Posts Tagged ‘Economy’

Supreme Court delivers blow to EPA’s mercury rule

Monday, June 29th, 2015 - posted by brian
Photo: ©hicagoenergy, Creative Commons/Flickr

Photo: Creative Commons/Flickr

In a major decision today, the U.S. Supreme Court ruled the Environmental Protection Agency did not properly consider costs when it created a rule to limit mercury emissions from power plants.

Finalized in 2012, the Mercury and Air Toxics Standard is one of the Obama administration’s most significant efforts to combat harmful air pollution and protect public health. Mercury is a neurotoxin that can bypass the body’s placental and blood-brain barriers, threatening cognitive development and the nervous system.

The rule, which also targets pollutants such as arsenic, chromium and hydrochloric acid gas is expected to prevent 11,000 premature deaths, 4,700 heart attacks and 130,000 asthma attacks each year.

While difficult to quantify, the rule’s the health benefits would well exceed the estimated $9.6 billion cost in annual compliance costs. In fact, a formal analysis found the quantifiable benefits of the rule could reach $80 billion each year — as much as $9 for every dollar spent.

Still, industry groups and several states argue the EPA did not adequately consider costs when determining whether regulating mercury under the Clean Air Act is “appropriate and necessary.”

Last year, the U.S. Court of Appeals for the District of Columbia Circuit sided with the EPA, leading the challengers to ask the Supreme Court to hear the case. Today’s 5-4 ruling remands the case back to the D.C. Circuit Court, which could order the EPA to reconsider the costs of compliance or to craft a new plan to regulate mercury altogether.

A statement from Appalachian Voices Campaign Director Kate Rooth:

Today’s Supreme Court ruling is a disappointing setback; for far too long the costs of unregulated pollution to human health and the environment have not been adequately weighed in determining our energy future. The Mercury and Air Toxics Standard is a critical component of the Obama administration’s effort to curb pollution from power plants. Already this rule has resulted in many of the oldest and dirtiest coal plants being retired or updated and it is critical that these safeguards remain in place in order to protect communities and future generations from mercury and other toxic air pollution.

The Supreme Court decision still provides a clear path forward for the EPA to limit dangerous mercury and other toxic pollutants in our air. We are confident that the agency will be able to respond to the court’s ruling by demonstrating that the health costs of continued power plant pollution greatly outweigh the costs of the rule itself.

Appalachian legislators give POWER+ the cold shoulder

Friday, June 26th, 2015 - posted by Adam
Tell your Senators to support a positive future for Appalachian communities.

TAKE ACTION: Tell your Senators to support a positive future for Appalachian communities.

Virginia’s coal-bearing counties would directly benefit from the adoption of the POWER+ plan, a proposal in the Obama administration’s 2016 budget that would direct more than a billion dollars to Central Appalachia.

But the U.S. House budget cuts Virginia entirely out of the forward-thinking Abandoned Mined Lands funding reforms that were spelled out in the POWER+ Plan. That component of the plan would send $30 million directly to the Virginia coalfields for economic development and put laid-off miners back to work cleaning up the messes left by coal companies.

Last week, the U.S. Senate appropriations committee passed a budget bill the leaves out any mention of POWER+.

Please contact your senators now to make sure they support a budget that includes a path forward for Appalachian communities.

For more background, we recommend this piece by Naveena Sadasivam for InsideClimate News, which details the curious quiet around POWER+ and how the plan has been pulled into the partisan bickering that’s embroiled the U.S. Environmental Protection Agency’s Clean Power Plan and the 2016 budget process as a whole.

Under the federal Abandoned Mine Lands program, sites that pose a threat to safety are prioritized over sites that offer a potential economic benefit if cleaned up. While this program has reduced potential hazards in the coal-mining regions of Appalachia and the U.S., it has done little to positively impact local economies.

The POWER+ Plan, however, calls for funds to be used for projects that not only improve the environment and reduce hazards, but also create an economic benefit for local economies.

There’s still time for both House and Senate to include the meaningful funding proposals outlined in POWER+. But in order for that to happen we need to make sure that Virginia’s U.S. Senators, Tim Kaine and Mark Warner, hear the clear message from you to make sure Appalachia gets this much needed funding!

Please contact your senators now to make sure they support a budget that includes a path forward for Appalachian communities.

Appalachian Regional Commission receives citizen input

Thursday, June 18th, 2015 - posted by interns

By Michael Shrader

The geographic area covered by the Appalachian Regional Commission.

The geographic area covered by the Appalachian Regional Commission.

On June 4, the Appalachian Regional Commission (ARC) held one of its five 2016-2020 Strategic Plan Listening Sessions in Morehead, Ky., to gather ideas from Appalachian citizens that will inform the commission’s plan for improving economic opportunities in communities across the region.

The Morehead Conference Center was full of forward-thinking minds from Kentucky and surrounding states who explained opportunities and barriers they see in their own communities. Many common themes emerged related to tourism, and adventure tourism in particular. Some attendants cited the need to cultivate and support family farms to create a local and sustainable Appalachian food system. Others spotlighted the opportunity for renewable energy generation in their communities.

The Obama administration’s POWER+ plan was mentioned several times as an opportunity that must be capitalized on. POWER+ invests in Appalachian workers and jobs through unique programs, many of which bear semblance to those discussed in Morehead. Appalachian Voices’ economic diversification campaign is currently building support for this proposal in Southwest Virginia.

Some attendees had a difficult time differentiating between opportunities and barriers to progress in their communities. Where some saw a vast, employable and idle workforce, others saw a lack of educational opportunities and substance abuse posing serious barriers to workforce development. Concrete barriers to development include a lack of local infrastructure such as highways, water systems and, especially, broadband Internet connectivity.

The massive amount of land owned by absentee corporations and extractive industries presents a unique challenge to regional development throughout most of central Appalachia and was mentioned several times throughout the session. Many residents cited less concrete barriers to progress such as a lack of hope and progressive leadership, and the enduring negative stereotypes associated with the region. Finally, there were many who stressed the need for the restoration of the landscape after mining and the resources to create jobs to do so.

Attendees outlined what they saw as ARC’s role in taking advantage of the opportunities and breaking down the barriers for development in their communities. The resounding consensus was a need to access capital and workforce development resources. In addition, attendees felt that ARC needed to work harder to make sure that groups in Appalachia could gain easier access to resources outside of ARC. Some felt that we needed to find ways to craft new language to talk about our problems and solutions. Others cited the need to address to vast health and wellness issues in the region.

Ultimately, many agreed that ARC, as a federal-state partnership, needs to broker change in Washington, D.C., on behalf of Appalachia. One attendee remarked that ARC must facilitate the conversation to look beyond Appalachia to other struggling regions across the nation to solve systemic problems and implement a new ‘true cost’ economic model.

The listening session brought a wide range of individuals and regional stakeholders together to share their unique perspectives. But some still felt that a representative range of people had not been able to participate. In fact, with the all-day session held on a Wednesday, many in attendance argued that it was impossible for the majority of working people to provide input, and stressed need for better stakeholder involvement and opportunities for public involvement.

Another challenge facing coal: Cleaning up

Tuesday, June 9th, 2015 - posted by brian
As even some of the largest U.S. coal producers run the risk of caving under their debts, officials that oversee the federal surface mine bonding program are voicing urgent concerns about post-mine reclamation liabilities to state officials.

As even some of the largest U.S. coal producers run the risk of caving under their debts, officials that oversee the federal surface mine bonding program are voicing urgent concerns about companies’ ability to pay for post-mine reclamation.

After bankruptcies, legal fees, fines, plummeting share prices and years without a profit in sight, another aspect of the financial perils U.S. coal companies face is coming into full view.

Recently, regulators worried about the ability of coal companies to pay for post-mine reclamation have begun scrutinizing a practice known as “self-bonding,” which allows a company to insure the cost of restoring the land after mining without putting up collateral, provided it meets certain financial criteria.

Reuters reported last week that Peabody Energy, the world’s largest private-sector coal company, is under the microscope and may be violating federal bonding regulations under the 1977 Surface Mine Control and Reclamation Act.

Peabody, which reported a $787 million loss in 2014, had roughly $1.38 billion in clean-up liabilities insured by self-bonding at the end of March, according to the report. In fact, as its finances deteriorate, analysts say Peabody is warping the language of the law and pointing to the relative strength of its subsidiaries’ balance sheets to continue meeting self-bonding requirements.

Peabody is not alone. Arch Coal, which Reuters found has also failed the financial test to meet self-bonding requirements, is restructuring its multibillion-dollar debt. The company ended 2014 with $418 million in cleanup liabilities and hasn’t turned a profit since 2011.

On May 29, Alpha Natural Resources received word from the Wyoming Department of Environmental Quality that it is no longer eligible to self-bond in the state. The company now has less than 90 days to put up $411 million in anticipated mine cleanup costs. The nation’s second-largest producer by sales, Alpha told investors earlier this year that it had $640.5 million in reclamation liabilities at its mines in Appalachia and Wyoming’s Powder River Basin.

Watching as even some of the largest U.S. coal producers run the risk of caving under their debts, officials that oversee the federal bonding program are voicing urgent concerns to state officials.

In April, the U.S. Office of Surface Mining Reclamation and Enforcement sent a letter to West Virginia Department of Environmental Protection urging that the state conduct a fuller analysis of future risks — not just rely on historic data — to calculate reclamation costs.

“Given the precarious financial situation” of companies operating in West Virginia, the letter states, regulators should closely examine the risk of failure for sites with markedly more expensive liabilities such as pollution treatment facilities.

From where we’re standing, it’s tough to see how the situation could improve. Taken together, the country’s four largest coal companies — Peabody, Alpha, Arch Coal and Cloud Peak Energy — have about $2.7 billion in anticipated reclamation costs covered by self bonding. Bloomberg News reported in March that nearly three quarters of Central Appalachian coal is mined at a loss.

As the problem grows, regulators and advocates for reform face their own predicament. Stricter self-bonding standards and enforcement push cash-strapped companies closer to bankruptcy. But inaction could leave taxpayers to pick up the bill if companies with unreclaimed mines eventually crumble.

Learn how mountaintop removal puts Appalachian communities at risk. Read the latest issue of
The Appalachian Voice.

The economic impact of energy efficiency

Wednesday, April 29th, 2015 - posted by Amy Kelly

Making the case for utility on-bill financing in the High Country

Several High Country businesses would see their customer base grow dramatically if an on-bill energy efficiency financing program was adopted by Blue Ridge Electric.

Several High Country businesses would see their customer bases grow dramatically if an on-bill energy efficiency financing program was adopted by Blue Ridge Electric.

While not as exciting as solar panels glimmering in the sunlight, energy efficiency retrofits can be just as important in reducing energy consumption, lowering utility bills, and making an economic impact. One such program that makes energy efficiency retrofits accessible on a large scale is utility on-bill financing.

On-bill financing programs are a way for utilities to offer energy efficiency upgrades with no up-front cost to customers. After receiving the upgrades, customers see immediate savings. A portion of the savings goes back to the utility to pay for the upgrades through residents’ monthly bills (hence the name on-bill). When the improvements are paid for, residents pocket all their utility savings, which could be up to a 40 percent reduction in their bill. In turn, residents are able to use what they would otherwise be spending on electric bills to further stimulate the local economy.

Energy efficiency upgrades covered by most on-bill financing programs include air sealing, insulation, duct sealing, and heat pump repair or replacement, depending on what needed improvements are identified through energy audits. General contractors have specialized in energy efficiency certifications in order to do this work. Because this work is more labor intensive, every dollar that is redirected from the energy sector and spent in the home improvement industry has a more prominent impact on the local economy and jobs.

According to The American Council for an Energy Efficient Economy, a dollar spent in the local economy has more than double the positive effect on domestic employment and wages of spending a dollar on utility bills. John Kidda is the founder of reNew Home, Inc., a Boone-based home energy improvement company. “An additional $300,000 annual revenue stream would be a game changer for my business,” he says. “It would mean at least two new employees.”

The ideal on-bill financing program is accessible to everyone because it is tied to the meter, meaning once the renter or homeowner moves, the on-bill financing charge will not follow them but will instead be paid by the next occupant or owner who will also see savings. The program that works best also operates without a credit check, with eligibility instead being based on utility payment history, thereby removing traditional barriers of getting a loan.

Appalachian Voices is working in the High Country to promote and help develop programs that will benefit residents who are suffering from poorly constructed or aging homes. Blue Ridge Electric Membership Corporation (BRE) provides electricity to most of the High Country. The rural electric cooperative serves approximately 66,500 residential customers.

A report produced by Appalachian Voices in early 2014 found that a larger portion of BRE members’ income goes to utility bills than the national average. If Blue Ridge Electric offered on-bill financing, and, if just 1 percent of its residential customers took a $7,500 loan:

• $5 million could be spent on energy efficiency projects in a 5-year period
• 70 total jobs could be created from that investment
• $600 a year could be the amount the average household saves (the customer would pocket $120 a year until the improvements are paid in full.)
• Another 80 jobs could be created from the reinvestment of this saved money in local goods and services

Several businesses already focus on weatherization and energy efficiency improvements in the High Country, and could see their businesses grow if an on-bill finance program were in place. “If there were financing available, I would be hiring local contractors to improve the homes in our local area,” says Sam Zimmerman, President of Sunny Day Homes. “It means local jobs and reduced reliance on fossil fuels while improving home value and comfort.”

With an average 23 percent poverty rate in Blue Ridge Electric’s service area, this program would help raise the market accessibility for companies such as Sunny Day Homes and reduce the cost of living for families some of whom are barely making it. “The economic benefits are dramatic for the people who get the jobs and the people who get the work done,” Zimmerman says.

Energy efficiency and on-bill financing programs would have a significant and positive impact on all of the area’s weatherization businesses says Will Hadaway, founder of HomEfficient. “My usual crew consists of myself and two others,” Hadaway remarks. “This would equate to 2/3 to 3/4 of a years worth of work for us, and that is very significant to say the least.”

Kent Walker of Blue Ridge Energy Works agrees that the program could have a significant impact and provide a steady stream of work for his business. “BRE could really stimulate the economy with this program!” says Walker.

You can help bring energy efficiency programs like on-bill financing to the High Country. If you’re a member of BRE, sign a letter to support on-bill financing today! If BRE is not your electric provider, visit Appalachian Voices’ Energy Savings Action Center to ask your utility to support energy efficiency initiatives.

The job estimates were calculated using state and region-wide values reported from a 2013 Southeast Energy Efficiency Alliance report. Loan investment and average annual household savings were calculated by Appalachian Voices.

“Clean coal” is on the fritz

Wednesday, February 18th, 2015 - posted by brian

By Brian Sewell

Cost overruns and construction delays are dampening enthusiasm for carbon capture and storage technologies

A rendering of FutureGen 2.0. Earlier this month, the U.S. Department of Energy pulled its funding from the project, which was intended to demonstrate the feasibility of carbon capture and storage technology on a commercial-scale. Credit Department of Energy.

A rendering of FutureGen 2.0. Earlier this month, the U.S. Department of Energy pulled its funding from the project, which was intended to demonstrate the feasibility of carbon capture and storage technology on a commercial-scale. Credit Department of Energy.

As one of the most high-profile and hyped-up projects of its kind, the FutureGen “clean coal” plant in Illinois was supposed make history. Its backers saw in it the key to unlocking an inherently dirty energy source’s promise in a world coming to grips with climate change.

So the announcement earlier this month that the U.S. Department of Energy is backing out of its $1.1 billion funding commitment to the FutureGen project, citing a desire to “protect taxpayer interests,” sent a shockwave through the coal sector and investors, energy analysts and environmentalists all took note.

But the news that “clean coal” technology has taken yet another hit should not come as a surprise. Even with $6 billion in commitments under the Obama administration, carbon capture projects just don’t have the track record needed to pique private investors’ interest.

Every form of carbon capture technology comes with technical and technological drawbacks that translate to enormous costs. A commercial-scale “clean coal” plant using even the most advanced technologies may increase the cost of electricity by up to 80 percent, according to DOE. These challenges make commercial-scale carbon capture projects outcasts when it comes to competitive energy markets, where traditional fossil fuel plants and, increasingly, large-scale and distributed renewable projects represent the most cost-effective power sources.

Convinced that coal will remain one of the nation’s foremost energy sources for decades to come, DOE will put billions more into advancing “clean coal” technology, attempting to overcome its economic pitfalls and keep burning the dirtiest fuel around.

FutureGen’s Downfall

FutureGen 2.0 planned to transport CO2 waste approximately 30 miles  through pipelines before being injected in deep saline formations.

FutureGen 2.0 planned to transport CO2 waste approximately 30 miles through pipelines before being injected in deep saline formations. Click to enlarge.

The idea for FutureGen arose in 2003 under the Bush administration. The plan was for the FutureGen Industrial Alliance, a coalition of mining and energy companies including Alpha Natural Resources and Peabody Energy, to oversee retrofits to an existing coal plant and, in the process, prove the feasibility of burning coal, then capturing and storing the carbon emitted underground.

But the project soon began suffering from the delays, cost overruns and other challenges that will be its legacy. FutureGen was canceled, for the first time, in 2008 before construction could begin.

In 2010, the Obama administration used stimulus money to give FutureGen new life as FutureGen 2.0, a smaller proposed plant that would use a different technology to capture its emissions, but still show how carbon capture could make a more climate-friendly coal plant. For a time, everything seemed to be going in FutureGen’s favor. But then familiar cracks started to appear.

The Illinois Commerce Commission approved a controversial plan in 2012 to require utilities, and therefore their customers, to buy all the electricity generated by the FutureGen plant for 20 years — likely at dramatically over-market rates. The decision may have reassured some private investors, but challenges to the decision by the utilities themselves were headed to the Illinois Supreme Court.

The Sierra Club challenged the air pollution permit granted to FutureGen by the Illinois Pollution Control Board, saying the State of Illinois should hold FutureGen to its promise to build a “near-zero emissions” plant. FutureGen needed to convert a World War II-era boiler at the plant to one compatible with the oxy-combustion technology it planned use to capture its emissions. The Sierra Club argued that allowing FutureGen to convert the boiler would violate the federal Clean Air Act unless it obtained the appropriate permit from the U.S. Environmental Protection Agency.

All of this is to say that the DOE isn’t entirely, or even mostly, responsible for FutureGen’s failure. Unresolved legal battles, environmental and economic concerns all combined to hurt the chances of attracting enough private investment to bring the $1.65 billion project online. It became clear that the project could not be completed by September 2015, the deadline for federal funds to be spent under the 2009 stimulus, so DOE pulled the plug.

According to DOE, approximately $116.5 million of the total award had been invested in the plant since 2010.

The Sierra Club, which has called FutureGen a boondoggle from the very beginning, said the news reflects a national trend toward embracing clean energy.

“This project has gone through a decade of false starts and with today’s announcement, $1 billion in federal funding and hundreds of thousands of dollars in Illinois ratepayer financing can be freed up for investment in clean energy,” Holly Bender, Deputy Director of the Sierra Club Beyond Coal campaign, said in a statement.

Coal industry groups directed their frustrations toward the Obama administration and mostly overlooked the host of other challenges facing FutureGen.

Hal Quinn, president of the National Mining Association, said in a statement that DOE’s decision to end funding for FutureGen “cannot be reconciled with the [Obama] administration’s proposal to require CCS as the only acceptable technology for any new coal-fueled power plant in the U.S.”

Proceed with Caution

A "first-of-its-kind" technologically speaking and the most expensive coal plant of all time, Mississippi Power's Kemper Plant has put ratepayers at risk in search of unproven and far-off returns. Photo from Wikipedia.

A “first-of-its-kind” technologically speaking and the most expensive coal plant of all time, Mississippi Power’s Kemper Plant has put ratepayers at risk in pursuit of unproven and far-off returns. Photo from Wikipedia.

Carbon capture is a must if future U.S. coal plants — if there is such a thing — hope to meet regulations on greenhouse gases being developed under the Clean Air Act.

Analysts say the only way to create a market for carbon capture technology, at least one that would attract significant private capital, is by capping power plant pollution. But groups like the National Mining Association lambast the president and the U.S Environmental Protection Agency for pursuing policies that will limit carbon pollution from power plants and steer investments toward alternative forms of energy, including “clean coal.”

Even with a strong climate policy, some experts doubt commercial-scale “clean coal” projects will be around in time to make a meaningful contribution to reducing carbon pollution. Sean Casten, the president and CEO of Recycled Energy Development, recently drew the comparison between the likelihood of the technology’s success and the existence of unicorns.

“I suppose it’s possible that there will suddenly be a huge pot of capital willing to invest billions of dollars in an unproven technology with long construction times and regulatory-dependent cash flows,” Casten told SNL Energy. “But unicorns are more likely.”

Another notable casualty is Tenaska’s $3.5-billion Taylorsville, Ill., plant, which the Nebraska-based energy developer canceled in 2013. The company cited market conditions that led it to focus on developing natural gas and renewable energy facilities instead. But the fact that Illinois lawmakers would not agree to a 30-year contract to buy electricity from the plant, and pass those high costs on to ratepayers, had something to do with it.

With the Taylorsville plant and FutureGen off the table, the U.S. is left with one utility-scale carbon capture project currently under construction. But Mississippi Power’s Kemper Plant, which received a $270 million grant from DOE, is like the projects before it: more of a cautionary tale than a positive sign for coal’s future.

Cost increases have been like clockwork at Kemper. Initially estimated to cost $2.2 billion, the price to build the plant has ballooned to $6.17 billion since 2009, making it the most expensive coal plant in U.S. history. Southern Company, the parent company of Mississippi Power, announced a $45 million increase this month.

$6 billion and counting: Cost increases at the Kemper Plant have been like clockwork since 2009.

$6 billion and counting: Cost increases at the Kemper Plant have been like clockwork since 2009. Graphic by the Institute for Energy Economics and Financial Analysis.

To help pay the bill, the Mississippi Public Utilities Commission approved an 18 percent rate hike on Mississippi Power in March 2013, and the company says it’s likely to seek another increase of at least 4 percent to help pay off $1 billion in bonds that the state legislature is allowing it to issue.

“This is the largest rate increase in the state of Mississippi’s history, and this is the largest transfer of wealth from the people to a corporation in the state of Mississippi’s history,” Public Service Commissioner Brandon Presley told Mississippi Watchdog in 2013.

Presley was the only dissenting vote when the commission approved the rate increase. But now the state’s highest court is on his side. Last week, the Mississippi Supreme Court reversed the rate increase after finding the utilities commission hadn’t ruled on the “prudency” of the Kemper Plant’s growing cost. The court directed Mississippi Power to refund ratepayers about $271 million attributed to the rate increase.

The Kemper plant is slated to open in mid-2016, more than two years behind schedule.

The quest to create a cleaner future for coal increasingly rests on the question of how much we’re willing pay for it.

The Kentucky Creative Industry Report

Tuesday, February 17th, 2015 - posted by Dac Collins

By Dac Collins

Arts advocates were thrilled when the Kentucky Arts Council released the Kentucky Creative Industry Report this winter, the first report of its kind to fully acknowledge the contribution of the creative industry to the state’s economy.

The creative industry accounts for $1.9 billion in annual state revenue and approximately 2.5 percent of all employment in the state, providing about 60,000 jobs. That is roughly equivalent to the amount of jobs created by the information technology and communications industry and it is significantly more than the estimated 12,000 workers directly employed by Kentucky’s coal mining industry.

This 2.5 percent includes traditional artists, such as painters, musicians and writers, as well as non-traditional artists, such as web designers, advertisers and architects.

Bob Stewart, secretary of the state Tourism, Arts & Heritage Cabinet, says the report finally gives supporters of the arts “the data we need to prove the arts’ significance economically.”

Obama budget creates opportunities for Appalachian communities

Tuesday, February 3rd, 2015 - posted by brian
The Obama administration's budget includes several proposals that would create economic opportunities in central Appalachian communities struggling to weather coal's decline.

The Obama administration’s budget includes several proposals that would create economic opportunities in central Appalachian communities struggling to weather coal’s decline.

Central Appalachian communities weathering coal’s long decline would see a boost in funding under the White House budget released on Monday.

The Obama administration’s 2016 budget calls for hundreds of millions of dollars in federal funds to be spent cleaning up abandoned strip mines, and to support economic development and workforce training in mining communities facing massive layoffs as coal is increasingly outcompeted in America’s energy mix. More than 13,000 coal jobs have been lost in central Appalachia since 2011.

One of the most significant proposals included in the budget is for an additional $200 million per year over the next five years for the federal Abandoned Mine Lands program to restore dangerous unreclaimed mines. According to the U.S. Office of Surface Mining Reclamation and Enforcement, which administers the program, additional funds would assist communities most severely impacted by coal “in a manner that facilitates economic revitalization on reclaimed lands and restored waterways.”

The program is funded through a combination of a per-ton tax on coal production and discretionary spending, but has consistently fallen short of its goals. More than $3 billion worth of high-priority sites remain unreclaimed — most of which are in central Appalachia. The Kentucky Division of Abandoned Mine Lands, for instance, lists $445 million worth of unfunded projects. Groups working in the region have called on the administration to reimagine the way funds are distributed through the program by coupling workforce development and environmental restoration.

Other funding increases called for in the president’s budget include $20 million for the Labor Department’s Dislocated Workers program to provide employment services and job training specifically for laid-off coal miners and power plant employees to help them transition to jobs in other fields. The Appalachian Regional Commission would see its $70 million budget grow by roughly one-third, with $25 million in new funding directed to communities “most impacted by coal economic transition” to support a range of economic development initiatives.

The need for job creation and economic diversification in Appalachia could not be clearer. As Congress debates the president’s budget and puts forward its own proposals in the coming months, we hope they will carefully consider ways to build a truly sustainable economy in the region.

A statement from Appalachian Voices Legislative Associate Thom Kay:

There’s a great deal the president must do to help build a robust clean energy economy and ensure that disproportionately impacted areas like Appalachia are not left behind. The Obama administration’s proposed budget shows that the White House understands the need for economic diversification in Appalachia. It shows that the calls of Appalachian communities for new opportunities have been heard.

Proposals are not actions, however, and the proposed budget may never become law. The good news is that not every action to diversify the Appalachian economy requires changes to the federal budget. We will continue to use every tool available to urge the White House to commit to turning the proposals in this budget into realities, regardless of the actions of Congress.

Our Energy Savings campaign is heating up in the High Country

Thursday, January 29th, 2015 - posted by rory

Home Energy Contest Demonstrates Strong Need for Energy Efficiency Finance Options

homeenergymakeover_main

When Appalachian Voices asked Blue Ridge Electric Membership Corp. (BRE) to help alleviate poverty and support economic development in the North Carolina High Country by developing an on-bill energy efficiency finance program, BRE said, surprisingly, that they weren’t sure that was something that enough members would sign up for.

They offered this response despite the fact that, at the time, we had presented them with seventy letters from BRE members requesting an on-bill finance option (in addition to more than 100 signatures on a petition requesting the same thing).

We decided we would go one step further in demonstrating that demand, so back in October we launched our High Country Home Energy Makeover Contest. Through the contest we solicited enough in donations and sponsorships to be able to pay for upgrading the homes of three BRE members, and we are now able to provide a voice to and tell the stories of members who need help paying for home efficiency upgrades.

The contest turned out to be a huge success, and we announced the three contest winners last Thursday. The home improvements for the three winners will be tailored to their needs based on comprehensive energy audits that were completed over the last week. The work will primarily include insulation and weatherization — two common problems that lead to high energy bills, especially during the winter months — and will be performed by one or more of the five local businesses that sponsored or supported the contest. Those businesses include Blue Ridge Energy Works, LLC, High Country Energy Solutions, Inc., HomEfficient, reNew Home, Inc. and Sunny Day Homes, Inc.

Once the improvements have been performed, in partnership with ResiSpeak, we will monitor and report on the savings generated for each of the winners, thereby demonstrating the impact that even basic efficiency improvements can have in terms of reducing energy bills and improving the quality of life for High Country residents.

Overall, nearly 70 BRE members entered the contest. Key information about household income, energy use and expenses, and basic information about the applicants’ homes was provided. Based on the submitted information, we found that the average applicant spent more than 8 percent of his or her annual income on energy bills over the last year — nearly three times the national average of 2.7 percent. More than a quarter of applicants spent 15 percent or more of their income on energy bills. Such costs are especially burdensome given the average poverty rate of 23 percent in the BRE region.

Now to present the winners! We are so honored to know these folks, and we are even happier to be able to help improve their homes and reduce their energy bills. None of the winners or the other applicants are necessarily impoverished. They are hard-working individuals like Zack Dixon that are having a hard time finding a job. They are parents like Sean Dunlap who lives with his two young children in his dream home, but a home that lacks sufficient insulation or air sealing. And they are a retired couple living on a fixed income, like Vance Woodie and his wife. None of these folks have access to sufficient funds to make the comprehensive energy efficiency improvements needed in their homes. And, beyond the contest, each of our winners could still benefit substantially from an on-bill energy efficiency finance program through BRE, as could thousands of other BRE members that still need help.

Grand Prize Winner: Zack Dixon

Zachary Dixon, left, pictured with Appalachian Voices Energy Policy Director Rory McIlmoil.

Zachary Dixon, left, pictured with Appalachian Voices Energy Policy Director Rory McIlmoil.

Zack, a resident of Boone, N.C., heats his house with space heaters, and chronically struggles to pay his electricity bills. Over the last year, Zack spent 11 percent of his income on electricity bills. His power has been cut off by BRE twice this winter when he overdrew his pre-paid account, after which BRE assisted Mr. Dixon with a bill payment from its Operation Round Up program.

While such financial assistance helps many residents keep their homes heated in the winter, it fails to resolve the underlying problems of older or poorly built, drafty houses. For Zack, running the space heaters throughout the day is costly, and doesn’t sufficiently warm his house because of poor insulation in the attic and floors.

“I just don’t want to be freezing anymore,” he said. “There’s been times when I don’t want to get out of bed and be in the cold. It’s been a real big pain, but if I could at least quit stressing about the bills, I’d be happy.” He added, “the most important thing, that I never realized, is how much heat I’ve been losing.”

Zack’s prize will cover insulation for the floors and attic, as well as air sealing throughout the house to lock in heat and reduce his electricity use.

Runner-up: Vance Woodie

Thelma and Vance Woodie with Chuck Perry, program director for North Carolina Energy Efficiency Alliance.

Thelma and Vance Woodie with Chuck Perry, program director for North Carolina Energy Efficiency Alliance.

Vance and his wife Thelma have worked hard to modernize their turn-of-the-century home in Sugar Grove, N.C. Once heated by a coal stoker furnace, their house is now heated by an oil furnace, but the old ducts have not been replaced and so they draw cold air from the basement, which also causes problems with air quality in their home.

“I guess that’s why the dust still comes thick in the house,” Vance said. The elderly couple shuts off part of their house in the winter to reduce heating costs, but they still spend 16 percent of their income on energy bills. Responding to winning the contest, Vance said: “We needed something, some kind of help, so we took a chance.”

Runner-up: Sean Dunlap

Sean Dunlap of Sugar Grove, N.C.

Sean Dunlap of Sugar Grove, N.C.

Sean lives with his wife and two children in a 1938 farm house built by his wife’s great-grandfather, making their children the fifth generation to live there. Despite making what energy efficiency improvements they could, there is still a lot to do. Their prize money will cover adding insulation and weatherization the lack of which places their plumbing at risk and results in a cold home in the winter. “We are so excited to find out that we won,” said Mr. Dunlap. “Now our work with Appalachian Voices will continue as we upgrade our house. Their professionalism and expertise has already made a huge difference and now we are able to look forward to making our home more efficient, comfortable and livable for our family.”

The contest was sponsored by the local businesses listed above as well as the Blumenthal Foundation and LifeStore Insurance. The North Carolina Energy Efficiency Alliance provided home walk-through assessments and energy audits. Appalachian Voices extends our deepest gratitude to each of the businesses and organizations for their support.

If you are a BRE member and would like to show your support for BRE developing an on-bill energy efficiency finance program that could help folks like Zack, Vance and Sean, or are in need of such support yourself, join the Energy Savings for the High Country campaign and sign the petition!

Energy efficiency at the forefront of cooperative principles in Tennessee

Wednesday, September 17th, 2014 - posted by rory
Frank Rapley, General Manager of TVA's Energy Efficiency Programs, presents on the new EE programs that TVA will be offering in 2015. Photo credit: Tennessee Electric Cooperative Association.

Frank Rapley, General Manager of TVA’s Energy Efficiency Programs, presents on the new EE programs that TVA will be offering in 2015. Photo credit: Tennessee Electric Cooperative Association.

Rural electric cooperatives, which serve millions of families across Appalachia, operate on seven principles, the most important of which (at least to us) is principle number seven: “Concern for Community.”

The seventh principle commits electric co-ops to “the sustainable development of their communities through policies accepted by their members.” As we described in a blog series on the need for and benefits on “on-bill” financing programs supporting home energy improvements in Appalachia, the sustainable development of the Appalachian region relies on the ability of residents to invest in their communities. But first and foremost, they must be able to afford their electric bills. The clear first step to achieving this vision is expanding energy efficiency, and this is something that Tennessee’s electric cooperatives have taken to heart.

On September 5, thanks to a generous grant from the National Governor’s Association (NGA), the Tennessee Electric Cooperative Association (TECA), in partnership with the Tennessee Department of Environment and Conservation (TDEC), sponsored a statewide energy efficiency “retreat.” The goal of the day-long policy retreat was to hash through the details of what will hopefully become a statewide program to finance home energy efficiency improvements, especially for low-income residents. Such programs have proven to reduce home energy costs substantially, and are primarily intended to help families that can’t afford to pay for the upfront cost of needed improvements. Below is a testimonial from one family that participated in South Carolina’s pilot on-bill financing program known as “Help My House.”

The retreat featured a number of experts in energy efficiency finance and program design as well as co-op and government administration, including numerous representatives from federal organizations and government agencies, Tennessee state government agencies and various experts and clean energy advocates such as Appalachian Voices and a handful of our partner organizations.

Most importantly, the retreat was attended by six of Tennessee’s rural electric cooperatives. Included among them was Appalachian Electric, which has proven to be a statewide leader in expanding energy efficiency opportunities not only for their own members, but for all of Tennessee’s rural co-op members. Unfortunately, of the six co-ops that participated in the retreat only two co-ops were from the Appalachian region, although we were told by TECA that a handful of others couldn’t attend but were interested in participating in the process. We hope that more co-ops with service territories in East Tennessee will sign on to the process, because as the energy cost maps we generated earlier this year show, members of Appalachian co-ops are most in need of support for reducing their electric bills.

The efforts of Appalachian Voices’ staff, through concerted outreach to Tennessee’s Appalachian electric co-ops and local stakeholders, played a key part in making the energy efficiency retreat happen, and as a result we were invited to participate as an expert stakeholder. We are extremely encouraged by the outstanding leadership that NGA, TECA, TDEC and Appalachian Electric are showing, and we admire their dedication to helping the families who need it most.

The prospect of a statewide on-bill financing program in Tennessee is exciting, and we remain committed to doing everything we can to seeing it through. Further, we appreciate everything you do to support our work. If you live in western North Carolina, get in touch, because we have a lot going on in your neighborhood too!