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Energy proposal lacks financial plan

Energy efficiency working group generates some ‘big ideas’ for 2009 Legislature, but costs aren’t considered

POSTED: 04:00 AM PDT Wednesday, August 20, 2008
BY LIBBY TUCKER

Oregon’s energy efficiency working group finalized its proposals for the 2009 Legislature last week, including an ambitious set of measures to increase energy savings in residential and commercial buildings over the next 20 years.

The group’s objective was to generate “big ideas” for advancing energy efficiency in Oregon’s built environment. In the coming weeks the group will pitch a list of 13 legislative concepts to Gov. Ted Kulongoski for inclusion in his 2009 climate change agenda. The final proposals will be vetted by the governor’s staff and the state global warming commission before making their way to the Legislature as a series of related bills, or as one large energy efficiency package.

“I think (the concepts) will be very well received by the governor and hopefully by the legislature going forward,” said David Van’t Hof, Kulongoski’s sustainability advisor.

The stakeholder group of 32 professionals from the energy and construction industries, nonprofits, state agencies and business associations has been meeting since April to craft the proposals.

The sweeping recommendations touch on nearly every aspect of the built environment, from building codes and regulations, to licensing requirements and project financing. A proposal for additional funding for weatherization and efficiency upgrades in low-income housing received nearly unanimous support from the group, along with a call for increased workforce training and public outreach and education.

The group was divided, however, on an overarching policy goal that would require all new buildings in the state to be carbon neutral by 2030. Gov. Kulongoski gave his early support for the idea in a June speech, but business associations and construction trades representatives voiced their concern for the proposal to the working group.

“To enact a state code that would make building efficiency a priority … isn’t appropriate,” said Scott Winkels, representing the League of Oregon Cities on the committee. “Local governments should decide on their own. State buildings might be the way to go” on the 2030 mandate.

The ultimate feasibility of the proposals and their reception by legislators is unclear. The final report won’t include a cost-benefit analysis and the governor’s staff hasn’t decided whether to conduct a full economic study on the final package, said Van’t Hof.

“We’re conspicuously absent deep economic expertise,” said Clark Brockman, a principal with SERA Architects and a co-chairman of the working group. “If we don’t solve the financing piece, all this good work could go to naught.”

The list of proposals includes two new funding mechanisms – the creation of local improvement districts and additional surcharges to utility bills – as well as expansions of existing programs such as the business energy tax credit and small-scale energy loan program.

A financing committee led by newly-elected state representative Jules Kopel-Bailey, an economist with consulting firm EcoNorthwest, will meet in coming months to hone the funding mechanisms that support the working group’s recommendations.

“This is the final plunge to the wall,” said Bill Edmonds, director of environmental policy at Northwest Natural and a co-chairman of the working group. “You know, like the backstrokers do when they don’t really know where the wall is. That’s where we are today.”


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Nov. 20: The Evolution and Development of Office and Industrial Condominiums

The National Association of Industrial and Office Properties will hold The Evolution and Development of Office and Industrial Condominiums from 4:30 to 6 p.m. at Echo Restaurant.

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Dec. 9: Oregon Mortgage Lenders Association dinner

The Oregon Mortgage Lenders Association will hold its annual dinner at 5 p.m. at the Multnomah Athletic Club.

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