Member Impacts

The U.S. economy has become more energy efficient per dollar of GDP in recent years. Nevertheless, overall energy use and associated output of greenhouse gases has continued to rise, as energy use per dollar of GDP continues to decline. By 2006, annual total carbon dioxide emissions for the U.S. had risen to six billion metric tons of gas, a 15 percent increase over 1990.⁶ According to the IPCC, the rate of greenhouse gas emissions needs to be reduced from current levels to avoid further warming and its associated effects.⁷

Energy Efficiency Means Avoiding Greenhouse Gases

CEE’s members are contributing to solving the problem of global climate change. In 2007, CEE member’s efficiency programs across the United States and Canada are estimated to have saved 68,520 GWh of electricity and 235 million therms of gas, and have avoided the production of more than 41 million metric tons of CO2,⁸ up from 36 million metric tons in 2006.

The carbon dioxide emissions avoided by CEE member’s efforts in 2007 is equivalent to the annual emissions from nearly nine coal-fired power plants⁹—which is more than two percent of all coal-fired power plants in the U.S. in 2005.¹⁰ The savings is also the equivalent of the greenhouse gas emissions from powering 3.7 million homes for a year and is more carbon dioxide than could have been sequestered by a billion tree seedlings grown for ten years.¹¹

Energy Efficiency Saves Customers Money

Based on the average retail value of electricity and gas in 2007, the electric and gas savings from CEE member’s programs saved ratepayers more than $6 billion USD in 2007.¹²

Energy Efficiency Generates Jobs

And the jobs created by energy efficiency are desirable ones. Jobs related to energy efficiency are largely skilled and pay well. They cannot be outsourced to labor in foreign countries.¹³

The Regulatory Assistance Project estimates that between 2000 and 2004, more than 1,000 new jobs each year were created in New England due to energy efficiency programs.¹⁴ The New York State Energy Research and Development Authority estimates that in New York alone, more than 500 new jobs were created each year due to its energy efficiency programs.¹⁵

In the Pacific Northwest, the Energy Trust of Oregon estimates that in 2002 alone, 203 new jobs were created in Oregon as a result of its programs.¹⁶ For all three examples, these are sustained, net jobs.

At the national level, about 14,000 direct jobs, and another 18,000 indirect jobs—a total of 32,000—were created in the U.S. just by utility-administered energy efficiency programs in 2006, according to the American Solar Energy Society.¹⁷

With budgets for energy efficiency increasing around the country, it is likely that annual job creation from energy efficiency programs is now even higher.

Energy efficiency generates money for local economies

For example, NYSERDA estimates that since 1999, its New York Energy $mart Program has resulted in an average net gain of $386 million in labor income per year, a net gain in total output of $669 million per year, and a net gain in value added of $324 million per year.¹⁸ The Energy Trust of Oregon estimates that its $19.5 million investment in energy efficiency in 2002 yielded increased output in Oregon’s economy of $23.9 million, and increased wages of $7.8 million.¹⁹

6 Energy Information Administration. 2008. Annual Energy Review 2007. Report DOE/EIA-0384 (2007). June. Washington, D.C.: U.S. Department of Energy.

7 IPCC. 2007. Climate Change 2007: Synthesis Report. Contribution of Working Groups I, II and III to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change [Core Writing Team, Pachauri, R.K and Reisinger, A. (eds.)]. IPCC, Geneva, Switzerland, 104 pp.

8 Electric calculations are based on national average emissions factor for electricity of 1.37 pounds CO2 per kilowatt-hour (Energy Information Administration. 2006. Electric Power Annual 2005. Report DOE/EIA-0348(2005). Table 5.1. November. Washington, D.C.: U.S. Department of Energy.). Gas calculations are based on carbon coefficient for natural gas of 117 pounds of CO2 per million BTU (U.S. EPA, Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2004, Annex 2, Table A-30, http://www.epa.gov/climatechange/emissions/usgginv_archive.html).

9 U.S. Environmental Protection Agency’s Greenhouse Gas Equivalencies Calculator (formerly U.S. Climate Technology Cooperation Gateway calculator, http://www.usctcgateway.net/tool). http://www.epa.gov/cleanenergy/energy-resources/calculator.html. Accessed September 15, 2008.

10 Based on average generator nameplate capacity for coal-fired power plants in the U.S. (Energy Information Administration. 2007. Electric Power Annual 2006. Report DOE/EIA-0348 (2006). November. Washington, D.C.: U.S. Department of Energy).

11 U.S. Environmental Protection Agency’s Greenhouse Gas Equivalencies Calculator (formerly U.S. Climate Technology Cooperation Gateway calculator, http://www.usctcgateway.net/tool). http://www.epa.gov/cleanenergy/energy-resources/calculator.html. Accessed September 15, 2008.

12 U.S. electric retail values were calculated based on the average rate per kWh or therm across the U.S. in 2006, using data from Energy Information Administration. 2007. Electric Power Annual 2006. Report DOE/EIA-0348 (2006). November. Washington, D.C.: U.S. Department of Energy. Average electric rates used: $0.104 per kWh (residential); $ 0.0781 per kWh (commercial/industrial). U.S. gas retail values were calculated based on the average rate per kWh or therm across the U.S. in 2007, using data from Energy Information Administration Natural Gas Navigator database, http://tonto.eia.doe.gov/dnav/ng/ng_pri_sum_dcu_nus_a.htm, accessed 9/12/08.. Average gas rates used: $1.336 per therm (residential); $ 0.965 per therm (commercial/industrial).

13 Bezdek, Roger. 2008. “Renewable Energy and Energy Efficiency: Economic and Job Drivers for the 21st Century.” Boulder, CO: American Solar Energy Society. Accessed August 21, 2008: http://www.ases.org/images/stories/ASES-JobsReport-Final.pdf.

14 The Regulatory Assistance Project. 2005. Electric Energy Efficiency and Renewable Energy in New England: An Assessment of Existing Policies and Prospects for the Future. May. Montpelier, VT: The Regulatory Assistance Project. Accessed August 21, 2008: http://www.raponline.org/pubs/rsws-eeandreinne.pdf.

15 NYSERDA. 2008. New York Energy $mart Program Evaluation and Status Report, Year Ending December 31, 2007. Report to the System Benefits Charge Advisory Group. March. Albany, NY: New York Energy Research and Development Authority. Accessed August 21, 2008: http://www.nyserda.org/pdfs/Combined%20Report.pdf.

16 ECONorthwest. 2003. “Economic Impact Analysis of Energy Trust of Oregon Program Activities: A Report for the Energy Trust of Oregon.” April. Portland, OR: Energy Trust of Oregon. Accessed August 21, 2008: http://www.cee1.org/eval/db_pdf/282.pdf.

17 Bezdek, Roger. 2008. “Renewable Energy and Energy Efficiency: Economic and Job Drivers for the 21st Century.” Boulder, CO: American Solar Energy Society. Accessed August 21, 2008: http://www.ases.org/images/stories/ASES-JobsReport-Final.pdf.

18 NYSERDA. 2008. New York Energy $mart Program Evaluation and Status Report, Year Ending December 31, 2007. Report to the System Benefits Charge Advisory Group. March. Albany, NY: New York Energy Research and Development Authority. Accessed August 21, 2008: http://www.nyserda.org/pdfs/Combined%20Report.pdf.

19 ECONorthwest. 2003. “Economic Impact Analysis of Energy Trust of Oregon Program Activities: A Report for the Energy Trust of Oregon.” April. Portland, OR: Energy Trust of Oregon. Accessed August 21, 2008: http://www.cee1.org/eval/db_pdf/282.pdf.