Monday, March 23, 2009

Implementing a Federal Energy Efficiency Resource Standard

We all hear about the proposed benefits of purchasing energy efficient products for our home and how much we can save by doing so. Most people figure I can save money and save the environment at the same time. Unfortunately this may be a stretch; studies are showing that people who purchase energy efficient products such as washing machines actually use the product more thus not saving energy or money. "Just as dieters might binge on Snackwell's low-calorie cookies, people who buy energy-efficient items for their homes sabotage their efforts to save power — often by using the appliances more heavily". This effect could possibly take away from the new programs established by the Obama administration.

The $787 billion stimulus package signed by Obama last month includes $5 billion for weatherization programs and $300 million in rebates for energy-efficient products. A solution to this could be the establishment of a national standard for energy efficiency. The American Council for an Energy Efficient Economy (ACEEE) says in a study published this month (March) the introduction of a national Energy Efficiency and Resource Standard (EERS) would not only save billions but create jobs and cut greenhouse gas emissions. Other benefits include 220,000 net permanent jobs and 390 power plants that won’t need to be built. is aimed at creating incentives for the introduction and installation of energy saving initiatives and devices and includes rebates on measures such as efficient air conditioners, water heaters and lighting systems.

Creating this national standard would be an effective way of regulating energy efficiency of products as well as consumers. This would help to limit the problem of overusing energy efficient products in the home. The standard would require natural gas and electric utilities to meet energy saving targets or face penalties in a bid to drive them to help consumers reduce energy use. This is a good way to maximize efficiency and provide benefits to consumers, such as rebates and incentives. The new Save American Energy Act in a proposal for federal energy efficient standard states "Expanding investments in energy efficiency programs at the national level will save consumers money, promote economic development and reduce emissions of air pollutants and greenhouse gases that contribute to global warming." If the standard is adopted it should be a successful means of reducing energy while benefiting the consumer in more ways than one.



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