Clean Energy In the News

Energy-efficiency projects in the state and Austin have received a boost from the Obama administration with more than $200 million in additional stimulus funds.

Vice President Joe Biden and Energy Secretary Steven Chu announced their plan Thursday to invest $3.2 billion in energy efficiency and conservation projects nationwide. About $7 million will be allocated to Austin.

The new fund comes in addition to the $500 million allocated to Texas at the beginning of the month and is part of the Energy Efficiency and Conservation Block Grant, funded by President Barack Obama’s American Recovery and Reinvestment Act.

At the city level, the $7 million granted to Austin will add to the $20 million already promised by the federal stimulus package.

It it uncertain how the state and city will distribute the funds.

R.J. De Silva, a spokesman for the Texas comptroller’s office, said $45 million of the total stimulus funds will be provided to state energy-conservation projects and that the rest will go to city projects.

The state comptroller’s office has identified a list of eligible projects for the stimulus funds, including a grant to carry out green building contracts, provide financial incentives for energy-efficiency improvements and install solar panels on along interstate highways to conserve energy in operation and maintenance activities.

Environment Texas director Luke Metzger said energy efficiency is the cheapest, fastest and cleanest way to meet energy needs. He said investing money in these types of programs will put people back to work building green schools and weatherizing homes.

“I think this is a down payment on what the president promised as far as transforming the way we produce energy in the United States,” Metzger said. “We need to deal with global warming and energy efficiency in a way that will put people to work.”

The mayor’s office submitted a list of projects to the U.S. Conference of Mayors suggesting ways to spend the federal stimulus funds.

Austin Mayor Will Wynn is the chairman of the Energy Committee for the U.S. Conference of Mayors and pushed for the energy-efficiency federal funds.

“It’s important that we help bring the rest of the country forward not only because of our shared susceptibility to global warming, but also because it helps the level of energy and housing markets in which we all operate,” Wynn said.

Linda Muller, spokeswoman for the U.S. Department of Energy, said states, counties and cities have to apply to receive the funds. When they receive the application, they have to estimate the energy savings involved, the amount of renewable energy installed, the greenhouse gases that will be reduced and the jobs that will be created.

She said that because the announcement was made today, neither Texas nor Austin has applied for projects.

The money allotted was based on population.

The market for energy efficient programs, including weatherizing homes and solar installation, is on the rise, but many of the programs depend on rebates. The Austin Energy Solar Rebate Program and federal stimulus funds alleviate high costs.

Austin Energy has programs in place that weatherize 500 to 600 homes a year. The company spends $25 million a year on energy efficiency programs.

There is a 30-percent tax credit and a rebate program in Austin for utilizing solar panels. Solar panel installation is one of the projects funded by the federal stimulus grants.

Linda Haas, a spokeswoman for Meridian Solar, said solar installation for an average facility or home costs about $25,000 but rebates and stimulus funds cut it to about $7,000 or $8,000.

“We know anecdotally from our own business that despite the waning economy, business has been brisk,” Haas said. “With the new presidential administration and the push for clean energy bills, things are coming together and we expect growth.”

The energy bills will be lower for structures with solar installation because rates are locked in. The rate of electricity costs has increased by 5 percent each year.

“From that sense, it’s almost like a hedge of an investment,” Haas said.