Even Texas is starting to take energy efficiency seriously

Texas may be America’s largest producer of oil and natural gas but, as shown by David Holt on the FuelFix website, energy efficiency is also making important inroads.

For Texas, Energy Efficiency Presents an Opportunity

Energy efficiency might not be the first thing to come to mind when using the words “energy” and “Texas” in the same sentence. As Texans, we’re justifiably proud our state’s status as the largest producer of oil, natural gas and wind energy in the nation, and its our electricity costs are below average; and yet Texas families are spending more on their utility bills than many other Americans. In a state where energy production is booming, many will be surprised to learn our newest untapped energy source is in their own home.

Texas, according to the Energy Information Administration (EIA), “leads the nation in energy consumption, accounting for more than one-tenth of the U.S. total.” Consumer consumption is high and our its industrial sector accounts for a significant chunk of energy use. Energy-intensive petroleum refining and chemical manufacturing is big business in Texas. Texans also drive more miles than any other state, except California.

To power our Texas-sized population and economy, the state produces and consumes more electricity than any other state. We generate almost twice as much as the next largest generating state. We rely upon a combination of natural gas, coal, nuclear and wind energy to make electricity, feeding our own stand-alone electric grid entirely within the state. Retail electricity sold to homeowners accounts for the bulk of sales and one-half of homeowners rely upon electricity as their primary heating fuel.

Residential use of electricity is higher in Texas than in other states, according to EIA, “in part because of population size, but also because of high demand for air conditioning during the hot summer months and the widespread use of electricity as the primary energy source for home heating during the generally mild winter months.” These facts should lead consumers to look to energy efficiency as still another Texas-sized resource.

It isn’t as if Texas hasn’t increased energy efficiency already. The state grew by 20.0% between 2002 and 2012, but electricity generation only grew 11.5%. In large part, this is attributable to improved energy efficiency. EIA figures show per capita retail electricity sales averaged 5,521 kWh in 2012, down by 5.8% from 2002.

For help in tapping this new, Texas-sized energy resource, consumers can look to the Texas State Energy Conservation Office (SECO), which operates “the nation’s largest and longest running revolving energy loan fund,” the Texas LoanSTAR Program. Since 1988, SECO has issued over $395 million in loans for energy efficiency projects, saving consumers $419 million in energy costs.

The biggest recipients of the loans are our public schools and universities. Key to the success of the program are the requirements of the LoanSTAR Program to not only prove that the financed energy retrofits would pay for themselves, but also to demonstrate that the actual energy savings will be exceeded by over 20% of the originally estimated savings. LoanSTAR savings have exceeded audit estimates of energy savings, proving that Texas’ model works.

Of course Texans can do more to use energy more efficiently. To help everyday energy consumers tap into what the agency calls “Texas’ Newest Energy Resource.” SECO has identified “Seven Simple Steps” to help every homeowner achieve higher energy efficiency. These include: checking insulation, reducing heating/cooling, reducing hot water heating needs, checking windows, managing lighting, buying energy-efficient appliances and controlling electronic energy demands.

SECO also identifies measures business and industry can use to save energy. Of note, it’s also developed a new Texas Agricultural Technical Assistance Program to help farmers complete Energy Assessment Reports on farm buildings and facilities to save on electricity, propane and diesel fuel use. The agency also promotes the Energy Star Small Business Energy Guide and Green Your Business.

Energy efficiency is part of our future and Texas has a fabulous start, having created some very practical and effective programs with measurable results. Still, there’s great opportunity to do much more and make Texas the top performer in energy efficiency – our newest energy resource – just as it is in oil, natural gas and wind energy production.