Economics Of Energy For Small Businesses

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Economics of Energy Efficiency

Energy Change Solutions

Carolyn Schrader

Topics • Green Everywhere and Everything• Primary Drivers to Change• Competitive Advantage• Practitioners

Energy Change Solutions

Everything Is Coming Up Green

• Green car racing• Bamboo anything• Green real estate law

Energy Change Solutions

Everything Is Coming Up Green

• Wal-Mart – sustainability plan requirement of all suppliers

• Smart Grid (monitoring energy usage at user location) – players include Cisco, IBM, Oracle

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3 Primary Drivers to Change

• Investment– Federal government– Cost of new power plants

• Laws & regulations– Federal, state, local

• Competition– Who can make money– Who can save money– Who will be forced to change

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Stimulus Bill – Energy California’s Share

• Energy Efficiency & Conservation Block Grant

• State Energy Program• Smart Grid• Weatherization Assistance • Applied Research, development,

demonstration and deployment• Military facilities• Science & Research facilities• Clean fossil fuel• Environmental clean up• Agriculture/bio-fuel

• $351 mil

• $266 mil• $ 5 mil• $185 mil• $ 13 mil

• $245 mil• $184 mil• $308 mil• $ 62 mil• $ 5 mil

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Stimulus Bill – Energy California’s Share

California’s total share = $1.6 billion• Plus competitive bidding opportunities

on $15.3 billion

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Federal Tax Deductions - Commercial Buildings

• Solar installation

• Owners or designers of new or existing commercial buildings that save at least 50% of the heating and cooling energy of a building that meets ASHRAE Standard 90.1-2001.

• Measures affecting the building envelope,

lighting, or heating and cooling systems

Energy Change Solutions

Federal Tax Credits - Consumer

• Heating/Ventilation/Air Conditioning (HVAC)• Insulation• Exterior Doors & Windows• Skylights• Metal and Asphalt Roofs• Water Heaters• Solar Systems• Small Wind Energy Systems• Hybrid Cars

Energy Change Solutions

Rebates - Commercial• Agriculture• Food services• Food processing• HVAC• Lighting• Refrigeration• Boilers and water heaters• Computing (data centers and PCs)

Energy Change Solutions

Rebates - Consumer• HVAC• Lighting• Appliances• Swimming pool pumps• Cool roofs• Water heaters • insulation

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Additional Rebates• Federal Program: Cash for Consumer

Appliances – CA: refrigerators, clothes washers, room air

conditioners– Can use with other rebates and tax credits– Target: early spring 2010

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State Bills• AB 32• AB 811• AB 1103• SB 375• Executive Orders• Title 24

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AB 32• Requires the California Air Resources

Board to develop regulations and market mechanisms that will ultimately reduce California's greenhouse gas emissions to 1990 level by 2020 (approximately 30%)

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AB 811• Assists municipalities with retrofitting

residential and commercial properties by providing low interest loans for energy efficient installations that are paid for using tax assessments

• In place in Sonoma County, Palm Desert, San Diego, and other locales

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AB 1103• Requires nonresidential building owner

or operator to disclose Energy Star Portfolio Manager benchmarking data and ratings, for the most recent 12-month period, to a prospective buyer, lessee, or lender.

• Effective January 1, 2010

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SB 375• Prompts California regions to work

together to reduce greenhouse gas (GHG) emissions from cars and light trucks.

• Requires integration of planning processes for transportation, land-use and housing.

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Executive Order• New California renewable energy goals is

33% by 2020 and processes improved for licensing renewable projects.

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Other • Title 24 – Green Building Code updates

effective 1/1/10– Light levels, lighting controls, air conditioning

effectiveness, etc.

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Financing

• Solar power purchase agreements• Solar leases• AB 811 loans• EEMs – Energy Efficiency Mortgages• EIMs – Energy Improvement Mortgages

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Competitive Advantage• Response for Proposals (RFPs)

• Supplier bidding

• Customer demand– Greenness of building, eco-friendly products used,

non-styrofoam packaging, local sourcing, recycling, waste reduction

• Employee selection

• Lending/leasing/buying – energy efficiency level

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Practitioners• Home inspection companies• HERS raters• Consultants• Engineers• Utilities• Specialists – HVAC, solar, green builders

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Questions?

Carolyn Schrader

www.energychangesolutions.com530.405.6089

carolynschrader@energychangesolutions.com

Energy Change Solutions

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