California Makes U.S. Energy History, Again
Our most solarized state may soon be our greenest. The California Public Utilities Commission just made U.S. energy history by approving a new $3.1 billion energy efficiency program. And this funding won’t be slowly meted out over 20 years as you might expect. The Golden State is getting down to brass tax, allocating the entire sum in just three years through efficiency programs and consumer rebates.
Photo Credit: CleanTechnica
The well-endowed program should have a considerable effect on the economy and green job creation, as well as help the state inch closer to its current renewable electricity standard: 20% renewable by 2010. Who will benefit? Companies creating efficient products, retailers selling them and of course, consumers using them.
The program should be an immediate shot in the arm to California’s green economy, given that most energy efficient upgrades can be easily handled by contractors and their employees without the additional training needed for solar installations.
In other words, everyone in California can get in on the action.
Savings in Energy
According to the CPUC, the program will save nearly 7,000 gigawatt hours and 1,500 megawatts of electricity, as well as 150 million metric therms of natural gas. These savings equal three 500 MW power plants and avoid 3 million tons of greenhouse gas emissions.
The program also aims to reduce energy consumption in 130,000 existing California homes by 20% before 2012.
What’s in it for You
The nation’s largest energy efficiency effort ever includes some big money for innovative programs. Everyone from municipalities to homeowners can get a piece of the pie. Here’s how a good portion of the funding breaks down:
- $175 million to deliver net zero energy homes and commercial buildings
- $260 million for 64 cities, counties and regional agencies for public sector efficiency upgrades
- Over $100 million for education and training programs at all levels of the education system
- Funding for municipalities in order to offer low-cost financing for energy efficiency projects
- Rebates for apartment complexes for appliance upgrades
- Money for new buildings exceeding by 15% California’s Title 24 Energy code
- Funding for retailers to reduce the cost of CFL and LED lighting, as well as efficient televisions and computers
- Homeowners get rebates for Energy Star appliances and/or for recycling old appliances
The Funding
You may be wondering by now where $3.1 billion will come from in a state facing unprecedented budget shortfalls. The funds will come out of a section of the California state budget which regulated utilities may tap into for investments in conventional electricity. But instead of chasing coal, Southern California Edison, PG&E, San Diego Gas and Electric, and Southern California Gas Company will chase energy efficiency.
This historic funding is monumental for California and the United States. Between solar power and energy efficiency, California can prove to the world that it pays to be green. Done right, this funding could lift up neighborhoods and communities from the inner city to the mountain pasture. Thousands of people can find jobs, while thousands more can worry less about losing theirs.
The CPUC predicts that the program will create between 15,000 and 18,000 new green jobs.
Today, Californians should feel proud to lead once again. Not to mention excited to get that new refrigerator, stay warmer this winter – or better yet – get back to work.
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Posted on September 29th in Solar Funding by Dan.