Posted on April 29, 2009 by Chris Cheatham

D.C. Energy-Efficiency Funds for Solar, Reusable Bags

When you heard that the Department of Energy would be providing $3.2 billion for Energy-Efficiency and Conservation Block Grants to states, what kind of programs did you have in mind?

I imagined weatherization of the leaky, old buildings in Washington, D.C.  I imagined an incentive program to build green in D.C.  I am imagined solar panels on every row house.  The last one is out there, but you get the point.  It appears that D.C. will use its Department of Energy funds for some solar panel development and for an advertising campaign that includes distribution of reusable canvas bags: 
"In D.C., environmental leaders have split the District's pot between $4.8 million for solar panels on 20 schools and curriculum additions to help those students be watchdogs for energy waste in their schools, as well as a $3.5 million advertising campaign that includes distributing canvas bags and compact fluorescent lighting to residents in exchange for plastic bags and incandescent bulbs." 
Funding solar panels on schools is a great idea.  Even better, the District plans to tie the program into school curriculum.  By getting the kids involved, D.C. will now have hundreds of eyes on school energy use and the students themselves can work to reduce their energy usage.  Makes sense to me. 

In order to make sense out of D.C.'s use of stimulus funds for canvas bags, you have to understand broader political issues in the City.  The Washington Post recently reported "a majority of the D.C. Council supports legislation that could tax not only plastic bags, but paper ones" at $.05 a pop.  Opponents are now gearing up to oppose the plastic bag tax.   By using stimulus funds to provide reusable bags to residents, the D.C. Council likely faces less opposition from its constituents.

I have no desire to debate the merits of the plastic bag tax, although you can discuss the issue further in the comments section.  Instead, my question is whether the purchase of reusable bags is an appropriate use of Energy Efficiency and Block Grant stimulus funds.  Thoughts
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Posted on February 20, 2009 by Chris Cheatham

"The Stimulus: Now for the hard part"

Update:  For a rundown of green building provisions in the stimulus pacakge, see this post.
 
On February 17, CNN ran the above headline after President Obama signed the stimulus bill.  To me, a more perfect headline could not have been written. 
 
Ever since I read about the stimulus bill, one particular nuance has interested me:  the package does not include earmarks.  Due to the lack of earmarks, the hardest part of the stimulus bill may be administering the $787 billion in funds. 

The lack of earmarks has important implications for state and federal energy programs throughout the country.  Without earmarks, state energy offices will have wide-ranging discretion in doling out large sums of money not previously seen: 

The biggest test of the administration’s energy goals may come in spending the billions that have been devoted to states and cities for improving energy efficiency.  To get the money out quickly, the plans sends it through a range of programs that are not accustomed to seeing funding on this scale.  State energy offices that annually receive less than $100 million combined from Washington are slated to receive $3.4 billion.  
 
 

A recent NPR story, "Earmark-Free Stimulus Bill Lacks Spending Direction", focused on the potential problems that may arise when the money is sent to the states:   

 
When this bill passes, a Niagara Falls of money will flow out of Washington and into the accounts of state highway commissioners, governors and legislatures, local school boards, county executives -- even mayors, [the Brookings Institution's Sarah] Binder says.

"It raises a whole host of questions about how efficiently money can be spent, how effectively it will be spent, how quickly money can be spent, just because there's no set process here for determining how money will get out the door to create jobs or, as the president said, to save jobs," she says.
 

In one particular instance, a South Carolina official who runs the state’s energy efficiency programs, will be tasked with managing large sums of money and finding proper projects and programs for the money:
 
 
In South Carolina, the state energy office is so small that its director, John Clark, answers the phone.  He said his office, which receives $.15 million per year, has put out an urgent call to state offices and school districts for energy-saving projects to receive.  He will also have to advise the state’s cities and counties, which have even less experience in big energy efficiency projects and are slated to get $35 million of their own from a separate $3.5 billion block-grant program in the package.”  
 
 
While Republicans, Democrats and the President argued over the stimulus package for weeks, the real battle may arise when state agencies and officials attempt to divide up the stimulus funding and choose the projects that receive funding.  How are you planning to seize the opportunities that arise from the stimulus? 
 
I will be speaking on this and other topics surrounding the stimulus package on March 3 and you are invited to join me.  Additionally, I am putting together a "Green in the Stimulus" program that may be of interest to many readers.  Stay tuned as we continue to discuss implications for the green building industry in the stimulus package.
 
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Posted on February 18, 2009 by Chris Cheatham

The Stimulus: Green Building Provisions

Update:  For a rundown of green building provisions in the stimulus pacakge, see this post.
 
Love it or hate it, the stimulus package was signed into law yesterday.  In the coming months and years, $787 billion is going to be used to support new projects, developments and tax cuts throughout the country.  Set aside your exhilaration, worry, excitement or anger over the stimulus package.  You should be thinking about one thing now: 
 
How are you going to take advantage of the opportunities presented through the stimulus package? 
 
On March 3, I will be speaking on this very issue in Arlington, Virginia.  My friends at Rutherford were kind enough to include me in their symposium:  "Trends In Green Building - Effective Strategies for Existing Buildings and the Federal Stimulus Package."  Other speakers and their topics include:
Thomas C. Mawson - U.S. Green Building Council
Executive Director, National Capital Region Chapter
2009 LEED Rating System Changes and their Impact on Property Owners and Developers

Richard M. Silberman - Healthy Buildings International, Inc.
Chief Executive Officer
Earning the Ventilation-Related Credits Within LEED-NC

Eric M. Oliver - EMO Energy Solutions
President
Looking for Energy Savings In All The Right Places

Bobby C. Christian - Tangible Software Solutions, Inc.
President  
Simplifying Energy – Buy. Use. Manage.
I am very excited to hear the other speakers talk about energy efficiency in both new construction and retrofits.  This is a very timely panel and one you should not miss.  If you would like to attend, please RSVP to me (chris@greenbuildinglawupdate.com) or Nancy Shipley (703-813-6575 or nancy.shipley@rutherfoord.com). 
 
Over the next few weeks, I am going to focus on the stimulus package and hope to develop my presentation before your very eyes here at Green Building Law Update. 
 
Let's start with the basics today.  The following is a list of funding for green building projects included in the stimulus package, according to the Associated Press:
  • About $50 billion for energy programs, focused chiefly on efficiency and renewable energy, including $5 billion to weatherize modest-income homes; $6.4 billion to clean up nuclear weapons production sites; $11 billion toward a so-called "smart electricity grid" to reduce waste; $6 billion to subsidize loans for renewable energy projects; $6.3 billion in state energy efficiency and clean energy grants; and $4.5 billion make federal buildings more energy efficient; $2 billion in grants for advanced batteries for electric vehicles.
  • $4 billion to repair and make more energy efficient public housing projects
  • $44.5 billion in aid to local school districts to prevent layoffs and cutbacks, with flexibility to use the funds for school modernization and repair
That last entry caused me to do a double take.  Money set aside for education was previously touted as funds to modernize schools.  The final version appears to have modified the language to allow the funds to be used for teachers and administrators. 
 

Did I forget anything? 

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Posted on January 9, 2009 by Chris Cheatham

GLBU Prediction 2009: It's All About the Retrofit

"Green" was the buzz word in 2008.  In 2009, Green Building Law Update predicts that green buzz words will become more nuanced and the focus will be on "energy efficiency," "retrofits," and "existing buildings." 

I don't mind making this prediction because it is not much of a stretch.  There are three factors that will contribute to the popularity of retrofitting existing buildings to improve energy efficiency. 

First, as we have been discussing all week, President-Elect Obama is pushing a large stimulus package aimed at, in part, improving the energy efficiency of existing buildings and homes.  Yesterday, President-Elect Obama again stated his plan "to modernize 75 percent of federal buildings and improve energy efficiency in 2 million homes to save consumers billions of dollars on energy bills."

The second factor that will contribute to increased popularity for retrofitting current building stock is a slowdown in new building project developments.  At this point, we have all heard the dire warnings of a construction slowdown.  This construction slowdown is due, in part, to tightened lending options.  We also know that tenants are now demanding green buildings.  The result will be that building owners will look to "retrofit" their existing buildings so as to offer more green building options. 

Finally, climate legislation in the form of cap-and-trade is coming.  Early investments now to reduce energy use through retrofits will pay off for big businesses. 

What do you think?  Are my predictions off?  What is your one prediction for the green building industry in 2009?   

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Posted on January 7, 2009 by Chris Cheatham

A Very Detailed Green Stimulus Proposal

Update:  For a rundown of green building provisions in the stimulus pacakge, see this post.

On Monday, we highlighted some green building strategies that might be incorporated in the Obama Administration's proposed stimulus program.  The Alliance to Save Energy, Edison Electric Institute, Energy Future Coalition and the Natural Resources Defense Council (NRDC) recently published a comprehensive Energy Efficiency Initiative to be included in the proposed stimulus plan.  You should read the letter yourself but here is a good summary from NRDC's Peter Lehner:

The proposal we put together would invest approximately $33 billion for greater energy efficiency. . . . One of our primary recommendations is to make grants available to states and local governments giving them a huge incentive to increase efficiency. Under this program, states would provide funding under the grants program to entities such as utilities, cooperatives, energy service companies and school districts.

The grants would fall into the following broad categories: home energy efficiency retrofits, retrofits of public buildings, commercial building efficiency retrofits and efficiency programs matching fund. 

The Initiative's plan to allocate the state grants is particularly intriguing.  The first half of the funding would be allocated without conditions.  The second half of the funding would be tied to, in part, a state adopting and implementing more stringent energy building codes: 2009 IECC (for residential buildings) and the ASHRAE Standard 90.1-2007 (for commercial buildings).

If the stimulus package includes any or all of these proposals, the impacts on the green building and construction industry would be enormous.  In a few short years, we would simultaneously see huge government investments in green building strategies to improve energy efficiency while states simultaneously adopt building codes that will force private projects to include new green building techniques and technologies. 

If you are in the construction or green building industry, you better pay attention to the details of the final stimulus package. 

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Photo:  Kimberlyfaye

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Posted on January 5, 2009 by Chris Cheatham

Big Business Support Green Stimulus Package

Update:  For a rundown of green building provisions in the stimulus pacakge, see this post.

Over the weekend, news broke that the massive economic stimulus package will not be ready for President-Elect Barack Obama to sign on day one. As you may recall, President-Elect Obama had previously indicated that the stimulus package would include support for green building strategies.

While it was not previously clear what green building strategies were to be included, a December 24, 2008 letter from the United States Climate Action Partnership (USCAP), a business-environmental coalition arguing for mandatory global warming legislation, detailed what it believed should be included as part of the package:

It is possible to move fast and make investments in energy efficiency that can immediately put people to work on transit projects and existing building retrofits. These include weatherization, insulation, HVAC upgrades, and use of waste heat in industrial processes and facilities.

Rural and urban homes and businesses alike can take advantage of renewable technologies such as solar photovoltaic systems, hot water heaters or small wind turbines, and communities can benefit from development of local renewable energy resources.

This letter was signed by CEOs of some of the biggest corporations in the energy industry:

Alcoa
The Dow Chemical Company
Duke Energy
DuPont
General Electric
NRG Energy, Inc.
PG&E Corporation
PNM Resources
Siemens Corporation

With much of the energy industry and the President-Elect supporting a stimulus package that invests in energy efficiency strategies, we are likely to see an influx of capital for green building projects.

How is your business preparing for these new construction opportunities? 

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Posted on January 2, 2009 by Chris Cheatham

The Political Winds Are Changing: Part II

On Wednesday, we highlighted the Bush Administration's recent decision to order the Office of Management and Budget (OMB) to not adopt regulations that would have improved energy efficiency in all federal buildings.  This decision is in stark contrast to the political platform and green building policies being pushed by President-Elect Obama. 

If you may recall, back in 2008, Green Building Law Update highlighted the green building political platforms of both President-Elect Obama and Senator John McCain.  Among the green building proposals, both Obama and McCain supported "greening" the federal government by applying a higher efficiency standard to government buildings.  While we can not be certain what an Obama Administration would have done, the Bush Administration's decision to kill the federal building energy efficiency regulation contrasts sharply with Obama's platform. 

Even more telling, Obama has emphasized green building policies as part of a massive federal stimulus package that is likely to be voted on as soon as Congress returns in January: 

Roughly $350 billion would be invested to rebuild roads and bridges, modernize schools and help hospitals and doctors switch to computerized patient records. That category also would include projects aimed at improving energy efficiency, such as weatherizing buildings, as well as aid to the poor through expanded unemployment and food-stamp benefits.

As one of his first acts, President-Elect Obama plans to use $350 billion to, in part, improve energy efficiency in buildings and modernize schools.  Improved energy efficiency in buildings and modernizing schools will likely require green building strategies.  The political winds have most definitely shifted in favor of green building policies. 

If you are looking for green building projects, make sure you pay attention to the upcoming federal stimulus package.  We will continue to keep you appraised here at Green Building Law Update. 

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