Reduce U.S. Consumption of Petroleum

Posted on | March 10, 2010 | No Comments

The price of oil is currently hovering near $80 per barrel, but that doesn’t include the potential economic costs to the United States that would be caused by disruptions in oil supply, according to a recent discussion paper by Resources for the Future (RFF), an independent research group. That report estimated the oil security premium for domestically produced oil at about $2.28 per barrel in 2008, rising to $4.45 by 2030, in constant 2007 dollars. In contrast, the oil security premium for imported oil starts at about $4.45 per barrel in 2008 and rises to $6.82 by 2030. While that analysis suggests that emphasizing domestic oil production over foreign imports has some advantages, the authors note that the security premium is minor compared to the current and future direct costs of oil, which the authors project to increase to more than $130 per barrel by 2030. Given that high price, the report concludes that the best policy would be to emphasize reductions in U.S. petroleum consumption, regardless of the source of oil.

Energy-Efficient Home Heating

Posted on | March 10, 2010 | No Comments

HARRISBURG, PA — Starting in April, funding from the American Recovery and Reinvestment Act will make it possible for tens of thousands of Pennsylvanians to reduce their energy consumption and save money through a new rebate program for home heating equipment, Governor Edward G. Rendell said today.

The $11 million program will provide rebates of between $100 and $500 on the purchase of new, Energy Star-rated non-electric residential hot water heaters, furnaces and boilers. The higher the equipment’s efficiency rating, the larger the rebate will be.

“Last fall, the U.S. Department of Energy asked all states to develop rebate programs for items that would help residents achieve the greatest energy savings,” said Governor Rendell. “Because the average Pennsylvania household spends 44 percent of its energy budget on heating and cooling, offering these rebates will provide a real and lasting benefit for consumers.”

Governor Rendell added that the rebate program could benefit 33,000 Pennsylvanians and could create 120 jobs by boosting demand for heating equipment and related installation work. It could also save more than 257 trillion British thermal units of energy.

Once finalized, the rebate program’s guidelines and applications will be posted on www.recovery.pa.gov.

The rebates complement existing or planned programs by Pennsylvania’s electric utilities that are required under Act 129, which Governor Rendell signed in 2008 to help consumers save money through energy conservation.

“All regulated electric utility companies are now offering—or will soon—rebates on typical appliances like refrigerators and dishwashers,” said Governor Rendell. “Because Pennsylvania has many older homes that use a variety of heating and cooling methods, offering rebates for non-electric heating equipment is another financial incentive that will ensure all Pennsylvanians will have the opportunity to upgrade their heating systems and achieve greater energy efficiency and financial savings, regardless of the type of fuel they use.”

Through a competitive bid process, the Department of Environmental Protection selected Resource Solutions Group to manage the new rebate program along with its partners, Resources Development and Management Inc. of Pittsburgh and the Electric Gas Industries Association.

Resource Solutions Group is a woman-owned environmental consulting firm that specializes in helping organizations balance economic and strategic goals through awareness, action and energy sustainability, while protecting the environment. The company has managed similar energy-related rebate programs, such as the Chicagoland Natural Gas Savings Program.

Resources Development and Management Inc. operates the Municipal Authority of Westmoreland County and is a leading management consulting firm for public utilities and government agencies in Pennsylvania. With 30 years of experience administering rebate programs, EGIA has implemented some of the nation’s largest and most successful resource efficiency rebate programs and contractor training services.

“RSG and its partners have the expertise and the resources to put this financial incentive into the hands of energy-conscious citizens all across Pennsylvania,” said Governor Rendell.

For more information, visit www.depweb.state.pa.us and click on Energy Rebates.

To learn how federal Recovery Act funds are being invested to benefit Pennsylvania residents, businesses and communities, visit www.recovery.pa.gov.

Energy Efficiency Retrofit Program

Posted on | March 8, 2010 | No Comments

WASHINGTON–In his State of the Union address, the President called on Congress to pass a program of incentives for homeowners who make energy efficiency investments in their homes. Today, while touring a training facility at Savannah Technical College, the President outlined more details of a new “HOMESTAR” program that would help create jobs by encouraging American families to invest in energy saving home improvements. Consistent with the President’s call for a HOMESTAR program, the Senate Democratic leadership included a proposal of this kind as part of their Jobs Agenda released on February 4, 2010. The President looks forward to continuing to work with Members of Congress, business, environmental and labor leaders to enact a HOMESTAR program into law.

Background on the HOMESTAR program

With unemployment in the construction sector near 25% and with substantial underutilized capacity in our manufacturing sector, the HOMESTAR program has the potential to jumpstart our economic recovery by boosting demand for energy efficiency products and installation services. For middle-class families, this program will help them save hundreds of dollars a year in energy costs while improving the comfort and value of their most important investment – their homes. In addition, the program would help reduce our economy’s dependence on oil and support the development of an energy efficiency services sector in our economy. Key components of the HOMESTAR Program include:

•Rebates delivered directly to consumers: Like the Cash for Clunkers program, consumers would be eligible for direct HOMESTAR rebates at the point of sale for a variety of energy-saving investments in their homes. A broad array of vendors, from small independent building material dealers, large national home improvement chains, energy efficiency installation professionals and utility energy efficiency programs (including rural utilities) would market the rebates, provide them directly to consumers and then be reimbursed by the federal government.
•$1,000 – $1,500 Silver Star Rebates: Consumers looking to have simple upgrades performed in their homes would be eligible for 50% rebates up to $1,000 – $1,500 for doing any of a straightforward set of upgrades, including: insulation, duct sealing, water heaters, HVAC units, windows, roofing and doors. Under Silver Star, consumers can chose a combination of upgrades for rebates up to a maximum of $3,000 per home. Rebates would be limited to the most energy efficient categories of upgrades—focusing on products made primarily in the United States and installed by certified contractors.
•$3000 Gold Star Rebates: Consumers interested in more comprehensive energy retrofits would be eligible for a $3,000 rebate for a whole home energy audit and subsequent retrofit tailored to achieve a 20% energy savings in their homes. Consumers could receive additional rebate amounts for energy savings in excess of 20%. Gold Star would build on existing whole home retrofit programs, like EPA’s successful Home Performance with Energy Star program.
•Oversight to Ensure Quality Installations: The program would require that contractors be certified to perform efficiency installations. Independent quality assurance providers would conduct field audits after work is completed to ensure proper installation so consumers receive energy savings from their upgrades. States would oversee the implementation of quality assurance to ensure that the program was moving the industry toward more robust standards and comprehensive energy retrofit practices.
•Support for financing: The program would include support to State and local governments to provide financing options for consumers seeking to make efficiency investments in their homes. This will help ensure that consumers can afford to make these investments.
The program will result in the creation of tens of thousands of jobs while achieving substantial reductions in energy use – the equivalent of the entire output of three coal-fired power plants each year. Consumers in the program are anticipated to save between $200 – $500 per year in energy costs, while improving the comfort and value of their homes.

BACKGROUND ON PARTICIPANTS IN TODAY’S PRESIDENTIAL EVENT

•Business Leaders
?Larry Laseter, President of Masco Home Services. Masco is a Fortune 150 company specializing in products and services for the home building and home improvement business, including windows and doors, installation, and contracting. After being hit particularly hard by the recession (40% reduction in workforce over a several year period), Masco created Masco Home Services (MHS) a year ago with the intent to provide residential energy efficiency retrofits to American households. Laseter is a Georgia resident, and MHS will open a Home Performance branch in Atlanta in May.
?Mike Lawrence, Vice President and General Manager for Insulation Systems, Johns Manville. Johns Manville is a leading manufacturer and marketer of insulation and roofing materials for commercial, industrial, and residential applications. Johns Manville is based in Denver, CO and has manufacturing facilities in Georgia as well as California, Montana, Arizona, Indiana, Ohio, Virginia, Texas, and New Jersey.
?Mark Andrews, CEO, North America, Knauf Insulation. Knauf Mark was named to a newly created North American CEO position in January 2010. Knauf’s US headquarters is in Shelbyville Indiana, and Knauf has manufacturing facilities in Indiana, Alabama, and California.
•Local Efficiency Contractors
?Patrick Shay, Green Swap. Patrick is an architect and co-founder of Green Sweep, an energy efficiency company that works with residential, commercial and industrial customers on cost saving clean energy and energy efficiency upgrades. Pat is also a Chatham County Commissioner and chair of the Chatham Environmental Forum, which is addressing energy, climate and other sustainability issues in the Savannah Chatham area.
?Howard Feldman, Costal Green Building Solutions. Howard is a co-founder of Coastal Green Building Solutions. He is a builder, renovator and a certified RESNET HERS rater, which means he evaluates homes and businesses for energy efficiency opportunities and upgrades. Howard’s company works in both Georgia and South Carolina. In addition to Patrick Shay and Howard Feldman, several other Savannah-area contractors and small businesses who would create jobs if this program were passed are in attendance.

Coal

Posted on | March 6, 2010 | Comments Off

What is the role of coal in the United States?
Due to its relatively low cost and abundance, coal is used to generate about half of the electricity consumed in the United States. Coal is the largest domestically-produced source of energy. Coal use, however, results in higher amounts of carbon dioxide per unit of energy than the use of oil or natural gas.

Coal is an Abundant U.S. Resource with Multiple Uses
The United States is home to the largest recoverable reserves of coal in the world. In fact, we have enough coal to last more than 200 years, based on current consumption levels. Coal is produced in 25 States spread across three coal-producing regions, but approximately 75% of current production originates in just five States: Wyoming, West Virginia, Kentucky, Pennsylvania, and Montana.

About 93% of U.S. coal consumption is in the electric power sector, but coal also has certain industrial applications such as cement making and conversion to coke for the smelting of iron ore at blast furnaces to make steel. A small amount of coal is also burned to heat commercial, military, and institutional facilities, and an even smaller amount is used to heat homes.

Over the past 10 years, about 5% of the coal produced in the United States, on average, has been exported. The United States also imports a small amount of coal; some power plants along the Gulf Coast and the Atlantic Coast find it cheaper to import coal by sea from South America than to have it transported from domestic coal mines.

The United States has more than 1,400 coal-fired electricity generating units in operation at more than 600 plants across the country. Together, these power plants generate almost half of the electricity produced in the United States and consume about one billion short tons of coal per year. (Annual coal consumption in the electric power sector is expected to drop below one billion short tons in 2009 for the first time since 2002.)

The share of our electricity generated from coal is expected to decrease by 2035. However, our growing demand for electricity is expected to lead to an increase in the actual amount of coal used, in the absence of new policies to limit or reduce emissions of carbon dioxide and other greenhouse gases. Such new policies could significantly change the outlook for coal use.

Coal Is a Relatively Inexpensive Fuel
Although some natural gas plants are more efficient than coal plants at generating electricity, the fuel cost of generating one kilowatthour of electricity from natural gas generally is higher than that of coal. In addition, coal prices have historically been much less volatile than those of natural gas due, in large part, to the existence of long-term coal supply contracts.

Environmental Effects from Using Coal
Coal is plentiful and fairly cheap relative to the cost of other sources of electricity, but its use produces several types of emissions that adversely affect the environment. Coal emits sulfur dioxide, nitrogen oxide, and mercury, which have been linked to acid rain, smog, and health issues. Coal also emits carbon dioxide, a greenhouse gas that has been in the news because of its link to climate change. Coal accounted for 37% of the total U.S. emissions of carbon dioxide released into the Earth’s atmosphere in 2008. Without proper care, coal mining can have a negative impact on ecosystems and water quality, and alter landscapes and scenic views.

Outlook for Future Coal Use
The economics of burning coal may change if the U.S. Congress approves legislation that restricts or otherwise controls carbon dioxide emissions. For example, a cap-and-trade program to regulate carbon dioxide emissions would likely increase the cost of burning coal because of its carbon content, and thereby cause power companies to consider using less carbon-intensive generating technologies such as nuclear, renewables, and natural gas.

Efforts are now underway to develop new technologies to burn coal without emitting as much carbon dioxide into the atmosphere. Scientists are exploring the possibility of carbon capture and sequestration (CCS), which seeks to capture up to 90% of the carbon dioxide from coal plants before it is emitted into the atmosphere and then store it below the Earth’s surface. CCS would theoretically address much of coal’s carbon dioxide emissions but faces many economic and technological hurdles.

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