The Energy Efficiency and Conservation Block Grants (EECBG), funded with $3.2 billion under the Recovery Act, marked the first time federal dollars have targeted municipal energy efficiency jobs and programs.
The money is allocated to municipalities across the country, as well as indirectly through states and a competitive application process, allowing eligible cities and counties to support vital energy efficiency programs intended to create green jobs, save energy, and improve the economy.
Energy efficiency projects range from far-reaching city-planning and financial strategies, to retrofits and energy audit programs for existing buildings, to recycling and job-creation initiatives. It encourages cities to establish a baseline of energy use by which to measure future energy savings and reductions in greenhouse gas emissions.
The money is expected to start flowing in early 2010.
Many cities have had well-developed energy efficiency programs for many years. ACEEE’s report, Energy Efficiency Program Options for Local Governments under the American Recovery and Reinvestment Act of 2009, includes synopses of over 40 municipal programs, all of which were instituted prior to the passage of the stimulus bill. The report provides effective models for cities implementing stimulus-funded energy efficiency programs.
Case Studies: Proven Programs
St. Paul, Minnesota
In the 1990s, St. Paul joined the International Council for Local Environmental Initiatives (ICLEI), and developed a 20-year municipal energy efficiency action plan.
The plan includes improvements to city-owned buildings, equipment and vehicles, public transportation systems, and targeted programs for the residential, commercial, and industrial sectors.
By partnering with its local utility, Xcel Energy, St. Paul’s Conservation Improvement Program offers retrofits and conservation measures for a number of municipal buildings. The program has saved over 80,000 tons of CO2 and more than $7 million in energy costs to the city per year.
Prior to joining ICLEI, the city launched a pilot program known as District Energy St. Paul. Originally developed to combat the energy crises of the 1970s, today District Energy is the largest biomass-fueled hot water district heating system in North America, providing heat to over 180 buildings and 300 single-family homes, which is about 80% of commercial, residential and industrial buildings in downtown St. Paul.
District Cooling St. Paul, the affiliate founded a decade later, serves more than half of downtown buildings. Most of the hot water for District Energy comes from a biomass-fueled combined heat and power (CHP) power plant, using 100% wood waste from the Twin Cities metro area, reducing coal consumption by an impressive 70%.
Austin, Texas
The City of Austin is another example of a successful municipal-utility partnership. Working with municipally-owned utility Austin Energy, the City implements Energy Star and other programs to help businesses and individuals save energy.
Austin Energy’s programs save enough energy to power 50,000 homes a year. The Commercial Power SaverTM Program, for example, offers utility customers rebates and incentive packages covering appliances, lighting systems, and envelope improvements for commercial buildings, multi-family properties, small businesses, and others.
Seattle, Washington
Seattle City Light, the city’s public power generator since the early 1900s, provides a comprehensive suite of options for residential, commercial, and industrial customers.
Businesses, manufacturers, institutions, and government facilities receive incentives for up to 70% of the installed cost of improvements. Seattle City Light’s residential compact fluorescent light bulb (CFL) program also provides an innovative and successful model. By working directly with participating retailers to offer CFLs at deeply discounted prices, Seattle avoids potential complications with coupon or rebate programs. The "Twist & Save" program began in June of 2007 with 3 retail partners, growing to 15 retail partners and close to one-half million in sales by the end of the year. Overall, Seattle City Light programs have saved 10 million megawatt hours of electricity.
Case Studies: New Initiatives
Cambridge, Massachusetts
The City of Cambridge has programs both old and new that are worthy of note. These include several successful transportation programs, including the Vehicle Trip Reduction Ordinance, which seeks to create a more livable community by reducing the use of single-occupancy vehicles and promoting bicycle use. The program has been a measurable success, increasing bicycle ridership by 112% between 2002 and 2008.
A new non-profit organization, the Cambridge Energy Alliance (CEA), is working to promote retrofits to residential, commercial and municipal buildings. CEA partners with energy service providers, lenders, and a local utility to provide the services and financing necessary to upgrade homes, commercial buildings, and city-owned buildings, and to install renewable and combined heat and power systems. CEA offers financing via loan options based on income level. The ultimate goal is to reduce the City of Cambridge’s energy use by 10% on average and 15% of peak use over the next few years.
Elsewhere in Massachusetts, Pay-As-You-Throw (PAYT) programs have taken hold in a number of towns. Residents can only put out garbage in bags purchased from the town, while recycling is free. Ashland, Massachusetts, for example, has reduced garbage collection 38% while recycling increased 98%. ACEEE’s report includes information on additional innovative materials conservation and recycling efforts.
Berkeley, California
In 2008, the City of Berkeley instituted the Berkeley FIRST initiative (Financing Initiative for Renewable and Sustainable Technology). The program works through a Clean Energy Municipal Financing plan, an innovative financing strategy that allows residential and commercial property owners to pay for the cost of installed energy-efficient equipment or solar thermal or photovoltaic systems over 20 years.
The costs show up on property tax bills, which then follow the sale of the property to its next owner. Although only in the pilot stage and working solely with solar technologies, eventually the program expects to cover a range of energy efficiency improvements. This inventive method to finance energy efficiency improvements is one that many cities could implement.
Babylon, New York
The City of Babylon’s Long Island Green Homes Program appears to be a basic home retrofit program at first glance. The initiative, which provides direct financial support to participating residents, was made possible through a creative city action. By changing the solid waste code to include energy waste (as measured by carbon content), the city can now appropriate $2 million dollars from the solid-waste reserve fund to improve residential energy efficiency. More than 50 homeowners a month call the program seeking audits – the first step toward knowing how best to retrofit their homes.
Many cities and counties will soon receive stimulus funds to put new energy conservation strategies into action. For many communities, the EECBG funds will serve to enhance existing programs. For others, the ACEEE report offers examples of successful and innovative programs that can serve as models for new municipal initiatives across the country.
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