Rebuilding Place in the Urban Space

"A community’s physical form, rather than its land uses, is its most intrinsic and enduring characteristic." [Katz, EPA] This blog focuses on place and placemaking and all that makes it work--historic preservation, urban design, transportation, asset-based community development, arts & cultural development, commercial district revitalization, tourism & destination development, and quality of life advocacy--along with doses of civic engagement and good governance watchdogging.

Thursday, October 21, 2021

October is National Energy Awareness Month

I didn't know that a number of years ago, the US Department of Energy designated October as National Energy Awareness Month.  

It's particularly appropriate this year given:

  • the need to improve the reliability of the energy grid more generally and increased stress due to the rise in renewable energy sources and electrification of motor vehicles 
  • heat wave related energy blackouts and deaths of people without air conditioning (blog entry)
  • cold wave related energy blackouts, especially in Texas (blog entry)
  • how failures in Texas this past winter led to massive price escalation throughout the Midwest because of natural gas production and distribution
  • big increases in energy prices being likely this winter
  • the seeming failure of energy grid privatization in Puerto Rico ("Who's to blame for Puerto Rico's power crisis? It's complicated, a report shows," NBC News), etc.
We'll see if this time Texas follows the recommendations of the Federal Energy Regulatory Commission concerning system reliability ("Feds call for more regulation of Texas power grid, natural gas industry," Austin American-Statesman).

The UK in particular and Europe more generally faces significant energy price escalation for a variety of reasons: (1) increased demand; (2) a drop off of investment in response to demand declines during the pandemic; (3) teething pains in the transition from fossil fuels to renewable energy sources; (4) fall off in renewable energy production, etc. ("Europe's energy crisis: Continent 'too reliant on gas,' says von der Leyen," Euronews).

(Separately, the UK has a Brexit-induced gasoline shortage, because there aren't enough truck drivers to take fuel to stations.  Although there is plenty of fuel. AP photo.)

For similar reasons, it's expected that energy prices will rise in the US this winter as well ("Home heating costs set to spike this winter amid global energy crunch," Sinclair Television, "U.S. home heating bills expected to surge this winter, EIA says," Reuters).  From Reuters:

Last year energy prices plunged to multi-year lows due to coronavirus demand destruction, particularly natural gas, the most popular U.S. heating fuel, which hit a 25-year-low. 

Depending where people live, the EIA said residential costs will rise to about $11-$14 per thousand cubic feet (mcf) for natural gas, about $2.50-$3.50 per gallon for propane, and $3.39 per gallon for heating oil. 

That compares with last winter's residential costs of around $8-$12 per mcf for natural gas, $1.50-$2.50 per gallon for propane, and $2.55 per gallon for heating oil.

Photo: "Insulate Britain: Who are the protesters and why do they keep blocking roads?," Big Issue.

In response to price rises in the UK, the advocacy group Insulate Britain has been demonstrating by shutting down major freeways ("Who are Insulate Britain and what do they want?," Guardian). 

More recent UK government home energy conservation programs failed and were cancelled ("Green deal scheme did not deliver energy savings, audit finds," Guardian). 

Photographer unknown.

The forthcoming rise in utility bills this winter  re-raises the issue of energy poverty.  

It would be very beneficial to have a massive home energy conservation initiative as part of a "Green New Deal" and President Biden's Build Back Better initiative which is having a hard time making it through Congress between the Republicans and the Democratic-lite Senators Sinema and Manchin.

Sadly, I doubt that energy conservation is much on the mind of Senator Manchin given how he earns millions each year from his investments in coal ("Joe Manchin’s ‘blind trust’ is an utter farce," Philadelphia Inquirer).

Photo: "Coming Up ‘Down the Hill’ On Peoria’s South Side," Belt Magazine.

Earlier in the year, I was shocked at an article in the Washington Post about people in Peoria's South Side neighborhood with monthly utility bills over $1,000 in the winter months, and I was surprised about reporting on how many low income households pay higher utility rates with "deregulation" rather than lower rates.

Energy conservation assistance programs for low income households should be an element of neighborhood improvement programs.  In response, I added "Local neighborhood stabilization programs: Part 5 | Adding energy conservation programs, with the PUSH Buffalo Green Development Zone as a model," which suggests systematic energy conservation programs to address equity and energy poverty programs in low income communities, to my series of articles on creating neighborhood revitalization initiatives ("A once 'wonderful' part of Peoria eroded with blight and crime. Why these residents stayed," Peoria Journal-Star).

It's also a way to provide job opportunities.

But I forgot to mention the importance of trees in addressing summer heat.  The New York Times has a couple of important pieces on inequitable distribution of trees in cities ("Since When Have Trees Existed Only for Rich Americans?" and "Why an East Harlem Street Is 31 Degrees Hotter Than Central Park West") and the contribution to the heat island effect.  

Also see this blog entry and "Boston’s ‘heat islands’ turn lower-income neighborhoods from hot to insufferable," Boston Globe. (Although I remember high income areas of San Francisco being without many trees also, due to small lots and virtually 100% lot coverage by buildings.)

My piece on energy conservation as an element of neighborhood revitalization didn't mention the tree canopy as a way to address summer heat island issues, which will be of increasing importance going forward.  Therefore, tree planting programs should be an element of such programs as well.

The next time I re-write "Local neighborhood stabilization programs: Part 5 | Adding energy conservation programs, with the PUSH Buffalo Green Development Zone as a model" I'll add a section on a massive tree planting program.

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Thursday, June 17, 2021

Local neighborhood stabilization programs: Part 5 | Adding energy conservation programs, with the PUSH Buffalo Green Development Zone as a model

-- "The need for a "national" neighborhood stabilization program comparable to the Main Street program for commercial districts: Part I (Overall)"
-- "To be successful, local neighborhood stabilization programs need a packaged set of robust remedies: Part 2"
-- "Creating 'community safety partnership neighborhood management programs as a management and mitigation strategy for public nuisance programs: Part 3 (like homeless shelters)"
-- "A case in Gloucester, Massachusetts as an illustration of the need for systematic neighborhood monitoring and stabilization initiatives: Part 4 (the Curcuru Family)"
-- "Local neighborhood stabilization programs: Part 5 | Adding energy conservation programs, with the PUSH Buffalo Green Development Zone as a model," 2021

In August 2020, I wrote a series of pieces about the need for focused neighborhood stabilization and improvement programs, particularly in weak market neighborhoods.  It recommended as a proposed model the reworking of the Main Street commercial district revitalization approach, but for neighborhoods, which the State of Pennsylvania has already done, calling it "Elm Street." 

-- Elm Street program, Pennsylvania Downtown Center
-- Elm Street Managers Handbook
-- Chambersburg Elm Street Neighborhood Plan 

Part 2 discusses packaging a set of remedies, so the programs can act expeditiously. To do that programs need to collect data and information and create maps showing the condition and state of properties, and identify potential solutions, including organizing community volunteer and self help/DIY initiatives such as the "Paint Ypsilanti" initiative that helped residents in the Depot Town neighborhood, when their houses were in need of a new paint job.

Part 3 discussed creating focused "community safety partnership" initiatives to manage and mitigate nuisances, and Part 4 discussed a particular example in Gloucester, Massachusetts involving shaming of a household that needed help in order to maintain their house and property which is large, old, and in need of serious maintenance.

Unfortunately, unlike how the "Main Street" commercial district revitalization program was fostered by the National Trust for Historic Preservation, because they saw it as a way to help preserve historic buildings and towns, there just isn't a good national organization out there set up to take on, develop, and "spread" the Elm Street Approach across the county.

(Note that the Main Street model was developed from an initiative in Corning, New York, which started in 1964!!!!!!, where the town realized that to compete with new shopping malls, they ought to manage their downtown similarly, and they hired a downtown manager.  It still took 15 years from that point to develop the Main Street program.)

Energy efficiency programs to support low income residents.  There's nothing new about energy efficiency programs.  Most states have them.  HUD has programs that support energy efficiency retrofitting for seniors and low income households.  So do the Department of Energy including its Weatherization and Intergovernmental Programs Office and the Environmental Protection Agency.  Even the USDA's Rural Development Program.  There are plenty of examples of nonprofit or social enterprise organizations working in this space.

-- Low-Income Energy Efficiency: A Pathway to Clean, Affordable Energy for All, Environmental Defense Fund
-- "Study Highlights Energy Burden for Households and How Energy Efficiency Can Help," Natural Resources Defense Council
-- ADVANCING ENERGY EFFICIENCY IN DEVELOPING COUNTRIES: Lessons Learned from Low-Income Residential Experiences in Industrialized Countries, National Renewable Energy Laboratory
-- Energy Efficiency for Low Income Households, European Parliament
-- "Low-Income Households Pay A Lot For Energy. Efficiency Can Help Cut Costs," Alliance to Save Energy

El Paso Electric Power plant.

Although it has been getting a renewed focus lately, because energy efficiency is seen as reducing electricity demand enough to take the edge off of load and generation problems resulting from extreme weather such as what happened in Texas in February ("Cold wave: the Texas power debacle disproportionately impacts the less well off") and currently, with hotter temperatures ("Gov. Greg Abbott downplays electric grid concerns as Texans are told to conserve," KXAN-TV).


While it could be a stand-alone piece, since reading some pieces about how Baltimore's low income residents tend to have very expensive electricity plans ("Retail electricity deregulation mostly benefits companies at the expense of consumers" and "Why the Poor in Baltimore Face Such Crushing ‘Energy Burdens’," Inside Climate News) and a terrible story about low income people in Peoria having $4,000+ electricity bills ("OFF THE GRID: A flood of federal aid often fails to reach America’s poorest families," Washington Post), I think a fifth piece should be added to this series, because energy efficiency issues are particularly pressing in low income neighborhoods.

Helping people avoid $4,000+ electricity bills is a way to reduce the financial precariousness of low income households.

Minnesota Power Pyramid of Conservation, residential version

Other reporting.  Since the March piece ("Retail electricity deregulation mostly benefits companies at the expense of consumers") there's been more reporting on this topic, supporting the idea of a renewed emphasis on energy conservation as a strategy to support low income households..  

Low income households use more energy and pay more.  First, a study ("Measuring social equity in urban energy use and interventions using fine-scale data") published in the Proceedings of the National Academy of Sciences finds that low income households and people of color spend significantly greater amounts on energy than higher income households ("Tackling 'Energy Justice' Requires Better Data. These Researchers Are On It," NPR).  From the article:

The researchers found that in low-income communities, homes averaged 25 to 60 percent more energy use per square foot than higher-income neighborhoods. And within all income groups except for the very wealthiest, non-white neighborhoods consistently used more electricity per square foot than mostly-white neighborhoods. The results were even starker during winter and summer heating and cooling seasons.

"This study unpacks income and racial inequality in the energy system within U.S. cities, and gives utilities a way to measure it, so that they can fix the problem," says Ramaswami, a professor of civil and environmental engineering at Princeton University who's the lead investigator and corresponding author of the study. It's part of a larger project funded by the National Science Foundation to promote 'equity first' infrastructure transitions in cities.

This seems to confirm the real world experiences reported in Baltimore and Peoria.

Energy conservation programs don't do a good job reaching low income households.  Second, Yvonne Abraham, a columnist at the Boston Globe, writes ("Energy efficiency is a low-hanging fruit to combat climate change. So why can’t everyone get access to it?") that energy efficiency programs in Massachusetts tend to extraordinarily benefit higher income households, that lower income households need more help, more outreach in order to reap the benefits.  From the article:

Though Mass Save is available to every ratepayer in the Commonwealth, those who live in affluent towns are more likely to take advantage of it: Participation in places like Bolton, Carlisle, and Hingham is up to seven times greater than in Lawrence, Fall River, and New Bedford. 

 “The program as designed works really well for single-family homeowners who have money to spend to make their homes more efficient, and who speak English,” said Eugenia Gibbons, Boston director of climate policy at Health Care Without Harm. For others, not so much. 

 It takes time, trust, and money to participate in Mass Save: time to apply for a visit and to meet with a consultant; trust that the energy utility, which administers the program, is really offering you something for free, with no catch; and money to pay your share of the subsidized insulation and boiler bills. All three are in short supply in places where blue collar workers, immigrants, and renters are concentrated. Language barriers widen the gap...

Those who live in less advantaged places need Mass Save the most: They’re spending as much as 15 percent of their disposable income on energy bills; they tend to live in older, draftier, less energy-efficient housing; and they suffer from poorer air quality and its attendant maladies, including asthma. 

We have to fix this, and not just for the sake of the underserved people who are paying into the system but not getting its benefits, though that is reason enough. Reducing fuel consumption anywhere in the Commonwealth serves everyone: It is crucial to our quality of life, and the planet’s survival.

It turns out a recent effort in the UK to promote energy conservation both as a jobs program and to reduce household energy costs was junked soon into the program because of mismanagement ("UK government scraps green homes grant after six months," Guardian).

This point is similar to those made in Parts 2 and 4 of the series, that there need to be programs packaged to implement and deliver revitalization solutions at the district/neighborhood and household scales, and that the programs need to be very proactive in trying to reach people.  

Not unlike the current issues with vaccination and the reticent, although the issues are subtly different, but also just in the ways the programs are designed.  For example, USA Today reports on success in Minnesota and failures in Michigan, which come down to how the programs were designed ("Michigan bet big on mass vaccine events for COVID-19. It didn’t work out as hoped").

Provide heat pumps?  Third, a piece in the Guardian ("Poorer households in UK should get free heat pumps, say experts") suggests that one way to promote energy efficiency for low income households is to just give people heat pumps.  From the article:

Households on low incomes should be supplied with free heat pumps in order to kickstart the market for low-carbon heating equipment and meet the UK’s climate targets, experts have told the government. 

 Heat pumps can currently cost thousands of pounds to install, but the more that are installed, the faster that cost is likely to come down. They are widely regarded as the best way to replace the UK’s gas boilers and reduce carbon dioxide emissions from homes...

About 14% of the UK’s greenhouse gas emissions come from heating the UK’s poor housing stock, most of which is also draughty and energy inefficient. The group also called for insulation to be made available to people on low incomes.

It reminds me of programs focused on assisting people in transitioning from coal furnaces and ovens to gas and electricity.  Utility firms to this day have programs that finance the purchase of furnaces, etc.

PUSH Buffalo Green Development Zone as a neighborhood revitalization model also. There should be renewed and refocused attention paid to energy conservation programs benefiting low income households.  One example is the PUSH Buffalo community organization's Green Development Zone.  The GDZ is comparable to various "ecovillage" initiatives (I can think of some in DC, Cleveland, and elsewhere) in the 1990s and early 2000s, as a revitalization effort.

It's designed to promote green jobs, equity, to achieve environmental goals, etc.  It's also a way to deliver energy conservation programs in low income neighborhoods (PUSH Buffalo’s Green Development Zone: a Model for New Economy Community Development, Building A “Community Growth Machine”: The Green Development Zone as a Model for a New Neighborhood Economy).

You could argue that the Green Development Zone is:

1.  another way to position a neighborhood-based stabilization and revitalization initiative and deliver programs ("HOW PUSH BUFFALO MODELS HOLISTIC, EQUITABLE AND GREEN COMMUNITY DEVELOPMENT," NCRP)

2.  that can be integrated with the "Elm Street Approach" that the series suggests

3.  with a greater focus on building economic benefits within the neighborhood for the residents (Community Economic Development Handbook: Strategies and Tools to Revitalize Your Neighborhood  by Mihailo Temali, "Lessons from CNN story on Allentown, Pennsylvania,") and 

4.  while building into the program more directly, equity and environmental justice.

Note there are other examples, including the Evergreen Energy Solutions division of Evergreen Cooperatives in Cleveland, which also has a focus on solar energy.

Most states require utilities to provide programming along these lines (Supporting Low-Income Energy Efficiency: A Guide for Utility Regulators, American Council for an Energy Efficient Economy), and that's great, but the idea here is to implement programs at scale in terms of neighborhoods, districts, cities and counties.

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Thursday, March 18, 2021

Retail electricity deregulation mostly benefits companies at the expense of consumers

 Just before the recent weather related debacle in Texas ("Talk and lying versus doing: The electricity crisis in Texas is produced by state regulatory failure" and "Cold wave: the Texas power debacle disproportionately impacts the less well off"), I was surprised to read a story about how many low income households in Baltimore were paying extremely high electricity rates as a result of deregulation ("Why the Poor in Baltimore Face Such Crushing ‘Energy Burdens’," Inside Climate News), which I meant to write about.

From the article:

Nationwide, low-income individuals like Jenkins—defined as those making less than 200 percent of the federal poverty level, or $25,760 per year before taxes in 2021—can put anywhere from 10 to 20 percent of their earnings toward energy costs and sometimes far more, according to a recent report by the American Council for an Energy-Efficient Economy, a Washington, D.C.-based think tank. 

This exceedingly common, but often overlooked, reality can perpetuate cycles of poverty and lead to personal or familial ruin. 

By contrast the average household spends just 3.1 percent of its income on energy, although that ratio ranges widely depending on geographic location and the type of fuel used, the ACEEE study found. Researchers typically consider anything over 6 percent to be an unaffordable energy burden regardless of income. The report also found that energy burdens in Baltimore can be especially heavy, as 25 percent of low-income residents there spent more than 21.7 percent of their 2017 income on energy.

Apparently, through various deceptive marketing programs, and sometimes short term inducements, people end up switching to higher priced providers ("Maryland Thought Deregulating Utilities Would Lower Rates. It’s Cost the State’s Residents Hundreds of Millions of Dollars.," Inside Climate News)

In our household, I'm the person who deals with energy choice, and I was proud of the great rate we got in DC, 7.5 cents/kwH (from a BG&E subsidiary, which happens to be owned by the same company), which is a couple cents cheaper than the standard rate.

I never understood how people could be deceived, so long as they knew the base rate from the utility distributer, in DC's case that is PEPCo, and it usually ran from 8.9 cents to 9.4 cents.  

Now it's even lower, less than 7 cents/kwH, with a slight upcharge during the winter months, according to the comparison information compiled by the DC Public Service Commission, the utility regulator.

Many resellers offer a short term lower rate, but don't commit to the lower rate for the entire contract period.  Therefore, don't pick them.

The reality as a recent WSJ article disclosed ("Deregulation Aimed to Lower Home-Power Bills. For Many, It Didn’t"), is that most consumers pay more for electricity (and natural gas) as a result of deregulation, rather than save money.  We shouldn't be surprised.  Deregulation is mostly for the benefit of business, not consumers.

And like in Baltimore, low information consumers, often minorities, bore the brunt of the higher costs.  From the article:

From 2010 to 2019, retail electricity providers in 13 states and the District of Columbia charged $19.2 billion more than what regulated utilities would have.

A quick review of the DC PSC information finds only one or two companies from more than one dozen that offer rates comparable to PEPCO's base rate.  Although some offer a greater percentage of renewable energy sources, at a higher cost, and some people may be willing to pay a higher rate, because of their concerns about climate change.

There is an op-ed in the Baltimore Sun by former Governor Parris Glendening, saying utility deregulation had been a mistake ("Energy deregulation was a mistake in Maryland").

WRT Texas, interestingly, a Dallas Morning News consumer columnist, Dave Lieber, writing "The Watchdog" feature, had pointed out the serious problems with the way that Texas' electricity market was set up and managed for years, to no avail.

-- "No surprise Texas’ electricity system is a national laughingstock. Only customers cared, until now"

When I first came to DC in the late 1980s, and worked for a consumer group, back then many newspapers had reporters assigned to a "consumer beat," and they covered issues like these regularly.  Now very few newspapers provide this kind of oversight on a regular basis.

Although as Dave Lieber proved, even with attention, many businesses fail to change their practices.

Another example, Warren Buffett's predatory finance operation for mobile homes ("The Mobile-Home Trap," Seattle Times).

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