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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. |
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 lowand
middle-income Americans to make painful choices this winter. The
stakes are also high for the economy,
with consumer confidence already taking a 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 since Congress
and the Bush administration have
failed to take action, American consumers
must count on helf from our
state and local leaders.
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 PIRGbacked
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 low-income
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 elected officials
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 energy-saving 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 fur-nace 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 PIRGbacked
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. (See the chart above.)
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 fuels that cause
global warming pollution.
Of course, in the near term, 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 federal, 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.
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