Energy Efficiency
Energy Efficiency for Businesses and Non-Profits
Background
Energy efficiency is the first step toward lowering utility costs, decreasing demand on the grid, and securing Alaska’s energy future. Alaska has made strong strides in recent years in energy efficiency by rapidly expanding state programs for residential and public buildings. However, a gap remains as there is currently minimal state support for small businesses and non-profits.
State support for energy efficiency is paying off for residential and public buildings. Over 17,000 homes were retrofitted since April 2008, following a significant increase in energy efficiency funding. Alaska Housing Finance Corporation calculates an average savings of $1,500 a year per household. In the public sector, Alaska Energy Authority estimates that grants for public building retrofits is currently saving $3 million a year.
Recently, Alaska Energy Authority began its Commercial Energy Audit Program. Businesses and non-profits will be awarded grants to complete energy audits, which identify what energy efficiency projects make the most fiscal sense. AEA is accepting applications through February 15th. The program appears to be popular as many businesses and non-profits, including churches, have already applied for energy audit funds.
Recommendations
The legislature should close the gap in state supported energy efficiency projects for businesses, non-profits and churches.
Energy Audit funding: Businesses, non-profits, and churches are more likely to complete energy efficiency projects with information provided by energy audits. The state currently has the expertise and can provide the financial support to complete energy audits.
Project funding: Many businesses, non-profits, and churches could use support funding energy efficiency projects. SB 220 created a revolving loan fund that would provide loans to businesses and non-profits at premium rates to complete energy efficiency projects. Capitalizing the fund would solve the funding problem. SB 32, sponsored by Sens. McGuire and Wielechowski, would appropriate $10 million into the fund.
Bottom line: The state needs to support energy efficiency for businesses, non-profits, and churches.
Contact: Dave Theriault, Alaska Conservation Alliance, 723-9944 (cell)
