California
Public Interest Energy Research Projects Receive $18.3 Million in Funding
The California Energy Commission recently approved $18.3 million in funding for 20 public interest research projects with the potential to make electricity safer, more affordable, reliable, and environmentally sound for Californians. Matching funds to be provided by organizations submitting the winning proposals total $48 million.

The projects selected range from a study of how to mitigate golden eagle deaths in wind turbine farms to the development of a marketable photovoltaic roof tile. Finalists were selected from 180 proposals submitted by the research, development, and demonstration (RD&D) community in response to the first general solicitation of the Energy Commission's Public Interest Research (PIER) Program.

In California's restructured electricity market, the PIER program took over most of the public interest RD&D responsibilities once held by electric utilities. The program ensures that ratepayers continue to reap RD&D benefits in the new competitive marketplace. PIER will make available about $62 million annually through the year 2001 for public interest research projects that advance energy science or technology not adequately provided by regulated and competitive markets.

Finalists were selected after each proposal underwent a thorough review and scoring process. Decisions were based on technical and policy evaluation criteria as well as the program's goals to: make electricity more affordable; keep the production of the commodity cleaner and safer; and improve its reliability, quality, and distribution for the benefit of California consumers.

Proposals for the first general solicitation were sought in the areas of environmental research, advanced generation, and renewable energy technology. Because of the merits of the proposals, the Committee recommended and the Commission decided to increase the $15 million allotted by another $3.3 million.

A list of proposed awards for the program's second general solicitation will be announced in September in the areas of end-use energy efficiency and strategic energy research. A "Small Grants" solicitation is expected to be released later this year. These grants will provide modest funding to help recipients evaluate which RD&D concepts are feasible to further stimulate new energy innovations in California.

Contact: Claudia Chandler, (916) 654-4989

Energy Commission's Keese Appointed to NCCEI Committee
The National Council on Competition and the Electric Industry on June 29, 1998 announced the appointment of Energy Commission Chairman William J. Keese to its steering committee. Chairman Keese represents the National Association of State Energy Officials (NASEO) on the committee. NASEO representation is intended to strengthen the Council's programs and research, and enhance the Council's contributions to the on-going debates regarding the structure of the nation's electricity system. The council is a partnership among the federal and state decision makers directly responsible for restructuring the nation's electricity industry. The industry faces dramatic change as deregulation of the traditional monopoly structure is considered in states across the country and in the halls of Congress.

Chairman Keese joins 13 other members who represent the National Association of Regulatory Utility Commissioners and the National Council of State Legislators, including Senator Byron Sher of California. Other members are the Department of Energy, represented by Assistant Secretary Dan Reicher, the Environmental Protection Agency, represented by Jan McFarland, and the Federal Energy Regulatory Commission, represented by Chairman James Hoecker.

Currently, the Council is following up on its successful national executive dialogue on customer information disclosure and its central role in facilitating a model customer information disclosure rule for New England. The Council is assisting in similar regional initiatives throughout the United States and will soon begin a project assessing the impact of restructuring on under-served communities.

In other recent news, last month Chairman Keese was appointed as secretary of NASEO.

Contact: Claudia Chandler, (916) 654-4989

Indiana
Evansville Students Build EcoHouse
Evansville youth are the first high school students in the nation to complete an Environmental Protection Agency (EPA) Energy Star Home. The project was a joint effort between the Evansville Vanderburgh School Corporation Building Trades program and the Public Education Foundation. Led by their instructor Bob Yeager, the students built an energy-efficient demonstration home that meets the U.S. EPA Energy Star Homes guidelines.

According to Yeager, the class has not only taught students valuable vocational skills, but it also has offered them hands-on experience in recycling and energy efficiency technologies. This experience will help the students in the highly competitive job market of the 21st century.

The Evansville home, known as EcoHouse, was rated "five stars plus" for energy efficiency by Mark Jansen, program manager for Energy Rated Homes of Indiana. EcoHouse was on display as part of the Metropolitan Evansville Home Builders Association Parade of Homes on June 6–14. Located at 3208 Roselawn Circle, the home will be available to tour for a period of two years before it is sold at market rate.

Energy Rated Homes of Indiana is a program offered by the Energy Policy Division of the Indiana Department of Commerce. Through this program, the energy efficiency of a home is measured on the basis of one to five stars (with five stars representing the most energy-efficient). A four or five star rating indicates that the home meets or exceeds the 1992 Model Energy Code and the homebuyer can expect to have up to a 40 percent reduction on utility costs.

Contributing to the energy efficiency of EcoHouse are high performance, low-emissivity windows, a geothermal heat pump and high-efficiency lighting with occupancy sensors. In addition to the energy-efficiency features, EcoHouse was built using recycled-content materials. Included in these materials are carpeting made from soda pop bottles and insulation made from recycled newsprint.

The students designed EcoHouse to be realistic. The home looks similar to the other homes in Evansville's Rose Park subdivision, demonstrating that highly efficient buildings can easily fit into the landscape of existing neighborhoods.

Funding for this project came from several sources. The Indiana Department of Environmental Management awarded a $40,700 grant to Sustainable Evansville for EcoHouse. In addition, the Vanderburgh County Solid Waste Management District supplied $45,000 in seed money. Numerous corporate and individual donors supplied the remaining funds for the project.

Contact: Anna Cadick, (800) 382-4631

Iowa
Iowa DNR Energy Bureau Receives Prestigious National Conservation Award
The Iowa Division of Energy and Geological Resources, as part of the Department of Natural Resources, has received the prestigious 1998 Energy Conservation Award from the National Energy Resources Organization (NERO). The Bureau was honored at an awards dinner in Washington, DC on May 5. The Energy Bureau received the award for developing the Iowa Energy Bank. Through public-private partnerships, the Iowa Energy Bank leverages private capital, matched with some federal funds, to implement energy efficiency improvements in taxpayer-supported institutions. Partners in the program include the U.S. Department of Energy, the utility industry, engineers, banks, and other private businesses.

Since its inception in 1986, the Energy Bank has leveraged $5 million in federal funding to achieve $150 million in efficiency improvements, $25 million in annual energy cost savings, 3750 job years created, and thousands of tons of reduced air emissions in schools, hospitals, and local government buildings.

"The program has performed at 118 percent of original projections," said Larry Bean, division administrator of the Energy and Geological Resources. "The Energy Bank represents government fiscal responsibility, government responsiveness, and government efficiency."

NERO is a national organization that works to bring together representatives of U.S. industry and government with an interest in the development, supply, and use of energy. Past recipients of the Energy Conservation Award include Dow Chemical Company, Xerox, and 3M. Visit the Iowa Division of Energy and Geological Resources Web site at Iowa Division of Energy and Geological Resources

Contact: Julie Tack, (515) 281-4308, or Julie Tack

Energy Bureau's State Fair Booth Focuses on Switchgrass
The Department of Natural Resources-Energy Bureau and Chariton Valley RC&D are establishing an educational booth at the Iowa State Fair, August 13–23. "Prairie Grass Power" focuses on the economic and environmental potential of switchgrass as an energy cash crop in Iowa. Booth highlights include a stand of live switchgrass, hands-on opportunities to view products made from the grass, and photos explaining the crop's many advantages for Iowa.

Contact: Dewayne Johnson, (515) 281-7018

Kentucky
Electricity Restructuring Task Force Created
Kentucky Division of Energy director, John M. Stapleton, was recently appointed to serve on Kentucky's Electricity Restructuring Task Force. The task force was created as a result of a House Joint Resolution during Kentucky's 1998 legislative session. The resolution appropriated $150,000 for the task force to study electricity restructuring in Kentucky and the potential effects of a restructured market on the state's citizens. The task force must report its findings and recommendations to the governor by November 15, 1999.

Contact: John Stapleton, (502) 564-7192

Maryland
Energy Performance Contracting Expands in Maryland
Maryland's use of Energy Performance Contracting (EPC), which promotes energy efficiency within state agencies and departments, is expanding with a grant of $271,000 from the U.S. Department of Energy's Federal Energy Management Program (FEMP). The new pilot program will make EPC available to participating municipalities and federal facilities within Maryland, as well as to state facilities. As part of this pilot, the Maryland Energy Administration (MEA) will develop mechanisms to overcome institutional and financial barriers that local government's face in establishing energy conservation and alternative energy programs.

EPC provides a system of support for a facility's energy efficiency plans, which may include a survey of the facility, and the design, installation, financing, and maintenance or management of a project. During the past several years, MEA has found EPC to be a successful resource in securing energy efficiency improvements in state facilities.

Last year, MEA sponsored the first programmatic response to the President's Million Solar Roofs Initiative. In support of this initiative, MEA will promote solar technologies when applicable as part of the EPC Program. The pilot also will support municipal and local government purchases of alternative fueled vehicle fleets. MEA's participation includes education and technical assistance in setting up the low financing program. Workshops are planned for energy and fiscal decision-makers to learn the process, benefits, and potential barriers to successful energy performance contracting. MEA will work closely with the Maryland Municipal League, Johnson Controls, Custom Energy, Viron, and HEC.

Contact: Christopher Cook, (800) 72-ENERGY, or e-mail Christopher Cook

Utah
Energy Efficient Mortgages Benefit Homeowners
Utah homeowners with four- or five-star energy-efficient homes can receive mortgage-loan benefits. Some Utah mortgage lenders offer financial incentives to homeowners and homebuyers of energy-efficient homes that have an energy rating at or above current Utah energy codes. Four-star homes meet current energy code and five-star homes exceed it by at least 30 percent. Owners of four-star homes receive special loan-to-income consideration. Owners of five-star homes can receive added benefits from some mortgage lenders that may include a $500 credit against closing costs.

Home energy ratings are completed by homebuilders who are certified to use the state accredited rating instrument. Ratings are also completed by qualified independent raters under Energy Rated Homes of Utah, a non-profit organization. Although there is usually a $250 to $300 charge for a rating, buyers of new homes easily recover the cost of the rating with the mortgage incentives and through long-term utility savings.

Michael Glenn, Utah Office of Energy Services Director, lives in a new five-star rated home. Energy efficiency enhancements added $3,500 to the cost of Glenn's home, but his average total gas and electricity bills are less than $35 per month. Based upon savings from these low bills, Glenn estimates the upgrades will be paid for in seven to eight years. Besides the monthly utility savings, Glenn also received a $500 energy credit on his mortgage when he recently refinanced his home.

Energy improvements also make a home comfortable and quiet. Features of five-star homes include:

• proper design and site orientation for passive solar gain during winter and shading during summer;
  
• natural day lighting;
  
• a high efficiency furnace or boiler system;
  
• use of evaporative coolers instead of air conditioners;
  
• extra wall and attic insulation;
  
• low-E double pane windows;
  
• special attention to caulking and sealing to reduce air leakage;
  
• a setback thermostat;
  
• energy-efficient appliances; and
  
• state-of-the-art lighting technology.

Builders and lending institutions benefit when customers request the energy add-ons to their new homes. Since general contractors usually receive a percentage profit from new homes, there is added value to builders who encourage clients to adopt energy upgrades beyond current energy code.

For more information about Home Energy Ratings and energy efficient mortgages, contact Energy Rated Homes of Utah at 1-800-550-8322 or visit the Web site at Energy Rated Homes of Utah.

Contact: Linda Neilson, (801) 538-8690

CONSERVATION UPDATE is a free monthly publication prepared by the Kentucky Natural Resources and Environmental Protection Cabinet, Division of Energy, with funding from the United States Department of Energy, to facilitate the transfer of current State Energy Program (SEP) and technical information among the states and territories. Please submit short articles that describe successful programs, solicit ideas, share reports, studies or evaluations, or announce new publications, personnel changes, office address changes, conferences, seminars and workshops. Submittals are due by the seventh of each month. Please send submittals, address corrections, or name changes to: CONSERVATION UPDATE, Division of Energy, 663 Teton Trail, Frankfort, Kentucky 40601, phone (502) 564-7192, facsimile (502) 564-7484, email: landry@nrepc.nr.state.ky.us. Past issues are available upon request. For more information, contact Karen W. Landry, Editor, or John M. Stapleton, Director.

Visit the Division's Web site at www.nr.state.ky.us/nrepc/dnr/energy/dnrdoe.html

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