regional agencies. Conservation is also essential if the country is to switch to cleaner and more renewable forms of electricity, since it can’t currently provide the sheer megawatts that fossil fuel or nuclear power can produce.

Under such a plan, the government would commit just over $30 billion towards making the nation energy efficient. The money would be spent as follows:

• $3 billion for home energy retrofits, which could include rebate checks for people who buy energy-efficient appliances like air conditioners and refrigerators.
• $3 billion for energy retrofits at public buildings, which may include hiring people to conduct energy audits and install so-called “smart-meters” that more efficiently allocate power.
• $3 billion to promote energy efficiency in commercial buildings, largely in the form of tax breaks for developers who build them.
• $3 billion for efficiency projects at schools.
• $3.5 billion to expand current state energy efficiency programs.
• $5 billion more for states that pass stricter building efficiency standards and restructure their utility conservation incentives.
• $6 billion for local governments to make power plants and transportation networks more efficient.

• $4 billion for things that include construction of a better electric grid, efficiency at military institutions, workforce training, additional smart meters, and an expansion of the weatherization program to better insulate homes.

Sounds like a good plan, but will it work???

With these objectives in place, the program might drop the country’s energy consumption by half a percent each year for 20 years. While that doesn’t sound like much, with the U.S. spending over $1 trillion on energy each year, the savings could top $5 billion a year, or over $100 billion in the 20 year span. Not to mention the impact that individuals can make themselves from do-it-yourself home energy improvements.

Just imagine if people started taking action in a such a way as the government is about to. The impact would be HUGE!

“An economic recovery bill that includes significant investments in energy efficiency will not only create jobs immediately, but also and more importantly will bring American ingenuity and its “can-do” spirit to a new, clean and sustainable energy future,” Alliance to Save Energy President Kateri Callahan said in a statement announcing the program last week. The Alliance estimates its plan will directly create 190,000 jobs in short order.

The Associated General Contractors of America backs the plan, saying every $1 billion dollars spent on infrastructure – energy efficiency included – nearly 30,000 jobs are created. “Clearly, it will put construction workers back to work and put money in the economy,” said Brian Turmail, a spokesman for the contractors’ association. “This is a tremendous opportunity.”

Whether a ‘green’ economic stimulus plan gets approved or not, one thing is for certain; energy efficiency and green living has come to the forefront of our social fabric in America now and that’s a good thing.