Starting in mid February I began to look into energy conservation methods in the built
environment. Research has shown that through retrofitting energy conservation
measures homes can save up to 40% of their current electric bill. Since February I
have learned a great deal about energy conservation measures, job creation from energy
conservation retrofits, and have made contacts with local groups that see the direct
consequence of poorly weatherized homes.
Energy conservation activities have a long list of possible solutions, but in most cases,
would mainly include increased insulation, weatherization, heating and air-conditioning
system retrofits, and upgrades to lighting systems.
A great resource for information on job creation based on energy conservation measures
can be found in “Assessing the Job Creation Potential of Energy Conservation
Investments” by Charles Kibert and Richard Fobair. This paper investigates the direct job
creation potential from energy conservation investments due to construction related
activities and indirect job creation in the final stage in the supply chain (providing the
materials/ products used in installation). The study found the following:




Payback residential homes 5-7 years (weatherization, insulation, HVAC
upgrades)
Per $1 million investment in residential energy conservation, 3,000 Mwh
would be saved
Study uses averages that can be used for “policy-making purposes”
Assesses building type on a cost per square foot basis (residential $18/sf)
The research developed a model that can be used to predict the number of jobs created by
an investment. The study describes the amount of full time jobs (2,080 hours) created per
$1 million investment. The model is based on commonly accepted methods for
calculating overhead and profit by subcontractors engaged in energy conservation
retrofits, on industry standard wage rates, on industry standard crew sizes, and on
standard practice for determining the wage rates of various worker types and skill levels.
The model can be varied to change all basic inputs and assumptions to assess a wide
variety of scenarios.
The study uses three approaches or methods to conduct this analysis. In respect to the
10,000 Homes Project, the 3rd approach would be most applicable, as it assumes the
entire energy investment is for one building type (residential) and emphasizes the
division between labor and materials in the installation phase by providing a split for each
CSI Division directly or incidentally related to the energy retrofit. A similar approach
(#2) has a general “across-the-board” 50%-50% split to the investment markups.
Approach #3 is said to create an average of 17.75 jobs per $1 million invested (based
on PayScale wages), depending on region and type of building retrofitted.
I was able to speak to Doug Murdock, a building official, for the City of Gainesville
about the number of permits pulled in the last ten years. I was hoping that I could use this
information to help realize the impacts of the economic recession on the local economy.
While there has been a decline since 2006, this approach was unable to produce as much
detail to make any conclusive decision on impacts.
Permits Issued in City of Gainesville 1998-2008
Permits
12000
10000
8000
6000
Permits
4000
2000
0
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Provided by Doug Murdock, Building Official
One other approach I took was to look at the need for energy conservation measures from
a more social perspective. I exchanged a few emails with a contact at Action Network,
Pat Rayos. On March 19, I got a chance to speak with Pat more directly on the phone.
She described the Action Network as a faith based community organizer that addresses
quality of life issues. She said that starting in 2006, many congregations complained
about high utility bills. In a joint study with GRU and the city, they learned that many
homes had a problem with poor energy efficiency and insulation systems. They started
the Low-Income Whole House Pilot Program which has now become a permanent
initiative that is funded mainly through the city and works with the Community
Weatherization Coalition and Rebuild Gainesville. Pat said that for some low-income
families in these poorly insulated homes are paying 30-40% of their income, which is
often more than their house rent and car payments combined. She said the people have
reported that the conservation measures implemented on their homes have been
“tremendously helpful”.
While Action Network doesn’t actually help families pay bills, they help direct people to
find solutions and apply for help. They created a map of inefficient homes with the
help of the city in 2006, but it probably needs to be updated. It would be interesting to
compare the current map used by ICBE and this one. Action Network seems like they
would be a great organization to work with to help locate families that are willing to have
their homes assessed and could play a key role as a trusted liaison between families and
government.
Action Network
Patricia Rayos
352-379-7822
352-682-5078