Monthly Archives: September 2017

Property Assessed Clean Energy Act

Whether you personally are or are not concerned with global warming, you should be interested in saving money. Many steps taken to mitigate climate change such as sustainable energy supplies and energy efficiency save money. The Trump administration refuses to acknowledge the risk of global warming and subsequent climate change, indicated by his refusal to join the rest of the world in the Paris Accords. Regardless, cities, states, schools and universities, even businesses across the country do get it and are acting to honor the goals of the agreement.

Assuming Arkansas is like the rest of the United States, about half of all the energy and three-quarters of the electrical energy used goes into buildings. Acts, ordinances, etc. which lead to increased utilization of non-carbon energy sources can go a long way to save energy, lower costs, and lessen the use of fossil fuels which drive global warming.  Act 1074 of 2013, called the Property Assessed Clean Energy act or PACE is a program that allows a person or business to finance energy projects through the inclusion of the costs in a property tax assessment.

The act enables governments such as cities, counties or combinations thereof to form Energy Districts which organize financing for projects. Fayetteville, (later joined by Springdale,) and North Little Rock have active programs. A property owner/business identifies a project that will save energy or water or create clean renewable energy. The improvement district then arranges the financing for the project. This can be done with bonds or a variety of private financing. The property owner repays the loan through a property tax assessment over a defined period of time.

A number of energy efficiency projects come to mind: Increased insulation, more efficient window windows with low-E glass, solar hot water systems, projects which reduce water consumption, more efficient heating and cooling systems such as ground source heat pumps. Projects which actually produce clean energy are also funded: photovoltaic panels, micro-hydro projects, wind turbines and biomass energy are all included.

Here is an example of how it could work. A property owner with an older structure decides to upgrade the HVAC, insulate the walls and attic, and replace the windows. The total cost of the project is 10,000 dollars. She goes the Energy Improvement district and receives 100 percent financing. The cost is repaid over ten years through a property tax assessment. Generally, the savings in utility costs will cover or even exceed the annual fee. If she sells her structure before ten years the buyer assumes the assessment, just as they assume the energy savings from the energy improvement.

PACE benefits the local community by creating a cleaner, greener environment. Local businesses that supply the equipment will see increased sales. Installers will have more work and create jobs for skilled tradesmen and unskilled labor alike.

Such a program is easily within the reach of Russellville, and other cities which may choose to join the program. The City of Fayetteville created the model ordinance used by the aforementioned cities. Were the program adopted county-wide many farmers or other rural businesses and homes could benefit from energy saving/production.

The best way to save money and the environment comes through energy efficiency. Reduced use of electricity means lower costs but also less burning of coal and natural gas. This is a win, win, win situation. The adoption of ordinance to create an energy district will save the property owners money, create business opportunities and jobs for the community, clean the air, and cool the planet. What’s not to like?

Climate Change, Weather Change

Climatology is meteorology writ large. They are really just different branches of atmospheric science. If you want to know whether it is likely to rain tomorrow talk to the weatherman who is a meteorologist. But if you want to know about what the weather will be like in a number of years, you should consult a climatologist.

As I write the water has yet to drain out of the east Texas area where Hurricane Harvey caused the greatest rainfall event ever in United states (over 50 inches of rain.) Meanwhile, there are three hurricanes off our shores. These are weather phenomena which are impacted by climate. Climate change of necessity causes weather changes.

Hurricane Irma is the most intense Atlantic hurricane ever. It appears to be on a collision course with Miami Beach. If it veers slightly to the west the Carolinas are threatened. Right behind Irma is Jose streaming in our direction from the east. Hurricane Katia is stewing off the coast of Mexico with little indication of movement.

Meanwhile on our west coast earlier this year we saw record flooding and now a severe heat wave and wildfires from Los Angeles to Vancouver.

Is this normal? Or is the the new normal if climate change is factored in? There is uncertainty in blaming any one event on global warming. Realistically that can’t be done. But let me analogize if I may. Mark McGuire was a major league baseball player. Much of his success at home plate he later admitted was due to his use of performance enhancing steroids. Just one example, from 1996 to 1999 he led the league in home runs.

So here is the question: Can we attribute any one of those home runs to steroid use? Not really. What we can say is the muscle mass developed due to his steroid use greatly contributed to his success.

Adding Carbon Dioxide to the atmosphere from burning fossil fuels is like providing steroids to an athlete. The added CO2 causes heat to be trapped in the atmosphere which which causes warming, but also creates a more dynamic atmosphere. More droughts occur because it’s hotter. More intense rainfall events occur because a warmer atmosphere holds more water.

Hurricanes are driven to large degree by the warmer ocean water, clearly demonstrated by the summer/fall hurricane season when the Atlantic is naturally warmer. Make it warmer still from global warming and you get Irma, the strongest Atlantic hurricane ever.

The concentration of Carbon Dioxide in the atmosphere is now higher (407 ppm) than it has been for at least 2 to 4 million years. Other heat trapping gasses such as Methane and Nitrous Oxide are also at all time highs. Yet there are those, in fact whole political parties, which deny anthropogenic climate change even in the face of rising seas, melting ice, and intensifying storms.

The United States contributes 20% of the heat trapping gasses to the atmosphere, but only constitute about 5% worlds population. Every scientific body on the planet including all major science organizations in the United states agrees that climate change is a threat and needs to be addressed. Our government is alone among the nations of the world in our refusal to address global warming. ALONE.