Energy is a fundamental resource. Society relies on energy in order to operate and maintain safe, healthy, and accessible lifestyles. However, in order to promote sustainability, society must invest in methods to curb excess energy consumption by increasing energy efficiency. We spoke with Mark Kresowik to learn more about the benefits of setting energy standards. For a transcript, please visit https://climatebreak.org/standardizing-energy-efficiency-with-mark-kresowik/.
The United States consumes vast amounts of energy and spends enormous amounts of money every year to fuel our economy, business, and lifestyle. The US accounts for 4% of the world’s population, yet uses 16% of the world’s total energy. The production and consumption of energy are major drivers of global climate change, hazardous air pollution, habitat destruction, and acid rain. In 2022, US consumers spent $1.7 trillion on energy, amounting to around 6.7% of GDP. Annual energy costs were $5,159 per person in 2022, a 30% increase from 2021. In order to mitigate the large-scale impacts of excessive energy consumption, policymakers are calling for an urgent restructuring of the energy system through increasing efficiency. Energy efficiency is the use of less energy to perform the same task or result, often being achieved through more efficient heating and cooling systems, manufacturing facilities, and appliances and electronics. Simply, energy efficiency reduces the amount of energy required to provide products and services. Many lower-income households are burdened by rising electricity costs and increasing risks from extreme weather events but do not have the resources to fund energy-efficient systems in their homes. To address this disparity, new energy efficiency standards for affordable housing are being developed in order to lower costs and improve climate resilience for households unable to afford high energy prices.
The Biden Administration has taken a lead in issuing new minimum energy standards for homes built with federal dollars in an attempt to save costs for renters and homeowners. The US Department of Housing and Urban Development (HUD) and the USDA announced the adoption of the Minimum Energy Standards for new single and multi-family homes. The standards are expected to decrease cost expenditures for residents, reduce energy use and pollution, improve resident health, and increase resilience in extreme weather events. The adoption of such energy standards will incorporate cost-saving insulation, air sealing, and efficient windows, lighting, heating and cooling systems in HUD and USDA supported properties to decrease energy bills for families. It is projected that energy efficiency improvements of 37% will decrease energy costs by more than $950 a year for homeowners. Overall, minimum energy standards are projected to expand housing affordability, minimize health risks, and improve resilience of homes during extreme weather.
Energy efficiency can increase affordability and reliability for homeowners by reducing total energy demand and peak electricity demand. Peak electricity demand is the highest demand for electricity at any one point in time, which utilities are required to have the capacity to meet. Peak demand is driven by patterns of energy use in the market, with most production occurring in the afternoons. Energy efficiency programs utilize a demand-side management (DSM) strategy to reduce energy demand specifically during these high-volume, peak hours. For homeowners, energy efficiency improvements are cost-effective as they can lower utility bills by reducing the amount of power needed. Further, energy efficiency can decrease our reliance on fossil fuels and enable the growth of renewable energy, thereby decreasing GHG emissions. Updated minimum energy standards are expected to reduce 6.35 million metric tons in carbon emissions over the next three decades, generating an annual cost savings of $13.9 million. Energy efficiency also spurs the creation of new jobs in research, production, installation, and sales. In 2022, more than 2.1 million Americans worked in energy efficiency, with this only growing as we transition to a greener economy. There are many social, economic, and environmental advantages that come alongside transitioning towards an energy-efficient economy,
Although there are many advantages to achieving energy efficiency, there exists roadblocks in achieving the current goals being set. First, innovative technologies rely upon very specialized knowledge, requiring expert research in the field. As well, a large concern in the development of these technologies are the significant upfront costs, through initially high levels of investment in research and development. For projects that are just starting up, it can be difficult to secure funding, potentially leading businesses to solely focus on short-term goals. On the consumer side, there may be a lack of acceptance or awareness of these new technologies prohibiting their take up in the market. To achieve universal acceptance, technologies must attain the energy savings and functionality that consumers expect. Scaling up these technologies can be time-consuming and labor-intensive, requiring complex supply chain logistics, techniques, and manufacturing. Government policies, such as the new energy efficiency standards for lower-income households, will be vital in encouraging innovation and investment to accelerate this transition.
Mark Kresowik, Senior Policy Director at the American Council for an Energy-Efficient Economy, is a strong advocate for centering marginalized communities in policies that work to improve energy efficiency. Mark works to shape local, state, utility, and federal-level policies across the country.
For a transcript of this episode, please visit https://climatebreak.org/standardizing-energy-efficiency-with-mark-kresowik/.
Ethan: I’m Ethan Elkind, and this is Climate Break. Climate solutions in a hurry. Today’s proposal? Improving energy efficiency standards for affordable housing in the US. We spoke to Mark Kresowik at the American Council for an Energy Efficient Economy about new federal standards.
Mr. Kresowik: What you're talking about is more insulation, better air sealing to keep the air inside your home so that it stays cold when you're running the air conditioning in extreme heat, and that it stays hot when you're running the heat when it's very cold outside.
Ethan: Complying with these new standards will result in savings for residents AND help address climate change.
Mr. Kresowik: That will help save homeowners a thousand dollars a year on their energy costs. That's less energy consumed, which means a lot less climate pollution, a lot less carbon going to the atmosphere.
Ethan: And Kresowik says these homes will be better equipped to withstand extreme weather.
Mr. Kresowik: If that temperature spikes as it certainly did in Phoenix and other places around the country, and the power goes out, these measures can literally keep you alive and safe and comfortable in your home for days additional.
Ethan: He would like to see these standards expanded.
Mr. Kresowik: Federal housing finance agencies, in this case specifically HUD and USDA, support about 15 to 20 percent of mortgages in the United States of America. Those homes need to be built to minimum energy performance standards. So if the Federal Housing Finance Agency, which is the regulator and conservator of Fannie and Freddie after the housing finance crisis, does the same thing, that would extend those energy savings, those lower home energy costs, and greater resilience in the face of extreme weather to about three quarters of the homeowners and home buyers in the United States.
Ethan: You can learn more about energy efficiency and affordable housing at
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