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Winter 2006

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| ENERGY EFFICIENCY—Smarter, more efficient energy use can reduce dangerous pollution
from power plants, as well as lowering costs for households across the country. Even small
cuts in daily energy waste can add up to large savings for states. |
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From the actions of emergency
personnel on September 11 to
the outpouring of generosity in
the wake of Hurricanes Katrina
and Rita, Americans show our
best qualities when our backs are
against the wall.
Now we face a new crisis—less
immediate or lethal, for sure, than
a terrorist attack or natural disaster,
but with serious ramifications for
the economy and for the health and
safety of many Americans.
Energy Costs Rising
This winter, the government reports,
many Americans are paying
between $300 and $500 more than
last year to heat their homes. The
financial jolt comes on top of last
winter’s already high home heating
prices and on the heels of rising
prices for gasoline, diesel fuel and
electricity.
High heating prices are forcing
low- and middle-income Americans
to make painful choices this
winter. The stakes are also high
for the economy, with consumer
confidence already taking a severe
hit and consumers wallowing in
record levels of debt.
Many people worry that high prices
for energy are here to stay. While
energy prices can be notoriously
volatile, with global demand for
energy soaring even as growth in
the world’s supplies of oil and gas
slows, more experts are predicting
an end to the era of cheap energy.
Yet as typically happens in times
of trial, Americans are responding
creatively.
Many Americans are driving less.
Public transit ridership is way up.
And many Americans have prepared
for this winter by weatherizing
their homes.
Some Americans have winterized
doors and windows, steps that
could cut as much as 30 percent off
monthly heating bills during peak
winter months.
Some have set their thermostats on
timers, so they can lower the heat
when they’re at work or school and
still return to a comfortable home.
Some are buying more energy-efficient products, like compact fluorescent
light bulbs and front-load
washing machines. And some are
insulating hot water heaters, so
they can pay less to have hot water
in the pipes.
Yet there’s so much more we could
do to reduce our demand for
energy. And since our leaders in
Washington aren’t taking action,
we’ll need to depend on a little help
from our state and local leaders.
Conservation Lowers Prices
Remember the energy crisis in
California during the winter of
2000-2001? To avoid another season of rolling blackouts and skyrocketing
prices, California embarked on
a PIRG-backed emergency energy
conservation blitz, slashing its consumption
by 6 percent within a
single year, saving the economy
billions of dollars.
How significant is a 6 percent
reduction in energy use? According
to the American Council for
an Energy-Efficient Economy, a 2
percent reduction in electricity and
natural gas demand could trigger a
25 percent reduction in wholesale
prices within a single year.
Of course, even with aggressive
conservation measures, many lowincome
families still need financial
help to get through the winter. But
saving energy now can reduce
the economic burden they and all
Americans will face now and into
the future.
Energy-Saving Steps
PIRG researchers have compiled
and distributed a long list of energy-saving policy ideas. Here are
just a few of the steps that we’re
asking state governors and other
government leaders to take right
now:
• Use the “bully pulpit” to set
concrete goals for energy savings
and to call on all sectors of society—
from individual consumers to
government to businesses—to do
their part.
• Get energy-efficiency tools into
the hands of people who need
them. Every American who wants
to use energy more wisely this
winter should have the chance
to do so. That means bolstering
funds for weatherization programs,
launching a major effort to educate
the public about energy efficiency,
and using new tax breaks and other
incentives to get low-cost efficiency
technologies into homes as soon as
possible.
• Walk the talk. Government can’t
call for conservation one minute
and waste energy the next. State
and federal governments should
lead by example and curb their own
energy use by using all the energysaving
tools in their arsenal.
For example, state public utility
commissions should cast a wary
eye on rate hike requests by electric and natural gas utilities, and
demand those utilities implement
all cost-effective energy efficiency
opportunities.
It would also help if the Bush administration
immediately released
new furnace efficiency standards,
which have stalled for the past five
years. Fortunately, at least one state
isn’t waiting. In November, Massachusetts
adopted new efficiency
standards for furnaces and other
products as part of a PIRG-backed
bill.
Spurring Improved Efficiency
The PIRGs in Arizona, California,
Connecticut, Maryland, New
Jersey, Oregon, Rhode Island
and Vermont have helped win
approval of standards that will spur
energy-efficiency improvements
in products, promising to save
residents hundreds of millions of
dollars in energy costs in the years
to come.
Other PIRGs, including Georgia
PIRG, have helped convince state
leaders to declare sales tax holidays
on products that have earned
Energy Star labels for their high
efficiency standards. Still other
state PIRGs, such as Wisconsin
PIRG, have helped enlist their
governors in pledging to improve the energy efficiency of government
buildings.
As they save consumers and
businesses money, aggressive
energy-saving measures are
also good for our health and
environment, reducing the demand
for electricity generated by power
plants that pollute our air, consume
vast quantities of water, and burn
through finite fossil fuels.
Of course, in the not-so-long run, the
best way out of our current energy predicament is to start shifting
more of our energy generation to
clean, renewable sources like solar
and wind power. For now, however,
conservation and efficiency offer
the quickest, cheapest and cleanest
ways to mitigate the impacts of
rising energy prices.
Time and again, Americans have
responded to crises in ways that
make the nation stronger. With a
little help from our state and local
governments, we can ease the
hardships of this winter, safeguard
our economy, and emerge from the
current energy crunch stronger and
more secure.
Senior energy policy analyst Rob Sargent
and senior researcher Tony Dutzik
contributed to the research and writing
of this article. |