We know that buildings account for about 40% of the total energy used in the U.S., 70% of electricity usage, and 38% of carbon emissions. We know, too, that deep energy retrofits involving a whole-house energy audit, air sealing, upgraded insulation and energy efficient appliances can save a bunch of money in the long run.
Yet there's a reluctance to invest in home energy efficiency improvements, so common among homeowners that it's thematic, based on two things: 1) not knowing how long they'll be living in the house they're in now; and 2) a reluctance to take on more debt in today's economy. The fierce urgency of now seems to trump the fierce urgency of the long term. That's why organizations like Efficiency First and a handful of innovative municipal initiatives that have come up with creative financing options may prove to be hugely important in catalyzing improvements in energy efficiency. A lot of states, too, have concocted weatherization programs that help low-income families tackle their energy-guzzling homes. But as it stands, millions of middle-class families and small businesses are being left out in the cold. What about them?
Congressman Peter Welch of Vermont has stepped up to propose an answer to that question, with a new bill that would establish a nationwide Retrofit for Energy and Environmental Performance (REEP) program. The REEP program aims to increase the energy efficiency of existing homes and businesses by 20% or more by 2017 - and in the process create jobs, combat climate change, and help homeowners and small businesses save money.
The bill would provide direct cash incentives, interest rate subsidies and credit support to homeowners and businesses that commit to increasing their energy efficiency, shortening the payback time for expensive retrofits to make them more attractive in the short term. The amount of moneyowners are eligible to receive would be proportional to how much they increase their efficiency - $1,000 for an increase of 10%, for example, or up to $3,000 for a demonstrated increase of 20%, followed by $150 for each percentage point after 20%, with a cap at 50% of the total cost of the retrofit (not to worry - that other 50% will come home quick in savings). And how do you know how much you've actually increased your energy efficiency? It may sound vague or incalculable, but it's not; a qualified energy auditor can figure out a building's energy usage spot-on, before and after a retrofit, using state-of-the-art tools and software. The best part is, the cost of the audit is on the House (of Representatives). As long as you make enough of the recommended upgrades, the legislation will provide up to $500 for an audit.
Indeed, everybody wins. Word has been out for a while that incentives for energy efficiency would be in the budget. Now we have some specifics, and they look pretty good. Efficiency is one of the most accessible and economical tools we have to reduce dependence on fossil fuels and put some people to work, sticking a few dollar bills in homeowners' pockets while we're at it. So hats off to Congressman Welch for getting the ball rolling; the Green Mountain Boys would be proud.
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