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Architecture 2030 has done it again. The folks who brought us a couple of much needed doses of reality on offshore drilling and nuclear energy have developed an economic stimulus plan (pdf) which, according to word on the street, is on the radar of the Obama transition team. The main thrust of the plan is a focus on investment in energy efficiency, the lowest hanging fruit when it comes to reducing energy use and greenhouse gas emissions.
Architecture 2030 recommends an investment of $171.72 billion ($85.86 billion each year for two years) in a plan that integrates a housing mortgage buy-down and an accelerated-depreciation program for commercial buildings with energy efficiency in buildings, specifically with the widely adopted energy reduction plan called the 2030 Challenge. This investment will create 3.75 million direct jobs in the Building Sector, as well as 4.34 million indirect and induced jobs and over 350,000 jobs from consumer spending.
Of special note, tying the mortgage buy-down and accelerated depreciation to achieving specific energy reductions immediately creates the opportunity for a $1.6 trillion renovation market that does not currently exist. The immediacy and magnitude of this opportunity can turn the tide for the construction industry, as well as the nation.
Writing about the plan for Grist, Architecture 2030 founder Edward Mazria outlines some of the key components of the stimulus plan:
With a federal investment of $85.56 billion each year for two years, the Plan will, in just two years:
- Create over 8 million new jobs and create a new $1.6 trillion renovation market.
In just five years, it will:
- Save consumers $142.33 to 200.88 billion.
- Reduce CO2 emissions by 481.13 million metric tons.
- Reduce energy consumption by 6.17 quadrillion btu.
- Save 1.83 trillion cubic feet of natural gas.
- Save 83.35 million barrels of oil.
The beauty of a focus on efficiency is that, although there is an initial investment, there is a net gain in individual disposable income through reduced energy costs and lower mortgage rates. Essentially, borrowing money for efficiency improvements can result in an overall lower monthly mortgage payment which has the added benefit of addressing the foreclosure crisis and helping to keep people in their homes. The estimated $142.33 billion to $200.88 billion savings over 5 years is not exactly chump change.
As David Sassoon of SolveClimate writes:
Architecture 2030 has figured out a way to direct federal stimulus into the beleaguered building sector so that it succeeds in doing these things:
- Reduces the cost of mortgages
- Reduces energy consumption and energy bills
- Creates millions of jobs and stimulates economic recovery coast to coast
- Returns the stimulus money back to government coffers.
The plan concludes: “With a single investment, the U.S. can create jobs, strengthen the US economy, reduce CO2 emissions and energy consumption, and save consumers billions of dollars. Investing in the Building Sector is the only investment that can accomplish all of these objectives.”
Sounds like a good start for the Obama economic team and a win for everyone.
Get Energy Smart! Now!!!
sums it up this way: “Here is a path for desperately required short-term stimulus that also will help in meeting our desperate need to change our course from a reckless charge over the catastrophic climate change cliff. Stimulate the economy. Save money. Help stop Global Warming. Works for me.”
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