Because these environmental, health care, and additional utility costs resulting from fossil fuel use are not included in the price paid to utilities and gas stations, energy from fossil fuels appears to be cheaper than energy from cleaner sources. But a comprehensive look at energy efficiency and clean energy options reveals that they are not only viable, but are becoming more cost effective and essential to a sustainable future. In the future, federal regulations or taxes on carbon pollution could require utilities to account for the environmental costs directly in their rates, thereby making energy efficiency and renewable energy even more cost competitive to the consumer.
Combining smart energy policy with the private sector know-how of these energy efficiency companies and academic research, Milwaukee can position itself to grow its exports and fuel local economic growth. Additionally, we have made a great start on helping to improve energy efficiency by instituting programs like the Milwaukee Energy Efficiency (Me2) programs for homes and businesses (see inset on ). Mayor Barrett has also created an Energy Reduction Team to systematically work toward increasing energy efficiency in City facilities, which will help to control long-term costs to taxpayers and demonstrate environmental leadership to the community. The Office of Environmental Sustainability (OES) chairs the Energy Reduction Team, composed of facility managers from the following departments: Public Works, Police, Fire, Health, and the Port of Milwaukee. The Energy Reduction Team follows a six-step process for reducing the City’s energy use: 1. Set Goals (Better Buildings Challenge, 25x25 goals, and others) 2. Measure city energy use using U.S. Environmental Protection Agency (EPA) Portfolio Manager, Utility Trac Plus, or other tracking tools 3. Prioritize Buildings for Energy Improvements 4. Identify Energy-Saving Projects
While all cities face energy challenges, those that proactively plan for the risks will create a competitive advantage for themselves over time. Milwaukee is well positioned to meet the energy challenges. For example, Milwaukee and Wisconsin are home to a robust cluster of energy efficiency, renewable energy, power, control, and energy storage companies.7 These companies are supported by dozens of other local companies in their supply chain and hundreds of mechanical and electrical contractors. More than 50 of these companies and Milwaukee’s universities are already partnering through the Wisconsin Energy Research Consortium (WERC). WERC is focused on the research and development associated with Distributed Energy Resources (DERs) and building energy-efficiency technologies. Academic research is linked to these companies through the WERC, making Milwaukee a national leader in these technologies. 22 / ReFreshMKE
5. Implement Projects 6. Perform On-going Monitoring and Continuous Improvement This effort received an important boost of financial resources through the American Recovery and Reinvestment Act (2009 federal stimulus). In a similar manner, Milwaukee’s Common Council issued a resolution (#091066) supporting the “25 x 25” goals, which was promulgated by the State of Wisconsin Office of Energy Independence. The goal called for generating 25 percent of the City’s electricity and 25 percent of its transportation fuels from renewable resources by 2025. (See inset on page 25). Without third-party financing options, such as Power Purchase Agreements (PPA’s), the City will not likely be able to afford the up-front cost of enough renewable energy projects to meet the goal.
Solar Install at Milwaukee Brewing Co. Photo: H&H Solar Energy Systems
Globally, excessive use of fossil fuels and their greenhouse gasses, combined with deterioration of carbon “sinks” like forests, contributes to global climate change. If left unchecked, global climate change can lead to increasing “cascading” effects that amplify the seriousness of the challenge. Hotter summers, characterized by more droughts and increased frequency of extreme precipitation events, can place additional stress on the Milwaukee’s electrical and stormwater utilities, leading to increasing costs and risks of utility failures. Milwaukee has already experienced four precipitation events in the last decade that exceed the volume typical for a 100-year record storm and that yielded millions of dollars in property damage.
However, the City has begun work toward the 25x25 goal by installing the Port of Milwaukee Wind Turbine and a photovoltaic system on the Central Library. The “Energy Goals: Better Buildings Challenge…” inset shows city energy use (in MMBTUs) for its core buildings (excluding Water Works), how much energy would need to be reduced every year through efficiency efforts, and how much renewable energy would need to be added to meet goals. City policy makers, residents, and businesses must be more intentional in strategically planning our energy future. Homeowners and businesses should view energy waste as a cost and a drain on economic prosperity, but one that can be controlled. With smart policy, creative financing, and expansion of existing initiatives, Milwaukee can redirect wasted energy dollars into improving our facilities with projects that save energy and create local jobs. We need to increase Milwaukee’s energy efficiency projects and initiatives. We need to integrate more cost-effective renewable energy into our fuel mix, reducing the environmental effects of energy and hedging against rising fossil fuel prices. We need to ensure our energy infrastructure is resilient and reliable, spend more of our energy dollars locally, and increase Milwaukee’s energy-related exports, thereby creating local jobs.