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The southwest region— Arizona , Colorado , Nevada , New Mexico , and Utah —is the fastest growing region in the country with respect to population and energy demand. But high energy demand growth stresses energy supply infrastructure and increases the risk of power outages. It also increases the need for controversial new power plants and transmissions lines, increases air pollution, and increases water consumption. With tight natural gas supplies and high gas prices, utilities throughout the region are proposing a new round of coal-fired power plants. If they get built, these plants will spew out carbon dioxide and other pollutants, and consume large quantities of water, for decades to come. Given these problems, southwest states should be aggressively pursuing greater energy efficiency. But this generally has not been the case. The southwest is a major coal and natural gas producing region, energy prices are relatively low, and energy policy tilts towards encouraging more energy supply rather than restraining demand. Also, the southwest region tends to be conservative politically, meaning considerable opposition to new regulations or taxes. In short, the prevailing attitude in the region has been “energy is cheap, and real men (and women) dig up coal, drill for gas, and build power plants.” Energy waste is a cost (both economic and environmental) that the southwest can no longer afford. Businesses are increasingly recognizing that energy waste hurts their bottom line. Governments are also recognizing that they can no longer afford to waste energy in their own operations. Once they start looking, businesses, public sector entities, and households find many opportunities for cost-effective energy efficiency improvements in spite of their relatively low energy prices. The southwest is starting to mine its energy efficiency resource. The market share for Energy Star new homes has reached 50% or greater in Las Vegas and Tucson , for example. A growing number of new homes are going beyond the minimum and exceeding Energy Star performance by 15% or more. Utility and state programs, and public-private partnerships, are playing a key role in supporting the construction of these Energy Star and “Energy Star +” homes. A few utilities in the region are ramping up their energy efficiency programs. Utah Power, owned by PacifiCorp, is planning to spend around $20 million (about 2% of their revenues) on energy efficiency programs this year, twice what it spent last year. Utility programs are expanding in Nevada as well. Arizona and New Mexico have adopted new policies to increase energy efficiency in the public sector. And while utility energy efficiency programs are still very limited in Arizona and New Mexico , there are signs that this will change in the near future. The picture is cloudier in Colorado . A few publicly-owned utilities are ramping up their energy efficiency efforts, but Xcel Energy, the largest investor-owned utility in Colorado , operates limited efficiency programs. Even worse, Xcel plans to phase out these programs at the same time it is proposing to build a 750 MW coal-fired power plant. Neither the “conservative” state legislature nor the state PUC seems to mind. The Colorado legislature has also refused to adopt a modest renewable energy standard. Frustrated with the PUC and legislature, energy efficiency and renewable energy advocates in Colorado have filed various ballot initiatives including a combined renewable energy and energy efficiency standard. The standard requires utilities in the state to get 15% of their electricity from renewable sources and/or energy savings by 2014. If this ballot initiative moves forward, it will be an interesting summer and fall. Last but not least, a southwest governor or two is starting to stir the energy efficiency pot. Gov. Bill Richardson (D-New Mexico) recently hosted an Energy Summit under the auspices of the Western Governors Association (WGA). There he and Gov. Schwarzenegger (R-California) proposed clean energy goals for the Western U.S., specifically to develop at least 30,000 MW of clean energy resources by 2015 and increasing the efficiency of energy use in the West 20% by 2020. The Richardson-Schwarzenegger proposal will be submitted as a resolution at the June WGA meeting. So is energy efficiency withering in the desert or soaring among the Rocky Mountain peaks? My answer is a lot of the former, and a little but a growing amount of the latter. Energy efficiency is taking off in parts of the region. However, the southwest still has a long way to go before it approaches the level of program activity or energy efficiency implementation found in other leading regions. Howard Geller is the founder and Executive Director of the Southwest Energy Efficiency Project (SWEEP) based in Boulder , CO. For more information on SWEEP and its work, see www.swenergy.org |
In a move to strengthen and showcase its State Energy Program, the U.S. Department of Energy (DOE) launched a new website this month. Click here to view the new site. The new site includes a database of over 1,000 state energy efficiency and renewable energy projects searchable by state and by topic. Users of the site will also find a new database of state publications. This second database includes more than 500 titles on the topics of energy efficiency and renewable energy. DOE's State Energy Program (SEP) is a federally funded formula share program, in which states must provide a 20 percent funding match (the program was appropriated $44.5 million in FY2004). States also may use Petroleum Violation Escrow (PVE) funds to implement activities under the State Energy Program. PVE funds date back to fees paid for oil price control violations in the 1970s. PVE funds are distributed periodically based on Court decisions (settlements) and restitutionary claim procedures implemented by DOE, and are used to finance energy efficiency and renewable energy projects in the States. The last distribution- estimated at $7 million is expected early next year. The success of these programs has been documented in a 2003 metrics report issued by the Oak Ridge National Laboratory (ORNL). The report shows annual figures for State Energy Program dollar savings, energy savings and emissions reductions. Annual energy savings attributed to the program equal 41 billion Btu. The ORNL report is available by clicking here.
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Energy Efficiency in the Southwest: Withering in the Desert or Soaring among the Peaks?
New DOE State Energy Program Resources|
HB 2703 would require the Department of Administration to develop and implement a program to enter into energy savings performance contracts. Each contract would be for a period of not more than fifteen years. For more information click here
California HB 2299 would require the California Energy Commission, not later than January 1, 2006 , to revise any regulation that was operative on January 1, 2004 relating to energy efficiency standards for commercial dishwashing pre-rinse spray valves. Starting on January 1, 2007 , the act would require every valve sold or installed in the state to use less than 1.6 gallons of water per minute. For more information click here
HB 254 would require the Department of General Services, in consultation with the State Air Resources Board, to develop and implement a statewide Low Emission Contractor Incentive Program on or before July 1, 2005 . This program would apply to all state agencies and departments in contracting for construction, the procurement of goods, or the delivery of services. For more information click here
HB 2652 would require the California Energy Commission to establish a process of expedited review for projects for the re-powering of thermal power plants and give first priority to projects that demonstrate superior environmental or efficiency performance improvements. For more information click here HB 2924 would declare the intent of the Legislature, in subsequent legislation, to establish, increase, and modify incentives and to provide financing mechanisms for energy efficiency and photovoltaic capabilities for subsidized and affordable housing. This bill would also establish "zero energy homes" as a goal for low-income and first-time home buyers. For more information click here
HJR 50 would state California 's commitment to achieving a clean transportation future based on the rapid commercialization of hydrogen and fuel cell technologies, among other promising and complementary clean air and energy efficient technologies. The measure would also request the United States Department of Energy to recognize California's progress and commitment to accelerating the commercialization of hydrogen and fuel cell vehicles and to ensure that appropriate federal funding be provided to support those activities in California. For more information click here
HJR 74 would memorialize the President and the Congress to take legislative action to allow single-occupant hybrid electric vehicles that achieve a fuel economy highway rating of at least 45 miles per gallon, and conform to any additional emissions category of the federal Environmental Protection Agency or the California Air Resources Board, or meet any other requirements identified by the responsible agency, to travel in California's High Occupancy Vehicle (HOV) lanes. For more information click here
SB 1565 would require the California Energy Commission to adopt a strategic plan for the state's electric transmission grid to identify and implement investments needed to ensure reliability and to meet future growth in load and generation, including, renewable resources, energy efficiency, and other demand reduction measures. This bill would require the strategic plan to be included in the integrated energy policy report adopted on November 1, 2005 . For more information click here
Colorado SB 168 would authorize the creation of renewable energy cooperatives to promote electric energy efficiency technologies and to generate, transmit, and sell electricity from renewable resources and technologies at wholesale. This bill also would allow the Colorado agricultural development authority and the Colorado housing and finance authority to issue revenue bonds to construct renewable energy generation facilities and electric transmission lines to facilitate the transmission of electricity generated by cooperatives. For more information click here
Connecticut SB 218 would extend the sales tax exemptions to July 1, 2008, for new motor vehicles including: vehicles exclusively powered by clean alternative fuels, conversion equipment that convert vehicles to the exclusive use of clean alternative fuels, or dual use of such fuel and any other fuel, equipment associated with compressed natural gas filling or electric recharging stations, and high mileage motor vehicles. For more information click here
Hawaii HB 2049 would increase the allowable length of energy performance contracts from 15 years to 20 years. This bill also broadens the financing options, amends definitions, and replaces shared savings plans with guaranteed savings plans. For more information click here
SB 2474 requires electric utilities to meet a renewable portfolio standard of 15 per cent for 2015 and a goal of 20 per cent for 2020. This bill directs PUC to study the feasibility of implementing a rate structure to encourage the use of renewable energy. The bill also requires DBEDT and DLNR to support and facilitate achievement of the renewable portfolio standards. For more information click here
SB 790 repeals the current single-family residential building insulation standards and amends the commercial, institutional and multifamily building energy standards to be in compliance with the 2003 International Energy Conservation Code. For more information click here Back to the Top HB 631 would authorize the division of energy to establish a program to encourage the use of energy efficient appliances by consumers. The program would provide consumers with an exemption from the sales tax for purchases at retail of clothes washers, refrigerators or dishwashers which meet or exceed applicable energy saving efficiency requirements developed by the United States Department of Energy for the Energy Star program. For more information click here
HB 4647 would require that energy efficient activities that are currently funded by mandatory charges per kilowatt hour, to also include a program that provides consumers with rebates equal to five percent of the purchase price of all Energy Star clothes washers, refrigerators or dishwashers. For more information click here
Minnesota SB 3046 would require Minnesota to adopt rules which are identical to the California air emissions reduction standards (chapter 200) for the cost-effective reduction of greenhouse gas emissions from motor vehicles. The rules would be effective for the 2009 model year and any model year thereafter. For more information click here
Missouri SB 1370 would require any governmental unit of the state of Missouri, including any political subdivision, that enters into a contract for the implementation of any energy conservation or facility improvement measures to meet certain conditions. For more information click here
New York SB 6502 would permit hybrid vehicles to travel in high occupancy vehicle lanes regardless of the number of passengers in such vehicle. For more information click here
Pennsylvania HR 681 urges the office of energy and technology development of the department of environmental protection to convene an energy summit to explore solutions to relieve Pennsylvanians from high home heating bills and to discuss options for addressing this problem in the long-term. For more information click here
Tennessee HB 181 would authorize governmental units to contract for training, new facilities, or facility alterations to reduce energy consumption. In order to enter a guaranteed energy cost savings contract, the governmental unit would have to request and evaluate proposals, determine that the cost of the energy savings measures would not exceed energy cost savings over a 10-year period, and issue a public notice of a meeting on the proposed award of a contract and hold such meeting. For more information click here
Virginia HB 887 exampts qualified hybrid vehicles from the motor vehicle emissions inspection program. For more Information click here
Washington SB 6146 encourages renewable energy and energy efficiency businesses in Washington. The Washington Technology Center (WTC) is directed to use its existing Northwest Energy Technology Collaborative Project to provide a forum for public and private collaborative initiatives to promote the renewable energy and energy efficiency sectors in Washington State and the Pacific Northwest. The WTC's responsibilities are amended to include using the collaborative project to develop and implement a strategic plan for public and private sector collaboration in renewable energy and energy efficiency business development. For more information click here
Wisconsin SB 155 directs the Department of Administration (DOA) to require state employees to utilize hybrid–electric vehicles or vehicles that operate on gasohol or alternative fuels for all state–owned or state–leased motor vehicles whenever such utilization is feasible. The bill also requires DOA to encourage use of hybrid–electric vehicles or vehicles that operate on gasohol or alternative fuel by officers or employees of this state who use personal motor vehicles on state business and by residents of Wisconsin state generally. For more information click here
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Additional Resources:
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Appliance Standards Awareness Project (ASAP), a joint venture of the Alliance to Save Energy, American Council for an Energy-Efficient Economy, and the Natural Resources Defense Council, provides advice and technical support to parties interested in advancing state standards. ASAP is dedicated to increasing awareness of and support for appliance and equipment efficiency standards. For more information
Edited by Anna Carmichael, Policy Associate
This page was updated
July 29, 2004
The Alliance to Save Energy
1200 18th Street, NW, Suite 900
Washington, DC 20036
Phone: 202/857-0666 Fax: 202/331-9588
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