January-February 2003
Conservation Update
Feature Article
Nebraska Dollar and Energy Saving Loans
by Jerry Loos and Pet Smith, Nebraska Energy Office
Like the rest of the country, Nebraska discovered the nation's oil addiction in the 1970s. Since then, as part of our efforts to minimize air pollution and increase energy diversity for all of our citizens, we have all participated in a variety of federal programs. Some of these programs, such as the State Energy Program (SEP) and Weatherization Assistance Program, remain a vital component of the nation's energy strategy.
Still, the vast majority of Americans have few financing options and thus little incentive for making energy improvements to their homes. Nebraska is changing this trend - using federal oil overcharge dollars and local lenders as partners, the state is working with consumers to find permanent ways to fund efficiency projects that improve the quality and comfort of Nebraska homes.
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The Nebraska Energy Office saw its opportunity when millions of dollars from oil overcharge settlements began to arrive in the 1980s. "We wanted to do something very different with this one-time financial windfall by revolving the oil overcharge funds so that as many consumers as possible would benefit," said Ann Selzer, Nebraska's SEP manager. In 1990, that idea became Dollar and Energy Saving Loans.
The program is a revolving fund that reduces the interest payments for energy-related projects that meet minimum efficiency standards. The energy office purchases half the loan at zero interest and a commercial lender provides the other half at market rates, usually at an interest rate between 10% and 12%. The net interest cost to the borrower is a blend of the two halves, and averages between 5% and 6%. The loan program, which was originally funded with oil overcharge dollars, is replenished with loan repayments.
In the 12 years since Nebraska started the fund with $23.6 million, those initial funds have revolved more than three times, representing $73.8 million in loan funding from the energy office. Add to this some $82.9 million in loan funding from banks, savings and loans, and credit unions. (In addition, borrowers spent $19.3 million from their own funds on home improvements that did not qualify for energy loans.) Altogether, the Dollar and Energy Savings Loan Program has provided $156.7 million in financing for energy projects.
Local Lenders as Partners
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Not surprisingly, these low-interest loans are very popular. As of September 2002, the energy office had financed 20,708 projects. More than 19,000 of these were typical home improvements such as replacing furnaces and adding insulations.
While the bulk of the projects are residential, the energy office has financed other types of projects as well:
- 550 agricultural projects totaling nearly $10.1 million
- 47 government projects totaling $2.7 million
- 147 new homes totaling $19.8 million
- 834 small business projects totaling $13.1 million.
More than 265 lenders, operating at 667 locations across Nebraska, offer Dollar and Energy Savings loans. Lenders screen potential borrowers for credit worthiness, secure project information, and submit the loan application to the energy office. Borrowers are responsible for securing one or more bids from contractors. The energy office reviews the winning bid to verify that efficiency standards are included and then notifies the lender for loan approval.
Energy office staff also monitors a portion of the projects to make sure that inspections are performed and sub-standard equipment is not substituted after loan approval. If such equipment is found during an inspection, the borrower and contractor must replace it or pay off the loan immediately. According to Selzer, that policy has all but eliminated this kind of problem in the field. The energy office uses SEP funds to administer the loan program.
Shards in the Grass
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 | Seventy-one windows were replaced in Lincoln's oldest surviving school building, now Hayward place Commons. Credit: Ed Caudill |
As an example of Nebraska's Dollar and Energy Saving loan program success, take the Hayward Place Condominiums project. At Hayward Place, the windows needed to be replaced so badly that they literally were falling out of their frames and breaking on the ground.
Located in Lincoln, the condominium building was converted from a public school in 1985 while keeping the original windows from 1925. The school itself was first built in 1904, and the building is on the Register of National Historic Places. Unfortunately, the windows were single-pane, drafty, and because they were relatively large, wasted lots of energy. Tenants also complained that they rattled in their frames and formed condensation and frost on the inside in winter.
The search for efficient and historically accurate windows was expensive, because the historical register required windows that they matched the originals as closely as possible. Ed Caudill, an officer of the Hayward Place Owners' Association, said that an initial estimate for replacing the 71 windows with wood trim and muntin bars dividing the windowpanes was more than $120,000.
Luckily, a yearlong search resulted in a window manufacturer experienced with historic renovations, and Caudill's lender was a Dollar and Energy Saving Loan partner. "The loan department at Cornhusker Bank has brochures all over the place - you can't miss them," he said. "It made sense to see if the replacement windows we wanted could qualify for a low-interest loan."
Eagle Window and Door, a Lincoln-based manufacturer, could produce the windows in the needed sizes -some more than 9 feet tall. Eagle recommended double paned, aluminum clad replacement windows with low emissivity glass and argon gas between the panes. The U-value of the windows is 0.36, almost 10% better than the energy office's thermal standards for windows. Not only would Eagle's windows provide better protection from Nebraska's Great Plains weather, the cost savings were nearly $40,000.
For the initial review at the energy office, the condominium association sought financing for $60,000, the maximum for a multi-family project, which was less than the total cost of the windows. The energy office determined that the association qualified for a $100,000 loan since it was a small business with fewer than 25 employees and annual revenue below $2.5 million. In February 1999, the energy office approved the project and the construction of the windows could begin.
According to Pauline Smith, a loan officer and assistant vice president with Cornhusker Bank, helping with the window replacement was a natural project for them to consider. "Cornhusker had helped finance the purchase of many of the condos," Smith said. "We were glad Cornhusker could also be a part of the on-going preservation of the property because the building is the gem of the North Bottoms neighborhood."
Today the windows are installed, and residents are happy with them. According to Ed Caudill, the process of finding the right windows and financing was an example of how being energy efficient can also be affordable. "This building has been here for 100 years and will probably be here for another 100," Caudill said. "You don't replace windows very often, so it just makes sense to get the most energy efficiency possible."
For more information about the Nebraska Energy Office's Dollar and Energy Saving Loans, contact Jack Osterman.
The following documents are available as Adobe Acrobat PDFs. Download Acrobat Reader
Dollar and Energy Saving Loan Program Overview; Nebraska Energy Office 2001 Annual Report (PDF 273 KB) See pages two and three for a summary of the loan program; 10 pp; March 2002.
Energy Efficiency and Historic Preservation: A Planning Guide for Buildings (PDF 3.62 MB) The Nebraska Energy Office publishes this guide about how to use a whole-building approach to increase energy efficiency while maintaining historic integrity during retrofits on older buildings; 10 pp; July 2001.
40 Ways to Finance Your Energy Improvements (PDF 340 KB) The Nebraska Energy Office publishes this online compendium of federal, state, utility, local, and other methods to finance energy efficiency projects; 63 pp; October 2001.
State Energy Offices Bulletin
Stories submitted by state energy offices about their projects.
Alabama
Alabama Energy Office Partners with ENERGY STAR®
The Science, Technology and Energy Division of the Alabama Department of Economic and Community Affairs (ADECA) partnered recently with Energy StarTM, an energy labeling program managed by the U.S. Environmental Protection Agency (EPA) and the U. S. Department of Energy (DOE). Consumer products with the Energy StarTM label are 10% to 50% more energy efficient than minimum government standards. Homes bearing the label are 30% more efficient than the 1993 Model Energy Code.
California
California Collaborative for High-Performance Schools
The California Energy Commission (CEC) awarded two grants in December to school districts to assist in the construction of high-performance schools. The two schools are located in the Tahoe Truckee and Oakland Unified School Districts, respectively, and will achieve the high-performance rating based design and construction criteria. The criteria were developed by a nonprofit organization formed in 1999 in California that comprised of the CEC, several utilities, state agencies, and nonprofit organizations. It is called the Collaborative for High Performance Schools.
Both schools receiving grants are using daylighting and associated lighting controls as well asoperable windows for natural ventilation. Both will also have cool roofs. Tahoe Truckee selected a ground source heat pump for heating and cooling, while Oakland decided to air-condition only 40% of the school. Both schools will use commissioning agents to ensure that the systems are functioning properly before the schools are occupied.
Noting that California has the largest state school district in the country, the Collaborative for High Performance Schools (CHPS) aims to improve the quality of education for California's children by increasing the quality and energy efficiency of school facilities. CHPS produced three manuals in 2002 to assist in constructing a high-performance school, and a fourth manual is scheduled for publication next year. CHPS also publishes videos and is preparing training for district maintenance and construction staff, architects, and project managers.
Colorado
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The Colorado energy office is part of a coalition to demonstrate operation of this fuel cell in a fire station in Denver. Credit: Colorado Governor's Office of Energy Management and Conservation |
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Colorado Fire Station Powered by Fuel Cell
On December 4th, the Colorado Governor's Office of Energy Management and Conservation (OEMC) announced the installation of a proton exchange membrane (PEM) fuel cell system at Washington Park Fire Station in Denver. The demonstration is a cooperative between OEMC, the City of Denver, Plug Power Inc. of Latham, New York, and Xcel Energy, Inc., the state's largest electric and gas utility. The fire station is OEMC's second fuel cell demonstration in 2002, and it will provide a portion of the facility's electricity and heat.
The demonstration is open to the public and is scheduled to operate for one year. After that, Plug Power will replace the fire station's fuel cell with a future production model. "The Washington Park station is a place of work and rest for 15 full-time fire fighters," said Larry Trujillo, Assistant Denver Fire Chief. "The station receives many visitors throughout the year, making it a perfect viewing location."
Illinois
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The Illinois Energy Office is distributing tens of thousands of educational kits containing Energy Star materials throughout the state. |
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Illinois Energy Office Promotes Consumer Awareness through ENERGY STAR®
The Illinois Department of Commerce and Community Affairs (DCCA) offers energy efficiency kits to consumers throughout the state, with a focus on low-income households. The purpose of the kit program is to introduce residents to energy-saving products they can purchase and easily install in their homes. As a lead Energy StarTM partner in the state, DCCA provides information and resources to Illinois consumers on energy efficiency and renewable technologies through a variety of consumer education and assistance programs.
The kits contain four compact fluorescent lamps (CFLs), foam weatherstripping, outlet and switch gaskets, a low-flow showerhead, and a window film kit.DCCA selected CFLs that showcase different manufacturers, different lamp shapes, and colors-including full-spectrum-to demonstrate the variety of CFLs available on the market. More than 70,000 kits have been purchased for distribution throughout the state.
DCCA takes advantage of the services of two associations for retarded citizens to purchase and distribute kits and maintain a database of recipients. This partnership highlights an added benefit of our kit program as it provides training and employment for these adults. Contact: Byron Lloyd, (217) 785-0201, blloyd@commerce.state.il.us
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This BP station and Mac's Convenience Store in Springfield obtains about 20% of its electricity from solar electric PV modules that comprise the roof of the canopy covering the gas pumps. Credit: Sara Ettinger, Illinois Department of Commerce and Community Affairs |
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Illinois' First PV Convenience Store Opens Downstate
Illinois' first solar-powered convenience store opened December 4th in Springfield. Mac's Convenience Store installed 280 photovoltaic (PV) modules as part of a $1 million renovation of the BP-Amoco gasoline station and store. The modules are rated at 10.1 kilowatts (kW) peak and form the roof of the canopy over the pumps. They are made from thin-film PV materials, developed by BP Solar, that are semi-translucent, thus providing lighting to the refueling area below.
Earlier in the year, the DCCA awarded the station a $60,741 grant to install the solar modules. Said DCCA Deputy Director Mitch Beaver, "Illinois is committed to solar power as part of our state energy policy." For more, see the DCCA press release.
Iowa
Iowa Energy Bureau Helps Biofuels Industry with Environmental Compliance
As the Iowa biofuels industry grows as never before, environmental compliance becomes more important. Since 2001, 11 new ethanol plants have been planned or are already constructed, and two biodiesel plants are either expanding or building new production capabilities. To help ethanol and biodiesel producers when building new plants, the Iowa Department of Natural Resources (DNR) made environmental compliance a top priority in 2002. DNR began the process when it hosted a stakeholder meeting in October. For more details, see the DNR Energy Bureau's program for renewable fuels. The DNR's goal is to provide compliance assistance, education, and serve as a resource in the early stages of planning. "DNR strongly supports the development and expansion of the biofuels industry," said DNR Director Jeff Vonk. "We want to help Iowa industries do what is best for our natural resources without sacrificing economic success."
Photovoltaic Guide for Building Owners
The Iowa Energy Office (DNR) has published a guide to help building owners interested in installing photovoltaic (PV) systems.
Designed for both residential and commercial applications in the Midwest, the guide offers a complete checklist of questions to consider when installing PV. These issues include where the system should be located, how much it costs, when PV makes economic sense, and more. In addition to Iowa, the guide also includes a list of resources, incentives, and programs for Illinois, Minnesota, Missouri, Nebraska, and Wisconsin.
Midwest Region Consumer's Guide to Buying a Solar Electric System
(PDF 2.16 MB)
Download Acrobat Reader
Iowa Department of Natural Resources; 24 pp.; July 2002.
Kansas
Kansas Urban Gridless Home
"Dorothy didn't live in this Kansas house..." So begins the virtual tour of a comfortable and energy-efficient home that resides in cyberspace and relies heavily on solar energy. It is called the Gridless Urban House Project.
This Web site features a virtual tour of the home, which is located conceptually in the suburban Kansas City area of Johnson County. It showcases energy-efficient techniques used in the home, such as lightning, high-performance foam insulation, solar hot water, passive solar heating and cooling, and a photovoltaic (PV) system rated at 4 kilowatts (kW).
Sponsored by the Energy Programs Division of the Kansas Corporation Commission, the Web site shows that an urban home can become nearly self-sufficient and not have to rely on the natural gas and electricity grids.
Michigan
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The winning team from Lawrence Technological University made this small model of a home that will produce as much energy as it consumes every year. |
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Michigan Zero-Energy-Home Design Competition
The Michigan Energy Office awarded two Michigan architectural colleges awards in its Zero-Energy Homes Design Competition on December 19th. A zero-energy home produces all of the energy it consumes from renewable energy resources over the course of a year. The homes can obtain energy from passive solar design, solar-electric photovoltaics, active solar heating, and bioenergy. They can use electricity from the utility electric grid as long as they provide an equal amount back to the grid.
The designs provide 1,200 square feet of habitable space in a single story, accommodate modern appliances, and build as inexpensively as possible. The award criteria included accuracy and adequacy of energy calculations, quality of plans, creativity of design, completeness of specifications, cost, and use of Michigan products.
An evaluation committee comprised of builders, architects, and manufacturers of energy efficiency products recommended awards to the following winning teams:
- First place, worth $10,000, to students from Lawrence Technological University (LTU) in Southfield, Michigan.
- Second place, worth $7,000, to another team from LTU.
- Third place, worth $3,000, to a team of students from Andrews University in Berrien Springs.
Minnesota
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This informational kiosk in the Minneapolis - St. Paul Airport educates travelers about the benefits of ethanol as a transportation fuel. |
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E85 Kiosk in the Minnesota Airport
More than nine million travelers will see a new E85 Kiosk in the Minneapolis - St. Paul International Airport this coming year. The 12-foot marquee and antique fuel pump are reminiscent of an old-time service station, while the high-tech touch screen entices visitors to test their knowledge with questions on E85 and flexible fuel vehicles. The exhibit's tagline, "Use E85 Fuel . . . We'll Grow More," expresses the connection between agriculture and renewable energy.
E85 is an alternative transportation fuel consisting of 85% ethanol and 15% gasoline designed for use in flexible fuel vehicles. As of 2002, there are approximately 85,000 such vehicles registered in Minnesota. Although year-end statistics are not yet available, Minnesota sales of E85 are expected to have increased by 60% in 2002 over the previous year. Prices for E85 vary considerably across the state, but most stations charge $0.15 to $0.20 less per gallon for 105-octane E85 than they do for 87-octane gasoline.
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| Minnesota's E85 kiosk is user-friendly and packed with facts about the benefits of E85. Credit: Tim Gerlach |
The exhibit is sponsored by the Minnesota E85 Team, which is a coalition that includes the energy office, among others:
- American Lung Association of Minnesota
- Ford Motor Company
- Minnesota Corn Growers Association
- Minnesota Coalition for Ethanol
- Minnesota Department of Commerce (Energy Office)
- Minnesota Department of Agriculture
- Minnesota Office of Environmental Assistance
- National Ethanol Vehicle Coalition
- U. S. Department of Energy Clean Cities
By the end of 2002, four new E85 fueling outlets opened in Minnesota. This addition brings the state's total to 70 stations, which is the largest number of E85 stations in any state in the country. Currently there are 10 additional E85 stations in various stages of development.
New York
NYSERDA Grant to Brewery
The Anheuser-Busch brewery in Baldwinsville, New York, will install new heat recovery equipment that should save the company more than $550,000 each year in energy costs, thanks to state incentives. The New York State Energy Research and Development Authority (NYSERDA) is providing a $250,000 cash incentive to the brewery in support of its $1 million renovation.
The project will use an innovative configuration and underused heat recovery technology to recover 25% more waste energy than is currently recovered from the brewery's four boilers. The new equipment should be installed by fall 2003. Located just outside of Syracuse, the brewery produces about 8 million barrels of beer each year.
New York Energy $mart™ Grant to IBM
NYSERDA announced another energy efficiency grant, this one for $735,000, on December 4th to IBM. The grant will partially support replacement of two 2000-ton chillers and installation of a third chiller of the same size for backup at IBM's 40-building facility in East Fishkill. The project reduces IBM's electric usage during peak load summer months, provides high-efficiency cooling from the new centrifugal chillers, and decreases environmental emissions.
Under its New York Energy $martTM program, NYSERDA provides incentives for New York industries to install cost-effective energy equipment. The amount of the incentives depends on the performance of the equipment.
Rhode Island
Rhode Island Energy Office Administers Renewable Energy Fund
Beginning January 1st, the Rhode Island State Energy Office (RISEO) will take over administration of the state's Renewable Energy Fund. The fund is generated from a small fee on all sales of electricity (kWh) in the state, excluding Block Island, and will be used to bring more affordable electricity from renewable energy to Rhode Island customers.
Source: December 13th issue of SolarAccess.com.
South Carolina
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BMW's manufacturing plan in Spartanburg, South Carolina, obtains part of its electricity from landfill gas. Pictured here is the BMW Zentrum museum located on I-85 outside of Spartanburg. Credit: BMW |
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Car Manufacturer Uses Landfill Gas
The BMW automobile manufacturing in Spartanburg has become the first non-utility company in South Carolina to use landfill methane gas as a source of energy in more than two decades. In April 20002, BMW signed a 20-year contract to purchase the gas from a Waste Management, Inc. landfill located about 10 miles away. Ameresco Energy Services of Farmington, Massachusetts, cleans the gas, compresses it, and pumps through a pipeline it built to BMW to fuel four turbines at the plant. The turbines owned and operated by Ameresco generate electricity and heat water, supplying approximately 20% of the facility's energy needs. As of January 2003, the BMW system is built and Ameresco is testing it for commissioning. When it starts up at the end of the month, it will be the only non-utility landfill gas facility operating in the state. For more information, see the Ameresco press release.
The South Carolina Energy Office (SCEO) helped put the project together in cooperation with the U.S. Department of Energy's Southeast Regional Biomass Energy Program and the U.S. Environmental Protection Agency's Landfill Gas Outreach Program. The project has the equivalent environmental benefit of removing 61,000 cars a year from South Carolina highways and saving 80,000 to 100,000 barrels of crude oil annually.
South Carolina Shows Energy and Dollar Savings
The South Carolina Energy Office (SCEO) reports that its energy efficiency projects have saved taxpayers almost $6 million in energy bills at state agencies, public schools, and local governments since 1995. Taxpayers will eventually save $27 million over the lifetime of the energy conservation retrofits facilitated by the SCEO.
For example, 23 school districts are saving $231,500 annually in reduced energy costs as a result of SCEO School Initiative grants for lighting retrofits and other energy efficiency improvements. Altogether, SCEO has implemented energy projects at 45 schools at a cost of $1.1 million. These projects are expected to have a lifetime of 20 years and over this period save the school districts $4.6 million.
For more information, see pages one and three in the winter addition of the SCEO quarterly newsletter, The Energy Connection (PDF 365 KB). Download Acrobat Reader
Washington
Washington Holds Public Meetings on Energy Strategy
The Washington State Office of Trade & Economic Development (OTED) held public meetings on December 2nd and 4th to obtain input on the State Energy Strategy and the 2003 Biennial Energy Report to the Legislature. This year, these reports focus on electricity issues.
Wisconsin
Wisconsin Energy Initiative Reduces Government Spending
The Wisconsin Department of Administration (DOA) reported December 16th that the state has reduced its energy consumption per square foot of state-owned buildings by 14.3% since 1973. Summarizing the successes of the Wisconsin Energy Initiative, DOA highlights energy and tax savings by reducing energy consumption in schools and other government buildings.
The initiative began in 1992 by upgrading lighting fixtures in 50 million square feet of state-owned buildings. A decade later, this first effort has reaped millions of dollars in savings to the treasury and led to second and third phases.
Says Wisconsin Governor Scott McCallum, "The value of this initiative extends far beyond state government's own facilities. Because of the unprecedented scale of our energy conservation upgrades, the state has not only directly reduced costs and greenhouse gas emissions, it has helped transform the market for energy-efficient lighting products." In 2000, the U.S. Environmental Protection Agency named Wisconsin its Energy StarTM Buildings Partner of the Year, the first state to receive such recognition.
For more information, see the DOA press release.
State Energy Information
New state Web sites and publications, and DOE pubs dealing with energy efficiency and renewable energy in the states.
Connecting to the Grid
The Interstate Renewable Energy Council (IREC) publishes this monthly newsletter about developing state rules and national standards for interconnecting renewable energy systems to the utility grid. In the December 2002 issue, read about FERC's rulemaking for standards for small generators and stories from nine states
Connecting to the Grid
The Interstate Renewable Energy Council (IREC) publishes this monthly newsletter about developing state rules and national standards for interconnecting renewable energy systems to the utility grid. In the December 2002 issue, read about FERC's rulemaking for standards for small generators and stories from nine states
NASEO's Distributed Generation Analysis
Conduct 20-year life-cycle analysis of distributed generation using this program in Microsoft Access format that was partially sponsored by DOE
Reducing Gasoline Consumption: Three Policy Options
The Congressional Budget Office examines the effect of three policy options for reducing U.S. Dependence on foreign oil and lowering emissions of carbon dioxide-new gasoline taxes, carbon emissions limits from gasoline consumption, and raising corporate average fuel economy (CAFE) standards; 49 pp (PDF 608 KB)
State Initiatives
The Renewable Energy Policy Project (REPP) provides a complete guide to legislation, key contacts, and program reporting requirements for state System Benefit Funds, Renewable Portfolio Standards, and NOx State Implementation Plans
AWEA Inventory of State Incentives for Wind Energy
(PDF 1.14 MB)
The American Wind Energy Association (AWEA) publishes a list of tax and other incentives for wind; 123 pp.; September, 2003.
The New Mother Lode — The Potential for More Efficient Energy Use in the Southwest
(PDF 638 KB)
The Southwest Energy Efficiency Project publishes this report written by Howard Geller; 137 pp.; November, 2002.
The Reliability of Bulk Electric Systems in North America 2002 - 2011
(PDF 418 KB)
According to the National Energy Reliability Council (NERC), existing U.S. power supplies will meet demand until 2005; NERC; 74 pp; October, 2002.
Utility Energy Efficiency Programs and Public Benefits Charges in the Southwest
(PDF 80 KB)
The Southwest Energy Efficiency Project publishes this report written by Howard Geller; 19 pp.; May, 2002.
State Energy Web Sites
California High Performance Schools Publications
The California Energy Commission (CEC) publishes several manuals for architects, designers, school maintenance staff, and decision makers on how to construct high performance schools.
California Wind Resource Maps 2002
The California Energy Commission (CEC) publishes wind resource maps for the state online and in glossy print format
WSU Energy Newsbriefs
Washington State University Cooperative Extension Service publishes this weekly newsletter on energy issues affecting the nation. It is one of the best energy bibliographies there is