Energy Efficiency: An Economic Development Strategy for South Carolina

A new study released today shows that a combination of energy and water
efficiency policies could cut electricity and water bills for South
Carolinians by $5.1 billion and could create almost 22,000 new "green" jobs
by 2025.

The study, South Carolina's Energy Future: Minding Its Efficiency Resources,
was conducted by the American Council for an Energy-Efficient Economy
(ACEEE) based in Washington, D.C. with input from many South Carolina
citizens. The report examines the potential electricity and water efficiency
savings that could be realized in South Carolina through the implementation
of a suite of eleven electric and five water efficiency policies, and
quantifies the growth in gross state product and employment that would
result from these investments.

"The efficiency savings realized are a result of two effects," said Max
Neubauer, the study's lead author and ACEEE research associate. "First,
installation of more efficient appliances or heating equipment will lower
water and electric consumption, thereby lowering bills. Second, because of
current volatility in energy prices, efficiency strategies have the added
benefit of improving the balance of demand and supply in energy markets,
thus stabilizing regional energy prices in the future."

For the first time in any of its state-based, efficiency reports, ACEEE did
an analysis of the potential for water efficiency as well as added three new
energy efficiency measures of interest to the state: improved efficiency in
manufactured housing, implementation of a behavioral awareness program, and
a rural/agricultural initiative. This last initiative is of particular
importance to a state such as South Carolina with a large rural population.

Senator Thomas C. Alexander (R. - Oconee), chairman of the State Regulation
of Public Utilities Review Committee, said, "This report gives our state a
starting point for a more energy-efficient future. We cannot continue with
business as usual when it comes to energy consumption. We must make changes
if we want to avoid a crisis in the near future."

Senator Glenn McConnell (R. - Charleston), added, "South Carolina must act
now before we face an energy crisis. We need to move toward more balanced
energy solutions. Energy efficiency is the best first step toward meeting
our needs while guarding our resources, our security, and our environment."

ACEEE developed a suite of eleven electric and five water efficiency policy
suggestions based on successful models implemented in other states and
in-depth consultation with stakeholders in South Carolina. Of the eleven
electricity policies recommended, the report suggests that eight be eligible
to contribute towards a utility savings target that would be required by an
energy efficiency resource standard (EERS) which would be set at 18% of
projected sales in 2025.The EERS represents the core of these policies,
providing a foundation to which the other policies contribute to achieve the
greatest savings. The 11 electric efficiency recommendations are:

Contributing to the EERS

1. Advanced Building Initiative
2. Behavioral Initiative
3. Combined Heat and Power
4. Lead by Example
5. Low-Income Weatherization
6. Manufactured Homes Initiative
7. Manufacturer Initiative
8. Rural and Agricultural Initiative

Enabling Policies

1. Building Energy Codes
2. Workforce Development Initiative
3. Expanded Demand Response Programs

To assist South Carolina's public water supply and wastewater treatment
systems to meet the growing demand for water and wastewater service
cost-effectively, the report suggests five water efficiency policies as
follows:

1. Plumbing Efficiency Standards
2. Replacement of Inefficient Plumbing in Pre-1995 Homes
3. Utility System Water Loss (Leakage) Reduction
4. Water Efficient Landscape Irrigation
5. Conservation Pricing of Water and Sewer Service

"There's also the added benefit of creating new, high-quality 'green-collar'
jobs designing, installing, and operating energy efficiency measures,
resulting in increasing wages and gross state product," remarked Suzanne
Watson, ACEEE's Policy Director.

"The information in the ACEEE study will help the Palmetto State shape our
energy policy to achieve the maximum benefit for South Carolinians now and
in the future," said Ashlie Lancaster, Deputy Director with the South
Carolina Energy Office.

The full report, South Carolina's Energy Future: Minding Its Efficiency
Resources, is available for free download at aceee.org/pubs/e099.htm or a
hard copy can be purchased for $60 plus $5 postage and handling from ACEEE
Publications, 529 14th Street N.W., Suite 600, Washington, D.C. 20045, phone
202-507-4000, fax 202-429-2248