Category: News

Energy-efficient homes have significantly lower default and delinquency rates than typical homes, according to an internal analysis conducted for a major financial institution last year. Here’s yet another reason why it makes no sense that Fannie Mae and Freddie Mac have effectively killed Property Assessed Clean Energy (PACE), a financing tool that has helped make efficiency improvements affordable for thousands of American homeowners.

Homes built to federal Energy Star standards for efficiency had default and delinquency rates 11 percent lower than other homes, the 2009 analysis found, according to two people familiar with the document. The analysis accounted for variables including income and location, since many new homes are built in sprawling areas (where high transportation costs contribute to foreclosure rates).

“It was a robust statistical analysis that found, with a 99-percent confidence interval, that energy-efficient homes had significantly lower default and delinquency rates,” said one person. Both sources asked to remain anonymous to protect relationships with finance institutions.

The nation’s largest PACE program, in Sonoma County, Calif., has also found that energy-saving improvements tend to make homeowners more financially secure. The property-tax delinquency rate for the county’s 900-some PACE participants was 1.2 percent, compared with 3.5 percent for the county as a whole, according to deputy county counsel Kathy Larocque.

Read the complete story at GRIST

California Attorney General Jerry Brown filed a lawsuit Wednesday against mortgage giants Fannie Mae and Freddie Mac and their federal regulator over their opposition to a home energy-improvement program backed by the Obama administration.

The regulator, the Federal Housing Finance Agency, last week dealt a blow to that initiative when it directed Fannie and Freddie to avoid participating in the program.

The program to encourage home-energy improvements, called Property Assessed Clean Energy, or PACE, allows municipalities to make loans through special property-tax assessments for homeowners to install solar panels, energy-efficient heating systems and other upgrades. Local governments sell municipal bonds to fund loans that property owners pay off over 15 to 20 years.

The program raised concerns among mortgage investors and regulators because PACE liens, like all property-tax assessments, are senior to existing mortgage debt. That enables cities to sell bonds more easily because in the event of a foreclosure, PACE liens are paid off before the mortgage lender can recoup any money.

FHFA and the Office of the Comptroller of the Currency have said the programs don’t have sufficient safeguards to ensure that homeowners have the ability to repay the new debt. Representatives of Fannie, Freddie and the FHFA declined to comment Wednesday.

Advocates say the companies and federal regulators are undermining a novel financing mechanism to leverage private-sector investments to fund energy retrofits, which will create jobs and encourage conservation.

Mr. Brown said in a statement that he was taking legal action “to stop the regulatory strangulation of the state’s grass-roots program.” Mr. Brown, a former California governor, is the Democratic nominee in this fall’s gubernatorial election.

The lawsuit, filed in federal court Wednesday, challenges the authority of federal regulators to restrict local governments’ ability to use their tax-assessment authority. The state also seeks to force regulators to conduct an environmental review before taking any steps that could curtail the program’s reach in California.

Mr. Brown said Fannie and Freddie had created “impermeable barriers to bank lending” after having “received enormous federal bailouts.” The federal government took over Fannie and Freddie nearly two years ago and has injected $145 billion to keep the companies afloat.

Supporters say they also plan to introduce legislation in Congress that would put the programs on solid footing. “We’ve got a problem, and the problem are the regulators,” said Jeffrey Tannenbaum, the founder of PACENow.org, an advocacy group, on a conference call with supporters on Wednesday.

Nearly two dozen states have passed laws that allow municipalities to set up the programs, and several cities, including San Francisco and San Diego, had planned to start offering PACE loans this summer. Advocates say the regulatory directives have made it impossible for the municipalities to claim millions in federal stimulus money to set up the programs.

by Nick Timiraos of the Wall Street Journal

“Greenwashing” typically refers to marketing and advertising claims that are based on environmental puffery rather than performance. Experience indicates that many claims, even those from sophisticated multinationals, fall under the “greenwashing” banner. While such claims may seem to make sense over the short-term, they create long-term potential for consumer dissatisfaction, regulatory challenges, and even monetary damages.

While standards differ globally, the U.S. Federal Trade Commission (FTC) regulations are a good model to follow virtually anywhere in the world. Listed below are the four factors of most concern to the FTC regarding advertising claims of all types, but specifically environmental claims.

1. Specificity

The single most important point to remember when making claims is to be as specific as possible. Doing so will require that claims be substantiated by communicating all of the following:

• What is being claimed  (e.g., Reduced energy consumption during production…)
• By how much – (e.g., …by 12%)
• Compared to what – (e.g., …versus the previous product formulation.)

Claims that are general or vague are not only considered to be meaningless, the FTC considers them to be deceptive. Technically, this means claims that appear to be simple and harmless, such as “eco-friendly” and “green,” are actually open to scrutiny and legal action.

Read the complete article at Environmental Leader

A full analysis of FTC environmental marketing claims by ULS Editor Bob Lilienfeld can be found at http://www.use-less-stuff.com/resources.htm

Almost two-thirds of healthcare organization, 62 percent, said they plan to make capital investments in energy efficiency over the next 12 months, according to a new survey by Johnson Controls.

In March 2010, Johnson Controls, in conjunction with American Society for Healthcare Engineering (ASHE) and the International Facility Management Association (IFMA), commissioned the 2010 Energy Efficiency Indicator (EEI) survey, which polled 2,882 executives and managers responsible for making investments and managing energy in facilities worldwide. Of these respondents, 288 operated in the healthcare sector in North America.

The results show the healthcare industry to be a leader among sectors in pursuing energy efficiency initiatives. The percentage of healthcare respondents planning such investments this year exceeds the overall percentage for North American by a 12-15 percent margin.

The survey also found that 58 percent of healthcare building decision-makers say that energy management was very or extremely important to their organization, compared with 52 percent among North American respondents across all sectors.

The survey found that the most important decision driver for energy efficiency investment in the healthcare sector is the potential for cost savings, as 99 percent of respondents said that factor was somewhat, very, or extremely important to their organization. Cost savings was also the most important driver in North America and worldwide.

Read the article at Environmental Leader

The City of Las Vegas announced that it would be putting its money on Hara to consolidate the city’s energy and natural resource emissions data. Hara will develop a system to track, manage and optimize the city’s sustainability initiatives, according to a press release.

Hara’s Environmental and Energy Management (EEM) solution will allow the city to manage the execution of its leading environmental and energy programs, track results per initiative, and provide an audit trail for any current or future regulatory requirements. The software will give the city clear performance metrics and stakeholder transparency capabilities that meet reporting requirements for sustainability initiatives and government funding programs such as the Department of Energy’s Energy Efficiency and Conservation Block Grant (EECBG).

The city’s strategy includes numerous environmental policies and initiatives such as constructing new buildings to Leadership in Energy and Environmental Design (LEED) standards, water stewardship, alternative transportation, recycling and greater energy efficiency through conservation and development of renewable energy sources.

Read the complete article at Environmental Leader.

U.S. Department of Energy (DOE) Secretary Steven Chu, U.S. Department of Interior (DOI) Secretary Ken Salazar, and Senate Majority Leader Harry Reid of Nevada announced today the site of the new Solar Demonstration Zone to demonstrate cutting-edge solar energy technologies. The Solar Demonstration Zone will be located in the southwest corner of the Nevada Test Site, a former nuclear site, on lands owned by the Department of Interior’s Bureau of Land Management (BLM) and administered by DOE’s National Nuclear Security Administration. Secretaries Chu and Salazar signed an interagency Memorandum of Understanding that will enable the Department of Energy to develop innovative solar energy projects at the Nevada Test Site. These projects will serve as proving grounds for new solar technologies, providing a critical link between DOE’s advanced technology development and full-scale commercialization efforts.

“The Nevada Test Site is about to play a new role in securing America’s future—but instead of testing nuclear weapons, we will test new solar technologies that will help put America on a sustainable energy path,” said Secretary Chu. “Working closely with the Department of Interior, and with the critical leadership of Senator Reid, we will demonstrate technologies that will lower the cost of solar energy, accelerate the pace of innovation, and help build a clean energy economy.”

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Washington D.C., July 2010 – Now that the dazzle of Independence Day has come and gone, it’s about time for the “Dog Days” of summer that boost electricity use and put a strain on both consumers’ pocketbooks and the nation’s electricity grid. To help alleviate the pressure, the Alliance to Save Energy advises consumers to take energy efficiency steps around the home to save money and help prevent power outages.

The Alliance has projected that the average U.S. household will spend more than $2,000 on home energy this year, so cutting monthly bills by 10 or 20 percent with energy efficiency means significant savings. The Alliance also notes that certain energy efficiency home improvements qualify for generous federal income tax credits of up to $1,500. The credits expire on December 31, 2010; so it’s a good time to consider taking advantage of them.

The Alliance suggests the following tips to help beat the heat:

• Cooling puts the greatest stress on the power grid and summer energy bills, so make sure your AC equipment is in top running order.  A professional “tune-up” could save you the cost and misery of a breakdown on the hottest days.
• Replacing your 12+ year old central air conditioning system (CAC) with an ENERGY STAR qualified model could cut your cooling costs by 30 percent, according to the Environmental Protection Agency (EPA). And while these products can have a higher purchase price, the cost difference will be paid back over time through lower energy bills, EPA adds.
• For optimum performance, make sure CAC systems or window units are properly sized. EPA says a system that’s too large will not keep your home comfortable due to frequent “on/off” cycling. Incorrect sizing can also put stress on system components and shorten the equipment’s life. A qualified contractor can help you ensure proper sizing.
• Purchase the AC unit with the highest Seasonal Energy Efficiency Ratio (SEER) that you can afford – the higher the SEER level, the more energy efficient the equipment. Current federal appliance standards require a SEER rating of at least 13 on CAC systems.
• Clean or replace CAC system filters monthly – and window unit filters even more frequently.
• Using ceiling fans to circulate air will make you feel cooler and possibly allow you to raise the temperature setting on your AC thermostat by a few degrees. But be sure to turn the fan off when you leave the room, because fans cool people, not rooms.
• A programmable thermostat automatically coordinates indoor temperatures with your daily and weekend patterns, reducing cooling bills by up to10 percent by raising the indoor temperature while the house is empty – yet ensuring that when you return home, it’s cool and comfortable.
• Plug energy leaks with weather stripping and caulking and be sure your house is properly insulated to save up to 20 percent on cooling (and winter heating) bills. These (and other) energy efficiency home improvements can generate a federal tax credit of up to $1,500; see www.ase.org/taxcredits for details on qualifying products.   
• Shift energy-intensive household chores such as laundry and dishwashing to off-peak hours – nights, mornings, weekends – when there is less strain on the power grid; and operate these units with full loads to get the most for your energy dollars
• Save water and energy with ENERGY STAR-certified clothes washers and dishwashers. Choose clothes dryers with moisture sensors that reduce drying time. 
• Your refrigerator runs 24/7 and accounts for almost 10 percent of your home’s total electricity bill. To reduce energy bills and extend the life of the appliance, keep the coils clean – they are located behind or underneath the fridge. 
• If your fridge dates from the 1980s, replacing it with an ENERGY STAR model can save you more than $100 each year. Replacing a 1970s fridge with an ENERGY STAR model can save nearly $200 each year! Use the ENERGY STAR Savings Calculator to find out how much you can save by replacing an old refrigerator.
• Your air conditioner works overtime to cool hot air from sunny windows, so consider investing in energy-efficient windows to save money and increase indoor comfort. Efficient windows, glass doors and skylights are eligible for federal tax credits (see www.ase.org/taxcredits for qualifying criteria). If you live in the Sun Belt, look into “low-e” windows, which can cut the cooling load by 10 to 15 percent, according to the U.S. Department of Energy’s Energy Savers booklet (http://www1.eere.energy.gov/consumer/tips/pdfs/energy_savers.pdf).
• Curtains and shades on the sunny sides of your home will provide additional relief.
• Light up your life – efficiently.  Replacing incandescent light bulbs with compact fluorescent light bulbs (CFLs) that use only about one-quarter the energy and last up to 10 times longer saves up to $35 over the life of each bulb. If every U.S. household replaced just one incandescent bulb with an ENERGY STAR qualified CFL, we would collectively save enough energy to light 16 million homes and save over $4 billion in utility bills over the lifetime of the bulbs. In one year, we would save almost $750 million and enough energy to light about 3 million homes. And CFLs don’t add to your heat load – a bonus in the summertime!
• And to cut related electricity bills by 30 percent, look for the ENERGY STAR label when shopping for major appliances, home office equipment, electronics and additional products in more than 60 product categories. Find product information and nearby retailers at www.energystar.gov.

Visit Alliance to Save Energy for additional information.

About half of U.S. hospitals are recycling at least some of the medical supplies the would otherwise dispose of, as the health care industry is beginning to tackle the problem of medical waste, according to a report in the New York Times.

One hospital owner, the Hospital Corporation of America, recycled 94 tons last year. HCA owns 163 hospitals throughout the country. Reprocessing and remanufacturing programs from Ascent Healthcare Solutions has saved its hospital partners more than $82 million in supply chain costs during the first half of 2009.

The paper reported that the amount of medical waste produced in the U.S. is completely unknown, since the last estimate of 2 million tons is from several decades ago. Although hospitals have traditionally been unreceptive to calls to reduce or recycle their medical waste, the increased stress of a prolonged economic downturn as forced health care providers to look for ways to reduce costs, including costs associated with the use and disposal of medical waste.

The report highlighted one environmental non-profit, Practice Greenhealth, which counts 80 companies and 1,100 hospitals among its members. The group is trying to find new ways to reduce waste in the operating room, which according to the report generates 20 to 30 percent of hospital medical waste.

Changing the hospital culture of profligacy with its equipment and supplies can save hospitals money on the purchasing end, while reducing the amount of waste produced can save on landfill fees, the paper reported.

Read the complete article at Environmental Leader: