EcoEKY: Green News from Eastern Kentucky

from Pol Watchers, the Lexington Herald-Leader's political blog:

April 15, 2008

Could an energy bill be a seed for bicameral agreement?

The last crucial work day of the Kentucky General Assembly began Tuesday with the merging of two energy bills -- one from the House and one from the Senate -- aimed at making Kentucky's government, small businesses and homes more efficient.

The Senate's Appropriations and Revenue Committee blessed the marriage of H.B. 2, offered by House Democratic Floor Leader Rocky Adkins, to S.B. 165, a measure sponsored by independent Sen. Bob Leeper of Paducah.

The full Senate and House now must approve the new mega-energy-efficiency bill before midnight when all legislative work for this session must be completed.

Adkins' energy bill would provide tax credits for home builders to construct more efficient and "green" houses as well as home buyers to purchase U.S. Department of Energy-approved Energy Star appliances.

"If we’re going to have a comprehensive and balanced energy policy in Kentucky, then we have to look at all the energy opportunities that we have,” Adkins said. “I think that energy efficiency and conservation and renewable energy opportunities are a big part of us trying to achieve the type of policy in Kentucky to reach energy independence in this country."

If the bill is approved, taxpayers could apply for credits on their 2009 tax forms for purchases made after Jan. 1, 2009.

It's unclear how much those new state tax credits -- which Adkins said will be structured similar to the federal tax credits -- will cost Kentucky in revenue, said Adkins, of Sandy Hook. But the costs wouldn't be seen until the second year of the 2009-2010 biennium.

But whatever the cost will be, Leeper's bill should free up enough cash to cover it, said Leeper.

Leeper initially proposed $50 million worth of bonds to be sold to cover low-interest loans to small businesses to purchase energy efficient electronics and make their buildings better insulated. But he agreed to reduce that amount to $30 million in bond funds to free up money to cover the tax credits in Adkins' H.B. 2.

"It ends up being a bottom line wash," Leeper said.

His legislation also calls for $50 million in bond funds to pay for state government buildings to be fitted with energy efficient lightbulbs, windows and other more efficient components. Energy savings will cover the annual payments on those bonds.

Both Adkins and Leeper denied that the pairing of their bills was part of a broader game of horse trading. Instead, it was something that came together two weeks ago when both men were working on crafting the state budget.

"It's just good, sound policy," Leeper said.

- Ryan Alessi

From the Lexington Herald-Leader website:

EKU begins energy-saving initiative

By Ashlee Clark
ACLARK@HERALD-LEADER.COM

RICHMOND --
Eastern Kentucky University might want to add green to its school colors as it embarks on an energy-saving initiative expected to save millions of dollars.

EKU officials announced Tuesday a 12-year partnership with Siemens Building Technologies Inc. that will include $22 million worth of energy efficiency improvements on campus. The project is one of the largest ventures of its nature in the country, according to Siemens.

"I think we are in a new position of leadership in the commonwealth," EKU President Doug Whitlock said.

Siemens representatives expect the changes to reduce EKU's utility bills by 30 percent or more.

The university spends $6.5 million a year on utilities, said James Street, associate vice president for capital planning and facilities planning.

The upgrades range from simple (replacement of incandescent bulbs with fluorescent lighting) to complex (installation of building controls to regulate temperature and occupancy sensors that will turn off lights if people aren't in the room). Heating and cooling retrofits and consumption-saving devices on plumbing will also be installed.

"I think this part of Kentucky is going to get a lot greener," Berndt Baumgartl, senior vice president of regional operations for Siemens, said Tuesday.

The plan is also appealing at a time when the state budget calls for tighter spending at universities. The project, despite its price tag, will not require money from EKU. The amount of money saved from the energy improvements will pay for the overall cost of the projects, Baumgartl said. If the money saved falls short, Siemens will pay the difference.

Siemens first submitted plans for the project in 2007, said Michael Azzara, business development manager for the company.

Siemens employs 1,100 people in Kentucky, said Steve Kuehn, media and community relations manager for Siemens.

Renovations will begin in late summer or early fall and should be minimally invasive, Street said.

Partnership with Siemens

Eastern Kentucky University and Siemens Building Technologies are joining forces for a 12-year contract to reduce energy emissions at the school. EKU spends $6.5 million annually on utilities, and officials expect to save 30 percent with this partnership.

Based on Siemens' Greenhouse Gas Calculator, EKU will avoid emission of 77 million pounds of greenhouse gases, which is equivalent to:

• Preserving 37,662 acres of forest, or

• Removing 9,832 cars from the roads, or

• Conserving 105,091 barrels of oil, or

• Conserving 235 rail cars worth of coal.

Eastern Kentucky University

Students: 16,000

Buildings: 47 academic, 75 service/ support buildings and 15 residence halls will be affected by the changes

Savings to EKU: $6,200 a day

Siemens AG

German-based multinational corporation that operates in the industrial, health care and energy sectors.

Siemens Energy & Automation and Siemens Building Technologies Inc. are based in Louisville. Osram, the company's lighting division, and Sylvania operate manufacturing plants in Winchester and Versailles and have a distribution center in Versailles.

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News researcher Linda Niemi contributed to this report.
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