HOUSEHOLD ENERGY

EFFICIENCY
What you and the U.S. should be doing
to help reduce energy consumption
By Amy Lynn Strege
[email protected]
 Why worry?
The less energy we use, the less that will
have to be created (AKA “sixth fuel”)

Small changes can add up to big benefits

if everybody does their part

The change must begin at home before

others will jump on board
 Sixth Fuel
Energy efficiency is often called the sixth
fuel
The less energy you use, the less that will
have to be created by some other energy
source
Energy Efficiency can improve the overall
energy picture no matter what the
underlying energy source is
 Efficiency Measurements
Obviously, the more energy efficient
something is, the better it is

But how can I tell what efficiency is?

There are several ways to measure

efficiency; but there are also some
problems
 Measurement Problems
The more data collected, the more
expensive it is to analyze

Some data hard to obtain: Respondent

burden leads to non-participation or
inaccurate data

Global differences means difficulty in

comparisons
 Energy Efficiency Defined
Measurement relates to policy goal:
Different measurement indicators for
different goals:
 Higher productivity
 Resource conservation
 Economic well-being
 Improved environmental quality
 Examples
If goal is Global Warming abatement, then
look at absolute Carbon emissions

If goal is Economic Productivity, look at

energy expenditure per dollar of GDP

If goal is Environmental Quality, then look

at Carbon emission intensity
 Intensity as Surrogate
Energy Intensity is ratio of energy
consumption to some measure of demand

Choice of demand measure is critical, as it

is connected to the policy goal

Transportation- either gallon per

passenger mile or gallon per vehicle mile
would be appropriate, depending on goal
Most data is based on Intensity
Have to look at the underlying structure of the
indicator

Energy intensity improvements may mask

structural or behavioral trends that actually
lessen true energy efficiency

America’s average mile per gallons have

reduced, but an increasing trend away from
small cars and towards SUV’s means that
better efficiency has been avoided
U.S. Expenditures per GDP
Increased Demand
 Statutes
Energy Policy and Conservation Act
(EPCA) of 1975: voluntary minimum
efficiency standards for ordinary
appliances like freezers, TV’s, etc.

National Appliance Energy Conservation

Act (NAECA) of 1987: made these
standards mandatory
 How History Helps
In order to understand what we need to do
in the future, we have to understand how
America has worked in the past

Luckily, data exists to see what America’s

energy trends have been like, historically
Residential Energy Consumption
Survey (RECS)
Every 3 years by the EIA

National sample survey of more than

5,000 residential housing units and their
energy suppliers

Only comprehensive source of national-

level data on energy consumption for the
residential sector
RECS Trends
 Appliances
Every item that is plugged in to the wall in
your home is an appliance- and America is
addicted to them

Every year, we get a new Foreman Grill or

Smoothie Machine- and they all take
electricity to run
 Lighting
24-hr economy means more work done at
night
Think about how late you were up for your
last major project- and how many hours
your lights were on
Now multiply that by the number of law
school students in America
Compact Fluorescents are a good solution
 What Can the Law do?
Shouldn’t we be helping subsidize energy
efficient upgrades?
Should energy audits be required with
home inspections?
What about smart thermometers in every
home?
What about energy assistance grants?
What are we doing right now?
 EPAct 2005

There are several provisions in the Energy

Policy Act of 2005 directed at improving
residential energy efficiency
 Federal Efficiency
§ 102: 20% Reduction in Congressional
buildings by 2015

§ 104: Requirement to obtain energy-

efficient products

§ 111: Energy efficiency increase on

federal lands: “To the extent practical”
 Weatherization
§ 122: Increased Funding: $500,000,000
for fiscal year 2006, $600,000,000 for
fiscal year 2007, and $700,000,000 for
fiscal year 2008

For low-income households only

Public Energy Education Program
§ 133: Conference of:
 (1) industrial firms;
 (2) professional societies;
 (3) educational organizations;
 (4) trade associations; and
 (5) governmental agencies
Public Energy Education Program
§ 133: Goals: national public energy
education program to examine and
recognize interrelationships between
energy sources
 (A) conservation and energy efficiency;
 (B) the role of energy use in the economy;
and
 (C) the impact of energy use on the
environment.
 Efficient Public Housing
§§ 151-154:
Variety of programs to increase efficiency
in public housing:
 Lighting
 Appliances
 Building Standards
 Space Heating
 Subtitle A: Energy Efficiency
§ 911: OBJECTIVES: research, development,
demonstration, and commercial application of
the following goals:
 (A) Increasing energy efficiency of vehicles, buildings, and
industrial processes
 (B) Reducing demand for energy,
especially energy from foreign sources
 (C) Reducing cost of energy; making
economy more efficient and competitive
 (D) Improving energy security
 (E) Reducing the environmental impact of
energy-related activities
 Unanswered Questions
Are these goals good goals?

Is there any goal left out?

Can one meet all these goals at the same

time, and if not, which one should be
preferred?
 How to Meet these Goals?
§ 911: PROGRAMS:
(A) advanced, cost-effective technologies to improve the
energy efficiency and environmental performance of
vehicles
(B) cost-effective technologies, for new
construction and retrofit, to improve the
energy efficiency and environmental
performance of buildings, using a whole-
buildings approach, including onsite
renewable energy generation;
 How to Meet these Goals?
(C) advanced technologies to improve the
energy efficiency, environmental performance,
and process efficiency of energy-intensive and
waste-intensive industries; and

(D) advanced control devices to improve the

energy efficiency of electric motors, including
those used in industrial processes, heating,
ventilation, and cooling
 How Much $
(1) $783,000,000 for fiscal year 2007;

(2) $865,000,000 for fiscal year 2008; and

(3) $952,000,000 for fiscal year 2009

 How is Money Spent?
(1) § 912. Next Generation Lighting
Initiative: $50,000,000 for each of fiscal
years 2007 through 2009

(2) § 915: Electric Vehicle Battery Program:

$7,000,000 for each of fiscal years 2007 through
2009
 How is Money Spent?
(3) § 911: Energy Efficiency of Vehicles:
 (A) $200,000,000 for fiscal year 2007;
 (B) $270,000,000 for fiscal year 2008; and
 (C) $310,000,000 for fiscal year 2009

(4) § 911: Energy Efficiency of Electric motors,

$2,000,000 for each of fiscal years 2007 and
2008
§ 912. Next Generation Lighting Initiative

OBJECTIVES: To develop advanced solid-

state organic and inorganic lighting
technologies based on white light emitting
diodes (“LED’s”) that, compared to
incandescent and fluorescent lighting
technologies, are longer lasting, are more
energy-efficient and cost-competitive, and
have less environmental impact
 Where’s the Money?
Research Grants

Industry Alliance formation &

administration

Development & demonstration projects

 Approved by Industry Alliance
 Conducted in a cost-sharing method
 Other Incentives
Tax Credits: § 1332: For construction of new
energy efficient homes:
 Has to be constructed by a qualified contractor
 Has to be acquired for residential use within the same
tax year
 Includes substantial reconstruction and rehabilitation
 Must save at least 50% of average consumption of
comparable units
 Building envelope responsible for at least 1.5 of that
50% savings
 Other Credits
Tax Credits: § 1332: for new energy
efficient “Manufactured” homes:
 Same as constructed homes except:
 Must save at least 30% of average
consumption of comparable units
 Building envelope responsible for at least 1.3
of that 50% savings
 Meets Energy Star labeling provisions
 Other Credits
Tax Credits: § 1333: Certain Nonbusiness
Energy Property:
 Tax credit amount equals the sum of:
(1) 10 percent of the amount paid or incurred by
the taxpayer for qualified energy efficiency
improvements installed during such taxable year,
and
(2) the amount of the residential energy property
expenditures paid or incurred by the taxpayer
during such taxable year
 What is it?
Tax Credits: § 1333: an energy-efficient
nonbusiness property is:
 (A) an efficient electric heat pump water
heater
 (B) an efficient electric heat pump
 (C) an energy efficient geothermal heat pump
 (D) a central air conditioner which achieves
the highest efficiency tier, and
 (E) an efficient natural gas, propane, or oil
water heater
 Limitations
Tax Credits: § 1333: nonbusiness energy
property: Limitations:
 (1) LIFETIME LIMITATION: No more than the
excess (if any) of $500 over the aggregate
credits per taxpayer per year

 (2) WINDOWS: No more than the excess (if

any) of $200 over the aggregate credits per
taxpayer per year
 Limitations
 (3) LIMITATION ON RESIDENTIAL
ENERGY PROPERTY EXPENDITURES:
(A) $50 for any advanced main air circulating
fan,
(B) $150 for any qualified natural gas, propane,
or oil furnace or hot water boiler, and
(C) $300 for any item of energy-efficient
building property
 Other Credits
Tax Credits: § 1334: Energy Efficient Appliances:
Depends on type of appliance:
 (A) DISHWASHERS. Equal to the energy savings
amount; if:
(i) Model Year 2006 or 2007, and
(ii) Energy Star 2007
 (B) CLOTHES WASHERS. $100 if:
(i) Model Year 2006 or 2007, and
(ii) Energy Star 2007
 (C) REFRIGERATORS. Based on amount of energy
Savings
 Other Credits: Fridges
 (i) 15 PERCENT SAVINGS. $75 if:
(I) Model Year 2006, and
(II) consumes between 15% and 20% less kilowatt hours per
year than 2001 energy conservation standards
 (ii) 20 PERCENT SAVINGS. $125 if:
(I) Model Year 2006 or 2007, and
(II) consumes between 20% and 25% less kilowatt hours per
year than 2001 energy conservation standards
 (iii) 25 PERCENT SAVINGS. $175 if:
(I) Model Year 2006 or 2007, and
(II) consumes at least 25% less kilowatt hours per year than
2001 energy conservation standards
 Limitations
Tax Credits: § 1334: Energy Efficient
Appliances: Limitations:

Total aggregate tax credits shall not

exceed $75,000,000 minus the other
credits received under the statute.

Other limitations may apply, based on type

of appliance
 Other Credits
Tax Credits: § 1334: Residential Energy Efficient
Property:
Tax Credit of an amount equal to the sum of:
 (1) 30 percent of the qualified photovoltaic property
expenditures made by the taxpayer during such year,
 (2) 30 percent of the qualified solar water heating
property expenditures made by the taxpayer during
such year, and
 (3) 30 percent of the qualified fuel cell property
expenditures made by the taxpayer during such year
 Limitations
Tax Credits: § 1334: Residential Energy
Efficient Property: Limitations:
No more tax credit than:
 (A) $2,000 with respect to any qualified
photovoltaic property expenditures,
 (B) $2,000 with respect to any qualified solar
water heating property expenditures, and
 (C) $500 with respect to each half kilowatt of
capacity of qualified fuel cell property
So Where Does That Leave Us?
Most of the Government’s programs go to
efficiency in vehicles, industry, or other
sectors– NOT residential

Most of the real work of Energy Efficiency

is left up to the Consumer or Taxpayer

The future is up to us as a society, and as

individuals
So, What Can You and I Do?
UNPLUG (don’t just turn off) appliances
when not in use: a small amount of energy
is being used even when not plugged in
When you get new light bulbs, appliances,
etc., look for the Energy Star label and
compare efficiency
Caulking and Insulation means inside air
stays in and outside air stays out
 What Can I Do?
Use cool water when washing clothes, brushing
teeth, etc.
Take shorter showers and turn off the faucet
when brushing teeth
Limit use of hair dryers and curlers, mechanical
toothbrushes, etc.
Don’t leave computers running- shut them off
(and UNPLUG) when not in use
Try to limit use of everything during peak hours
 What Can I Do?
Limit the use of power tools, yard lights,
and other household electricity drainers
Turn off nightlights and decorative lighting
Unplug radios, speakers, electronics, and
gaming systems when not in use
Think about what is plugged into every
outlet in your home, and get rid of the stuff
you don’t use
What Can I Do: Space Heating
Wear a sweater in the winter and set
the thermostat lower
Drink lots of lemonade instead of
blasting your air conditioning
Don’t leave air conditioning on
overnight
Smart/Programmable thermostats
 Listen to your Mother
Keep any air registers, grills and radiators clean
and clear. Furniture, drapes, dirt or other
obstructions block heat
If you have a steam boiler and there is noise
coming from one of the radiators, or it isn’t
producing heat, then you probably need to bleed
trapped air from the line
If you have a furnace, regularly clean or replace
the air filter. Do this whenever you can see dust
buildup, about once a month during the heating
season. If fan is also used for air conditioning,
then service throughout the year
 Motherly Advice
Clean the furnace blower motor and fan blades
when you change the air filter. Only do this
yourself if you’re completely sure you have shut
off the electricity to the furnace
Check for soot, rust and corrosion in, on and
around the furnace and on the floor nearby. This
indicate the system requires immediate service
Open the curtains and shades on sunny days.
Design landscaping to let sunlight in south-
facing windows in the winter, provide shade in
the summer and block wind year-round
 Motherly Love
If you have a furnace, seal and insulate your
ductwork
If you have a boiler, insulate all pipes leading to
and from it
Use insulating window curtains at night to
reduce heat loss
Install a ceiling fan to circulate warm air, allowing
you to turn down the thermostat a few degrees
Seal drafty areas where outside air enters the
home, such as doors and windows, the chimney,
plumbing chases and attic hatches
 The Mother Lode
Use plastic window film, storm windows or
insulating window panels
Seal drafty areas where outside air enters the
home, such as doors and windows, the chimney,
plumbing chases and attic hatches
Hire an experienced energy auditor to pinpoint
air leakage areas that need to be sealed
Insulate the attic, walls and floor to
recommended levels
 Mother Said, Mother Said
Keep heat registers, radiators and baseboards
clean & clear
Use a tight-closing damper on fireplace
chimneys to prevent conditioned air from flowing
up the chimney
If the heating system is more than 15 years old,
consider replacing it with an Energy Star-
qualified system
If you are considering major renovations to your
house, have an energy audit performed to see if
any energy-efficiency improvements can be
made at the same time
 Web Sites: Organizations
American Council for an Energy-Efficient Economy
(202) 429-8873
www.aceee.org
Find ways to save energy and learn about U.S. energy
policies.
Energy Star program
(888) 782-7937
www.energystar.gov
Learn about Energy Star-certified homes, and energy-
efficient heating systems and other appliances
Energy Efficiency and Renewable Energy
Clearinghouse
www.eere.energy.gov
Find consumer information, tips for renters and
recommendations for how much insulation to use
Web Sites: Stores & Services
AM Conservation Group
(800) 777-5655
www.amconservationgroup.com
Energy Federation
(800) 379-4121
www.efi.org
Residential Energy Services Network
(760) 860-3448
www.natresnet.org/directory
Find energy auditors in your area
Home Energy Saver
hes.lbl.gov
Take this Web-based survey to get suggestions for
improving efficiency
 But I Am Just One Person!

Yes, but if everybody

pitches in, it will all
add up!
Do You Have any Ideas?