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KUFM Commentary - April 2009 --------------------------------------------------------- Efficiency Works . . . for Montana! In the contentious world of modern natural resource disputes, it can be easy to forget that the words "ecology" and "economy" both come from the ancient Greek word for "house." Americans and Montanans are now struggling with the dual challenge of an economy and an environment that are both deep in crisis. They are looking for solutions that will simultaneously improve the health of these two "ECO" systems. Fortunately, one opportunity fits the bill perfectly -- energy efficiency. Energy efficiency can be thought of as a resource like any other, except cheaper, cleaner, and faster to develop than the alternatives. It is also extremely abundant. Thanks to programs put in place over the last 30 years, efficiency now ranks as the region's third largest energy resource. Today, the Pacific Northwest is saving a whopping 3,700 megawatts -- more than twice the amount consumed in the entire state of Montana. In financial terms, that translates to well over $1 billion in annual savings -- money that can be reinvested into our local businesses and households. And, according to recent studies, the region can add another 5,000 megawatts of cost-effective efficiency by 2020. That's the conservation equivalent of TWENTY Highwood Power Plants. Energy efficiency works like a tailor-made tool for economic recovery. It produces lower and more stable utility bills for consumers. It represents a low-risk / high return investment. It creates local jobs in the energy services industry, and frees up capital for other job creation. It lessens our dependence on foreign energy. And, it is one of the few solutions to the paradoxical notion that what's good for our national economy -- consumer spending -- is often at odds with our household imperative to save money. Investments in efficiency align these interests. As we've learned, unchecked consumerism that exceeds our fiscal and planetary budgets cannot rightly be considered patriotic. But thoughtful investments in the future -- including energy efficiency -- produce dividends at the personal, community, national, and global scales. Simply put, efficiency means capturing energy currently going to waste, and putting it to productive use. As with any investment, this usually involves some up-front cost. But never before has there been so much assistance available. Montanans who invest in qualifying conservation projects can claim a 25 percent credit on their state income taxes – receiving up to $500 per individual per year. In addition, they can also claim a 30 percent credit on their federal taxes, up to a limit of $1,500 for this year and next. That means a homeowner could install $5,000 worth of insulation, new windows and new doors, and get $2000 back from the government -- a 40% rebate! And the same homeowner could repeat the process next year, perhaps by replacing an aging furnace with a high-efficiency model, and get another $2000 back. On top of that, NorthWestern Energy and many other utilities offer programs that can further reduce the out-of-pocket costs. The homeowner's remaining investment typically pays for itself in short order. After that, all future savings can be pocketed -- year after year. While Montana has some good incentives in place, there is much more that can, and should be done. The American Council for an Energy-Efficient Economy ranks Montana just 27th for efficiency, compared to 10th for Idaho, 6th for Washington, and 2nd for Oregon. And Montanans have considerably more to gain from efficient technologies, practices, and policies than most Americans. With a rugged climate and long travel distances, state residents spend a disproportionately high percentage of their budgets on energy. Efficiency provides a unique opportunity for each of us, and for the state as a whole to save some real money. On the environmental side, there is simply no better tool for combating global climate change than energy efficiency. The efficiency measures in the Montana Climate Action Plan, for example, would reduce the state's CO2 emissions by an amazing 23 million tonnes. Not only would these measures quickly pay for themselves, they would also put $817 million back into Montana's economy over the next 11 years. Two bills pending at the Legislature right now would go a long way toward boosting Montana's success: House Bill 361 would allow a city or county government to make loans to property owners for energy efficiency upgrades. The loans would be financed by the sale of bonds, and paid back by special assessments on the participants' property taxes. Senate Bill 37 would increase the popular $500 conservation tax credit I mentioned earlier, to $800. Lawmakers need to hear from their constituents that energy efficiency is a top priority, and that these bills ought to pass. A simple call (444-4800) can make a world of difference. I'm Patrick Judge for the Alternative Energy Resources Organization. AERO is a grassroots membership organization that's been building communities by linking people with sustainable agriculture and energy solutions for 35 years. If you'd like to get involved with agriculture and energy policy this legislative session, give us a call in Helena at (406) 443-7272.
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