Let’s Be Number One: Improving Iowa’s Utility-Run Energy Efficiency Programs
By Andrew Johnson and Teresa Galluzzo, The Iowa Policy Project
Electricity is such an integral part of our lives that we may rarely give a thought to the number of things we plug in and turn on each day. Now, however, thinking about our electricity use is vital. Our spiraling consumption of energy from fossil fuel sources is seriously affecting our climate and our pocketbooks.
This report describes Iowa’s electrical consumption and production and focuses on the role energy efficiency (EE) can and must play in Iowa’s future. It describes Iowa’s laudable efforts to invest in EE through utility-run programs and make suggestions for how to effectively carry these efforts further.
Iowa’s Electricity Consumption
Iowa’s electricity sales per capita are higher than the nation’s, our neighboring states, and states that are leaders in EE. Without aggressive action, this will likely remain the case, because our consumption has also been growing faster than each of these other groups of states. From 2000 to 2006, Iowa’s retail sales of electricity increased by an average of 1.5 percent. The nation’s average growth was 0.2 percent, Iowa’s neighboring states averaged 1.2 percent, and leading EE states averaged 0.3 percent.
Iowa’s Electricity Production
Coal is Iowa’s primary source of electricity generation. In 2006, more than 75 percent of Iowa’s electricity was generated from burning coal. Iowa is considerably more dependent on coal than the rest of the nation; the national average was 49 percent. In recent years Iowa has diversified its power sources. Although still a small portion of our electricity production, renewable sources have been a major growth spot in our generation mix.
The Role of Energy Efficiency at the State Level
Iowa’s electricity demand is forecasted to continue increasing. But the realities of fossil fuel costs and climate change mean Iowa needs to reduce its electricity use from fossil fuel sources. Expanding our EE investments can have large, nearly immediate and economically beneficial impacts.
Iowa was an early leader in EE. In 1990 Iowa passed a landmark law requiring the state’s investor-owned utilities (IOUs) to offer EE programs for all types of customers: residential, commercial and industrial. The law also requires Iowa’s municipal electric utilities (Munis) and rural electric cooperatives (RECs) to offer EE programs to their customers, but these programs do not have to be reviewed or approved. In 2006, the IOUs’ programs yielded a 0.8 percent retail energy savings, the Munis saved 0.15 percent and the RECs saved 0.6 percent.
Electric Utilities Energy Efficiency Efforts (2006)
Iowa’s long tradition of EE is a significant and proud accomplishment. However, Iowa is not meeting some of its stated efficiency goals. The 2001 Energy Policy Task Force convened by then-Governor Tom Vilsack, had the goal of meeting all of Iowa’s future energy demand by increasing EE rather than increasing supply. More recently Governor Culver signed the Energy Security and Climate Stewardship Platform, calling for meeting at least 2 percent of annual retail sales of natural gas and electricity through EE improvements by 2015 and an additional 2 percent annual savings thereafter. Similarly, the legislatively appointed 2007 Energy Efficiency Study Committee suggested increasing annual energy savings to 1.5 percent of retail sales by 2012.
Due to recent lack of federal action on EE, states across the nation are increasing their EE efforts. Overall, states are spending about three times as much as the federal government on efficiency programs. Some of Iowa’s neighboring states in particular have become leaders, outpacing our efforts. Minnesota, which has an electrical system similar to Iowa’s, not only spends more than Iowa on efficiency efforts per capita, but in 2006 Governor Tim Pawlenty called for 1.5 percent per year savings of electric sales, 1 percent of which must come from EE.
Given Iowa’s yet unmet efficiency goals and the fact that states are increasing their efforts and providing us with examples of big EE accomplishments, Iowa needs to seize this opportunity to become an even more energy efficient state. To do this, we must first address shortcomings in our existing programs.
Shortcomings in Iowa’s Utility-Based EE Efforts
• Programs are Confusing, Inconsistent and Not Universally Available
Each of Iowa’s 183 electric utilities runs its own EE programs with a separate set of offerings. As a result, Iowa’s EE effort is sorely lacking in comprehensiveness. Many of the EE measures with the greatest potential for savings are unavailable to many Iowans. If available, utilities’ energy audits are not comprehensive or standard. Financial assistance and advice is generally available only for efficiency upgrades that pertain to the type of energy provided by the utility. For example, gas utilities do not provide compact fluorescent light bulbs.
• Utilities’ Duplication of Program Administration Costs Money
Each of Iowa’s utilities is charged with developing, promoting, administering and evaluating its own EE programs. There is significant duplication of effort, and therefore a great deal of potential cost savings. Iowa’s two electric IOUs spent an average of 27 percent of their total efficiency spending on costs other than EE incentives. More than 50 percent of Munis’ and RECs’ spending was not for incentives.
• Utilities Do Not Have Incentive to Push EE
There is an inherent conflict of interest when a utility is required to encourage its customers to buy less electricity (and hence reduce revenue), and yet is also expected to lead in developing innovative and increasingly effective ways to maximize those lost sales. This fundamental conflict has caused many states to take different approaches to the administration of state-level EE programs such as third-party private or public administration or a regional administration. Others have rewarded utilities for meeting higher EE goals.
• Utilities and State Policy Fail to Prioritize EE
Traditionally, growing electricity demand has been met through increasing supply. Recently, some states have turned to demand-side management to offset demand growth. These states have begun to think of EE as a resource and planned for acquiring efficiency rather than generation. Iowa’s utilities do not treat EE as a resource on par with supply resources. Iowa does not have a statewide EE resource standard nor a requirement that utilities take advantage of cost-effective EE potential. And there is no requirement that Iowa utilities first acquire efficiency potential before pursuing supply-side resources to meet future power demands.
• Misplaced Emphasis on Peak Load Management
Load management is designed to reduce peak load use during the few times when energy demand is high and delivery system reliability is in jeopardy. In 2006, Iowa IOUs spent over $35 million on electric load management, significantly more than any of the other 20 states that implement load management. Load management is an important component of utility planning efforts, and effective programs save both utility and ratepayer dollars. However, load management likely fails to reduce overall energy use or greenhouse gas emissions, and can actually increase both. It also seriously bloats our efficiency spending per capita, ballooning the overall size/cost of the program and making it difficult to place reasonable expectations on improvement and growth in the true efficiency programs. Whereas load response provides economic savings but little, if any, energy savings, EE can provide both quite effectively.
The deficiencies in these programs are reflected in the smaller amount of EE savings Iowa has achieved compared to leading states. In 2000 and 2001 top EE states were achieving electrical EE savings of 0.7 percent to 2 percent of retail sales. During the same period Iowa achieved 0.4 percent annual savings. In recent years, increased spending has brought Iowa’s IOUs savings up substantially to 0.8 percent. However, other states are now aggressively moving toward 1.5 percent to 2 percent annual savings.
Recommendations
Iowa has the potential to move beyond these shortcomings, and more efficiently invest in its EE programs so that our state realizes its true efficiency potential. Other states across the country, including our neighbors are making big strides and Iowa should too.
Other states’ experiences demonstrate that greatest progress in statewide efficiency programs come with some form of third-party administration. We recommend the current rate surcharge be replaced by a uniform public benefits charge on all ratepayers, and the bulk of the resulting public benefits fund be used to establish a third-party, comprehensive, statewide energy efficiency program.
We recommend directing a percentage (starting at 10 percent and rising over time) of the public benefits fund towards a coordinated, guided matching grant program for local (countywide) EE initiatives to harness the power of local creativity, community pride, economic self-interest and personal responsibility.
In addition, we recommend Iowa’s leaders think boldly and establish policies that meet the following principles:
• Align EE, renewable energy and greenhouse gas reduction goals with utility financial interests through legislative and administrative actions.
• Provide universal and comprehensive EE and renewable energy programs and services to all Iowa residents through a public benefits fund created from sales on all energy sources.
• Treat EE as a resource in an integrated resource planning process, establish aggressive EE and renewable energy standards, and require all cost-effective EE and renewable energy be acquired prior to new fossil fuel generation.
• Set aggressive greenhouse gas reduction goals, and incorporate them into all energy-related planning and programs, including peak load management programs and the prioritization and cost-benefit analyses for statewide EE.
• Ensure just and fair policy effects and implementation across the economic spectrum.
For the full report, see
www.iowapolicyproject.org
The Iowa Policy Project was founded in 2001 to promote public policy that fosters economic opportunity while safeguarding the health and well-being of Iowa’s people and the environment. By providing a foundation of fact-based, objective research and engaging the public in an informed discussion of policy alternatives, IPP advances accountable, effective and fair government.
The Iowa Policy Project is a 501(c)(3) nonprofit, nonpartisan organization. Contributions are tax-deductible. For more information, see our website or call (319) 338-0773.
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Friday, March 21
Let’s Be Number One: Improving Iowa’s Utility-Run Energy Efficiency Programs
by
Sam Garchik
on Fri 21 Mar 2008 08:54 AM CDT
Wednesday, January 16
Governor Sets Strong Goal for Tax Fairness: Effort to Close Loopholes Would Help Iowa Business, and Treasury
by
Sam Garchik
on Wed 16 Jan 2008 09:23 AM CST
Governor Sets Strong Goal for Tax Fairness: Effort to Close Loopholes Would Help Iowa Business, and Treasury
By the Iowa Policy Project Long overdue reforms to make business taxes more fair to Iowa-based firms and to improve recycling efforts are part of Gov. Chet Culver’s proposals in his “Condition of the State” message. “It’s good to see the governor moving so strongly on closing tax loopholes,” said Peter Fisher, research director of the nonpartisan Iowa Policy Project (IPP). “The method he is proposing would — as he stated — ‘level the playing field’ for Iowa-based, Iowa-focused businesses against unfair competition by larger, multistate corporations. “Corporate taxes have been on the decline for years as accountants found ways for large multistate firms to avoid paying taxes. This proposal raises revenues without raising taxes, and small-business advocates should be getting behind this plan.” The Iowa Fiscal Partnership has produced several reports on the issue of closing corporate tax loopholes. Another is a tax loophole guide from 2004, “Everything You Wanted to Know About Closing Tax Loopholes and Balancing Iowa’s Budget ... But Were Afraid to Ask.” It is available at this link Culver proposed “combined reporting,” a method of assuring that businesses operating in several states including Iowa pay taxes due in Iowa. Loopholes in current law allow some profits earned in Iowa by multistate corporations to be shifted to other states, reducing their Iowa tax. State officials have estimated this change would save $60 million to $100 million for the state treasury. The governor also proposed an expansion of Iowa’s bottle deposit law to cover beverage containers for now-popular beverages, such as sports drinks and bottled water, that were not envisioned when the original deposit law passed in 1978. “As the governor noted, the original law was a bipartisan initiative, and it’s going to take bipartisan interest to finally get this issue past the special interests that have repeatedly beaten back attempts to improve it in recent years,” IPP executive director David Osterberg said. The Iowa Policy Project produced a set of concise fact sheets for use by legislators and the public when bottle law revisions were proposed in 2005. They are available at: http://www.iowapolicyproject.org/2005docs/050316-BottleFacts1.pdf http://www.iowapolicyproject.org/2005docs/050329-BottleFacts2.pdf http://www.iowapolicyproject.org/2005docs/050418-BottleFacts3.pdf Osterberg said it would be important for legislators to carefully review the governor’s proposal to expand the deposit from 5 cents to 10 cents, and setting aside 2 cents of that for funding of environmental programs and for bottle and can handlers. “Part of that idea is to raise revenue,” Osterberg said. “It is important to fund environmental protection after many years of stagnation or decline. However, we need to be careful to assure that efforts for green policy don’t impose costs disproportionately on lower-income Iowans.” Osterberg also noted Culver’s proposal for a 25 percent renewable energy portfolio standard by 2025 for Iowa. “This is a strong and achievable goal,” Osterberg said. “We and others have shown that public policy can drive clean, renewable energy strategies. The governor’s interest in this issue will be important to moving forward.” The Iowa Policy Project (IPP) is a nonpartisan, nonprofit research and policy analysis organization based in Mount Vernon. IPP reports on environment and energy, budget issues, and job and income trends are available on the web. Monday, October 29
Documenting the Undocumented: New Report Shows Undocumented Immigrants Pay Iowa Taxes
by
Sam Garchik
on Mon 29 Oct 2007 09:12 AM CDT
Documenting the Undocumented: New Report Shows Undocumented Immigrants Pay Iowa Taxes
By the IPP Undocumented immigrant families pay less in state taxes than families at similar incomes in Iowa, but they contribute over $40 million to state coffers and they receive fewer services. A new report for the nonpartisan Iowa Policy Project (IPP) finds that discussions focusing only on costs of undocumented immigrants can miss a big piece of the fiscal equation: the taxes immigrants pay, often without services coming to them. “They pay somewhat less, but they’re not getting a great deal in terms of services in comparison to other families. Estimates of the fiscal impacts of undocumented immigrants would provide a better, more accurate picture if they would include the tax estimates,” said Beth Pearson, an IPP research associate who produced the study with economist Michael F. Sheehan. Sheehan agreed, noting that eligibility for services is often restricted for undocumented immigrants, as they are not permitted to receive Medicaid (for other than emergency room care) or Social Security benefits, for example. “But they are helping to pay for those services through taxes on their paychecks, as well as property taxes and sales taxes on rent and daily purchases,” Sheehan said. “Our study recognizes that there is an investment aspect to spending on public services that some of the political shorthand misses. Immigration policy is controversial, but any discussion of it should recognize that public services are an investment in people, and these folks are helping to pay for it.” Pearson and Sheehan said the report refutes the mistaken assumption of some that because they are undocumented, those immigrants pay no taxes. “Our research shows undocumented immigrant families are paying substantial amounts of state and local taxes: between $40 million and $62 million each year,” Pearson said. The report examines the theoretical tax treatment in Iowa of two families making $27,400 — one documented, one undocumented — using computations from the Institute on Taxation and Economic Policy and other research that helps to illustrate taxes likely to be paid by undocumented workers. The authors found that an undocumented family at that income would pay about $1,254 in sales and excise taxes, $110 in property taxes and $307 in state income taxes — or $1,671 a year, about 80 percent of the amount estimated to be paid by a documented family at the same income. “We know these estimates may be conservative, but that gives us an idea of an amount no one can reasonably dismiss in these policy discussions,” Pearson said. “There’s not a lot of data on undocumented people since they are a hard population to measure, but we know there are between 55,000 and 85,000 in Iowa.” The authors suggested that policies could capture more tax from undocumented immigrants with moves such as increasing enforcement of employers’ withholding of income taxes. “As long as they’re here, it makes sense to increase tax payments as much as we are able from those immigrants so that they are paying closer to what a documented family pays,” Sheehan said. “But it’s a given that many of the solutions to this controversial issue will have to be developed at the federal level, not the state level.” The Iowa Policy Project (IPP) is a nonpartisan, nonprofit research and policy analysis organization based in Mount Vernon. IPP reports on job and income trends, budget and tax policy, and energy and environmental issues are available on the web at <http://www.iowapolicyproject.org>. Tuesday, August 21
IPP Hiring Research Associate
by
Sam Garchik
on Tue 21 Aug 2007 09:37 AM CDT
IPP Hiring Research Associate
By Kristi Lohmeier, IPP The Iowa Policy Project Research Associate120 N. Dubuque Street #208, Iowa City, IA 52245 • (319) 338-0773 • www.iowapolicyproject.org JOB ANNOUNCEMENT The Iowa Policy Project, a nonprofit, nonpartisan organization focused on research and analysis on a range of public policy issues in Iowa, seeks a research associate who will produce reports and work in our Iowa City office. Job requirements include high-quality research skills, ability to write and communicate clearly to varied audiences, and ability to write grant proposals. The successful applicant will be able to manage research projects, analyze data and write reports. Research will focus on, but not be limited to, issues in state budget and tax policy, and state and local fiscal health and economic performance. The research associate will be asked to respond to questions from media and policy makers and to make presentations to community groups and the media. Job will also entail some financial accounting and budgeting for the organization. Qualifications: A graduate degree or post-graduate work in a relevant field (urban planning, economics, social work, public health, geography, or political science) is required. Excellent computer and writing skills are a must. Desirable qualifications include experience with statistical packages, public policy research, public speaking, and QuickBooks. Compensation: Commensurate with experience. Includes pension and health-care benefits. To apply, send a resume and cover letter to pfisher@iowapolicyproject.org. Information may also be sent to: The Iowa Policy Project 120 N. Dubuque St. #208 Iowa City, IA 52245 This position is open immediately and screening will begin Aug. 17. Resumes will be accepted until the position is filled. The Iowa Policy Project is an equal opportunity employer, and as such, takes affirmative action to ensure that discrimination does not occur on the basis of race, creed, color, age, sex, national origin, marital status, sexual orientation, religious or political affiliation, disability, or any other classification considered discriminatory under applicable law. Thursday, June 7
The Progressive Iowa Network Organizing Summit
by
Caroline Vernon
on Thu 07 Jun 2007 01:20 PM CDT
The Progressive Iowa Network
Organizing Summit Saturday, June 9, 2007 Iowa City Public Library Agenda: 1. Welcome 2. Introductions 3. Why a Progressive Network is important for Iowa 4. Democracy for America – Support for Iowa’s Progressive Network 5. 2007 Iowa Legislative Review (Legislators) 6. Overview of Top Progressive Legislative Priorities (Progressive Activists) 7. Envisioning Progressive Power in Iowa (Ed Fallon & Denise O'Brien) 8. Break 9. Top Progressive Legislative Issues - Workshops VOICE (Voter Owned Iowa Clean Elections) CAFO/Farm Bill Health Care Media Reform Fair Share 10. Lunch 11. Workshop Reports 12. Progressive Iowa Network – Next Steps 13. Democracy for Iowa – Administrative overview 14. Adjournment Please note: If you are interested in discussing potential state-wide initiatives that will pressure our Congress to end the war in Iraq, please come to this event. Peace groups can strategize during the workshop hour (#9) and also report back to the larger group after lunch. This will be an excellent opportunity for all of us to be united for peace. We will start gathering at 9am - coffee and bagels / breakfast treats. The summit will begin promptly at 9:30am. Please let us know if you intend to come: Please RSVP: http://www.dfalink.com/event Monday, June 4
Establishing our Progressive Iowa Network (PIN) - Update
by
Caroline Vernon
on Mon 04 Jun 2007 09:30 AM CDT
Establishing our Progressive Iowa Network (PIN) - Update
By Caroline Vernon This Saturday, June 9th, progressive leaders, legislators and activists from various organizations across Iowa will come together for the first DFA-Iowa Networking Summit. We will be gathering at the Iowa City Public Library from 9am to 3pm (the last hour will be devoted to DFA-IA administrative business). Some of our great leaders who will be in attendance include Charlie Chamberlain from Democracy for America, Ed Fallon, Denise O’Brien, and Senator Joe Bolkcom, just to name a few… Once again, the purpose of this gathering is to establish a Progressive Iowa Network which will serve to better unite progressives across the state in order to support each others efforts around important issues, particularly if we hope to be more effective moving into the next legislative session. Besides providing an excellent opportunity to connect with fellow progressives, one direct benefit of an Iowa Network would be the enhanced ability to articulate our progressive world view by creating a state-wide echo chamber that will carry our unified message to all Iowans. As previously indicated, we have identified 5 issues in Iowa that require urgent action: 1. VOICE (Voter-Owned Iowa Clean Elections) 2. CAFO regulations / Farm Bill 3. Fair Share 4. Healthcare 5. Media Also, due to the recent vote on the Iraq supplemental bill, it is our hope that peace activists from across Iowa will take advantage of this opportunity to come together to discuss potential state wide initiatives that will effectively pressure those in Congress who voted for the bill. In addition to addressing the above issues, we are tracking organizations by their particular area(s) of focus. This list has also evolved since my last blog: 1. Policy / Research 2. Lobbying 3. Media & Blogs 4. Grassroots Organizing These 4 areas have been added: 5. Direct Action 6. Education 7. Funding (to identify potential sources of funding) 8. Political Campaigns (organizations who can be involved with campaigns) We are working on compiling a comprehensive list of all participating organizations, including contact information, primary areas of focus and primary issues of concern. If you or your organization will be attending the summit, we ask that you submit your information using the example below (4 stars = primary focus) Example: Organization: Progressive Action for the Common Good Address: 3707 Eastern Ave, Davenport, IA 52807 Contact Information: (name/position/phone/email): Caroline Vernon, Organizer, 563-676-7580, carolina1961@gmail.com. James Lee, Executive Director, 563-650-3922, jlee6367@yahoo.com Areas of Focus Rating Issues Rating Policy/Research VOICE **** Lobbying ** CAFO/Farm Bill *** Media/Blogs Media ** Grassroots Organizing **** Fair Share ** Direct Action *** Healthcare *** Education ** Funding * Other: _Peace _ **** Poltical Campaigns Please send the above information to carolina1961@gmail.com by Thursday, June 7th so we can be sure to include your information in the hand-out. It is important to note that we encourage ALL progressive organizations to attend this meeting and become part of the network even if we may not be focusing on your specific issues at this time. The goal of the network is to create a framework designed to support all progressive initiatives. We need everyone’s participation in order to succeed. If you have any questions, please call Caroline Vernon at 563-676-7580. Hope to see you Saturday! Wednesday, May 16
Establishing Our Progressive Iowa Network (PIN) - Mark the Date!
by
Caroline Vernon
on Wed 16 May 2007 11:25 AM CDT
Establishing our Progressive Iowa Network (PIN) – Mark the Date! By Caroline Vernon On Saturday, June 9th, progressive leaders, activists and legislators from across the state will converge on Iowa City for our first 2007 Democracy for Iowa Organizing Summit. We are still working out the details on the venue (forthcoming) but we will be meeting from 9am to 3pm (the last hour will be reserved for DFA-IA members to discuss administrative business so it will not be necessary for everyone to stay for that segment). The purpose of this gathering is to establish the Progressive Iowa Network (PIN). This network will serve to better unite progressive organizations, legislators, and leaders across the state so we can support each other’s efforts around progressive issues in Iowa. Currently, we have an unprecedented opportunity to get progressive legislation passed in our state. However, in order to achieve legislative victories on the issues that we care about, we must establish an effective framework that allows us to better organize our efforts, clarify our message, mobilize our base, educate the public and influence our state officials. We have identified the following 5 issues as requiring urgent action: 1. VOICE (Voter-Owned Iowa Clean Elections) Please note: we want ALL progressive organizations to attend this meeting and become part of this network even if we may not be focusing on your specific issues at this time. The Summit Agenda will cover the following: I. Why is PIN important? The first part of this summit will discuss why PIN is important. Groups/Individuals will be asked to introduce themselves and identify their main areas and issues of focus: • Policy/Research II. Update & Evaluation of the recent Iowa Legislative Session • What went well? III. Break-Out Sessions by Issue • Strategize with other progressives around the state that are working on the same issue. Lunch IV. Report back to larger group identifying specific needs • What do you need from PIN? We will not have time to hear specific plans but rather will want to hear your list of needs on how other organizations/leaders can help you make progress around your issue. V. Where does PIN go from here? We will discuss logistics, network structure and set a date and time for our next meeting(s). VI. DFA-Iowa Administrative Planning Session (for DFA-IA members) This last segment will be for DFA-IA members to discuss by-laws, how we can better support Blog for Iowa, and other administrative details. Outreach around this summit has been underway for awhile -- many progressive organizations/individuals in Iowa have already been notified. However, if you have not yet heard from us directly, please email Caroline Vernon ASAP: carolina1961@gmail.com. We need every progressive organization, leader and legislator in Iowa to participate in order to achieve maximum effectiveness as a network. |
Iowa Sites Child & Family Policy Center - Iowa Genetic Engineering Action Network Iowa Citizen Action Network - ICAN Iowa Citizens for Community Improvement Iowa Federation of Labor, AFL-CIO Iowa Physicians for Social Responsibility Iowa Public Interest Research Group Midwest Environmental Justice Advocates Progressive Action for the Common Good Progressive Coalition of Central Iowa QCAD (Quad-Citians Affirming Diversity - GLBT) Iowa Blogs The Deprogrammer (Quad Cities) Iowa True Blue (Gordon Fischer's Blog) Iowa Voters for Open and Transparent Elections Political FalloutFight Iowa Rapid Response Network - Iowa
Iowans for Better Local TV
Air America
The Counterpoint
National FAIR: Fairness & Accuracy in Reporting
Media Matters for America
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