Will Energy Savings Jump-Start the Economy?

CNN.com, by Steve Hargreaves, December 29, 2008

If a major conservation initiative is included in the stimulus package, it might look something like a plan being pushed by the Alliance to Save Energy. Under such a plan, the government would commit just over $30 billion towards making the nation energy efficient. The money would be spent as follows:

-- $3 billion for home energy retrofits, which could include rebate checks for people who buy energy-efficient appliances like air conditioners and refrigerators.

-- $3 billion for energy retrofits at public buildings, which may include hiring people to conduct energy audits and install so-called "smart-meters" that more efficiently allocate power.

-- $3 billion to promote energy efficiency in commercial buildings, largely in the form of tax breaks for developers who build them.

-- $3 billion for efficiency projects at schools.

-- $3.5 billion to expand current state energy efficiency programs.

-- $5 billion more for states that pass stricter building efficiency standards and restructure their utility conservation incentives.

-- $6 billion for local governments to make power plants and transportation networks more efficient.

-- $4 billion for things that include construction of a better electric grid, efficiency at military institutions, workforce training, additional smart meters, and an expansion of the weatherization program to better insulate homes.

The Alliance estimates its plan will directly create 190,000 jobs in short order. All told, the program might drop the country's energy consumption by half a percent each year for 20 years. While that doesn't sound like much, with the U.S. spending over $1 trillion on energy each year, the savings could top $5 billion a year, or over $100 billion.

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