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State legislation for energy efficiency in public buildings

Description: Authorizes school districts to enter into energy efficiency power purchase agreements
Introduced by: House Interim Committee on Sustainability and Economic Development
Referred to: Education and Revenue committees

Description: Authorizes additional money for issuance of general obligation bonds for energy conservation measures for public and tribal buildings for the 2011-2013 biennium
Introduced by: Rep. Michael Schaufler, D-Happy Valley
Referred to: Transportation and Economic Development and Revenue committees

Description: Directs Oregon Department of Energy, in consultation with the superintendent of public instruction, to establish and administer a program to provide matching grants or loans to public schools for energy efficient and sustainable construction, remodels and renovations.
Introduced by: Rep. Jefferson Smith, D-Portland
Referred to: Education and Ways and Means committees

Approximately $78 million is spent each year on energy use in Oregon schools and government buildings, according to the Oregon Department of Energy. State legislation could lead to more money being devoted to projects to reduce that spending.

Three house bills have been introduced so far. In addition, Gov. John Kitzhaber has directed a team to explore how to fund more energy efficiency projects in Oregon’s schools, leading some to believe more legislation may materialize. With so many options, avoiding redundancy will be critical, according to Maurice Rahming, president of O’Neill Electric and a member of the governor’s energy efficiency team.

“There is a substantial amount of building stock in the public sector that could benefit from energy efficiency projects,” Rahming said. “But the programs have to be done in such a way that we don’t end up with redundant efforts and waste. We need to connect the dots as much as possible between programs so we’re saving money.”

, introduced by Rep. Jefferson Smith, D-Portland, would direct the ODOE to work with the state superintendent of public instruction to establish a matching grant or loan program for energy-efficient and sustainable construction, remodels and renovations at schools.

Funding would come from a combination of revenue bonds, local funding and energy cost savings from the projects themselves, according to Smith. The ODOE would work closely with the Energy Trust of Oregon, the governor’s energy efficiency team and the Oregon School Facilities Task Force to avoid redundancy, Smith said.

“Any building we retrofit will have the benefit of immediate term jobs, as well as the intermediate and long-term benefit of energy cost savings,” Smith said. “There are more facilities to retrofit than we have the capacity, which is why I’d like to embark on a 10-year mission to retrofit every school in Oregon.”

Similarly, , introduced by Rep. Michael Schaufler, D-Happy Valley, would authorize additional money for issuance of general obligation bonds for energy conservation projects in public and tribal buildings between 2011 and 2013.

, introduced by the House Interim Committee on Sustainability and Economic Development, would allow school districts to enter into energy efficiency power purchase agreements. Instead of paying up-front costs for a more efficient boiler, for example, a district would pay a monthly bill based on the dollar amount of energy saved by the new boiler.

Smith’s legislation has received bipartisan support; however, Greg Leo, spokesman for Oregon Republicans, said his party would rather see legislation that would reduce business taxes or roll back Measures 66 and 67. Leo believes Kitzhaber’s plans for energy efficiency projects in schools are akin to an extended stimulus program and would do little to continually foster private-sector jobs.

“Creating jobs is our number one priority, but we’d prefer free market to public-sector job creation,” Leo said. “Stimulus spending hasn’t created lasting jobs. True private-sector job growth is best done through fair tax policy that encourages small business in Oregon. That is what will help Oregon out of the recession, not public spending programs.”

The Northwest Energy Efficiency Council plans to back legislation for more efficient schools because of its potential to create jobs immediately. Stan Price, executive director of the council, said that because schools exist throughout the state, efficiency projects could lead to widespread job creation.

A study by the Pew Charitable Trusts showed that energy efficiency programs created 5,000 jobs in 2007. Programs have generated $11 million in new business income since 2002.

“When you talk about modernizing schools, you’re talking about hiring plumbers, electricians, pipefitters and sheet-metal workers,” Price said. “Infrastructure projects are what put construction people back to work. And the great thing about schools is everyone has one. Getting local tradespeople back onto jobsites is a powerful concept.”

The Oregon chapter of the American Federation of Labor and Congress of Industrial Organizations also is on board with energy efficiency legislation, according to Elana Guiney, legislative director for Oregon AFL-CIO. With rural economies still smarting around the state, and school facilities in dire need of new heaters and asbestos removal, there is opportunity for jobs as well as training.

“There are fewer opportunities for apprenticeships in areas outside of cities,” Guiney said. “These projects would provide those opportunities. There are going to be a lot of fights over funding this year. But the fact is we need the jobs and we need the improvements to our schools.”